Sri Lankan Government Constitutes a Committee for Recommending Crypto Policy Proposal

The Government in Sri Lanka has been considering the utilization of the crypto market and for this purpose has constituted a high-profile committee having members from private and public sectors who will recommend a crypto-friendly policy. Of course, the Government is anticipating an influx of investment coming in the country’s digital banking sector as well as associated activities and services.

It has been noted in the Sri Lankan press that the Government of Sri Lanka has constituted a high-profile special committee. The committee has been formed with the sole purpose of recommending a crypto-friendly policy that the Government wants to implement. It has been said that the members on the committee are from amongst the private as well as public sectors. The government is expecting the committee to give a proposal containing regulations with regard to companies working in three major sectors. These major sectors include blockchain, crypto mining, and digital banking along with associated services/activities.

The announcement of the formation of the committee was done by the Information Department of the Sri Lankan Government. The Department disclosed that amongst the members are the Chairman of Sri Lankan Securities & Exchange Commission and Colombo Stock Exchange’s CEO. From the Central Bank of Sri Lanka, the bank’s payment director too has been made part of the committee. Other notable members include the Chairman of the Law Drafting Committee, Sri Lankan Mastercard’s Director, and a veteran political activist. The committee will be chaired by Sri Lankan PwC’s MD namely Sujeewa Mudalige.

All the members including the chairman of the Committee will be assisting the government in drafting crypto-related laws, policy guidelines, and regulations. The members of the committee have been asked to formulate a crypto-friendly regulatory setup because the government is expecting investments. For instance, the government wants to ascertain the interest of people willing to put money in blockchain and digital banking sectors. In addition, the government intends to legalize crypto mining activity for which it needs local and foreign investors.

In this context, the Information Department commented that Sri Lanka is required to create a system that will facilitate three activities. The activities include the use of blockchain technology, facilitating the mining industry and integration of digital banking. However, the smooth functioning of the three intended activities requires the provision of crypto-friendly and conducive environment in the first place.

Namal Rajapakse, Minister for Digital Technology & Enterprise Development State was the person who convinced Government to work on the initiative. Even in the formation of the committee, Minister Rajapakse played a vital role. He, on his own, took the proposal before the Ministers on the Cabinet. Once he got the approval from the rest of the Minister, he then sought approval for constituting the high-profile committee. Again, it was him alone, who nominated the members and the Chairman on the Committee.