By: Staff Writer
August 31, Colombo (LNW): Sri Lanka’s financial technology (fintech) sector is showing impressive growth in numbers, yet questions remain over whether the government can deliver on its ambitious targets for a US$15 billion digital economy by 2030.
Central Bank figures highlight the growing appetite for digital payments. In the first quarter of 2025 alone, LankaPay processed more than 404 million transactions—up nearly 48 percent year-on-year with the value of transactions almost doubling to Rs. 586 billion. Private banks are also playing a role, with HNB recently waiving fees on LANKAQR transactions, while the Central Bank has stepped up digital payment promotion campaigns to encourage cashless adoption.
Officials have laid out bold objectives. The government’s Digital Economy Strategy 2030 envisions a digital sector contributing 12 percent of GDP, with targets including 95 percent financial inclusion, US$100 million in fintech investment, and a rise in fintech graduate employment from 10 to 25 percent. Deputy Minister of Digital Economy Eranga Weeraratne has described the agenda as “ambitious but necessary,” underscoring the importance of digital infrastructure for future reforms.
Yet, the gap between strategy and execution remains wide. Fintech entrepreneurs argue that bureaucratic inertia and shifting policies are hindering momentum. “The ecosystem is ready, but officials have typically tied hands,” said one industry insider, pointing to delays in approvals and regulatory red tape that discourage investors.
Despite the surge in online transactions, cash remains dominant in everyday small payments. Debit cards are still used primarily for withdrawals rather than digital purchases, while rural connectivity issues and the high cost of devices continue to limit wider adoption.
Some initiatives hold promise such as cross-border QR interoperability with Alipay+, which could boost tourism-related payments but analysts stress that broader structural reforms are essential. Greater SME onboarding, skilled workforce development, and stable policy execution are viewed as critical if Sri Lanka is to attract investment and build trust in the fintech ecosystem.
International observers have also raised concerns. The World Bank has noted that Sri Lanka’s digital economy plans require stronger inter-agency coordination, yet domestic institutions often lag in delivering timely results.
For now, the numbers tell a story of momentum. But experts warn that unless bureaucratic bottlenecks are addressed, Sri Lanka risks incremental progress rather than transformative change. The vision of a US$15 billion digital economy by 2030 is within reach, but only if the pace of policy delivery matches the ambition written on paper.
