Sri Lanka has requested India for a new currency swap facility worth about $1 billion and a deferment of debt repayment, both of which are being discussed at the official level, and a mutual understanding on the issues would be arrived at shortly, the Ministry of External Affairs (MEA) said.

Prime Minister Narendra Modi and his Sri Lankan counterpart Mahinda Rajapaksa, in their virtual summit on Saturday –which lasted one hour, discussed strengthening of bilateral financial cooperation, reviewed the entire range of bilateral matters and exchanged views on regional and international issues of common concern.

Amit Narang, Joint Secretary, Ministry of External Affairs, in a press briefing after the meeting, said: “India has already provided a $400 million currency swap facility to the Central Bank of Sri Lanka in order to assist with economic recovery and to tackle the Covid-19 related disruptions. An additional request for a bilateral currency swap

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