You are using an outdated browser. Please upgrade your browser to improve your experience and security.
Discover the secret world of unlisted shares — analyse India's top pre-IPO companies and invest before they hit the markets
A complementary check for gaps and risk.
Invest in Apple, Nvidia, Microsoft, Tesla and 9,000+ U.S. stocks & ETFs. Start from just ₹1.
India and Sri Lanka have discussed ways to enhance trade settlement in local currencies to reduce transaction costs and insulate the bilateral trade from dollar volatility.
Local currency settlement reduces transaction costs, eliminates conversion losses in both directions, and insulates bilateral trade from dollar volatility, said Santosh Jha, Indian High Commissioner.
"And for Sri Lanka specifically, it reduces pressure on scarce hard currency reserves - preserving dollars for uses where they are truly necessary, while rupee-to-rupee trade flows freely between our two economies," Jha said here at a round-table discussion on 'Rupee to Rupee: Strengthening the India-Sri Lanka Commercial Corridor' on Monday.
The event, organised by the Indian High Commission in Colombo, brought together representatives from government institutions, banking and financial sector organisations, industry leaders, importers, exporters, and business stakeholders from both countries. The participants discussed opportunities to deepen India-Sri Lanka economic and commercial engagement through enhanced use of local currencies.
"It matters enormously. Every time an Indian exporter invoices in US dollars, and every time a Sri Lankan importer pays in US dollars, both sides are carrying unnecessary currency risk, paying unnecessary conversion costs, and adding a layer of dependency on a third-country currency that neither of them issues, controls, or in some cases, finds easy to acquire," Jha said.
Representatives of the State Bank of India and the Indian Bank also shared their presentations, focusing on the operational aspects of INR-LKR trade settlements, available banking solutions, and recent policy guidelines permitting the disbursement of Indian rupee-denominated loans through authorized dealer banks in Sri Lanka.
The round table highlighted the growing acceptance of the INR-LKR settlement mechanism and its potential to facilitate smoother cross-border transactions, improve liquidity management, lower transaction costs, and enhance resilience in bilateral trade.
The discussion also emphasised the need for continued awareness-building, stronger banking linkages, and greater private sector participation to unlock the full potential of local currency settlements.
"An Indian bank's branch here in Colombo can now lend in Indian rupees to a Sri Lankan importer buying Indian goods. A Sri Lankan bank can borrow in INR to finance trade with India, without touching the dollar at all. This is not incremental reform. It is a structural shift in how regional trade finance can work," the Indian high commissioner said. PTI first published: Jun 16, 2026 06:52 pm Discover the latest Business News , Sensex , and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Sensex Today Mukesh Ambani Delhi AQI AP Municipal Election Results Apple India Revenue Donald Trump Coalfields IPO GRSE Share Price Oracle Share Price BLS Polymers Share Price
Business Markets Stocks India News City News Economy Mutual Funds Personal Finance IPO News Startups
Home Currencies Commodities Pre-Market IPO Global Market US Markets Bonds Silver MCX Price Gold MCX Price
Home Loans up to 50 Lakhs Credit Cards Lifetime Free Finance Tracker New Fixed Deposits Fixed Deposit Comparison Fixed Income
Home Performance Tracker Top Ranked Funds ETFs Mutual Fund Screener
Income Tax Calculator EMI Calculator Retirement Planning Gratuity Calculator Petrol Price in India Diesel Price in India IFSC Code
News18 Firstpost CNBC TV18 News18 Hindi Cricketnext Overdrive
About Us Contact Us Advisory Alert Advertise with Us Support Disclaimer Privacy Policy Cookie Policy Terms & Conditions Financial Terms (Glossary) Sitemap Investors
Copyright © Network18 Media & Investments Limited. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.
You are already a Moneycontrol Pro user.
Loading comments…