BOC extends role as settlement bank for Sri Lanka’s USD clearing system

Deputy General Manager – International, Treasury and Investment G.A. Jayashantha

• Strengthens position in remittance market and drives continued success

Bank of Ceylon (BOC) has once again been entrusted with the role of the settlement bank for Sri Lanka’s interbank US Dollar Online payment system (USD Online) and US Dollar Draft Online Image Transfer System (UITS) by LankaPay Ltd.

This role is continuing from year 2024 onwards for another three-year term and marks the continuation of BOC’s significant involvement in the country’s financial infrastructure development. The decision to renew BOC’s role as the settlement bank reflects the bank’s unwavering reliability and competence in managing these systems, and also marks a remarkable milestone in the bank’s long-standing commitment to supporting the nation’s financial stability and growth.

UITS (USD clearing systems) and USD Online were introduced by LankaPay Ltd., (former Lanka Clear Ltd.) in 2002 and 2015 respectively in line with a policy decision taken by the Central Bank of Sri Lanka. These two systems significantly helped to lower transaction-processing fees, benefiting both financial institutions and their customers, and also significantly reducing the time taken to clear and settle USD drafts.

In addition to the role as the settlement bank for the USD clearing systems, BOC continues to make significant contributions to the Sri Lankan economy by using specially developed products and platforms. BOC Smart Remit system, enables global inward remittances to flow into Sri Lanka real-time with a Turn Around Time (TAT) of five seconds, having revolutionised the remittance sector. By lowering the costs and time delays traditionally associated with foreign currency transactions, it has also helped to boost the efficiency of Sri Lanka’s foreign exchange markets.

With over 700 correspondent banking relationships, BOC has established itself as a key player in the global financial ecosystem. The bank’s extensive network spans approximately 80% of the world’s countries, ensuring that remittances from across the globe are processed swiftly and securely.

Bank of Ceylon’s extensive domestic and international footprint further reinforces its status as the country’s leading commercial bank. With a network of 658 local branches and over 2,300 customer touch points, BOC is uniquely positioned to serve the financial needs of a broad spectrum of customers, from rural communities to corporate clients. The bank’s presence in Chennai, Maldives and Seychelles ensures that Sri Lankan customers abroad also have access to uninterrupted banking services. This extensive network not only makes BOC the most accessible bank in Sri Lanka but also enables it to support a growing number of overseas Sri Lankan communities who depend on secure and efficient financial services for remittances and cross-border transactions.

BOC said its ability to adapt to new technologies and global banking trends sets it apart as a futuristic institution. The bank continues to integrate cutting-edge solutions into its services, ensuring that both local and international customers enjoy an advanced banking experience. By harnessing the latest technologies, BOC is committed to offering unparalleled services, while maintaining the trust and loyalty of its diverse clientele.

With a mission to continue serving as “Bankers to the Nation”, BOC remains steadfast in its determination to contribute to the economic prosperity of Sri Lanka. Its ongoing expansion, technological advancements and customer-centric approach ensures that the bank will continue to lead the way in providing world-class financial services, both locally and internationally.