Sri Lanka Wants Change In China Currency Swap Deal

Battling its worst economic crisis, Sri Lanka is talking to China to amend the terms and conditions of the US $1.5 billion currency swap deal so that it can be used, reports the Daily Mirror, quoting a ‘top source’. As per the terms and conditions in the agreement, it cannot be used unless Sri Lanka has foreign reserves sufficient for three months. The deal that was signed last year is on hold because Sri Lanka has run short of the required amount of reserves. The deal enables Sri Lanka to borrow Yuan (Chinese currency) for payment of imports. Sri Lankan authorities have now requested the Chinese side to amend the particular clause of the agreement to make use of this currency facility. According to the source, the Sri Lankan side said that amendment of the clause would benefit China since it would be used for imports of Chinese products. Besides, Sri Lanka is in negotiation with several Chinese companies to purchase chemical fertilizer on credit for the next crop season.