Exchange Issue

The Exchange Control Department of the Central Bank of Sri Lanka, has
cautioned the public not to buy foreign exchange from moneychangers, a
type of dealer who is only authorised to buy foreign exchange from the
public. The Exchange Control Department of the Central Bank of Sri Lanka, has
cautioned the public not to buy foreign exchange from moneychangers, a
type of dealer who is only authorised to buy foreign exchange from the
public. At the end of the day, foreign exchange balances with the dealers are
supposed to be handed over to a commercial bank, but in practice most
dealers also sell foreign exchange to members of the public for rupees.

“If a moneychanger sells foreign exchange against rupees, not only the
money changer but also the person who buys foreign currency from the
money
changer contravenes the provisions under Section 5(1) of the Exchange
Control Act and thereby commits an offence punishable under Section 51
of
the Exchange Control Act,” the Central Bank warned.

“For such an offence, a penalty up to 3 times of the value of the
foreign
exchange so purchased or sold could be imposed.”

Members of the public routinely buy foreign exchange from
moneychangers,
whose two way q