The move comes as a testament to bolstering economic engagement between the two nations. The development was announced in a press release issued by the Indian High Commission in Sri Lanka and will help Colombo address the economic hardships caused due by pandemic.
Sri Lanka will be receiving the currency swap facility from RBI under the South Asian Association for Regional Cooperation (SAARC) framework, which will help the island nation ensure better financial stability and standing which has been vitiated lately since the onset of COVID-19 pandemic.
Meanwhile, the two nations are presently also engaging to reschedule the repayment of debt owed to India by Sri Lanka.
The officials from the two nations held a technical discussion on the subject on 22 July following a telephonic conversation between Prime Minister (PM) Narendra Modi and President Gotabaya Rajapaksa on 23 May, following which a conversation also took place between PM Modi and PM Mahinda Rajapaksa on 27 May.
Next round of technical discussion is now expected to be held soon.
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