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Central Bank of Sri Lanka Initiates Blockchain-based KYC Proof of Concept Project

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Significant Milestone in Digital Transformation Journey

The Central Bank of Sri Lanka (CBSL) recently embarked on a new project to develop Blockchain Technology-based Shared Know-Your-Customer (KYC) proofs of concept (POCs). This initiative is a significant step forward in CBSL’s digital transformation journey, identified as a potential benefit for Sri Lanka’s financial services sector back in 2018.

Inter-Industry Study and Public Call for Applications

Following the voluntary participation of banks and the IT industry in an inter-industry study of Blockchain Technology, CBSL decided to pave the way for blockchain-based financial service solutions in Sri Lanka. In July 2020, CBSL issued a public call inviting companies with expertise in developing Blockchain Technology-based solutions for Shared KYC to join the project.Three such applicants were subsequently selected to develop POCs concurrently.

Expected Benefits and Ongoing Digital Infrastructure Efforts

The adoption of Blockchain Technology for KYC solutions is expected to streamline the often complicated and time-consuming customer verification process. This solution aims to provide enhanced security and privacy while reducing operational costs for financial institutions. The project is part of the CBSL’s ongoing efforts to adopt advanced technologies to strengthen Sri Lanka’s digital financial infrastructure and promote financial inclusion.

Stay Tuned for More Updates

This is just the beginning of an exciting developments story. Stay tuned for more updates on the progress of this project and how it will impact the financial services sector in Sri Lanka.

  • Digital Transformation Journey: A significant milestone in CBSL’s digital transformation journey.
  • Identified in 2018: An inter-industry study of Blockchain Technology identified the potential benefits for Sri Lanka’s financial services sector.
  • Public Call for Applications: Three applicants were selected from companies with expertise in developing Blockchain Technology-based solutions for Shared KYC.
  • Expected Benefits: Streamline customer verification process, provide enhanced security and privacy, and reduce operational costs.
  • Ongoing Digital Infrastructure Efforts: Part of an ongoing effort to strengthen Sri Lanka’s digital financial infrastructure and promote financial inclusion.