RBI signs document for extending USD 400 million currency swap facility to Sri Lanka

Colombo: Reserve Bank of India on Saturday signed necessary documents for extending a USD 400 million currency swap facility to Central Bank of Sri Lanka. This currency swap arrangement will remain available until November 2022, according to a statement by Indian High Commission here.

Yesterday, the Sri Lankan government has signed a USD 400 million currency swap agreement with the RBI to meet short-term international liquidity requirements following the economic crisis resulted from COVID-19. The High Commission, in a statement, said that it has remained closely engaged in fruitful bilateral cooperation with Sri Lanka on all matters of mutual interest.

“These positive developments illustrate the active implementation of the leadership-level commitment to work together for addressing the challenges arising from the COVID-19 pandemic, and further the mutually beneficial India-Sri Lanka partnership, including in the economic domain.”

On 22 July 2020, India and Sri Lanka held a technical discussion on the rescheduling of the bilateral debt repayment. The Indian delegation comprising of senior officials from the Ministry of External Affairs, the Ministry of Finance, and the EXIM Bank interacted with representatives from the Department of External Resources of Sri Lanka through a video conference, as per reports by Colombo Page.

The constructive discussion between both sides took place in a cordial and positive atmosphere, the High Commission reported. Both sides had earlier discussed the ongoing COVID-19 pandemic and its likely health and economic impacts in the region during Prime Minister Narendra Modi’s telephone conversations with Sri Lankan President Gotabaya Rajapaksa on May 23 and Prime Minister Mahinda Rajapaksa on May 27.

During these conversations, Prime Minister Modi had assured that India would continue to provide all possible support to Sri Lanka for mitigating the effects of the pandemic. During the courtesy call on President Gotabaya by Indian High Commissioner Gopal Baglay on May 29, it was agreed to accelerate India’s participation in Sri Lanka’s post-COVID economic recovery.

Source: ANI