The Central Bank of Sri Lanka (CBSL) and the People's Bank of China (PBOC) entered into a bilateral Currency Swap Agreement yesterday.
The agreement provides opportunity to exchange Sri Lanka's National Currency (LKR) with the Chinese National Currency (CNY) for trade related activities and other purposes agreed upon by both parties.
The Swap agreement facilitates the exchange of a maximum of Rs. 225 billion (US$ 1.63 billion) and Chinese Yuan 10 billion for a tenor of three years.
The agreement is also expected to facilitate the rapidly growing bilateral trade and investments between the two countries, as well as contribute towards the further enhancement of the financial cooperation between the two Central Banks, the CBSL said.