Chinese Envoy Urges Currency Diversification in Sri Lanka

COLOMBO (News 1st); Qi Zhenhong, the Ambassador of the People’s Republic of China to Sri Lanka, emphasized the growing global role of the Renminbi (RMB) and its strategic importance for developing nations like Sri Lanka, during a recent address on the internationalisation of China’s currency.

“As the world’s second-largest economy and a major trading nation, China is actively participating in the reform of the international monetary system,” Ambassador Qi stated. “The RMB is increasingly being used in cross-border trade settlements, as a reserve currency, and as an investment tool — particularly in sectors such as energy, finance, and infrastructure.”

He noted that the internationalisation of the RMB is not intended to replace existing systems, but rather to strengthen and refine the global monetary framework, offering more currency choices and enhancing the resilience of the global financial safety net.

For countries like Sri Lanka, the ambassador highlighted several key benefits:

Diversification of foreign exchange reserves

Reduced exposure to exchange rate volatility

More stable and cost-effective settlement channels for trade and investment

Enhanced macroeconomic resilience during critical periods of recovery and reform

“Expanding cooperation with the RMB will inject fresh momentum into trade facilitation, investment attraction, and the modernisation of Sri Lanka’s financial system,” he added.

He was speaking at the RMB Internationalization Forum 2025, organized by the Sri Lanka–China Business Council (SLCHBC) in collaboration with the Bank of China Colombo Branch (BOCC), in Colombo.