The commission will review regulatory frameworks from other countries before proposing the most effective framework for Sri Lanka
The Government of Sri Lanka announced Friday that it has approved the formation of an eight-member commission to study how other countries regulate digital assets. The Department of Government Information (DGI) highlighted the European Union, Dubai, Malaysia and the Philippines as key examples to be examined in order to better understand approaches to blockchain technology and related activities.
The commission’s launch will align with Sri Lanka’s national policy framework, which stresses the importance of building a technology-driven society. Authorities plan to use the commission’s findings to help close the gap between Sri Lanka and its international partners and to support the country’s digital transition.
“The need to develop an integrated system for digital banking, blockchain and crypto-mining technology has been identified to keep pace with global partners in the region while expanding trade to international markets,” the press release stated.
In addition to benchmarking how partner jurisdictions handle cryptocurrency, digital assets and mining, the commission will study consumer protection and criminal-risk mitigation measures. Its remit includes reviewing Know Your Customer (KYC) procedures, Anti-Money Laundering (AML) controls, counter-terrorist financing safeguards and other measures to address criminal activity involving digital assets.
The eight-person commission brings together professionals from diverse backgrounds and senior roles across organizations. Notable members named include Sandun Hapugoda, Mastercard’s country manager for Sri Lanka and the Maldives, and Sujeewa Mudalige, managing partner at PricewaterhouseCoopers Sri Lanka.
Sri Lanka’s policy stance on blockchain and cryptocurrencies has not yet been firmly established. By creating a dedicated commission, the government aims to formulate a clearer regulatory approach that could encourage investment in the country’s crypto sector. At the same time, growing public interest in digital assets is increasing pressure on policymakers to adopt constructive, risk-aware frameworks.
A recent Chainalysis report noted significant growth in crypto adoption across South and Central Asia and Oceania. The report highlighted a 706% increase in activity for the region and observed that many Asian countries are leading in user adoption, while European markets continue to dominate transaction value.
Despite interest in digital innovation, Sri Lanka’s government and regulators remain cautious about cryptocurrencies. In April the Central Bank issued a warning to the public about crypto investments, citing the absence of clear regulation, high volatility, and the potential for misuse in criminal activities ranging from terrorism financing to financial fraud.