News
Significant risks in investing in cryptocurrency – CB
The Central Bank of Sri Lanka (CBSL) has warned the public that there are significant risks associated with using and investing in cryptocurrency.
Issuing a press release, the CBSL said crypto-trading is widely promoted by certain entities as a profitable investment. However, recent complaints received by CBSL have shown that members of the public have incurred heavy losses on their crypto-investments and in certain instances have also been subject to financial scams conducted through crypto-related schemes.
Given below is the CBSL press release: “Considering the recent public inquiries and the developments observed relating to cryptocurrencies, which are also commonly referred to as “crypto”, the Central Bank of Sri Lanka (CBSL) wishes to reiterate to the public of the significant risks associated with using and investing in cryptocurrency. Cryptocurrency is a type of virtual currency that is generated by private entities and not by a monetary authority of a country. The term ‘cryptocurrency’ refers to a digital representation of value that is implemented using cryptography and Distributed Ledger Technology (DLT) or similar technology. It is observed that crypto-trading is widely promoted by certain entities as a profitable investment. However, recent complaints received by CBSL have shown that members of the public have incurred heavy losses on their crypto-investments and in certain instances have also been subject to financial scams conducted through crypto-related schemes.
“CBSL has already highlighted, through Press Releases issued in 2018, 2021, and 2022, the significant financial, operational, legal and security related risks as well as customer protection concerns posed to users of cryptocurrency. These risks and concerns have already materialised with the recent failures of various global institutions engaged in cryptocurrency businesses, and the collapse and loss of value of some cryptocurrencies. The public is reminded that cryptocurrencies are unregulated investment instruments which are not recognized as an asset-class in Sri Lanka. Further, cryptocurrencies are not considered as legal tender in Sri Lanka and have no regulatory safeguards relating to their usage in the country. As per the Directions No. 03 of 2021 under Foreign Exchange Act, No. 12 of 2017, Electronic Fund Transfer Cards (EFTCs) such as debit cards and credit cards are not permitted to be used for payments related to cryptocurrency transactions. Cryptocurrency operates through informal channels, and therefore, it does not contribute to the national economy and can also cause a loss of valuable foreign currency to the country.
“The public is also warned of the growing number of financial scams operating with the promise of high returns based on crypto-investments. These scams include deceiving individuals and obtaining money from them with the promise of providing a high return by investing money in cryptocurrency, as well as deceiving individuals to invest in fraudulent cryptocurrency projects. Such scams circumvent traditional regulatory and legal protection mechanisms, resulting in individuals losing their hard-earned money.
“CBSL strongly advises the public to safeguard their hard-earned money and not to invest or engage in any cryptocurrency scheme offered through the Internet, other forms of media, or directly by any persons. The public is also notified that CBSL has not issued any licence or authorized any individual or business to operate schemes involving cryptocurrency, and has not authorized any Initial Coin Offerings (ICOs) or any variant of it, cryptocurrency mining operations, cryptocurrency exchanges, deposit-taking or custody services related to cryptocurrency or any cryptocurrency investment advisory service.
CBSL also urges those who are engaged in promoting and facilitating the promotion of investing and trading in cryptocurrency to refrain from such activities, considering the wide range of risks associated with cryptocurrency and the resulting hardships to the public, including financial losses.”
The French Navy Ship ‘BEAUTEMPS BEAUPRE’ which arrived in Sri Lanka on a goodwill visit (09 May 25), departed the island on Tuesday (13 May).
The Sri Lanka Navy bade customary farewell to the departing ship at the Port of Colombo, following naval traditions.
During the ship’s stay in Colombo, crew members of ‘BEAUTEMPS BEAUPRE’ visited some tourist attractions in the country. In addition, the Commanding Officer and a group of
crew members of the ship called on senior officers of the Sri Lanka National Hydrographic Office (SLNHO) to discuss key hydrographic matters of bilateral importance.
News
“Clean Sri Lanka” joins hands to Improve facilities and sanitation at Kotmale Regional Hospital
Following the bus accident in the Garandiella area of Kotmale, a large number of injured individuals were admitted to the Kotmale Regional Hospital for treatment. In response, the “Clean Sri Lanka” programme has collaborated to improve the facilities and sanitation of the hospital.
Accordingly, the “Clean Sri Lanka” programme actively worked to clean the hospital ward complex and the hospital premises, aiming to create a comfortable environment for the patients’ treatment and to enhance other facilities.
A notable aspect was the voluntary participation of the local community in this effort. The “Clean Sri Lanka” secretariat appreciates the dedication shown by the doctors and hospital staff of the Kotmale Regional Hospital, who provided emergency treatment to those injured in this unexpected incident despite having access to limited resources.
Flaws in law blamed for chaos
The Samagi Jana Balawegaya (SJB) is in turmoil over naming of members to the Colombo Municipal (CMC) where it won 29 slots – 14 elected and 15 on the list at the recently concluded Local Government elections.
Political sources said that resistance was growing within the party over moves to accommodate defeated candidates as well as those listed at the expense of successful candidates. Among the defeated is SJB’s mayoral candidate Dr. Ruvaiz Haniffa.
Sources said that in terms of the Local Government Election Act there was no restriction in the number of defeated candidates that could be accommodated at the expense of those who were elected. As 25% of the members of a particular council has to be women, more successful members had to be dropped, sources said, pointing out that none of the female candidates were among the 14 SJBers elected at ward level.
The National People’s Party (NPP) won the CMC by securing 48 seats, including six from the list. Political sources said that in spite of both NPP and SJB declaring that they could a secure majority in the 117-member CMC. NPP polled 81,814 votes (48 seats), SJB polled 58,375 votes (29 seats), UNP polled 26,297 votes (13 seats), SLPP polled 9,341 votes (05 seats), SLMC polled 8,630 votes (04 seats) Independent Group 03 polled 5,934 votes (03 seats), Independent Group 05 polled 4,659 votes (02 seats)
United Peace Alliance polled 4,473 votes (02 seats), Sarvajana Balaya polled 3,911 votes (02 seats), Independent Group polled 3,640 votes (02 seats), People’s Alliance polled 2,754 votes (01 seat), National Freedom Front polled 2,398 votes (01 seat), United Republican Front polled 2,157 votes (01 seat), Independent Group 01 polled 1,909 votes (01 seat), Independent Group 02 polled 1,791 votes (01 seat), Democratic National Alliance polled 1,370 votes (01 seat) and National People’s Party polled 950 votes (01 seat).
Political sources said that the Local Government Election Act had caused much turmoil with many of those who had been elected by the people deprived of an opportunity to serve their respective local government body. Sources alleged that the system in place at Local Government was far worse than appointing defeated candidates to Parliament through the National List. In terms of the Parliamentary Election Act, an elected member could be replaced only by the candidate who polled the next highest number of votes at the election from the same district, sources said, pointing out Local Government winners at ward level were axed to accommodate both defeated as well as those on respective lists of political parties.
Sources said that once the appointment of all CMC members was finalised the number of elected people axed by political parties could be known. Sources said that perhaps political parties and election monitoring groups should inquire into the shortcomings in the Local Government Election Act.
by Shamindra Ferdinando
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