Forex Brokers in Sri Lanka
Forex trading in Sri Lanka is popular amongst residents who are looking to buy and sell currencies to speculate on the fluctuating currency market prices. Whilst international forex brokers can accept traders in Sri Lanka as clients, forex brokers in Sri Lanka are required to become authorised by the Central Bank of Sri Lanka (CBSL). However, there is no separate independent entity monitoring the securities and exchange markets in Sri Lanka which is why many Sri Lankan traders look to regulated forex brokers that are located overseas.
Best forex brokers Sri Lanka
To find the best forex brokers in Sri Lanka, we created a list of all the forex brokers that accept clients in Sri Lanka and then ranked them based on our overall rating. You can see our list of our top forex brokers for Sri Lanka below.
ASIC, BaFin, CFTC, DFSA, FCA, FINMA, FMA, FSA, FSCA, JFSA, MAFF, MAS, METI, NFA
CBSL forex brokers in Sri Lanka
The main financial market regulator in the country is the Central Bank of Sri Lanka (CBSL). It operates under the governance of the Foreign Exchange Act, which came into force in 2017. Notably, under that act, there were three groups of individuals/institutions created that were officially permitted to deal with Forex operations in Sri Lanka. Those are:
- Authorized Dealers
- Restricted Dealers
- Dealers for a Specific Purpose
The Securities and Exchange Commission of Sri Lanka (SEC) was established in pursuance of the Securities and Exchange Commission of Sri Lanka Act, No. 36 of 1987 as amended by Act No. 26 of 1991, Act No. 18 of 2003 and Act no. 47 of 2009.
The objectives of the SEC include:
- Creation and maintenance of a market in which securities can be issued and traded in an orderly and fair manner.
- Protection of the interest of investors.
- Operation of a Compensation Fund to protect investors from financial loss arising as a result of any licensed stock broker or licensed stock dealer being found incapable of meeting his contractual obligations.
- The regulation of the securities market and to ensure that professional standards are maintained in such market.
How to verify CBSL regulated brokers in Sri Lanka
Brokers that accept Sri Lankan traders and investors do so without authorization from any financial body in the country. There’s no forex governing institution in Sri Lanka, therefore forex trading needs to be conducted through an offshore broker, ideally one that is regulated by a top tier regulator such as the FCA, ASIC or CySEC.
You can find an authorised broker’s license number from the disclosure text at the bottom of their homepage. You can then look up the authorisation number on the regulator website to confirm if the forex broker is regulated in Sri Lanka to provide online forex trading products and services.
Some Sri Lanka forex brokers are regulated in more than one jurisdiction so that they can offer a different range of trading accounts and conditions depending on the location of the trader and regulated entity that they choose to open a forex trading account with.
Is forex trading legal in Sri Lanka?
Only FX brokers who have been approved by the Exchange Control department are permitted to conduct foreign exchange business by the Central Bank of Sri Lanka. Foreign-based traders are exempt from this rule.
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