The Central Bank of Sri Lanka (CBSL), in a statement issued this morning, denied media reports it had advised banks not to accept Qatari Riyals.
The statement comes on the heels of several banks at the Bandaranaike International Airport (BIA) refusing to accept Qatari Riyals on account of their inability to clear the currency.
Banks at the BIA later lifted their suspension on accepting Qatari Riyals.
Qatar is in the middle of a diplomatic row that saw Saudi Arabia, the United Arab Emirates, Egypt, Bahrain, Yemen and the Maldives cut diplomatic relations with the Gulf country.
SriLankan Airlines meanwhile has said that it would continue flights Doha, Qatar despite several countries cutting ties with the country.