The Central Bank of Sri Lanka (CBSL) has issued a special statement urging the public to strictly adhere to the Financial Transactions Act, No. 42 of 2011. According to subsection 10(2) of the Act, no individual or entity, other than a licensed financial company or those specified in subsection 10(6), is permitted to use the terms 'money,' 'financing,' or 'finance'—either alone or in combination with other words, or any related abbreviation or equivalent term in another language—without prior written approval from the CBSL.
This provision is aimed at regulating the use of certain financial terminology to ensure that only authorized institutions engage in business activities that involve financial services.
The Central Bank further emphasized that failure to comply with this regulation will result in the offender being guilty of an offense, as outlined in subsection 56(4) of the Act.
The CBSL has strongly advised individuals and businesses to review and ensure their practices align with this legal requirement to avoid any legal repercussions.
