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World News | Sri Lanka’s use of Indian rupee to ease currency crisis will strengthen bilateral ties with India

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colombo [Sri Lanka], March 7 (ANI): Affected by the economic crisis, Sri Lanka has started using the Indian rupee (INR) for economic transactions with India. According to Mawrata News, the move will not only ease Sri Lanka’s currency crisis but also improve its bilateral relations with India.

Bilateral relations between India and Sri Lanka are at their peak, Deputy High Commissioner of India to Sri Lanka Vinod K Jacod said while addressing the opening ceremony of the Medicare 2023 healthcare exhibition in Colombo on March 3, 2023. He cites strong human connection as the main driver. From March 2, 2023, the Indian rupee (INR) will be used for business transactions between India and Sri Lanka, according to discussions between the Indian and Sri Lankan high commissions.

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After the Reserve Bank of India (RBI) and the Central Bank of Sri Lanka (CBSL) create a support framework by 2022, banks from the Bank of Ceylon, State Bank of India and Bank of India shared their experiences and informed the Sri Lankan website Mawrata News. Listeners They have started doing INR denominated trade transactions through their respective Vostro/Nostro accounts.

On March 2, 2023, the Indian High Commission organized a discussion on the use of the Indian Rupee (INR) in trade between India and Sri Lanka. Participating banks list the advantages of settling in Indian rupees, such as faster turnaround time, cheaper exchange rates, easier access to trade credit, etc. The positive impact of the scheme on the tourism and hospitality industry, including its contribution to improved collections, which could be used by other industries, was also noted.

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Participating banks also discussed the benefits of settling in Indian rupees, including factors such as faster timescales, cheaper exchange rates and easier access to trade credit. The beneficial impact of the initiative on the tourism and hospitality industry is also highlighted, as is its contribution to increasing collections that other industries may draw upon.

Bilateral relations between India and Sri Lanka are at their peak, the Deputy High Commissioner said, focusing on five key developments that are at the heart of a strong bilateral relationship, read a report by Mawrata News.

Despite occasional tensions and disagreements, especially over maritime border disputes, India and Sri Lanka have signed several bilateral agreements to strengthen their relationship, including trade agreements, cultural exchange initiatives and defense cooperation. The two countries are also at odds over China’s expanding influence in the region.

In recent years, India and Sri Lanka have continued to hold high-level visits and meetings, and signed several agreements to strengthen the economic and security relations between the two countries. However, diplomatic relations between the two countries may change based on various factors such as geopolitical changes, leadership changes and other international developments.

The diplomat also pointed out that, in addition, during the Covid-19 period, there has been substantial support through the iconic Suwaseriya 1990 ambulance, and medical supplies have been delivered according to specific requirements of Kandy, Hambantota and Jaffna hospitals. The people and government of India provided this support during the Vaccine Maitri and expedited the issuance of medical visas as soon as the Sri Lankan government lifted travel restrictions.

He recalled that Sri Lanka had asked the Indian and Sri Lankan governments for $4 billion in economic, financial and humanitarian support in 2022.

In a show of solidarity, India has supported Sri Lanka at the G20 summit and invited President Ranil Wickremesinghe to attend the Global Southern Voices Conference in January 2023.

India has been instrumental in helping share intelligence information exposing a growing Islamic militant network on the island. Although the Easter attack may have been avoided, India notified Sri Lanka.

India is right to express alarm at China’s growing influence in Sri Lanka. India believes China’s expanding influence in Sri Lanka, a strategically important Indian Ocean country, could pose a threat to national security.

India has established a cultural center in Jaffna and is preparing to launch a ferry service between Sri Lanka and South India. The opening of Parali International Airport has also prompted tourists from both sides to use its land and air services at the same time.

India has been working to strengthen ties with Sri Lanka in response to China’s growing influence in Sri Lanka, providing aid for economic growth and security cooperation. According to Mawrata News, in order to counter China’s influence in the Indian Ocean, India is also trying to cooperate with other countries in the region, such as Japan and Australia. (Arnie)

(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)

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