Government suspends ICTA’s NPP
Sri Lanka’s controversial National Payment Platform (NPP) developed by the Information and Communication Technology Agency (ICTA) has been suspended.
This follows allegations against the agency that it took arbitrary action in handing over its operations to private companies without Central Bank regulation.
National Policies and Economic Affairs Deputy Minister Dr. Harsha De Silva told the Business Times on Friday that he has directed ICTA chairperson Chitranganie Mubarak to immediately suspend all activities relating to the NPP.
He said that he has ordered to conduct an in-depth investigation into the whole process of the NPP development and submit a report as soon as possible following the resignation of ICTA CEO Muhunthan Canagey this week.
Dr. De Silva emphasised that the Central Bank has not given power to ICTA with regard to the digitalisation of country’s payment operations.
“No private company has been given approval to operate the NPP, and no legal agreement has been signed so far with regard to this,” he pointed out.
According to ICTA, eight companies initially agreed to test the NPP software but that number reduced to three companies: Transact Lanka Pvt Ltd, Payment Services Pvt Ltd and Total Pay Pvt Ltd. The NPP is now in the final stage of testing.
While Transact Lanka Pvt Ltd was selected in September 2015, the other two firms were selected only recently, a development known only recently and earlier unannounced.
These three companies have been given the status of Digital Instruction Providers for NPP and many such providers could be allowed as it deals with messaging via mobiles phones on Internet which may include a payment request, ICTA sources said.
Many messaging platforms are currently in operation in the country carrying messages from a sender using a device to the intended receiver who operates a system.
However the fact that the NPP would also deal with cash payments was spelt out clearly in a media statement issued by Transact Lanka on September 9, 2015. “ICTA has awarded and granted it (Transact Lanka) permission to operate the Lanka Government Payment Service (LGPS) Web Portal to enable citizens to make cash-based payments for all government related payments,” that statement said.
According to ICTA sources, the NPP is also a similar open platform to facilitate digital commerce and online transactions.
According to Cabinet approval given to implement the NPP, ICTA has been directed to implement this platform with the Central Bank facilitating its implementation.
ICTA has very limited powers under the Information and Communication Technology Act, No. 27 of 2003 to implement projects and give inputs to policy formulation.
According to the Payments and Settlements Act, the Central Bank shall be the authority responsible for the preparation of a plan for a national payment system and therefore ICTA cannot take arbitrary actions without the knowledge of the country’s monetary regulator, informed sources said.