Citi’s global transaction services (GTS) has launched an Rmb trade settlement service in Sri Lanka.

As the trade volumes between Sri Lanka and China continue to grow, the service will support Sri Lankan companies by eliminating cross-currency exchange risks, Citi says in a statement.

The bank’s new settlement services will serve corporations involved in international trade while enabling companies to open and maintain accounts in Rmb and make payments directly to beneficiaries.

Dilshan Seneviratne, head of Citi’s GTS in Sri Lanka, says: “We saw the recognition of the RMB as a settlement currency by the Central Bank of Sri Lanka as an opportunity to help our clients eradicate currency exchange risks. This realisation drove the launch of the RMB settlement services in Sri Lanka.”

China finances the majority of Sri Lanka’s largest infrastructure projects, provides credit and is one of the biggest investors in the country. China also remains a key market for the Sri Lankan government in supporting its ongoing economic growth, Citi says.