Insights from an International Finance Corporation (IFC) study on digital payments in the Sri Lankan retail sector showed that although use of smartphones was high in Sri Lanka, digital literacy was still low in areas outside the Western Province, said Country Manager for Visa in Sri Lanka, Avanthi Colombage.
“This shows that there is still some way to go for Sri Lanka to be adept and advanced in digital payments,” she said.
Developing Sri Lanka’s payment infrastructure and ensuring a variety of options for travellers wherever they go – from cards, contactless payments and QR code payments to online and e-commerce payments would enhance tourism.
The recent Global Travel Intentions Study by Visa, confirmed that today’s travellers look for experiential travel and not merely visiting tourist hotspots – which makes ubiquitous, seamless and secure payment access critical.
“The Government has set its sights attracting five million tourists by 2029, believed to bring in USD 21.6 billion by 2030. This will depend on tourism spend increasing to USD 4,000 per visitor and high-spending tourists visiting or revisiting Sri Lanka,” she said.
Given the safety and seamless experience of using cashless payments, visitors also get the flexibility of paying in local currency and availing great offers on hotels, travel, retail and experiences when they pay using cards.
“The ability to have great experiences, enjoy nature and the spirit of our island nation, combined with the convenience of paying digitally will go a long way in enriching holiday experiences for tourists coming to Sri Lanka,” Colombage said.
She said that tourism is a key sector of economic activity for Sri Lanka, contributing significantly to the country’s income. It also requires the wider merchant ecosystem – from mom-&-pop stores to micro-businesses to large merchants to broadbase the acceptance of digital payments, whether online or offline.
“Tourists visiting Sri Lanka can then rely on a convenient, smooth and safe payment experience during their stay here. Offering visa-free travel will boost the number of arrivals and consequently, the digital economy as today’s travellers are well versed with digital payment options and would expect to be able to pay without cash anywhere,” Colombage said.
Sri Lanka is likely to receive two million visitors this year and generate a revenue of USD 6 billion.
