Sri Lanka has officially introduced PayPal services, marking a major milestone for its digital economy despite the country having faced a severe financial crisis in recent years.
The launch was announced on May 15 at an event attended by Prime Minister Harini Amarasuriya. Initially, the service is being rolled out through Bank of Ceylon, Commercial Bank of Ceylon, and Sampath Bank, with additional banks expected to join the platform in the coming months.
For over a decade, Sri Lankan freelancers and businesses had been pushing for access to full PayPal functionality. Previously, users could make payments through PayPal but were unable to receive funds, limiting opportunities for exporters, freelancers, and online service providers.
The new development is expected to benefit thousands of freelancers, entrepreneurs, IT professionals, and SMEs by enabling easier access to global payment systems and improving integration with international markets.
Sri Lanka’s SME sector, which contributes around 52% of GDP, is expected to gain significantly from improved access to cross-border payment platforms, helping boost exports and foreign currency inflows.
The move also highlights increasing regional competition in South Asia to attract digital talent and support the growing freelance economy, where access to platforms like PayPal is seen as a key requirement for participation in global trade.
Meanwhile, Pakistan has been trying for more than a decade to secure direct PayPal operations for its freelancers and digital businesses. Despite various proposals and discussions over the years, no formal launch has taken place, and users in Pakistan continue to rely on alternatives such as Payoneer and other international payment services for cross-border transactions.
