Recognizing the need to implement a comprehensive system for monitoring cross-border and domestic currency transactions as a key national priority, the Central Bank of Sri Lanka (CBSL) has implemented a new data collection system known as the International Transaction Reporting System (ITRS) with the participation of Licensed Commercial Banks (LCB) and Licensed Specialized Banks (LSB). The ITRS is a comprehensive system for collecting data on cross-border and domestic currency transactions and aims to fill a host of existing data gaps. It will contribute to policy formulation in many aspects by providing valuable information for statistical and regulatory purposes. The ITRS system will serve a number of purposes including improving balance of payments statistics including export earnings, imports, service account transactions such as IT/BPO transactions, worker remittances, financial account transactions and many other statistical data inputs. The ITRS will also be used for data reporting by banks for regulatory requirements. Data from the ITRS system is also used as supporting information for future policy decisions, such as the origins of foreign currency outflows from the country for educational, medical, tourism and other purposes. The ITRS will also centralize the collection of information by the Central Bank, which will allow for more convenient reporting of data by banks. Phase 1 of the ITRS will go live from June 21, 2022. The system is also expected to facilitate centralized reporting of Central Bank data in the next phases of the project.
All banks are required to report project phase 1 transaction information as specified in the ITRS Interphase requirements through the ITRS “web application”, developed by the Central Bank. The ITRS monitoring unit, established at the Central Bank, will work closely with the banks on a daily basis to ensure the accuracy, timeliness and coverage of the data provided.
These reporting obligations are exercised on the basis of the powers conferred by the Monetary Law Act, No. 58 of 1949, the Banking Act No. 30 of 1988 and the Foreign Exchange Act No. 12 of 2017.