Sri Lanka is in talks with Qatar and Oman for foreign exchange swaps, Central Bank Governor Indrajit Coomaraswamy said.
Sri Lanka’s foreign reserves has increased to USD 8 billion with the securing of USD 1 billion foreign currency term financing facility from China Development Bank (CDB), at highly competitive interest rates, Central Bank announced recently.
Sri Lanka is also exploring possibilities of entering into currency swap agreements with trade partners aiming to shore up exports and bring down the trade deficit which is putting pressure on the rupee, he told a forum organized by Asia Securities, a Colombo-based brokering company.
Dr. Coomaraswamy said that inflation was low even though the budget deficit was slightly higher than expected. However, the Governor noted that they would expect a primary surplus.