Colombo, Sri Lanka

Sri Lankan President Ranil Wickremesinghe has said he would like to see the Indian rupee used as much as the US Dollar. His remarks at the Indian CEO Forum in Colombo came days ahead of his scheduled visit to New Delhi. 

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Wickremesinghe, who is also Sri Lanka’s finance minister, gave these remarks in response to the chair of the forum, TS Prakash, who advocated for the increased use of the rupee by Sri Lanka in international trade.

Wickremesinghe’s statement

While drawing a parallel between the rise of East Asia and India, Wickremesinghe said, “Just as East Asia, including countries like Japan, Korea and China, witnessed significant growth 75 years ago, it is now India’s turn, along with the Indian Ocean region.”

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“It makes no difference to us if India (the Indian rupee) becomes a common currency. We will have to figure out how to go about it. We must become more open to the outside world,” the president added.

“The world is evolving and India is undergoing rapid development, particularly under Prime Minister Modi’s leadership,” he said.

The Sri Lankan economy gradually recovering

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Wickremesinghe also stated that Sri Lanka benefits from its close proximity to India, as well as its rich history, cultural heritage, and long-standing trading relationships that have spanned over 2,500 years. 

Watch: Sri Lanka seeking fresh diplomatic alliance with India

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Wickremesinghe, who guided the island nation out of an economic crisis, mentioned that the economy is gradually recovering, despite the slow progress.

How India helped Sri Lanka remain afloat

During Sri Lanka’s economic turmoil stemming from massive debt, India extended a lifeline by providing an economic assistance package worth $4 billion.

To address foreign exchange shortages, Sri Lanka utilised credit lines from India to import essential commodities and fuel, a shortage which had led to widespread street protests.

Also read: Sri Lanka takes five-day bank holiday for domestic-debt restructuring amid economic crisis

Furthermore, Gopal Bagle, the High Commissioner of India in Sri Lanka, who attended the forum, expressed that both the Indian government and the business community played a significant role in assisting Sri Lanka in recovering from the financial crisis of the previous year.

The Sri Lankan media quoted Bagle as saying, "Even during the initial crisis, Indian businessmen initiated trade in Sri Lanka to demonstrate to the rest of the world the stability of the country's financial status."

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