Colombo, Oct. 19 (Daily Mirror) - Sri Lanka has officially inaugurated its first Chinese Yuan (RMB) Clearing Bank in Colombo, marking a significant step towards strengthening financial cooperation and bilateral economic ties between Sri Lanka and China.
The opening ceremony was held, with the participation of Minister of Labour and Deputy Minister of Finance and Planning Dr. Anil Jayantha.
Authorized by the People’s Bank of China, the Colombo branch of the Bank of China has been designated as Sri Lanka’s official RMB clearing bank. The facility establishes a direct link between Sri Lanka’s domestic banking network and China’s financial system, enabling cross-border transactions and interbank settlements in Chinese Yuan.
One of the key benefits of the new facility is the ability to settle trade transactions directly in Yuan, eliminating the previous need to convert Sri Lankan Rupees into US Dollars before converting them into Chinese Yuan.
This arrangement is expected to help local businesses reduce currency conversion costs and limit their exposure to foreign exchange fluctuations when conducting trade with China.
The new clearing mechanism is also expected to shorten transaction processing times by reducing reliance on intermediary banks and third-party channels in China. The streamlined process could improve settlement efficiency, lower transaction costs and facilitate smoother financial services for Sri Lankan importers and exporters.
The inauguration ceremony was attended by Chinese Ambassador to Sri Lanka Wei Huaxiang, Bank of China Vice President and Chief Executive Officer Zhang Hui, and Central Bank of Sri Lanka Deputy Governor K.G.P. Sirikumara, along with representatives from the business communities of both countries.