Monday, 02 December 2019 06:02

Sri Lanka takes measures to further advance the financial sector

Sri Lanka is set to further advance the financial sector by introducing Blockchain Technology while ensuring the safety and soundness of the banking system.

Central Bank Governor Dr Indrajit Coomaraswamy identified fintechs along with electronic payments and fund transfer systems as the pillars of modern banking development.

He revealed noteworthy Central Bank initiatives covering new technology, payment products, consumer protection and system stability.

Emerging partnerships between banks and fintechs in the country paves the way to an industry revolution; he said adding that a recent initiative by the Central Bank is aimed at establishing a less cash society.

The increasing demand for digitalised financial services has created an opportunity for Sri Lanka to evaluate the possibility of adopting Blockchain Technology to further advance Sri Lanka’s financial sector.

The Central Bank together with experts in Sri Lanka’s Financial and Information Technology (IT) industries, is assessing the possibility of applying Blockchain Technology to streamline Know-Your-Customer (KYC) processes at financial institutions.
It is expected that this would facilitate several potential use-cases that will increase efficiencies in the financial sector.

It is also expected that it would help increase financial inclusion in Sri Lanka. To pave the way for Blockchain-based financial service solutions in Sri Lanka, CB has decided to develop a Proof-of-Concept of a Shared KYC Facility and invites all eligible software development companies to apply to develop a POC of the Blockchain-based Shared KYC facility and join this National project.

The entire Blockchain Technology initiative has been a voluntary effort of Sri Lanka’s financial sector and IT industry as it is a project of national importance. Therefore, this POC development would also be on a voluntary basis, Central Bank announced.

(LI)

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