Britain's business ambassador and leading non-resident Indian Lord Swraj Paul has said South Asia should move towards a single currency to unleash the region's potential and accelerate economic growth.
The visiting industrial tycoon said India's proposal for a single currency for the seven-member South Asian Association for Regional Cooperation should help the entire region.
"This is not something that is going to happen overnight, but it is a good thing that the leaders (in South Asia) have now begun talking about it," Lord Paul told PTI in an interview in Colombo, adding "unless you start talking about it now, it will not happen."
The Caparo Group chairman said South Asia with its huge population could go the same way as the European Union in having a single Euro although his own adopted country Britain was yet to join the Euro zone.
"My view is that Britain should accept and will accept the Euro," he said, adding that moving towards the European Common market was a catalyst in attracting the United States and Japanese investments in Britain.
"Think of what South Asia can gain if there is one common market with a single currency. Industries can be located anywhere where productivity and other conditions are most suitable. There would be no fluctuating exchange rates."
Visiting Sri Lanka for the first time in 47 years, Lord Paul said he was thoroughly impressed what he saw in the city of Colombo.
"It is a very clean city compared to many cities in the subcontinent. There is entrepreneurship in the people," he said, adding that the peace process held out the hope of further economic success for the island.
He said Sri Lanka had lagged behind despite opening its economy in 1978 partly because of the fighting between government forces and Tamil Tiger rebels.
However, with the truce coming into force in February 2002, the international business community felt the peace process could be taken to its logical conclusion, Lord Paul, who is also a member of the British House of Lords, said.
With the business environment improving in the island, he was keen to encourage British businesses to have partnerships with Sri Lankan companies, he said.
Lord Paul said foreign investors could look at Sri Lanka as a destination to reach the vast Indian markets through the Indo-Sri Lanka free trade agreement.
"It must make sense for British companies to explore commercial opportunities in the Indian market through Sri Lanka," he said.
"We are not merely looking at the trade balance. Right now the trade is very much in favour of Sri Lanka, but once there is peace and Sri Lanka prospers, British economy too can benefit from that," he added.
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