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US Dollar Draft Payments

In the realm of financial institutions, the traditional USD cheque/draft clearing process posed significant challenges, often taking over three weeks to credit customers. This delay was primarily attributed to the necessity of sending USD drafts to the 'Nostro' account-maintaining banks located abroad.

In response to this cumbersome process, LankaPay (Pvt) Ltd introduced the USD Draft Clearing System in 2002. This innovative system, initially semi-computerized, revolutionized the clearing of USD drafts issued by Licensed Commercial Banks (LCBs) in Sri Lanka. By leveraging this system, the time required for USD draft clearance was reduced from three weeks to just four days, significantly saving on clearing fees for participating banks.

Continuing our commitment to innovation and efficiency, LankaPay launched the US Dollar Draft Online Image Transfer System (UITS) on July 24th, 2019. UITS represents a monumental shift in USD draft processing, facilitating the exchange of digital draft images between banks. This transformative process eliminates the physical movement of drafts during clearing, reducing associated delays and operational costs. With UITS in place, the clearing cycle has been expedited to just one working day, ensuring timely processing of transactions.

The Bank of Ceylon (BOC) has been appointed as the Settlement Bank for UITS, ensuring seamless transaction settlements for participating institutions. Presently, 22 licensed commercial banks are connected to the domestic USD Cheque/Draft Clearing network, reflecting the widespread adoption and success of this innovative solution in the financial sector.

Explore the advantages for financial institutions

  • Financial institutions benefit from timely availability of funds, enabling them to optimize liquidity management and meet customer demands efficiently.
  • By eliminating the physical transit of USD drafts or cheques, the probability of documents being misplaced is eradicated, reducing operational risk and enhancing security.
  • Financial institutions gain real-time insight into the fate of cheques, allowing for prompt decision-making and improved transaction management.
  • Our platform offers real-time clearing position enquiry, empowering financial institutions with immediate access to critical clearing data for informed decision-making and enhanced operational efficiency.
  • Financial institutions can extend value-added services to customers, enhancing their overall banking experience and fostering loyalty through innovative offerings and improved service delivery.
  • Enjoy faster and more secure USD cheque/draft transactions, with robust security measures in place to safeguard against fraud and unauthorized access, ensuring peace of mind for financial institutions and their customers.

Financial institutions currently signed up with US Dollar Draft Payments

Statistics

Quarterly statistics as of 31st Mrach 2024

Q1

Quarter

17.8

US Dollar Cheques/Drafts Volume ('000)

108 Million

US Dollar Cheques/Drafts Value (USD)

Clearing cut-off times

We will carry out UITS clearing operations during the following periods.

Clearing Session Clearing Leg Window Open Time Window Close Time Activity
Main Clearing Outward 03.00 p.m 05.30 p.m. Financial institutions submit outward data to LankaPay
Inward 06.30 p.m. 09.30 a.m.(next business day) LankaPay provides inward data to financial institutions and settlement file for the settlement bank.
Return Clearing Outward Return 10.00 a.m. 11.30 a.m. Financial institutions submit return data to LankaPay
Inward Return 12:30 p.m. 02:30 p.m. LankaPay provides inward return data to financial institutions and settlement file for the settlement bank.

Quarterly Statistics

Year Quarter US Dollar Cheques/Drafts Volume ('000) US Dollar Cheques/Drafts Value (USD)
2021 Q1 7.6 68 Million
Q2 6.3 51 Million
Q3 7.2 64 Million
Q4 7.3 70 Million
2022 Q1 7.9 75 Million
Q2 10.9 101 Million
Q3 15.6 138 Million
Q4 16.1 119 Million
2023 Q1 16.5 99 Million
Q2 15.8 94 Million
Q3 16.9 95 Million
Q4 17.6 104 Million

FAQ

Licensed commercial banks in Sri Lanka

Licensed commercial banks in Sri Lanka and exchange houses.

The standard size USD Draft or Cheque is 3.5” height and 7 “width.

From the time a cheque/draft image reaches LankaPay from banks, it is processed within one business day, so that that cheque shall be realized on the next working day.

  • USD drafts issued by banks in Sri Lanka payable to Sri Lankan individuals and institutions.
  • USD drafts issued by banks or exchange houses abroad drawn on banks in Sri Lanka.

Banks can submit data using online mode. CD submission accommodate only during a contingency.

How can we help

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