Sri Lanka launches National Card Scheme marking milestone in country’s payment landscape
The Central Bank of Sri Lanka together with LankaClear Ltd., (LCPL) has recorded a significant milestone in the country’s payment landscape by launching the National Card Scheme (NCS).
The initiative will enable Sri Lanka to issue a payment card issued under national card scheme that meets international standards, which is accepted both locally and International switch.
As the second phase of the NCS, the “LankaPay 2 in1” card is to be introduced to the Sri Lankan consumers.
This will be a chip based NFC card – with additional stored value functionality for retail payments including public transport. Further, it is expected to issue a credit card as well as support e-commerce transactions under the NCS initiative.
Governor of the Central Bank of Sri Lanka, Dr. Indrajit Coomaraswamy has said, “This is indeed a momentous occasion for Sri Lanka as the country launches its national card scheme, meeting international standards which will bring immense benefits to Sri Lankan consumers due to its lower cost that enables financial inclusion.”
The Governor congratulated the MCB Bank for being the first bank to issue the LankaPay NCS card and thanked Cargills Bank, Commercial Bank of Ceylon and Seylan Bank for joining the CPS and facilitating POS transactions of NCS.
Further, he commended LCPL for implementing NCS and CPS and taking a pivotal role in expanding the national payment infrastructure.
Meanwhile, LankaClear Chairman Anil Amarasuriya has said, “Payment card industry in Sri Lanka has been dominated by international card operators, thus far, and as a result the banking and financial sector is highly dependent on these operators to facilitate card operations. NCS will take this burden away by switching all local transactions locally to provide a much lesser cost structure to the banks. From a macro point of view, NCS is envisaged to save valuable foreign exchange to the country since transactions among local banks will be routed via LankaPay network. We are honoured to be an integral part of this national initiative and appreciate the support and continuous guidance provided by the Central Bank in rolling out this project.”
The NCS will be operated by LCPL in partnership with the international payment card operator JCB International of Japan. Initially, a debit card will be issued under this card scheme.
Additionally, the NCS cards will be accepted across over 4,800 ATMs Island wide connected to LankaPay network to facilitate cash withdrawals.
The NCS, initiated in 2017 by LCPL under the direction of the Central Bank of Sri Lanka, aims to bring in greater autonomy to the country’s payment infrastructure and reduce the current outflow of foreign exchange as service fees when making local currency payments.
Enabling financial inclusion is one of the prime objectives of NCS. With the launching of the NCS, financial institutions will be able to offer card based payment solutions to their customers at a lower cost.
OSL take:
The launch of the National Card Scheme in Sri Lanka is indicative of the continuous advancements in Sri Lanka’s national payment infrastructure. The government of Sri Lanka has given much prominence to the upgrading of financial infrastructure in the country to be on par with international standards. Therefore, foreign businesses engaged in introducing revolutionary technological advancements could explore business/investment opportunities in Sri Lanka to introduce and implement latest technological advancements.
| Article Code : | VBS/AT/26062019/Z_2 |