The Central Bank of Sri Lanka has gazetted amendments to the Money or Value Transfer Service (MVTS) provider framework, updating the definition of MVTS, tightening eligibility conditions for registration, and introducing a transitional pathway for existing unlicensed providers to regularise their status. The amended definition covers services involving the acceptance of cash, cheques, other monetary instruments or other stores of value, and payment of a corresponding sum to a beneficiary via communication, message transfer or a clearing network, including transfers within Sri Lanka and cross-border flows, with inbound and outbound activity subject to the Foreign Exchange Act. Registration eligibility now requires Sri Lanka-incorporated applicants to be Companies Act companies with unimpaired capital of at least LKR 15 million (or another amount determined by the Central Bank), excluding companies limited by guarantee and offshore companies, to exclusively carry out MVTS business within Sri Lanka, and to operate a system or well-defined mechanism for providing MVTS. Foreign-incorporated applicants must be authorised by their home authorities to conduct money or value transfer activities and have unimpaired capital of at least USD 200,000 (or equivalent). The rules also restrict agents of registered MVTS providers from accepting deposits, dealing in foreign exchange, granting loans, or conducting other activities requiring separate licensing or authorisation, and impose naming restrictions on Sri Lanka-incorporated registered MVTS providers to avoid terms suggestive of other regulated activities. Registered MVTS providers must notify the Central Bank in writing within ten working days of specified structural changes, with affidavits required for changes in directors or the chief executive officer. Existing MVTS providers operating in Sri Lanka without any licence, permit or authorisation must apply for a certificate of registration by 31 March 2026 and may continue operating until the Central Bank communicates on their application, provided the application is logged within the deadline. The amendments take effect from 31 December 2025.
Central Bank of Sri Lanka 2025-12-23
Central Bank of Sri Lanka revises MVTS provider registration rules with LKR 15 million capital floor and 31 March 2026 deadline for unlicensed firms
The Central Bank of Sri Lanka has amended the Money or Value Transfer Service (MVTS) provider framework, updating the definition and tightening registration eligibility. New requirements include a minimum capital threshold for both Sri Lanka-incorporated and foreign applicants, and restrictions on activities and naming for registered providers. Existing unlicensed providers must apply for registration by 31 March 2026, with the amendments effective from 31 December 2025.