In the coastal town of Galle, the Fernando family faced an uncertain future. The economic crisis of 2022 had hit hard with inflation soaring and jobs were scarce.
Yet, amid the chaos, they found a lifeline in financial technology. A digital wallet allowed them to receive remittances from relatives abroad and the emergence of a peer-to-peer lending platform that helped small entrepreneurs to secure a small loan to start a home-based business. Today, their story is one of resilience powered by the very technology that is helping Sri Lanka rebuild.
The 2022 crisis exposed deep-rooted vulnerabilities in Sri Lanka’s economy, from unsustainable debt to a depreciating currency and declining foreign reserves. Recovery requires more than short-term fixes, it calls for structural reforms, financial inclusion, and innovation.
In this context, fintech has emerged as a powerful enabler. By reducing transaction costs, enhancing access to finance, and fostering entrepreneurship, fintech is playing a crucial role in stabilising the country’s economic landscape. For families such as the Fernandos, it’s more than an app it’s a pathway to survival, stability, and future growth.
One of fintech’s most transformative impacts is in the realm of remittances. Sri Lanka relies heavily on money sent home by migrant workers, particularly in the Middle East. According to the World Bank and TheGlobalEconomy.com, remittances made up approximately 6.4% of Sri Lanka’s GDP in 2023, rising from 5.15% the year before. In 2024, inbound remittances rose by 11% in the first eight months alone, driven largely by the ease and affordability of digital platforms. These platforms have slashed transaction fees, reduced processing time, and ensured greater transparency delivering more value directly into the hands of recipients.
This influx of foreign currency plays a vital role in stabilising the economy. It helps ease pressure on the Sri Lankan rupee, supports foreign reserves, and enables households to weather inflation and rising living costs. For many families, remittances are not just supplementary income they are the difference between surviving and thriving.
Fintech is also a catalyst for entrepreneurship, especially among small and micro-businesses. There are platforms that enable vendors to accept digital payments and reach customers beyond their immediate geography.
During the peak of the crisis, many Sri Lankans turned to e-commerce and digital services to make ends meet. According to data from local marketplaces, there was a 30% surge in new online vendors between mid-2022 and 2023.
These micro-enterprises form the backbone of Sri Lanka’s economy. By leveraging fintech, they gain access not just to customers, but also to micro-loans, mobile banking, and payment gateways tools essential for sustainability and growth. Women and youth, often excluded from formal finance, are now entering the digital economy through these innovations, fostering both income generation and social inclusion.
However, this digital transformation is not without challenges. A major barrier remains the digital divide, particularly in rural areas where access to high-speed internet and digital literacy is limited.
A 2024 UNDP survey found that 60% of rural Sri Lankans lack basic digital skills, highlighting a significant gap between urban and rural populations. This inequality not only hampers individual opportunities but also threatens to widen existing economic disparities.
Bridging this divide requires targeted investment in infrastructure, training programs, and inclusive policy. Government agencies such as the Information and Communication Technology Agency (ICTA) are beginning to address this through initiatives focused on digital literacy, online safety, and mobile banking awareness. Still, much more needs to be done to ensure that the benefits of fintech reach all corners of the island.
Despite these hurdles, the role of fintech in Sri Lanka’s recovery is undeniable. It’s not just about convenience or modern technology it’s about resilience, equity, and opportunity. By integrating digital finance into everyday life, the country is building a more inclusive, agile, and future-ready economy. This transformation allows Sri Lankans to be less dependent on fragile state systems and more empowered to chart their own economic course.
For the Fernando family, fintech has already changed the trajectory of their lives. What began as a crisis-driven necessity has evolved into a foundation for growth. Their home-based catering business is expanding, and they now employ two neighbours part-time. They are no longer merely surviving, they are thriving. And they’re not alone.
Across Sri Lanka, millions are discovering the same potential. With the right investments in infrastructure, education, and regulation, fintech could become one of the defining tools of national recovery. It is a digital revolution not just of technology, but of hope lighting the way toward a stronger, more equitable future.
– The writer is Head of Marketing at Crossborder Payments.
