Sri Lanka repays $50m to Bangladesh

Despite facing economic challenges, Sri Lanka has repaid $50 million to Bangladesh as part of a $200 million loan received through a currency swap mechanism two years ago. 

 

 

The Bangladesh Bank spokesperson confirmed the repayment and noted that it contributed to Bangladesh's foreign exchange reserves. The loan was extended to assist Sri Lanka's economy recover from a financial crisis. 

 

 

The initial one-year term of the loan was extended multiple times, and the first instalment of $50 million has been repaid, with a second instalment expected soon. 

 

 

The loan agreement stipulated that an interest payment would be made based on the LIBOR plus a 2% rate. In March, Sri Lanka secured a $2.9 billion program from the IMF to address its significant debt burden, including loans from bilateral creditors.