UPI payment system : Benefits for SL businesses explained

February 12, 2024 at 10:44 PM

  • The utilization of digital payment systems offers numerous benefits for small and medium enterprises

A press conference was held yesterday (12) at the President’s Media Center to announce a significant development aimed at making payments easier for Indian tourists in Sri Lanka.

The conference followed the virtual launch introducing UPI transactions, highlighting their groundbreaking impact in connecting Sri Lanka and India.

Jointly implemented by NPCI International Payments Limited and Sri Lanka’s LankaPay Pvt. Ltd., the program seeks to rapidly expand this payment system across 10,000 stores simultaneously. By March 2024, there are plans to further extend this facility to encompass a staggering 65,000 stores nationwide.

During the conference, Mr. Wasantha Alwis, Director (Payments and Settlements) of the Central Bank, elucidated that businesses can easily obtain QR codes by contacting their respective financial institutions and reaching a trade agreement. He emphasized that all banks and financial institutions registered with the Central Bank of Sri Lanka are mandated to issue these codes.

The move is expected to open up avenues for small and medium businesses in Sri Lanka, as many Indian tourists are already familiar with QR code payments. Transactions made through this system will be credited to relevant accounts in Sri Lankan Rupees and recipients will receive immediate notification via text message.

Furthermore, small and medium-sized businessmen stand to benefit as they will become eligible for bank loans after a period of six months, owing to the income generated through these transactions.

Looking ahead, the initiative aims to expand the system further, enabling Sri Lankans to make payments through QR codes in India.

LankaPay Chairman Dr. Kenneth De Silva, LankaPay CEO Channa De Silva, Nations Trust Bank Senior Vice Chairman (Digital Banking) and Representative of LANKAQR Implementation Committee Randil Botheju, and LOLC Chairman and Fintech representative Conrad Dias were also attend at the press briefing. (PMD)