Sri Lanka tightens rules on forex dealers

Sri Lanka's state minister of defence Ruwan Wijewardene (L) takes part in a press conference in Colombo on April 24, 2019. - A Sri Lankan security dragnet hunting those responsible for horrifying bombings that claimed more than 350 lives has scooped up a further 18 suspects, police said April 24, as pressure mounted on politicians to explain why no one acted on intelligence warnings. (Photo by ISHARA S. KODIKARA / AFP) (Photo credit should read ISHARA S. KODIKARA/AFP/Getty Images)

Sept 02, 2009 (LBO) – Sri Lanka has tightened rules on foreign exchange dealing issuing a direction that specifies qualifications and experience of dealing room personnel, Central Bank Governor Nivard Cabraal said. The new rules comes soon after Nations Trust Bank, a licensed commercial bank, reported 800 million in forex losses following trades which the bank said was in breach of its own rules.

“We want to bring some order into the system,” Governor Cabraal said. “Some standards are expected from everyone and we want to make it less subjective.”

The new direction from the regulator specifying qualifications and experience of dealers will be effective from September 01.

Banks will be given six months to comply with the rules. Existing staff will be given three years to get the necessary qualifications, Cabraal said.