Lanka ‘banking on’ $1 bn India swap deal

Assistance ‘crucial’ to help Colombo meet debt obligations: central bank official

Sri Lanka is “banking on” a $1 billion currency swap from India to meet its debt repayment obligations this year and tide over the current economic crisis, a senior official of the Central Bank of Sri Lanka said. The island nation has already serviced part of its debt this year, and is preparing to repay the remaining more than $3 billion over the next six months, officials said. With an international sovereign bond maturing soon, a $1 billion repayment is due in July. “We are expecting a $400 million swap from the Reserve Bank of India in a couple of months through the SAARC facility,” said the official, who spoke on condition of anonymity given the sensitivity of the ongoing bilateral negotiations. “But the additional $1 billion is going to be crucial for us,” the official added.