Chinese ambassador calls for direct use of RMB in trade with Lanka

Industrialisation of Hambantota will help Sri Lankan industries and the people, said Chinese Ambassador to Sri Lanka Yi Xianliang addressing the China Sri Lanka Infrastructure Investment Cooperation Forum at Kingsbury Hotel, yesterday.

Chinese President Xi Jinping discussed with Sri Lankan leaders when they visited China in 2015 and 2016 about industrialisation of Sri Lanka. It is quite clear President Xi Jinping would like to assist Lanka to set up a basic industry system. He said that Sri Lanka should have industry zones because land is limited in Sri Lanka. “Sri Lanka should assemble all industries to one or two zones with support of serious policy and logistics and we can help with one industry zone in Hambantota which will be a win-win for both sides.

Chinese President Xi Jinping suggested to Lankan leaders to use our currency the Chinese RMB in trade and cooperation between China and Sri Lanka-like done in many other countries such as Vietnam-Chinese companies will come back.”

He said a year ago china-SL trade was around $ 4.3 billion.

If the Chinese currency RMB was used instead of the Dollar, we can do much more bilateral trade (beyond $ 4.3 billion).

Commenting on the Hambantota Port Agreement he said that they have no idea for a military consideration there and it’s purely a business idea.“I must tell you the Chinese company that constructed the port spent more than a billion dollars earlier and again poured another $ 1.5 billion so the total cost for them is more than $ 3 billion.”

“Some people asked me whether we are crazy-why re-spend on the same port again? Even if re-spending, why not spend only around $ 600 mn? I told them I am not the person making the decision but it’s a business issue between China Merchant and Port Authority of Sri Lanka.”

“But a port is just a port. It is never an industrial zone. I will put all the efforts to push the industrial zone forward. This is also the need of Sri Lankan people. Industrialisation, that is, Made in Hambantota will help Sri Lankan industries and the people.”

Minister of Industry and Commerce Rishad Bathiudeen, said that out of US$ 801 million FDI China was the first biggest investor accounting to US $ 52 million.