Sri Lanka, which is badly hit by the COVID-19 pandemic, is set to enter into an agreement with the Reserve Bank of India for a currency swap worth $400 million.
The arrangement is to boost the foreign reserves and ensure the financial stability of the island nation.
Sri Lanka's finance minister will sign the agreement with the RBI for the financing facility to meet short-term international liquidity requirements, minister Bandula Gunawardena said. The cabinet has approved a proposal made by prime minister Mahinda Rajapaksa in this regard.
The swap arrangement is a decision two countries reach while doing trade related payment. Sri Lanka has placed critical economic measures to save the resources hit badly by the COVID-19 pandemic which has infected 373 persons in the country and the death toll reached seven.
The cabinet meeting chaired by president Gotabaya Rajapaksa paid special attention to the control of the coronavirus pandemic, its success and the distribution of goods and relief to the people.
The country has already ordered imports restrictions to prevent non-essential imports. This is in view of theSri Lankan rupee falling to its historical low against the US dollar.
The rupee now hovers over 195 to the dollar gaining somewhat from being down to 200 mark.
The government has also announced talks with Asian Development Bank and China's Asian Infrastructure Investment Bank. A $300 million budgetary support is anticipated from the ADB, officials said.
Tourism is the third-largest earner of foreign exchange in Sri Lanka. The decline in tourist arrivals has hit the island nation's tourism industry in a big way.
Recently, World Bank said that Sri Lankan economy will contract by three per cent this year as against a 2.4 per cent estimated growth last year.
Nick and Priyanka enjoy a quiet family momentInstagram/PriyankaChopra
Chirag Rao brings the magic of Bollywood hits to life with a jazz twist in his upcoming Bollywood Bratpack concert
Nazeem Hussain prepares to bring his unique comedic style to Leicester Square Theatre for his highly anticipated You Paid For This show
Jewel Thief – The Heist Begins: Despite a star-studded cast, this Netflix release is shaping up to be another disappointing addition to the streaming platform
Isabelle Kaif’s journey in Bollywood continues to be plagued by setbacks, with her upcoming film Suswagatam Khushamadeed facing an uncertain future
Abir Gulaal brings together Fawad Khan and Vaani Kapoor in a cross-border romantic comedy, offering a refreshing message of love and unity
Manoj Kumar, a true Bollywood legend, leaves behind a legacy of iconic films that celebrated patriotism and meaningful storytelling
Manoj Kumar’s legacy in Bollywood is defined by his iconic roles and patriotic cinema that resonated deeply with audiences for generations
Ranjeet reflects on his legendary Bollywood career, sharing intriguing behind-the-scenes tales from his iconic villain roles in an exclusive interview
Ambika Mod takes centre stage in Porn Play, an intriguing and thought-provoking production at the Royal Court, expected to be one of the year's most in-demand theatre events
Emraan Hashmi hopes for a career revival with a sequel to Awarapan, but his recent track record leaves many confused about his comeback