Sri Lanka should sign more currency swap agreements with more countries to reduce the drag on Forex reserves. Most of our cattle, food, Milk are imported New Zealand and Australia.Similarly we trade more with UAE,Qatar, Kuwait,Bahrain,Iran,Maldives,Indoneasia, Saudi Arabia, Singapore, Malaysia, Thailand, Pakistan, Bangladesh,Europe,UK,etc. Instead of trading in US dollar we should trade in Local currencies. Use of local currency will reduce the demand to trade for e.g Sri lanka Rupees to us dollar then convert that to Australian Dollar. The currency does not need to be converted to US dollar for trade. That is an additional cost which benefits USA nor Sri Lanka or Australia. All our FTA agreements should include trading in Local currencies for trade with other FTA partners.
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