HNB in discussion on links with Chinese banks
The Hatton National Bank (HNB) is in discussion with a few Chinese banks in a bid to set up business links, a top official said.
“We are in discussion with two banks in China and these are at the second and third stages (of negotiations),” Jonathan Alles, CEO HNB told the Business Times, affirming that these talks will be finalized (and agreement reached) within the next two months. These discussions were preceded by a high-level delegation to China in which HNB and five other banks – Bank of Ceylon, People’s Bank, Commercial Bank, HNB and Seylan had accompanied Central Bank (CB) Governor, Arjuna Mahendran and held one-to-one discussions in mid-February. The team met with China Development Bank, Asian Infrastructure and Investment Bank, Agricultural Bank of China and China Communications Bank among others.
Mr. Alles said that it’s good for Sri Lanka to forge ties with new markets, at new and attractive interest rates. Mr. Mahendran has said that the CB is planning to issue Panda bonds, a Chinese renminbi-(the legal tender in mainland China) denominated bond and that when he met with the Governor of the People’s Bank of China (the central bank of China) the latter had said that local banks can borrow in renminbi markets. According to Mr. Alles, an agreement with the International Monetary Fund (IMF) – which Sri Lanka hopes to get in the next two weeks – will give the market confidence as this showcases the confidence and the commitment that IMF has in the country. “On top of this if Chinese, JICA, ADB and Indian projects are committed, things will start looking up.”