Sri Lanka has entered the final stage of enabling inward remittances through PayPal, according to Secretary to the Ministry of Digital Economy Waruna Sri Dhanapala.
Speaking to media, Dhanapala said progress has been made through collaboration between private banks, PayPal and its parent company, with the Central Bank of Sri Lanka indicating that the initiative is now nearing completion. He noted that although no official announcement has yet been issued, consultations with Central Bank officials in charge of bank supervision and payments confirmed that the project is in its concluding phase.
The move is expected to ease long-standing restrictions that prevented Sri Lanka from receiving payments via PayPal. Once implemented, small and medium-scale enterprises—particularly internet-based service providers—will be able to receive foreign income through a formal online platform, rather than relying solely on traditional card-based payment systems.
Dhanapala pointed out that the lack of a Sri Lankan address option had previously forced many local entrepreneurs to use foreign or inaccurate addresses to open overseas accounts, leading to a loss of valuable foreign exchange. Under the new system, transactions will fall within the Central Bank’s regulatory framework, ensuring greater transparency while offering improved convenience for businesses and consumers.
He added that although informal remittance channels such as Undiyal continue to operate, the introduction of an officially recognised digital mechanism is expected to encourage users to shift to regulated channels. This would also enable proper tax reporting on foreign earnings, generating additional revenue benefits for the government.
