The Financial Intelligence Unit (FIU) of the Central Bank of Sri Lanka has launched a mandatory survey targeting Sri Lanka VASP operators, marking the first step in registering virtual asset service providers ahead of the country’s upcoming AML/CFT evaluation in 2026.
FIU begins mandatory Sri Lanka VASP survey ahead of AML/CFT evaluation in 2026
Sri Lanka’s Financial Intelligence Unit has officially begun a mandatory survey to collect information from individuals and entities engaged in Virtual Asset Service Providing (VASP) activities. This move comes as part of a broader regulatory plan to map the country’s virtual asset sector and strengthen its compliance framework.
Under the new guidelines, any person or business engaged in exchanging virtual assets for fiat currency, exchanging one or more types of virtual assets, transferring virtual assets, or holding and administering such assets may fall under the VASP category. This also includes entities that offer financial services related to the sale or issuance of virtual assets.
Virtual assets such as cryptocurrencies, utility tokens, security tokens and NFTs are considered digital representations of value that can be traded or transferred electronically. While trading exists, Sri Lanka’s current foreign exchange laws do not permit the use of virtual assets for payments.
The FIU’s mandatory survey is being carried out as part of preparations for Sri Lanka’s third Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) evaluation, scheduled to begin in March 2026. Regulators say the initiative aims to strengthen oversight and minimize potential money-laundering channels through virtual asset markets.
Central Bank Governor Dr. Nandalal Weerasinghe recently stated that the assessment will focus on high-risk sectors such as casinos, gems, and virtual assets. As part of the regulatory roadmap, VASPs will be required to register with the Central Bank. Data collected through the survey will be used to set out compliance expectations and monitoring measures for the sector.
This survey marks an important step in aligning Sri Lanka’s regulatory environment with global standards. It also signals that the virtual asset market, including cryptocurrency activities, will come under closer supervision. Businesses and individuals identified as Sri Lanka VASP operators are expected to complete the survey and register to avoid penalties or restrictions.
Market analysts believe the move could help Sri Lanka strengthen its reputation in the global financial system and reduce risks associated with illicit financial flows. It also opens the door for more structured policy discussions on digital assets in the country.