CBSL in swap agreement with Chinese bank

The Central Bank of Sri Lanka (CBSL) and the People's Bank of China (PBOC) entered into a bilateral Currency Swap Agreement last week which provides an opportunity to exchange Sri Lanka's National Currency (LKR) with the Chinese National Currency (CNY) for trade related activities and other purposes agreed upon by both parties.

The Swap agreement facilitates the exchange of a maximum of Rs 225 billion and CNY 10 billion for a tenor of three years. The Swap agreement will facilitate the rapidly growing bilateral trade and investments between the two countries and further enhance financial cooperation between the two Central Banks.

The agreement follows the investment agreement entered on August 25 between Governor Ajith Nivard Cabraal of the CBSL and Governor Zhou Xiaochuan of the PBOC, which enabled Sri Lanka to invest in the growing Chinese Interbank Bond Market.