Bangladesh extends US $ 200 million loan to Sri Lanka

Bangladesh extends the tenure of a bilateral currency-swap agreement with Sri Lanka by a year in consideration of foreign-exchange crunch the cash-strapped island nation suffers.

Officials Sunday said the central bank of Bangladesh made the decision to extend the swap period with the Central Bank of Sri Lanka (CBSL). “Our board has decided to extend the tenure of the agreement for one year to help the island nation in minimizing foreign-exchange crunch on their economy,” a top central banker told the FE after the meeting.

The central bank provided a total of $200 million to help prop up the island nation’s fast-depleting foreign reserves and ease pressure on its exchange rate. Earlier on August 18 last calendar year, the BB transferred $50 million into the CBSL in the first installment under the currency-swap deal initiated in March 2021.