Saturday Dec 27, 2025
Saturday Dec 27, 2025
Friday, 21 November 2025 05:18 - - {{hitsCtrl.values.hits}}
Bank of Ceylon (BOC) has become the first local bank in Sri Lanka to implement the SWIFT MX (ISO 20022) messaging standard within its treasury system, a move that places the institution at the forefront of the country’s payments modernisation efforts.
The implementation marks the replacement of the long-used MT (Message Type) format with ISO 20022, a more structured and data-rich messaging standard now being adopted globally. The bank successfully completed the migration and went live with the new format on October 27, 2025, becoming the first local institution to operate SWIFT MX without using message converters.
ISO 20022 is an international standard introduced by SWIFT to improve the way financial institutions exchange payment data. It uses XML-based messages that carry detailed and structured information, making it easier to automate processes, enhance interoperability between systems, and analyse data more effectively. From March 2023, all financial institutions handling cross-border payments have been required to move toward ISO 20022 compliance, with full migration expected worldwide by November 2025.
The adoption of ISO 20022 represents a major shift in how payment messages are exchanged. The format supports multilingual text, extended remittance information, and an expanded character set, offering far greater flexibility and clarity than the previous MT format. This enables banks to transmit more contextual data within each message, improving reconciliation, compliance checks, and reporting accuracy.
Senior Officials at BOC said the project was part of the bank’s efforts to align with international best practices. “We recognised the importance of early adoption, given the scale of change in the global payment environment. Implementing SWIFT MX directly in our treasury system allows us to maintain full compatibility with international partners and deliver greater transparency in cross-border transactions.”
Globally, financial institutions are currently in a coexistence period, during which both MT and MX messages are used simultaneously. By the end of 2025, ISO 20022 will become the universal messaging format for high-value payment systems across all major currencies. Institutions that fail to transition risk being unable to process international transactions, as non-compliant messages will no longer be accepted by correspondent banks.
Bank of Ceylon’s implementation of SWIFT MX marks a notable advancement for Sri Lanka’s banking sector. It ensures that the bank’s systems are prepared for the global shift to standardised, data-driven payments, strengthening its role in international trade and finance while setting a benchmark for other local institutions to follow.
