Sunday, October 17, 2021

BOC signs agreement with LankaClear

BOC GM K.E. D. Sumanasiri and Lanka Clear GM Channa De Silva exchange the MoU (Centre) looked on by senior officials.

Bank of Ceylon has been appointed as the settlement bank by LankaClear, for their inter-bank US Dollar Online Payment system (USD On-Line) and US Dollar Draft Online Image Transfer System (UITS). This selection was made through a competitive bidding process.

The agreement was signed on October 12, 2021, at the Bank’s head office by the two parties.

Central Bank of Sri Lanka (CBSL) along with other licensed public and private Commercial Banks operating in Sri Lanka own LankaClear who is the operator of the national interbank payment network on the island. Established in 2002 as the most successful Public-Private-Partnership in Sri Lanka, LankaClear functions under the brand name ‘Lanka Pay’. In 2002, LankaClear introduced Sri Lanka’s first interbank UITS while in 2015 implemented USD online payment system as policy directives of the Central Bank of Sri Lanka (CBSL).

The primary objective was to assist the economy and CBSL by minimizing the foreign exchange outflow from the country for inter-bank USD transactions. Reducing the transaction processing fees for the same and lowering the time taken to clear USD drafts were the other main tasks of these two systems. Among Sri Lanka’s registered commercial banks, 13 members participate in USD online payment systems while 22 members participate in UITS.

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