Reserve Bank of India signs currency swap agreement with CBSL

20 July 2015 04:33 am Views - 2742

Picture shows the Deputy Governor of the Central Bank of Sri Lanka, Dr Nandalal Weerasinghe exchanging the bilateral currency swap agreement with Executive Director of Reserve Bank of India P Vijaya Bhaskar at a special signing ceremony held at Reserve Bank of India New Delhi office. H. A. Karunaratne, Assistant Governor of the Central Bank of Sri Lanka and several senior officers of the Reserve Bank of India participated at the ceremony.


The Central Bank of Sri Lanka and the Reserve Bank of India recently signed the currency swap agreement in New Delhi enabling Sri Lanka to draw US $ 1.1 billion.

This is in addition to US $ 400 million made available to the Sri Lankan Central Bank in April 2015 under the financing facility for South Asian Association for Regional Cooperation (SAARC) member country Central Banks. “This new facility will allow the Central Bank to further strengthen its position in the financial market and bring greater stability to the exchange rate,” the Central Bank said.

“This new facility will allow the Central Bank to further strengthen its position in the financial market and bring greater stability to the exchange rate,” the Central Bank said.

Extended swap facility is the direct result of the goodwill gesture extended by Indian Prime Minister Narendra consequent to his visit to Sri Lanka on 14th March, 2015.

This facility is expected to further enhance the economic cooperation between the two institutions and strengthen the long standing relationship between two countries.