The Central Bank of Sri Lanka (CBSL) and the People’s Bank of China (PBoC) have entered into a bilateral currency swap agreement with a view to promoting bilateral trade and direct investment for economic development of the two countries, and to be used for other purposes agreed upon by both parties.

The People’s Republic of China remains Sri Lanka’s largest source of imports; in 2020, imports from China amounted to US$ 3.6 billion (22.3% of Sri Lanka’s imports), the Central Bank said in its statement.

This swap agreement has been approved by the Cabinet of Ministers with the recommendation of the Monetary Board of Central Bank.

CBSL Governor Deshamanya Professor W.D. Lakshman and PBoC Governor Dr. Yi Gang are the signatories to the agreement.

Under this agreement, the Central Bank is entitled for a swap facility amounting to CNY 10 billion (approximately US$ 1.5 billion).

The agreement is valid for a period of three (3) years, the statement read further