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Sri Lanka to seek $400 million financial facility from RBI to meet short term financial needs

Sri Lanka will enter into the agreement with the RBI for a Bilateral Currency Swap Arrangement worth $400 million, Gunawardena said, adding the facility from the RBI is aimed at boosting the island nation's foreign reserves.

April 24, 2020 / 05:55 PM IST

Sri Lanka is set to enter into an agreement with the Reserve Bank of India for a currency swap worth $400 million to boost the foreign reserves and ensure the financial stability of the country which is badly hit by the COVID-19 pandemic, a top minister has said.

The Cabinet has approved a proposal made by Prime Minister Mahinda Rajapaksa as the Finance Minister to enter into an agreement with the RBI for the financing facility to meet short-term international liquidity requirements, Co-Cabinet spokesman Information and Communication Minister Bandula Gunawardena said.

Sri Lanka will enter into the agreement with the RBI for a Bilateral Currency Swap Arrangement worth $400 million, Gunawardena said, adding the facility from the RBI is aimed at boosting the island nation's foreign reserves.

Sri Lanka has placed critical economic measures to save the resources hit badly by the COVID-19 pandemic which has infected 373 persons in the country and the death toll reached 7.