Sri Lanka and Russia in talks to use the rupee in foreign trade

Sakshi Education

In order to facilitate international trade, Sri Lanka has agreed to utilize the Indian Rupee (INR). It occurs shortly after the Indian government announced it was looking into ways to include nations who are particularly short on dollars in the Indian rupee trade settlement process.
The Reserve Bank of India’s (RBI) clearance is required before the Indian rupee can be designated as Sri Lanka’s official foreign currency, according to the Central Bank of Sri Lanka (CBSL).
According to reports, banks in Sri Lanka have set up special accounts for trading in INR dubbed Special Vostro rupee accounts, or SVRA.
Additionally, the SAARC region’s neighbouring island country has asked RBI to support and encourage trade as well as tourism.
Sri Lanka has been dealing with a severe economic crisis and a shortage of dollars for almost a year.
The island nation will receive much-needed liquidity support if the Indian rupee is recognised as legal tender.
People in Sri Lanka can now hold USD 10,000 (Rs 8,26,823) in real form thanks to the establishment of Vostro accounts.
Additionally, Sri Lankans and Indians can transact internationally without using US dollars by using Indian rupees instead.

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