Payment & Settlement Systems 
          in Sri Lanka
           Retail Payment Systems
                                 Objectives
    Improve      Reduction        Reduction of       Migration to   Promote 
    Security      of  Costs   Transaction Clearing    Electronic    Financial 
                               & Settlement Time      Payments      Inclusion
                             Major Developments
        •
         Launch of the first Mobile Phone Based E-money System in Sri Lanka
        •
         Adoption of Terminal Line  Encryption technology
        •
          Arrangements for the Common Card & Payment Switch
            Mobile Phone Based E-money 
                                    System
      •  The first mobile phone based e-money system 
         was launched in June 2012.
      •  Operator – A mobile network operator in Sri 
         Lanka licensed by the Central Bank to operate 
         the mobile phone based e-money system
      •  Custodian and trustee arrangements to ensure 
         customer protection and system reliability
      •  Regulation, supervision and oversight of the 
         system is based on the Mobile Payments 
         Guideline for Custodian Account based Mobile 
         Payment Services issued by the Central Bank
           Mobile Phone Based E-money 
                                   System
     Statistics
     Total number of registered customers (as at end Oct 2012) – 740,585 
     Total number of merchants (as at end Oct 2012) – 13,284
     Aggregate value of e-money (as at end Oct 2012) – Rs.  80,000,000.00
     Transaction data (Oct 2012)
                 Transaction Type            Volume          Value (Rs)
           E-money Top-ups                         19,282       36,679,800
           E-money Transfers                        3,857        3,981,627
           Cash-outs                               13,785       31,220,660
           Utility Bill Payments                  164,470      146,565,284
           OTC Payments                              221          388,704
                Terminal Line Encryption 
                               Technology
      •  Adoption  of  Terminal  Line  Encryption  (TLE) 
         technology  by  financial  acquirers  for  payment 
         cards operating in Sri Lanka was mandated. 
      •  To mitigate fraud risk associated with cardholder 
         data theft while in transit