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)

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The Ministry of Digital Economy says GovTech Ltd., the organization replacing the Information and Communication Technology Agency of Sri Lanka (ICTA), is expected to become fully operational within 3–6 months.

According to the Sunday Morning newspaper, Acting Secretary to the Ministry, Waruna Sri Dhanapala, said an appropriate organisational structure is yet to be determined for the entity and that the required workforce was yet to be hired.

He further said that the ministry has commenced the process to hire a consultancy firm to recommend an appropriate organisational structure.  

Waruna Sri Dhanapala also revealed that the government has formally incorporated GovTech as a legal entity, appointing Hans Wijayasuriya as its Chairman, along with the Board of Directors. 

He said the government has allocated funds in the Budget 2026 for the operations of GovTech, while financial support will also be received from the Asian Development Bank and the World Bank.

The Acting Secretary of the Ministry of Digital Economy noted that ICTA will not be shut down until these measures are implemented and GovTech becomes fully operational. 

He said that a Cabinet decision had been made to close down ICTA and that the Treasury had been instructed to commence the liquidation process accordingly. 

However, it is essential to ensure that GovTech is established in parallel with this liquidation, Waruna Sri Dhanapala added. (Newswire)

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