National Development Bank PLC, recently opened an Indian Rupee denominated Nostro Account with the Indian Bank. This marks a milestone in foreign payments and settlements in the country, where importers and exporters in the two countries are now able to carry out trade in Indian Rupees.
The ability to trade in Indian Rupees brings in the dual benefits of promoting trade between India and Sri Lanka and eliminating the dependency on US Dollars for foreign trade.
India and Sri Lanka enjoy a vibrant and growing economic and commercial partnership, which has witnessed considerable expansion over the years. India has traditionally been among Sri Lanka’s largest trade partners and Sri Lanka remains among the largest trade partners of India in the SAARC.Enhancements to the payments and settlements system within Sri Lanka through Indian Rupee Nostro accounts will augur well for such thriving trade, and will also open up new markets for traders in both countries.
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