Sri Lanka pays back $50mn of loans to Bangladesh

Sri Lanka has paid back Bangladesh $50 million of loans, which is one fourth of the $200 million given by Dhaka in 2021.

Confirming the matter, spokesperson and executive director of the Bangladesh Bank Mezbaul Haque said the installment was paid on August 17.

This amount has increased the foreign exchange reserves of the country, he added.

The crisis-hit nation will pay another instalment within August 30, he said, adding that the central bank hopes to get back the whole amount of $200 million from the Island nation within this year.

Under a currency swap deal, Bangladesh lent the money to Sri Lanka in three installments in September 2021.

In September last year, the term of the one-year loan expired. Afterward, the term was extended twice in three months till March this year. Lastly, Sri Lanka was given another six-month till September to pay back the loan.