Sri Lanka receives US$ 100 million more out of US$ 200 million swap deal from Bangladesh
Bangladesh has released a further US$ 100 million more out of the US$ 200 million to Sri Lanka under the swap arrangement, increasing the total to US$ 150 million, the Bangladeshi media has reported.
The news was announced by Bangladesh’s The Financial Express.
Funds from Bangladesh have been provided under the currency swap agreement signed by the Bangladesh Bank (BB) and the Central Bank of Sri Lanka (CBSL) on 3 August.
On 18 August, the BB had transferred US$ 50 million to the CBSL as the first installment under the currency swap deal initiated in March this year.
According to the news report, as per the agreement, the Central Bank of Bangladesh will transfer US$ 50 million more shortly to its counterpart of Sri Lanka if the CBSL sends a request to the BB within five working days after receiving the second tranche of the aid, according to the officials.
“We’re hopeful that the CBSL would send a request within the stipulated time frame seeking a third instalment of the agreement,” a BB senior official has told The Financial Express.
As per the agreement, the CBSL will have to deposit an equivalent amount of its currency with the BB’s account which has already been opened in the SAARC member country.
“We’re providing the funds under currency swap agreement aiming to help a friendly SAARC-member country which is in trouble,” another BB official has told The Financial Express.
The official has added that it is the first currency swap outside the Asian Clearing Union (ACU) mechanism.
The financial transaction between Sri Lanka and Bangladesh is indicative of the confidence foreign countries have on Sri Lanka’s economy. Sri Lanka’s economy has shown great resilience to external and internal challenges through the years and is once again on the path to becoming a business hub in the South Asian region. Sri Lanka’s ongoing development programme, the continuously improving ease of doing business environment, the many trade agreements and concessions enjoyed by the country have given an additional boost to the country’s economic growth. Despite the global Covid 19 pandemic challenges, several key sectors if Sri Lanka’s economy have shown a steady growth. Given Sri Lanka’s ongoing economic expansion, foreign businesses/investors could explore the growing business opportunities in the country.
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