CBSL restores money changing licenses of entities failing to meet targets

The Central Bank (CBSL) today restored the licenses of several Money Changers who were unable to meet the targets due to issues stemming from the Covid-19 pandemic.

CBSL Governor shared via Twitter that the financial sector regulator today restored licenses of 27 Money Changers as they had assured close cooperation to meet the targets for 2022.

According to the guidelines specified by the CBSL, entities can only engage in money-changing business if incorporated in Sri Lanka and has a stated capital of Rs. 15 million or more.

On a calendar year basis the licensed entities must have an annual turnover (per outlet) of US$ 1 million for purchasing and US $ 3 million for selling, in the initial two years.

For the third and fourth years in business, the entities are required to have an annual turnover of US$ 1.5 million for purchasing and US$ 4 million for selling.  From the fifth year onwards the turnover should be of US$ 2 million and US$ 7 million per annum.

The CBSL guidelines specify that in the event a company fails to raise the respective income, a new permit will not be granted for the following year on the expiration of the validity of the existing permit