Recognising the need to implement a comprehensive system to monitor cross-border transactions and domestic foreign currency transactions as a key national priority, the Central Bank of Sri Lanka (CBSL) has implemented a new data collecting system known as the International Transactions Reporting System (ITRS).
The first phase of the system came into effect yesterday (21), centralising information gathering by CBSL, enabling a more convenient data reporting by banks.
The ITRS is aimed at filling a multitude of existing data gaps, and is being executed together with the participation of Licensed Commercial Banks (LCBs) and Licensed Specialised Banks (LSBs).
It enables policy formulation in many aspects by providing valuable inputs for both statistical and regulatory purposes, and serves a number of other purposes, including the enhancement of Balance of Payments Statistics, including export proceeds, imports, services account transactions such as IT/BPO transactions, workers’ remittances, financial account transactions, and many other statistical data inputs.
The system also serves the purpose of data reporting by banks for regulatory requirements, CBSL noted in a statement.
Data from the ITRS system is also used as supporting information for future policy decisions, such as origins of foreign currency outflows from the country for education, medical, tourism and other purposes.
Thus, all banks are now required to report information related to transactions in the first phase of the project as detailed in ITRS Interphase Requirements, through the ITRS ‘Web Application’.