Sri Lanka waives fees to boost QR payments

2026-03-24 - 10:15

AI-generated image Sri Lanka has approved a new programme to promote QR-based digital payments by removing fees on transactions below Rs. 5,000 to boost digital adoption and reduce cash use. The Cabinet of Ministers has granted approval for a programme aimed at accelerating the use of QR-code-based digital payments as part of the government’s broader push to strengthen the country’s digital economy. The move comes as the government continues to prioritise the expansion of digital financial systems to improve economic efficiency, increase financial inclusion, and enhance transparency in transactions. However, authorities note that cash is still widely used for everyday retail payments, which slows down the growth of digital payment systems and limits transparency. Currently, the LankaQR payment system is already in operation, supported by more than 20 financial institutions and around 30 mobile applications. Despite this infrastructure, active usage remains relatively low. Data from the third quarter of 2025 shows that about 274,000 transactions were carried out through LankaQR, with a total value of approximately Rs. 1.18 billion. This equals an average of around 90,000 transactions per month, worth about Rs. 390 million. The average value of each QR-based transaction is less than Rs. 5,000. Taking these factors into account, and in line with proposals outlined in the 2026 Budget, the Cabinet approved the proposal submitted by the President Anura Kumara Dissanayake in his capacity as the Minister of Digital Economy. Under the new programme, no additional fees will be charged to either the sender or the receiver for QR-based transactions below Rs. 5,000. The government expects that removing these charges will encourage more people and businesses to adopt digital payments instead of cash. Officials believe this step will help expand the use of digital financial services and strengthen Sri Lanka’s overall digital financial ecosystem.