📈 Bridging Sri Lanka's Digital Payment Adoption Gap

• Core Issue: Sri Lanka possesses fully operational real-time payment infrastructure, yet cash remains dominant due to adoption barriers rather than technical limitations. • Existing Infrastructure: • LankaPay operates the national ATM network and common infrastructure. • CEFTS handles instant, 24/7 interbank fund transfers. • SLIPS and RTGS process same-day and large-value settlements. • Adoption Barriers: • Unfamiliarity and security concerns among consumers, especially in rural areas and among older demographics. • Lack of merchant incentives, as small businesses face POS costs, fees, and delays compared to cash. • Low public awareness regarding system operations, fees, and settlement times. • Economic Impact: • Heavy cash reliance increases operating costs for businesses balancing tills and banks transporting currency. • Restricts government efforts to broaden the tax base and legitimise economic activity. • Excludes rural populations from efficient digital finance solutions. • Proposed Solutions: • Offer lower or zero transaction fees for small merchants in their first year. • Launch localized, step-by-step public awareness campaigns. • Simplify digital onboarding processes across commercial banks.