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Chinese Envoy urges greater use of RMB for trade between China and Lanka
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.”
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Landslide Early Warnings issued to the Districts of Kandy and Nuwara Eliya
The Landslide Early Warning Center of the National Building Research Organisation [NBRO] has issued landslide early warnings to the districts of Kandy and Nuwara Eliya valid from 06:00 hrs on 13.02.2026 to 06:00 hrs on 14.02.2026
Accordingly,
Level II [AMBER] landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Walapane and Nildandahinna in the Nuwara Eliya district.
Level I [YELLOW] landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Pathahewheta in the Kandy district.
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Former Minister Professor Tissa Vitharana has passed away at the age of 91
Former Minister Professor Tissa Vitharana has passed away at the age of 91, according to family sources
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GL: Proposed anti-terror laws will sound death knell for democracy
‘Media freedom will be in jeopardy’
Former Minister of Justice, Constitutional Affairs, National Integration and Foreign Affairs Prof. G. L. Peiris has warned that the proposed Protection of the State from Terrorism Act (PSTA) will deal a severe blow to civil liberties and democratic rights, particularly media freedom and the overall freedom of expression.
Addressing a press conference organised by the joint opposition alliance “Maha Jana Handa” (Voice of the People) in Colombo, Prof. Peiris said the proposed legislation at issue had been designed “not to protect people from terrorism but to protect the State.”
Prof. Peiris said that the proposed law would sound the death knell for the rights long enjoyed by citizens, with journalists and media institutions likely to be among those worst affected.
Prof. Peiris took exception to what he described as the generous use of the concept of “recklessness” in the draft, particularly in relation to the publication of statements and dissemination of material. He argued that recklessness was recognised in criminal jurisprudence as a state of mind distinct from intention and its scope was traditionally limited.
“In this draft, it becomes yet another lever for the expansion of liability well beyond the properly designated category of terrorist offences,” Prof. Peiris said, warning that the elasticity of the term could expose individuals to prosecution on tenuous grounds.
Prof. Peiris was particularly critical of a provision enabling a suspect already in judicial custody to be transferred to police custody on the basis of a detention order issued by the Defence Secretary.
According to the proposed laws such a transfer could be justified on the claim that the suspect had committed an offence prior to arrest of which police were previously unaware, he said.
“The desirable direction of movement is from police to judicial custody. Here, the movement is in the opposite direction,” Prof. Peiris said, cautioning that although the authority of a High Court Judge was envisaged, the pressures of an asserted security situation could render judicial oversight ineffective in practice.
Describing the draft as “a travesty rather than a palliative,” Prof. Peiris said the government had reneged on assurances that reform would address longstanding concerns about existing counter-terrorism legislation. Instead of removing objectionable features, he argued, the new bill introduced additional provisions not found in the current Prevention of Terrorism Act (PTA).
Among them is a clause empowering the Defence Secretary to designate “prohibited places”. That was a power not contained in the PTA but previously exercised, if at all, under separate legislation such as the Official Secrets Act of 1955. Entry into such designated places, as well as photographing, video recording, sketching or drawing them, would constitute an offence punishable by up to three years’ imprisonment or a fine of up to Rs. 3 million. Prof. Peiris said. Such provision would have a “particularly chilling effect” on journalists and media personnel, he noted.
The former minister and law professor also criticised the breadth of offences defined under the draft, noting that it sought to create 13 categories of acts carrying the label of terrorism. This, he said, blurred the critical distinction between ordinary criminal offences and acts of terrorism, which require “clear and unambiguous definition with no scope for elasticity of interpretation.”
He cited as examples offences such as serious damage to public property, robbery, extortion, theft, and interference with electronic or computerised systems—acts which, he argued, were already adequately covered under existing penal laws and did not necessarily amount to terrorism.
Ancillary offences, too, had been framed in sweeping terms, Prof. Peiris said. The draft legislation, dealing with acts ‘associated with terrorism,’ imposed liability on persons “concerned in” the commission of a terrorist offence. “This is a vague phrase and catch-all in nature.” he noted.
Similarly, under the subheading ‘Encouragement of Terrorism,’ with its reference to “indirect encouragement,” could potentially encompass a broad spectrum of protest activity, Prof. Peiris maintained, warning that the provision on “Dissemination of Terrorist Publications” could render liable any person who provides a service enabling others to access such material. “The whole range of mainstream and social media is indisputably in jeopardy,” Prof. Peiris said.
Former Minister Anura Priyadarshana Yapa and SLFP Chairman Nimal Siripala de Silva also addressed the media at the briefing.
by Saman Indrajith ✍️
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