An integrated digital payment platform, ‘GovPay’, the first of such in Sri Lanka was launched on February 7, 2025 being the first part of a trio of digital programs seeking to unify all state entities under a single digital payment system to enhance the efficiency of state services while improving user convenience. The initiative cleverly worked out within the existing legal framework pertaining to digital infrastructure, government financial operations, and electronic payments is based on the important premise of seeking to leverage existing infrastructure and systems so as to be cost and time efficient in its implementation.
The financial sector a key stakeholder supporting the initiative with all State Banks and as many as 9 leading private banks having subscribed to the platform; expanded user convenience being afforded with the options of fintech applications such as Helapay and iPay also being integrated.
In the initial phase, GovPay has been enabled for 16 government institutions, including the Telecommunications Regulatory Commission, the Survey Department, the Excise Department of Sri Lanka, and the Sri Lanka Port Authority, among others. Further 30 institutions are scheduled to be integrated in two successive phases by April 2025 to complete the program.
Transactions with the identified public sector institutions can now be carried out remotely, using existing channels such as, internet and mobile banking applications, digital wallets, and fintech platforms.
The Central Bank of Sri Lanka (CBSL) is the regulator in administering, managing and enforcing the network of applicable laws; the principal of which are – Central Bank of Sri Lanka Act, No. 16 of 2023 – establishing the CBSL ( and repealing the Monetary Law ) and delineates the authority to regulate monetary policy, financial stability, and payment systems in Sri Lanka;
Payment and Settlement Systems Act, No. 28 of 2005 – regulates the payment, clearing, and settlement systems; Electronic Transactions Act, No. 19 of 2006 – provides the legal framework for electronic transactions, recognition of electronic contracts and such related subjects in the digital environment.
Sri Lanka has as its aim to facilitate efficient and cost effective access and service from the State to all citizens in the way of minimizing bureaucratic delays often a result of tedious physical processes and reliance on intermediaries and redundant infrastructure. Good governance, transparency and state accountability is also supported in the way of auditable trails in digital payment systems, with the system parallelly providing for growth in e-commerce business thus, boosting the economy of the country.
Evidencing this as at date intent maximum fees have been regulated for, in that; payments made via GovPay are liable to a per-transaction maximum of LKR 15/-, as well as maximum limits on transaction values and fees for the Common Electronic Fund Transfer Switch (CEFTS), which GovPay may utilise for real-time payments; a maximum fee charged on such transactions using GovPay is also capped at LKR 15/- per transaction.
Implemented by the Ministry of Digital Economy (MODE) in collaboration with the Information and Communication Technology Agency (ICTA), LankaPay, and the Central Bank of Sri Lanka (CBSL), the initiative underscores Sri Lanka’s commitment to security and public trust in digital transactions.
Not without its challenges such as cybersecurity risks, privacy concerns, the need for reliable internet access, and challenges in implementation to state a few, the benefits as seen globally, significantly transforming how governments and citizens manage money, ultimately reshaping society in the long term. GovPay enables financial inclusion by reaching all citizens with its mobile technology integration leading the way for Sri Lanka to align with global trends toward a cashless society.
The platform can be accessed through its official website: GovPay
For further details, refer to the official press release:
https://www.presidentsoffice.gov.lk/digital-transformation-set-to-elevate-the-nation-to-a-new-level/
