China approves US$1.5 billion currency swap with Sri Lanka amidst debt crisis
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China has approved a 10 billion yuan ( US$1.54 billion) currency swap deal with Sri Lanka, amidst Colombo's rising debt levels and dwindling foreign reserves.
The deal would allow Sri Lanka to address “present difficulties”, the State Minister of Money and Capital Market and State Enterprise Reforms, Ajith Nivard Cabraal said. The announcement follows contested reports of negotiations breaking down for another IMF credit facility last year due to Sri Lanka’s obligations on “debt sustainability” not being met.


