India extends critical forex support of over $ 900 m to SL

Saying it with flowers: Central Bank Governor Ajith Nivard Cabraal receiving a bouquet of flowers from India High Commissioner in Colombo Gopal Baglay

India has extended over $ 900 million in facilities to help Sri Lanka get over its serious foreign reserve crisis.

Indian High Commission said that the financial assistance includes $ 400 million currency swap and $ 500 million that was deferred under the Asian Clearing Union settlement framework.

“High Commissioner met Governor of Central Bank of Sri Lanka and expressed India’s strong support to Sri Lanka in the wake of Reserve Bank of India (RBI) extending over $ 900 million facilities over the last week,” Indian High Commission in Sri Lanka said in a tweet.

Separately Central Bank Governor Nivard Cabraal said India’s High Commissioner in Colombo during a meeting yesterday has confirmed support to Sri Lanka.

“Had an excellent discussion with Indian High Commissioner to #SriLanka HE Gopal Baglay at my office this morning where he confirmed the #SAARC #SWAP by RBI and other forms of bilateral cooperation,” Cabraal tweeted yesterday.

“The $ 400 million currency swap is among one of the four pillars of bilateral economic cooperation identified during Finance Minister Basil Rajapaksa’s visit to India in December last year,” sources said.

Critical infusion of $900 million is the manifestation of India’s continued support to Sri Lanka.

External Affairs Minister Dr. S. Jaishankar earlier this month tweeted that India will support Sri Lanka during these difficult times after the phone call with Foreign Minister Prof. G.L Peiris on 6 January. 

Sources said other pillars of support worked out during  Basil Rajapaksa’s visit next week are under progress.