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Sri Lanka wants to renew US$1.5bn equivalent RMB swap as standby facility: Minister Cabraal

ECONOMYNEXT – Sri Lanka has started talks on renewing a 10 billion yuan swap with China (about 1.5 billion US dollars) to be used as a standby facility, State Minister for Money and Capital Markets, Nivard Cabraal said.

“We want to have it as a stand by facility,” Minister Cabraal said. “Not draw down immediately.”

The RMB swap was originally negotiated when Cabraal was central bank governor but it had not been renewed.

Talks had been initiated by the Finance Ministry and Central Bank to have it in place again.

Following the visit of ex-Foreign Minister to Yang Jiechi to Sri Lanka this month, the country is also expecting the disbursement of another 500 million dollar tranche in a 1.2 billion dollar facility agreed earlier.

Sri Lanka in talks with China for US$1,000mn, RMB2000mn 10-year loans: Minister

The first 500 million dollar tranche had already been disbursed.

The balance 700 million is expected after Yiechi goes back.

The balance is due as a 500 million US dollar loan, and 2 billion yuan loan. (Colombo/Oct19/2020)





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