The nation has kicked off talks with ratings agencies to lay the groundwork for a return to international debt markets
Bangladesh Bank directors took the decision in a meeting on Sunday, keeping the conditions for the loan unchanged, said the central bank’s spokesman Serajul Islam.
Bangladesh agreed the deal in May 2021 – its first loan to another country. Sri Lanka was supposed to repay within three months, but the term was extended several times at Sri Lanka’s request as the country’s economic crisis began to deepen.
Hit hard by the pandemic, rising oil prices and populist tax cuts by the government, the South Asian island's economy is in crisis now, with usable foreign reserves down to $50 million.