Central Bank repeats warning against unofficial market for dollars

The Central Bank, amidst a thriving unofficial market for US dollars trading as high as Rs.240-250 per dollar compared to the official rate of Rs.203, on Monday issued another warning against the operation of the sale of foreign exchange outside the official market.

The Central Bank requested the public to provide information on unauthorised foreign currency dealings. ”Permission to buy, sell and exchange foreign currency in Sri Lanka is granted ONLY to authorized dealers (i.e. licensed banks) and money changers appointed by the Central Bank of Sri Lanka (CBSL),” the banking regulator said.

For several months now Sri Lanka has seen a thriving unofficial market for dollars with even Sri Lankan workers in West Asia opting to send money through these channels rather than established banking channels as the US dollar rate is higher.

The Central Bank said that foreign currency, shall be purchased, sold or exchanged only through an authorised dealer or an authorised money changer.

“In terms of the provisions of the Foreign Exchange Act, No.12 of 2017, engaging in foreign currency transactions without permission of CBSL by any person, institution or any other entity is an unlawful activity. Therefore, if it is noted that any person, institution or any other entity is engaged in unauthorized foreign exchange dealings, the public is hereby requested to inform the Foreign Exchange Department of CBSL,” it said