Questioning the source of the funds which were claimed as foreign reserves by Central Bank Governor Ajith Nivard Cabraal yesterday, Samagi Jana Balawegaya (SJB) MP Dr Harsha De Silva said that if the funds were from a currency swap from China, the funds could not be considered as foreign reserves as it could not be used to import essentials. He made this statement during a media brief held yesterday (29). "On the 21st of March this year, the former CBSL Governor Lakshman and the Chinese Central Bank Governor had signed a swap deal. The said that Sri Lanka would be able to obtain currency under the swap agreement when required in the next 3 years. The agreement was for 10bn yuan, this converts to USD 1.6bn. With the existing USD 1.5bn and this USD 1.6Bn is added, it amounts to USD 3.1bn. What we have heard is that the USD1.6bn can only be used to import products from China. If there are restrictions on how we can use the funds, then we can't use the money on how we want," said Dr De Silva. He further added that if this currency swap did take place, it would not count as foreign reserves. "This creates a question whether it can be called a foreign reserve or not. They must tell us whether the funds were received from Dubai, China or through the agreement signed between Lakshman and the Chinese Central Bank Governor. We would obtain 10bn yuan and give them Rs 300Bn, and they can invest the money in Sri Lankan treasury bills. If we assume the interest stands at 2%, they can obtain treasury bills until 8%, and they will generate a profit of more than 10%," he added. Additionally, Dr Harsha claimed that this currency swap was a short term exchange facility, and US dollars are needed to import LP gas, medicines and other products. "If there is no dollars, then what they are committing is a scam," he concluded.