Experts say main reason behind Bangladesh's economic growth is that it continues to reap benefits from EU's Generalised Scheme of Preferences programme & other trade preferences.
New Delhi: From providing India with Covid relief materials to extending financial help to Sri Lanka in its hour of crisis, Bangladesh has started to showcase its economic rise and use it to forge deeper ties with neighbours.
Earlier this week, Bangladesh agreed to extend a $200 million currency swap facility to Sri Lanka. This will help in boosting their economy even as it will enable Colombo to tide over the massive debt crisis it is facing at present, diplomatic sources told ThePrint.
The foreign debt situation of Sri Lanka is at a critical juncture leading to a massive balance of payment issues. Sri Lanka has reportedly $3.7 billion of foreign debt maturing this year, hence this cooperation from Bangladesh is expected to be a lifeline for their economy.
According to sources, the arrangement was finalised during Sri Lanka Prime Minister Mahinda Rajapaksa’s visit to Bangladesh in March this year.