Sri Lanka repays $50 million out of $200 million in loan to Bangladesh

Sri Lanka has repaid $50 million as part of an installment to Bangladesh, which had earlier lent $200 million amid economic crisis in the nation, said an official of Bangladesh Bank (BB).

Md Mesbaul Haque, Executive Director and Spokesperson of the central bank, said, “Out of the $200 million loan given to Sri Lanka, we have received an installment of $50 million. Another installment is due later this month. We expect them to repay the loan in full within this year,” UNB reports.

Sri Lanka took the loan in 2021 under the currency swap system with the condition of repayment within three months.

But it failed to repay the loan on time and the island nation wanted an extension of time due to political chaos amid domestic financial turmoil. Bangladesh had extended the deadline for several times.

According to BB, Bangladesh released 50 million dollars in the first phase on August 19, 2021. The second round of $100 million was given on October 30 of that year. Then $50 million dollars was given in November.

Under an agreement, the money was supposed to be returned with interest between August, October, and November last year. But the country failed to repay the loan on time.