Sri Lanka has notified the Indian rupee as a designated currency, Indian External Affairs Ministry Spokesperson Arindam Bagchi said on Thursday (July 20).
"In terms of trading in our national currencies, Sri Lanka has already notified India Rupee as designated foreign currency in their system," Bachi said during a weekly media interaction in New Delhi.
Making Indian rupee (INR) a designated foreign currency enables not only trade settlement between the two countries in INR but also Indian tourists coming to Sri Lanka can use INR for transactions.
Can someone eli5 what this means? What will be it’s benefits to us (apart from tourists using INR in Sri Lanka)