Roundtable on ‘INR-LKR Trade Settlement’

Thursday, 27 February 2025 09:20 - - {{hitsCtrl.values.hits}}

Reserve Bank of India CGM Dr. Aditya Gaiha

The Indian High Commission on Tuesday held a Roundtable titled ‘INR-LKR Trade Settlement: Strengthening Bilateral Economic Ties’ in Colombo.

The event brought together key stakeholders, including representatives from the Government of Sri Lanka, Sri Lankan and Indian banks, as well as members of various trade chambers, the media, and think tanks. Indian High Commissioner Santosh Jha and Central Bank of Sri Lanka (CBSL) Governor Dr. P. Nandalal Weerasinghe graced the occasion.

The event commenced with welcome remarks delivered by High Commissioner Jha and was followed by a detailed presentation by Reserve Bank of India (RBI) Chief General Manager Dr. Aditya Gaiha on INR internationalisation and the INR-LKR trade settlement. He also highlighted key policies of the RBI which permit investments in INR in Sri Lanka. He further elaborated on RBI’s recent amendments to the Foreign Exchange Management Act (FEMA), aimed at enhancing the use of INR-LKR in cross-border transactions.

CBSL Governor Dr. Weerasinghe provided valuable insights on the INR-LKR trade settlement framework. He underscored the importance of the mechanism and encouraged banks to engage with policymakers and Central Banks in both countries on streamlining the mechanism.

This initiative aligns with the commitment reaffirmed at the highest levels of leadership during the recent visit of President Anura Kumara Dissanayake to India, where he met with Prime Minister Narendra Modi. Among the key outcomes of their discussions was a renewed focus on enhancing INR-LKR trade settlements to deepen trade and investment ties between the two nations.

-Pix by Upul Abayasekara