Aug 11, 2009 (LBO) – Sri Lanka’s banking regulator said it intends to regulate and closely supervise payment card service providers almost a year after the collapse of one firm triggered a crisis in a local conglomerate. The Central Bank said in a statement that use of payment cards, such as credit cards, debit cards and stored value cards, was growing because of their convenience.
The new rules, effective July 30, are meant to increase public confidence and the safety of card services, minimise potential losses for issuers, and monitor new products to ensure compliance with the regulations.
The regulations require all service providers of payment cards to register with the Central Bank which will function as the supervisory authority of such service providers, giving them directions and guidelines.
“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 statement said.
“The supervision by the Central Bank would minimize potential losses for service providers and increase the efficiency of their businesses by adapting international best practices in the Sri L