Sri Lanka’s foreign reserves receives fresh inflow of US$ 1.2 billion
Sri Lanka’s foreign reserves are to receive a fresh impetus of over US$ 1.2 billion following several foreign inflows.
Sri Lanka’s Treasury Secretary S.R. Attygalle has announced that the country’s reserves were set to get an accumulated influx of US$ 1.2 billion from the International Monetary Fund (IMF), Bangladesh, and China Development Bank (CDB).
According to Attygalle, the reserves would be strengthened by an inflow of US$ 787 million from the IMF and US $ 150 million from the pending tranches of a swap deal with the Bangladesh Bank (Central Bank), along with another approximately US$ 300 million from CDB.
Bangladesh Bank has granted the loan under a currency swap agreement it entered with the Central Bank of Sri Lanka (CBSL).
Sri Lanka is to be granted a total of US$ 250 million under the deal with Bangladesh with the purpose of supporting the decreasing forex while easing the pressure on the exchange rate.
The first tranche of the swap deal was obtained a few days ago.
OSL take:
The financial support received by Sri Lanka to boost its foreign reserves is indicative of the level of confidence foreign financial institutions have on the country. Sri Lanka’s economy has shown great resilience to external and internal challenges through the years and is once again on the path to recovery after facing challenges posed by Covid 19. Given Sri Lanka’s geographical positioning in the Indian ocean, the many trade agreements and concessions as well as the continuously improving ease of doing business environment in the country have helped Sri Lanka position itself as an emerging business destination in the South Asian region. Foreign businesses/investors could therefore explore opportunities in Sri Lanka with confidence.
| Article Code : | VBS/AT/03092021/Z_4 |