Sri Lanka Pays The Entire Debt Of Bangladesh

Sri Lanka has fully repaid the $200 million loan taken from Bangladesh through currency exchange agreement two years ago. Yesterday Friday (September 22), a top official of Bangladesh Bank gave confirmed this information.

He said Sri Lanka paid the last installment of $50 million and $4.5 million in interest on the loan last Thursday (September 21) night. We noticed it on Friday morning.

Sri Lanka paid off the debt at a time when Bangladesh's foreign exchange expenditure was outpacing its earnings, resulting in dwindling reserves.

According to central bank data, the country's total foreign exchange reserves stood at $21.45 billion as of September 21.

Earlier, Sri Lanka returned USD 100 million to Bangladesh on September 2. before that, the country had paid $50 million in the first installment on August 17.

Bangladesh gave this loan to Sri Lanka in 2021 in three installments. On August 19 of that year, the first installment was $50 million, the second installment was $100 million 11 days later, and another $50 million in September. This was Bangladesh's first loan to any country.

However, they repaid the debt as the troubled country's economy was just started to recovering.