Court orders CBSL to curb crypto-related fraud

2026-03-13 - 02:47

Colombo Chief Magistrate Asanga S. Bodaragama yesterday (March 12) ordered the Central Bank of Sri Lanka (CBSL) to take immediate measures to prevent cryptocurrency-related fraud, citing concerns that large sums of money are being transferred overseas through such schemes due to loopholes in the Foreign Exchange Act. The magistrate stated that many people lack proper awareness of these sophisticated scams, which are carried out using modern technology without the knowledge or approval of the CBSL. He further noted that complaints related to financial fraud linked to such activities are being increasingly reported to courts on a daily basis. The Chief Magistrate pointed out that certain individuals have exploited loopholes in the Foreign Exchange Act to commit financial fraud, and instructed the Criminal Investigation Department (CID) to work together with the CBSL to raise public awareness about cryptocurrency scams. He also emphasized the need for the CBSL to implement a proper programme to educate the public about cryptocurrency and related financial risks. Furthermore, the court ordered the CBSL to take necessary steps to curb these scams and submit a report to the court on the actions taken. The directive was issued when a case involving a cryptocurrency fraud of over Rs. 290 million, allegedly carried out through a private bank, was taken up before the court yesterday. (Source: Aruna)