The Central Bank of Sri Lanka (CBSL) has warned residents and businesses against using foreign currency for transactions within the country.
The Central Bank said it has observed cases where residents conduct payments in foreign currency instead of Sri Lankan Rupees.
Under the Central Bank of Sri Lanka Act No. 16 of 2023, all transactions between residents must take place in Sri Lankan Rupees. The law allows exceptions only when the Central Bank grants approval under the Foreign Exchange Act No. 12 of 2017.
The CBSL clarified that it has not authorized local merchants to accept foreign currency payments from local customers. Merchants also cannot convert Sri Lankan Rupees into foreign currency and credit those funds to any Foreign Currency Account. This restriction applies to payments made using credit cards, debit cards, and other Electronic Fund Transfer Cards.
The Central Bank stressed that both the payer and the merchant commit an offence if they complete such transactions without approval. A resident who pays a local merchant in foreign currency breaks the law. A merchant who accepts that payment also violates the Act.
A Magistrate’s Court may impose strict penalties upon conviction. The law allows a fine of up to Rs. 25 million. Offenders may also face imprisonment for up to three years. In some cases, courts may impose both penalties.
The Central Bank urged the public and the business community to follow the legal framework strictly. It emphasized that compliance protects monetary stability and prevents serious legal consequences.
More News:
ADB Reaffirms Development Support During Courtesy Call on President Dissanayake
Central Bank of Sri Lanka (CBSL)
Last modified: February 12, 2026
