Sri Lanka can draw down on USD 400 million swap with India

As part of steps to improve reserves, Sri Lanka can draw down on a 400 million US dollar foreign exchange swap with the Reserve Bank of India in August 2021, the island country’s apex bank chief said

Jun 12, 2021
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As part of steps to improve reserves, Sri Lanka can draw down on a 400 million US dollar foreign exchange swap with the Reserve Bank of India in August 2021, the island country’s apex bank chief said.
 
Sri Lanka originally signed the swap deal available to SAARC countries in 2020 and repaid it in February 2021 after rolling it over once.

“There are a couple of more drawings available,” Central Bank Governor W D Lakshman told reporters.

“After the completion of the first couple, we have to wait for a certain cooling-off period of six months. So this is going to be available in August.”

A swap with the Bangladesh banks which had been approved was also progressing with “rapidity” with requirements being fulfilled, ECONOMYNEXT reported.

He said it could come as early as one month. Sri Lanka has to pay a billion US dollar sovereign bond in July 2020. Sri Lanka had 4.4 billion US dollars of reserves in April.

(SAM)

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