Responding to Sri Lanka’s request, India has approved military stores worth USD 5.5 million to Sri Lanka Army on gratis basis from Indian Army’s operational stocks.

The IHC spokesperson said: “The Sri Lanka Army faced shortage of these military stores, thereby affecting its operational preparedness. The Government of India agreed to meet this urgent requirement within a month and it also agreed to transship these stores onboard Indian Naval Ship Sharda, which was specially detailed to transport these stores to Colombo on gratis basis. The handing over ceremony was attended by H.E. Santosh Jha, High Commissioner of India, Colombo, Air Vice Marshal SampathThuyacontha (Retd), Secretary Defence, Government of Sri Lanka and Lt Gen Lasantha Rodrigo, Commander of the Sri Lanka Army.”

Central Bank Governor Dr. Nandalal Weerasinghe on Monday (15) outlined the recent policy measures undertaken to strengthen the financial framework supporting INR-LKR transactions and emphasized the need to strengthen trade and investment linkages between both countries.

Dr. Weerasinghe said so in his keynote opening remarks at a roundtable on “Rupee to Rupee Strengthening the India-Sri Lanka Commercial Corridor” held in Colombo.

The High Commission of India in Sri Lanka organised the roundtable that brought together senior representatives from government institutions, banking and financial sector organisations, industry leaders, importers, exporters, and business stakeholders from both countries to discuss opportunities for deepening India-Sri Lanka economic and commercial engagement through enhanced use of local currencies.

The Roundtable commenced with welcome remarks by Indian High Commissioner to Sri Lanka Santosh Jha, who highlighted the growing economic partnership between India and Sri Lanka and underscored the importance of local currency settlement mechanisms in facilitating bilateral trade, investment and financial connectivity.

Presentations were subsequently made by State Bank of India and Indian Bank, focusing on the operational aspects of INR-LKR trade settlements, available banking solutions, and recent policy guidelines permitting the disbursement of Indian Rupee-denominated loans through Authorised Dealer Banks in Sri Lanka.

A dedicated industry panel brought together leading voices from Sri Lanka’s banking and corporate sectors, including representatives from Commercial Bank, Seylan Bank, Standard Chartered Bank, AMW, DHT Cement, Lanka Spin Pvt. Ltd., Nithya Paper and Boards Lanka Pvt. Ltd.

Representatives shared practical experiences, benefits, challenges and opportunities related to the use of local currencies in trade and investment transactions, and explored pathways for further strengthening the commercial corridor between India and Sri Lanka.

Discussions during the Roundtable highlighted the growing acceptance of the INR-LKR settlement mechanism and its potential to facilitate smoother cross-border transactions, improve liquidity management, lower transaction costs, and enhance resilience in bilateral trade. Participants also emphasized the need for continued awareness-building, stronger banking linkages, and greater private sector participation to unlock the full potential of local currency settlements.

The UK’s Trade Envoy to Sri Lanka, Lord Hannett of Everton, is here for high level talks with the government and business leaders. The visit takes place from today to 19 June 2026, his second visit in a span of one year.

The text of the BHC statement: “Lord Hannett’s programme is to feature several high-level engagements with government and business stakeholders. The visit underlines the United Kingdom’s commitment to strengthening the UK-Sri Lanka trade and investment relationship, supporting a more transparent and predictable business environment, and promoting partnerships that contribute to sustainable economic growth in both countries.

During his time here, Lord Hannett will hold discussions with the Minister of Industries and Entrepreneurship Development Sunil Handunetti and Deputy Minister Chathuranga Abeysinghe, and senior officials from the Export Development Board and Department of Commerce. These meetings aim to discuss Sri Lanka’s reform agenda, market access for UK business, and the improved opportunities that the UK’s Developing Countries Trade Scheme offers for Sri Lanka’s export growth.

He will engage with a range of senior business leaders including the Council for Business with Britain to exchange views on investment confidence and commercial opportunities. This includes visiting a range of UK businesses and institutions in market – HSBC, Unilever, Coats Thread Exports, the Land Rover showroom and service centre operated by Access Motors, Ryse Energy, and The Body Shop. He will also meet representatives from the apparel sector, Sri Lankan SME exporters, and young entrepreneurs. He will engage with the higher education sector, focusing on the growing role of UK institutions in supporting Sri Lanka’s skills, employability, and entrepreneurship.

The engagements will reflect the breadth of UK commercial interests in Sri Lanka and highlight the contribution of UK brands and investors to jobs, skills, innovation and economic growth in Sri Lanka. The UK also continues to encourage Sri Lanka in continuing to improve the ease of doing business, especially ensuring policy stability and regulatory transparency that will help unlock further trade and investment.”