Reserve bank of India to provide USD 400 Mn to CBSL

Colombo (News1st):  The Reserve Bank of India (RBI) has agreed to provide USD 400 million to the Central Bank of Sri Lanka under its SAARC SWAP facility which will boost the reserves in the country. The Central Bank said in a statement that they have also requested a further bilateral SWAP arrangement of USD 1 billion between the RBI and CBSL which is under consideration. The statement added “The RBI’s very rapid and timely assistance will serve to boost investor confidence by supporting Sri Lanka to maintain an adequate level of external reserves while accommodating outflows related to imports, debt servicing and, if necessary, support for the currency to avoid disorderly adjustment,” With the end of the delays related to the political developments in the country, the Government of Sri Lanka and the CBSL have also already revived action to

1. Issue international sovereign bonds
2. Obtain term loans
3. Negotiate credit lines through the State banks on behalf of the government.