Ajith’s digital awakening
Ajith had always been sceptical about digital banking. A small business owner in Colombo, he ran a grocery store passed down from his father.
For decades, he managed transactions the traditional way counting cash, keeping handwritten records, and making weekly trips to the bank. It was a system he trusted, even if it meant waiting in long queues and handling stacks of paper.
Everything changed in early 2022. A close friend introduced him to a fintech app that promised to simplify his business finances. With initial hesitation, Anura decided to give it a try. He started small — paying utility bills online and checking his account balance on his phone. Gradually, he explored more features: digital payments, instant fund transfers, and even securing a microloan without setting foot in a bank. Within months, Anura had embraced fintech entirely, realising how much time and effort he had saved. His story is not unique but part of a larger transformation taking place across Sri Lanka.
The digital shift in finance
Sri Lanka has been undergoing a financial revolution, driven by technology and necessity. In 2012, the country had one of the highest financial inclusion rates in South Asia, with two-thirds of the population accessing formal banking services.
However, economic challenges ranging from the 2019 Easter Sunday attacks to the Covid-19 pandemic disrupted traditional banking structures, pushing more people towards digital finance. The rise of fintech was not just about convenience but also about survival and adaptation. For people such as Anura, fintech solutions have filled crucial gaps left by conventional banking. Mobile payment apps, digital wallets, and microfinance platforms are now reshaping how Sri Lankans manage their money, helping both individuals and businesses stay financially afloat in uncertain times.
What drives fintech adoption?
Several factors have fuelled the rapid growth of fintech in Sri Lanka:
* Convenience and accessibility: With smartphones becoming increasingly common, mobile banking and digital payment solutions allow users to transact anytime, anywhere. For small business owners like Anura, this means fewer trips to the bank and faster transactions.
* Financial inclusion: Many Sri Lankans, especially in rural areas, still lack access to traditional banking services. Fintech solutions are bridging this gap, offering banking alternatives to the unbanked population.
* Cost-effectiveness: Digital transactions often come with lower fees compared to conventional banking services, making them a more attractive option for small businesses and individuals. The Challenges That Remain Despite its growing popularity, fintech adoption in Sri Lanka faces several obstacles:
* The digital Divide: While urban areas enjoy high-speed internet and smartphone penetration, rural regions still struggle with poor connectivity and limited digital literacy. Bridging this divide is crucial to ensuring that fintech reaches all corners of the island.
* Regulatory uncertainty: The rapid evolution of digital finance sometimes outpaces the legal frameworks governing it. Clear regulations are needed to ensure consumer protection and build trust in fintech services.
* Cybersecurity concerns: As digital transactions increase, so do risks related to fraud and data breaches. Fintech companies must prioritise security measures to prevent cyber threats and reassure users.
Embracing the Digital Economy Aas fintech adoption grows, small businesses like Anura’s are finding new ways to integrate digital financial tools into their daily operations. One of the most promising trends is the rise of embedded finance, where financial services are seamlessly integrated into non-financial platforms. For instance, e-commerce platforms now offer built-in lending services, allowing small vendors to access short-term credit instantly.
Ride-hailing apps enable drivers to receive earnings through digital wallets, bypassing traditional banking altogether. These advancements are making financial services more accessible and efficient, allowing businesses to scale faster than ever before. Moreover, fintech is opening doors to alternative lending models that cater to Sri Lanka’s underserved communities. Digital microloans, powered by AI-driven credit assessments, provide entrepreneurs with capital that would otherwise be out of reach.
Such innovations are not only helping individuals grow their businesses but also contributing to the broader economic landscape. Conclusion: A Future Built on Trust and Innovation Anura’s journey from scepticism to fintech advocate illustrates a broader shift happening across Sri Lanka. As digital finance continues to evolve, trust, accessibility, and user-friendliness will be key to its success.
For fintech to truly transform Sri Lanka’s financial landscape, it must address existing challenges while ensuring that every citizen, from bustling Colombo to remote villages, can participate in this digital revolution. As more Sri Lankans like Anura embrace fintech, the future of finance in the country looks increasingly digital, inclusive, and innovative.
– The writer is the Head of Marketing at CrossBorder Payments (Pvt) Limited
