Sri Lanka tightens rules on forex dealers

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.