Header Ad

RBI’s US$400mn 3-month swap to Sri Lanka for to be rolled over

ECONOMYNEXT – A 400 million dollar swap from the Reserve Bank of India to Sri Lanka for three months will be rolled over twice under the provisions given for South Asian countries, the central bank said.

Talks were also underway for another 1.1 billion US dollar swap on a bilateral basis.

“The intention of the CBSL in entering into this Swap agreement was to be able to maintain a sufficient short-term foreign exchange liquidity while preserving the foreign currency reserve position of the country intact,” the central bank said.

“The challenging external economic environment of Sri Lanka today is the result largely of this Covid-19 pandemic.”

The 400 million will initially come for 3 months and will be rolled over twice each with a 3 months tenor, subject to agreement on terms and conditions of the existing SAARC Framework, the central bank said.

Senior Deputy Governor of the Central Bank of Sri Lanka, Nandalal Weerasinghe Ajay Kumar, Regional Director of the Reserve Bank of India had inked the swap agreement. (Colombo/July28/2020)