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THE CRYPTO DILEMMA!

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By Namali Ratnayake,
Thuwaraka Ganeshan and Ramani Muttettuwegama

The Crypto-wave

While we will all remember 2021 for the seemingly endless waves of the pandemic, the crypto market will also similarly be remembered. The shifts in cryptocurrency prices have not affected the proliferation of variations of cryptocurrencies. A classic example of this was seen by the sudden skyrocketing of Dogecoin – a crypto currency initially created as a lighthearted joke for crypto enthusiasts – a mere two hours after Elon Musk included the Doge avatar into the new Twitter logo.

The blockchain space in Sri Lanka has similarly witnessed considerable turbulence, since the recent crypto scam which swindled more than 15 billion Sri Lankan rupees ($46.6m) from more than 8,000 Sri Lankan citizens. Yet despite the major challenges faced over the years, the crypto market continues to grow, with the price of Bitcoin rising above $30,000 in April, igniting a cycle of news claiming that the crypto winter is finally over!

What are cryptocurrencies?

Cryptocurrency is a digital currency that does not rely on the banking system to verify transactions. Instead, transactions are verified through a peer-to-peer network via a digital ledger known as blockchain. This technological development has paved the way for transactions to take place outside the centralized banking channel, causing dilemma to regulators globally.

How are cryptocurrencies created?

Cryptocurrencies are created through a process called ‘mining’. However, mining cryptocurrencies does not require sweat and blood, but rather the ability to solve a complex mathematical algorithm known as proof-of-work, and of course a great level of energy consumption.

How do I buy cryptocurrencies?

Cryptocurrencies can be obtained through the process of mining. Further, this can also be bought and exchanged via investment platforms and crypto exchanges.

There is a widespread public interest on cryptocurrencies globally, with a variety of cryptocurrencies proliferating the global market. Whilst regulators around the world took a wait and see approach to cryptocurrencies two years ago, there is now a shift in the global regulatory stance towards crypto. Many countries have introduced and are introducing laws to regulate cryptocurrencies, while some others have taken steps to ban cryptocurrencies completely.

Can transactions be made in cryptocurrencies in Sri Lanka?

Sri Lankans too have been caught up with the crypto craze! The announcement by a well-known Sri Lankan retailer in October 2021, of its decision to accept payments in Bitcoins evinces the potential acceptance of crypto currencies in the retail market which may very soon become widespread.

The question that then comes to light is “whether this is legal in Sri Lanka?”

Presently there are no laws and regulations regulating cryptocurrencies. However, the Central Bank of Sri Lanka (CBSL) has not turned a blind eye towards cryptocurrencies. In discharging its function of maintaining financial stability in the country, the Central Bank has warned the public of the potential issues that cryptocurrencies raise. A brief notice issued in 2018 highlighting money laundering and terrorism financing risks was followed by a more detailed notice in 2021.

In 2021 the CBSL expressed concerns on the risks posed by virtual currency and emphasized the following:

● No regulatory or specific legal recourse for transaction/user disputes

● Risk of losses due to volatility

● Money laundering and terrorism financing risk

● Violation of Foreign Exchange laws and regulations

Further, in March 2023, the CBSL, warned the public of the growing number of financial scams operating with the promise of high returns based on crypto investments.Recourse for such financial scams under the consumer protection laws in Sri Lanka require transactions to be made for ‘money consideration’ under the Sale of Goods Ordinance 11 of 1896 of Sri Lanka.

The quandary however is whether cryptocurrencies can be classified as money and the approach to this has not been consistent globally. While countries like China have taken a drastic approach of completely banning cryptocurrencies, others like El Salvador and the US appear to support the view that cryptocurrency may equate to money. There have also been instances where different regulators within the same jurisdiction have taken a differing stance on this question – the crypto dilemma!

Whether cryptocurrencies are classified as ‘money’ is legally untested in Sri Lanka.

The Monetary Act identifies “Sri Lankan Currencies” as Legal Tender. What this means is that in the absence of an agreement to the contrary the mode of payment between the parties will be the Sri Lankan currency.

However, this does not prevent parties using currencies without “Legal Tender” status in private transactions. As such persons may use any mode of exchange in a private transaction. Therefore, retailers and consumers can transact with cryptocurrencies, as was recently witnessed when a payment gateway for bitcoin was used to accept crypto payments for the first-ever International Music Festival in Sri Lanka earlier this year.

The only downside is the crypto industry remains unregulated in Sri Lanka, therefore parties enter into such transactions at their own risk, as they may not be able to exercise their rights as a consumer.

However, parties may still be able to bring an action in the court of law for breach of contract for any breach of contractual terms by either party.Ultimately, whether the law should recognize cryptocurrency as satisfying the Sale of Goods Ordinance, requires the following questions to be considered:

Should ‘money’ include more than fiat currency in the 21st century?

If a key objective of the Sale of Goods Ordinance is to regulate commercial trade, can we achieve this by allowing the use of an unregulated commodity to pay the price of goods?

Way forward?

