India confirms SAARC currency swap up to US$ 400mn

Central Bank Governor Ajith Nivard Cabraal during the meeting with Indian High Commissioner Gopal Baglay

India has confirmed its support to Sri Lanka by way of a currency swap under the SAARC arrangement and a deferment of a previous loan.  

In an update on Twitter, the Indian High Commission in Colombo yesterday said that the RBI had provided Sri Lanka the opportunity to defer an Asian Clearing Union settlement of over US$ 500 million, and a currency swap of US$ 400 million. 

Central Bank Governor Ajith Nivard Cabraal tweeted that he had an excellent discussion with Indian High Commissioner in Colombo, Gopal Baglay yesterday morning in the former’s office.  

The RBI and the CBSL have entered into a currency swap agreement under the SAARC Currency Swap Framework 2019-2022.

Under the agreement that is valid until 13 November, 2022, CBSL can draw US$, Euro or Indian Rupee in multiple tranches up to a maximum of US$ 400 million or its equivalent.