Cabinet greenlights fee-free QR payments

The Cabinet of Ministers has granted approval for a proposal aimed at promoting QR code-based digital payments by ensuring that no additional charges are levied on either the sender or the receiver for transactions valued below Rs. 5,000.

The government has identified the promotion of a digital economy as a national priority, with a view to enhancing economic efficiency, financial inclusion, and transparency.

Despite these objectives, Sri Lanka continues to rely heavily on cash for day-to-day retail transactions, thereby limiting the growth of transparency and the broader digital ecosystem, according to a statement by the Department of Government Information.

At present, more than 20 financial institutions and approximately 30 mobile applications support LankaQR facilities. However, active usage remains relatively low.

During the third quarter of 2025, approximately 274,000 transactions were recorded via LankaQR, with a total value of around Rs. 1.18 billion. This translates to an average of approximately 90,000 transactions per month, amounting to about Rs. 390 million.

Observations indicate that the average value of a QR-based transaction remains below Rs. 5,000.

Accordingly, taking these factors into consideration, and in line with proposals presented in the 2026 Budget, the Cabinet of Ministers approved the proposal submitted by the President in his capacity as the Minister of Digital Economy. The programme is expected to encourage the adoption of QR-based payments by eliminating transaction charges for low-value payments, thereby promoting wider usage of digital financial services.