Colombo: Sri Lankans can now hold Indian rupees equivalent to $10,000. India’s action is in consideration of Sri Lanka’s application as part of the notification of the Indian rupee as a foreign currency. In the current economic crisis, this will help Sri Lanka to solve the problem of dollar unavailability. The approval is part of the Indian government’s policy to reduce dependence on the dollar and increase the influence of the rupee in the Asian region.
Lankans can now convert Indian Rupees to any currency. For this, Sri Lankan banks should enter into agreements with Indian banks to open Nostro accounts (accounts for managing foreign currency).
Another feature is that offshore units of Sri Lankan banks can accept deposits from non-residents. Sri Lankan citizens and foreigners will now be able to carry out current account transactions including export and import transactions.
Content Highlight: Central Government permits Sri Lanka to hold 10k worth of Rupees in cash