Sri Lanka central bank expects $1.1 billion investments from current deals

10/26/2021 | 06:37am

COLOMBO, Oct 26 (Reuters) - Sri Lanka's central bank said on Tuesday it was expecting investments of around $1.1 billion from deals being made in the real estate, ports and energy sectors to help top up the country's flagging foreign exchange reserves.

The central bank also said it was in talks with the Reserve Bank of India, the People's Bank of China and several Middle Eastern Central Banks for finalizing foreign currency swap arrangements.

However, it did not give a definitive timeline on when these currency swap agreements would be settled.

Separately, Finance Ministry sources told Reuters the government had received proposals from three banks and two investment houses on Oct. 5 to raise a syndicated loan for an unspecified amount.

Sri Lanka's reserves had dropped to $2.5 billion by the end of September. On October 1, Sri Lanka unveiled a six-month roadmap for putting the economy back on track and calming investor worries about a possible default.

The central bank said it was expecting investments from projects that had been signed recently, including one related to a terminal project at the Colombo Port.

It also said an advance payment from a $200 million real estate venture was also expected.

The central bank also added it had made progress on talks with India about a credit line of $500 million, and that a long-term loan facility of about $3.6 billion was under discussion.

(Reporting by Uditha Jayasinghe in Colombo; Editing by Krishna Chandra Eluri)

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