Sri Lanka is exploring different options to repay its debt, including additional loans from China, currency swap facilities with India and China, and Samurai and Panda bonds, he said. Further, Sri Lanka is also negotiating a nearly $1.5-billion currency swap facility with the People’s Bank of China. Sri Lanka owes China over $5 billion so far. As for India, the Reserve Bank of India signed a $400 million swap agreement with Sri Lanka in July, to help boost Sri Lanka’s foreign reserves, and is perusing a further $1 billion requested by Sri Lanka. “Emerging nations have all faced external sector stresses, which is not peculiar to Sri Lanka.

Source: The Hindu October 19, 2020 17:26 UTC