India has revised its Foreign Exchange Management (Borrowing and Lending) Regulations, 2018, which now permits Indian Banks to lend in Indian Rupees to a bank or individual resident in Sri Lanka, Bhutan and Nepal.
After the current amendment, Indian banks (as well as their overseas branches) can now lend in Indian Rupees to a bank or a person, resident in Bhutan, Nepal, or Sri Lanka, the Indian High Commission said.
This development will make credit more accessible for businesses in Sri Lanka.
The provision allowing such loans to be denominated in Indian Rupees will be particularly beneficial for Sri Lankan businesses, reducing exchange rate risks and strengthening cross-border trade and financial linkages between the two countries.
A short while later, the official car of the Commander of the Navy, bearing plate NAHA 5006, departed from Navy House, Longdon Place, Colombo 7.
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