RMB Clearing Bank for Sri Lanka Unveiled in Colombo as RMB Use Expands in Bilateral Trade

Xinhua Finance, Colombo, October 16 (Reporter Wu Ziyu) — The unveiling ceremony for the RMB clearing bank in Sri Lanka, hosted by Bank of China, was held in Colombo on October 15. Sri Lankan Minister of Labour and Deputy Minister of Finance Fernando and more than 200 representatives from Sri Lankan government departments as well as Chinese and Sri Lankan enterprises and financial institutions attended the event.

Central Bank of Sri Lanka Deputy Governor Siri Kumara said China is an important trading partner of Sri Lanka, and easier RMB settlement will provide tangible convenience for local Sri Lankan companies doing business with Chinese partners and solid support for deeper bilateral economic, trade and investment ties.

Chinese Ambassador to Sri Lanka Wei Huaxiang said in his remarks that the central banks of the two countries completed the renewal of a 10 billion yuan bilateral local currency swap agreement in early 2025, providing a solid policy foundation for bilateral financial cooperation. The establishment of the clearing bank is a vivid practice of building a China-Sri Lanka community with a shared future, demonstrates China's firm support for Sri Lanka's economic recovery, and reflects the shared will of both sides to deepen cooperation and pursue common development.

Bank of China President Zhang Hui said that Bank of China, as the only Chinese financial institution operating in Sri Lanka, has witnessed and participated in the historical process of deepening China-Sri Lanka cooperation. The designation of Bank of China's Colombo branch as the RMB clearing bank in Sri Lanka will further facilitate the use of the RMB in bilateral trade and investment and push bilateral economic and trade cooperation to a new level.

In recent years, bilateral financial cooperation between the two countries has continued to deepen. In March this year, under the Memorandum of Understanding between the People's Bank of China and the Central Bank of Sri Lanka, the People's Bank of China decided to authorize the Colombo branch of Bank of China Limited to act as the RMB clearing bank in Sri Lanka.

(Source: Xinhua News Agency)