June 18, 2024


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Sri Lanka settles $400 million forex swap facility with India

The facility is readily available to all SAARC member nations, subject to their signing the bilateral swap agreements.

Sri Lanka has settled a $400 million currency swap facility with India, the Indian Large Commission in this article claimed on Friday.

The Reserve Lender of India (RBI) and the Central Bank of Sri Lanka (CBSL) had concluded the $400 million currency swap settlement in July last yr underneath the SAARC forex swap framework.

“This swap facility was drawn by CBSL on July 31, 2020 for an original period of three months. A a few-month rollover was supplied at CBSL’s request until February 1, 2021,” the significant fee explained in a assertion.

“Further extension would involve Sri Lanka possessing a efficiently negotiated staff degree arrangement for an IMF (Intercontinental Monetary Fund) programme, which Sri Lanka does not have at present,” it stated, adding that the CBSL settled the swap facility with the RBI as scheduled.

“It is reiterated that India abides by all of its international and bilateral commitments in letter and spirit,” it reported.

The SAARC currency swap framework came into operation on November 15, 2012, to supply a backstop line of funding for short expression overseas trade liquidity prerequisites or short-time period harmony of payments tension until for a longer period term arrangements are created.

The facility is offered to all SAARC member countries, topic to their signing the bilateral swap agreements.

Besides India, the other South Asian Affiliation for Regional Cooperation (SAARC) member nations are — Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka.

Meanwhile, CBSL also tweeted that it has settled its swap facility with RBI as scheduled.

“There was no particular request from India for a untimely settlement as erroneously described by particular media retailers. Discussions on upcoming collaboration keep on,” it said.

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