$400 Million Foreign Currency Swap With RBI

$400 Million Foreign Currency Swap With RBI

The Central Bank of Sri Lanka (CBSL) says Sri Lanka can boost its reserves by drawing down on a US$ 400 million foreign exchange SWAP with the Reserve Bank of India (RBI) in August 2021.

The SWAP deal available for the South Asian Association for Regional Cooperation (SAARC) countries was initially signed by Sri Lanka back in 2020 and was repaid in February this year, said CBSL Governor W D Lakshman.

Even though Sri Lanka has a couple more drawings available, the authorities shave to wait for a cooling-off period of 06 months after the completion of the first couple of drawings, hence Sri Lanka’s next drawing will be available in August 2021, the CBSL Governor noted.