Sri Lanka is set to enhance its digital economy and boost foreign exchange inflows with the government’s recent decision to permit direct fund transfers into the country via PayPal, a prominent global online payment service.
This initiative comes in response to persistent calls from the nation’s business sector, IT specialists, and freelancers, who have emphasized the necessity of such a service for years.
All preparations have been completed for the official rollout of this service, scheduled for May 15.
This development was made possible after extensive discussions over the last several months involving the Ministry of Digital Economy, the Central Bank of Sri Lanka, and private banking institutions, aimed at eliminating the legal and technical obstacles that had previously hindered direct PayPal transactions to Sri Lanka.
The government has indicated that local businesses will no longer need to use fictitious foreign addresses or informal money transfer channels to obtain payments from international clients.
With the establishment of this new system, small and medium-sized online service providers will be able to receive funds directly into their local bank accounts, thereby enhancing the country’s official foreign exchange revenue.
The operations will be fully regulated by the Central Bank, promoting increased transparency in financial transactions and allowing the government to systematically collect taxes on the relevant earnings.
Economic experts believe that the launch of this service on May 15 will represent a significant advancement in the development of Sri Lanka’s digital commerce industry.
