Sri Lanka and China sign US$ 1.5 billion currency swap deal

22 March 2021 09:09 pm - 12 - {{hitsCtrl.values.hits}}

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The Central Bank of Sri Lanka (CBSL) and the People’s Bank of China (PBoC) have entered into a bilateral currency swap agreement with a view to promoting bilateral trade and direct investment for economic development of the two countries, and to be used for other purposes agreed upon by both parties, CBSL said.

The People’s Republic of China remains Sri Lanka’s largest source of imports. In 2020, imports from China amounted to US$ 3.6 billion (22.3% of Sri Lanka’s imports).

This swap agreement has been approved by the Cabinet of Ministers with the recommendation of the Monetary Board of CBSL. Governors of the two Central Banks, Deshamanya Professor W D Lakshman of CBSL and Dr. Yi Gang, Governor of PBOC, are the signatories to the agreement.

Under this agreement, CBSL is entitled for a swap facility amounting to CNY 10 billion (approximately US$ 1.5 billion). The agreement is valid for a period of three (3) years. (ER)

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Comments - 12

Peacemaker Monday, 22 March 2021 10:50 PM

There goes the country into China’s total control

Demuni Uduwara Monday, 22 March 2021 11:14 PM

SL is imminent to get mortgaged!

Aquarius Monday, 22 March 2021 11:31 PM

Currency swap deal????? Swapping means an exchange - where do we have this type of money to exchange? In layman's language, Sri Lanka in debt for generations, if not forever.

Sumudhu Peris Tuesday, 23 March 2021 02:41 AM

Since Sri Lankans live beyond their means and indulge in everything imported, this will mean we will draw on the Swap, the SLR TO $ exchange rate will increase and we will be more in debt to China. Yes we have stupid politicians.......

Saranapala de Silva Tuesday, 23 March 2021 03:44 AM

Was this influenced by the SINOPHARM COVID vaccine being allowed into the country?

Lumbini Tuesday, 23 March 2021 04:00 AM

22.3% of Sri Lanka’s imports are from China. How much we export to China? I wonder whether this deal is a fixed-for-fixed currency swap or a fixed-for-floating swap. Whatever is, do we have any choice?

Trap Tuesday, 23 March 2021 04:37 AM

Sinking deeper into debt.

Umar Perera Tuesday, 23 March 2021 05:01 AM

Well and truly a colony of China now. God help us all

Senaka Tuesday, 23 March 2021 05:02 AM

Another billion to total debt.

Leo Tuesday, 23 March 2021 09:00 AM

Good bye Sri Lanka well come Chi Lanka.

MirakRajBanda Tuesday, 23 March 2021 10:03 AM

Debt trap on it's full swing. What are we selling next?

Hawkeye Tuesday, 23 March 2021 10:20 AM

Much, much better than a so-called grant of US 450 Million which would have made us a vassal state of an overlord who has over 800 military bases in more than 70 countries and territories abroad

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Sri Lanka and China sign US$ 1.5 billion currency swap deal

Comments - 12

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