ECONOMYNEXT – Sri Lanka’s central bank has cancelled the license of Prasanna Money Exchange saying it has violated foreign exchange laws.
The central bank earlier said its license had been suspended offering “higher exchange rates and thereby attempted to purchase foreign currency from its customers at higher rates than the exchange rates offered to them by Licensed Banks..”
Having conducted an inquiry into “non-compliances committed by Prasanna Money Exchange” the central bank has decided to “permanently revoke” its license, the new statement said.
Last month, Bank of Bangladesh, which had also triggered a currency crisis with low rates which led to a collapse of the Taka from around 85 to 105 suspended over 300 mobile money transfer agents for allegedly taking part in a traditional cross-border gross settlement system.
The full statement is reproduced below:
Revocation of the money changing permit issued to Prasanna Money Exchange (Pvt) Ltd
After conducting an inquiry into the non-compliances committed by Prasanna Money Exchange (Pvt) Ltd upon the temporary suspension of the permit issued to the company to engage in the money changing business at its head office and branch located at No. 42A, Mudalige Mawatha, Colombo 01 and No. 57, Galle Road, Colombo 06, respectively, the Monetary Board of the Central Bank of Sri Lanka decided to permanently revoke the permit No. DFE/RD/0058 issued to Prasanna Money Exchange (Pvt) Ltd, in terms of section 11 (3) of the Foreign Exchange Act No. 12 of 2017 (the Act).
The public is hereby informed that Prasanna Money Exchange (Pvt) Ltd is no longer permitted to engage in money changing activities as an Authorized Money Changer and buying, selling and exchanging foreign currency with Prasanna Money Exchange (Pvt) Ltd is considered as a contravention of the provisions of the Act.