New Delhi - India and Sri Lanka are exploring greater use of local currencies for bilateral trade settlement, a move aimed at reducing transaction costs, minimizing currency risks and shielding trade flows from fluctuations in the US dollar.

Speaking at a round-table discussion titled “Rupee to Rupee: Strengthening the India-Sri Lanka Commercial Corridor” in Colombo, Indian High Commissioner Santosh Jha said local currency settlement offers significant benefits for businesses in both countries. He noted that trading directly in Indian rupees and Sri Lankan rupees can eliminate conversion losses, lower transaction expenses and reduce dependence on the . . .