......In South Asia, economic nationalism and trade barriers were partly triggered by global currency weakness of the post World War II failed Bretton Woods unstable peg system, though global trade barriers also rose during the Great Depression. Until the middle of the last century exchange rates between the two countries were fixed one-for-one through a currency board in Sri Lanka. Even after the creation of the Reserve Bank of India in the 1930s the Indian rupee remained strong and stable as the RBI was restrained by a gold standard. But after independence from British rule, the central banks of the two countries raced with each other to weaken their currencies by printing money to finance budget deficits, a battle which was eventually won by Sri Lanka............
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