Currency Swap Agreement for $1.1 bln signed between CB and Reserve Bank
View(s):Bank of India The Central Bank of Sri Lanka and the Reserve Bank of India recently signed the currency swap agreement in New Delhi enabling Sri Lanka to draw US$1.1 billion. This is in addition to the $400 million made available to the Central Bank in April 2015 under the financing facility for South Asian Association for Regional Cooperation (SAARC) member country Central Banks, the local banking regulator said in a media release.
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 His Excellency Shri Narendra Modi, Prime Minister of India after his visit to Sri Lanka last March. This facility will further enhance the economic cooperation between the two institutions and strengthen the long standing relationship between two countries,” it said.