Sri Lanka’s Central Bank reveals progress of securing foreign exchange inflows

The Central Bank on Tuesday revealed the progress of securing foreign exchange inflows and highlighted a series of direct engagements that the Sri Lankan Government has commenced with other Governments, Central Banks, financial institutions, and investors.

Releasing a statement, the bank said that the government is processing a US dollars 1.5 billion long-term loan offer from a foreign Government affiliated agency.

“Expected proceeds in relation to the two transactions involving Chalmers granaries and the property behind One Galle Face alone amount to around US dollars 200 million, and an advance payment is expected shortly,” the bank said.

“Another key foreign investment that would transform the energy sector in Sri Lanka with the addition of LNG to the energy mix is the US dollars 250 million inflow in relation to a partial divestment of the West Coast Power Plant to the US New Fortress Energy, and the first tranche of the investment is expected in November/December 2021.”

The US dollars 650 million investment in the West Container terminal by the Indian Adani Group, John Keells Holdings as the Sri Lankan counterparty, and the Sri Lanka Ports Authority has been recently finalised, the Central Bank said.

The statement added that the negotiations are underway to expedite the finalisation of foreign currency swap arrangements with neighbouring Central Banks.

Specifically, discussions are being held with the Reserve Bank of India, People’s Bank of China, and several Middle Eastern Central Banks.

Full statement

Press-Release-Progress-of-Securing-Forex-Inflows