Loan sought from Reserve Bank of India Govt. seeks $ 400 m loan from India  Cabinet approves PM's proposal By Maheesha Mudugamuwa The Government of Sri Lanka has sought a $ 400 million loan from the Reserve Bank of India (RBI) for the purpose of liquidity management of the country, The Morning learnt. This was confirmed by Co-Cabinet Spokesperson Minister Bandula Gunawardana yesterday (26). Gunawardana told The Morning that the loan would be obtained at very minimal interest rates and also for a shorter period of time. Accordingly, Sri Lanka would enter into an agreement with the RBI for a currency swap worth $ 400 million to boost foreign reserves and ensure financial stability in the country which is badly hit by the Covid-19 pandemic, a top minister said. The Cabinet has approved a proposal made by Prime Minister Mahinda Rajapaksa in his capacity as the Finance Minister to enter into an agreement with the RBI for the financing of the financing facility to meet short-term international liquidity requirements. When contacted, Minister Chamal Rajapaksa said the additional information including the interest rates and repayment would be discussed on Wednesday (29) at the cabinet meeting. Sri Lanka has been facing a financial crisis that is now expected to become complicated with the Covid-19 pandemic.