Colombo (LNW): Sri Lanka has recently settled the first instalment of US $50 million of a US $200 million debt obtained from Bangladesh two years ago, a report by Bangladeshi website New Age disclosed.
The financial assistance was extended by the Bangladesh Bank (BB) to Sri Lanka to address a pressing foreign exchange reserve crisis experienced by the South Asian country then.
The first payment from Sri Lanka was received on August 17, according to Md Mezbaul Haque, executive director and spokesperson of the BB.
He also said that Sri Lanka was expected to pay back another instalment by August 30.
The BB foresees the repayment of the entire US $200 million loan by September, he added.
Under the terms of a currency swap agreement, Bangladesh provided this monetary support to Sri Lanka in three distinct tranches.
The first tranche of US $50 million was sent on August 19, the second instalment of US $100 million on August 30 and the rest $50 million in September of 2021.
On August 19 in 2021, the BB released US $50 million as the first tranche and another US $100 million as the second instalment on August 30 in 2021 and the third tranche worth US $50 million on September 21 in the same year.
The initial tenure of the currency swap agreement was set at three months while the agreement contained a rollover condition, allowing Sri Lanka to extend the period of repayment of the financing facility.
