Carrying the ‘paperweight’- Is Sri Lanka ready for cashless tourism?

‘CASH only’ or ‘enjoy discounts for cash payments’ are common signs that hang on Sri Lankan shop windows.

- By Kimuthu Kiringoda

Even the Welipenna interchange service area has many eateries that do not accept card payments. The Southern Expressway is a major tourist gateway, and the country is losing revenue. In recent news, the tuk-tuk industry resistance to PickMe and Uber were reported. Tuk -tuk drivers in tourist hotspots such as Ella and Weligama whine about unfair pricing when on the other hand, tourists note that ad-hoc, exorbitant pricing is a nuisance.

High processing fees of global finance payment portals

The Government pledged to digitise all sectors and offer waivers for digital infrastructure. The vendors try to push it away. MasterCard, Visa and American Express are globally popular cards, but vendors incur a cost between 1.5%-3.5% as a processing fee. Also, cash transactions are almost impossible to track and can be kept off the books. The Central Bank of Sri Lanka recorded that 40% of the country’s GDP is informal. Since its activities stay ‘hidden’, the number could be higher. Those operating away from the tax net continue to remain that way and profit more.

Comparison with Asian countries