News

Sri Lanka has asked to open a vostro account in Indian banks

Published

1 year ago

December 17, 2022

editor

India’s rupee trade settlement mechanism, a means of using rupees instead of dollars and other big currencies for international transactions, is attracting interest from more countries.

Tajikistan, Cuba, Luxembourg and Sudan have begun talking to India about using the mechanism, according to two sources and an official document reviewed by Reuters.

It has already been used by Russia following the imposition of sanctions on Moscow over the Ukraine war.

The Reserve Bank of India (RBI) set up the mechanism in July. The Government is looking to bring countries that are short of dollars into the mechanism, said a Government official and an industry source aware of the development. The sources declined to be named, as the matter is confidential.

The four countries have shown interest in opening special rupee accounts, called vostro accounts, but partner banks in India have not yet provided those facilities, documents showed. Opening of these accounts needs approval from the Reserve Bank of India.

Mauritius and Sri Lanka have also shown interest, and have seen their special vostro accounts approved by the RBI, documents showed.

India’s Central Bank (CB) has given approval to banks to open 12 vostro accounts for trade in rupees with Russia, according to the document.

Six other accounts, including five for trade with Sri Lanka and one for trade with Mauritius have been authorised, the same document showed.

Queries sent to the federal finance ministry, commerce ministry and RBI remained unanswered.

India continues to discuss denomination of trade in rupees with larger trading partners, including key oil suppliers Saudi Arabia and United Arab Emirates.

Details of potential rupee-dirham trade mechanism are being firmed up by the central banks of India and UAE, a second Government official said, requesting anonymity.

Talks with Saudi Arabia on a rupee-riyal trade mechanism also continue, the government official added. The UAE and Saudi Arabia are talking through ways to invest Indian rupees they earn as part of these transactions, as the gulf nation’s exports to India exceed imports from it.

“We have presented the option of investing additional rupees in Indian markets,” the official said. As part of the rules issued earlier this year, the Indian central bank has allowed for any rupee holdings to be invested in government securities.

Source – Reuters

News

Bill suspending Parate Law, passed

Published

9 hours ago

May 7, 2024

editor

The Recovery of Loans by Banks (Special Provisions) (Amendment) Bill, which was amended to facilitate legal provisions for the suspension of Parate Law until December 15, 2024, was passed in Parliament without amendments today (May 07).

This amendment introduces legal provisions for the suspension of the Parate Law until December 15, 2024.

News

Mervyn granted bail

Published

10 hours ago

May 7, 2024

editor

Colombo Additional Magistrate Tharanga Mahawatta today (May 07) ordered the release of former Minister Mervyn Silva on bail over the SLRC assault incident in 2007.

He was ordered to be released on a surety of Rs. 500,000.

Silva was accused of threatening and assaulting a former journalist of the Sri Lanka Rupavahini Corporation.

The Magistrate also ordered to immediately arrest former municipal councillor – Lal Peiris, who was named as the third suspect in the case, and produce him before the court.

The Magistrate also banned him from travelling overseas.

(Source : Lankadeepa)

News

Appeals Court rejects Wijeyadasa’s petition against interim order

Published

10 hours ago

May 7, 2024

editor

The Court of Appeal today dismissed the petition filed by Minister Wijeyadasa Rajapakshe seeking to suspend the interim injunction issued by the Colombo District Court preventing him from functioning as the Acting Chairman of the Sri Lanka Freedom Party (SLFP).

Minister of Justice Wijeyadasa Rajapakshe was appointed as the Acting Chairman of SLFP during an executive committee meeting held on April 21, by the party’s faction led by former President Maithripala Sirisena.

On April 24, the Colombo District Court issued an injunction order preventing Minister Wijeyadasa from functioning as the Acting Chairman of the SLFP.

The court has also issued an injunction order preventing MP Sarathie Dushmantha Mithrapala from functioning as the General Secretary of SLFP.

Meanwhile, the court had issued another injunction preventing the implementation of the decisions taken by the SLFP Acting General Secretary.

The Colombo District Judge issued these injunctions after considering a plaint submitted by Ministers Mahinda Amaraweera, Lasantha Alagiyawanna and Member of Parliament Duminda Dissanayake.

It was mentioned in the order that these injunctions will remain in effect until May 08, 2024.

However, Minister Rajapakshe had later filed a petition with the Court of Appeal seeking to invalidate the recent order issued by the Colombo District Court preventing him from functioning as the Acting Chairman of SLFP.

(adaderana.lk)

(This story, originally published by adaderana.lk has not been edited by SLM staff)