SAARC Payments Initiative to forge new links - CB Governor

The demands of people are becoming complex. Therefore, they want all their transactions done at the click of a button which has made the payment systems of banks complex and the unsung heroes are those behind the screen who do the bulk of the work to make the systems work.

Today we launch the SAARC Payments Initiative (SPI) to move forward together to help and learn from each other, said Governor, Central Bank of Sri Lanka Ajith Nivard Cabraal.

He said that earlier SAARC was considered to be asleep but of late there has been a reawakening. SAARC and China together has 40% of the world's population and the world sees this as a new opportunity.

Sri Lanka too has experienced three years of unprecedented growth which gives us strength to move forward with determination. These initiatives will make the SAARC region bound together and strengthen and forge new ties between member countries and thus give benefits to all, said the Governor.

Chairperson SPI and Deputy Governor Central Bank of Sri Lanka Dr Ranee Jayamaha said that the launch of the SPI is a historic event due to many reasons. The National Payment and Settlement System (PSS) reforms will now have a regional forum under the SPI for SAARC countries to help and learn from each other.

The SPI will provide effective institutional arrangements for the SAARCFINANCE Group to achieve one of its key policy initiatives, working towards an efficient payment system mechanism to promote trade and investment in the region.

With the establishment of the SPI, the SAARC region Central Banks will have an opportunity to become a regional partner of the global payment system community and upgrade the regions' payment systems to international standards.

Under the SPI, member Central Banks will collectively work to establish a dynamic and coordinated working relationship among the SAARC countries to identify the common concerns on payment system development, establish and adopt a regional approach and policies that help national as well as regional payment systems to continue with advancements, implement a time bound action plan to achieve the vision of the SPI and obtain the services of international, regional and country level institutions and those with a high level of expertise.

She said that the payment systems have undergone profound change due to changes in communication technology as well as globalisation. Banks remain in the forefront of change but non banking agencies are taking over and the situation in Sri Lanka is no exception.

The SAARC Payment strategy should not only look at the needs of the present but also the needs of the future, said Jayamaha.

SG