NEW DELHI: The Indian rupee (INR) is only a “designated foreign currency” in Sri Lanka and cannot be used for making domestic payments, the Central Bank of Sri Lanka (CBSL) has said.
The clarification was issued on Wednesday to remove the confusion on whether the Indian currency had become a legal tender in the island nation.
“The authorisation of INR as a designated currency does not make INR a legal tender in Sri Lanka for domestic payments/settlements. Any transaction executed between or among residents in Sri Lanka shall be in LKR (Sri Lankan rupee), being the legal tender in Sri Lanka,” the CBSL said.
“Accordingly, CBSL requests the public not to be misled by the misrepresentation of facts circulating in the public domain on INR,” it said.
The central bank said Sri Lanka at present has 16 “designated foreign currencies” in order to promote cross-border trade, with the Indian rupee becoming part of the arrangement in August 2022. – BERNAMA
