Sri Lanka willing to enhance bilateral trade with India in INR
Sri Lanka's High Commissioner Milinda Moragoda met India's Finance Minister Nirmala Sitharaman during which he discussed steps to attract Indian investments to his country
New Delhi: Sri Lanka will soon settle cross-border trade with India in Indian rupee. The island nation feels that trading in INR will also help increase the inflow of Indian tourist.
Sri Lanka’s High Commissioner Milinda Moragoda met India’s Finance Minister Nirmala Sitharaman during which he discussed steps to attract Indian investments to his country.
Moragoda and Sitharaman also talked about the way forward in bilateral economic cooperation.
Sri Lanka to settle trade in Indian rupee
During the meeting, Moragoda proposed enhancing bilateral trade particularly through settlement in India rupees and increasing the flow of Indian tourists to Sri Lanka, the Sri Lankan high commission said in a statement.
The finance minister and the high commissioner agreed that these measures would help in recovery of Sri Lanka’s economy.
Also Read: Rupee marches on: Sri Lanka’s Seylan Bank opens INR-denominated Nostro account in Indian Bank
The meeting comes following the $3 billion International Monetary Fund’s (IMF) approval to a bailout package for Sri Lanka.
Sri Lanka thanks India
Moragoda thanked Prime Minister Narendra Modi-led Indian government for its role in the realisation of IMF’s Extended Fund Facility (EFF) arrangement for Sri Lanka.
For the unversed, India was among the first bilateral creditors to Sri Lanka, extending support for the bailout.
The EEF arrangement that has been approved by on Monday will enable Sri Lanka to access financing of up to $7 billion from IMF, international financial institutions and multilateral organisations.
Don’t Miss: ‘Progressive’: Sri Lanka’s $3 billion loan agreement will protect the poorest, says IMF
The meeting between Moragoda and Sitharaman on Tuesday was the latest in a series since November 2021 that focused on Indian economic cooperation and assistance to Sri Lanka in the context to the ongoing economic crisis.
Last year, India provided aid worth nearly $4 billion, including lines of credit to help its neighbour, Sri Lanka, purchase food, fuel and medicines and deferred payment of loans.
Read This: Sri Lanka bailout linked to tackling corruption, spells out IMF
The Sri Lanka’s High Commissioner also thanked Sitharaman for her personal involvement in taking up Colombo’s case with bilateral development partners and multilateral financial agencies, including the IMF.
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