MP Ravi Karunanayake today pressed the Finance Minister in Parliament regarding Sri Lanka’s regulatory approach and oversight gaps in cryptocurrency and digital asset transactions.
Karunanayake raised concerns following a recent Rs. 290 million cryptocurrency fraud under investigation, highlighting the observation by the Colombo Chief Magistrate that funds are leaving the country due to loopholes in the current regulatory framework.
He recalled previously raising the issue on January 23, 2025, when the Central Bank of Sri Lanka Governor described cryptocurrency transactions as “neither legal nor illegal.”
The MP sought clarity on the government’s current policy on digital asset trading, measures taken since early 2025 to monitor cryptocurrency transactions, and the impact of the absent legal framework in enabling capital flight via platforms such as Binance.
He also questioned the taxation of crypto profits, mechanisms to track transaction volumes in 2023, 2024, and 2025, and the coordination among the Central Bank, Financial Intelligence Unit, and Criminal Investigation Department to prevent fraud and money laundering.
Karunanayake further urged the government to explain how it plans to catch up with international peers such as India, Singapore, Thailand, and the UAE in regulating digital assets.
