Speaking with local press at the President’s Office this afternoon, before departing for Sri Lanka, President Mohamed Nasheed revealed that the government was in discussion with the Sri Lankan government to establish a reciprocal currency or swap arrangement between both countries.
President Nasheed is visiting Sri Lanka to attend the inauguration of President Mahinda Rajapaksa for a new term in office.
In addition, the President said he will hold further discussions with the Sri Lankan government about setting up a financial arrangement between both countries.
The President revealed that both governments had been discussing such an arrangement for sometime.
He said he was confident of closing the discussions and reaching an agreement during the visit.
Furthermore, he said that, under the arrangement, the government would seek US$ 200 million line of credit from Sri Lankan Central Bank for the Maldives.
The President said the government’s aim was to have an arrangement whereby Maldivian Rufiyaa could be directly exchanged for Sri Lankan Rupees and vice versa.
He expressed hope of finalizing a framework agreement of the arrangement during his visit.
At today’s press conference, the President also gave details of programmes included in next year’s budget, which the government is scheduled to submit to the People’s Majlis next week.
He said the budget allocated for individual islands were significantly higher compared to previous years.
The President also said that development of small and medium enterprises was given a high priority in this year’s budget.
Speaking on the importance of upcoming local council election, President Nasheed highlighted the need for smooth and peaceful elections.
He urged all political parties increase the participation of their grassroots members in nominating candidates for local councils, in order to strengthen internal democracy within parties.
