Indian HC assures full support for proposed US$ 1.1bn SWAP with RBI

The Acting Indian High Commissioner in Sri Lanka has agreed to fully support Sri Lanka’s bid to obtain US$ 1.1 billion from Reserve Bank of India (RBI) under a proposed special SWAP facility to strengthen the country’s foreign reserves.

Central Bank (CB) Governor, Prof. W.D. Lakshman yesterday met with the Acting High Commissioner of India to Sri Lanka, Vinod K. Jacob to discuss the progress of proposed special SWAP facility of US$ 1.1 billion between Reserve Bank of India (RBI) and the CB. 

During this discussion, Jacob has promised to provide fullest support of the High Commission to make this arrangement successful, according to highly placed sources. 
 Jacob and Prof. Lakshman also held cordial discussions on Indo-Sri Lanka economic relations.

In addition to the proposed SWAP facility, Prime Minister Mahinda Rajapaksa had also sought a moratorium on the debt owed to India, totalling US$ 960 million, early this year. 

According to Fitch Ratings, the country has external debt servicing of US$ 3.8 billion for the rest of 2020, including US$ 1 billion international sovereign bond maturing this October. Sri Lanka’s gross official reserves stood at US$ 6,693.2 million in June 2020, slightly up from US$ 6,499.9 in May 2020.