The USD 1.2 billion loan facility has been negotiated with the CDB as Sri Lanka’s forex reserves dropped to USD 4.05 billion dollars in March 2020, the lowest since a currency crisis in 2008/2009.
The April tranche is the second USD 500 million of a USD 1.2 billion dollar facility Sri Lanka has been seeking from the CDB.
Sri Lanka has about USD 3.5 billion of foreign currency denominated debt to repay from March to December 2021, and the balance is owned by resident holders, officials said.
Sri Lanka began the year with about USD 6.8 billion of forex denominated debt due in 2021 of which about USD 2.5 billion were domestically owned, they added.
These include Sri Lanka Development Bonds and loans taken from the foreign currency banking units of domestic banks, they claimed.