Sri Lanka Compliance Report

Regulatory Overview

Regulatory Status

Regulators have not addressed crypto; legal status ambiguous

Primary Legislation

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Travel Rule

Adopted — Threshold: Implemented

Tax Reporting

**Not Legal Tender:** Virtual currencies (VCs) are not recognized as legal tender in Sri Lanka.. **Unregulated:** VCs are not regulated by the CBSL and operate without any regulatory oversight or safeguards.. **Illegal for Payments:** The CBSL has prohibited regulated financial institutions from facilitating transactions involving VCs. This means VCs cannot be used for payments within Sri Lanka and engaging in such transactions carries significant risks.. **No Licensing:** No entity or company is authorized or licensed to operate, offer, or sell VCs, or provide services related to VCs (e.g., exchanges, brokers, miners) in Sri Lanka.. **Risks:** The CBSL highlights risks such as high volatility, financial losses, illicit financing (money laundering and terrorism financing), and data security risks.

Key Facts

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