Indian Rupees added to approved designated foreign currency for offshore banking business

The Indian Rupees have been deemed a ‘Designated Foreign Currency’ under the Banking Off-Shore Banking Business Scheme order. The move comes replacing the previous order dated 27 October 2021.

Given the large trade flows between Sri Lanka and India and movements by local entities to invoice transactions directly in Indian Rupees there is much scope for increased financial deepening between the two countries facilitating large capital flows.

The other designated foreign currency for Sri Lanka are the Australian Dollar, Canadian Dollar, Chinese Renminbi, Danish Kroner, Euro, Hongkong Dollar, Japanese Yen, New Zealand Dollar, Norwegian Kroner, Pound Sterling, Singapore Dollar, Swedish Kroner, Swiss Franc, Thai Baht, and United States Dollar.