The Central Bank of Sri Lanka (CBSL) and the People’s Bank of China (PBoC) yesterday entered into a three-year bilateral currency swap agreement worth $ 1.5 billion.
CBSL said the move was made to promote bilateral trade and direct investment for economic development between the two countries, and to be used for other purposes agreed upon by both parties.
The People’s Republic of China remains Sri Lanka’s largest source of imports. In 2020, imports from China amounted to $ 3.6 billion (22.3% of Sri Lanka’s imports).
This swap agreement has been approved by the Cabinet of Ministers with the recommendation of the Monetary Board of CBSL. Governors of the two Central Banks, Deshamanya Professor W.D. Lakshman of CBSL and PBOC Governor Dr. Yi Gang, were the signatories to the agreement.
“Under this agreement, CBSL is entitled for a swap facility amounting to CNY 10 billion (approximately $ 1.5 billion). The agreement is valid for a period of three years,” CBSL said in its statement.
(Source: Daily FT)