Sri Lanka Pushes Cash‑Lite Economy With LankaQR Launch

COLOMBO (News 1st); Sri Lanka took a major step towards strengthening its digital payments ecosystem today (06) with the official launch of the National QR Payment Adoption Program by President Anura Kumara Dissanayake, alongside the removal of Merchant Discount Rate for LankaQR transactions of up to Rs. 5,000.

The President's Media Division said that financial institutions have taken steps to completely remove the Merchant Discount Rate (MDR) charged from merchants on all LankaQR transactions up to Rs. 5,000. This is intended to enable small-scale merchants to accept digital payments without incurring any additional costs.

The symbolic launch of the LankaQR person‑to‑person (P2P) payment system took place at the President’s Office, officiated by President Dissanayake. At the same event, the President also launched the National QR person‑to‑merchant (P2M) payment system, expanding the scope of QR‑based digital transactions across the country.

In a parallel development aimed at accelerating Sri Lanka’s transition towards a cash‑lite economy, all service charges levied on merchants for LankaQR transactions of up to Rs. 5,000 were completely removed with effect from today.

The primary objective of the initiative is to reduce reliance on physical cash, including notes and coins, while promoting the wider adoption of digital payment methods nationwide.

The combined launch of the National QR P2P and P2M payment systems, together with the removal of merchant service charges, is expected to boost digital transaction volumes.

The President's Media Division said that Sri Lanka already possesses a robust digital financial infrastructure, with 89% of the adult population having access to banking facilities.

In addition, the CEFTS system processes 68 million transactions per quarter, amounting to Rs. 6.3 trillion in value. The LankaQR system, supported by more than 20 financial institutions, is currently accepted at 450,000 merchant locations nationwide. However, despite this progress, currency in circulation still stands at Rs. 1.48 trillion, while LankaQR transactions amounted to only around Rs. 395,000 per month as at the third quarter of 2025. To bridge this gap, several targeted strategies will be implemented under the programme commencing tomorrow.

Furthermore, a special raffle programme will be introduced for both consumers and merchants to encourage the use of QR payments.

Participants will have the opportunity to win valuable prizes of up to Rs. 1,000,000, with first, second and third place winners selected on a weekly and monthly basis.

By promoting QR-based transactions, the Government aims to foster fast, secure and transparent digital payment habits, ensuring that every citizen, regardless of location or language, can actively participate in the digital economy.