IMF, China, Bangladesh infuse US$ 1,237 mn in aid

On Aug 31, 2021

The International Monetary Fund and the Bank of China and the Bank of Bangladesh have provided US $ 1,237 million or Rs. 24,477 million in Sri Lankan aid to strengthen Sri Lanka’s foreign reserves. The IMF has granted US$780 million under Special drawing rights (SDR) which is an international type of monetary reserve currency. Meanwhile, the Chinese Development Bank has provided loans amounting to Rs. 597 billion (US$ 300 million) while the Bank of Bangladesh has disbursed Rs. 2,985 million (US$ 150 million).

Sri Lanka has received the special input of the International Monetary Fund (IMF) and was due to receive a loan from the China Development Bank (CPD) yesterday (31), Finance Ministry Secretary S.R.Attygalle said.

Meanwhile, the Bank of Bangladesh and the Central Bank of Sri Lanka were due to disburse US $100 million out of a US$ 250 million loan assistance to Sri Lanka under the Exchange Facility signed on August 3 of this month.The exchange was held in support of Sri Lanka. According to the agreement, the Bank of Bangladesh will provide US$ 250 million to Sri Lanka in three phases.Finance State Minister Ajith Nivard Cabraal said in a Twitter message that the liquidity and stability of the Sri Lankan foreign exchange market would increase through the exchange rate. Accordingly, he urged importers and exporters to use the foreign exchange they have in anticipation of further depreciation of the rupee. Cabraal said the Central Bank of Sri Lanka has issued enough dollars, adding that the government has ensured that there is no possibility of a shortage of essential commodities.