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India markets use of INR for transactions with Sri Lanka

Published

2 years ago

2023/03/7

India is pushing for the use of Indian Rupees (INR) for economic transactions between India and Sri Lanka.

The High Commission of India recently organised a discussion on the use of INR for economic transactions between India and Sri Lanka. Representatives from the Bank of Ceylon, State Bank of India and the Indian Bank shared their experiences and informed the audience that they had started carrying out INR-denominated trade transactions through respective Vostro/Nostro accounts after the creation of enabling framework by the Reserve Bank of India (RBI) and the Central Bank of Sri Lanka (CBSL) in 2022, according to an IHC press release.

The participating banks also outlined the benefits of settlements denominated in INR which includes shorter timelines, lower exchange costs and easier availability of trade credits, etc. The beneficial impact of this initiative on the tourism and hospitality industry was also highlighted including its role in helping increase collections which could be utilised by other sectors.

A team from RBI joined the discussion in the online format and indicated the possibility of settlement of current account transactions in goods as well as services in INR apart from the option of undertaking permitted capital account transactions. The RBI team referred to the close cooperation with CBSL and RBI’s commitment to further facilitate this process.

State Minister of Finance Shehan Semasinghe appreciated the close economic relationship between the two countries and the financial and humanitarian support extended by India over the past year including the strong financing assurances provided by India in context of the IMF support programme for Sri Lanka. Hon. Governor of CBSL, Dr. P. Nandalal Weerasinghe mentioned the strong desire among Indian and Sri Lankan business communities for enabling trade settlements in INR. He called for expanding this facility over a period of time to utilize it for the full range of capital and current account transactions. Governor CBSL also appreciated the wide-ranging participation from stakeholders in Sri Lanka and India which included more than 300 attendees in the physical format apart from those that joined online.

High Commissioner of India to Sri Lanka Gopal Baglay highlighted the positive impact that the initiative will have in the joint efforts for building a stronger and closer economic partnership between the two countries through trade and investment led measures. He also mentioned the ongoing cooperation between India and Sri Lanka in the area of digital payments and the potential it possesses for enhancing the economic relationship between the two countries.

Participants from Sri Lanka included officials from CBSL, Government of Sri Lanka, representatives from business and industry including tourism sector, media personnel, bank representatives, and economists. Participants from India that connected in the online format included representatives from RBI, Government of India, trade and industry associations and export promotion councils.

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Our government has reaffirmed its commitment to breaking barriers that limit women’s full participation in the economy, recognizing their vital role in national development. – Dr. Harini Amarasuriya

Published

6 hours ago

2025/03/15

Priyan

“Women play a pivotal role in Sri Lanka’s economic and social development. Yet, despite their immense contribution, structural barriers continue to limit their full participation in the economy. Our government is committed to breaking these barriers by fostering an inclusive economic environment where women can thrive as business leaders, entrepreneurs, and exporters.” Said Prime Minister Dr. Harini Amarasuriya

The Prime Minister made this statement while addressing the launching the She Trades Sri Lanka Hub funded by the UK’s She Trades Commonwealth+ Program held at Galle face Hotel in Colombo on March 14 organized by the Sri Lanka Export Development Board (EDB) and the International Trade Centre (ITC).

While addressing the audience, the Prime minister stated, the government has reaffirmed its commitment to breaking barriers that limit women’s full participation in the economy, recognizing their vital role in national development. Emphasizing gender-inclusive policies, financial inclusion, and access to global markets, authorities are prioritizing support for women-led businesses in key sectors such as ICT, agribusiness, and engineering.

A new initiative will establish 200 women-led cooperatives, fostering supportive environments for female entrepreneurs. Additionally, efforts to strengthen childcare, elderly care, and disability services aim to reduce the burdens that limit women’s economic participation.

A dedicated platform has been launched to provide women entrepreneurs with knowledge, networking, and international trade opportunities. Strengthening public-private partnerships and expanding global market access are key strategies to create an inclusive and sustainable trade ecosystem.

By equipping women with the necessary skills, financial resources, and digital trade access, the government aims to ensure that women entrepreneurs become key drivers of economic growth, aligning with broader policies for inclusive and sustainable development.

The event was attended by Ms. Pamela Coke-Hamilton, Executive Director of the International Trade Center, His Excellency Andrew Patrick, British High Commissioner to Sri Lanka, Officials from the International Trade Center and the British High Commission in Sri Lanka, Chairman of the Export Development Board Mr. Mangala Wijesinghe and Officials from Export Development Board and International Trade Centre and woman Entrepreneurs.

(Prime Minister’s Media Division)

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Batalanda Commission report tabled … finally

Published

11 hours ago

2025/03/15

Thilina Walpola

by Saman Indrajith

TheBatalanda Presidential Co-mission report was tabled in Parliament yesterday (14) by the Leader of the House and Transport Minister, Bimal Ratnayake.

Minister Ratnayake announced that the government has decided to forward the report to the Attorney General for legal advice. Additionally, a Presidential Committee will be appointed to provide guidance and recommendations on how to proceed with the findings of the report.

Ratnayake said that the Cabinet-of-Ministers, along with President Anura Kumara Dissanayake, has made a policy decision to take necessary action in response to the report. He reassured the public that steps are being taken to ensure that such a dark chapter in the country’s history is never repeated.

Minister Ratnayake said that a two-day debate on the Batalanda Commission report will be scheduled in Parliament at an appropriate time, allowing for a detailed discussion on the report’s findings and recommendations.

The report, which will be printed in all three official languages—Sinhala, Tamil, and English—will be made available to the public in the near future. Ratnayake confirmed that printed copies would be provided to Members of Parliament, as well as the general public, for review.

The Leader of the House revealed that there are 28 evidence volumes associated with the Commission’s work, which will be submitted to Parliament at a later date for further scrutiny.

Ratnayake said that as the entire country is concerned about the findings of the Batalanda Commission, the government’s commitment to addressing the issues raised, and preventing future atrocities, stands clear. The next steps, including legal action and policy recommendations, will be shaped by expert advice and informed parliamentary discussions, he said.

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COPE finds fake documents submitted for emergency procurement of drugs

Published

11 hours ago

2025/03/15

Thilina Walpola

The Parliamentary watchdog Committee on Public Enterprises (COPE) has found that there were fake documents regarding the importing of medicines under the emergency procurement system in 2022 and 2023.

This was revealed during a COPE meeting held at Parliament probing the transactions of the National Medicine Regulatory Authority (NMRA).

NMRA CEO Saveen Semage told the Committee that several fake documents have been found due to the lack of registration of medicines.

Stating that six such fake documents were found last year alone, Saveen Semage said he had recorded statements regarding each of the documents with the Financial Crimes Investigation Division.

He revealed that, however, no investigations have been conducted yet into the incidents.

“We have documents with confessions from a woman accepting that fake documents had been made. However, a statement has not even been recorded from that woman yet,” he said.

Meanwhile, COPE member MP Asitha Niroshana Egoda Vithana also revealed that the highest number of waive-off registrations (WOR) for medicines had been obtained in 2022 and 2023.

He said 656 waive-off registrations (WOR) had been obtained in 2022 and 261 in 2023, adding that this proves that discrepancies have taken place during the emergency procurement of medicines during these periods.

Furthermore, Deputy Director General of the Medical Supplies Division of the Health Ministry, Dr. G. Wijesuriya, said discussions are underway on allowing the State Pharmaceutical Corporation (SPC) to directly import essential medicines.He pointed out that it was essential to take a policy decision in this regard as a solution to mitigate such discrepancies.