Connect with us

News

Chinese Envoy urges greater use of RMB for trade between China and Lanka

Published

on

Chinese Ambassador to Sri Lanka, Xi Zhenghong, has called for greater use of the Renminbi (RMB) in trade settlements between China and Sri Lanka, emphasising its potential to strengthen bilateral economic ties and enhance financial stability.

He made these remarks at the 2025 RMB Internationalisation Forum, held in Colombo, and organised by the China Business Council in Sri Lanka, with the support of the Bank of China, Colombo Branch. The event brought together senior policymakers and financial experts, including Central Bank Governor Dr. Nandalal Weerasinghe, Minister of Labour and Deputy Minister of Finance Dr. Anil Jayantha Fernando, and Finance Ministry Secretary Dr. Harshana Suriyapperuma.

In his address, Ambassador Xi highlighted the evolution of the global monetary system from a dollar-centred framework toward one that is increasingly diversified. While acknowledging the US dollar’s historic role in maintaining global financial stability, he pointed out the structural imbalances and vulnerabilities that the dollar-centric system poses, particularly for developing economies.

“The dominance of a single currency creates a ‘tidal effect’ on the global economy,” Xi said, noting that sudden policy shifts in major economies can trigger exchange rate volatility and increased financing costs in developing countries.

He underscored China’s commitment to reforming and diversifying the international monetary system by promoting wider use of the RMB in global trade, reserves, and investment. The Ambassador cited that more than 80 countries have already incorporated the RMB into their foreign exchange reserves, while cross-border RMB transactions reached 35 trillion yuan in the first half of 2025, a 14% increase year-on-year.

For Sri Lanka, Xi emphasised that broader RMB use could help diversify foreign reserves, reduce exchange-rate risk, and lower transaction costs in bilateral trade. “At this critical period for Sri Lanka’s economic recovery and structural adjustment, expanding cooperation with the RMB will inject fresh momentum into trade facilitation, investment, and financial modernisation,” he noted.

He reaffirmed China’s readiness to work with Sri Lanka and other partners “on the principles of extensive consultation, joint contribution, and shared benefits,” to make the RMB a key element in a more balanced and inclusive global financial system.

Addressing the forum, Central Bank Governor Dr. Weerasinghe stated: “I remember we signed a currency swap agreement with China about 10 years ago. I signed it on behalf of the Central Bank. After that, we organised another event to promote the RMB facility in Sri Lanka. If we had the RMB facility at that time, we could have utilised the currency facility that existed. We have come a long way. When the RMB facility was introduced in 2010, it ranked as the 35th international currency in the world. By 2024, it reached the fourth position globally. During this time, the RMB has made remarkable progress. Strengthening the BRICS organisation will further support the use of local currencies in foreign transactions. We have a strong economic relationship between the two countries. China is Sri Lanka’s main import partner and the second-largest trading partner. Bilateral trade between the two countries, in 2024, amounted to USD 4.3 billion. On the other hand, the trade gap between the two nations was USD 1.1 billion in 2023. It has expanded from USD 2.8 billion to USD 4.1 billion in 2024, increasing in favour of China.”



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Rs 1. 3 bn yahapalana building deal under investigation

Published

on

Jayasinghe building

Several ex-Cabinet ministers questioned; Ranil, Sajith, too likely to be summoned

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has initiated an inquiry into the shifting of the Agriculture Ministry situated at Rajamalwatte, to a building belonging to the D. P. Jayasinghe Group of Companies, at Rajagiriya, during the Yahapalana government.

The building was rented for a five-year period at a cost of over Rs 1 bn by the yahapalana government within months after the then President Maithripala Sirisena declared opened the 10-storey building complex.

The CIABOC yesterday morning recorded former yahapalana minister Gayantha Karunatilleke’s statement in connection with the investigation. Later in the day, CIABOC recorded the statement of SJB General Secretary Ranjith Maddumabanadara. Earlier CIABOC summoned former ministers Thalatha Atukorale, Wajira Abeywardena and Lakshman Kiriella. At the time of the finalisation of the deal, KIriella was in the UNP.

