Sri Lanka is considering the possibility of allowing the use of the Indian rupee to be used in local transactions, as the island nation struggles to build its depleted foreign reserves and to emerge from last year’s unprecedented economic crisis
Sri Lankan Foreign Minister Ali Sabry said Saturday the move to allow the use of its giant neighbor's currency would enable “tourists and other people from India to directly use Indian rupees here” without going through the hassle of multiple currency conversions.
Sri Lanka imports plenty of items from India — its largest trading partner — including food, pharmaceuticals, construction materials, automobiles, fertilizers and chemicals. Trade between the two nations stood at $5.45 billion in 2021, according to official figures.
Sabry said accepting the Indian rupee would work as an advantage for Sri Lanka as the trade imbalance between the two countries is in favor of India.
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