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 ground breaking 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.

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Today’s discussion features Deputy Postmaster General Thusitha Hulangamuwa, 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.

How significant is the Postmail 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 restricting 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 post, 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, modernised 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.

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