While cryptocurrency cannot be used for transactions within Sri Lanka, investing in virtual currencies is not illegal, due to the absence of specific legislation regulating the sector, according to Central Bank Governor Dr. Nandalal Weerasinghe.
Speaking at a media briefing, Dr. Weerasinghe clarified that only the Sri Lankan Rupee is legally permitted for domestic transactions, and even foreign currencies like the US Dollar cannot be used locally without special approval from the Central Bank.
The Governor’s remarks come amid public debate surrounding cryptocurrency, following recent revelations that Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe owns digital assets. The disclosure was made through the Minister’s asset and liability declaration submitted to the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).
Dr. Weerasinghe stressed that while crypto transactions are prohibited, investments in cryptocurrency remain outside the scope of current legal restrictions. “There is no legal framework yet that prohibits the act of investing in cryptocurrency,” he said.
He noted that Sri Lankans are encouraged to invest in regulated avenues such as treasury bills, the Colombo Stock Exchange, gems and jewellery, and casinos, all of which are monitored under local anti-money laundering regulations.
To prevent the misuse of digital assets for money laundering, the Central Bank is working with the government to draft new laws targeting virtual asset service providers. These laws are expected to be introduced next year.
