LankaPay, Sri Lanka’s largest interoperable payment network, has become the backbone of the country’s digital economy, driving significant growth and transformation. In 2023, digital transactions through LankaPay exceeded the country’s GDP, demonstrating the profound impact digital payments have on the nation’s economy. Nearly half of Sri Lanka’s economic output was transacted through real-time payment systems powered by LankaPay, contributing to faster business operations, efficient financial services, and quicker access to funds, stimulating nationwide economic activity.
Saving Billions for the Economy
LankaPay has played a critical role in reducing Sri Lanka’s dependence on international payment networks, saving billions of rupees in fees and commissions. By routing most domestic financial transactions through its local network, LankaPay has significantly reduced the costs associated with cash handling. The cost of printing, issuing, distributing, transporting, and securing currency—estimated at 1.5% of GDP—is now being redirected into more efficient, digital solutions.
LankaPay’s services, such as CEFTS, JustPay, LankaQR, and SLIPS, enable over 100 billion rupees in daily cashless transactions, reducing the strain of a cash-based economy and allowing funds to flow seamlessly within the country.
Creating Inclusive Financial Access
LankaPay’s core mission is financial inclusivity, ensuring that all citizens, regardless of location, have access to secure and efficient financial services. The Sri Lanka Interbank Payment System (SLIPS), which facilitates same-day electronic fund transfers, now processes nearly 70% of salary payments, providing employees with timely access to their earnings and contributing to economic stability.
The JustPay platform has revolutionized mobile payments, with over 2.5 million transactions valued at over Rs. 12 billion occurring monthly. This service empowers rural populations with safe, accessible, and cashless financial engagement, helping small and medium-sized enterprises (SMEs) enhance their creditworthiness and extend their market reach.
Transforming Government Digital Payments
LankaPay has significantly enhanced government revenue collection through its Government Payment Platform, which facilitates real-time digital payments to public institutions. This platform processed approximately Rs. 1 trillion in government payments during the 2023/24 financial year. LankaPay’s efforts have streamlined revenue collection, reduced cash reliance, and contributed to greater transparency in government financial operations.
Through services like LankaRemit for secure inward remittances, LankaPay supports the government’s economic resilience while improving access to government services for citizens.
Forging International Partnerships
As Sri Lanka becomes more globally connected, LankaPay has formed strategic partnerships with UnionPay and the National Payments Corporation of India (NPCI), allowing international tourists to make payments directly using their home bank accounts via LankaQR. These collaborations strengthen Sri Lanka’s position on the global stage, improving convenience for citizens, businesses, and tourists alike.
Pioneering Digital Payment Systems in the Region
Despite being a smaller economy, Sri Lanka has led South Asia in digital payment innovations. LankaPay introduced the Nationwide T+1 Cheque Clearing system in 2006, enabling next-day cheque clearing across the country. In 2010, LankaPay launched SLIPS, the first same-day electronic bulk payment system in South Asia, and later introduced JustPay, a mobile payment network accessible directly from bank accounts.
LankaPay also pioneered the Financial Sector Computer Security Incident Response Team (FinCSIRT), which strengthened the cybersecurity of financial transactions, building public trust in digital payments. LankaPay’s commitment to payment security earned it the distinction of being the first entity in Sri Lanka certified with PCI-DSS, setting new standards in payment security.
The Unseen Factor of Economic Growth
Behind the scenes, LankaPay plays a vital role in keeping Sri Lanka’s economy running smoothly. By providing innovative digital payment solutions and prioritizing financial inclusion, LankaPay has bolstered the nation’s financial infrastructure. As it continues to lead digital payment innovations, LankaPay remains a key driver of Sri Lanka’s resilient and inclusive digital economy.
