The Central Bank of Sri Lanka (CBSL) has warned that transactions between residents must be conducted in Sri Lankan Rupees, unless authorised under the Foreign Exchange Act.

CBSL stated it has not granted approval for local merchants to accept payments in foreign currency from residents, including via credit or debit cards.

Any resident making payments in foreign currency, or any merchant accepting such payments without authorisation, commits an offence under the CBSL Act, No. 16 of 2023.

Upon conviction, penalties include a fine of up to Rs. 25 million, imprisonment of up to three years, or both.