China says greater use of RMB can support Sri Lanka's recovery

CHINA'S Ambassador to Sri Lanka Qi Zhenhong on Wednesday said broader use of the Chinese Yuan, or Renminbi (RMB), could strengthen Sri Lanka's macroeconomic stability and help lower foreign-exchange risks as the country seeks to rebuild from its recent economic crisis.

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Speaking at the RMB Internationalization Forum in Colombo, Qi said that for a developing country like Sri Lanka, this process is of significant and practical importance.

“Broader use of the RMB helps diversify the structure of foreign-exchange reserves, reduce exchange-rate risk, and provide more stable and lower-cost settlement channels in bilateral trade, investment and financing, thereby strengthening the local currency’s stability and macroeconomic resilience,” Qi said.

He described the RMB's internationalisation as a marketdriven, enterprise-led, risk-controllable and gradual process, adding that it would inject fresh momentum into trade facilitation, investment attraction and financial-system modernisation in Sri Lanka.

"Expanding cooperation with China through the RMB would be timely as Sri Lanka undergoes "a critical period of economic recovery and structural adjustment," the Ambassador noted.

In outlining the progress of the Chinese currency's global adoption, Qi said that in the first half of 2025, cross-border RMB receipts and payments totalled RMB 35 trillion (about $4.9 trillion), up 14% year-on-year.

Over 80 countries and regions now hold RMB in their foreign-exchange reserves, while Hong Kong has developed into the core offshore hub, with complementary markets in London, Singapore and Dubai.