The Central Bank of Sri Lanka (CBSL) has warned that all transactions between residents within the country must be conducted exclusively in Sri Lankan Rupees, in accordance with the Central Bank of Sri Lanka Act No. 16 of 2023.
The CBSL noted that there have been instances of residents engaging in local transactions using foreign currency and clarified that no authorization has been granted for merchants to accept payments into Foreign Currency Accounts, including through credit or debit cards.
The Bank stated that any resident making payments in foreign currency to a local merchant, as well as any merchant accepting such payments without approval, would be committing an offence under the CBSL Act.
Upon conviction, offenders could face fines of up to Rs. 25 million, imprisonment of up to three years, or both.
The Central Bank urged the public and the business community to strictly comply with these legal requirements to avoid serious legal consequences.
