Communications Department
30, Janadhipathi Mawatha, Colombo 01, Sri Lanka.
Tel : 2477424, 2477423, 2477311
Fax: 2346257, 2477739
E-mail: [email protected], [email protected]
Web: www.cbsl.gov.lk
Press Release
Issued By
Date
Payments & Settlement Department
2009-08-10
Service providers of Payment Cards to be regulated by the Central Bank of Sri Lanka
As per the provisions of the Payment and Settlement Systems Act No. 28 of 2005, His Excellency
the President has authorized the ‘Service Providers of Payment Cards Regulations No. 01 of
2009’ to be effective from 30th July, 2009. The main objective of these regulations is to ensure
that all service providers involved in payment card related transactions comply with the best
international standards and practices. These regulations provide the Central Bank of Sri Lanka
(CBSL), as the regulator of the payment systems, with the necessary authority to regulate and
direct service providers of payment card business.
The regulations will require all service
providers of payment cards to register with the CBSL. In addition, the CBSL will function as the
supervisory authority of such service providers, and will issue directions, directives, guidelines,
conditions, circulars, rules and instructions to the payment card service providers.
It is expected that these regulations will generate several benefits for service providers of card
based payments and the users of such services in particular, and the entire economy as a whole.
The supervision by the CBSL would minimize potential losses for service providers and increase
the efficiency of their businesses by adapting international best practices in the Sri Lankan
context. The intervention of the CBSL as the regulator of payment card service providers would
increase public confidence and the security of the services delivered to the end-customers. In
addition, the CBSL will monitor all new products relating to the payment card industry before they
are introduced to the market to ensure that such products conform to the existing regulations
within the country and international best practices so that a secure and efficient service is
maintained.
Payment cards, such as credit cards, debit cards and stored value cards, have gained importance
in the recent past, due to the growing preference of customers to use such payment instruments
for day-to-day transactions, driven by customer convenience and transaction security. Service
providers have also been able to market the payment cards by providing more convenient
services to their customers using advanced telecommunication technology. Although the value
and the volume of card based transactions are relatively low when compared with those of other
payment instruments such as cheques, considering the rapid growth of such card payment
instruments and their benefits to the economy, the Payment Card Regulations have been
prepared by the CBSL so as to enhance the level of security and efficiency as a measure to
protect customers and to increase public confidence in such payments.