LNP – Banks watchful of foreign currency transactions via cards

Local banks on their own have started implementing a set of measures on limiting foreign currency transactions via debit and credit cards due to the volatility prevailing in the country’s forex market arising from the shortage of US dollars.

The Sri Lanka Bank’s Association (SLBA) shared that member banks have raised concerns on the usage of debit and credit cards for foreign currency transactions and are taking necessary measures to ensure minimal hit to the sector.

However, a blanket decision has not been made by the association as yet, SLBA Chairman Lakshman Silva said, and such a move will depend on the value and volume of foreign currency transactions happening through cards, he added.

Silva asserted that although banks are exercising caution, no limitations would be imposed on transactions made at education, hospital, airline, insurance, and hotel merchants.

SLBA chief also pointed out that as several media reports highlighted that banks were charging additional fees on foreign currency transactions, banks have held active discussions in that regard and are exploring avenues to best manage the situation.