https://sputniknews.in/20230109/india-sri-lanka-to-launch-trade-in-rupees-amid-deepening-ties-417595.html
India, Sri Lanka to Launch Trade in Rupees Amid Deepening Ties
India, Sri Lanka to Launch Trade in Rupees Amid Deepening Ties
Sputnik India
The Island nation of 22 million people are facing its worst financial crisis in over 70 years, triggered by a severe shortage of foreign exchange.
2023-01-09T12:29+0530
2023-01-09T12:29+0530
2023-01-09T12:29+0530
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The Reserve Bank of India (RBI) has granted regulatory approval to Indian Bank to hold special rupee vostro accounts for three banks in Sri Lanka. These accounts, which are expected to be activated within a week, will provide a much-needed source of foreign funds to the struggling Sri Lankan economy.In an effort to alleviate its foreign exchange crunch, Colombo has also been in discussions with Russia to trade in rupees. This would enable the cash-strapped economy to import energy and fertilizer.Meanwhile, India has also commenced work on a rail track, connecting the northern city of Jaffna to Omanthai. The track is being upgraded with funding from an Indian credit line, and will be rehabilitated by the well-known Indian public sector company Ircon.In recent weeks, India has made efforts to strengthen its economic ties with Sri Lanka by re-establishing air connectivity between Jaffna and Chennai, as well as ferry links between northern Sri Lanka and southern ports in India.In addition, New Delhi has extended a financial package worth around $4 billion to Sri Lanka, which is currently facing its worst financial crisis in over 70 years due to a shortage of foreign exchange that has left the country struggling to pay for essential resources like fuel, food, and medicine.This crisis led to the ouster of the democratically elected government of Gotabaya Rajapaksa.
https://sputniknews.in/20230106/indian-fm-jaishankar-to-visit-sri-lanka-to-deepen-trade-defense-ties---report-400979.html
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economic crisis in sri lanka, indian foreign minister jaishankar to visit sri lanka, how much money india invested in sri lanka, foreign exhchange crisis in sri lanka, rupee based international trade payment with sri lanka, rupee vostro accounts
economic crisis in sri lanka, indian foreign minister jaishankar to visit sri lanka, how much money india invested in sri lanka, foreign exhchange crisis in sri lanka, rupee based international trade payment with sri lanka, rupee vostro accounts
India, Sri Lanka to Launch Trade in Rupees Amid Deepening Ties
Sri Lanka has faced its worst financial crisis in more than 70 years, which was triggered by a severe shortage of foreign currency.
The Reserve Bank of India (RBI) has granted regulatory approval to Indian Bank to hold special rupee vostro accounts for three banks in Sri Lanka.
These accounts, which are expected to be activated within a week, will provide a much-needed source of foreign funds to the struggling Sri Lankan economy.
In an effort to alleviate its foreign exchange crunch, Colombo has also been in discussions with Russia to trade in rupees. This would enable the
cash-strapped economy to
import energy and fertilizer.Meanwhile, India has also commenced work on a rail track, connecting the northern city of Jaffna to Omanthai. The track is being upgraded with funding from an Indian credit line, and will be rehabilitated by the well-known Indian public sector company Ircon.
“Indian engagement in the modernization of the Sri Lankan railway will enhance the mobility of goods and people. It will help pilgrims and boost economic activity,” the Indian Embassy in Sri Lanka announced on Sunday.
In recent weeks, India has made efforts to strengthen its economic ties with Sri Lanka by re-establishing air connectivity between Jaffna and Chennai, as well as ferry links between northern Sri Lanka and southern ports in India.
In addition, New Delhi has extended a financial package worth around $4 billion to Sri Lanka, which is currently facing its worst financial crisis in over 70 years due to a shortage of foreign exchange that has left the country struggling to pay for essential resources like fuel, food, and medicine.
This crisis led to the ouster of the democratically elected government of Gotabaya Rajapaksa.
