August 22, 2023
1 min read

Lanka begins repaying Bangladesh Loan

Amid a significant financial crisis in 2021, Sri Lanka had secured a $200 million loan through a currency swap arrangement with the Central Bank of Bangladesh…reports Asian Lite News

With multiple deadlines’ extensions given by Bangladesh, Sri Lanka has started repaying currency swap taken from Bangladesh with the first installment of $50 million.

Sri Lanka’s State Finance Minister Shehan Samasinghe announced that the repayment of the loan has been started and on the plans on the upcoming installments of $100 million and final installment of $50 million.

Having undergone a severe financial crisis in 2021, Sri Lanka had borrowed $200 million from the Central Bank of Bangladesh under a currency swap deal. 

Though the repayment was promised within three months, aggravated economic crisis in Sri Lanka turned to a political upheaval with the sitting government was forced to abandon and the President to flee the country. Thus, Sri Lanka sought several extensions for the repayment. 

The original repayment had been promised between August and November 2022 but Sri Lanka had asked for extra deadlines. However, Sri Lanka has been paying the interest every three months.

Bangladeshi media reported quoting Bangladesh Bank Executive Director and spokesperson Mezbaul Haque that of the $200 million loan given to Sri Lanka, an installment of $50 million had been settled. 

“Another installment is due later this month. We expect them to repay the loan in full within this year,” the spokesman had said.

Slowly recovering the worst-ever financial crisis since the independence in 1948, Sri Lanka sees overseas remittances are surging and coming out of the dollar crunch specially with the catching up of tourism, one of the main foreign income generators of the Indian Ocean island nation.

Meanwhile on Monday, Sri Lanka’s Department of Census and Statistics announced that the overall rate of inflation has dropped by almost 50 per cent to 4.6 per cent in July 2023 compared to the previous June which recorded 10.8 per cent. The inflation had dropped to a single digit after 21 months.

ALSO READ: Future demands Hindi, Chinese learning, Lankan President tells kids

Previous Story

PM Modi departs for South Africa to join BRICS Summit

Next Story

Naval forces conclude exercise Malabar 27th edition

Latest from -Top News

Trump Targets BRICS Allies with New Tariff

This move coincides with the ongoing BRICS summit being held in Rio de Janeiro, Brazil…reports Asian Lite News US President Donald Trump has announced that an additional 10 per cent tariff will

BRICS Endorses India’s Stand on Terror

The treaty proposed by India within the UN framework aims to provide a comprehensive legal basis for combating terrorism….reports Asian Lite News The leaders’ joint statement, issued after the 17th BRICS summit

BRICS Slams US Tariff Hikes

The leaders criticised developed nations for using environmental issues to justify trade restrictions on developing countries….reports Asian Lite News Rio de Janeiro, July 7 (IANS) Embroiled in a trade war launched by

US Tariffs Pushed to August Amid Talks

In April, Trump announced a base tariff of 10 per cent on most of America’s trading partners and thereafter additional duties ranging up to 50 per cent….reports Asian Lite News US President

Indonesia Joins BRICS Bloc

This year’s BRICS Summit saw an expanded format, reflecting the grouping’s growing relevance in international affairs….reports Asian Lite News Prime Minister Narendra Modi formally welcomed Indonesian President Prabowo Subianto into the BRICS
Go toTop

Don't Miss

Bangladesh all set for investment boom

Prime Minister Sheikh Hasina inaugurated the summit at a city

Bangladesh to buy Chinese vaccines

Earlier, the country had received seven million Covishield doses through