Sri Lanka, July 10 -- Eventhough, the Sri Lankan Rupee (LKR) remains the only recognized legal tender under the Central Bank of Sri Lanka Act, No. 16 of 2023, Cryptocurrency earnings in Sri Lanka are now officially subject to taxation as "other income" by the Inland Revenue Department, Deputy Minister of Finance and Planning, Dr. Anil Jayantha Fernando told Parliament yesterday.

Cryptocurrencies cannot be used to execute standard commercial payments or financial system settlements in Sri Lanka. But, The Inland Revenue Department (IRD) will classify all profits generated via cryptocurrency transactions, trading, and related virtual asset activities under "other income" for income tax evaluation.

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