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Trimmed Changers

Feb 04 (LVP) - Five moneychangers have lost their license after they failed to comply with new capital requirements set by the regulator. Moneychangers operate as a supplement to commercial banks, and can buy foreign exchange from the public in return for domestic currency.

Most operate in Colombo's Fort area.

Sri Lanka's Central Bank, which has licensed the operators, raised the required capital to Rs. 10million (US$100,000) from the earlier one million rupees.

"It is felt that entry into money changing business by corporate entities with a sound financial footing and a branch network will infuse much needed credibility into the business and contribute to a healthy growth of this sector," the bank’s Exchange Control Department said in July 2005, when making the capital.

An Exchange Control Department official said that by the January 2006 deadline only 55 moneychangers out of 60 had responded.

- LVP Newsdesk: asantha@vanguardlk.com