BOC Connect: Bridging Financial Gaps through Postal Services

In an era where financial inclusivity plays a pivotal role in economic stability, Bank of Ceylon (BOC), in collaboration with the Sri Lanka Postal Department, has launched BOC Connect—a groundbreaking initiative designed to extend banking services to individuals in remote areas. This initiative leverages the extensive postal network to provide financial solutions to those unable to access traditional banking facilities.

Today’s discussion features Mr. Thusitha Hulangamuwa, Deputy Postmaster General, who sheds light on the significance of the Postal Department’s role in this collaboration, the impact of BOC Connect on financial literacy, and its contribution to Sri Lanka’s economic stability.

Q: How significant is the Postal Department’s network, and what challenges does it face?

The Sri Lanka Postal Department has a vast and well-established network, with 653 main post offices and approximately 3,400 sub-post offices, creating an extensive reach of around 4,000 service points. One of our key strengths is our door-to-door service, with postal employees visiting households six days a week.

However, as a state institution, we operate with certain limitations. Budget constraints, particularly in marketing, restrict our ability to promote our services effectively. Unlike commercial entities, we have historically functioned as a service-oriented institution without focusing on cost-based pricing. While we have introduced service-based pricing for parcel postage, registered mail, and other offerings, the Postal Department primarily provides services at minimal or no cost.

Another challenge is the decline in traditional postal services due to the rise of e-commerce and digital transactions. To adapt, we have introduced Cash on Delivery (COD) services especially for SME entrepreneurs , modernized local and international courier tracking, and implemented digital money transfer system that enable instant fund transfers across the country within a short period of time.

Q: How does the Postal Department contribute to the SME sector, particularly in partnership with BOC?

Small and Medium Enterprises (SMEs) are the backbone of Sri Lanka’s economy, and we play a crucial role in supporting them. BOC provides financial assistance to SME entrepreneurs through loan facilities, while the Postal Department facilitates their business operations by enabling product distribution and secure financial transactions.

By eliminating intermediaries, SMEs maximize their profits while we ensure reliable money transfers and product delivery through COD and SLP courier system. This initiative has also helped us reduce our operating deficit by nearly 3 billion rupees, as more private institutions and departments recognize our efficiency and choose to partner with us.

Despite offering numerous free services, such as pension disbursements, state allowances like Aswesuma, and other government incentives, we remain committed to financial inclusion. While these free services increase our operational costs, they reinforce our role as an essential service provider for the nation.

Q: What role does BOC play in this collaboration, and how does it benefit both institutions?

Initially, BOC was merely one of our service partners, but today, it is in the process that nearly all postal and sub-postal departments function as BOC service providers. The bank’s advanced technological infrastructure allows us to process financial transactions efficiently and securely.

Through this partnership, we have expanded the BOC Connect network to nearly 4,000 service points nationwide, with the potential for further growth. This integration enhances real-time banking services, digital payments, and financial transactions—key factors in driving economic development. When banking facilities are easily accessible, even in remote areas, the overall economic framework strengthens.

A crucial advantage of this affiliation is boosting financial confidence among rural populations. Many individuals, particularly in under banked regions, hesitate to engage in financial transactions through banks. However, their familiarity and trust in postal services encourage them to embrace digital banking, thus fostering financial inclusion.

Q: How does this collaboration between two state institutions contribute to national progress?

Economic growth is not about public versus private institutions—it is about synergizing strengths. Through this partnership, BOC expands its service reach, while the Postal Department gains access to advanced technology and receives commissions for services rendered. This mutual benefit strengthens Sri Lanka’s financial ecosystem, particularly for rural and underprivileged communities.

Our approach is scientific and strategic. We receive annual revenue targets from the Treasury and the Ministry, which we systematically distribute across provinces, districts, and individual post offices based on population, infrastructure, workforce, and GDP contribution. Despite our limited resources, we continue to optimize operations and generate revenue, ensuring sustainable progress. 

Q: Can you elaborate on the awareness program conducted for sub-postal departments?

To ensure the successful implementation of BOC Connect, we conducted intensive training sessions for 100 selected participants, including postal supervisors, regional postmasters, and accounting personnel. This foundational training equipped them with the necessary knowledge to handle financial transactions efficiently.

Additionally, BOC provided crucial technical support, including post machines and digital banking tools, ensuring seamless integration of financial services within postal offices. This initiative is a significant step toward modernizing postal operations while enhancing financial literacy at the grassroots level.

Q: What is your message to the general public regarding this initiative?

BOC Connect represents a new era in financial accessibility. With BOC’s technological expertise and the Postal Department’s extensive reach, we are committed to empowering communities, strengthening SMEs, and fostering financial literacy.

As one of Sri Lanka’s most trusted institutions, BOC continues to demonstrate its commitment to national development by expanding financial inclusivity. We, as the Postal Department, take immense pride in being a part of this initiative, ensuring that every citizen, regardless of location, has access to essential financial services.

Through this collaborative effort, we envision a financially stable, economically thriving Sri Lanka—one where access to banking is not a privilege but a fundamental right.

BLURB:  AS ONE OF SRI LANKA’S MOST TRUSTED INSTITUTIONS, BOC CONTINUES TO DEMONSTRATE ITS COMMITMENT TO NATIONAL DEVELOPMENT BY EXPANDING FINANCIAL INCLUSIVITY