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India in talks to reschedule SL debt repayments, RBI agrees on USD 400mn currency swap

Jul 25, 2020 (LBO) – Reserve Bank of India (RBI) has signed the document for USD 400 million currency swap facility to Sri Lanka till November 2022.

High Commission of India in Colombo said this development is another example of India’s strong commitment to work with Sri Lanka in post-COVID19 economic recovery.

Meanwhile, on 22 July 2020, India and Sri Lanka held a technical discussion on the rescheduling of bilateral debt repayment by Sri Lanka.
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The Indian delegation comprising of senior officials from the Ministry of External Affairs, Ministry of Finance, and the EXIM Bank interacted with representatives from the Department of External Resources of Sri Lanka through a video conference.

The next round of technical discussions between the two sides on the rescheduling of debt repayment is expected to be held soon.

Full statement

Discussion on Rescheduling Bilateral Debt Repayment

On 22 July 2020, India and Sri Lanka held a technical discussion on rescheduling of bilateral debt repayment by Sri Lanka. The Indian delegation comprising of senior officials from the Ministry of External Affairs, Ministry of Finance, and the EXIM Bank interacted with representatives from the Department of External Resources of Sri Lanka through a Video Conference. The constructive discussion between both sides took place in a cordial and positive atmosphere.

2.​It may be recalled that both sides had discussed the ongoing COVID-19 pandemic and its likely health and economic impacts in the region during Prime Minister, Shri Narendra Modi’s telephone conversations with the President of Sri Lanka, H.E. Gotabaya Rajapaksa on 23 May 2020 and the Prime Minister of Sri Lanka, H.E. Mahinda Rajapaksa on 27 May 2020. During these conversations, Prime Minister, Shri Narendra Modi had assured that India would continue to provide all possible support to Sri Lanka for mitigating the effects of the pandemic.

3.​During the courtesy call on the President of Sri Lanka, H.E. Gotabaya Rajapaksa by the High Commissioner of India, H.E. Gopal Baglay on 29 May 2020, it was agreed to accelerate India’s participation in Sri Lanka’s post COVID economic recovery. High Commissioner Gopal Baglay also reiterated India’s commitment to deepening its partnership with Sri Lanka for peace, prosperity and security of the two peoples during his conversation with the President of Sri Lanka.

4.​Building on the mutual priorities identified during the telephone conversations between the leaders of India and Sri Lanka in May 2020 and High Commissioner’s courtesy call on the President of Sri Lanka, the High Commission of India engaged with the Government of Sri Lanka to facilitate the initiation of discussions between the two sides on this matter. The next round of technical discussions between the two sides on rescheduling of debt repayment is expected to be held soon.

5.​The High Commission of India will continue to work towards coordinating and facilitating such engagement as a part of India’s overall commitment to work with Sri Lanka to counter and mitigate the effects of the COVID-19 pandemic.

High Commission of India
Colombo

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