Sri Lanka gets six more months to pay back $200m loan

The central bank of Bangladesh gave an extension of six months to the South Asian neighbour Sri Lanka for repaying USD 200 million debt.

Sri Lanka was scheduled to pay the lone by March this year and with the new development, the country has to return the money by September.

According to a senior official who wished to remain anonymous, said Bangladesh Bank reached the decision at its board meeting on Thursday where the monetary policy for the second half of the FY23 was approved.

Bangladesh Bank lent $50 million to Sri Lanka for the first time in August 2021, in order to help the island nation to come out from its devastating economic crisis.

Later, the Bangladeshi central bank provided another $150 million more over the course of two phases.