The Reserve Bank of India (RBI) on 29 March 2016 signed a Special Currency Swap Agreement with the Central Bank of Sri Lanka.
Under the arrangement, the Central Bank of Sri Lanka can draw up to 700 million US dollars for a maximum period of three months. This special arrangement is in addition to the existing Framework on Currency Swap Arrangement for the SAARC Member Countries.
The proposal to extend the additional currency swap facility of 700 million US dollars to Sri Lanka for a limited period was decided with concurrence of the Union Government in March 2016 for short-term liquidity management in the context of India’s strong bilateral relations and economic ties with Sri Lanka.
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When: 29 March 2016