Before the end of the one-year period stipulated by Bangladesh Bank (BB), Sri Lanka will pay the entire $200 million by March of the following year, Sri Lanka Central Bank Governor Nandalal Weerasinghe said on Wednesday.
Sri Lanka has already approached to IMF and others. India is among the nations helping to reconstruct Sri Lanka's fragile economy. As a result, Weerasinghe has promised that paying down the debt won't be an issue.
The Governor of Bangladesh Bank Abdur Rouf Talukder held a bilateral meeting with the Governor of Sri Lanka at the annual meeting of the World Bank Group in Washington.
“Sri Lanka is trying to turn around. So, I think the country can repay the debt,” Abdur Rauf said.
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In May 2021, Bangladesh agreed to lend Sri Lanka $200 million on the condition that it will be repaid within three months. In 2022, BB has extended the loan repayment period another year to give the Island nation a respite so that it can overcome its worst ever debt and economic crises.
Therefore, the country has assured that it will repay the debt before May next year.
Bangladesh stands by with $200 million loan assistance to Sri Lanka, which was burdened by the pressure of foreign debt. The repayment period was also fixed according to the currency swap policy.
However, in 2021, Sri Lanka fell into an extreme crisis. In the end, the island state declared itself bankrupt.
