By:Staff WriterColombo (LNW): The Central Bank of Sri Lanka has decided not to renew the money changing permits for well-known communication agency Salaka and 14 others, for the year 2023.
Issuing a statement, the Monetary Board of the Central Bank of Sri Lanka said that it has decided not to renew the money changing permits of 15 money changers for the year 2023.
The decision was taken due to the non-compliance with a condition of the permits issued for the year 2022, which was communicated to the respective money changers on 22.02.2023.
Accordingly, the public has been informed that the 15 companies listed are no longer permitted to engage in money changing activities.
Central bank has banned money changers from selling US dollars above the commercial bank rates as the country grapples from a forex crisis.
When money is printed to keep rates down and exchange controls are imposed, the kerb market and Undiyal rates go up with money trying to rush out of the country and pay for imports.
The outward flow of money at high prices in turn are financed by higher rates paid to inward worker remittances.
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).
Therefore, foreign currency, shall be purchased, sold or exchanged only through an authorized dealer or an authorized 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.
The Central Bank said that buying, selling and exchanging foreign currency with such illicit companies are considered as a contravention of the provisions of the Foreign Exchange Act, No. 12 of 2017.
The public has been notified that in terms of the provisions of the Foreign Exchange Act, No. 12 of 2017, Money Changers have been prohibited from offering higher exchange rates to customers beyond the exchange rates offered to such Money Changers by Licensed Banks.
The Money Changers have been informed that their licenses would be suspended/ revoked if they transact any foreign currency transactions at rates beyond the rates stipulated by Licensed Banks.