ECONOMYNEXT – Chinese Ambassador to Sri Lanka Qi Zhenhong has reaffirmed China’s readiness to work closely with Sri Lanka to diversify reserves, reduce exchange-rate risks, and promote mutually beneficial financial cooperation, the island nation’s main business chamber said.

China has been pursuing the internationalization of the renminbi (RMB, also called the Chinese yuan or CNY) since the late 2000s as a deliberate long-term strategy to reduce its dependence on the US dollar, enhance global trade efficiency for Chinese firms, and elevate Beijing’s financial influence.

Key milestones of RMB internationalization include the launch of offshore RMB clearing centers, starting with Hong Kong in 2009 and now numbering more than 25 worldwide, and the inclusion of the RMB in the IMF’s Special Drawing Rights (SDR) basket in October 2016 with a 10.92% weighting.

The move has seen a rapid expansion of cross-border RMB settlement reaching ¥46.7 trillion or roughly USD 6.5 trillion in 2024, and the development of the Cross-Border Interbank Payment System (CIPS), which by November 2025 handled over 5% of global payments (up from less than 1% in 2015).

Chinese Ambassador to Sri Lanka Zhenhong revealed that the world’s second biggest economy’s willingness to support Sri Lanka in a forum recently held on Chinese Yuan (RMB) Internationalization Forum 2025, organized by the Sri Lanka–China Business Council of the Ceylon Chamber of Commerce (CCC) in collaboration with the Bank of China.

“Addressing the gathering, Ambassador Qi Zhenhong noted that while the US dollar continues to dominate global finance, it also exposes developing economies to volatility and systemic risks,” the CCC said in a statement.

“He emphasized the importance of establishing a more equitable, stable, and inclusive monetary system and explained that RMB internationalization is a market-driven, enterprise-led, and risk-controllable process designed to enhance global financial stability.”

“The Ambassador also highlighted that over 80 central banks have already incorporated RMB into their reserves, with cross-border RMB settlements surpassing 35 trillion yuan in the first half of 2025,” which he referred as a “clear evidence of the currency’s growing influence”.

The discussions centered on promoting RMB settlements in trade, investment, and financial transactions between the two nations, furthering economic stability and efficiency.

Deputy Finance Minister Anil Jayantha Fernando observed that wider use of RMB in transactions could reduce costs, increase administrative efficiency, and attract sustainable foreign direct investment.

“He further mentioned that discussions with key Chinese enterprises, including Sinopec, are progressing positively and signaled that significant new investments are on the horizon,” CCC said in the statement.

Fernando added that the upcoming Investor Protection Act will ensure a stable and transparent environment for investors.

“He noted that these efforts, alongside digitalization and RMB settlement mechanisms, are aligned with Sri Lanka’s broader economic reform agenda.”

Beijing has aggressively signed bilateral local-currency swap lines with more than 40 central banks totalling over ¥4 trillion, promoted RMB-denominated oil and commodity contracts on the Shanghai International Energy Exchange, and encouraged BRICS and Belt-and-Road partner countries to invoice trade and hold reserves in RMB.

As of mid-2025, the renminbi accounts for approximately 4.7% of global foreign-exchange reserves (up from 1% a decade ago) and roughly 3.6% of international payments via SWIFT, making it the fourth-most-active currency for global payments.

For the United States, this gradual rise triggers multiple strategic concerns, including a possibility of widely accepted RMB eroding the dollar’s exorbitant privilege, potentially limiting Washington’s leverage over countries such as Russia, Iran, or even allies seeking to circumvent US secondary sanctions.

Analysts say greater use of CIPS and RMB clearing networks creates parallel financial infrastructure that is largely immune to US regulatory reach, raising fears of a fragmented global payments system.

A stronger RMB challenges the petrodollar system as Saudi Arabia, Brazil, and India increasingly settle oil and commodity trades in yuan.

The Chinese move has led US policymakers to worry that deeper RMB internationalization will give Beijing more influence over global interest-rate and exchange-rate dynamics and could accelerate de-dollarization among emerging markets, especially if China fully liberalizes its capital account or significantly relaxes currency controls.

Source:ECONOMYNEXT

A dispute over temple land in Trincomalee has sparked widespread discussion in Parliament and among the public, following the removal of a Buddha statue by police authorities.

The incident took place at the Sri Sambuddhathwa Jayanthi Bodhiraja Viharaya on Kotuwa Road, where monks and temple supporters had laid the foundation stone for a new Dhamma School building.

A Buddha statue was placed at the site shortly after the ceremony.

Police, acting on a complaint from the Coastal Conservation Department, arrived at the location citing unauthorized construction.

A tense exchange followed between the police and temple representatives, who claimed the land belonged to the temple and was legally documented.

The statue was temporarily taken to the Trincomalee Harbour Police Station and returned later that day.

The event has become a focal point for opposition parties, especially as they prepare for a major protest on November 21.

MP Roshan Akmeemana of the National People’s Power visited the site and was met with mixed reactions from the public.

At a media briefing, the Frontline Socialist Party offered its perspective, suggesting that the land had been inactive since the 2004 tsunami and was previously used for commercial purposes.

The party questioned the timing of the statue’s placement and warned against using religious symbols to assert land claims.

The party also expressed concern over attempts to politicize the issue ahead of upcoming rallies, emphasizing the need for transparency and lawful resolution.

Two officers of the Criminal Investigation Department (CID) have been dispatched to London to conduct further inquiries into former President Ranil Wickremesinghe’s visit to the United Kingdom, Public Security Minister Ananda Wijepala said.

