PayPal in Sri Lanka?
Sri Lanka is looking to give the freedom of getting inward payments through PayPal, a cost-effective global remittance and payments system that has helped boost e-commerce in many countries, Central Bank Governor Nivard Cabraal said.
“We are looking at it seriously,” Central Bank Governor Nivard Cabraal told LBO. “We have to move with the times.”
Cabraal had progressively removed several odd exchange controls imposed on Sri Lankan citizens in the past, expanding their economic freedoms. Critics say many exchange controls are violated by the rich and powerful but only held back the activities of honest citizens.
Exchange controls were slapped on citizens in many countries after 1950 after they joined the failed Bretton Woods system which tried to defy laws of nature by printing money and trying to maintain an exchange rate peg at the same time.
Sri Lankan’s can currently make use of the Paypal system to make payments via their credit cards which results in an outflow of cash, but cannot receive cash because the system’s accounts are not allowed to be linked to banks accounts in this country.
Paypal has expanded worldwide helping make small payments to internet based businesses.
The Lack of Paypal inward remittance had been a key problem for expanding internet based business in Sri Lanka especially small time outsourcing work done through the internet by independent workers. To receive money through conventional means such as mailed cheques or cash transfer companies results in high fees charged to Sri Lankan receivers, each time a remittance is made.
Platform Technology will continue to watch this story closely as it develops, until then we will continue to offer PayPal integration for overseas based bank accounts only. Sri Lankan websites who wish to accept credit card payments online can integrate their sites directly with a local bank Internet Payment Gateway (IPG) which Platform Technology provides as a service.