Bank of China adds Sri Lanka to its 54-country network

• Fourth largest global bank sees immense potential in Sri Lanka
• Reiterates Sri Lanka’s crucial role in One Belt One Road Initiative 

 Sri Lanka has become the 54th country in the world to join the expansive network of the world’s fourth largest bank, Bank of China, underlining the vast opportunities and potential that Sri Lanka offers to the growing links of global trade and commerce that China currently spearheads. 

Bank of China’s branch in Sri Lanka will be located at the historic Cargills building at No. 40, York Street, Colombo 1 in the heart of Colombo.  

With posted total assets of $ 2.7 trillion, which makes it the fourth largest in the world, Bank of China, which for the last 29 years has continued steadfast in the honour roll of Fortune Global 500 companies, will offer its extensive range of domestic and international banking facilities with a particular focus on the corporate segment.  

While ancient tales speak of strong Chinese-Sri Lankan trade relations from almost the beginning of civilisation, modern trade relations were spurred in 1952 with the signing of the Rubber Rice Pact.  

At a gala dinner heralding this milestone of Bank of China’s entrance into Sri Lanka, Chief Guest Ranil Wickremesinghe stated: “Asia is going to be a global powerhouse and China a major player in this equation. It is Sri Lanka’s strategic location which enables engagement with other countries in this region and the world and China’s continuing status as a trailblazer in global trade and commerce that has seen relations between our two countries expand significantly. Sri Lanka is destined to play an integral role in the One Belt One Road Initiative (OBOR) mooted by the Chinese Government, which will interlink 70% of the global population and 30% of global trade. This is why Sri Lanka has signed an FTA with China. Bank of China has an important role to play in Sri Lanka’s economic framework in this global development strategy, both to make finance available for Sri Lankan enterprises as well as in infusing Chinese and global investment into Sri Lanka.”

Articulating Bank of China’s mission to bring the world to Sri Lanka while also building a world-class bank in the new era, Chairman of the Board of Supervisors of Bank of China, Wang Xiquan, said: “We are enthusiastic about this new chapter we are inking with Sri Lanka. This will not only support the Sri Lankan Government’s infrastructure development initiatives but will also strengthen Sri Lanka’s economy through Chinese investment. Our ultimate mission is to ensure that our clients succeed and that benefits accrued will permeate to all stakeholders.”  

Wang added that Bank of China intends taking a lead role in financing large infrastructure and civil engineering projects with global credit lines, syndicated and refinance loans, buyer and supplier credit and trade financing with a particular emphasis on Renminbi transactions and other facilities aimed at middle- and large-scale corporates.  

“With ‘People First’ as our guiding principle, we bring cutting-edge technology, world-class expertise, well-honed banking traditions and global excellence into Sri Lanka given our spirit of ‘pursuing excellence’,” he added.

Endorsing the strengths the two countries possess in aggressively driving global trade to new heights, Central Bank Governor Dr. Indrajit Coomaraswamy articulated that Bank of China’s entrance into Sri Lanka marks a win-win formula for both Bank of China and players in the Sri Lankan economy.  

“Bank of China brings in vast potential in trade and investment for Sri Lanka, while also enabling Sri Lanka to integrate into the global economy. With its vast clientele spread across the globe, Bank of China is well placed to leverage innumerable commercial opportunities that will be of significant advantage to Sri Lanka.” 

He added that with the new dimensions evolving through Bank of China, it would be extremely timely to have PPPs being mooted, which at this point is a high priority in Sri Lanka’s development process, while also opening up opportunities for cross-border product sharing networks for SMEs.  

Chinese Ambassador Cheng Xueyuan reiterated that Sri Lanka and China together form a robust partnership to augment world trade and commerce.  “We are seeing a new era dawn for Sri Lanka, strengthening the relations the two countries have had both culturally and commercially for centuries. As Bank of China makes its mark in Sri Lanka, not only will it pave the way for numerous opportunities in developing trade and commerce between the two countries but will also pave the pathway for Sri Lanka to achieve its goal as the international finance and logistics hub for this region.”

Formally established in 1912, Bank of China, which for a period even performed the role of China’s Central Bank, International Exchange and Trade Bank, is now present in 54 countries manned by a team of over 30,000 from around the world.  

It remains the only Chinese bank to have been in continuous operation for over a century and is a leader in the international financial services industry, designated as a Global Systemically Important Bank, the only financial institution from emerging economies to be so designated.  Firmly established among the Fortune Global 500 for the last 29 years, its presence in all continents covers major financial centres including New York, London, Frankfurt, Hong Kong, Singapore and Melbourne.  

Pix by Ruwan Walpola