The Reserve Bank of India has signed a 400 million US Dollars currency swap agreement with the Central Bank of Sri Lanka. In a statement issued from Mumbai today, RBI said that the agreement will allow the Central Bank of Sri Lanka to make withdrawals of US Dollar or Euro in multiple tranches up to a maximum of USD 400 million or its equivalent. The agreement will be valid for a period of three years. RBI has said that the agreement will further economic co-operation between the two countries and also bring in more financial stability in the region. The Central bank also informed that the swap arrangement is intended to provide a backstop line of funding for the SAARC member countries to meet any balance of payments and liquidity crises till long-term arrangements are made.