Sri Lanka opens first Chinese yuan clearing bank in Colombo

Sri Lanka officially launched its Chinese Renminbi (RMB) Clearing Bank in Colombo on October 15, aiming to facilitate cross-border financial transactions and strengthen bilateral economic cooperation between Sri Lanka and China.

The ceremony was held with the participation of Minister of Labour and Deputy Minister of Finance and Planning Dr. Anil Jayantha. Under authorisation from the People’s Bank of China, the Colombo branch of the Bank of China will serve as the official RMB clearing bank. The new facility enables direct cross-border RMB clearing and domestic interbank transactions, establishing direct connections between Sri Lanka’s banking network and China’s financial system.

By allowing direct settlement in Chinese Yuan, the initiative eliminates the need to convert Sri Lankan Rupees into US Dollars before converting to Yuan for trade with China. This shift is expected to reduce currency conversion costs, mitigate exchange rate risks, accelerate transaction processing times, and provide streamlined financial services for importers and exporters. The launch event was attended by Chinese Ambassador to Sri Lanka Wei Huaxiang, Bank of China Vice President and Executive Director Zhang Hui, Central Bank of Sri Lanka Deputy Governor K.G.P. Sirikumara, along with representatives from the Sri Lankan and Chinese business communities. (Newswire)

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