Logica announced it has signed a
deal worth USD 9 million to implement the Real Time Gross Settlement (RTGS)
System and the Scripless Securities Settlement (SSS) System for the Central
Bank of Sri Lanka (CBSL). The overall system will enable banks and financial
institutions to make secure, high-value, inter-bank payments virtually
instantaneously across the country, and also to deal in real-time trading and
settlement of government securities.
The CBSL has embarked on an ambitious modernisation programme, funded
through a World Bank loan, to reduce risks and increase efficiency within the
national payments system. Ultimately, this will enable it to become more
competitive in the global market, improve financial services and attract more
international investments. All commercial banks in Sri Lanka will be direct
participants in the Logica-developed RTGS system, thereby bringing immense
benefits to customers and primary dealers.
According to the Central Bank of Sri Lanka, with this RTGS initiative, it
plans to implement a world-class national payments infrastructure for Sri
Lanka. The Bank also states that it has conducted an extensive international
selection process as per the guidelines prescribed through the government of
Sri Lanka and the World Bank, which resulted in the selection of Logica as the
strongest provider, given its wide-ranging experience in implementing
National Payments infrastructures, including many RTGS systems globally.
Commenting on the win, Louwke van der Steen, Logica’s country manager of
SAARC said, “Logica is delighted that it was selected by the CBSL for this
prestigious national initiative, which is of strategic importance to us in the
Sri Lanka financial services market. This initiative will provide significant
benefits to individuals and businesses throughout Sri Lanka by allowing the
transfer of funds from one customer to another at a different bank virtually
immediately. By ensuring finality of all payments, the RTGS system will reduce
‘systemic risk’ in the banking system, thereby providing increased integrity
and security for all inter-bank transactions.”
The CBSL will use Logica’s Central Accounting System (CAS) to settle
interbank high-value payments ensuring irrevocability and finality. Logica’s
Central Securities System (CSS) will enable recording of government securities
transfers among primary dealers and secondary market investors. Both the RTGS
and the SSS systems will use the Society for Worldwide Interbank Financial
Telecommunications (S.W.I.F.T.) message formats and will be connected through
a Delivery vs. Payment (DvP) link. Full disaster recovery capabilities will
also be provided by Logica.
For this contract, Logica is working with its local business partners, IBM
Sri Lanka, and Just In Time Holdings, Colombo, an established player in the
Sri Lankan IT industry.
The Sri Lanka RTGS is Logica’s third major RTGS initiative in Asia, in
addition to India and the Philippines. Logica’s CAS, the world’s most popular
RTGS system, has already been successfully installed in 11 countries to
support central banking financial infrastructures.
Logica (LOG.L) is a leading global solutions company providing management
and IT consultancy, systems integration, products, services and support.
Logica’s clients operate across diverse markets including telecoms, financial
services, energy and utilities, industry, distribution and transport and the
public sector. The company has revenues over 1 billion pounds Sterling and
operates in 34 countries worldwide. Founded in 1969, Logica is the largest IT
services company listed on the London Stock Exchange. More information can be
found at http://www.logica.com.