25 March , 2023 Fdiindia
Negotiations between SL and India Started for Currency Swap
Negotiations between Sri Lanka and India have begun regarding the latest currency swap facility involving USD 1 billion, equivalent to INR. This is done to ensure a smooth bilateral trade.
“ The negotiations are also underway to secure an Indian rupee swap from RBI. That’s still being worked out. This is expected to facilitate Sri Lanka- India trade,” as said yesterday by Dr Indrajith Coomaraswamy, former governor of the Central Bank and senior economist.
Also, negotiations between the government and the Indian Authorities have been started to lengthen the US $ 1 billion repayment by five years which was acquired the previous year. The negotiations for the expansion of the debt for the same time duration under the Asian Clearing Union have also begun.
“ We are trying to settle that money over a five-year period. It’s still at early levels of negotiations, “ he added. But, it was noted by Dr Coomaraswamy that an extension of such a considerable length is unlikely to be acquired by Sri Lanka regarding the multi-million swap opportunity involving US $ 400 million, which has already been expanded.
The relationship shared by Sri Lanka with India and China played a huge role in the economic recovery of the nation was emphasised by him. Dr Coomaraswamy was hopeful that the sentiment of foreign investors would improve and bring about brand new FDI and inflows to the Colombo Stock Exchange and the market of government securities with the implementation of the International Monetary Programme.
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