On 29 October, Colombo Fort Magistrate Isuru Neththikumara ordered that the case filed against the former President be taken up for hearing on 28 January.

Issuing directions to investigators, Magistrate Neththikumara noted:
“It must be clarified whether the invitation for this event was an official invitation from the UK Government. The entire case depends on that. Also, this is not a complex investigation. Therefore, I order the CID to conclude the investigation by the next hearing.”

The case concerns allegations that Wickremesinghe misused state funds in 2023 to travel to the UK to attend a ceremony held to honour his wife, Professor Maithree Wickremesinghe, at a British university, during his tenure as Head of State.

Sri Lanka Police have issued a statement regarding video footage showing unrest connected to the removal of a Buddha statue from the premises of the Sri Sambuddha Jayanthi Bodhiraja Viharaya in Trincomalee.

According to the statement issued by Police, following the incident, fabricated stories are being circulated widely on various media platforms. The media statement was issued to clarify the accurate account of the incident.

The statement also notes that Sri Lanka Police observed a potential for tensions between communities arising from this incident.

Since the area concern represents all communities, if any individual had intentionally damaged the Buddha statue, it could have seriously threatened peace and coexistence in the region, police noted. Therefore, the statue was safely removed from the site and handed over to the Trincomalee Harbour Police for safekeeping, according to the statement.

Yesterday (16), during efforts by the Department of Coast Conservation and Coastal Resource Management to stop unauthorized constructions—based on a complaint submitted to the Harbour Police—a group that gathered at the site behaved aggressively. Police then took action to manage the situation and at no point, did they assault clergy or the public, the statement emphasized.

Sri Lanka Police noted that at present, the area is peaceful and the relevant parties have agreed on the next steps. Accordingly, the Buddha statue, which had been under police protection, has been returned to the respected clergy and the contributing committee for proper placement.

The matter is scheduled to be reported to the Trincomalee Magistrate’s Court today, police noted.

The Illankai Tamil Arasu Katchi (ITAK) has demanded the immediate resignation of all Tamil members of the National People’s Power (NPP), including Trincomalee District MP and Deputy Foreign Minister Arun Hemachandra, following the government’s handling of a Buddha statue installation in Trincomalee.

A tense situation arose on Tuesday night when a group attempted to place a Buddha statue at a Dhamma school within a temple in the area. Police were deployed to defuse the situation, and the statue was subsequently removed on the instructions of Public Security Minister Ananda Wijepala.

However, in an ‘X’ post, ITAK General Secretary M.A. Sumanthiran accused the government of capitulating to “majoritarian pressures,” saying initial hopes that the statue’s removal signalled impartial governance were quickly dashed.

The party said Minister Wijepala’s announcement in Parliament—that the statue was taken down solely due to security concerns and would be reinstalled—exposed the administration’s true intentions.

“The NPP government stands exposed as a racist, Sinhala-Buddhist nationalist force, no different from those before it,” the statement said, adding that the minister’s remarks had undermined the government’s earlier pledges of equality.

ITAK said the NPP’s Tamil representatives could no longer remain in the government under such circumstances and urged them to resign immediately in protest.

(ANI): After meeting Gujarat CM Bhupendra Patel, Sri Lankan High Commissioner to India, Mahishini Colonne, said that Sri Lanka has looked up to Gujarat’s development ever since Prime Minister Narendra Modi was the Chief Minister there.
Colonne, while speaking to reporters, drew similarities between Sri Lanka and Gujarat as maritime states and nations, highlighting areas of cooperation.
“I conveyed to the Chief Minister the greetings of the President of Sri Lanka, Anurag Kumar Adishanayake, who visited India in December last year. And I also conveyed the greetings of the government and people of Sri Lanka. I explained to him that the people of Sri Lanka have been watching Gujarat and Gujarat’s progress and development for long years, ever since Prime Minister Modi was Chief Minister of Gujarat and that the people of Sri Lanka actually looked to the Gujarat model of development as a model,” she said.

She further said that Sri Lanka has lot of interest in Gujarat.

“There has been lots of interest in Gujarat. I also told him about the ancient links between Gujarat and Sri Lanka because Gujarat has the longest coastline and both the people in Gujarat and the people in Sri Lanka are both seafaring nations. And we are maritime nations in that sense. Gujarat is a maritime state, Sri Lanka is a maritime nation. We both have deep water ports, and Sri Lanka handles a large volume of India’s transhipment trade,” she said.

Colonne recalled Sri Lankan Prime Minister Harini Amarasuriya’s visit to India, where she offered that India can use Sri Lanka’s ports as gateways to the world.

“When our Prime Minister was here last month, she emphasized that India can use Sri Lanka’s ports as gateways to the world. So we discussed all this. And then we also discussed about opportunities in textiles, pharmaceuticals, hospitality industry, tourism,” she said.

Colonne said that the signing of an MoU between the parties will pave the way for greater collaboration.

“I think the areas for cooperation between Gujarat and Sri Lanka are limitless. And I told him that this morning we signed an MoU, the Ceylon Chamber of and the Gujarat Chamber of Commerce and Industry and that will probably be the start or the first step in a fruitful collaborative partnership between Gujarat and Sri Lanka for mutual prosperity of Gujarat and the people in Gujarat and the people in Sri Lanka,” she said.

Gujarat Chamber of Commerce and Industry (GCCI), organised an Interactive Meeting with the Sri Lankan Delegation on Thursday.