Indian govt allows Lankans to hold $10,000 worth of rupee in cash

29 November 2022 11:40 am - 10 - {{hitsCtrl.values.hits}}

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Sri Lankans can now hold $10,000 worth of the Indian rupee (INR) in a physical form, though the INR would not be legal tender in Sri Lanka, after India approved a Sri Lankan request to designate the INR as the foreign currency.

This will provide the Sri Lanka much needed liquidity support to help it tide over its economic crisis amid inadequate dollar liquidity.

The decision is also in accordance with the Indian government’s efforts to popularize the Indian Rupee among Asian nations and reduce dollar dependence.

Sri Lankan residents will now be able to convert the INR into another currency and to enable this, Sri Lankan banks must sign an agreement with an Indian bank to open "INR nostro accounts" which means the accounts that banks hold in a foreign currency in another bank.

Another important development is that offshore banking units (OBU) of Lankan banks have been permitted to accept savings, time and demand deposits from non-residents.

According to the media reports, all current account transactions including exports, imports, and remittances can be undertaken between Lankan residents and non-residents. Transactions between Sri Lankans can only be done through banking channels and only for permitted activities, bankers said. While this arrangement was approved by India a few months ago, the Central Bank of Sri Lanka was yet to notify the rupee as a designated foreign currency.

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Comments - 10

Nilmini Welivita Tuesday, 29 November 2022 01:04 PM

The Indian government should have a stronger say in SL politics as well. It is good for both countries.

Punchi Tuesday, 29 November 2022 01:28 PM

This is possibly the beginning of enmeshing our two economies together for eventual incorporation of an impoverished Buddha blessed beggar paradise into the Indian Union. What is the Sangas take on this union by stealth

Allen Selwyn Tuesday, 29 November 2022 02:50 PM

The Indians can see that the SLRs has no value. The Indians are being proactive to help the locals to protect their savings before it becomes messy with a collapsing SLRs. The Indians are thinking ahead, the sarong johnnies in parliament are twiddling their thumbs.

Proudly IndiAn Tuesday, 29 November 2022 04:42 PM

So.. seems like no one throwing mud at indians since this news is beneficial for you. Otherwise you would be calling India as invasive or parasite.. right ?!

Dinesh Withanage Tuesday, 29 November 2022 06:43 PM

Seems to be a healthy sign in the wake of dollar dominant world . Let us strive to strengthen the INR and there by let us strengthen hands of our regional super power and try to create mult polar power houses

Fred Wednesday, 30 November 2022 02:20 AM

The politicians are smarter than you think.So far they are winning

Lumbini Wednesday, 30 November 2022 05:13 AM

Who wants Indian currency? It is not accepted as a foreign currency in many countries.

Krishna Wednesday, 30 November 2022 05:22 PM

Russia trades with India in INR. Not just SL.. India is popularising Rupee in many countries.. After USD, INR will be the popularly accepted currency around the world in a decade.

Export of inflation and population explosion Thursday, 01 December 2022 12:45 AM

Ruse for export of Inflation and population explosion of India by INR. From 1960 to 2021 the population of India increased from 450.55 million to 1.39 billion people. This is a growth by 209.3 percent in 61 years. The highest increase in India was recorded in 1974 with 2.36%.Illiteracy prevalent in major parts of India make people believe that 'children are god's blessings' hence making them against the concept of 'family planning'.

Common Man Thursday, 01 December 2022 05:44 PM

No point in maintaining, such a huge government and CBSL from hard-earned tax money of the public. we just need a State governer from India to rule their state of Sri Lanka.

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Indian govt allows Lankans to hold $10,000 worth of rupee in cash

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