Whilst technological innovation in providing financial inclusion is much applauded, this cannot be at the risk of the stability and security of the financial system. Laws, although a necessity must also be formulated in a manner that understands and takes into consideration the technology underpinning cryptocurrencies. In this regard, Sri Lanka’s announcement of an establishment of a special committee, with private and public sector participation, to formulate policy on crypto-related activities in 2021 was much welcomed. This will increase investor confidence and pave the way for a stable financial market, whilst ensuring that Sri Lanka is on par with its Asian neighbor Singapore, in promoting itself as a technology hub!

(The writers belong to the legal firm, Tiruchelvam Associates)



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The hard challenge of clinching a political settlement in the Middle East

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Bruised hearts: Displaced Palestinian civilians in the Gaza.(Photo by Mustafa Hassona/Anadolu via Getty Images)

Despite some sections of the Trump administration persisting with the view that the possibility could not be entirely ruled out of there being a diplomatic solution to the current US-Iran hostilities in West Asia, the skeptic could not be blamed for thinking otherwise. The intensity, scale and frequency of the tit-for-tat strikes by the antagonists over the past few days against selected military targets and civilian infrastructure in particular in West Asia make the adoption of this stance excusable.

The continuing hostilities render the mentioning of the MOU signed between the warring parties in mid-June a laughable matter. While it could very well be that the foes are wishing privately for a cessation of hostilities before long, what seems to be uppermost on their minds right now is to negotiate with each other from a position of strength. This strategy compels them to incapacitate each other militarily to the extent possible, lest they have to concede too much to each other during negotiations. Hence the stepped-up hostilities.

However, even on the question of there being a negotiated political settlement in the West Asian theatre in the longer term, the skeptic could come to be seen as scoring over the optimist. Developments on the ground account for this.

At the time of writing Israel’s Netanyahu government is going ahead in fairly care-free fashion with the establishment of more Jewish settlements in the Gaza and the West Bank, and it’s all happening under the apparently complacent gaze of the US. In fact, some quarters estimate that Israel is in control of some 65% of the Gaza Strip. Ethnic cleansing, that is, is being drastically stepped-up.

Accordingly, in terms of the power relations of West Asia, the world is almost back to the status quo of the late forties of the last century when the state of Israel was established and the Palestinians were reduced to a microscopic minority in the land they came to inhabit. Therefore, even the impartial observer would be compelled to ask: ‘Will a negotiated peace be ever possible in the Middle East?’

The humanist in the observer would prefer to answer this question in the affirmative and it is indeed the ideal stance to adopt considering the staggering human and material costs of the conflict. But the way ahead to peace could be expected to be highly hazardous and arduous. Among other odds, it would also prove an uphill endeavour to win minds and hearts.

The US’ Trump administration would need to be counted out in this pursuit. This is on account of the fact that it has been far too wayward in its management of West Asian affairs in particular over the past couple of years. Given its unpredictable character it is a matter for conjecture whether it could be counted on to live up to its commitments.

Moreover, Israel could be expected to ‘go it alone’ in the Middle East regardless of whether US help is coming or otherwise. It has indicated as much in recent times and Israel could be doubted on this score only at the doubter’s peril. Because time and again Israel has demonstrated that it could steadfastly defend its interests even single-handedly in the Middle East. History bears this out.

However, a durable alliance with the US would stand Israel in good stead. On the matter of military and intelligence assistance, for example, the US’s help proved invaluable for Israel in the past and going forward this is bound to be so as well. Moreover, it is unlikely that the Trump administration would give up on Israel, considering that a strong Israel is crucial for the furtherance of the US’ strategic and economic interests in West Asia.

But whether the above factors would have a considerable bearing on the question of working out a durable solution to the West Asian tangle is an entirely different matter. Israel, as in the case of the Palestinian enclaves, is acutely security conscious and would need to satisfy itself fully that it could live in a security environment that would guarantee its complete safety, going forward.

The Middle East is badly in need of another peace effort on the lines of the Oslo Accords of the mid-nineties that brought the key actors together and helped hammer out a solution that addressed some of their notable concerns. To be sure, that process did not prove to be the ideal answer to the tangle, but it yielded some respite to the region and drove home that one-time sworn foes could indeed negotiate with a degree of success. The West Bank authority, although falling short of fulfilling some key Palestinian aspirations, is testimony that a degree of success is possible if the intent is right.

Given the current realities of West Asia, peace-making is bound to be an uphill challenge. The violence faced in recent times by the Palestinian community, in particular, has been nothing less than mind-numbing. Merciless has been the violence visited on them by the Israeli side. In such circumstances, durable peace in the region could smack of an idealist’s dream.

Nevertheless, there needs to be urgently, a meeting of minds over the divides. The US would need to be counted out as an honest broker in bringing the sides together but the rest of the West would do well to step up to the challenge.

In this exercise the onus would be on the world’s democracies to take the initiative and doggedly stay the course. An acceptable combination would be the EU and the UN. Given their credentials, the main sides in West Asia ought to find them the least controversial.

