At a crucial stage in Sri Lanka’s economic recovery and structural reforms, expanding cooperation with China’s renminbi (RMB) will inject fresh momentum into trade, investment, and financial modernization, Chinese Ambassador Qi Zhenhong said.
He made these remarks at the RMB Internationalization Forum held in Colombo on October 29.
Ambassador Qi noted that the dollar-centric global financial system has exposed several structural contradictions — including liquidity imbalances and risk spillovers — which have disadvantaged developing nations. He stressed that policy shifts in major economies often create a “tidal effect” on the global economy, driving up financing costs and destabilizing exchange rates in smaller nations.
Highlighting China’s efforts to promote the international use of the RMB, he said the currency’s role in global trade settlement, reserve holdings, and investment tools continues to expand, particularly in the energy, finance, and infrastructure sectors.
“For a developing country like Sri Lanka, greater use of the RMB can diversify foreign exchange reserves, reduce exchange-rate risk, and ensure more stable and cost-effective settlement channels,” the Ambassador said. “At this critical period, expanding RMB cooperation will provide new momentum for trade facilitation, investment attraction, and financial system modernization.”
He emphasised that RMB internationalisation is a market-driven, enterprise-led, and gradual process, reflecting China’s deep integration into global trade and investment.
Ambassador Qi also outlined China’s expanding global RMB network, including clearing banks in 33 countries, RMB’s inclusion in the IMF’s Special Drawing Rights basket, and the growing adoption of digital yuan in cross-border transactions.
He concluded by reaffirming China’s commitment to working with all partners to build a more diversified, inclusive, and resilient international financial system.
