South Asian countries need to modernize their payments systems to cope with rapidly increasing cross border trade and investment flows trigged by faster economic growth, according to senior Sri Lanka central banker.
"Trade and investment flows and demand for financial services will exceed the present levels over the next couple of years," said Ranee Jayamaha, Deputy Governor of Central bank of Sri Lanka (CBSL) at the inaugural session of the SAARC Financial Conference held last week in Colombo.
"Hence, the payment system gains much importance as it is a critical facilitator in cross-border flows, as well as domestic transactions. It should be able to cater not only to present needs, but also future demands."
Most south Asian countries had either opened up or were considering opening up their capital accounts and were growing fast. They are now discussing the setting up of a regional payment system.
Modern payments systems are required to facilitate cross border trade and investment flows through appropriate payment instruments, clearing mechanisms and settlement systems, Jayamaha said.
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Fibre2fashion News Desk - Sri Lanka
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