Due to its economic problems, Sri Lanka had to borrow $200 million from Bangladesh under the currency swap system. Of that amount, $50 million has already been returned to Bangladesh.
The payment was made on August 17, according to a senior central bank official.
The amount, according to the official, has increased the nation’s foreign exchange reserves.
As part of the currency swap arrangement, Bangladesh gave Sri Lanka a $200 million loan from its foreign exchange reserves in September 2021.
The one-year loan’s term ended in September of the previous year. Then, until March of this year, the term was extended twice in three months. The neighboring nation was finally given an additional six months, until September, to repay the loan.
According to the loan arrangement, Bangladesh is entitled to a Libor+1.5% interest payment on the loan.
