July 25, Colombo: The Reserve Bank of India has signed necessary documents for extending a US$ 400 million currency swap facility to the Central Bank of Sri Lanka, the High Commission of India in Colombo said today.
This currency swap arrangement will remain available till November 2022.
The High Commission has conveyed this information to senior officials in the Government of Sri Lanka and the Central Bank of Sri Lanka.
Earlier, on July 14, Deputy High Commissioner Vinod K. Jacob had met and discussed the currency swap arrangement with the Governor of the Central Bank of Sri Lanka, Prof. W.D. Lakshman.
The High Commission has remained closely engaged in fruitful bilateral cooperation with Sri Lanka on all matters of mutual interest. On 22 July, High Commission facilitated constructive technical discussions on rescheduling of bilateral debt repayment by Sri Lanka.
Sri Lanka’s Cabinet of Ministers in April approved a proposal made by Prime Minister Mahinda Rajapaksa as the Finance Minister to enter into an agreement with the RBI for the financing facility to meet short-term international liquidity requirements.
“These positive developments illustrate 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,” the High Commission said.