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Logica, an IT consultancy firm signed a deal worth US$ 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 program 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, with this RTGS initiative it plans to implement a world-class national payments infrastructure for Sri Lanka. The Bank also said that it has conducted an extensive international selection process as per the guidelines prescribed through the government and the World Bank, which resulted in the selection of Logica as the strongest provider.

Commenting on the win, Louwke van der Steen, Logica's Country Manager for 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 Sri Lanka's 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) would enable recording of government securities transfers among primary dealers and secondary market investors.

The RTGS and the SSS systems will use the Society for Worldwide Interbank Financial Telecommunications (SWIFT) message formats and will be connected through a Delivery vs Payment (DvP) link.

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 Lanka's IT industry.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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