Marking a new milestone in Sri Lanka’s digital economy, the launch of the “National QR Payment Promotion Programme” officially commenced today (06) under the patronage of President Anura Kumara Dissanayake.

Accordingly, with effect from today, the service charge levied on merchants for all LankaQR transactions up to Rs. 5,000 will be completely removed, according to the President’s Media Division (PMD).

The primary objective of this initiative is to steer Sri Lanka towards a cash-lite economy with reduced reliance on coins and banknotes. Accordingly, financial institutions have taken steps to completely remove the Merchant Discount Rate (MDR) charged to merchants on all LankaQR transactions up to Rs. 5,000, effective from today.

This is intended to enable small-scale merchants to accept digital payments without incurring any additional costs, the statement said.

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 million per month as of the third quarter of 2025. To bridge this gap, several targeted strategies will be implemented under the programme commencing today.

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.

To support the success of this initiative, a nationwide promotional campaign in Sinhala, Tamil, and English will also be launched from today, it said.

In addition, a “Social Visibility Index,” designed to cover all 25 districts, has been introduced to ensure transparency and fairness in the implementation of the programme, the PMD said.

This programme represents not merely a technological advancement but also a significant step in the national agenda to transform Sri Lanka’s future payments ecosystem into a fully digital and inclusive economy.

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, it added.