📈 China: Wider RMB Use Key to Sri Lanka's Recovery & Stability

• Chinese Ambassador Qi Zhenhong stated that the broader use of the Renminbi (RMB) can significantly strengthen Sri Lanka's macroeconomic stability and lower foreign-exchange risks during its recovery. • Benefits highlighted include stabilising the LKR, reducing exchange-rate risk for bilateral trade and investment, and boosting financial system modernisation. • Global RMB Adoption: • Cross-border RMB receipts & payments totalled RMB 35 Trillion (approx. US$ 4.9 Tn) in 1H 2025, representing a 14% Year-on-Year increase. • Over 80 countries/regions now hold RMB reserves, and clearing banks have been established in 33 countries. • The RMB is the 3rd largest currency in the IMF's Special Drawing Rights (SDR) basket, holding a 12.28% share. • The Ambassador suggested a diversified system utilizing RMB offers greater stability and inclusion for developing nations compared to the existing USD-dominated framework. • Expanding cooperation with China through the RMB is timely as Sri Lanka undergoes a critical period of economic adjustment.