Marking a significant milestone in the digital economy, the official announcement on the expansion of PayPal services in Sri Lanka was made this morning (16) at the Galle Face Hotel under the patronage of Prime Minister Dr Harini Amarasuriya. 

Prime Minister Dr. Harini Amarasuriya, welcomed the initiative by Sri Lankan banks to collaborate with PayPal, the President’s Media Division reported. 

PayPal services will soon be made available in Sri Lanka through initial banking partners Bank of Ceylon, Commercial Bank of Ceylon and Sampath Bank PLC, with additional banks expected to join in the coming months, the statement said. 

The announcement marks a significant step in ongoing efforts to strengthen secure and trusted cross-border payment access for Sri Lankan consumers, freelancers, entrepreneurs, start-ups and businesses. 

Sri Lanka’s digital economy agenda is focused on enabling inclusive growth, supporting digital entrepreneurship and strengthening the country’s connectivity with international markets. 

The expansion of cross-border payment services is expected to play an important role in advancing this vision by enabling Sri Lankan small businesses, start-ups and enterprises to participate more actively in global commerce. 

Sri Lanka’s micro, small and medium-sized enterprises are estimated to contribute approximately 52% of the country’s GDP, underscoring the importance of improving global market access for the sector. 

Freelancers, entrepreneurs, small businesses, start-ups and digital service providers are expected to benefit from improved payment interoperability and more secure and trusted methods of transacting with customers worldwide, the PMD added.

Addressing the event, Prime Minister Dr. Harini Amarasuriya said; 

“This is indeed a moment of celebration, and I think one that is testament to the fact that Sri Lanka’s role in the digital economy is finally being recognised, and that we are able to position ourselves both regionally and globally. As many of you know, we have ambitious targets for our digital economy, and this is expected to become one of our primary areas of growth and job creation. 

We also have many talented freelancers in this sector, and establishing a system of transparent and secure financial services is absolutely important to our growth strategies and to establishing ourselves in this space. The SME sector, online services, e-commerce and the digital economy are all closely linked, and I believe this is a rapidly expanding sector where we can expect some of the most exciting growth opportunities in the months and years ahead. 

I think it is extremely important that online services and payments come under a more secure, legitimate and accountable system. We have seen increasing concerns globally about scams, insecure systems and dubious transactions, so establishing a globally accepted and integrated platform that ensures accountability and security is essential as we move forward. 

While we are looking to the digital economy, the SME sector and e-commerce as major areas of growth, we cannot forget that our economic growth plan is organised around two fundamental principles: equity, ensuring that no one is left behind, and transparency and accountability. 

As we think about expanding the SME sector, supporting freelancers, growing e-commerce and strengthening our digital economy, we must also ensure that the longstanding issues our country has faced, social inequity, economic inequity and widening disparities in growth, are addressed. Our growth must be inclusive, equitable and socially responsible. I am hopeful that our younger generation, which is enthusiastically participating in this transformation, will take the lead in ensuring that Sri Lanka’s future growth reflects those values. 

I hope this collaboration and initiative will bring the benefits we are all hopeful for, and that it will ensure our country remains on the path not only to recovery and resilience, but also to positioning itself regionally and globally as a trustworthy nation, one that is capable of doing much more than merely following others, and one that is positioned as it truly deserves to be.” 

Deputy Minister of Digital Economy, Eranga Weeraratne said: 

“For decades, Sri Lanka failed to introduce a trustworthy, simple and efficient payment solution, despite having talented people, globally competitive products and ambitious plans for the future. 

We had entrepreneurs, freelancers and exporters delivering services to the world, but we did not have the proper platforms to support them or to help them receive payments efficiently. With the hard work of the President’s Secretariat, the Ministry of Digital Economy, the Ministry of Finance and all stakeholders, we have now been able to unlock this much-needed digital payment platform for Sri Lankans. 

This platform is not only making it easier for Sri Lankans to receive payments from overseas, but also making it easier for clients around the world to do business with Sri Lanka. 

For many years, the lack of trusted and efficient payment systems pushed people towards informal and grey-market solutions, meaning a significant amount of money never entered Sri Lanka’s formal financial system. According to current assessments, Sri Lanka’s digital exports amount to around US$1.5 billion, but there is also a large shadow industry because people have struggled to receive payments through formal channels. 

This Government is committed to removing those barriers and making it easier to do business in the right way. We are also working on introducing regulatory frameworks for digital currencies and virtual assets as part of our broader digital transformation agenda. 

We want to encourage more young entrepreneurs, freelancers and SMEs to participate in exports and the digital economy. Recently, we also introduced digital nomad visas as part of this strategy. 

This is how we plan to build a US$15 billion digital economy by 2030 and increase the digital economy’s contribution to 20% of GDP. With the guidance of His Excellency the President, the Ministry of Digital Economy is spearheading this transformation together with all partner ministries and stakeholders.”

--PMD