Colombo, February 5 (newsin.asia): The Indian High Commission on Friday reacted to some “speculative” reports on the settlement of the US$ 400 million currency swap facility.
It pointed out that Reserve Bank of India (RBI) and the Central Bank of Sri Lanka (CBSL) had concluded a US$ 400 million currency swap agreement on 24 July 2020 under the SAARC Currency Swap Framework. This swap facility was drawn by the CBSL on 31 July 2020 for an initial period of three months. A 3-month rollover was provided at CBSL’s request till 01 February 2021.
Further extension would require Sri Lanka to successfully negotiate a staff level agreement for an IMF program, which Sri Lanka does not have at present. The CBSL settled the swap facility with RBI as scheduled and this was clarified by CBSL on 05 February 2021.
It is reiterated that India abides by all of its international and bilateral commitments in letter and spirit, a High Commission statement said.