Allowing direct use of Indian rupee In Sri Lanka would prevent the need for multiple currency conversions for Indian tourists and businessmen.
Colombo: Day after inking a deal that allows the usage of India’s Unified Payment System (UPI) in Sri Lanka, the island nation on Saturday said it was mulling the possibility of accepting the Indian Rupee in local transactions in an attempt to facilitate Indian businessmen and tourists.
Sri Lanka Foreign Minister Ali Sabry said, Saturday, the country is considering possibility of allowing the usage of the Indian rupee for local transactions just like the dollar, euro and yen, news agency PTI reported.
Addressing a presser in Colombo on President Ranil Wickremesinghe’s recent visit to India, Sabry said: “We have considered the possibility of using the Indian rupees like we accept the dollar, euro and yen.”
Allowing direct use of Indian rupee would prevent the need for multiple currency conversions for Indian tourists and businessmen.
On Friday, India and Sri Lanka noted that the decision to designate INR as currency for trade settlements between the two countries has forged stronger and mutually-beneficial commercial linkages, and agreed to operationalise the UPI-based digital payments for further enhancing trade and transactions between businesses and common people.
The two nations signed the Network to Network Agreement between NIPL and Lanka Pay for UPI application acceptance in Sri Lanka after bilateral talks between Prime Minister Narendra Modi and President Wickremesinghe on Friday during the latter’s first visit to India since assuming office last year.
Sri Lanka became the fourth nation after France, UAE, and Singapore to partner with India on the emerging fintech and payment solutions.
Unified Payments Interface (UPI) is India’s mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly, using a Virtual Payment Address (VPA) created by the customer.
Meanwhile, asked about the MoU signed with India on the development of Trincomalee as a regional hub for industry, energy and bilateral cooperation, Sabry saw no objections coming from China.
“We are a non-aligned state, we have only signed an MoU to identify feasible projects through a joint committee. I don’t think any country would object to such open and transparent dealings,” Sabry said.
Sabry said both leaders agreed on the importance of port connectivity between the two countries.
“To reach the next level, we need investments. We discussed ways which would be mutually beneficial to both countries. The tie-ups between not only the two governments but between the private sector were emphasised,” Sabry said.
He said the possibility of Sri Lanka benefiting from the vast economic development in the South Indian region was considered. “The two leaders agreed for connectivity between the ports for this purpose”, Sabry said.
The need for port connectivity between Colombo and Trincomalee and the South Indian region was agreed between the two leaders.
He said the necessary studies on building a bridge for land connectivity or continuing with the existing ferry services would be soon undertaken. Getting an Indian university on board to help in Sri Lanka’s digitalisation was also discussed, he added.
(With PTI inputs)
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