The Bangladesh Bank board on Sunday approved in principle a draft $200-million currency swap deal with Sri Lanka, which is struggling to maintain a moderate foreign exchange reserve. The currency swap agreement would be finalized after getting a legal vetting approved by the government, BB officials told New Age after the meeting. Under the draft currency swap proposal, the BB would provide up to $200 million in foreign currency to meet Sri Lanka’s foreign currency expenditures, the officials said. The currency swap agreement also contains a rollover condition, allowing Sri Lanka to extend the period of repayment of the loan, the BB officials said. Before the move to strike a currency swap deal with Bangladesh, Sri Lanka has already signed a 10 billion yuan or $1.5b swap with the Peoples’ Bank of China and asked for a $1 billion swap from India, according to media reports.
