Maldives seeks $ 200m credit line from Sri Lanka via currency swap

The Maldives Government is seeking a US$ 200 million credit line via a currency swap.

This was disclosed by the Maldives President Mohamed Nasheed in Malé on Thursday prior to leaving to Sri Lanka to attend yesterday’s swearing-in ceremony of President Mahinda Rajapaksa.

Speaking to local press at the President’s Office, President Nasheed revealed that the government was in discussions with the Sri Lankan Government to establish a reciprocal currency or swap arrangement between both countries.

In addition, the President said he would hold further discussions with the Sri Lankan Government about setting up a financial arrangement between both countries.

The President revealed that both Governments had been discussing such an arrangement for some time. He said he was confident of closing the discussions and reaching an agreement during the visit.

Furthermore, he said that, under the arrangement, the Government would seek US$ 200 million line of credit from Sri Lankan Central Bank for the Maldives.

The President said the Government’s aim was to have an arrangement whereby Maldivian Rufiyaa could be directly exchanged for Sri Lankan Rupees and vice versa. He expressed hope of finalising a framework agreement of the arrangement during his visit.

Meanwhile, President Nasheed, though participating at Rajapaksa’s swearing-in ceremony, cut short his official visit to Sri Lanka following the passing away of Maldives First Lady’s father Ali Abdulla Friday morning.

President Nasheed had attended Late Ali Abdulla’s funeral held yesterday afternoon.