India extends $ 400 mn currency swap facility to Colombo to address economic slowdown

The Reserve Bank of India in a significant move has signed necessary documents for extending $ 400 million currency swap facility to the Central Bank of Sri Lanka.
This currency swap arrangement will remain available till November 2022 will help Colombo address the economic hardships caused due by pandemic.
Based on the request from the Sri Lankan side for a currency swap facility under the SAARC Currency Swap Framework, India extended a $ 400 million currency swap under the SAARC framework.
Modi conveyed India’s support to Sri Lanka in dealing with pandemic and economic impact. While the Agreement for USD 400 million currency swap under the SAARC framework is concluded, the bilateral swap request for USD 1.1 billion is being considered.