New Delhi, June 17 (APAC Media): India and Sri Lanka have discussed expanding trade settlement in local currencies.
The move aims to lower transaction costs and reduce dependence on the US dollar.
Indian High Commissioner Santosh Jha said local currency settlement can make trade more efficient. It can also protect bilateral trade from currency fluctuations.
Happy to note the encouraging discussions at the event ‘Rupee to Rupee: Strengthening the India-Sri Lanka Commercial Corridor’ organised by @IndiainSL today.
Governor @CBSL Dr Nandalal Weerasinghe joined the event. Senior representatives from leading Indian Banks @TheOfficialSBI… pic.twitter.com/LHE7jH2yQR
— Santosh Jha (@santjha) June 15, 2026
Speaking at a round-table discussion titled ‘Rupee to Rupee: Strengthening the India-Sri Lanka Commercial Corridor’, Indian High Commissioner Santosh Jha said, “Local currency settlement would also help Sri Lanka conserve its scarce foreign exchange reserves. This would allow the country to preserve dollar reserves for essential needs while enabling smoother trade flows between the two economies.”
The event, organised by the Indian High Commission in Colombo, brought together officials, bankers, business leaders, exporters and importers from both countries.
They discussed ways to strengthen trade and economic ties through greater use of local currencies.
Representatives from the State Bank of India and Indian Bank made presentations on the practical aspects of trade settlements in Indian rupees and Sri Lankan rupees.
They also explained the banking facilities available and recent guidelines allowing Indian rupee-denominated loans to be routed through authorised banks in Sri Lanka.
Participants noted that the local currency settlement mechanism could make cross-border trade easier, reduce transaction costs and improve financial flexibility.
They also stressed the need for greater awareness, stronger banking ties and wider participation from the private sector to fully realise its benefits.
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