COLOMBO -- Sri Lanka is turning to key Asian allies for a financial lifeline as a balance of payment crisis looms over the debt-strapped South Asian island. It is in discussions with India and China in a desperate effort to meet unprecedented foreign debt obligations.
The Reserve Bank of India agreed earlier this month to provide a $400 million currency swap facility to the Central Bank of Sri Lanka. "The RBI's very rapid and timely assistance will serve to boost investor confidence by supporting Sri Lanka to maintain an adequate level of external reserves," CBSL said in a statement.
