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Sri Lanka and China ink 10bn yuan central bank swap for 3-years

ECONOMYNEXT – Sri Lanka has signed a 10 billion yuan (about 1.5 billion US dollars) swap deal with China for three years, the central bank said.

The swap would promote “bilateral trade and direct investment for economic development of the two countries, and to be used for other purposes agreed upon by both parties,” the central bank said in a statement.

The People’s Republic of China remains Sri Lanka’s largest source of imports. In 2020, imports from China amounted was 3.6 billion dollars of 22.3 percent of Sri Lanka’s imports.

The deal was signed by Central Bank Governor W D Lakshman and Yi Gang, Governor of the People’s Bank of China.

Sri Lanka’s Minister for Capital Markets and Money Nivard Cabraal said the swap would not be drawn down immediately since it has a cost and would be used as and when required.

The agreement was valid for three years. (Colombo/Mar22/2021)

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