Central Bank of Sri Lanka preps fintech regulatory sandbox
The payment and settlement department of the Central Bank of Sri Lanka is looking to set up a fintech regulatory sandbox.
The bank says the rapid growth of fintech innovations in the country has created “the need to provide an environment that nurtures and promotes their advancement whilst maintaining appropriate regulatory standards”.
The objective of the sandbox initiative, it adds, is “to encourage and enable fintech initiatives that promote efficiency and increase access to financial products and services”.
The sandbox will provide “a safe space in a controlled environment” for selected firms to test their products and services, without the risk of infringing on regulatory requirements.
The regulator hopes it will help create “robust and sustainable” innovations resulting in more efficient financial intermediation, greater financial inclusion, and “a less-cash society through digitalisation”.
The central bank is calling on all relevant stakeholders involved in fintech innovations at entrepreneurial, academic, investor, government, non-government and multi-lateral agency levels, including banks, and non-bank financial institutions and incorporated entities to share their views on this initiative.