CB, People’s Bank of China in mega Swap Agreement

Wednesday, 17 September 2014 01:22 -     - {{hitsCtrl.values.hits}}

  • Deal facilitates exchange of a maximum of Rs. 225 b and CNY  10 b for 3-year tenure
The Central Bank of Sri Lanka (CBSL) and the People’s Bank of China (PBOC) yesterday entered into a bilateral Currency Swap Agreement which provides an opportunity to exchange Sri Lanka’s National Currency (LKR) with the Chinese National Currency (CNY) for trade-related activities and other purposes agreed upon by both parties. The Swap Agreement facilitates the exchange of a maximum of Rs. 225 billion and CNY 10 billion for a three-year tenure. This Swap Agreement is also expected to facilitate the rapidly-growing bilateral trade and investments between the two countries, as well as contribute towards the further enhancement of the financial cooperation between the two Central Banks. This Agreement follows the Investment Agreement entered into on 25 August between CBSL Governor Ajith Nivard Cabraal and PBOC Governor Zhou Xiaochuan, which enabled Sri Lanka to invest in the growing Chinese interbank bond market.