India sees rupee bonds as next step in deepening Lanka ties

In a significant signal of deepening economic ties, India is actively considering pathways to enable Sri Lankan entities, including the government and commercial businesses, to issue bonds denominated in Indian Rupees (INR), according to remarks by the Indian Deputy High Commissioner to Sri Lanka Dr. Satyanjal Pandey.

- By NISHEL FERNANDO

Dr.Satyanjal Pandey

(Pic by Pradeep Dilruckshana)

Speaking as the Guest of Honour at the 'Bridging Borders Il' financial dialogue in Colombo on October 15, Dr. Pandey described the initiative as a "long-term vision" that reflects the "deepening trust" between the two markets.

The dialogue, organised by the Indo-Sri Lanka Chamber of Commerce & Industry (ISCCI), focused on creating a roadmap for Sri Lanka to issue bonds in Indian currency, a move that could enhance regional financial integration and trade liquidity.

Dr. Pandey suggested that enabling Sri Lankan businesses and financial institutions to issue INR bonds would help diversify their funding sources, reduce exposure to exchange rate volatility, and attract investors familiar with Indian markets.