Reserve Bank of India extends fresh boost to Sri Lanka

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.

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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.