Sri Lanka pays off US$ 200m loan from Bangladesh with $4.5m interest

Sri Lanka
By Editor_1

DHAKA – Sri Lanka has paid off the entirety of US$ 200 million loan from Bangladesh, taken through a currency exchange agreement two years ago to survive the severe dollar shortage.

In the last instalment, Sri Lanka paid about $50 million and $4.5 million in interest on the loan on Thursday (21) night, a senior official of Bangladesh Bank confirmed.

Sri Lanka took the loan for a period of one year in May 2021. However, the country failed to repay the loan due to a worsening domestic economic crisis and the government declared itself bankrupt. That’s why the country took an extension to repay the debt several times.

This year, Sri Lanka’s economy started to turn around and the country was able to repay the debt.

According to Bangladesh Bank, Sri Lanka initially repaid $50 million on August 20. Then on August 31, it returned $100 million. Finally, they returned the remaining $50 million on Thursday night.

Sri Lanka has paid off the loan taken from Bangladesh in three instalments.

– dhakatribune.com

Editor_1
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