Gotabaya seeks additional $1.1 billion SWAP facility from Modi

 thehindu.com  05/24/2020 02:12:48 

Sri Lankan President Gotabaya Rajapaksa on Saturday sought a special $1.1-billion currency swap facility from Prime Minister Narendra Modi to boost its foreign exchange reserves under strain in the wake of the coronavirus pandemic.

The Central Bank of Sri Lanka had recently sought a $400-million currency swap with the RBI under the SAARC facility. Mr. Rajapaksa told Prime Minister Narendra Modi over telephone that the additional amount to top the $400 million would enormously help Sri Lanka in dealing with our foreign exchange issues, according to a statement issued by the Presidents office here.

Mr. Modi called Mr. Rajapaksa to discuss the challenges and bilateral cooperation during the pandemic, Colombo-based official sources said. With COVID-19 delivering a huge blow to the global economy, Sri Lanka too is reeling under its impact, especially as it prepares to service $2.9 billion of its external debt this year.

Mr. Modi assured that he is personally committed to help Sri Lanka, the Presidents office said. We are ready to help under terms that are favourable to Sri Lanka, Mr. Modi said, according to the press statement.

Following Saturdays call, Mr. Modi said in a tweet: Had an excellent talk with President @GotabayaR. Sri Lanka is fighting COVID-19 effectively under his leadership.

We agreed to accelerate Indian-assisted development projects in Sri Lanka, and also strengthen investment links.

— Narendra Modi (@narendramodi) May 23, 2020

Mr. Rajapaksa told Mr. Modi: I believe India has managed the COVID-19 pandemic well, and commended his governments stimulus package.

Sincerely appreciate support extended by HE Shri @narendramodi during phone call today.Whilst thanking him for multitude of assistance extended during #COVID19, I invited #India to continue with investments to revive economy, including lines of credit & enhanced bilateral trade

— Gotabaya Rajapaksa (@GotabayaR) May 23, 2020

He added: Friendship of centuries & bonding of culture & religions will continue to be the basis of the relationship between #India & #LKA. Thank you HE Shri @narendramodi for your hand of friendship during trying times. We will continue to stand by #India. Mr. Rajapaksa also thanked Mr. Modi for support, including 10 tonnes of medical supplies to combat COVID-19, the official statement said.

The call between the leaders comes over a week after Chinese President Xi Jinping spoke to Mr. Rajapaksa over telephone, suggesting that the two countries gradually resume practical cooperation in various fields, advance major cooperation projects in an orderly manner and promote the high-quality construction of the Belt and Road Initiative (BRI).

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