CB enters into a currency swap deal with China | Page 2 | Sunday Observer

CB enters into a currency swap deal with China

28 March, 2021

The Central Bank (CB) and the People’s Bank of China (PBoC) entered into a bilateral currency swap agreement to promote bilateral trade and direct investment for economic development of the two countries, and to be used for other purposes agreed upon by both parties. The People’s Republic of China remains Sri Lanka’s largest source of imports. In 2020, imports from China amounted to US$ 3.6 billion (22.3% of Sri Lanka’s imports). 


The swap agreement has been approved by the Cabinet of Ministers with the recommendation of the Monetary Board of CBSL. Governors of the two Central Banks, Prof. W. D. Lakshman of CBSL and Dr. Yi Gang, Governor of PBOC, were the signatories to the agreement. Under the agreement, CBSL is entitled for a swap facility amounting to CNY 10 billion (approximately US$ 1.5 billion). The agreement is valid for three years.