Sri Lanka expects US$400mn swap with India in August: CB Governor

Sri Lanka can draw down on a 400 million US dollar foreign exchange swap with the Reserve Bank of India in August 2021, as part of measures to boost reserves, Central Bank Governor W D Lakshman said.

Sri Lanka originally signed the swap deal available to SAARC countries in 2020 and repaid it in February 2021 after rolling it over once.

“There are a couple of more drawings available,” Governor Lakshman told reporters. “After the completion of the first couple, we have to wait for a certain cooling-off period of six months.

“So this is going to be available in August.”

A swap with the Bangladesh banks which had been approved was also progressing with “rapidity” with requirements being fulfilled.

He said it could come as early as one month. Sri Lanka has to pay a billion US dollar sovereign bond in July 2020. Sri Lanka had 4.4 billion US dollars of reserves in April 2021.