Crypto Cannot Be Used for Payments in Sri Lanka : CBSL Chief

COLOMBO (News 1st); Central Bank Governor Dr. Nandalal Weerasinghe has reiterated that the Sri Lankan rupee remains the only legally recognized currency for domestic transactions, firmly ruling out the use of cryptocurrency or foreign currencies such as the US dollar without special approval.

Speaking on the regulatory stance, Dr. Weerasinghe clarified that while cryptocurrency is globally introduced as a form of virtual currency, Sri Lanka does not recognize it as legal tender.

“All domestic transactions must be carried out in Sri Lankan rupees,” he stated, adding that any payment in other currencies requires prior approval under the Foreign Exchange Act.
Export earners are granted limited flexibility under the Act to conduct certain transactions in US dollars. However, outside of this provision, all financial dealings within the country must be in rupees.

Sri Lanka currently lacks legislation governing cryptocurrency. Although some individuals have acquired digital assets through various means, the Central Bank does not recognize cryptocurrency as a valid investment instrument. 

Unlike regulated asset classes such as equities traded on the Colombo Stock Exchange, cryptocurrency remains outside the scope of financial regulation.

Dr. Weerasinghe emphasized that the law only recognizes the Sri Lankan rupee as the valid unit of currency, and cryptocurrency cannot be used for payments of any kind.