Even if the relevant institutional and political arrangements could be shored up to take a reconciliation process forward, winning hearts and minds for the peace drive would prove a grueling challenge. Over the past few years in particular tens of thousands of hearts and minds on both sides of the divide have been bruised badly in the runaway murderous violence that has come to define the Middle East.

These badly scarred personalities would need to experience healing without much delay. It is therefore a multi-faceted challenge that is at hand. Since wide-ranging expertise would be needed in the healing process, people’s participation in peace-making, ranging over the divides, would need to be made a durable reality. It will be a time for enthroning humanity and ensuring the rejection of all forms of violence and coercion.

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Features

Amazing Thailand …right here in Colombo

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For many Sri Lankans, Thailand is the go-to holiday — beaches, temples, food, and that famous warm hospitality.

In fact, I’ve been to Amazing Thailand 24 times myself, and was honoured with the Friends of Thailand International Media Award by the Tourism Authority of Thailand for promoting Thai tourism.

The good news I have for you today is that you don’t even need a passport to get a taste of Amazing Thailand.

The Royal Thai Embassy, in Colombo, is bringing a vibrant slice of Thailand, to the city of Colombo, with Thai Festival 2026 — a cultural experience like never before.

Whether you are an avid enthusiast of Thai culture, a total novice, or simply just interested in exploring foreign cultures, Thai Festival 2026 is going to be the perfect opportunity for you to get more than just a glimpse into one of the most celebrated cultural heritages in South East Asia. And ENTRANCE IS FREE.

The festival will be held on the 1st and 2nd of August, 2026, at Siam Nivasa, 43, C.W.W. Kannangara Mawatha, Colombo 7, and the East Parking Area, of the Colombo Municipal Council, from 11:00am to 5:00pm.

Both days will be full of live entertainment, and dispersed throughout with Thai cultural displays, including exhilarating traditional dance performances and breathtaking Muay Thai demonstrations.

Exploring art and craft specific to Thailand, tasting irresistible authentic Thai cuisine, and playing arcade games, are just a few more fun-filled events available for visitors at the festival premises.

An array of Thai products will also be available for purchase.

While at the festival, you will find Sri Lankan Alumni from Thai universities sharing their experiences with you and willing to answer any questions you might have, related to studying abroad in Thailand.

You can also register for the Muay Thai workshop that will be happening on the 7th and 8th of August, 2026, in Colombo.

Irresistible authentic Thai cuisine

Visitors can also stand a chance to win traditional Thai souvenirs, get exclusive photo opportunities, and, the big one — to enter the raffle draw, at the end of each day, for the grand prize of an all-inclusive round trip to Thailand.

Be sure to avail yourself of this exceptional opportunity and add a cultural spin to your weekend.

To keep up with the latest updates on Thai Festival 2026, head over to the Thai Festival official social media pages.

The Royal Thai Embassy in Colombo official webpage:

https://colombo.thaiembassy.org

Official social media:

Facebook: @RTEColombo

Instagram: @thaiembassysrilanka

Thai Festival official social media:

Facebook: Thai Festival in Colombo

Instagram: @thaifestival_colombo

TikTok: @thaifestival.incolombo

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Features

Thicker, stronger hair …

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Hair fall, in this heat, can be so frustrating, and noticing a thin patch is even more worrying. The good news is … yes, with a little care and kitchen ingredients, you can nourish your scalp and support healthy regrowth.

Try these four easy home remedies … even our grandmothers trusted:

*  Coconut Oil and Curry Leaves Tonic:

Warm 04 tablespoons of coconut oil, with a handful of curry leaves, till the leaves turn black. Cool, strain, and massage into scalp 02-03 times a week. Leave for 01 hour, or overnight.

Why:

Coconut oil deeply nourishes, while curry leaves help strengthen roots and add shine.

Onion Juice for Spot Treatment:

With cotton, dab the juice of 01 small onion, directly on the thin/bald patches. Leave for 20-30 minutes, and then wash with a mild shampoo. Use twice a week.

Why:

Rich in sulfur, onion juice helps boost blood circulation to the scalp.

Aloe Vera and Castor Oil Mask:

Mix 02 tablespoons of fresh aloe vera gel and 01 tablespoon castor oil and apply to the scalp, focusing on thinning areas. Leave for 45 minutes, and then rinse with cool water.

Why:

Aloe vera soothes the scalp, while castor oil coats hair to make it look thicker.

* Fenugreek and Curd Strengthening Pack:

You will need 02 tablespoons fenugreek seeds, soaked overnight, and 02 tablespoons plain curd.

Grind to a paste, apply to scalp for 30 minutes, and then wash.

Why:

Fenugreek strengthens strands and reduces breakage.

Extra Tips for Healthy Hair:

Avoid tight hairstyles that pull on the scalp.

Eat iron and protein rich foods: greens, dhal, eggs, fish.

Use lukewarm water, not hot.

Be gentle when brushing and drying.

Manage stress — it plays a big role in hair fall.

Important: If bald patches are growing, or there is itching/redness, please consult a dermatologist.

Home remedies support hair health, but a doctor can find the exact cause.

Remember, healthy hair starts with a healthy, happy you.

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