The Hon. (Dr.) Anil Jayantha - Minister of Labour and Deputy Minister of Economic Development

¶ 01 Hon. Presiding Member, the answers are as follows:

¶ 02 1. Merchants provide card and QR payment facilities through banks licensed by the Central Bank of Sri Lanka. For providing this service, the acquiring bank charges the merchant a service fee as a percentage of the transaction value, known as the Merchant Discount Rate (MDR). In the case of card payments, merchants are not permitted to pass this fee to consumers as an additional charge.

¶ 03 However, when purchasing fuel at filling stations and paying by card or QR, merchants may levy an additional charge up to a maximum of 0.5% of the transaction amount. Further, when paying for services at a Government institution, an additional fee up to a maximum of Rs. 10 may be charged. In all other cases, merchants are not permitted to charge consumers any additional fee.

¶ 04 2. Except for the two instances above, if a merchant charges an additional fee for card or QR payments, consumers may lodge a complaint with the issuing financial institution of the card and/or the bank of the QR account used, providing proof such as a receipt or other documentation. Investigations will then be conducted.

¶ 05 The Central Bank has already issued notices informing merchants that additional fees cannot be charged for card or QR payments, and provides periodic guidance to payment service providers.

¶ 06 3. Sri Lanka’s payment systems are aligned with international standards and their usage is growing rapidly. However, there is a noted lack of public awareness about these systems, and a relatively lower inclination to adopt them due to habits. The Central Bank has launched awareness programmes. There are also gaps in equal, high-quality internet access and broader digital infrastructure across the country; steps are being taken to improve these. Additionally, the public shows a strong preference for cash transactions.

¶ 07 4. Among digital payments, percentage-based fees apply to card and QR payments. For other online transfers, fee structures are typically per-transaction amounts. The Central Bank has not been notified of any proposal for the Government to reimburse such fees. Nonetheless, the Central Bank is studying possibilities for further fee reductions and other measures to promote digital payments.

¶ 08 5. This remains at the study stage; appropriate measures will be formulated and implemented as required.

¶ 09 Thank you.

¶ 10 It being 5.30 p.m., the Hon. Presiding Member adjourned Parliament without Question put.

¶ 11 Parliament adjourned accordingly until 9.30 a.m. on Tuesday, 05 August, 2025.