Politics · Sri Lanka Bureau
Sri Lanka moves to regulate cryptocurrency sector and protect investors
The Central Bank and government are developing a comprehensive regulatory framework for virtual assets to safeguard the public from cryptocurrency fraud. The initiative was announced at the Sri Lanka FinTech Festival 2026 in Colombo.
LSN Sri Lanka ·
Sri Lanka's monetary authorities are establishing new legal and supervisory measures to govern the cryptocurrency sector and shield consumers from large-scale virtual asset scams, according to Central Bank Governor Dr Nandalal Weerasinghe.
Speaking at the Sri Lanka FinTech Festival 2026 in Colombo, Dr Weerasinghe outlined the Central Bank and government's coordinated approach to strengthen oversight of digital assets. The initiative encompasses developing necessary legal frameworks, implementing supervisory mechanisms, and establishing safeguards to mitigate risks in the rapidly evolving cryptocurrency market.
The move reflects growing concerns over unregulated virtual asset schemes that have affected investors across South Asia. By introducing formal regulatory structures, authorities aim to create a secure environment for legitimate fintech innovation while preventing fraudulent operations.
The announcement signals Sri Lanka's commitment to balancing financial sector modernisation with investor protection. Further details on the regulatory framework's specific provisions and implementation timeline are expected in coming months as the government and Central Bank advance their policy work.