Sri Lanka Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in Sri Lanka, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals.
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Trade Financing
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Methods of Payment

Trade finance in Sri Lanka encompasses a variety of payment methods, currency exchange, risk management, regulatory compliance, trade documentation, and a variety of trade finance products. The Central Bank of Sri Lanka regulates both domestic and foreign banks, oversees payment methods, manages foreign exchange controls, and monitors correspondent banking relationships.

Sri Lankan businesses have historically faced challenges such as credit risk and limited access to funding in international trade. Key players in trade finance include commercial banks, export credit agencies, development finance institutions, multilateral organizations, and non-banking institutions, such as factoring and insurance companies. These entities also provide risk management products such as credit insurance, guarantees, and hedging instruments.

To clear goods through customs, importers must submit relevant shipping documents certified by a commercial bank along with customs declaration forms to the Department of Customs. Imports made on an advance payment basis may be released upon submission of satisfactory proof of payment, such as bank confirmations. Imports made on a consignment-account basis may be released upon submission of clearance documents.

For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide.

To access Sri-Lanka’s ICS section on financing, visit the U.S. Department of State Investment Climate Statement website.

Banking Systems

The Central Bank regulates Licensed Commercial Banks, Licensed Specialized Banks, Licensed Finance Companies, Registered Finance Leasing Establishments, Authorized Primary Dealers, and Authorized Money Broking Companies. The legal and supervisory framework is defined in the Central Bank of Sri Lanka Act, the Banking Act, the Finance Business Act, and the Finance Leasing Act.

Sri Lanka currently has 24 Licensed Commercial Banks (including 11 foreign banks), six Licensed Specialized Banks, and 34 Licensed Finance Companies. Licensed Commercial Banks provide standard banking services, including demand deposits and current accounts, while Licensed Specialized Banks focus on specific sectors. Both types of banks are authorized to conduct foreign exchange transactions.

Effective January 1, 2025, the Central Bank implemented  new regulations under Banking Act Directions No. 05 to strengthen corporate governance in licensed commercial and specialized banks. These rules are intended to align Sri Lanka’s banking system with international best practices, including the Basel Committee’s core principles for effective banking supervision.

Foreign Exchange Controls

Sri Lanka eliminated exchange control restrictions on current account transactions on March 15, 1994, and began liberalizing capital account transactions in 2010. The Foreign Exchange Act of 2017 further relaxed restrictions on capital flows.

Projects approved by the BOI are generally exempt from capital controls. Non-residents are permitted to invest in a range of capital transactions, including company shares, debt securities, loans, unit trusts, immovable property, Sri Lanka Development Bonds, and government securities.

U.S. Banks & Local Correspondent Banks

Citibank is the only U.S. bank operating in Sri Lanka. All Sri Lankan commercial banks maintain correspondent relationships with U.S. banks.

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

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As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

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