Colombo in talks with Beijing to amend terms of $1.5 billion currency swap deal, claims report – Times of India

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Sri Lanka is in talks with China to agree the terms of a 10 . to change billion yuan ($1.5 billion) currency swap deal amid an unprecedented economic crisis, a media report said on Thursday. The agreement signed last year would allow Sri Lanka to borrow Chinese currency for the payment of imports, daily mirror reported, citing a source.
Under the terms of the agreement, the amount cannot be used unless Sri Lanka has sufficient foreign reserves for three months. The deal is on hold because Colombo no longer has the required amount. According to the source, Colombo has requested Beijing to change the specific clause as it would benefit China as the money would be used to import Chinese products, the report said.
Meanwhile, the Chinese embassy in Colombo tweeted that Chinese banks were willing to negotiate with Sri Lanka to properly handle overdue debt.





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