To maintain foreign exchange, Sri Lanka took loan from China.
COLOMBO: AS Sri Lanka’s local currency hit a record low, it took load from china of US$500 million in a hope to shore up its foreign exchange.The Sri Lankan embassy in Beijing said the loan agreement with the China Development Bank will "infuse vitally required foreign exchange" into the island's pandemic-battered economy.It is the second Chinese loan made in less than three weeks.Last month, the People's Bank of China granted a US$1.5 billion currency swap to finance imports from China, a key supplier of manufactured goods to the island which is struggling to pay for imports.Sri Lanka's rupee hit a record low of 202.73 to the US dollar, as the country's foreign reserves fell to US$4.05 billion at the end of March, the lowest in 12 years.The country's economy contracted by a record 3.9 p...