BIZ
CBSL clarifies on use of Indian Rupee
The Central Bank of Sri Lanka (CBSL) has clarified certain misrepresentations of facts currently circulating in the public domain on Indian Rupee (INR).
Noting that the authorisation of INR as a designated currency does not make INR a legal tender in Sri Lanka for domestic payments/settlements, the Central Bank of Sri Lanka (CBSL) states that any transaction executed between or among residents in Sri Lanka shall be in LKR, being the legal tender in Sri Lanka.
“The main purpose of authorising foreign currencies as designated foreign currencies is to promote trade and investment relations between the two countries. Further, it would reduce the additional transaction costs associated with dual conversion and will support promoting trade transactions through the formal banking channel. The legal tender in Sri Lanka for domestic payments and settlements will remain as Sri Lanka Rupees (LKR),” the CBSL statement adds.
The full statement issued by the CBSL in this regard is as follows :
