Sri Lanka pays back $50m to Bangladesh

Sri Lanka has paid back Bangladesh $50 million out of the $200 million loan it took under the currency swap system in 2021 owing to its economic crisis.

The instalment was paid on August 17, said a high official of the central bank. The official said this amount had increased the country's foreign exchange reserves.

In September 2021, Bangladesh extended a loan of $200 million to Sri Lanka from its foreign exchange reserves under the currency swap system.

The term of the one-year loan expired in September last year. Then the term was extended twice in three months till March this year. Finally, the neighbouring country was given another six months till September to repay the loan.

As per the loan agreement, Bangladesh is supposed to receive an interest payment of Libor+1.5 per cent against the loan.

/KN/