The Central Bank of Sri Lanka (CBSL) and the People’s Bank of China (PBoC) have signed a bilateral currency swap agreement to promote bilateral trade and direct investment for the two countries’ economic growth, as well as for other purposes agreed upon by both parties. Sri Lanka’s largest source of imports is the People’s Republic of China. Imports from China totaled US$ 3.6 billion in 2020, accounting for 22.3% of Sri Lanka’s total imports.
The Cabinet of Ministers approved this Swap agreement on the recommendation of the CBSL Monetary Board.
The agreement was signed by the governors of the two central banks, Deshamanya Professor W D Lakshman of CBSL and Dr. Yi Gang, Governor of PBOC.
CBSL is entitled to a swap facility worth CNY 10 billion (roughly US$ 1.5 billion) under this agreement. The agreement is in effect for three (3) years.