US Dollar Draft Payments
Bringing Sri Lanka’s national payment infrastructure on par with international players.
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Bringing Sri Lanka’s national payment infrastructure on par with international players.
In the realm of financial institutions, the traditional USD cheque/draft clearing process posed significant challenges, often taking over three weeks to credit customers. This delay was primarily attributed to the necessity of sending USD drafts to the 'Nostro' account-maintaining banks located abroad.
In response to this cumbersome process, LankaPay (Pvt) Ltd introduced the USD Draft Clearing System in 2002. This innovative system, initially semi-computerized, revolutionized the clearing of USD drafts issued by Licensed Commercial Banks (LCBs) in Sri Lanka. By leveraging this system, the time required for USD draft clearance was reduced from three weeks to just four days, significantly saving on clearing fees for participating banks.
Continuing our commitment to innovation and efficiency, LankaPay launched the US Dollar Draft Online Image Transfer System (UITS) on July 24th, 2019. UITS represents a monumental shift in USD draft processing, facilitating the exchange of digital draft images between banks. This transformative process eliminates the physical movement of drafts during clearing, reducing associated delays and operational costs. With UITS in place, the clearing cycle has been expedited to just one working day, ensuring timely processing of transactions.
The Bank of Ceylon (BOC) has been appointed as the Settlement Bank for UITS, ensuring seamless transaction settlements for participating institutions. Presently, 22 licensed commercial banks are connected to the domestic USD Cheque/Draft Clearing network, reflecting the widespread adoption and success of this innovative solution in the financial sector.
We will carry out UITS clearing operations during the following periods.
| Clearing Session | Clearing Leg | Window Open Time | Window Close Time | Activity |
|---|---|---|---|---|
| Main Clearing | Outward | 03.00 p.m | 05.30 p.m. | Financial institutions submit outward data to LankaPay |
| Inward | 06.30 p.m. | 09.30 a.m.(next business day) | LankaPay provides inward data to financial institutions and settlement file for the settlement bank. | |
| Return Clearing | Outward Return | 10.00 a.m. | 11.30 a.m. | Financial institutions submit return data to LankaPay |
| Inward Return | 12:30 p.m. | 02:30 p.m. | LankaPay provides inward return data to financial institutions and settlement file for the settlement bank. |
| Year | Quarter | US Dollar Cheques/Drafts Volume ('000) | US Dollar Cheques/Drafts Value (USD) |
|---|---|---|---|
| 2021 | Q1 | 7.6 | 68 Million |
| Q2 | 6.3 | 51 Million | |
| Q3 | 7.2 | 64 Million | |
| Q4 | 7.3 | 70 Million | |
| 2022 | Q1 | 7.9 | 75 Million |
| Q2 | 10.9 | 101 Million | |
| Q3 | 15.6 | 138 Million | |
| Q4 | 16.1 | 119 Million | |
| 2023 | Q1 | 16.5 | 99 Million |
| Q2 | 15.8 | 94 Million | |
| Q3 | 16.9 | 95 Million | |
| Q4 | 17.6 | 104 Million |
Licensed commercial banks in Sri Lanka
Licensed commercial banks in Sri Lanka and exchange houses.
The standard size USD Draft or Cheque is 3.5” height and 7 “width.
From the time a cheque/draft image reaches LankaPay from banks, it is processed within one business day, so that that cheque shall be realized on the next working day.
Banks can submit data using online mode. CD submission accommodate only during a contingency.
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LankaPay is the national payment network of Sri Lanka which provides the central payment infrastructure to the country’s financial sector. With a mission to drive financial inclusivity and empower businesses and individuals with faster, convenient and secure payment options, making payment convenience an affordable and accessible choice for all.
Location
LankaPay (Pvt) Ltd. Level 18, Bank of Ceylon Head Office,BOC Square, No. 01, Bank of Ceylon Mw, Colombo, 00100, Sri Lanka.
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