Episode 95: Bangladesh-Sri Lanka Currency Swap

Bangladesh Bank, Bangladesh’s central bank, has in principle approved a S$200 million currency swap agreement with Sri Lanka, which will help Colombo deal with its foreign exchange crisis. This is unusual since Bangladesh, which has only recently qualified for graduation from the list of Least Developed Countries, has not been viewed so far as a provider of financial assistance to other countries. To discuss various aspects of the currency swap arrangement, including the changing economic balance of power in South Asia, Sri Lanka's debt profile and economic trajectory, Bangladesh's trade and export strategy, and both countries' position and prospects in the Covid-19 pandemic, Dr Amitendu Palit, Senior Research Fellow and Research Lead (Trade and Economics), ISAS spoke to Dr Sanjay Kathuria, Non-Resident Senior Fellow, ISAS. Dr Kathuria is also Senior Visiting Fellow at Centre for Policy Research, India and holds Adjunct Professor positions at Georgetown University, USA and Ashoka University, India. Prior to this, Dr Kathuria was Lead Economist, South Asia Region at the World Bank.