Sri Lanka’s transition to a digitally inclusive economy has moved beyond infrastructure. Terminals, QR codes and mobile applications are now widely available. The real challenge lies in behavioural change, encouraging both consumers and merchants to move away from deeply rooted cash usage habits. According to Crispin Wijesekera, Country Manager Sri Lanka and Maldives at UnionPay International, this is where the Fintech Forum of Sri Lanka plays a critical role. By bringing together banks, fintech companies, regulators, merchants, and global payment networks, the Forum creates alignment across the industry. It facilitates policy discussions, supports national initiatives, and promotes the education needed to make digital payments a daily habit rather than an occasional choice.
A Global Network with Local Relevance
UnionPay International continues to expand its global footprint, enabling card acceptance in 183 countries and regions, with issuance across 85 countries. The network provides secure, cost-effective cross-border payment solutions while ensuring convenient local services for both cardholders and merchants. UnionPay’s presence in Sri Lanka dates back to the early 2000s, initially focusing on supporting Chinese travellers through ATM and POS acceptance. Over time, this strategy evolved into a broader localisation effort. By 2019, UnionPay had partnered with all major acquirers in Sri Lanka, enabling widespread acceptance across POS and ATM networks. The first locally issued UnionPay card was launched in partnership with Commercial Bank of Ceylon in the same year. The company continues to expand local issuance by collaborating with banks and finance companies, strengthening its footprint within the domestic financial ecosystem.
The Economic Case for Behavioural Change
Despite strong infrastructure, Wijesekera emphasises that the next phase of growth depends on behavioural transformation. He notes that achieving this requires full engagement with consumers, encouraging them to adopt mobile-based payments over cash transactions. Education plays a key role in driving this shift. The economic impact is significant. The cost of managing physical currency, including printing, distribution, and security, is estimated at approximately 1.5% of Sri Lanka’s GDP. Reducing reliance on cash is therefore not only a matter of convenience but also a major economic efficiency gain. In more advanced markets such as China, nearly 70% of transactions are QR-based. While Sri Lanka has developed similar QR interoperability through LankaQR, adoption remains inconsistent. Consumers often face situations where merchants still prefer card payments over QR, highlighting the need for better awareness and alignment of incentives across stakeholders.
Supporting the National Card Initiative
UnionPay is actively supporting Sri Lanka’s National Card initiative in collaboration with LankaPay, following regulatory approval in 2024. The initiative aims to expand card usage, particularly in underserved and rural areas where cash remains dominant. Wijesekera highlights the importance of long-term investment in changing transaction habits. UnionPay’s strategy includes expanding access beyond high-income segments to include middle- and lower-income groups. For example, encouraging beneficiaries of government welfare programmes to use debit cards at ATMs instead of visiting bank counters can help reduce congestion, improve efficiency, and build familiarity with digital systems.
The Fintech Forum as a Strategic Enabler
Wijesekera describes the Fintech Forum as more than just an industry association. It serves as a strategic platform where regulators, financial institutions, fintech companies, and global networks collaborate to develop long-term solutions. By aligning commercial objectives with national priorities, the Forum helps transform infrastructure into actual usage and policy into practice. Reflecting on recent international engagements, he notes that global insights brought through such platforms are essential to accelerating digital adoption in Sri Lanka.
Advice to Emerging Fintechs
Looking ahead, Wijesekera advises local fintech start-ups to focus on innovation rather than replicating existing solutions. He encourages them to explore emerging trends such as AI-driven payments and to anticipate future market needs. Developing solutions based on current systems alone risks becoming outdated by the time they are implemented. He also emphasises the importance of targeting younger, digitally engaged user groups and designing solutions that align with evolving consumer behaviours.
Beyond Infrastructure
A consistent theme throughout the discussion is that infrastructure alone cannot drive transformation. Digital systems, QR codes, and payment technologies can be deployed, but without behavioural change among consumers and active promotion by merchants, adoption will remain limited. Wijesekera concludes that the Fintech Forum provides the essential platform to bridge this gap, enabling Sri Lanka to transition from infrastructure readiness to widespread digital payment usage, ultimately driving long-term economic efficiency and financial inclusion.