Sri Lanka repays $100mn more of loan taken from Bangladesh

Sri Lanka has repaid $100 million more in the second installment out of the total $200 million loan given by Bangladesh to the Island country under the currency swap system in 2021.

Bangladesh Bank (BB) Spokesperson Mesbaul Haque said on Friday.

Last month Colombo paid $50 million in the first installment of the loan repayment.

Bangladesh lent $200 million from its foreign exchange reserves to Sri Lanka during the country's economic crisis.

The remaining $50 million loan will be repaid within the current year, the BB spokesperson said

Besides, a BB official said that Sri Lanka would clear the rest payment of $50 million by September this year.

Sri Lanka, which has been facing an acute greenback shortage for months, borrowed $200 million from Bangladesh in May 2021.

The country was scheduled to repay the loans by April last year, but it failed due to its acute internal financial crisis.

Earlier on June 12, Bangladesh Bank granted Sri Lanka six more months to repay the $200 million loan.