Former United National Party Deputy Leader and Parliamentarian Ravi Karunanayake has accused the Central Bank of Sri Lanka of failing to properly regulate cryptocurrency transactions, claiming the lack of oversight has contributed to capital outflows from the country.
Speaking in an interview with CeylonWire, Karunanayake argued that the Central Bank should have taken a more proactive role in regulating the sector instead of responding only after economic problems emerged.
He said he first raised concerns about cryptocurrency regulation in Parliament last year, questioning the legal status of digital asset transactions and the absence of a clear regulatory framework.
According to Karunanayake, the response he received from the Central Bank at the time was that cryptocurrency was “neither legal nor illegal.”
He also questioned why income generated through cryptocurrency transactions was not subject to taxation, while other forms of income are taxed.
Karunanayake argued that the absence of effective regulation and taxation has enabled funds to leave the country without adequate oversight and called for stronger measures to regulate cryptocurrency-related financial activities.
