India extends SL’s $400 mn currency swap duration

Meanwhile, Sri Lanka will receive $300 million to $600 million from the World Bank over the next four months to buy medicine and other essential items.
India extends SL’s $400 mn currency swap duration
Representative image.

COLOMBO: In an “unstinted and multi-faceted support” to Sri Lanka which is grappling with its worst-ever economic crisis, India has extended the duration of the $400 million currency swap facility which had been concluded with the island nation in January.

This was the first extension of an international debt instrument to Sri Lanka after the government led by President Gotabaya Rajapaksa on April 12 temporarily suspended debt servicing. The embattled government had announced an orderly default until the country came to an agreement with the International Monetary Fund (IMF) for a possible bailout package.

“India’s unstinted and multi-faceted support to Sri Lanka continued. As ongoing currency support, @RBI extended the duration of the US$ 400 million currency swap for @CBSL which was concluded in #January this year,” the High Commission of India said on Twitter.

Meanwhile, Sri Lanka will receive $300 million to $600 million from the World Bank over the next four months to buy medicine and other essential items.

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