Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe has clarified that while cryptocurrencies cannot be used for transactions within the country, there is no legal barrier preventing Sri Lankans from investing in them due to the absence of specific laws or regulations.
The issue came into the spotlight after it was revealed that Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe owns cryptocurrencies, as disclosed in his assets and liabilities declaration submitted to the Commission to Investigate Allegations of Bribery or Corruption.
Addressing a press conference in Colombo today, Governor Weerasinghe stressed that only the Sri Lankan rupee can be used for domestic transactions, adding that even US dollars cannot be used without Central Bank approval. Special provisions, however, apply to importers and exporters.
He noted that Sri Lankans are permitted to invest in a wide range of avenues, including treasury bills, the Colombo Stock Exchange, gems, jewellery, and regulated casino transactions, all of which fall under local laws designed to curb money laundering.
The Governor also revealed that new legislation is being drafted to regulate cryptocurrency service providers. These laws, expected to be enacted next year with government support, will require virtual asset service providers to register with Sri Lanka’s Financial Intelligence Unit (FIU).
According to Dr. Weerasinghe, this framework will ensure data sharing with the Central Bank and help prevent crypto platforms from being misused for money laundering purposes.
