In the ever evolving landscape of financial services, adaptability and innovation are paramount. Amidst this dynamic environment, one entity stands tall as a beacon of success and sustainability – Lanka Financial Services Bureau (LFSBL).

LFSBL is set to mark its 17th anniversary, an opportune moment to reflect on the journey of the organisation, which has played a pivotal role in the country’s financial ecosystem with an unwavering commitment to efficiency and cost effectiveness.

Established in December 2006 through collaborative efforts of the Sri Lanka SWIFT User Group and banking community, and overseen by the Central Bank of Sri Lanka, LFSBL has emerged as a cornerstone of secure financial messaging within the global SWIFT (Society for Worldwide Interbank Financial Telecommunication) network.

Its inception marked a strategic response to the evolving needs of the banking sector, particularly in mitigating the escalating costs associated with financial messaging. Led by the SWIFT user community of Sri Lanka and Central Bank, the banking community initiated the formation of LFSBL as a SWIFT Service Bureau under the guidance of SWIFT SC, Belgium, aiming to mitigate transaction costs and conserve Sri Lanka’s foreign exchange outflow.

The fundamental premise of LFSBL lies in its ability to provide a shared infrastructure for SWIFT users. By pooling resources and leveraging economies of scale, LFSBL has successfully lowered the barriers to entry for financial institutions, enabling seamless connectivity to the SWIFT network at a fraction of traditional costs.

This shared infrastructure model not only fosters cost efficiency but also promotes collaboration and solidarity within the banking and financial community.

LFSBL adopts a user owned corporate cooperative business model, reflecting its commitment to inclusivity and shared ownership. This model has enabled LFSBL to deliver uninterrupted network availability of the shared SWIFT network for all connected parties in Sri Lanka including the Central Bank.

As a proud recipient of the mandatory certification in compliance with the stringent conditions of the Shared Infrastructure Programme (SIP) from SWIFT in 2022, LFSBL has been included in the group of Asia Pacific List of Certified Bureaus since 2017, alongside those in Japan, China, Singapore and India.

The company’s financial performance underscores its resilience and strategic foresight. In 2022/23, LFSBL achieved an operating profit of Rs. 51 million, marking a phenomenal increase from the 7.5 million rupees reported in 2021/22.

Over the years, LFSBL has demonstrated resilience and adaptability in navigating the challenges of the fintech landscape and banking sector. One notable instance is the disruption caused by the outage of an overseas undersea cable in 2009.

While this event disrupted conventional communication channels, institutions connected to LFSBL remained unscathed, underscoring the robustness and reliability of the infrastructure.

Moreover, LFSBL has consistently pursued innovation to enhance its service offerings and drive continuous improvement. Beyond its initial mandate of providing connectivity infrastructure, LFSBL expanded its scope to encompass messaging infrastructure, effectively consolidating critical financial functions under one roof.

This proactive approach not only streamlined operations for member banks but also resulted in substantial cost savings, particularly during software version upgrades and security enhancements.

Central to LFSBL’s success is its unwavering commitment to quality assurance and compliance. As a certified SWIFT Service Bureau, LFSBL undergoes rigorous audits and adheres to stringent standards set forth by SWIFT.

This commitment to excellence has earned LFSBL recognition as one of the leading service bureaus in SWIFT’s Asia-Pacific region, with certifications on a par with global counterparts in countries like Japan, Singapore and Switzerland.

Beyond its technical prowess, LFSBL embodies a unique corporate cooperative business model driven by a shared vision of mutual benefit. As a consortium of 22 banks, LFSBL operates not solely for profit but also to serve the collective interests of its stakeholders.

This ethos of collaboration and inclusivity is exemplified by the dual role of member banks as shareholders and customers, ensuring the alignment of interests and sustainable growth.

The company’s adaptability to evolving technological and regulatory landscapes, coupled with its sustainable business practices, highlights its resilience and commitment to excellence.

Looking ahead, LFSBL is poised to continue its trajectory of success and innovation, leveraging emerging technologies and strategic partnerships to further enhance its value proposition. With an unwavering focus on customer satisfaction, operational excellence and financial sustainability, LFSBL remains steadfast in its mission to empower Sri Lanka’s banking community and facilitate seamless global connectivity.

The 17th anniversary of Lanka Financial Services Bureau is not merely a milestone but a testament to the resilience, innovation and collaborative spirit that define its journey. With this significant occasion, LFSBL reaffirms its commitment to excellence and solidarity, ensuring a brighter future for the country’s financial ecosystem.

– Compiled by Tamara Rebeira
COMPANY DETAILS

Telephone: 0772 304577 | Email: support@lfsbl.com | Website: ww1.lfsbl.com