Sri Lanka may draw down on a 1.5 billion US dollar equivalent swap with the People’s Bank of China, Central Bank Governor Nivard Cabraal said.
Sri Lanka has kept the swap, which is worth one month of imports as a back up.
Cabraal said drawing down the swap was “under contemplation”.
The swap is denominated in Renminbi. Renminbi can be used for payments to China. Since 2016, RMB is also a part of the International Monetary Fund’s Special Drawing Rights basket.
Sri Lanka’s gross official reserves fell to 1,587 million US dollars in November, about one month of imports.
Sri Lanka was originally targeting a 3.5 billion US dollar reserves by the year end.
Sri Lanka was also working on a number of other inflows from India, and asset sales.
A 400 million dollar swap with India and 1.5 billion in credit lines were in the pipelines and could come in a matter of weeks, Cabraal was quoted as saying in Bloomberg Newswires.
Last week Minister Vasudeva Nanayakkara said the cabinet of ministers had discussed measures needed to implement agreement on capital flows.
Swaps with Middle Eastern nations were in an advanced stage, he said.
Sri Lanka’s gross official reserves fell to 1,587 million US dollars in November, about one month of imports amid sterilized interventions.
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Sri Lanka has kept the swap, which is worth one month of imports as a back up.
Cabraal said drawing down the swap was “under contemplation”.
The swap is denominated in Renminbi. Renminbi can be used for payments to China. Since 2016, RMB is also a part of the International Monetary Fund’s Special Drawing Rights basket.
Sri Lanka’s gross official reserves fell to 1,587 million US dollars in November, about one month of imports.
Sri Lanka was originally targeting a 3.5 billion US dollar reserves by the year end.
Sri Lanka was also working on a number of other inflows from India, and asset sales.
A 400 million dollar swap with India and 1.5 billion in credit lines were in the pipelines and could come in a matter of weeks, Cabraal was quoted as saying in Bloomberg Newswires.
Last week Minister Vasudeva Nanayakkara said the cabinet of ministers had discussed measures needed to implement agreement on capital flows.
Swaps with Middle Eastern nations were in an advanced stage, he said.
Sri Lanka’s gross official reserves fell to 1,587 million US dollars in November, about one month of imports amid sterilized interventions.
Economynext
