Official figures show Sri Lanka’s foreign reserves plummeted to $4.8 billion at the end of January, the lowest since September 2009 when they fell to $4.2 billion. Sri Lanka is seeking $2.2 billion from Chinese banks, the government said on Thursday, in echoes of a borrowing binge more than a decade ago that resulted in the country having to give up a strategic port to China. Money and Capital Markets Minister Nivard Cabraal said the government was hopeful of finalising a $1.5-billion swap facility with China’s central bank. Official figures show Sri Lanka’s foreign reserves plummeted to $4.8 billion at the end of January, the lowest since September 2009 when they fell to $4.2 billion. Officials said the country was also in talks with China Development Bank for a $700-million loan that would include the equivalent of $200 million being drawn in Chinese currency.

Source: The Hindu February 25, 2021 16:02 UTC