SL CB and Chinese CB to invest in bonds, reserves
View(s):China’s Central Bank is to invest in Sri Lankan Central Bank bonds while the latter will in turn invest its reserves in the Chinese currency under an agreement signed on Monday.
The Bilateral Investment Agreement on bond investments between the Central Bank of Sri Lanka and the People’s Bank of China the Central Bank to further diversify its reserves management activities into Chinese Renminbi denominated assets. As a result, the Central Bank (CB) 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, the local regulator said in a media statement.
CB Governor Ajith Nivard Cabraal and People’s Bank of China Governor Zhou Xiaochuan signed the agreement on behalf of their respective institutions at a ceremony held at the People’s Bank of China, Beijing.
Sri Lanka’s Ambassador to China Ranjith Uyangoda, CB Deputy Governor Dr. Nandalal Weerasinghe, CB Director International Operations H. A. Karunaratne and Superintendent of Public Debt N. W. G. R. D. Nanayakkara along with several senior officers of the People’s Bank of China also participated at the ceremony.