According to foreign media reports, Sri Lanka has successfully fulfilled its financial commitments by making a final payment of USD 50 million to Bangladesh. This payment marks the completion of a USD 200 million loan obtained through a currency swap agreement that was initiated two years ago. Additionally, on Thursday, September 21, the Sri Lankan government also disbursed an interest payment of USD 4.5 million on the loan amount.
Sri Lanka had previously made a repayment of USD 100 million on September 2, 2023, and an additional USD 50 million on August 17, 2023. These payments come at a time when Sri Lanka’s economy is gradually recovering from its severe economic crisis experienced just a year ago, during which inflation skyrocketed to 69.8 percent in September of the previous year. However, as of July, inflation has moderated to a more manageable rate of 6.3 percent.
Meanwhile, Bangladesh is grappling with a foreign exchange shortage due to a significant reduction in its reserves over the past eighteen months. This decline in reserves is attributed to higher import costs in comparison to lower-than-expected remittances and export earnings. As per Bangladesh Bank data, the country’s gross foreign exchange reserves stood at USD 21.45 billion on September 21, following the calculation method prescribed by the International Monetary Fund