The Monetary Board of the Central Bank of Sri Lanka had officially announced last Friday that the Indian Rupee has been designated by the Central Bank as the transaction currency for international transactions.
Exporters and importers in Sri Lanka can carry out their foreign exchange operations using Indian rupees in official banks.
Exports and imports are seen to be restricted due to high demand for dollars, bounces and foreign currencies for exchange and lack of reserves of these currencies in banks.
Trade with India is particularly affected by this. It is reported that the Central Bank is taking this action to rectify this.
The advantage that the Tamil side is going to achieve
Therefore, Surendran, the media spokesperson of the Tamil Eelam Liberation Movement, who commented on this, said, “This is a way for the Tamil side to easily engage in business activities in Tamil Nadu and India.
At the same time, Tamil people should take advantage of this as a boon to export and export everything from medical supplies to essential needs, food, clothing, and establish commercial agreements.
India is a huge market that is geographically close to us. International countries and companies use this market facility.
We should try to make full use of it. Our society should treat this as an opportunity to expand trade investments and activities and enrich our economic status as a path for trade, investment, production, export and import”, he further mentioned.
Other currencies
It is worth noting that some currencies including Australian dollar, Canadian dollar and Euro have been designated as transaction currency for international transactions last Friday.
