CBSL restores Money Changers’ licences

A representative of an Authorised Money Changer speaks during their meeting with the Central Bank Governor Nivard Cabraal 

The Central Bank of Sri Lanka (CBSL) has restored licences of 27 Money Changers who had not been able to meet targets due to the COVID-19 pandemic.

CBSL Governor Nivard Cabraal, who after meeting the money changers, tweeted saying that they assured of their close cooperation to meet the targets for 2022.

Authorised Money Changers come under the supervision of the CBSL.

There were 11 authorised entities who are permitted to buy, sell and exchange foreign currencies and around 35 who are authorised to buy and exchange foreign currencies.

Restricted Dealers are authorised to deal in foreign exchange in terms of the provisions of Section 4 (2) (a) and 4 (2) (b) of the Foreign Exchange Act (FEA) No. 12 of 2017 subject to the provisions of Section 9 of FEA subject to certain terms and conditions.  Restricted Dealers are permitted to: Purchase foreign currency against Sri Lanka rupees; Exchange foreign currency for any other foreign currency (except hotels), and only selected Restricted Dealers can engage in selling foreign currency against Sri Lanka rupees.

Apart from banking and non-banking financial institutions, as per CBSL laws, the money changing business should be conducted only by a company incorporated in Sri Lanka with a stated capital of not less than Rs. 15 million. If a Money Changer wishes to have branches, two branches may be opened without additional capital, provided that one branch is established outside the Western Province and more than two branches may be permitted subject to a further contribution of Rs. 5 million to the capital of each new branch.