Sri Lanka’s Central Bank Governor says Sri Lanka offered US$ 1.5 billion equivalent Renminbi swap from People Bank of China
Governor of the Central Bank of Sri Lanka, Indrajit Coomaraswamy has reportedly stated that Sri Lanka has been offered a US$ 1.5 billion equivalent Renminbi swap from the People Bank of China.
The Governor has said that the swap has a tenor of three years.
Local media reports have quoted him as saying that because the swap is denominated in Yuan, the Central Bank is studying the matter.
Sri Lanka is also in talks for a US$ 400 million swap from the Reserve Bank of India.
According to Coomaraswamy, the Reserve Bank of India swap had to get approvals from the Cabinet of Ministers as well as the country’s Attorney General and he expects it to be drawn down soon.
OSL take:
The statement by the Governor of Sri Lanka’s Central Bank indicates positive economic activity in Sri Lanka, which is an indication of a growing economy. Foreign banks could look at similar currency swaps while foreign investors could explore investment opportunities in Sri Lanka’s bonds and stocks.
| Article Code : | VBS/AT/25022019/Z_4 |