The Indian High Commission in Sri Lanka organized a roundtable discussion titled ‘INR-LKR Trade Settlement: Strengthening Bilateral Economic Ties’ in Colombo. The event aimed to enhance trade and investment collaboration between the two nations by promoting the use of the Indian Rupee (INR) and Sri Lankan Rupee (LKR) in cross-border transactions.
The roundtable brought together key stakeholders, including officials from the Government of Sri Lanka, representatives from Sri Lankan and Indian banks, trade chamber members, media personnel, and think tanks.
The occasion was graced by Indian High Commissioner Santosh Jha and Central Bank of Sri Lanka (CBSL) Governor Dr. P. Nandalal Weerasinghe. High Commissioner Jha delivered the welcome remarks, setting the tone for discussions on the INR-LKR trade settlement mechanism. This was followed by a detailed presentation by Reserve Bank of India (RBI) Chief General Manager Dr. Aditya Gaiha, who elaborated on INR internationalisation and policies that facilitate investments in INR in Sri Lanka. Dr. Gaiha also outlined recent amendments to the Foreign Exchange Management Act (FEMA), introduced by the RBI to encourage the use of INR in cross-border trade.
CBSL Governor Dr. Weerasinghe emphasized the significance of the INR-LKR trade settlement framework, urging banks to work closely with policymakers and central banks from both nations to streamline the process.
This initiative aligns with the commitments made at the highest levels of leadership during the recent visit of Sri Lankan President Anura Kumara Dissanayake to India, where he met with Indian Prime Minister Narendra Modi. Their discussions reinforced the importance of enhancing INR-LKR trade settlements as a crucial step toward strengthening economic ties and investment flows between the two countries.
The roundtable marks another milestone in Indo-Sri Lankan economic cooperation, with stakeholders optimistic about the potential of INR-LKR trade settlement in boosting trade and financial stability in the region.
