Sri Lanka turns down request to join Russia’s MIR payment system

The Central Bank of Sri Lanka (CBSL) today said that it is “not in a position to consider favorably” to the request to operate Russia’s MIR bankcards within the country’s banking system due to the US sanctions on the payment system.

“Due to the US sanctions on the MIR payment system, as confirmed by the Ministry of Foreign Affairs - Sri Lanka, the Central Bank of Sri Lanka is not in a position to consider favorably, at the current juncture, the request to operate MIR card scheme within the banking system,” the CBSL said in tweet.

It was reported last month that Sri Lankan authorities are discussing with Moscow the possibility of joining Russian payment system MIR, and that the discussion was underway between the Central Banks.

The importance of Mir cards for Russians rose substantially this year after U.S. payments firms Visa Inc and Mastercard Inc suspended operations in Russia and their cards that were issued in Russia stopped working abroad, against the backdrop of Russia’s invasion and continuing war against Ukraine.

Cuba, South Korea, Turkey, Vietnam and a handful of former Soviet republics accept Mir, which means both “peace” and “world” in Russian, with others such as Iran intending to follow suit soon.

Due to the US sanctions on the MIR payment system, as confirmed by the Ministry of Foreign Affairs - Sri Lanka, the @CBSL is not in a position to consider favorably, at the current juncture, the request to operate MIR card scheme within the banking system.

— CBSL (@CBSL) October 13, 2022