Sri Lanka repays US$50 million loan to Bangladesh: Source
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The loan was part of a swap agreement with the Bangladesh Bank in 2021.
PHOTO: REUTERS
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DHAKA - Sri Lanka has repaid US$50 million (S$67.88 million) to Bangladesh out of a US$200 million loan, a senior Bangladesh central bank official said on Monday, as the crisis-hit island nation makes efforts to recover from its worst financial crisis in more than seven decades.
The loan was part of a swap agreement with the Bangladesh Bank in 2021 as Sri Lanka’s neighbours in the region stepped in to help the country battle a financial crisis caused by years of economic mismanagement
The island nation of 22 million people is making efforts to recover, with a US$2.9 billion International Monetary Fund (IMF) bailout secured in March.
Bangladesh, too, secured IMF approval in January for loans of US$4.7 billion to ward off an economic crisis amid a decline in its foreign exchange reserves and depreciation of the taka currency.
Bangladesh expects Sri Lanka to repay the entire loan this year, with another instalment due later this month, the official at the Bangladesh Bank’s foreign exchange department told Reuters. REUTERS
