Central Bank warns against foreign currency transactions between residents

Friday, 13 February 2026 00:22 - - {{hitsCtrl.values.hits}}

The Central Bank of Sri Lanka (CBSL) yesterday cautioned that all transactions between residents in the country must be conducted in Sri Lankan Rupees, in line with the Central Bank of Sri Lanka Act, No. 16 of 2023.

In a statement, the CBSL stated that it noticed certain instances where residents in Sri Lanka transact within the country in foreign currency, rather than in Sri Lanka Rupees. “In connection with this, the CBSL wishes to clarify that according to the provisions of the Central Bank of Sri Lanka Act, No. 16 of 2023 (CBSL Act), all transactions executed between or among residents in Sri Lanka shall be made in Sri Lankan Rupees, unless otherwise authorised by the CBSL for the purposes of the Foreign Exchange Act, No. 12 of 2017.”

It firmly stressed to merchants and the general public that the CBSL “has not granted any authorisation” for local merchants to receive any payments from its local customers to the credit of any Foreign Currency Account by converting Sri Lankan Rupees into foreign currency, including payments via Electronic Fund Transfer Cards (i.e. credit or debit cards).

According to the CBSL, any resident making payments in foreign currency to a local merchant, or any merchant accepting such payments without authorisation, commits an offence under the CBSL Act and shall, upon conviction after summary trial before a Magistrate, be liable to face penalties of up to Rs. 25 million, imprisonment of up to three years, or both.

The CBSL urged the general public and the business community to strictly adhere to these statutory requirements to avoid severe legal consequences.