LankaPay CEO outlines plan to make Sri Lanka a regional fintech powerhouse

• Fintech Forum Sri Lanka aims to position the country as a regional fintech hub through cross-sector collaboration
• LankaPay CEO Channa de Silva says despite existing infrastructure, cash remains dominant with Rs. 1.3 t in circulation and 1.5% of GDP spent on cash-related costs  
• Calls for context-driven digital solutions and overseas fintech expansion to attract FDI and boost inclusion among rural populations

FinTech Forum Chairman Channa de Silva - Pic by Lasantha Kumara

By Janani Kandaramage

As part of a broader effort to accelerate digital transformation, the Government in collaboration with industry stakeholders are striving to improve financial inclusivity across Sri Lanka — particularly for underserved retail and rural populations.

LankaPay CEO Channa de Silva recently reaffirmed the organisation’s commitment to positioning Sri Lanka as a regional hub for financial technology innovation. This effort is driven by the Fintech Forum Sri Lanka, a platform launched in 2023 to foster collaboration among banks, non-banking financial institutions, fintech firms, and technology providers.

Speaking at the launch of Sri Lanka FinTech Summit 2025, de Silva noted that while Sri Lanka’s financial sector is already “roads ahead” in terms of digital adoption, a significant gap persists in uptake among rural communities and small businesses.

“Digital transactions within the banking sector alone amounted to over (Rs. 34) trillion last year — more than the country’s GDP,” the representative said. “Of that, Rs. 17.8 trillion were real-time digital payments. So adoption is clearly happening — but mostly in corporate and urban sectors,” he told a media briefing organised by the Fintech Forum.

Highlighting the potential of fintech to reach segments underserved by traditional banks, he observed that with nearly 80% of Sri Lanka’s population residing in rural areas, advancing grassroots financial inclusion remains a critical national priority.

“To support this transition, the Forum is actively fostering partnerships between fintech startups and legacy financial institutions,” he added, stating that the goal is to harness their agility and innovative capabilities to extend financial services to the last mile. 

Stressing the need for progressive regulation to protect the financial system, he said: “We are dealing with people’s money. One bad actor can damage trust in the entire ecosystem,” he said, adding that the Forum is working with regulators to develop ethical and governance frameworks.

Despite the availability of digital infrastructure, Sri Lanka remains heavily cash-dependent, with Rs. 1.3 trillion in circulation, he cautioned, identifying behavioural and cultural resistance — especially among merchants and SMEs reluctant to have their income digitally recorded — as major obstacles to broader adoption of digital payments.

He further explained that maintaining a cash-based system comes at a cost, with estimates suggesting it consumes around 1.5% of GDP when accounting for printing, distribution, security, and logistics. Reducing cash usage by even 30% could potentially free up 0.5% of GDP for public investment and social welfare.

“It’s not about eliminating cash overnight. Even in countries like India, digital and cash transactions have both grown. But we must drive this shift purposefully,” he opined.

The LankaPay CEO also warned against simply importing foreign digital solutions without adaptation. “Technologies that thrive in places like Kenya — where banking infrastructure was historically absent — may not work here, where ATMs are readily accessible and cash is deeply embedded in daily transactions.”

He emphasised that the focus should be on addressing local challenges through contextually relevant technologies. Stating the digitisation of traffic fine payments via existing mobile banking apps as an example, he argued that the solution required no new infrastructure — only more intelligent, efficient implementation. “Technology is already here. The question is how we use it to solve real problems. If it does that, people will adopt it,” he said.

He stated that the long-term vision is to establish Sri Lanka as a regional fintech centre of excellence. Given the limited scale of the domestic market, efforts are also underway to support local fintech companies in expanding internationally and attracting foreign direct investment. “If we work together — industry, Government, and media — we can elevate Sri Lanka to new heights in the digital economy,” he added.

Organised by ecxa Ltd., in collaboration with the Ministry of Digital Economy, the Ministry of Finance, Planning and Economic Development, Hatton National Bank PLC (HNB) and the FinTech Forum of Sri Lanka, the The landmark Sri Lanka FinTech Summit, is scheduled to take place on 24-25 September at t the Bandaranaike Memorial International Conference Hall (BMICH).