Sri Lanka has made another payment of $100 million to Bangladesh, as part of the currency swap agreement between the two nations.
This payment brings the total amount repaid by Sri Lanka to $150 million, out of the initial $200 million borrowed.
The repayment was made after a delay of more than a year and a half, raising concerns about the adherence to the agreed-upon timeline. The currency swap agreement was established in August 2021, and Sri Lanka was expected to repay the entire amount within three months.
According to Md Mezbaul Haque, spokesperson for Bangladesh Bank, the remaining $50 million is expected to be cleared by September. Despite the delay, Bangladesh remains optimistic about the completion of the repayment process.
The initial repayment of $50 million was made by Sri Lanka on August 17, as reported by the Daily Star. This marked the first step towards fulfilling their financial obligations under the currency swap agreement.
It is worth noting that this currency swap agreement is notable for being the first loan provided by Bangladesh to any country. The funds were disbursed in three instalments in 2021, with the first tranche of $50 million sent in August, followed by $100 million just 11 days later, and a final $50 million in September.
As Sri Lanka continues its efforts to repay the remaining amount, both countries will closely monitor the progress to ensure the timely completion of the currency swap agreement.
