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India, Sri Lanka sign currency swap agreement

Staff writer ▼ | July 20, 2015
India's central bank, the Reserve Bank of India signed a special currency swap agreement with the Central Bank of Sri Lanka to let the latter draw $1.1 billion in six months, local media reported.
Reserve Bank of India
Asia   Central banks signed $1.1 billion deal
The agreement is aimed at helping Sri Lanka in availing a safety net against the probable volatility of its currency and providing short-term liquidity that would contribute to Sri Lanka' s economic recovery.

Signed by officials of the two central banks in Mumbai, the arrangement is in addition to the existing Framework on Currency Swap Arrangement for the South Asian Association for Regional Cooperation (SAARC) member countries, according to Press Trust of India.

Indian Prime Minister Narendra Modi in April approved the agreement with Sri Lanka when he visited Colombo.

The framework arrangement for SAARC members has existed since 2012 to swap $2 billion among the central banks of these countries up to November this year.