Many countries sought financial assistance after Sri Lanka currency swap

Bangladesh Prime Minister Sheikh Hasina on Sunday said that after helping Sri Lanka with a currency swap, many countries communicated with her to get the same kind of assistance from Bangladesh.

“We have assisted Sri Lanka from our (forex) reserves. After that, I received requests from many countries,” she said while delivering her introductory speech at the Secretaries' Committee Meeting held at the PMO.

In May 2021, Bangladesh cleared a $200 million currency swap for Sri Lanka to help boost its economy. 

It was the first-ever loan to any country from Bangladesh, given under the currency swap agreement inked by the Bangladesh Bank and the Central Bank of Sri Lanka on August 3.

“Many government heads have called me, and I have talked to them. I have described to them the ground reality. We are formulating our budget taking budgetary support from other sources. At this time, it will not be possible for us to give any assistance,” she was quoted as saying by UNB.

The premier mentioned that it means many countries across the globe are facing a forex reserve crisis. “… We must practice austerity with urgency,” she said, adding that the developed countries were in crisis due to the Russia-Ukraine war.

She stressed the need to cut unnecessary expenses and directed the secretaries to complete the ongoing development projects on a priority basis within the shortest possible time, asking the officials to avoid undue delay.

About foreign reserves in the country, the PM said it would be possible to meet import bills for the next five or six months, and Bangladesh would not fall into any crisis in the future.

PM Hasina, however, underscored the need for export diversification, considering the current global crisis.

Source: The Morning Brief

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