RBI inks pact with Sri Lanka’s Central Bank

July 17, 2015 11:27 pm | Updated November 16, 2021 06:15 pm IST - CHENNAI:

The Reserve Bank of India (RBI) signed a currency swap agreement with the Central Bank of Sri Lanka on Friday, according to a RBI press release.

Currency swap agreements exist to assist countries during periods of tight liquidity or balance of payments and liquidity crises. Under this agreement, Sri Lanka can draw a maximum of $1.1 billion for a period of up to six months. The agreement is in addition to the existing framework on currency swap arrangement for the SAARC member countries, an arrangement by which SAARC members can draw currency $100 million-$400 million, with a total limit of $2 billion, from an RBI financing facility set up for this purpose. India and Sri Lanka’s central banks signed a currency swap agreement in March 2015 under the SAARC Framework, agreed during Prime Minister Narendra Modi’s visit to the island nation.

Top News Today


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.