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Reserve Bank of India extends fresh boost to Sri Lanka

July 09, 2025

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Daily FT

THE Reserve Bank of India (RBI) has offered the Central Bank of Sri Lanka an extension to the remaining dues under the $ 2.6 billion Special Swap Arrangement signed, along with a reduction in interest rate, in a fresh boost to the economy and foreign reserves management.

The relief was firmed up during the visit by a RBI delegation to Colombo last week.

During the peak of the economic crisis, India has extended approximately $ 4 billion assistance to Sri Lanka. Out of that, approximately $ 2.6 billion was the Special Swap Arrangement between RBI and CBSL which included dues under the Asian Clearing Union and bilateral dues.

The outstanding of approximately $1.7 billion was due in October 2024.

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