Colombo: Sri Lanka is not averse to using the Indian rupee as a common currency, President Gotabaya Rajapaksa said. Rajapaksa made the remarks during a meeting with Indian High Commissioner to Sri Lanka, Gopal Baglay, at the President’s House in Colombo.
“The President said that Sri Lanka is not averse to using the Indian rupee as a common currency with India,” a statement from the President’s Office said.
The statement added that Rajapaksa and Baglay discussed the current economic situation in Sri Lanka and the ongoing efforts to address it.
They also discussed the possibility of further strengthening bilateral trade and economic ties between the two countries.
The use of a common currency between Sri Lanka and India has been mooted for several years, but there has been no concrete progress on the matter.
However, the recent economic crisis in Sri Lanka has made the idea of a common currency more attractive, as it would help to stabilize the Sri Lankan rupee and make it easier for businesses to trade with India.
India has already provided billions of dollars in financial assistance to Sri Lanka, and it is likely to continue to support the country’s economy in the coming months.
The use of a common currency would be a further sign of the close economic ties between Sri Lanka and India. It would also make it easier for people to travel and work between the two countries, which would boost tourism and investment. The use of a common currency is not without its challenges, however.
One challenge is that it would require the two countries to coordinate their monetary policies. Another challenge is that it could lead to inflation in Sri Lanka, as the Indian rupee is more stable than the Sri Lankan rupee.
Despite these challenges, the use of a common currency between Sri Lanka and India could have a number of benefits for both countries. It would help to stabilize the Sri Lankan rupee, make it easier for businesses to trade with India, and boost tourism and investment.