Sri Lanka to receive USD1.1 bn under RBI swap arrangement: Central Bank Governor

Governor_of_the_Central_Bank_Arjuna_Mahendran

Sept 03, 2015 (LBO) – Sri Lanka will receive the balance 1.1 billion dollars from the Reserve Bank of India to boost foreign reserves under a 1.5 billion dollar swap arrangement, the Central Bank Governor Arjuna Mahendran confirmed to Lanka Business Online.

On April 30th, Sri Lanka obtained 400 million dollars under this arrangement, which is available from the RBI to SAARC member countries, to increase foreign reserves.

The Central Bank said during the release of its monthly monetary policy announcement, earlier this week, that the swap arrangement would boost foreign reserves.

“The realisation of the remaining proceeds of the currency swap arrangement with the Reserve Bank of India amounting of US dollars 1.1 billion and long term financial flows to the government, including the planned term loan of US dollars 500 million,” will support official reserves, the central bank said.

In a statement Thursday, the central bank said that consequent to the signing of a special currency swap agreement with the RBI on 17 July 2015, the central bank received 1.1 billion dollars on Thursday, 03 September, 2015.

“With the enhanced level of official reserves, the CBSL expects that the exchange rate would stabilize in line with sound macroeconomic fundamentals and movements of other currencies of major trading partners,” the statement said.

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Tilak
Tilak
6 years ago

A fine move.This would provide that much needed initial peace of mind & time to really ponder the situation & plan with initial moves

Chan Wee
Chan Wee
6 years ago

what wil they use it for ? to prop the LKR against US$. artificial rate – dirty float.
same shit different clowns DUH.

Lalith
Lalith
6 years ago
Reply to  Chan Wee

yeah i expected ranil to be atleast responsible now that elections are over. but the guy has gone all crazy it seems.