Foreign Currency Transactions between Residents in Sri Lanka.

[imhotep]

CBSL Press Release 12.02.2026

Central Bank of Sri Lanka (Central Bank) has noticed certain instances where residents in Sri Lanka transact within the country in foreign currency, rather than in Sri Lanka Rupees. In this connection, the Central Bank 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 authorized by the Central Bank for the purposes of the Foreign Exchange Act, No. 12 of 2017

Further, merchants and the general public are informed that the Central Bank has not granted any authorization for local merchants to receive any payments from its local customers to the credit of any Foreign Currency Account by converting Sri Lanka Rupees into foreign currency, including payments via Electronic Fund Transfer Cards (i.e. Credit or Debit cards).

Accordingly, any person resident in Sri Lanka making payments to a merchant in Sri Lanka in foreign currency, and/or any merchant accepting payments in foreign currency from a person resident in Sri Lanka for the supply of goods/services without authorization of the Central Bank, commits an offence under the CBSL Act and shall, upon conviction after summary trial before a Magistrate, be liable to;

➢ a fine not exceeding twenty-five million rupees (Rs. 25,000,000/-); or
➢ imprisonment of either description for a term not exceeding three (03) years; or
➢ both such fine and imprisonment

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

 

[tharakaf]

CBSL Press Release 12.02.2026

Central Bank of Sri Lanka (Central Bank) has noticed certain instances where residents in Sri Lanka transact within the country in foreign currency, rather than in Sri Lanka Rupees. In this connection, the Central Bank 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 authorized by the Central Bank for the purposes of the Foreign Exchange Act, No. 12 of 2017

Further, merchants and the general public are informed that the Central Bank has not granted any authorization for local merchants to receive any payments from its local customers to the credit of any Foreign Currency Account by converting Sri Lanka Rupees into foreign currency, including payments via Electronic Fund Transfer Cards (i.e. Credit or Debit cards).

Accordingly, any person resident in Sri Lanka making payments to a merchant in Sri Lanka in foreign currency, and/or any merchant accepting payments in foreign currency from a person resident in Sri Lanka for the supply of goods/services without authorization of the Central Bank, commits an offence under the CBSL Act and shall, upon conviction after summary trial before a Magistrate, be liable to;

➢ a fine not exceeding twenty-five million rupees (Rs. 25,000,000/-); or
➢ imprisonment of either description for a term not exceeding three (03) years; or
➢ both such fine and imprisonment

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

They are referring to people paying people/businesses in SL in currency other than LKR right?. I think that this affects all the businesses setup buy foreigners in SL targeting their people. But not sure how they will implement it

 

[imhotep]

They are referring to people paying people/businesses in SL in currency other than LKR right?. I think that this affects all the businesses setup buy foreigners in SL targeting their people. But not sure how they will implement it

Yes.. It appears like that . No other clarification issued by CBSL. Sometimes even property transactions take place where some component is paid via foreign currency which is really illegal.
Some rental properties where the resident is a foreigner sometimes the landlords do receive to a foreign account. May be to stop these.

So the residents can only pay in foreign currency at the Duty free shop.

 

[topkollek]

No other clarification issued by CBSL

This press release by CBSL just a clarification on existing acts 2023 & 2017. Not imposing new restrictions

 

[imhotep]

This press release by CBSL just a clarification on existing acts 2023 & 2017. Not imposing new restrictions

Yes, correct... but there should be some reason why they issued a reminder now.

PS: Once there was a time when you just had a 5 $ bill, you were taken into custody.

 

[reddit]

ByBit Card payment case neh ethakota

 

[tharakaf]

Yes.. It appears like that . No other clarification issued by CBSL. Sometimes even property transactions take place where some component is paid via foreign currency which is really illegal.
Some rental properties where the resident is a foreigner sometimes the landlords do receive to a foreign account. May be to stop these.

So the residents can only pay in foreign currency at the Duty free shop.

Well people like to keep their money in a currency that doesn't depreciate due to stupid shit governments do. So you cannot blame them. Even I have most of my money in SGD/USD. But that is how I get paid. Also if you keep money in a SL PFCA account you cannot do anything other than convert it to LKR if you want to use it. So if you want to access overseas investment opportunities it is always good to have the money offshore in FC.

When was this "arresting even if you have 5 dollars" thing going on?

 

[monson]

එතකොට Payoneer card එකෙන් USD -LKR වලට convert වෙලා payment කරන්න බැරිද? Keells එකේ එහෙම USD වලින්ම pay කරන්න option එකක් තියනවා. මුන්ට tax ගහන්න track කරන්න බැරි නිසාද බදු කොටා මේවා කරන්න ?

 

[imhotep]

When was this "arresting even if you have 5 dollars" thing going on?

During that wonderful era of Sirimavo regime with Nottu Maru Perera. Having 5$ is enough to be sued for foreign exchange violation. Thanks JRJ for liberalizing the economy.

 

[tharakaf]

During that wonderful era of Sirimavo regime with Nottu Maru Perera. Having 5$ is enough to be sued for foreign exchange violation. Thanks JRJ for liberalizing the economy.

Dude please don't tell me you were born before that

 

[topkollek]

Yes, correct... but there should be some reason why they issued a reminder now.

PS: Once there was a time when you just had a 5 $ bill, you were taken into custody.

I think their AML monitoring systems detect such transactions taking place. And they want to warn the public before taking actions.