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India gives 400 million US Dollars to the Central Bank of Sri Lanka

ITN News Editor
By ITN News Editor January 10, 2019 18:50

India gives 400 million US Dollars to the Central Bank of Sri Lanka

The Reserve Bank of India has agreed to provide 400 million US Dollars to the Central Bank of Sri Lanka under its SAARC SWAP facility.
In addition the Central Bank of Sri Lanka has requested a further bilateral SWAP arrangement of one billion US Dollars between the Reserve Bank of India and the Central Bank which is under consideration.
The Indian Reserve Bank’s very rapid and timely assistance will serve to boost investor confidence by supporting Sri Lanka to maintain an adequate level of external reserves while accommodating outflows related to imports, debt servicing and, if necessary, support for the currency to avoid disorderly adjustment. The Central Bank of Sri Lanka acknowledges the very active role played by the Government of India, the Sri Lankan High Commission, in Delhi, and the Indian High Commission, in Colombo, in facilitating these arrangements.
With the end of the delays related to the political developments in the country, the Government of Sri Lanka and Sri Lanka’s Central Bank have also already revived action to issue international sovereign bonds, obtain term loans; and negotiate credit lines through the State banks on behalf of the Government of Sri Lanka. It is expected that these operations will be completed in the first quarter of this year.
In addition, Minister of Finance and Mass Media Mangala Samaraweera will be visiting Washington to resume negotiations with the IMF on the Extended Fund Facility.

ITN News Editor
By ITN News Editor January 10, 2019 18:50