Wednesday Jul 29, 2026
Wednesday Jul 29, 2026
Wednesday, 29 July 2026 00:27 - - {{hitsCtrl.values.hits}}
Cabinet Spokesman and Minister
Dr. Nalinda Jayatissa
The Cabinet of Ministers at their meeting on Monday approved steps to introduce legislation to regulate virtual asset service providers (VASPs), marking a significant move towards bringing cryptocurrency-related activities under a formal regulatory framework.
The decision comes amid growing use of virtual assets by Sri Lankans through offshore cryptocurrency exchanges and peer-to-peer online transactions, which currently operate outside the country’s regulatory and supervisory framework.
Addressing the weekly post-Cabinet media briefing yesterday Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said Sri Lankan users have been able to access virtual assets; digital representations of value that can be traded, transferred or used for investment purposes, primarily through overseas platforms. However, these service providers were not subject to local registration, reporting requirements or compliance obligations, creating regulatory gaps.
He noted that the absence of oversight has heightened concerns over financial crimes, including money laundering and terrorist financing, underscoring the need for a dedicated regulatory framework and supervisory mechanism.
To address these concerns, a Sub-Committee on Virtual Asset Service Providers has been established under the chairmanship of the Digital Economy Deputy Minister. The committee comprises officials from relevant institutions and operates under the policy guidance of the National Coordination Committee (NCC) on Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT).
Following its review, the subcommittee recommended designating the Securities and Exchange Commission of Sri Lanka (SEC) as the regulatory authority for virtual asset service providers. The proposed framework envisages the SEC working within a supervisory structure coordinated by the Central Bank of Sri Lanka (CBSL), the Financial Intelligence Unit (FIU) and the Inland Revenue Department (IRD).
“Based on these recommendations, the Cabinet has approved taking the necessary legal steps to introduce a regulatory regime governing virtual asset service providers operating within Sri Lanka,” he added.
The proposal to this effect was submitted by President Anura Kumara Dissanayake in his capacity as the Digital Economy Minister.
