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Jun 30, 2020

India discusses rescheduling Sri Lanka’s repayment of loans to India, currency swap

India has said, it has been engaged in close and constructive discussions on rescheduling Sri Lanka’s repayment of loans to India, and on currency swap under bilateral and SAARC arrangements.

A press statement by Indian high commission in Colombo said, the matter had been taken up at the leadership level and has been followed up by senior functionaries bilaterally.

It said, the High Commissioner of India to Sri Lanka held discussions at senior levels in Colombo over past few days, on Sri Lanka’s requirements.

The statement came in response to some media reports that Sri Lanka is looking towards China for moratorium on loan repayments as India has not responded to the requests made earlier.

It may be mentioned that Sri Lankan Prime minister Mahinda Rajapaksa had requested Indian government for rescheduling of loan repayments in wake of economic crisis faced by Sri Lanka.

President Gotabaya Rajapaksa had requested for currency swap arrangement worth 1 billion US dollars to tide over financial crisis.

Sri Lanka owes around 1 billion US dollars of loan component towards India while its commitment towards Chinese government and state-owned companies is over 6 billion dollars.

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