ComBank launches Software Escrow services

The Commercial Bank of Ceylon, rated internationally as Sri Lanka’s best, has begun the provision of Software Escrow services, the globally accepted practice to balance requirements of software vendors with the needs of users.

With the bank’s foray into the sphere to offer the service of providing Software Escrow services, software vendors and users can now employ services of the bank as the neutral third party holding in safe custody their source codes.  Commercial Bank embarked on its first such transaction for software provided by OpenArc Systems Management Ltd. to Singer Finance PLC.

Software Escrow services provide the software user access to the source code, which is vital for maintenance purposes of the software, in an instance in which the vendor is unable to fulfil conditions of the maintenance agreement, ensuring the safety of the user’s investment and unhindered execution of the maintenance agreement.

Due to the high value of software used for specialised commercial purposes, many software users now only enter into agreements with vendors on condition that a neutral third party holds custody of the source code to mitigate risks, Commercial Bank said. The bank’s new service will thus be an enhancement of convenience to software vendors and users who are now able to obtain Software Escrow services alongside banking facilities from Commercial Bank.

“As costly specialised software is now widely being used for commercial purposes, there is a greater need for Software Escrow services,” Naveen Sooriyarachchi, Head of Corporate Finance at Commercial Bank, said. “As trustworthiness and reliability are among the prime requirements of a neutral third party in such a capacity, Commercial Bank is ideal for the task, being among the most trusted financial institutions in Sri Lanka.”

“Software Escrow services complement our existing product portfolio and their introduction underline Commercial Bank’s commitment to offering a truly global service by integrating developments in the international sphere,” Sooriyarachchi added.

Escrow services will be available for any type of software from Commercial Bank. Any software vendor or user who wishes to obtain the service can contact the Bank’s Corporate Finance Unit at its Head Office.

Commercial Bank is the largest private bank in Sri Lanka, and the most internationally lauded financial institution in the country. It is also the only Sri Lankan bank in the World’s Top 1,000 Banks, a prestigious annual ranking by the UK based ‘The Banker’ magazine.

The Bank has been adjudged ‘Best Bank in Sri Lanka’ for 13 consecutive years by ‘Global Finance’ Magazine and has won multiple awards as the country’s best bank from ‘The Banker,’ ‘FinanceAsia,’ ‘Euromoney’ and ‘Trade Finance’ magazines. Commercial Bank operates a network of 205 computer-linked service points and the single largest network of ATMs currently numbering 450 terminals in Sri Lanka.