Survey conducted by Visa shows Sri Lanka has potential of achieving US$ 200 million annual net benefits
An independent survey conducted by Roubini Thought Lab and commissioned by Visa has reportedly examined the economic impact of increasing the use of digital payments in major cities around the world, including Colombo and it has been found that Colombo could achieve up to US$ 200 million annual net benefits.
“Colombo, with a population of 694,000 and GDP of US$ 6.5 bn, could gain US$ 200 million annual net benefits by moving in to digital payments,” Chief Risk Officer, Asia Pacific, Visa in Colombo, Joe Cunningham has been quoted as saying in the media.
According to the report, estimated catalytic impacts for the city over the next 15 years include 20.4 basis point increases in GDP growth rate and 2.1% increase in employment.
Cunningham has reportedly urged that there were significant benefits of going less cash and has added that Sri Lankan stakeholders should move towards a less cash economy.
On e-commerce, Cunningham has stated that creating a secure payment ecosystem was critical to the success of the nascent eCommerce market in Sri Lanka.
Worldwide, E-commerce activity has been growing at over 5% year on year over the past five years, and is estimated to top USD 27 trillion by 2020. Emerging economies in Asia Pacific expected to drive a bulk of these sales, where consumers are increasingly shifting to digital experiences. Digital commerce is also being transformed by the advent of connected devices.
The survey commissioned by Visa indicates the growth potential in Sri Lanka in the use of digital payments. Given the Sri Lankan government’s commitment to take the country to the next level in e-commerce, Sri Lanka could achieve the predicted US$ 200 million annual benefits in digital payments. This would open an opportunity for foreign investors to create and introduce digital payment platforms for Sri Lankan businesses.
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