China and Sri Lanka renew bilateral currency swap agreement: PBC

With approval from the State Council, the People's Bank of China (PBC) recently renewed its bilateral currency swap agreement with the Central Bank of Sri Lanka, according to a statement issued by the PBC on Wednesday.

The agreement allows for a swap scale of 10 billion yuan ($1.38 billion)/410 billion Sri Lankan rupees, with a validity period of three years and an option for extension upon mutual consent. The renewal of the bilateral currency swap agreement will help strengthen financial cooperation between the two sides, expand the use of local currencies in bilateral transactions, and facilitate trade and investment between the two countries, the PBC said.

Sri Lankan President Anura Kumara Dissanayake recently paid a visit to China. The two countries issued a joint statement on January 16, noting that the two sides reached extensive common understandings on deepening traditional friendship and advancing high-quality Belt and Road cooperation and multi-sectoral practical cooperation between China and Sri Lanka.

The Central Bank of Sri Lanka and the PBC have renewed their currency swap agreement and will continue to carry out financial cooperation, according to the joint statement.