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Trade Minister Dr. Bandula Gunawardena launches the LANKAQR by making a donation to Itukama COVID-19 fund using LANKAQR yesterday. State Minister of Money and Capital Markets and Public Enterprise Reforms Nivard Cabraal and Central Bank Payments and Settlements Department Director Dharmasri Kumaratunga look on
In a fresh effort to reduce cash use in Sri Lanka, the Central Bank yesterday launched the digital payment solution National LANKAQR Initiative “රට පුරාම (Rata Puraama) LANKAQR”, which will give small vendors the chance to make cashless transactions using mobile apps.
LANKAQR code was introduced by the Central Bank of Sri Lanka (CBSL) together with licensed financial institutions and LankaClear (Pvt) Ltd with the aim of moving towards a ‘cashless’ society while increasing financial inclusion in Sri Lanka, the monetary authority said in a statement.
“LANKAQR enables customers to make payments, directly from their bank accounts to accounts of merchants or service providers, using payment apps of LANKAQR certified financial institutions. LANKAQR is a low-cost digital payment solution, which targets small and medium enterprises especially. Customers will not be charged for using LANKAQR based payments. Merchants are provided with the LANKAQR printed sticker free of charge by the member institutions of LANKAQR to be displayed at their places of business,” CBSL said.
The maximum Merchant Discount Rate (MDR – fees paid by merchants to the bank that issues the LANKAQR code) will be 0.5% during 2020. In addition, all payments for government services through LANKAQR have been mandated to be free of charge during 2020. Given the numerous benefits to the economy and the public, CBSL and financial institutions aim to increase the availability of LANKAQR in Sri Lanka to one million merchants by the end of 2020.
CBSL Deputy Governor K.M.M. Siriwardena welcoming the audience stated that this initiative would increase financial inclusion in the country, strengthen trade and lead the economy in the path of prosperity.
Central Bank Payments and Settlements Department Director Dharmasri Kumaratunge highlighted the benefits of LANKAQR and noted that it was the result of Sri Lankan teamwork without any foreign assistance, saving the country millions of rupees. CBSL Governor Prof. W. D. Lakshman, stated that this is a historic moment where all financial institutions came together energetically to promote a payment system that has immense benefits to the public. State Minister of Money & Capital Market and State Enterprise Reforms Ajith Nivaard Cabraal emphasized the importance of adopting new technologies for trade and economic development.
Further, recognising the importance of efficient and secure payments and settlement systems for a country, he noted that the CBSL has been modernizing Sri Lanka’s payments and settlements systems since the early 2000s and praised the continued adoption of new technologies that provided Sri Lankans with more opportunities for trade and commerce.
Chief Guest, Minister of Trade Dr. Bandula Gunawardena congratulated the Central Bank and associated financial institutions for introducing LANKAQR and encouraged all businesses and government services to adopt LANKAQR, so that the general public can enjoy the benefits of digital payments at a very low cost.
The Hon. Minister also requested financial institutions to waive off charges for LANKAQR transactions below Rs.100/- and requested state media and other media organisations, as well as all businesses to extend their fullest support to this national initiative. To mark the launch of the “රට පුරාම LANKAQR” initiative, the Hon. Minister made a donation to the “Itukama” COVID-19 fund using a LANKAQR based mobile app.
The national campaign of “රට පුරාම LANKAQR” will be held on 10 October where all LANKAQR certified banks, finance companies and e-money service providers will open branches Island-wide to onboarding new merchants. Merchants and the public are invited to participate in the Island-wide campaign and begin using LANKAQR to make payments.
LANKAQR compliant QR codes are currently issued by Bank of Ceylon, Cargills Bank Limited, Commercial Bank of Ceylon PLC, DFCC Bank PLC, Hatton National Bank PLC, National Development Bank PLC, National Savings Bank, Nations Trust Bank PLC, People’s Bank, Sampath Bank PLC, SANASA Development Bank PLC, LB Finance PLC, LOLC Finance PLC, People’s Leasing and Finance PLC, Dialog Axiata PLC and Mobitel (Pvt) Ltd. The LANKAQR enabled apps are BOC SmartPay, DirectPay, Onepay, OrelPay, ComBank Q+, Flash, DFCC Pay, FriMi, NDB NEOS, SOLO, WePay, UPay, CIM, iPay, Dialog eZ Cash and Mobitel mCash.
The launch event was also attended State Minister of Co-operative Services, Marketing Development and Consumer Protection Lasantha Alagiyawanna, State Minister of Samurdhi, Household Economy, Micro Finance, Self-Employment, Business Development and Underutilized State Resources Development Shehan Semasinghe, Governor of the CBSL Professor W. D. Lakshman, Members of the Monetary Board including Secretary to the Treasury, Ministry of Finance S.R. Attygalle.
Heads of several government departments, financial institutions, as well as leaders of the retail, health and media industries and representatives from Chambers of Commerce were also present.
