Reserve Bank of India inks US$400mn swap for Sri Lanka: Indian High Commission

ECONOMYNEXT – The Reserve Bank of India has inked a 400 million US dollar swap line to Sri Lanka, India’s High Commission (embassy) in Colombo said in a twitter.com message.

“Reserve Bank of India signs document for US$ 400 million currency swap facility to #SriLanka till Nov 2022,” the Indian High Commission said in a twitter.com message late Friday.

Sri Lanka requested a 400 million dollar swap facility from an RBI’s facility open for South Asian Association of Regional Co-operation (SAARC), countries earlier this year as money printing driven credit hit the currency.

Private credit has since slowed. Sri Lanka slapped import control on an economy that had already been hit by Coronavirus curfews.

Over the past three weeks the central bank had also withdrawn some of the excess liquidity that triggered instability.

Sri Lanka has also requested another billion US dollar swap from India. (Colombo/July24/2020)