Payment Systems and Instruments in Sri                                                                                                                                    2
              Lanka
                                                                Payment Systems and Instruments in Sri Lanka
                                              Large Value Payment System                                         Retail Payment Systems and Instruments
                                    - Real Time Gross Settlement System                                          - Cheques
                                                                                                                  -  Sri  Lanka  Interbank  Payment  System     
                                                                                                                (SLIPS)
                                                                                                                -      Common  Electronic  Fund  Transfers 
                                                                                                                (CEFT)
                                                                                                                 - Payment Cards
                                                                                                                 - Mobile Payments
                                                                                                                 - Internet Banking
                                                                                                                 - Postal Instruments 
      Transactions effected through Payment                                        3
      Systems (2017) 
                                                            2010                2017
                  PAYMENT SYSTEM                     Volume     Value     Volume     Value 
                                                      ('000)   (Rs. bn)    ('000)   (Rs. bn)
  Large Value Payment Systems                                                               
      RTGS System                                         247      47,806       377    92,303
  Retail Value Payment Systems                                                              
                                                                         
      Main Cheque Clearing System                       42,795      5,346     51,963   10,482
      Sri Lanka Interbank Payment System (SLIPS)        12,530        332     30,018    1,725
      Credit Cards                                      16,451        75      36,964     199
      Debit Cards                                        5,340        16      46,964     135
      Internet Banking                                   4,264        269     23,066    2,101
      Phone Banking                                       229          5      3,809       32
      Postal Instruments                                    -         10      1,308        7
  Total                                                 81,856     53,859    170,558  106,983
    Real Time Gross Settlement System           4
    (RTGS)
    • Launched in 2003, replacing the interbank cheque based high 
     value settlement system
    • CBSL is the owner and operator of the RTGS system
    • Currently there are 36 participants
      • 25 Commercial Banks (All commercial banks in Sri Lanka)
      • 8 Primary Dealers (all primary dealers in Sri Lanka excluding bank primary 
       dealer units)
      • Employees’ Provident Fund (the largest superannuation fund in Sri Lanka)
      • Central Depository System of the Colombo Stock Exchange
      • Central Bank of Sri Lanka
    Reasons for moving to the RTGS system    5
    • Less Credit Risk for Participants
    • Less impact for other participants in the event of a failure of a 
    participant during business hours.
    • Participants get full control of their own and customers’ payments 
    and better liquidity management.
    • Can efficiently manage the growth in the volume of transactions.
    • Increased public and investor confidence due to less risk and high 
    efficiency
    • No physical exchange of money. (currency printing cost for the 
    Central Bank in 2017- Rs. 1.5 Billion)
   Transactions going through the RTGS   6
   system
   • Interbank Call money market transactions
   • Fund settlements of the government securities transaction
   • Open Market Operations
   • Sri Lankan Rupee leg of foreign exchange market transactions
   • Large Value payments of customers
   • Net obligations under the clearing systems operated by the only 
    clearing house in Sri Lanka- LankaClear (Pvt) Ltd (LCPL)
   • Provision and settlement of Intra Day Liquidity.
   • No minimum or maximum per transaction limit.