“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, ” wrote Indian digital news portal ThePrint on Friday.
Titled as ‘Covid aid to India, financial help to Sri Lanka: Bangladesh is showcasing its economic rise’, the report written by Nayanima Basu argued that the country is now using its economic rise ‘to forge deeper ties with neighbours.’
“Earlier this week, Bangladesh agreed to extend a $200 million currency swap facility to Sri Lanka,” it said. “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 in Sri Lanka has already reached 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,” added the report.
ThePrint, referring to sources, further added that the arrangement was finalised during Sri Lanka Prime Minister Mahinda Rajapaksa’s visit to Bangladesh in March this year.
A currency swap is a transaction in which two parties exchange an equivalent amount of money with each other, but in different currencies which helps in reducing the cost of borrowing in a foreign currency at favourable rates.
“Sri Lankan economy has been in deep trouble ever since the 2019 Easter bombings and subsequently the outbreak of the coronavirus pandemic that has wreaked havoc for its tourism industry and other sectors,” added the Indian digital news outlet report.
“Bangladesh is also among the 40 countries that have sent Covid relief aid to India twice as the country battles the second wave,” said ThePrint.
It also mentioned that on May 18, Dhaka handed over 2,672 boxes of various anti-viral drugs and Covid protective gears to India. Earlier, May 6, Dhaka also sent 10,000 vials of Remdesivir to New Delhi.
“Prime Minister Sheikh Hasina-led Bangladesh government has also garnered praise from arch-rival Pakistan for its growing economic prowess,” said ThePrint.
ThePrint quoted Dr Prabir De, professor at the Research and Information System for Developing Countries (RIS), who said that the main reason behind Bangladesh’s economic growth is that it continues to reap benefits from the European Union’s Generalised Scheme of Preferences (GSP) programme and other trade preferences.
“It is due to this continuous support through the EU’s GSP scheme that Dhaka has been able to earn considerable revenues from strategic exports. Besides, Bangladesh does receive a good amount of remittances as well,” De added.
“Bangladesh is the new Royal Bengal Tiger of Asia.” He continued. “They speak in one language across all spectrum and have well-structured governance.”
[The full report is available: https://theprint.in/diplomacy/covid-aid-to-india-financial-help-to-sri-lanka-bangladesh-is-showcasing-its-economic-rise/667019/?fbclid=IwAR0HCiwLY2gzp71NXOLsLFwFBB5ifakXTFg6Z40KW9L6-hYnOOqylSdePcU ]