In a significant milestone for regional digital payment interoperability, on 12^th May 2026 Sri Lanka and Nepal officially launched cross-border QR payment connectivity, enabling Nepali travellers visiting Sri Lanka to make seamless digital payments using their domestic payment applications, including mobile banking apps and connectIPS, at more than 400,000 merchants accepting LankaQRpayments across Sri Lanka.

The launch was formally announced at a special event held in Colombo in the presence of senior officials from the Nepal Rastra Bank, Central Bank of Sri Lanka, senior representatives from Nepal Clearing House Ltd. (NCHL) andLankaPay. The initiative marks a major advancement in regional financial integration and digital payment connectivity between South Asian nations, further strengthening secure, real-time, and interoperable payment ecosystems.

Nepal and Sri Lanka share longstanding historical, cultural, and religious ties, supported by growing tourism and business exchanges between the two countries. The new cross-border QR payment arrangement is expected to significantly enhance the travel experience for Nepali tourists and business visitors by providing a convenient, secure, and cashless payment option without the hassle of physical currency exchange.The interoperability between the national payment infrastructures of Nepal and Sri Lanka also opens new opportunities for merchants, particularly small and medium-sized enterprises, by enabling access to international customers through seamless digital acceptance.

Under this arrangement, Nepali users can make real-time payments in Sri Lanka by simply scanning LankaQR codes using participating payment applications from Nepal. Transactions are processed through regulated and secure payment infrastructure, ensuring convenience, safety, and efficiency for users and merchants alike.

Neelesh Man Singh Pradhan, Chief Executive Officer of NCHL, said “This partnership with LankaPay represents a significant step towards enabling convenient, affordable, and secure cross-border QR payments for consumers and businesses between Nepal and Sri Lanka. The initiative is expected to strengthen regional payment interoperability and further promote digital economic connectivity across South Asia.”

Channa de Silva, Chief Executive Officer of LankaPay, said“The launch of cross-border QR payments between Sri Lanka and Nepal marks another important milestone in LankaPay’s journey to expand international payment interoperability. This collaboration will enhance the historical ties between the two countries whileproviding greater convenience to travelers and local businesses.This initiative will also support the broader vision of growing seamless digital payments in the region.”

The cross-border QR payment connectivity reflects the shared commitment of both countries to promote inclusive digital financial services, strengthen regional payment interoperability, and accelerate the adoption of modern payment systems. By linking the two national payment ecosystems, the initiative is expected to support tourism, trade, and people to people connectivity while contributing to the broader vision of regional digital cooperation.

Nepal Clearing House Ltd.

Nepal Clearing House Ltd. (NCHL) is a public limited company promoted by the central bank of Nepal along with banks and financial institutions in Nepal to establish and operate multiple national payment systems and infrastructures. NCHL currently operates more than ten national-level systemically important payment infrastructures in Nepal, including the Electronic Cheque Clearing (ECC), Interbank Payment System (IPS), Retail Payment Switch (RPS), connectRTGS, National Payments Interface (NPI), connectIPS, CORPORATEPAY, National Payment Switch (NPS), NEPALPAY QR, NEPALPAY Card, EFT Switch, and NPIx for cross-border payment integrations. Its systems and networks are used by all major banks and financial institutions in Nepal, along with numerous non-bank entities and government institutions. During the last fiscal year, NCHL processed non-cash transactions exceeding NPR 18.6 trillion (approximately USD 124 billion) in settlement value.

LankaPay

Established in 2002, LankaPay is Sri Lanka’s national payment network, operating under the guidance of the Central Bank of Sri Lanka. Since commencing operations as the National Cheque Clearing House, LankaPay has evolved into a cornerstone of Sri Lanka’s digital payment ecosystem, facilitating majority of the domestic interbank payments and settlements. Owned jointly by the Central Bank of Sri Lanka and public and private sector banks, LankaPay is widely regarded as one of the most successful public-private partnerships in the region. The organization remains committed to advancing digital payments and fostering a financially connected society through the development of modern, secure, and interoperable payment infrastructure.

