Cross-border payments: PayPal to be enabled in Sri Lanka from 15 May
The Morning: In a major step forward for Sri Lanka’s digital economy and foreign exchange inflows, the Sri Lankan Government has decided to enable direct receipt of funds into Sri Lanka through PayPal, one of the world’s leading online payment platforms.
The move comes after years of requests from the country’s business community, IT professionals, and freelancers, who have long highlighted the need for such a facility. Accordingly, all arrangements have now been finalised to officially launch the service from 15 May.
The opportunity became possible following discussions held over the past several months among the Ministry of Digital Economy, the Central Bank of Sri Lanka, and the country’s private banking sector to remove the legal and technical barriers that previously prevented direct PayPal transfers into Sri Lanka.
The government stated that local entrepreneurs will no longer need to rely on fake overseas addresses or unofficial money transfer methods to receive payments from foreign clients.
The process will operate under the full regulation of the Central Bank, ensuring greater transparency in transactions while also enabling the government to collect due tax revenue from relevant earnings in a more systematic manner.
OSL take:
Sri Lanka’s decision to enable direct receipt of funds through PayPal marks a significant step in strengthening the country’s digital economy and enhancing its appeal as an emerging business destination in South Asia. The move is expected to improve cross-border payment accessibility, increase foreign exchange inflows, and provide local entrepreneurs, freelancers, exporters, and technology firms with seamless access to global markets. The development creates attractive business/investment opportunities for foreign businesses/investors seeking to tap into Sri Lanka’s growing digital and services sectors. International companies can explore investments in fintech, e-commerce, IT outsourcing, digital services, online education, and startup ecosystems that are expected to benefit from improved payment connectivity. Easier international transactions will also support the expansion of small and medium-sized enterprises (SMEs), creating opportunities for strategic partnerships, venture capital investments, and technology collaborations. As Sri Lanka continues to modernise its digital infrastructure and integrate with global financial systems, the country is positioning itself as a competitive regional hub for innovation, remote services, and digital entrepreneurship. Combined with its skilled workforce and strategic location in the Indian Ocean, the growing business/investment opportunities present lucrative long-term ventures for foreign businesses/investors looking to establish a presence in South Asia’s evolving digital economy.
| Article Code : | VBS/AT/20260512/Z_2 |