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CB: Indian rupee not ‘legal tender’ in SL

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The Central Bank of Sri Lanka yesterday said that the authorisation of the Indian rupee as a designated currency did not make it a ‘legal tender’ in Sri Lanka for domestic payments/settlements.

 Issuing a clarification, titled Misinformation Relating to Indian Rupee (INR), the CBSL has said: “Any transaction executed between or among residents in Sri Lanka shall be in LKR, being the legal tender in Sri Lanka.”

 Full text of the CBSL statement: The Central Bank of Sri Lanka (CBSL) wishes to clarify certain misrepresentations of facts, currently circulating in the public domain on Indian Rupee (INR).

CBSL from time to time, authorises selected foreign currencies as designated foreign currencies with a view to facilitating international trade and cross-border banking transactions. Commencing May 1979, CBSL has occasionally recognised designated foreign currencies. Currently, the following 16 currencies have been authorised as designated foreign currencies under the provisions of the Banking Act and the Foreign Exchange Act.

List of designated foreign currencies: Australian Dollar, Canadian Dollar, Chinese Renminbi, Danish Kroner, Euro, Hongkong Dollar, Indian Rupee, Japanese Yen, New Zealand Dollar, Norwegian Kroner, Pound Sterling, Singapore Dollar, Swedish Kroner, Swiss Franc, Thai Baht and United States Dollar.

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).

Trade between Sri Lanka and India has grown rapidly after the Indo-Sri Lanka Free Trade Agreement which came into force in March 2000. In view of the expanding economic activities between India and Sri Lanka, particularly in promoting existing trade relations between the two countries, on several occasions CBSL has communicated to the Reserve Bank of India (RBI), the Monetary Authority of India, its willingness to authorise INR as a designated foreign currency in Sri Lanka. Accordingly, in August 2022, with the concurrence of RBI, INR was authorised by CBSL as a designated foreign currency in Sri Lanka. However, the use of INR as a designated foreign currency in Sri Lanka is subject to any restrictions imposed by RBI.

Authorising INR as a designated foreign currency would bring many advantages to Sri Lanka including the facilitation of smooth banking transactions relating to INR especially for small-scale traders, encouraging traders to use banking channels for trade transactions over informal channels, reducing additional transaction costs associated with the dual conversion of INR into USD and thereafter into LKR and vice-versa. Moreover, since India remains a large source country for tourism in Sri Lanka, authorising INR as a designated foreign currency for banking transactions would add more convenience to Indian tourists.

The authorisation of INR as a designated currency does not make INR a legal tender in Sri Lanka for domestic payments/settlements. Any transaction executed between or among residents in Sri Lanka shall be in LKR, being the legal tender in Sri Lanka.

Accordingly, CBSL requests the public not to be misled by the misrepresentation of facts circulating in the public domain on INR.



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Ranawaka accuses govt. of using JVP cadres and police to suppress political opponents

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… reminds AKD led over 560 protests during Yahapalanaya

Former Yahapalana Minister and United Republican Front (URF) leader Patali Champika Ranawaka yesterday (19) alleged that the JVP, which carried out over 560 protests during the 2015-2019 period, was now bent on preventing the Opposition from exercising its democratic right to protest.

Recalling the declaration made by the JVP at the height of the violent protest campaign in July 2022 that it would set the Parliament ablaze, the former parliamentarian lashed out at the JVP-led administration for using the police excessively to curb political opposition. Ranawaka said this while addressing the media at the former President Ranil Wickremesinghe’s Flower Road Office .

Commenting on the protest campaign launched by the Maha Sangha, demanding presidential pardon for General Secretary of the Bodu Bala Sena (BBS) Ven. Galagotaatte Gnanasara, the ex-Colombo District lawmaker alleged that President Anura Kumara Dissanayake used a combination of police, investigative units and JVP cadres to break up the monks’ protest. The government went to the extent of compelling the JVP/NPP-run Colombo Municipal Council (CMC) to deprive the peaceful protesters of basic toilet facilities, he alleged.

The government’s actions proved that only those with prior approval from JVP Pelawatte headquarters could launch protests in Colombo, its suburbs or in the provinces. The police have become a political tool in the hands of the JVP, the ex-Minister said. (SF)

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Six killed as speeding bulker crashes into vehicles, shop in Akurana

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By SK Samaranayake

Six people were killed and seven others injured when a speeding bulker lorry carrying cement and concrete ploughed into several vehicles and a shop on the Kandy-Jaffna A9 road at Kurugoda, Akurana, yesterday (19).

Four of the victims, two women and two men, died on the spot in the accident which occurred around 10.30 am, according to Alawathugoda Police.

Police said the bulker, travelling at high speed from the Matale direction, collided with three three-wheelers, two motorcycles and two lorries before veering off the road and crashing into a commercial establishment.

Five of the injured were rushed to the National Hospital of Kandy, where hospital sources said two remained in critical condition.

The bodies of the four victims were placed at the Akurana Hospital, where two others, who suffered minor injuries, were also receiving treatment.

The driver of the bulker was arrested by the Alawathugoda Police Traffic Division and is to be produced before court.

Investigations are being conducted under the supervision of Central Province Senior DIG Lalith Pathinayake.

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Prof. Peiris, summoned by CIABOC, appeals for Ven. Gnanasara’s release

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G.L. Peiris

By Shamindra Ferdinando

owledging that there had been an administrative lapse on the part of the President’s Office in 2019 when Maithripala Sirisena granted presidential pardon to Ven. Gnanasara Thera, Convener of Janathawadi Joint Opposition Prof. G.L. Peiris yesterday (19) urged President Anura Kumara Dissanayake to rectify whatever those shortcomings and release the General Secretary of Bodu Bala Sena.

Addressing the media at the former President Ranil Wickrekmesinghe’s Flower Road Office, Prof. Peiris emphasized that it was not fair to hold Ven. Gnanasara accountable for lapse or technical fault of others at the Presidential Secretariat during President Sirisena’s tenure.

Prof. Peiris was flanked by UNP Chairman Wajira Abeywardena and United Republican Front (URF) leader Patali Champika Ranawaka.

The fresh appeal was made on behalf of Ven. Gnanasara in the wake of President Dissanayake and JVP heavyweight Anura Kumara Dissanayake ruling out fresh presidential pardon for the monk. Minister Lal Kantha declared that the government couldn’t under any circumstances meet the continuing monks’ protest demanding Ven. Gnanasara’s release. President Dissanayake dismissed repeated appeals for Ven. Gnanasara’s release when he addressed the NPP really in Badulla.

Sirisena granted presidential pardon in May 2019 even before he completed a year of his six-year term of rigorous imprisonment for contempt of court during proceedings of the media personality Prageeth Ekneligoda’s 2010 January disappearance in the Homagama Magistrate’s court.

At the onset of the regular weekly briefing, Prof. Peiris said that he would report to the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) today (20) morning as requested by the commission. “The CIABOC wanted to record my statement regarding a meeting I chaired at the ministry after the conclusion of the war in 2009 pertaining to an ongoing investigation.”

Commenting further on the imprisonment of Ven. Gnanasara, the former parliamentarian said that President Sirisena intervened following a spate of requests made on behalf of BBS General Secretary by the Mahanayakes, Anunayakes and other Maha Sangha.

The Supreme Court on 10 September, 2026 rescinded the presidential pardon granted in late May 2019.

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