"Any transaction executed between or among residents in Sri Lanka shall be in LKR (Lankan Rupee), being the legal tender in Sri Lanka," the central bank said in a statement. It added that the INR was designated a foreign currency in Sri Lanka in August 2022. "Trade between Sri Lanka and India has grown rapidly after the Indo-Sri Lanka Free Trade Agreement, which came into force in March 2000," the bank said.
Sri Lanka's Central Bank said on Wednesday that no domestic transactions would be allowed with the Indian Rupee in the island country, as it warned people not to be misled by inaccurate information surrounding the issue.
"Any transaction executed between or among residents in Sri Lanka shall be in LKR (Lankan Rupee), being the legal tender in Sri Lanka," the central bank said in a statement. It added that the INR was designated a foreign currency in Sri Lanka in August 2022. "Trade between Sri Lanka and India has grown rapidly after the Indo-Sri Lanka Free Trade Agreement, which came into force in March 2000," the bank said.