The Reserve Bank of India (RBI) extended over US$ 900 million to Sri Lanka over the last week, the Indian High Commission of Sri Lanka posted in its official Twitter account yesterday.
After a meeting between Indian High Commissioner to Sri Lanka Gopal Baglay and Central Bank Governor Ajith Nivard Cabraal at the Central Bank premises, the High Commission tweeted that India has expressed its strong support to Sri Lanka for economic recovery and growth.
“These comprise deferment of Asian Clearing Union settlement of over US$ 500 million and a currency swap of US$ 400 million. The High Commissioner noted that these steps are in line with India’s strong commitment to stand with Sri Lanka for economic recovery and growth,” the Tweet added.
Following the discussion, Central Bank Governor Cabraal tweeted, “Had an excellent discussion with Indian High Commissioner to Sri Lanka Gopal Baglay at my office where he confirmed the SAARC SWAP by RBI and other forms of bilateral cooperation”.
The Asian Clearing Union (ACU) is a payment arrangement whereby the participants settle payments for intra-regional transactions among the participating central banks on a net multilateral basis.
The SAARC Currency Swap Facility came into operation in 2012 with an intention to provide a backstop line of funding for short term foreign exchange liquidity requirements or balance of payment crises till longer term arrangements are made.
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