Sources said that former PM and President Ranil Wickremesinghe, too, was likely to be questioned in this regard. Responding to The Island queries, sources pointed out even SJB leader Sajith Premadasa was expected to be questioned.

The then Speaker Karu Jayasuriya is on record as having said that the building was rented in keeping with a decision taken by the government and not Parliament.

The UNP-SLFP coalition shifted the Agriculture Ministry to accommodate 16 Sectoral Oversight Committees therein.

Although the government paid as much as Rs. 21.5 mn monthly rent to D.P.A. Jayasinghe Company, the Agriculture Ministry failed to move in for over a year. The then Agriculture Minister Duminda Dissanayake sought Cabinet approval on Dec 1, 2015 to rent the building.

According to inquiries conducted earlier by the Presidential Commission appointed to probe state sector corruption, the Agriculture Ministry sought Cabinet approval for a new building after the then Prime Minister Wickremesinghe submitted a cabinet proposal on 21 September, 2015, to use the Agriculture Ministry building for Parliament’s sectoral oversight committees.

PM Wickremesinghe’s Secretary Saman Ekanayake has told the Commission that public funds could have been saved if the several vacant floors of Suhurupaya belonging to the Defence Ministry had been made available to the Agriculture Ministry.

By Shamindra Ferdinando ✍️

Continue Reading

News

SL Railways suffers staggering losses; more than 2/3 of rail tracks out of service

Published

on

Army personnel engaged in repairing damaged railway tracks in the Boo Oya area. Cyclone Ditwah caused extensive damage to railway tracks in several parts of the country (pic courtesy Army)

Railway sources said that the damages caused to railway tracks could be more than USD 300 mn.

According to UNDP Rapid Crisis Assessment Sri Lanka’s railroad system, over 278 km of railways were exposed to cyclone-related flooding, including 35 railroad bridges nationwide. This figure reflects flooding only, but other hazards (such as localised debris, landslides, or damage to a single bridge) can also disrupt operations, meaning that even relatively small obstructions can render long stretches of railway non-operational. Like road exposure, railway exposure limits mobility and the capacity of affected populations to access key services and infrastructure.

At the level of divisional secretariats, Colombo and Thimbirigasyaya in Colombo District, Ja Ela in Gampaha District, as well as Mannar Town and Nanaddan in Mannar District all registered over 10 km of exposed railways each.

Commissioner-General of Essential Services B.K. Prabath Chandrakeerthi is on record as having said that only 478 kilometers of Sri Lanka’s 1,593-km railway network were currently usable following extensive damage caused by the recent cyclone.

Continue Reading

News

US, SL advancing free, open, and resilient Indo-Pacific region: Embassy

Published

on

Allison Hooker

Under Secretary of State for Political Affairs Allison Hooker arrived in Colombo yesterday (11) to underscore US interest in defence, trade and maritime security in line with their Indo-Pacific strategy.

The US embassy here issued the following statement: “Under Secretary Hooker will meet with Sri Lankan counterparts to discuss a wide range of bilateral issues, focused on deepening economic and commercial ties, strengthening defence cooperation, and supporting Sri Lanka’s economic and maritime sovereignty.

The United States and Sri Lanka share a strong and enduring partnership rooted in our mutual commitment to regional security, economic growth, and prosperity for our peoples. Through close cooperation on defence, trade, and maritime security, we are working together to advance a free, open, and resilient Indo-Pacific region.

As we continue to build on our strategic partnership, the United States also stands with the people of Sri Lanka as they respond to the devastating impacts of Cyclone Ditwah. We remain committed to working together to address both immediate challenges and long-term opportunities for our two nations, reflecting our ongoing commitment to the U.S.-Sri Lanka partnership.”

Continue Reading

Trending