Country overview

#130
Sri Lanka

Country stats

Rating Points
45
This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.
Crypto Penetration
1.9%
Estimated percentage of crypto users out of the country's total population based on public data.
Legal Entities
0
Number of crypto companies registered in the country based on regulator data if available or other types of public data.
Regulation Points
0
An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.
Amount of crypto users
416 339
Total amount of crypto users out of the country's total population based on public data.
Taxation points
15
This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.
Market volume points
0
A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.
Status of crypto
No info
General status of cryptocurrency regulation in this jurisdiction.
Crypto payments
Ban
The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.
Security Level
Moderate danger
The overall level of security in a given country based on open data.
Crypto Salaries
Ban
The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.
Business Climate
No info
Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.
Stablecoin Regulation
No info
This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.
Bad Factors
No
This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.
Types of licenses
No licenses exist
Good
Medium
Bad
intro

This is general info about crypto regulation in Sri Lanka. A more precise overview will be published later. However, if you find any inaccuracy or have other feedback - please write us in telegram @ilya_ii or by e-mail - editor@cryptopenetration.com

Sri Lanka is an island country in the Indian Ocean. The island has a population of 22 million people and an area of 66,000 km2 according to Wikipedia(1).

When planning a trip to Sri Lanka, obtaining a Sri Lanka visa or travel authorization is a necessary step. There are several types of visas (2) available, including the Sri Lanka visit visa for short-term purposes, the Sri Lanka transit visa for layovers, and the Sri Lanka residence visa for various categories such as work, family, investment, study, religious purposes, retirement, and digital nomad. It's important to choose the right visa based on your travel intentions to ensure a smooth and hassle-free experience in Sri Lanka.

Sri Lanka has a residence permit for investors called based on Resident Guest Scheme (3). Any foreign investor/specialist who could contribute to the economic and socio-cultural enrichment of the country can apply. A visa application can be obtained from the Office of the Executive Agency of the Department of Immigration and Emigration or the website of the Immigration Service of Sri Lanka (4).

Security level
Crypto Payments

Crypto currencies and crypto payments are not regulated in Sri Lanka according to Central Bank of Sri Lanka (8), but crypto transactions with local bank cards are prohibited.

Crypto Salaries

No regulation.

Legal

Based statement of Central Bank mentioned above crypto currencies are not regulated in the country. However, Sri Lanka has ban on crypto transactions since 2017 - according to the guidelines (9) outlined in directive No. 03 of 2021 under the Foreign Exchange Act (10), No. 12 of 2017, it’s illegal to use local bank accounts for these operations. 

American billionaire Tim Draper recommended to local authorities to use of Bitcoin as a legal tender to deal with hyperinflation in the island nation. He did it during the meeting with President Ranil Wickremesinghe and Governor of the local Central Bank Nandalal Weerasinghe. However, the governor claimed (11) that crypto adoption in Sri Lanka will deteriorate the economic situation of the country.

Taxation

Based on PWC taxsummaries (12) the headline PIT rate is 36%. The headline CIT rate is 30%. Headline capital gains tax rate is 10% both for businesses and individuals.

Links

1) 👉🏻Sri Lanka. Wikipedia

2) 👉🏻Visa for Sri Lanka

3) 👉🏻Sri Lanka. VisitWorld

4) 👉🏻Immigration Service of Sri Lanka

5) 👉🏻Crime Index by Country 2023 Mid-Year

6) 👉🏻List of countries by intentional homicide rate

7) 👉🏻List of countries by firearm-related death rate

8) 👉🏻Risks of using and investing in Cryptocurrency

9) 👉🏻Sri Lanka’s Stance on Crypto and the Launch of ‘Lanka Pay’ in 2024

10) 👉🏻DEPARTMENT OF FOREIGN EXCHANGE CENTRAL BANK OF SRI LANKA DIRECTIONS No. 03 OF 2021 UNDER FOREIGN EXCHANGE ACT, No. 12 of 2017

11) 👉🏻Bitcoin Price and Ethereum Prediction: Can BTC and ETH Bounce Back From Double Bottom Support Levels?

12) 👉🏻Sri Lanka. PWC