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.

We believe that preemptive and effective policy measures would help us to mitigate those challenges and guide our economy and the financial sector in the right direction and ultimately achieve the price, economic and financial system stability to create a conducive enabling environment to improve the living standards of our people. We stand ready to pursue policies and introduce any course corrections if they become necessary in today’s volatile and uncertain world. Before I conclude, it is my solemn duty and responsibility to convey my deep sense of gratitude and appreciation to several individuals and parties who constantly supported the efforts of the Central Bank. First and foremost, I am extremely grateful to His Excellency the President and the Honourable Prime 41  Minister for their leadership and guidance. I would also like to thank Honourable Minister of Finance for his support, especially to strengthen the independence of the Central Bank while ensuring the close coordination between the Ministry and the Central Bank. Further, I owe a special debt of gratitude for the ample support and fruitful discussions and inputs from the Members of the Monetary Board of the Central Bank. My sincere appreciation goes to Secretaries to the Treasury who served as ex-officio members of the Monetary Board during 2018. I am also grateful to Mrs. Manohari Ramanathan, Mr. Chrisantha Perera and Mr. Nihal Fonseka whose unstinting support, as members of the Monetary Board, was extremely invaluable and substantive.