CBSL, RBI sign $ 1.1 b Indo-Lanka Currency Swap Agreement

Monday, 20 July 2015 00:00 - - {{hitsCtrl.values.hits}}

Untitled-1 Central Bank of Sri Lanka Deputy Governor Dr. Nandalal Weerasinghe (right) exchanging the Bilateral Currency Swap Agreement with Reserve Bank of India Executive Director P. Vijaya Bhaskar at a special signing ceremony held at Reserve Bank of India New Delhi office on Friday. Central Bank of Sri Lanka Assistant Governor H.A. Karunaratne and several senior officers of the Reserve Bank of India participated at the ceremony

The Central Bank of Sri Lanka and the Reserve Bank of India on Friday signed the currency swap agreement in New Delhi on 17 July, enabling Sri Lanka to draw $ 1.1 billion.

This is in addition to the $ 400 m made available to the Central Bank of Sri Lanka in April 2015 under the financing facility for South Asian Association for Regional Cooperation (SAARC) member country Central Banks.

This new facility will allow the Central Bank to further strengthen its position in the financial market and bring greater stability to the exchange rate.

Extended swap facility is the direct result of the goodwill gesture extended by Narendra Modi, Prime Minister of India consequent to his visit to Sri Lanka on 14 March.

This facility will further enhance the economic cooperation between the two institutions and strengthen the long-standing relationship between two countries.