India’ assistance to Sri Lanka through Currency Swap

On 15^th January, 2022, India’s External affairs Minister held a virtual meeting with Sri Lanka’s Finance Minister and discussed a wide range of issues.

Highlights: To assist Sri Lanka in overcoming its economic challenges, India has extended USD 400 million to Sri Lanka and deferred ACU (Asian Clearing Union) settlement of USD 515.2 million by two months under the SAARC currency swap agreement.

• The two Ministers also discussed the progress in extending a USD 1 billion credit facility from India for importing food, necessary products, and medication, as well as a USD 500 million credit facility for importing petroleum.
• Both Ministers agreed that renovating the Trincomalee Oil Tank Farms together will improve investor confidence while also improving Sri Lanka's energy security.