Central Bank of Sri Lanka has reminded the public that all transactions between residents within the country must be carried out strictly in Sri Lankan Rupees, in accordance with the Central Bank of Sri Lanka Act No. 16 of 2023.
The Central Bank noted that it has observed instances of residents conducting local transactions in foreign currency and clarified that no authorization has been granted for merchants to accept payments into Foreign Currency Accounts, including through credit or debit cards.
According to the Bank, any resident making payments in foreign currency to a local merchant—or any merchant accepting such payments without approval—commits an offence under the CBSL Act.
Upon conviction, offenders may face fines of up to Rs. 25 million, imprisonment of up to three years, or both.
The Central Bank urged both the public and the business community to strictly comply with these legal requirements to avoid serious penalties.
