CB enters into US $ 1.5bn swap deal with People’s Bank of China

The Central Bank of Sri Lanka (CBSL) and People’s Bank of China (PBoC) have entered into a bilateral currency swap agreement, with a view to promoting bilateral trade and direct investment for economic development of the two countries and to be used for other purposes agreed upon by both parties, a CBSL statement said. 

The People’s Republic of China remains Sri Lanka’s largest source of imports. In 2020, imports from China amounted to US $ 3.6 billion (22.3 percent of Sri Lanka’s imports).
This swap agreement has been approved by the Cabinet of Ministers with the recommendation of the Monetary Board of the CBSL.

The Governors of the two central banks, Deshamanya Prof. W.D. Lakshman of the CBSL and Dr. Yi Gang of the PBoC, are the signatories to 
the agreement.

Under this agreement, the CBSL is entitled to a swap facility amounting to CNY 10 billion (approximately US $ 1.5 billion). The agreement is valid for a period of three years.