Unauthorised forex transfers to become criminal offence

Wednesday, 19 August 2026 05:28 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers has granted policy approval to amend Sri Lanka’s Foreign Exchange Act No. 12 of 2017 to make unauthorised transfers of funds overseas a criminal offence.

The proposal to amend the Act was presented by President Anura Kumara Dissanayake in his capacity as Minister of Finance, Planning and Economic Development.

Unauthorised...

Under the proposed amendments, specific provisions will be introduced to enable unauthorised overseas transfers to be treated as criminal offences under the Foreign Exchange Act, allowing investigative and law enforcement agencies to take action under the relevant legal framework.

The Government cited instances where persons in Sri Lanka transfer funds overseas as advance payments for importing goods but subsequently fail to import the corresponding goods within a reasonable period.

Such transactions could be considered unauthorised transfers of foreign exchange out of the country, according to the Cabinet proposal.

Under the existing provisions of the Foreign Exchange Act, the Central Bank of Sri Lanka (CBSL) can impose only a financial penalty in Sri Lankan rupees equivalent to the value of the unauthorised transfer.

However, such transfers are not currently defined as criminal offences under the Act, limiting the scope for criminal prosecution.

The proposed amendments are intended to strengthen enforcement powers by enabling authorities to pursue criminal action against persons involved in unauthorised overseas fund transfers.