Weerasinghe rules out virtual assets for domestic payments
Central Bank of Sri Lanka Governor P Nandalal Weerasinghe said virtual assets cannot fund payments between residents under current law. At the Sri Lanka FinTech Festival in Colombo, he backed innovation subject to financial stability and consumer safeguards.
Innovation within monetary guardrails
Weerasinghe said the restriction on virtual-asset payments protects the Sri Lankan rupee from substitution in domestic transactions and safeguards monetary sovereignty.
He called for proportionate, risk-based regulation that gives innovators clarity without weakening safeguards.
Risks include cyberattacks, operational disruption, fraud, data breaches, inadequate disclosures, excessive leverage and concentration among technology providers.
Cross-border digital transactions complicate oversight, while some digital assets expose consumers to volatility and facilitate illicit finance.
The central bank supports responsible experimentation through its FinTech Regulatory Sandbox, which permits testing of eligible solutions under safeguards.
From recovery to wider access
Following the 2022 crisis, Sri Lanka spent three to four years restoring macroeconomic stability through reforms, Weerasinghe said.
He linked FinTech to productivity, investment, employment and wider access to finance.
Digital banking and payments already extend services beyond branches and banking hours, supported by interoperable LankaPay systems.
Electronic trading expands investment access.
He envisaged further innovation in open financial services, digital identity, data-driven lending, cross-border payment connectivity and investment products.
Openness has firm limits
Weerasinghe's support for FinTech does not extend to virtual assets replacing the rupee in domestic payments.
His framework combines experimentation with supervision, risk management and consumer protection.
Financial stability remains a binding constraint on innovation, not a negotiable objective.
Source: The future of FinTech
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