ECONOMYNEXT – Sri Lanka’s central bank and China’s central bank have discussed promoting renminbi‑denominated settlements between the two countries on the sidelines of the IMF-World Bank Spring Meetings 2026 in Washington. CBSL governor Nandalal Weerasinghe and People’s Bank of China governor Pan Gongsheng discussed escalated geopolitical tensions and the continued engagement between the two central banks, CBSL said. “The discussion also underscored the potential benefits of promoting renminbi‑denominated settlements for trade between China and Sri Lanka.” Weerasinghe briefed Gongsheng on recent economic developments in Sri Lanka, including emerging challenges stemming from heightened tensions in West Asia.

China has been pursuing the internationalization of the renminbi (RMB, also called the Chinese yuan or CNY) as a long-term strategy to reduce its dependence on the US dollar, enhance global trade efficiency for Chinese firms, and elevate Beijing’s financial influence. Beijing has signed bilateral local-currency swap lines with over 40 central banks totaling 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. Related story Chinese envoy backs diversifying Sri Lanka reserves, reducing FX risks from dollar usage The Colombo Port City will be a ‘dollarized’ special economic zone will not have a money monopoly but where products of many central banks including that of the Fed (US dollar), ECB (the Euro) and Peoples Bank of China (Renminbi) will compete for acceptance. Weerasinghe also met with the governor of the Reserve Bank of India Sanjay Malhotra, on the sidelines of the IMF–World Bank Spring Meetings, and discussed efforts to promote Indian rupee based settlement for trade and tourism.(Colombo/Apr20/2026)