Central Bank Moves to Regulate Cryptocurrency and Shield Sri Lankans from Digital Asset Scams

Sri Lanka is preparing to introduce formal regulations governing cryptocurrency and virtual assets, as authorities move to shield the public from large-scale digital financial fraud, Central Bank Governor Dr Nandalal Weerasinghe has announced.

Speaking at the Sri Lanka FinTech Festival 2026, Dr Weerasinghe revealed that both the government and the Central Bank of Sri Lanka are actively working to strengthen the regulatory framework surrounding virtual assets, signalling a significant shift in how digital currencies will be treated under Sri Lankan law.

Protecting the Public from Crypto Scams

The move comes amid growing concern over the proliferation of cryptocurrency-related scams targeting Sri Lankan citizens. Fraudulent investment schemes promising high returns through digital asset trading have reportedly caused substantial financial losses to unsuspecting members of the public in recent years.

Dr Weerasinghe's remarks underline a determination by the country's financial authorities to bring structure and oversight to a sector that has largely operated in a regulatory grey area within Sri Lanka.

A New Regulatory Era for FinTech

The announcement at the FinTech Festival signals a broader ambition to position Sri Lanka as a responsible and forward-thinking participant in the global digital finance landscape. Establishing clear rules around virtual assets is seen as essential to both consumer protection and the long-term credibility of the country's financial system.

Industry observers have welcomed the development, noting that well-crafted regulation could simultaneously deter bad actors while creating a safer environment for legitimate cryptocurrency businesses and investors to operate.

• The Central Bank and the government are jointly developing the new regulatory framework.
• The initiative is aimed at preventing large-scale cryptocurrency fraud against the public.
• The announcement was made at the Sri Lanka FinTech Festival 2026 by Central Bank Governor Dr Nandalal Weerasinghe.

Further details on the specific provisions and timeline of the proposed regulations are expected to be disclosed as the drafting process advances.

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