Sri Lanka (Commonwealth Union)_ President Ranil Wickremesinghe, who also serves as the finance minister of cash-strapped Sri Lanka, expressed the desire for the Indian rupee to be used as a common currency similar to the US dollar. He made this statement while addressing the Indian CEO Forum during the week leading up to his first official visit to New Delhi. Further, Wickremesinghe emphasized that, similar to how East Asian countries such as Japan, Korea, and China witnessed substantial development 75 years ago, it is now India’s turn, along with the Indian Ocean region, to experience similar progress.
Wickremesinghe’s upcoming visit to New Delhi holds significance as it marks his first visit since assuming the presidency one year ago in the midst of unprecedented economic and political turmoil within Sri Lanka. His statements were in response to T. S. Prakash, the chair of the Forum, who advocated for increased utilization of the Indian rupee in the Sri Lankan economy. Wickremesinghe also asserted that it would make no difference to Sri Lanka if India’s currency became a common currency, as they would need to strategize the necessary steps to adapt to such a scenario.
The president also emphasized the importance of Sri Lanka becoming more open to the global community, acknowledging India’s rapid development under Prime Minister Modi’s leadership. Furthermore, he highlighted Sri Lanka’s benefits arising from its geographical proximity to India, as well as its rich historical and cultural heritage, along with a longstanding trading relationship that dates back 2,500 years. Wickremesinghe, credited with steering Sri Lanka out of its economic crisis, asserted that despite the slow progress, the economy is on the path to recovery.
After the completion of the debt restructuring process, the focus will be on a comprehensive growth agenda, involving a substantial transformation of the economy, legal framework, and systems to align with India’s trajectory. The 74-year-old politician was elected by parliament to serve the remaining term of the ousted president, Gotabaya Rajapaksa. Further, analysts noted that the delay in Wickremesinghe’s visit to Delhi, which finally materialized after a year, was uncommon given the historical context of Sri Lanka-India relations.
In the final days of the Rajapaksa presidency, India provided a lifeline through an economic assistance package worth $4 billion. Sri Lanka utilized Indian credit lines to import essential commodities and fuel during a period of foreign exchange shortages that sparked widespread street protests. In the meantime, Gopal Bagle, the High Commissioner of India in Sri Lanka, who also attended the event, highlighted the support of the Indian government and business community in helping Sri Lanka recover from last year’s financial crisis. Bagle stated that even during the initial crisis, Indian businessmen continued doing business in Sri Lanka to demonstrate to the world that the country’s financial stability was intact.
