Digital banking fees in Sri Lanka: A case for reform

A policy framework for fair and inclusive financial services

- By Janek Jayasekara

SRI Lanka’s banking sector is in the midst of its most decisive digital transformation to date. Branch networks are shrinking, physical statements are disappearing, and customers are being rapidly channeled toward mobile apps and internet banking as the primary means of managing their finances.

Yet, at this critical moment of progress, a contradiction has emerged. Even as banks save billions through digital efficiency, customers are increasingly being charged annual digital banking access fees; ranging from a few hundred to several thousand rupees per year, simply for using the very platforms they are being compelled to adopt.

Digital banking is no longer a premium convenience. It is now the default and in many cases the only practical channel for accessing one’s own money. When access becomes effectively mandatory, charging for it raises serious questions of fairness, inclusion, and public policy.

The economic reality: Who benefits from digitalisation?

The financial logic of digitalisation is straightforward. A single urban branch can cost a bank several million rupees annually in rent, staffing, utilities, cash handling, security, and paperwork. Once robust digital systems are implemented, the marginal cost of each transaction drops sharply. Paper statements, manual reconciliations, and large volumes of physical cash are progressively eliminated.