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India responds to reports on currency swap facility settlement, says it was prescheduled  

The Indian High Commission in Colombo today responded to the reports of US$ 400 million currency swap facility settled by Sri Lanka and added that the settlement was prescheduled.

A Spokesperson for the High Commission said they have seen speculative reports about the US$ 400 million settlement of currency swap facility by Central Bank of Sri Lanka (CBSL).

In a statement, the Spokesperson said that the Reserve Bank of India (RBI) and CBSL had concluded a US$ 400 million currency swap agreement on 24 July 2020 under the SAARC Currency Swap Framework.

“This swap facility was drawn by CBSL on 31 July 2020 for an initial period of three months. A three-month rollover was provided at CBSL’s request till 01 February 2021.

“Further extension would require Sri Lanka having a successfully negotiated staff level agreement for an IMF programme, which Sri Lanka does not have at present.

“The CBSL settled the swap facility with RBI as scheduled and this was clarified by the CBSL as well today. It is reiterated that India abides by all of its international and bilateral commitments in letter and spirit,” it said.