Standard Chartered Sri Lanka has completed its first Indian rupee transaction for a multinational corporate client in the form of an outward telegraphic transfer between Sri Lanka and the bank's office in Mumbai, India.

The bank says it is now ready to handle letters of credit (L/Cs) in the Indian currency.

Regulatory framework

The telegraphic transfer was made possible by the recent introduction of Indian rupees as a designated foreign currency by the Central Bank of Sri Lanka.

The transaction was executed on the SWIFT messaging platform mechanism and the L/C proceeds were paid into the beneficiary's account at a third-party bank in India within 24 hours.

International currency

Commenting on the bank's first Indian rupee transaction, Standard Chartered Sri Lanka's CEO, Bingumal Thewarathanthri, says the bank is now ready to handle "the complete range of cross-border transaction methods, including L/Cs and documentary collections, in addition to the telegraphic transfer we just completed."

He is also supportive of India's ambitions to internationalise its currency. "We are optimistic about the opportunities associated with the government of India aspiring to internationalise the currency. Both importers and exporters stand to benefit, while the country could achieve further diversification of its currency risk and enhance its purchasing capacity on essential imports," he says.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.