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Sri Lanka gets $400M swap line from Reserve Bank of India

Jan 09, 2019 14:18 PM GMT+0530 | 1 Comment(s)

ECONOMYNEXT - Sri Lanka's Central Bank says it will get 400 million US dollars from a swap arrangement with the Reserve Bank of India, while a request for a further 1 billion US dollars is under consideration.

The Reserve Bank of India—the central bank of that country—has agreed to provide the funds under its SAARC (South Asian Association for Regional Cooperation) Swap Facility, Sri Lanka's Central Bank said in a statement Wednesday.

"The RBI’s very rapid and timely assistance will serve to boost investor confidence by supporting Sri Lanka to maintain an adequate level of external reserves while accommodating outflows related to imports, debt servicing and, if necessary, support for the currency to avoid disorderly adjustment," the Central Bank said.

It has requested a further bilateral swap arrangement of 1 billion US dollars from RBI which is "under consideration". 

"The CBSL acknowledges the very active role played by the Government of India, the Sri Lankan High Commission, in Delhi, and the Indian High Commission, in Colombo, in facilitating these arrangements," the statement said.

"With the end of the delays related to the political developments in the country, the Government of Sri Lanka and the CBSL have also already revived action to: issue international sovereign bonds; obtain term loans; and negotiate credit lines through the state banks on behalf of the government.

"It is expected that these operations will be completed in 1Q 2019.

"In addition, Mangala Samaraweera, Minister of Finance and Mass Media will be visiting Washington (14–16 Jan 2019) to resume negotiations with the IMF on the Extended Fund Facility," the Central Bank said. (COLOMBO, 09 January 2019)

 


 

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1 Comments

  1. Lalith January 10, 01:12 AM

    We have sunk so far that carrying a begging bowl is considered somewhat heroic

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