The High Commission of India in Sri Lanka organised a discussion on INR-LKR trade settlement in Colombo on Tuesday, focusing on strengthening bilateral economic ties. The event highlighted key aspects of cross-border trade in local currencies, particularly in light of the recent liberalization of the Foreign Exchange Management Act (FEMA) guidelines by the Reserve Bank of India (RBI). These updated regulations, issued last month, aim to facilitate smoother transactions between Indian and Sri Lankan businesses.
Dr. Aditya Gaiha, Chief General Manager of RBI, provided insights into India’s evolving policy framework. The discussion also saw the participation of the Governor of the Central Bank of Sri Lanka, Dr. Nandalal Weerasinghe, and India’s High Commissioner to Sri Lanka, Santosh Jha.
The initiative reflects growing efforts by both nations to enhance trade cooperation, reduce dependence on third-party currencies, and promote economic stability in the region.