Saturday Feb 28, 2026
Saturday Feb 28, 2026
Saturday, 28 February 2026 01:28 - - {{hitsCtrl.values.hits}}
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| Digital Economy Ministry Secretary Waruna Sri Dhanapala |
Sri Lanka has entered the final stage of enabling inward remittances through PayPal, marking a significant step toward modernising the country’s digital payment ecosystem.
Addressing the media this week, Digital Economy Ministry Secretary Waruna Sri Dhanapala said progress has been made through collaboration between private banks, PayPal and its parent company, with the Central Bank indicating the initiative is nearing completion.
He noted that while no official announcement has yet been issued, consultations with Central Bank officials overseeing bank supervision and payments confirmed that “there has been progress,” and the project is now in its concluding phase.
The move is aimed at lifting long-standing restrictions that prevented Sri Lanka from receiving payments via PayPal. Once operational, small and medium-scale enterprises (SMEs), particularly internet-based service providers and freelancers will be able to receive foreign income through a regulated online mechanism, beyond traditional card payment systems.
Dhanapala explained that the absence of a Sri Lankan address option had compelled many local entrepreneurs to use foreign or proxy addresses to open overseas accounts, leading to a loss of valuable foreign exchange inflows. Under the proposed framework, transactions will fall within the Central Bank’s regulatory oversight, improving transparency while offering greater convenience to users.
The Ministry Secretary also acknowledged that informal remittance channels such as Undiyal continue to operate, but said the new PayPal-enabled mechanism is expected to encourage a shift toward formal, Government-recognised platforms. “This would also enable proper tax compliance on earnings, creating additional revenue benefits for the state while strengthening foreign exchange inflows,” he added.
