The Central Bank of Sri Lanka has 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.
The Bank noted instances where residents have been transacting locally in foreign currency and clarified that no authorization has been granted for merchants to accept payments into Foreign Currency Accounts, including via credit or debit cards.
According to the Central Bank, any resident making payments in foreign currency to a local merchant, or any merchant accepting such payments without authorization, commits an offence under the CBSL Act.
Upon conviction, offenders face penalties of up to Rs. 25 million, imprisonment of up to three years, or both.
The Central Bank urged the public and business community to strictly adhere to these statutory requirements to avoid severe legal consequences. (Newswire)
