Government Launches Program to Promote Digital Payments

Deputy Minister Eranga Weeraratne revealed that using cash for transactions costs the economy approximately 1.5% of the annual Gross Domestic Product (GDP). He also noted that cash-based payments contribute to higher fraud and corruption rates, along with inefficiencies in the payment process.

To address these issues, the government plans to fully digitalize payments made to state institutions. The GovPay app, which already connects 16 government institutions, will expand its reach in January 2025 to include all remaining institutions, enabling citizens to make payments digitally.

Deputy Minister Weeraratne highlighted the benefits of this initiative, such as improving efficiency, reducing manual labor, eliminating corrupt practices, and offering more convenient services to the public. 

He added that the shift to digital payments is a crucial step toward building a modern and transparent financial system.