20th JUNE 2018, LONDON

With the rapid growth in Financial Technology (FinTech) innovations in the country, the Payments and Settlements Department of the Central Bank of Sri Lanka has identified the need to provide an environment that nurtures and promotes their advancement whilst maintaining appropriate regulatory standards. Accordingly, the Central Bank aims to establish a Sri Lankan FinTech Regulatory Sandbox with the objective to encourage and enable FinTech initiatives that promote efficiency and increase access to financial products and services.

SRI LANKAN FINTECH REGULATORY SANDBOX

May 3, 2018

With the rapid growth in Financial Technology (FinTech) innovations in the country, the Payments and Settlements Department of the Central Bank of Sri Lanka has identified the need to provide an environment that nurtures and promotes their advancement whilst maintaining appropriate regulatory standards. Accordingly, the Central Bank aims to establish a Sri Lankan FinTech Regulatory Sandbox with the objective to encourage and enable FinTech initiatives that promote efficiency and increase access to financial products and services.

Purpose of a Fintech Regulatory Sandbox

A FinTech Regulatory Sandbox provides a safe space in a controlled environment for selected innovators to test their products and services, without the risk of infringing on regulatory requirements. This process provides innovators with an opportunity to better equip themselves to seek regulatory approval. It is intended that this process would create robust and sustainable innovations that can provide more efficient financial intermediation, greater financial inclusion, and create a less-cash society through digitalisation.

The scope of the Sri Lankan Fintech Regulatory Sandbox

The Central Bank is in the process of determining the scope of the Regulatory Sandbox. To ensure that it will be beneficial for Sri Lankan FinTech innovators and start-ups, the Central Bank is adopting a participatory approach to engage stakeholders in order to identify market requirements.

Source: Central Bank of Sri Lanka