Sri Lanka, Aug. 22 -- A new law has been passed to curb fraudulent activities related to cheques in Sri Lanka. The Bills of Exchange (Amendment) Act No. 13 of 2025, which was implemented on 15 August, significantly increases the penalties for issuing cheques without the necessary funds.

The new legislation grants judges the authority to impose fines matching the value of the cheque, a custodial sentence of up to two years, or both. This covers several previously unpunished actions, including writing cheques from an account with insufficient funds, exceeding an overdraft limit, or stopping a payment without a valid reason.

Opposition lawmaker Ajith P. Perera commented that the new law fills a gap where previously only cheques from closed...