Launched in 2020 under the patronage of the Central Bank of Sri Lanka, LANKAQR is Sri Lanka’s national QR payment platform. It is an interoperable QR code standard that complies with EMVCo specifications, enabling customers to make seamless payments across participating financial institutions using any LANKAQR-enabled mobile payment application. At present, 22 financial institutions are connected to the LANKAQR network, and Nepal Clearing House Limited (NCHL) is the fifth international payment network to connect to LANKAQR, further strengthening the country’s cross-border digital payment capabilities.

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The “National QR Payment Promotion Programme” was launched by President Anura Kumara Dissanayake at the Presidential Secretariat today (06).

According to the government, a service fee will not be charged for transactions of up to a maximum of Rs. 5000 for these electronic payments.

The President’s Office states financial institutions have decided to completely remove the Merchant Discount Rate (MDR) charged to merchants for all LankaQR transactions up to Rs. 5,000, effective from today (06), enabling small-scale businesses to accept digital payments without additional costs.

The initiative aims to promote a cash-lite economy and reduce reliance on coins and banknotes while expanding the use of digital payment systems across the country.

According to official data, 89% of Sri Lanka’s adult population currently has access to banking facilities, while the CEFTS system processes around 68 million transactions per quarter, valued at Rs. 6.3 trillion.

The LankaQR system, supported by more than 20 financial institutions, is currently accepted at approximately 450,000 merchant locations nationwide. (Newswire)

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Reaffirming its commitment to bolstering Sri Lanka’s digital economy, Mastercard and LankaPay, the national payment network of Sri Lanka, today announced a strategic collaboration to enhance cards issuance, and digital payments acceptance and security. The announcement was made during an event featuring senior executives from the two entities, along with key representatives of leading banks and fintechs in the country.

This collaboration will enable three key solutions—a co-branded debit card to accelerate digital adoption and financial inclusion, Mastercard Pay Local solution to enable low-cost QR payments for inbound tourists and domestic merchants, and Mastercard’s Brighterion AI solutions for advanced transaction security.

The Mastercard-LankaPay co-branded debit card will deliver enhanced value to cardholders through Priceless Specials, a unified digital platform enabling exclusive offers. Similarly, Mastercard Travel and Lifestyle Services  will provide cardholders with global concierge services and travel deals.

Notably, issuing banks in Sri Lanka will be able to seamlessly integrate the new card into their existing business models, aligning with the government’s push for digital adoption while enhancing consumer engagement.

Further, Mastercard’s Pay Local solution will be enabled for inbound tourists to link their credit and debit cards with the LankaPay app to make instant payments at over 400,000 LankaQR merchants in their home currency. This will promote digital payments adoption among businesses, especially SMEs, thereby formalizing tourism revenue.

At the same time, Mastercard’s Brighterion AI solutions will provide real-time intelligence across diverse data sources to optimize fraud detection and customer experience across LankaPay network. By analyzing customer and network-level insights, Brighterion’s advanced algorithms will generate real-time fraud risk scores, enabling organizations to mitigate risks and maintain seamless user experience. The solution adapts to any data type, volume, or complexity, offering scalable protection for financial ecosystems.

Brighterion AI solutions will ensure that ATM and account-to-account transfers in Sri Lanka will now be secured by an advanced, AI-driven security layer, a first-of-its-kind upgrade, providing real-time fraud detection and enhanced protection.

Highlighting the significance of the collaboration, Sandun Hapugoda, Country Manager, Sri Lanka and Maldives, Mastercard, said, “This three-fold approach will further strengthen the core pillars of Sri Lanka’s digitization agenda— accessibility, security, and innovation. From ensuring seamless card issuance to securing payments and enabling global tourists to transact with great ease, this collaboration between Mastercard and LankaPay will unlock exciting opportunities for all stakeholders.”

Applauding the partnership, Channa de Silva, CEO, LankaPay, said, “This is a significant milestone in LankaPay’s global journey. We have been at the forefront of moving the financial inclusiveness needle forward in the country and this collaboration with Mastercard is a step in the same direction. The key initiatives unveiled as part of this association will ensure that the financial sector would benefit via enhanced value and improved security. At the same time, the domestic tourism industry would also benefit from seamless payments for travelers, thereby facilitating the much-needed foreign exchange into the country.”

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