In December 2024, the Central Bank of Sri Lanka (CBSL) and the People’s Bank of China successfully renewed their Bilateral Currency Swap Agreement for an additional three years. This renewal extends the original 2021 agreement, the CBSL in a statement said today (17 January).
The currency swap facility, valued at CNY 10 billion (approximately USD 1.4 billion).
CBSL Governor Dr. Nandalal Weerasinghe signed the agreement on behalf of Sri Lanka, while Pan Gongsheng, Governor of the People’s Bank of China, signed on behalf of China’s central bank.
The two countries entered into a bilateral currency swap agreement with a view to promoting bilateral trade and direct investment for economic development of the two countries, and to be used for other purposes agreed upon by both parties. The People’s Republic of China remains Sri Lanka’s largest source of imports. In 2020, imports from China amounted to US$ 3.6 billion (22.3% of Sri Lanka’s imports).