Sri Lanka set to get another $100m from Bangladesh under swap arrangement

[UKBengali]

Truth be told if bd was in this situation srilanka would have been the last country to help us. The fact that our govt. is willing to accept the payment in worthless srilankan rupees speaks volumes

It is not just altruistic.

Yes BD does get Sri Lanka Rupees in return but this will be with interest.

The sums are not that great and it would be easy for BD to quickly(1-2 years) buy Sri Lankan products to this value and so in effect this is win-win for both countries. Last year BD brought 160 million US dollars of Sri Lankan products.

When you have near 50 billion US dollar reserves then 200 million US dollars is not that big a deal.

 

[Sulman Badshah]

The swap contract is not a help,

In swap contract initiation it is net 0 for both countries

It is a mutual understanding between 2 countries in which one will gain while the other will be at loss at end of the arrangement, things can go both ways

 

[Sulman Badshah]

Sri Lanka needs US Dollars to repay their debts, We are giving them US Dollars to do that, in exchange for Sri Lanka Rupees, which are of no worth to us.

We could have easily not done or given them anything. This is the GoB going out of its way to help Sri Lanka.

This is the very definition of "Help" and you're supposed to be "Staff". lol.



Keep your Bias out of here, If you want to foster constructive discussions, as "staff" should.

Do you even know what and how currency Swap works?

It is not a definition of help, as I stated that SWAP contracts at initiation are priced net at zero which means that if GOB has given Sri Lanka 100 M USD then GOB received an estimated 200 M Srilankan Rupees from them as well

At the end of the contract
Sri Lanka will pay GOB 100 M USD + Interest to GOB
While GOB will return those SL rupees with interest


and as USD will outperform SL rupee in future , it is in benefit for GOB to enter into SWAP conract withSL

 

[UKBengali]

Do you even know what and how currency Swap works?

It is not a definition of help, as I stated that SWAP contracts at initiation are priced net at zero which means that if GOB has given Sri Lanka 100 M USD then GOB received an estimated 200 M Srilankan Rupees from them as well

At the end of the contract
Sri Lanka will pay GOB 100 M USD + Interest to GOB
While GOB will return those SL rupees with interest


and as USD will outperform SL rupee in future , it is in benefit for GOB to enter into SWAP conract withSL

Nope.

Sri Lanka will repay in Sri Lanka Rupees with interest on top.

Like I said on my previous post the sums are not that great and so this is not even BD doing a big favour to Sri Lanka as it can easily buy this amount in goods from Sri Lanka in Rupees over the next 1-2 years.

Sri Lanka needs dollars and BD gets some extra interest to buy more Sri Lankan goods over the next 1-2 years for this 200 million US dollar loan.

BD is not really doing Sri Lanka any favours here and this is a win-win situation as Sri Lanka gets its US dollars a little cheaper this way than through a commercial loan.

 

[DalalErMaNodi]

Nope.

Sri Lanka will repay in Sri Lanka Rupees with interest on top.

Like I said on my previous post the sums are not that great and so this is not even BD doing a big favour to Sri Lanka as it can easily buy this amonth in goods from Sri Lanka in Rupees over the next 1-2 years.

Sri Lanka needs dollars and BD gets some extra interest to buy more Sri Lankan goods over the next 1-2 years for this 200 million US dollar loan.

BD is not really doing Sri Lanka any favours here and this is a win-win situation as Sri Lanka gets its US dollars a little cheaper this way than through a commercial loan.

Bangladesh does not owe Sri Lanka anything, they make racist jokes about our people all day.

The singular fact that we are even glancing their way when they ask for help is a favour, a favour they will never return when it's our time to ask for help.



Shameless Sri Lankas are foaming at the mouth on Facebook all day when bashing BD alongside Indians but they become dead silent when this currency swap topic comes up.


Their silence speaks volumes. This is help. Period. Anyone denying that is just so far gone with their anti Bangladesh agenda that they can't see striaght.

 

[UKBengali]

Bangladesh does not owe Sri Lanka anything, they make racist jokes about our people all day.

The singular fact that we are even glancing their way when they ask for help is a favour, a favour they will never return when it's our time to ask for help.



Shameless Sri Lankas are foaming at the mouth on Facebook all day when bashing BD alongside Indians but they become dead silent when this currency swap topic comes up.


Their silence speaks volumes. This is help. Period. Anyone denying that is just so far gone with their anti Bangladesh agenda that they can't see striaght.

Anything that improves BD's image in the world is a good thing. This loan has been noticed and written about in many news outlets around the world. First time since independence BD has been a giver and not a reciever of financial assistance.

If Sri Lanka does not appreciate this then so what. BD gets more Sri Lankan goods in return than if it had left that 200 million US dollars lying in its banks doing nothing.

 

[DalalErMaNodi]

Anything that improves BD's image in the world is a good thing. This loan has been noticed and written about in many news outlets around the world. First time since independence BD has been a giver and not a reciever of financial assistance,

If Sri Lanka does not appreciate this then so what. BD gets more Sri Lankan goods in return than if it had left that 200 million US dollars lying in its banks doing nothing.

That I will agree with, It does set a precedent which is very important in these sort of issues.. and brings good press to the country's name.


Hopefully, As the economy grows we can do more to help our neighbours going through tough times.


However, some are more deserving of help than others..

 

[Rostr]

@Rostr brother your thoughts on how this money will help Sri Lanka....

It's a nice booster for the short term to keep 3 months import barrier after 6 months the end of the year sees reserves go up generally and sinc all major bond repayments for this year is done and only one next year the cbsl estimates the reserves will go back 7 or 8 bill in a year or so

 

[DalalErMaNodi]

Lmao!



The post which got removed;

They just make up new rules as they go, no wonder the forum is dying.

 

[Rostr]

It already is, china lured them into a debt trap by loaning them huge amount of loans for infra projects that Chinese knew were never going to generate enough returns to pay them back. And now they are being slowly forced to relinquish (lease) ports etc to China as a payment.

Our repayments to China this year was 40 million our bond payments were 3 billion last year China loan payments were 30 million bonds were 2 billion
Hambantota port was profitable when it was sold even after debt payments the port made 10 million dollars profit in 2017 it only made losses in 2015 as the government banned fuel supplies due to an investigation and combined with the profits of 100 million the slpa made through all ports there was not a problem with it financially, it's doing much better now though cargo tripled last year, the port operator wouldn't have bought a money hole and China didn't need it as it already won a bid for building and operating the largest terminal in Colombo a few years before that and it's not like you can bring any ships without sl permission

The government thought that divesting it was better for the government as it would bring a large amount of money and they could use the exchange to pay for bond payment, ofcourse it was politically advantageous too

 

[bluesky]

The swap contract is not a help,

In swap contract initiation it is net 0 for both countries

It is a mutual understanding between 2 countries in which one will gain while the other will be at loss at end of the arrangement, things can go both ways

It is more possible that BD will lose some money. But so what? Life goes on and the relationship between the two countries keeps on improving.

BD needs friends around it.

 

[Bilal9]

It's a nice booster for the short term to keep 3 months import barrier after 6 months the end of the year sees reserves go up generally and sinc all major bond repayments for this year is done and only one next year the cbsl estimates the reserves will go back 7 or 8 bill in a year or so

Good to hear. Best of luck to Sri Lankan Govt., people and her diaspora.