Sri Lanka removes LankaQR merchant fee on payments up to Rs. 5,000 from April 6, 2026

The service fee charged to merchants on LankaQR transactions up to Rs. 5,000 will be completely removed from April 6, 2026, with the launch of Sri Lanka’s National QR Payment Promotion Project.

The project will be officially launched tomorrow, April 6, under the patronage of President Anura Kumara Dissanayake, marking a new step in the country’s digital economy.

The main goal of the programme is to move Sri Lanka toward a cash-lite economy by reducing the use of coins and banknotes. With this in mind, financial institutions have taken steps to remove the Merchant Discount Rate (MDR) on all LankaQR transactions up to Rs. 5,000 from tomorrow. This will allow small-scale merchants to accept digital payments without any extra cost.

Sri Lanka already has a strong digital financial base. About 89% of adults in the country have access to banking services. The CEFTS system is also in operation, handling 68 million transactions worth Rs. 6.3 trillion in a single quarter. LankaQR is now accepted at 450,000 merchant locations with the support of more than 20 financial institutions.

Even with this infrastructure, cash remains widely used. Currency notes worth Rs. 1.48 trillion are still in circulation, while LankaQR transactions recorded only around Rs. 395,000 in monthly volume by the third quarter of 2025. Several special strategies will be launched under the new project from tomorrow to address this gap.

A special prize draw programme for consumers and merchants will also begin tomorrow to promote QR payments. First, second, and third place winners will have the chance to win prizes worth up to Rs. 1,000,000 on a weekly and monthly basis.

A national promotional campaign in Sinhala, Tamil, and English will also start tomorrow. In addition, a Social Visibility Index covering all 25 districts has been introduced to ensure transparency and fairness in the programme.

The government says the initiative is not only a technological step, but also an important move toward building a digital and inclusive economy. It aims to promote fast, secure and transparent digital payments and make every citizen part of the digital economy, regardless of location or language.

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