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Sri Lanka seeks USD 1.1 bn currency swap facility from India

Colombo: Sri Lankan President Gotabaya Rajapaksa has requested India to supply a particular USD 1.1 billion foreign money swap facility to spice up the nation’s draining overseas trade reserves in view of the financial slowdown because of the coronavirus pandemic.

Rajapaksa’s workplace stated that the brand new request is along with the USD 400 million quantity Sri Lanka has sought from the Indian authorities underneath the South Asian Affiliation for Regional Cooperation (SAARC) framework.

The Sri Lankan President made the request throughout his telephonic dialog with Prime Minister Narendra Modi on Saturday, it stated.

Modi mentioned the state of affairs arising out of the COVID-19 disaster with Rajapaksa and stated that India will proceed to help our shut maritime neighbour in coping with the pandemic and its financial influence.

The 2 leaders agreed to speed up Indian-assisted growth initiatives within the nation and in addition strengthen funding hyperlinks.

Rajapaksa’s workplace stated: If the federal government of India might present USD 1.1 billion particular SWAP facility to high up USD 400 million underneath the SAARC facility, it might enormously assist Sri Lanka in coping with our overseas trade points .

Sri Lanka had beforehand requested India for a 400 million greenback overseas trade swap underneath the SAARC preparations.

Rajapaksa additionally requested the prime minister to expedite investments in Colombo port’s east terminal.

In line with the Sri Lankan president’s workplace, Rajapaksa requested Modi to “direct those responsible from India’s side to expedite construction of the east terminal of the Colombo port as soon as possible”.

Dealing with points in its overseas trade through the coronavirus pandemic, Sri Lanka has taken drastic measures to maintain its overseas reserves and foreign money stability. Import restrictions introduced are supposed to cease the movement of overseas reserves.

The Opposition has accused the federal government of printing cash to create liquidity in markets.

The lethal coronavirus has claimed 9 lives and contaminated 1,068 folks within the nation.

India has despatched 4 consignments of important life-saving medicines and medical provides weighing over 25 tonnes to Sri Lanka in the previous few weeks as a goodwill gesture.

(PTI)

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