Transactions among Sri Lankans are only in rupees, dollars are prohibited - Central Bank's law

Except in cases where special permission has been granted by the Central Bank of Sri Lanka, authorities strongly emphasize that all transactions conducted between residents of this country must mandatorily be carried out only in Sri Lankan Rupees. This official clarification has been issued by the Central Bank following recent reports that certain individuals in the country are using foreign currency for their domestic transactions.

It has also been further pointed out that, including payments made through electronic cards, the Central Bank has not yet granted any permission for converting Rupees into foreign currency and crediting domestic payments to foreign accounts.

Engaging in such illegal financial activities is an offense that entails serious legal consequences under the legal frameworks of the Central Bank of Sri Lanka Act No. 16 of 2023 and the Foreign Exchange Act No. 12 of 2017. Following relevant legal action, individuals found guilty of these offenses may be subject to a fine not exceeding 25 million Rupees or rigorous or simple imprisonment for a term up to three years, and in some instances, the court may impose both penalties.