Most importantly, we initiated actions to develop a National Financial Inclusion Strategy (NFIS) for Sri Lanka with the aim of promoting a more effective and efficient process to improve financial inclusion across the country. In this regard, the Central Bank signed a Cooperation Agreement with the IFC in January 2018. As a part of the NFIS, an island-wide survey was conducted to understand the overview and landscape of the current level of financial inclusion and financial literacy across the country. NFIS is expected to be launched by Mid-2019 to bring in financially excluded segments to the formal financial sector thereby promoting inclusive and balanced economic growth, while encouraging MSMEs in Agriculture, Industry and Services sectors by ensuring access to affordable financial services for production oriented economic activities. 40  5. Concluding Remarks Ladies and Gentlemen, We have come to the conclusion of my speech. At the outset, I mentioned that our country faced several difficulties during 2018 which threatened macroeconomic stability. However, in retrospect, I can record that the Central Bank and the government decisively intervened and implemented several policy measures to mitigate the impact of such challenges and uncertainties. It is evident that these measures have helped us to withstand certain shocks that we faced and to ensure broader stability of the economy in spite of some sectoral imbalances. Nevertheless, we do acknowledge that several challenges and threats still prevail and there is a plethora of impending risks that may exert further pressures on overall macroeconomic and financial system stability.

As per the recommendations made by the FinTech Committee, a National Quick Response (QR) Code Standard for Local Currency Payments branded as “LANKAQR” was issued to all financial institutions and operators of mobile phone based electronic money (e-money) systems to facilitate QR code based payments. Similarly, with regard to Blockchain technology, an inter-industry working committee is preparing a framework for a Blockchain based shared know-your-customer (KYC) solution. Further, the Central Bank appointed a taskforce to study on virtual currency schemes to examine regulatory steps that need to be taken to ensure system stability and the safety of public funds. In addition, several regulations were issued, in 2018, to ensure safe and efficient payment and settlement systems in the country. As for future plans and policies, the Central Bank will focus on promoting digital payment mechanisms to establish a less-cash society with a view to reducing cash management costs while enhancing safety and convenience. Accordingly, we will facilitate the implementation of a National Transit Card and Infrastructure Framework for ticketing and fare collection for the purpose of introducing a nationally accepted transit card for the country to be used in bus and rail transport. We will also continue to adopt measures to promote the usage of digital payment mechanisms by way of encouraging financial institutions to enable digital payment methods and creating awareness among general public on digital payment options and their benefits. 29  It is also planned to establish a regulatory sandbox to enable introducing innovative FinTech products, while ensuring compliance with regulatory requirements.