August 28, 2014 (LBO) -The Central Bank of Sri Lanka and the People’s Bank of China entered into a Bilateral Investment Agreement on Bond Investment on the 25th August 2014, which enables the Central Bank of Sri Lanka to further diversify its reserves management activities into Chinese Renminbi denominated assets.
As a result, the Central Bank of Sri Lanka could now access one of the largest and growing securities markets in the world, while also enhancing the cooperation between the two central banks, and the two countries.
Governor of the Central Bank of Sri Lanka, Ajith Nivard Cabraal exchanged the Bilateral Investment Agreement with the Governor of the People’s Bank of China,Zhou Xiaochuan, at a special signing ceremony held at People’s Bank of China, Beijing.
China is the 18th largest export market for Sri Lanka with exports of 121 million US dollars in 2013 which accounts for one percent of total exports of Sri Lanka data showed.
Sri Lanka imports three billion US dollar worth products from China.