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.
The Colombo–Kandy main road at Pahala Kadugannawa has been closed indefinitely after a deadly rockfall in the area that left six people dead and four others injured.
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