Sri Lanka begins repayment of US $ 200mn loan to Bangladesh with US $ 50mn first instalment

Sri Lanka has repaid US $ 50 million as the first instalment of the US $ 200 million it borrowed from Bangladesh in 2021, under a currency swap deal.
“Out of the US $ 200 million loan given to Sri Lanka, we have received an instalment of US $ 50 million. Another instalment is due later this month. We expect them to repay the loan in full within this year,” Bangladesh Bank Executive Director and spokesperson Mezbaul Haque was quoted as saying in Bangladeshi media. 

Finance State Minister Shehan Samasinghe confirmed to local media that the upcoming instalment would amount to US $ 100 million, followed by a final instalment of US $ 50 million. Sri Lanka borrowed the money from Bangladesh Bank—the central bank of Bangladesh—in 2021, under a currency swap deal, with the condition of repayment within three months.
However, the island nation failed to repay the loan on schedule, seeking an extension, due to the political upheaval and domestic financial turmoil. Bangladesh granted multiple deadline extensions in response.

As per the Bangladesh Bank, the initial phase saw the release of US $ 50 million on August 19, 2021. Subsequently, the second instalment of US $ 100 million was disbursed on October 30, followed by another US $ 50 million in November.
The money was supposed to be returned with interest between August, October and November 2022. But Sri Lanka failed to repay the loan on time.