CB suspends license of well-known money changer for offering high rate for dollars

The Central Bank of Sri Lanka (CBSL) yesterday suspended the money-changing permit of Prasanna Money Exchange, for offering higher exchange rates above the rates specified by banks.

The well-known money changer is the first to have its permit suspended after the Central Bank issued a warning that stern action would be taken against entities that are offering premiumsabove the rates offered by licensed banks.

 The suspension has been implemented after an on-site investigation carried out by the Department of Foreign Exchange of CBSL after several complaints received from the general public.

CBSL said investigations revealed that Prasanna Money Exchange had offered higher exchange rates and thereby attempted to purchase foreign currency from its customers at higher rates than the exchange rates offered to them by licensed banks.

The money changer has violated the direction issued to Authorized Money Changers under the Foreign Exchange Act No. 12 of 2017 (FEA), the CBSL said.

 Accordingly, the CBSL has decided to temporarily suspend the permit issued to Prasanna Money Exchange (Pvt) Ltd under the provisions of the FEA, with effect from 31.03.2022.

 “The public is hereby informed that the Prasanna Money Exchange (Pvt) Ltd is no longer permitted to engage in money changing activities as an Authorized Money Changer with effect from 31.03.2022.

The public is also informed that any transaction with the Prasanna Money Exchange (Pvt) Ltd during the period of suspension is considered as a contravention with the provision of FEA,” the CBSL said.

 The Central Bank has intensified its on-site investigations at authorised money changing outlets. It stressed that it will stand ready to suspend or revoke permits of authorised moneychangers who do not adhere to the directions issued under the Foreign Exchange Act.