Sri Lanka Nears Breakthrough on PayPal Remittances

COLOMBO (News 1st); Secretary to the Ministry of Digital Economy, Waruna Sri Dhanapala, says Sri Lanka is in the final phase of enabling PayPal‑supported inward remittances, following progress made between private banks, PayPal and its parent company.

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 confirmed that “there has been progress,” with the Central Bank indicating that the initiative is now in its final stage.

He noted that the collaboration between several private banks and PayPal aims to ease long‑standing restrictions that previously prevented Sri Lanka from receiving payments via the platform. Once implemented, this will allow small and particularly medium‑scale businesses, including internet‑based service providers, to receive foreign income through a formal online mechanism beyond traditional credit and debit card payments.

Dhanapala pointed out that the lack of a Sri Lankan address option had forced many local businesses to use fake or foreign addresses to open overseas payment accounts, resulting in a loss of valuable foreign exchange to the country.

He said that once the new facility is formalised, these transactions will fall under the Central Bank’s regulatory framework, providing convenience to both consumers and entrepreneurs seeking faster and legitimate online payment channels.

The initiative is also expected to improve transparency. Dhanapala said informal remittance methods such as Undiyal still exist, but the new mechanism would move users away from such unofficial channels toward a government‑recognized system.

He added that any taxes due from these earnings could then be properly accounted for, creating additional benefits for the government.