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  • The cooperation of IZP and Sri Lanka central bank will turn Sri Lanka into a new financial center in South Asia


    On Sept. 25th, IZP technologies group chairman Luo Feng attended 2015 the 2015 Colombo International Maritime Conference. Mr. Luo met with Arjuna Mahendran, the governor of Sri Lanka central bank in capital Colombo and the both sides reached an agreement on cooperative development of the cross-border clearing system between China and Sri Lanka.

    IZP Technologies group chairman Luo Feng (left) and Sri Lanka central bank governor Arjuna Mahendran (right)

    Mr Luo mentioned that Sri Lanka has several geopolitics advantages and is an important waterway hub in the Indian Ocean. The valuable maritime location, the natural deepwater port Colombo make Sri Lanka the maritime trade portal to the market of 2 billion population in the South Asian and Africa for China. As the deployment of the One Belt and One Road (OBOR) strategy and under the background of South-South Cooperation, right now it’s the opportunity to make Sri Lanka a new financial center in South Asian Area. Also, In order to facilitate the bilateral trade and direct investment, and provide financial services between China and Sri Lanka, Globebill, which is IZP’s subsidiary focusing on cross-border settlement and clearing, will cooperate with Sri Lanka central bank to establish a Cross-Border settlement and clearing platform.

    Sri Lanka central bank governor Arjuna Mahendran said that based on the existing Sino-Sri Lanka trade and financial system, the dollar centered "Rupee – US dollar – RMB” exchange process has brought the international trade companies with high payment cost and exchange risk. Sri Lanka is willing to develop a “Rupees – RMB” cross-border settlement system with IZP, so as to reduce the cost and threshold of trade settlement of SMEs and improve bilateral trade between China and Sri Lanka.

    As the setup of south-south cooperation aid fund, China will increase investment in underdeveloped countries, and strive to reach $12 billion by year 2030. Sri Lanka is not only an important node along the “OBOR”, and is also the shipping way of China to South Asia, Africa and other regions of the least developed countries. In the long run, through the construction of “OBOR” with Sri Lanka, China can further strengthen the multilateral cooperation mechanism in South-South Cooperation, Shanghai Cooperation Organization and the BRICS. Therefore, the cooperation of IZP and Sri Lanka central bank is of great strategic significance.

    Globebill is IZP’s subsidiary focusing on providing cross-border payment and financial services for SMEs. At present, Globebill has covered acceptance and payment networks in more than 104 countries and regions, and is China's largest cross-border payment platform. Globebill is committed to reduce the cross-border settlement and payment cost of SEMs, realizing the direct exchange of local currency - RMB, speeding up the collection of SEMs, and promoting cross-border trade facilitation for SEMs.

    Globebill has deployed payment and settlement networks around the world since year 2013, and its coverage has reached central Asia (Kyrgyzstan, etc.), the Middle East (Saudi Arabia, the united Arab Emirates, etc.), Europe (Belgium, Lithuania, etc.), Africa (Angola, etc.). The approval of carrying out clearing services in Sri Lanka will speed up the pace of Globebill global layout, and providing better services to traders between the two countries.