Sri Lanka, Oct. 14 -- India has stepped up efforts to deepen regional financial integration with its Reserve Bank amending the Foreign Exchange Management (borrowing and lending) Regulations of 2018.
The latest move by the Reserve Bank of India (RBI) allows the Indian banks to extend loans in Indian rupees to entities and individuals resident in Sri Lanka, Bhutan and Nepal.
"This development will make credit more accessible for businesses in Sri Lanka.
The provision allowing such loans to be denominated in Indian rupees will be particularly beneficial for Sri Lankan businesses, reducing exchange rate risks and strengthening cross-border trade and financial linkages between the two countries," the High Commission of India in Colombo said ...