Reserve Bank of India extends repayment time of $ 400 m currency swap for CBSL

The Reserve Bank of India (RBI) has extended the duration of the $ 400 million currency swap for the Central Bank of Sri Lanka (CBSL) that concluded in January this year.

“India’s unstinted and multi-faceted support to Sri Lanka will continue,” the Indian High Commission in Sri Lanka tweeted in its official handle yesterday.

On 24 July 2020, the CBSL and the RBI entered into a currency swap agreement under the Framework on Currency Swap Arrangement for SAARC countries for 2019-2022.

The agreement was to provide short-term financing to the CBSL to meet the country’s balance of payment requirements.

Under the swap agreement, Sri Lanka received $ 400 million, initially for a period of three months and was then rolled over twice each with a three months’ tenor, subject to agreement on terms and conditions of the existing SAARC Framework.