The South Asian nation has warned its citizens against using the virtual currency due to its large unregulated nature.
The CBSL has not given license or authorization to any entity to operate in the nation and does not consider cryptocurrencies as legal tender.
The central bank said it had not authorized any initial coin offerings or mining operations in the country. Virtual currencies have no regulatory oversight or safeguards related to their usage in the country.
The Department of Foreign Exchange of CBSL does not allow the use of electronic fund transfer cards for payments related to virtual currency.
The local economy has been badly affected by the debt crisis. The South Asian nation, which fell into default in May this year and is struggling to secure essential imports from other nations, reported that inflation had reached a year-on-year record in June.
The total market value of final goods and services fell in the first quarter of the year.
Many Sri Lankans have invested in other assets and cryptocurrencies due to the falling value of the local currency.
Major Cryptocurrencies aren't having a good time. In a matter of months, the value of the market has plummeted. The reversal of gains coincides with a decline in public stock markets.
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