Officially introduces PayPal to Sri Lanka

Marking a historic turning point in Sri Lanka's digital economy sector, the official announcement regarding the expansion of PayPal services provided to the country was made this morning (16) at the Galle Face Hotel in Colombo, under the patronage of Prime Minister Dr. Harini Amarasuriya.

Following over twelve years of discussions and delays, this achievement will remove the "Send Only" restriction previously imposed on account holders in the country. Accordingly, Sri Lankan freelancers, small and medium-sized entrepreneurs, and those engaged in the IT sector, who faced severe difficulties in receiving payments from international clients, will now have the opportunity to directly receive their earnings into local bank accounts. This will also directly contribute to increasing the amount of legitimate foreign exchange flowing into the country.

As an initial step, this new service will be implemented through financial institutions such as Bank of Ceylon, Commercial Bank, and Sampath Bank, with other banks expected to join soon. PayPal, which started in California, USA, in 1998, is now the world's leading digital payment network, providing services to over 430 million users in more than 200 countries worldwide. Their annual transaction value exceeds US$ 1.5 trillion.

Joining the occasion, Prime Minister Dr. Harini Amarasuriya stated that the core principles of the current government's economic vision – fairness, transparency, and accountability – are well reflected in this digital transformation. She emphasized that by introducing a globally recognized secure platform to the country, replacing fraudulent and insecure financial systems, Sri Lanka will be positioned as a more reliable economy at regional and international levels.

Deputy Minister of Digital Economy, Mr. Eranga Weeraratne, pointed out that due to the lack of a proper payment mechanism, a large shadow industry had emerged as digital exporters in the country resorted to illegal methods (grey-market). He stated that the government's goal is to increase Sri Lanka's digital export revenue from the current approximately US$ 1.5 billion to US$ 15 billion by 2030, thereby raising the digital economy's contribution to the Gross Domestic Product to 20%. Additionally, the Deputy Minister mentioned that efforts are underway to introduce digital tourist visas and that new legal frameworks are being developed for the regulation of digital currencies and virtual assets.

Speaking at the event, Presidential Secretary Dr. Nandika Sanath Kumanayaka stated that this achievement was a successful outcome of direct discussions personally facilitated by the Presidential Secretariat with PayPal representatives in India. He extended special thanks to Dr. Muditha Senarath Yapa for his contribution. Governor of the Central Bank of Sri Lanka, Dr. Nandalal Weerasinghe, expressed his pleasure that while PayPal officials had not viewed Sri Lanka positively during discussions in Singapore a few years ago, they have now correctly recognized the country's potential.

Mr. Nath Parameshwaran, Director of Corporate Affairs for India and South Asia at PayPal, and Ms. Nadia Sayed, Senior Vice President for the Asia Pacific region, also spoke at the event. They highlighted that their organization's objectives align well with Sri Lanka's 2030 Digital Economy Vision, and that this initiative will enable Sri Lankan small businesses and freelancers to connect with over 439 million active PayPal account holders across 200 global markets.

Commenting on this new service, Mr. Y. A. Jayathilaka, Acting Chief Executive Officer of Bank of Ceylon, stated that this is an excellent opportunity to securely bring in foreign earnings for approximately 150,000 freelance service providers who transact with their bank. Mr. Sanath Manatunga, Managing Director of Commercial Bank, described this as a critical milestone in the country's digitalization, while Mr. Sanjaya Pradeep Gunawardena, Managing Director of Sampath Bank, emphasized that this is a key technological solution that actively connects Sri Lanka to the global economy.

The historic occasion was attended by a large number of government officials, heads of financial institutions, industrialists, and entrepreneurs, including Minister of Industries and Enterprise Development Sunil Handunnetti, Minister of Labour and Deputy Minister of Finance and Planning Dr. Anil Jayanth Fernando, Deputy Minister of Industries and Enterprise Development Chathuranga Abeysinghe, Presidential Senior Advisor Gomika Udugamasooriya, Presidential Advisor Hans Wijesuriya, and Dr. Muditha Senarath Yapa.