As more and more countries become familiar with the blockchain and crypto industry, Sri Lanka has indicated a strong likelihood of leveraging the technology as well.
Sri Lanka’s cabinet is now launching a committee that will oversee the prospect of integrating digital banking, blockchain, and crypto mining solutions into its economy.
The move came amid the recent collapse of the Sri Lankan economy which has a total outstanding debt of $ 35.1billion.
The country was witnessing a sharp rise in foreign debt since 2014 which then accelerated due to the COVID-19 pandemic. The offset led the country’s foreign debt to rise to 101% of the nation’s GDP, leading its economy to crash.
In a press release issued today, the Department of Government Information highlighted the growing need to integrate digital solutions in order to attract foreign investments.
“The necessity of developing an integrated system of digital banking, blockchain, and cryptocurrency mining has been identified to pace on par with the global partners in the region while expanding trade to the international markets.”
As per the notice, the committee would study the regulatory frameworks and strategies adopted by crypto-lenient countries such as Dubai, Malaysia, the Philippines, Singapore, and the E.U to propose a regulatory structure for Sri Lanka.
The 5-member committee is also entrusted with the responsibility of studying laws and regulations to fight money laundering, terrorism financing, and other criminal activities related to the technology.