CB designates Chinese “Renminbi” for banking transactions

The Monetary Board, at its meeting on 27 June 2011, has decided to include the Chinese Renminbi in the list of designated currencies permitted for international transactions through banks in Sri Lanka in terms of the provisions of the Banking Act. Accordingly, the public can now undertake all permitted transactions in foreign currency in Renminbi with banks authorised for such transactions.

The other currencies in the designated list are Australian Dollar, Canadian Dollar, Danish Kroner, Euro, Hong Kong Dollar, Japanese Yen, New Zealand Dollar, Norwegian Kroner, Pound Sterling, Singapore Dollar, Swedish Kroner, Swiss Franc and United States Dollar.

China is recognised today as the world’s second largest economy, while also being a leading player in international trade, investments, and foreign reserves. It also enjoys extensive economic connections with many countries, as a result of which the Renminbi has been gradually evolving as a globally acceptable currency. Since Sri Lanka too has a growing volume of trade and investments transactions with China, the use of the Chinese currency, Renminbi, in banking transactions would significantly facilitate such trade and investments.