Sri Lankans are still prohibited from using cryptocurrency for daily transactions, but there are no legal barriers to investing in digital assets, Central Bank Governor Dr. Nandalal Weerasinghe said.
Speaking at a media briefing in Colombo, Dr. Weerasinghe reaffirmed that the Sri Lankan Rupee remains the country’s only legal tender for domestic payments.
“Even US dollars cannot be used for transactions locally without special permission from the Central Bank,” he said, adding that there are specific provisions for importers and exporters.
The clarification follows recent disclosures by Trade and Commerce Minister Wasantha Samarasinghe, who listed cryptocurrency holdings in his declaration to the Bribery Commission (CIABOC), prompting questions over the legal status of digital assets.
While cryptocurrency cannot be used to settle payments within Sri Lanka, Dr. Weerasinghe said investment in virtual currencies is not illegal.
He compared such activity to investments in treasury bills, stock markets, or commodities like gems and jewellery — all of which are governed by anti–money laundering laws.
The Central Bank is working with the government to draft legislation that would require cryptocurrency exchanges and virtual asset service providers to register with the Financial Intelligence Unit (FIU).
The proposed regulatory framework is aimed at enhancing oversight, preventing illicit financial flows, and ensuring macroeconomic stability.
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