
Sri Lanka has requested a USD $250 million currency swap with the Bangladesh Bank.
The announcement came from Bangladesh Foreign Minister A. K. Abdul Momen. The minister said that the island nation has requested another US$ 250 million currency swap. The Foreign minister is currently in Sri Lanka to attend the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) which got underway in Colombo today.
A currency swap is effectively a loan that Bangladesh will give to Sri Lanka in US dollars, with an agreement that the debt will be repaid with interest in Sri Lankan rupees.