Sri Lanka likely to pay back $200m by Sept

Sri Lanka is expected to pay back the $200 million it borrowed from Bangladesh in a currency swap agreement in May 2021 by September as the island nation's economic situation is improving, said Foreign Minister AK Abdul Momen yesterday.

"Sri Lanka is gradually doing better. They are recovering slowly. We have given them until September [to repay the loan]," Momen told journalists yesterday at state guest house Padma on his return from Colombo.

Momen was a guest at Sri Lanka's 75th Independence Day celebrations.

Sri Lanka was supposed to repay the $200 million in March but the island nation sought more time. Subsequently, Bangladesh Bank gave Sri Lanka six more months.

"The new government there is running the country pretty well."

The Sri Lankan government is hopeful of recovering from its deep economic problem with support from the International Monetary Fund.

The two parties have recently reached a staff-level agreement on a 48-month $2.9 billion loan programme that will also help the beleaguered nation to secure short-term funds from other donors.

Sri Lankan President Ranil Wickremesinghe has conveyed his country's gratitude to the Bangladesh government and Prime Minister Sheikh Hasina for the timely assistance as the country battles to rebuild its economy, Momen said.