Committee Formed in Sri Lanka to Study Digital Currency and Blockchain Prospects

In a major move, Srilanka has taken a step forward into the digital currency world by forming an expert committee to study this emerging industry along with facets such as blockchain technology and put forward recommendations to the GovernmentvernmentGovernmentnt.

The Committee

This initiative is a brainchild of the Sri Lankan minister for Digital Technology and enterprise development, Namal Rajapaksa. This five-member committee will study the regulatory and enterprise best practices that Malaysia, United Arab Emirates (UAE), the Philippines, and Singapore have adopted to foster digital currency in their respective lands. In a press release by the director of government information, it was mentioned that to keep pace with the other developing nations, Sri Lanka needs to adopt an integrated system of blockchain and cryptocurrency mining technology and digital banking.

The committee members are all experts in their own right, an eclectic mix of professionals ranging from the chair of the Sri Lankan Securities and Exchange Commission Viraj Dayaratne to political activist Milinda Rajapaksha. Others include the Colombo Stock Exchange CEO, Rajeeva Bandaranaike; director of payments at the Central Bank of Sri Lanka Dharmasri Kumarathunge; and representatives from PricewaterhouseCoopers (PwC) and Mastercard, Sandun Hapugoda, and Sujeewa Mudalige, respectively.

Promoting FDI

This is a major move to promote Foreign Direct Investment into the island nation. The government believes the globally trending crypto-economy should find an official entry here too so that the country becomes more investor-friendly. This initiative is also in alignment with the country’s national policy framework, a government popularly called Vistas of Prosperity and Splendor.

Digital currencies have otherwise been in use lately in Sri Lanka. There is a reported 730% hike in digital currency trading between April 2020 to May 2021. The government now sees the need for developing a system of digital banking, blockchain, and cryptocurrency mining, to be on par with the other nations that are its partners in the region and also to aid in expanding trade to the international markets.