<p>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.&nbsp;</p>

<p>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.</p>

<h2><strong>Wickremesinghe’s statement</strong></h2>

<p>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.”</p>

<p>“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.</p>

<p>“The world is evolving and India is undergoing rapid development, particularly under Prime Minister Modi’s leadership,” he said.</p>

<h2><strong>The Sri Lankan economy gradually recovering</strong></h2>

<p>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.&nbsp;</p>

<p><strong>Watch:&nbsp;Sri Lanka seeking fresh diplomatic alliance with India</strong></p>

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<p>Wickremesinghe, who guided the island nation out of an economic crisis, mentioned that the economy is gradually recovering, despite the slow progress.</p>

<h2><strong>How India helped Sri Lanka remain afloat</strong></h2>

<p>During Sri Lanka’s economic turmoil stemming from massive debt, India extended a lifeline by providing an economic assistance package worth $4 billion.</p>

<p>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.</p>

<p><a href="https://www.wionews.com/south-asia/sri-lanka-takes-five-day-bank-holiday-for-domestic-debt-restructuring-amid-economic-crisis-610130"><strong>Also read:&nbsp;Sri Lanka takes five-day bank holiday for domestic-debt restructuring amid economic crisis</strong></a></p>

<p>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.</p>

<p>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."</p>

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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.

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. 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.” “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 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 × 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." WATCH WION LIVE HERE ×

Lankan President Wickremesinghe says no problem in using rupee as much as USD

<p>In the south of the Indian subcontinent, Sri Lanka heaved a sigh of respite after the World Bank approved $700 million in budgetary and welfare support for the island nation.&nbsp;The biggest funding tranche for the crisis-hit nation comes months after India extended a $1 billion credit line to the crisis-hit nation in a region where Pakistan is also struggling to secure $1 billion in IMF funding before June 30.</p>

<p>For Sri Lanka, the current relief comes after an International Monetary Fund (IMF) deal for nearly $3 billion in bailout in March.</p>

<p>About $500 million of the funds will be allocated for budgetary support while the remaining $200 million will be for welfare support earmarked for those worst hit by the crisis.</p>

<p>"Through a phased approach, the World Bank Group strategy focuses on early economic stabilisation, structural reforms, and protection of the poor and vulnerable," the World Bank's country director for Sri Lanka, Faris Hadad-Zervos, said in an official statement.</p>

<p>"If sustained, these reforms can put the country back on the path towards a green, resilient and inclusive development," Zervos said.</p>

<h2><strong>Sri Lanka's economic crisis</strong></h2>

<p>The island nation in India's south is currently struggling with the worst financial crisis since its independence from Britain in 1948. The country's foreign exchange hit record lows and triggered its first foreign debt default last year, followed by mass protests against the then ruling president.&nbsp;</p>

<p><strong>Also watch |&nbsp;Sri Lanka battles its worst economic crisis in 70 years</strong></p>

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<p>The IMF approved a bailout of nearly $3 billion in March. Sri Lanka expects that IMF's assistance will bring additional funding of up to $4 billion from the World Bank, the Asian Development Bank and other multilateral agencies.</p>

<p>Sri Lanka will reportedly release a domestic debt restructuring programme this week to push forward reworking its debt with bondholders and bilateral creditors including China, Japan and India.</p>

<h2><strong>Sri Lanka's economic recovery: India's role in spotlight too</strong></h2>

<p>As part of $4 billion in emergency assistance, India has extended a $1 billion&nbsp;credit line for Sri Lanka by one year until 2024.</p>

<p><strong>Also read | <a href="https://www.wionews.com/business-economy/india-steps-up-rupees-internationalisation-for-sri-lankas-economic-recovery-589593">India steps up rupee's internationalisation for Sri Lanka's economic recovery</a></strong></p>

<p>Sri Lanka owes $7.1 billion&nbsp;to bilateral creditors, according to the government data. The country owes $3 billion&nbsp;to China, $2.4 billion to the Paris Club and $1.6 billion&nbsp;to India.</p>

<p>Meanwhile, India and Sri Lanka have also stepped up their talks to proceed with trade in Indian Rupee as New Delhi and Colombo look set to expand their bilateral cooperation in "power and energy sector as well as aspects relating to Rupee trade".</p>

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In the south of the Indian subcontinent, Sri Lanka heaved a sigh of respite after the World Bank approved $700 million in budgetary and welfare support for the island nation.

In the south of the Indian subcontinent, Sri Lanka heaved a sigh of respite after the World Bank approved $700 million in budgetary and welfare support for the island nation. The biggest funding tranche for the crisis-hit nation comes months after India extended a $1 billion credit line to the crisis-hit nation in a region where Pakistan is also struggling to secure $1 billion in IMF funding before June 30. For Sri Lanka, the current relief comes after an International Monetary Fund (IMF) deal for nearly $3 billion in bailout in March. About $500 million of the funds will be allocated for budgetary support while the remaining $200 million will be for welfare support earmarked for those worst hit by the crisis. "Through a phased approach, the World Bank Group strategy focuses on early economic stabilisation, structural reforms, and protection of the poor and vulnerable," the World Bank's country director for Sri Lanka, Faris Hadad-Zervos, said in an official statement. "If sustained, these reforms can put the country back on the path towards a green, resilient and inclusive development," Zervos said. Sri Lanka's economic crisis The island nation in India's south is currently struggling with the worst financial crisis since its independence from Britain in 1948. The country's foreign exchange hit record lows and triggered its first foreign debt default last year, followed by mass protests against the then ruling president. Also watch | Sri Lanka battles its worst economic crisis in 70 years × The IMF approved a bailout of nearly $3 billion in March. Sri Lanka expects that IMF's assistance will bring additional funding of up to $4 billion from the World Bank, the Asian Development Bank and other multilateral agencies. Sri Lanka will reportedly release a domestic debt restructuring programme this week to push forward reworking its debt with bondholders and bilateral creditors including China, Japan and India. Sri Lanka's economic recovery: India's role in spotlight too As part of $4 billion in emergency assistance, India has extended a $1 billion credit line for Sri Lanka by one year until 2024. Also read | India steps up rupee's internationalisation for Sri Lanka's economic recovery Sri Lanka owes $7.1 billion to bilateral creditors, according to the government data. The country owes $3 billion to China, $2.4 billion to the Paris Club and $1.6 billion to India. Meanwhile, India and Sri Lanka have also stepped up their talks to proceed with trade in Indian Rupee as New Delhi and Colombo look set to expand their bilateral cooperation in "power and energy sector as well as aspects relating to Rupee trade". WATCH WION LIVE HERE

Sri Lanka gets $700mn from World Bank months after India’s extended credit line for economic recovery

National Security Advisor Ajit Doval arrived here on Friday for a trilateral maritime dialogue among India, Sri Lanka and the Maldives.

NSA Ajit Doval arrives in Sri Lanka to attend 4th trilateral maritime meet