Thursday Jan 09, 2025
Thursday, 9 January 2025 03:01 - - {{hitsCtrl.values.hits}}
The Central Bank of Sri Lanka (CBSL) yesterday announced that the Government Digital Payment Platform (GDPP) will be operationalised this year following successful pilot testing in 2024 as part of a three-year comprehensive plan to enhance the legal and institutional structure of the payments landscape.
The GDPP will enable Government institutions without digitalised databases to receive real-time payments from the public through internet banking portals/mobile payment apps, Governor Dr. Nandalal Weerasinghe said during the presentation of the CBSL’s Policy Agenda for 2025 and Beyond.
In 2024, the CBSL launched a new Real-Time Gross Settlement (RTGS) system in 2024, fully compliant with ISO 20022 standards for domestic payment transactions.
“The CBSL plans to extend this standard to all cross-border transactions, aligning with international timelines,” the Governor added.
Further, the CBSL aims to review the access regime to interbank payment systems as well as the licencing regime for payment services. The Merchant Discount Rate (MDR) for LANKAQR was restored to 1%, up from 0.5% from 1 January 2025, encouraging financial institutions and FinTechs to promote adoption actively.
Moreover, recognising the vulnerabilities associated with digital payments, Dr. Weerasinghe said the CBSL is committed to safeguarding public trust by monitoring fraud patterns and issuing necessary guidance.
“As a part of this, the CBSL issued a Circular to safeguard the current and savings accounts of customers from unauthorised access through payment apps in 2024 with effect from March 2025. This would add to the existing regulations relating to payment app security. To bridge the gap in digital payment adoption, the CBSL will conduct nationwide public awareness programs on digital payment services, their benefits, associated security features, and possible threats, such as fraud and scams, through mass media,” the CBSL Chief said.
He said that maintaining a stable and efficient payment system is pivotal to ensuring a sound financial system. In this regard, initiatives are planned to improve relevant legislation and payment infrastructure, and increase public trust in digital payments.
“This approach begins with enhancing the legal framework that governs the oversight, supervision, and regulation of payment and settlement systems, as well as facilitating payment innovations and development of the digital payments market in Sri Lanka,” he said, adding that, “The CBSL is in the process of revising the Payment and Settlement Systems Act.”
Several subsidiary legislations, such as the Guidelines on Minimum Compliance Standard for Payment-related Mobile Applications, will be revised in 2025 to facilitate the rapid expansion of retail digital payments.