China-Sri Lanka announces $ 1.63 billion currency swap deal

BEIJING/COLOMBO: China's central bank today announced signing of a $ 1.63 billion currency swap deal with the central bank of Sri Lanka, following bilateral talks between the presidents of the two countries.

The three-year agreement aims to promote bilateral trade and strengthen financial cooperation between the two central banks, the People's Bank of China (PBOC) said in a statement.

The 10 billion yuan (about $ 1.63 billion) deal could be extended upon agreements by the two sides, state-run Xinhua news agency reported.

Two weeks ago, the PBOC signed an agent investment agreement with its Sri Lankan counterpart which allows the former, on behalf of the latter, to make investments in China's interbank bond market.

Chinese President Xi Jinping held talks with his Lankan counterpart President Mahinda Rajapaksa after arriving in Colombo for his maiden two day state visit to the country.

He would travel to India tomorrow.