Sri Lanka has entered the final stage of enabling inward remittances through PayPal, Secretary to the Ministry of Digital Economy, Waruna Sri Dhanapala said.
According to NewsFirst, he confirmed that progress has been made in collaboration between private banks, PayPal, and its parent company, with the Central Bank indicating the initiative is now nearing completion.
Speaking on recent media reports, Dhanapala said he had consulted Central Bank officials responsible for bank supervision and payments. While no official announcement has yet been issued, he noted that “there has been progress,” and the project is in its concluding phase.
The initiative aims to ease long‑standing restrictions that prevented Sri Lanka from receiving payments via PayPal. Once implemented, small and medium‑scale businesses, particularly internet‑based service providers, will be able to receive foreign income through a formal online mechanism beyond traditional card payments.
Dhanapala pointed out that the absence of a Sri Lankan address option had forced many local businesses to use fake or foreign addresses to open overseas accounts, resulting in a loss of valuable foreign exchange. Under the new system, transactions will fall within the Central Bank’s regulatory framework, offering convenience to consumers and entrepreneurs while ensuring transparency.
He added that informal remittance methods such as Undiyal still exist, but the new mechanism will encourage users to shift toward a government‑recognized channel. Taxes due from these earnings can then be properly accounted for, creating additional benefits for the government. (Newswire)
