Local Clearing

Jan 17, 2011 (LBO) - Sri Lanka will set up a common automated teller machine and payment card switch that will process transactions locally, eliminating the need for international routing of transactions between different banks, an official said. "Any firm registered outside Sri Lanka should have a local partner at the time of forwarding the tender."

Tenders will be called later for firms which are pre-qualified during the expressions of interest stage.

LankaClear now processes Sri Lanka's cheques through image clearing and also runs a bulk interbank payment system.

LankaClear, Sri Lanka's national clearing house, has called for expressions of interests from vendors to supply 'Common ATM & Payment Card Switch'.

"With a local switch transactions will be routed domestically instead of going through international service providers," LankaClear chairperson Priyanthi Liyanage said.

"We also want to provide the service in a cost-effective manner."

At the moment different local banks allow their ATMs to be used by customers of other banks, but the transactions are cleared internationally by providers such as Mastercard.

LankaClear wants to hear from vendors and developers which have previously installed at least two