CB extends currency swap agreement with Reserve Bank of India

The Central Bank of Sri Lanka yesterday announced the extension of the currency swap agreement with the Reserve Bank of India. 

“Extended Currency Swap Arrangement with the Reserve Bank of India consequent to the signing of a special currency swap agreement for $ 1.1 billion by the Central Bank of Sri Lanka (CBSL) with the Reserve Bank of India (RBI) on 17 July 2015, the CBSL has received $ 1.1 billion on Thursday,” it said in a statement.

This is in addition to the $ 400 million received in April 2015 by the CBSL under the currency swap facility availed by the RBI to central banks of SAARC member countries.

With the enhanced level of official reserves, the CBSL expects that the exchange rate will stabilise in line with sound macroeconomic fundamentals and movements of other currencies of major trading partners.