The Foreign Exchange Act No. 12 of 2017 grants the Central Bank of Sri Lanka (CBSL) exclusive authority to promote and regulate all foreign exchange transactions in the country (1). This modernized legislation replaced the outdated Exchange Control Act and established clear guidelines for the domestic forex market (2).
Under this Act, only Licensed Commercial Banks acting as Authorized Dealers may deal in foreign exchange for current and capital transactions. All other persons—whether residents or non-residents—are expressly prohibited from undertaking forex trading or remitting funds abroad for such trading purposes (1).
"Any other person in, or resident in Sri Lanka is not permitted to undertake forex trading transactions or remit funds outside Sri Lanka for such transactions and receive income or profit earned from forex trading."
Individuals wishing to participate in forex trading must do so through CBSL-approved channels. Unauthorized dealings not only contravene the Act but also carry penalties under its provisions, ensuring investor protection and financial stability (2).
Source:
https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/press/notices/notice_20191021_unauthorized_foreign_exchange_trading_e.pdf
https://www.srilankalaw.lk/f/1611-foreign-exchange-act.html
Last updated: 17-05-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
