National QR payment promotion programme to be launched tomorrow

Starting tomorrow, Sri Lanka will launch a new program called the “National QR Payment Promotion Programme.” According to the President’s Media Division (PMD), the service charge for merchants on all LankaQR transactions up to Rs. 5,000 will be eliminated. This initiative, led by President Anura Kumara Dissanayake, aims to move Sri Lanka towards a cash-lite economy, reducing the need for coins and banknotes. From tomorrow, financial institutions will stop charging merchants the Merchant Discount Rate (MDR) on all LankaQR transactions up to Rs. 5,000. This change is intended to help small merchants accept digital payments without extra costs. In Sri Lanka, 89% of adults have access to banking services, which supports a strong digital financial system. The CEFTS system processes 68 million transactions each quarter, totaling Rs. 6.3 trillion. Currently, the LankaQR system, which is backed by over 20 financial institutions, is accepted at 450,000 merchant locations across the country. Despite this growth, there is still Rs. 1.48 trillion in currency in circulation, while LankaQR transactions are only about Rs. 395,000 monthly as of the third quarter of 2025. To address this issue, the new program will implement various strategies starting tomorrow. Additionally, a special raffle will be introduced for consumers and merchants to promote QR payments. Participants can win prizes worth up to Rs. 1,000,000, with winners chosen weekly and monthly. A nationwide promotional campaign in Sinhala, Tamil, and English will also kick off tomorrow. The program will feature a “Social Visibility Index” to ensure fairness and transparency across all 25 districts. This initiative is not just about technology; it marks a major step toward transforming Sri Lanka’s payment system into a fully digital and inclusive economy, according to the PMD.