Sri Lanka has paid back Bangladesh $50 million out of the $200 million loan it took under the currency swap system in 2021 as it grappled with an economic crisis.
The instalment was paid on 17 August, confirmed Mezbaul Haque, spokesperson and executive director of the Bangladesh Bank.
This amount has bumped up the country’s foreign exchange reserves, he added.
“We have received the first instalment. A second instalment is expected on 30 August,” Mezbaul said, adding that the central bank hopes to get back the total amount from Sri Lanka within this year.
In September 2021, Bangladesh loaned Sri Lanka $200 million from its foreign exchange reserves under the currency swap system.
The term of the one-year loan expired in September last year. Then the term was extended twice in three months till March this year. Finally, the neighbouring country was given another six-months till September to repay the loan.
As per the loan agreement, Bangladesh is supposed to receive an interest payment of Libor+1.5% against the loan. It is known from Bangladesh Bank sources that Sri Lanka is paying the interest regularly.
