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The Cabinet of Ministers earlier this week approved revising regulations to be tabled in Parliament for approval, aimed at strengthening oversight of money and value transfer services and closing regulatory gaps in line with Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) standards.
The updated framework issued under the Payment and Settlement Systems Act, No. 28 of 2005 introduces key revisions to the Payment or Value Transfer Service Providers Regulations, originally issued as Regulations No. 1 of 2024.
The earlier framework had restricted eligibility for registration to companies incorporated under Sri Lanka’s Companies Act, No. 07 of 2007, excluding companies limited by guarantee, offshore entities, and foreign-registered companies.
However, authorities identified that several foreign money or value transfer service providers were continuing to operate in Sri Lanka through local agents despite not being eligible to obtain registration under the existing rules, creating regulatory and compliance gaps.
To address this, the newly issued Money or Value Transfer Service Providers Regulations No. 1 of 2025, published via Extraordinary Gazette No. 2468/06 dated 23 December 2025, revises the earlier framework to explicitly allow foreign money or value transfer service providers to obtain registration, subject to regulatory requirements.
The revised provisions are intended to strengthen AML/CFT compliance, improve oversight of cross-border payment flows, and bring all operators of value transfer services within a formal supervisory framework administered by the Central Bank of Sri Lanka.
The move is also expected to improve regulatory clarity in the remittance and digital payments sector, particularly at a time when foreign exchange inflows and formal channel usage remain key policy priorities.
The proposal to this effect was submitted by President Anura Kumara Dissanayake in his capacity as the Finance, Planning and Economic Development Minister.
