SL to benefit from RBI’s US$ 2 billion arrangement

Sri Lanka is among the SAARC member nations who will benefit from the Reserve Bank of India’s (RBI) $ two billion swap arrangement aimed at strengthening regional financial and economic cooperation, the Indian High Commission said yesterday.

RBI Governor D Subbarao on May 16 had announced that the RBI will offer swap arrangement of $ two billion both in foreign currency and Indian rupee.

The facility will be available to all SAARC countries, viz, Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka. With launching of this facility, member countries can now approach Reserve Bank of India for availing of the facility. The Central Bank of Sri Lanka will need to enter bilateral swap agreements, which need final approval from the Indian government, the Indian High Commission said in a statement.

The swap will be offered in US dollar, Euro or Indian Rupee against the domestic currency or domestic currency denominated government securities of the requesting country. India will contribute the entire fund.

Economic Times