News
Robocash Sri Lanka predicts significant growth in digital retail payments
Sri Lanka’s digital retail payments are poised for remarkable expansion, with the potential to reach up to Rs 77.2 trillion by 2027, according to analysis by Robocash Sri Lanka. This represents a substantial 128 percent increase from the 2022 level. The optimistic forecast by the company is contingent on the assumption that all major macroeconomic indicators will achieve equilibrium or exhibit stable positive trends over 12 quarters, commencing in 2024.
Robocash is a financial group of companies providing robotic financial services in the field of alternative lending and marketplace funding.In a less favourable long-term scenario, the company anticipates that the total volume of digital retail payments in Sri Lanka will still reach Rs 43.94 trillion by 2027, reflecting a 30 percent increase from the 2022 level.
Sri Lanka is known for its high rate of citizens with active bank accounts and is currently witnessing a burgeoning fintech expansion, displaying resilience even in the face of economic challenges. As of 2022, approximately 90 percent of the population holds active bank accounts, with an impressive 18.7 million debit cards in circulation. This has resulted in an outstanding 85 percent debit card usage rate, surpassing the global average of 51 percent.
However, the utilization of credit cards in Sri Lanka stands at 10 percent, slightly below the global average of 22 percent. Nonetheless, this trend bodes well for Sri Lanka’s fintech market, illustrating its potential for growth even in challenging economic conditions.
As of early 2023, Sri Lanka has made significant strides in embracing digitalization, boasting 14.6 million internet users and 7.2 million active social media users. The country’s digital literacy rate, on par with developed European Union (EU) countries at 57 percent, underscores the strong digital skills among its adult population.
The e-commerce sector in Sri Lanka is flourishing, with 5.5 million users and a market value of Rs.777.6 billion (US$ 2.4 billion) in 2023, primarily driven by the electronics segment. The e-commerce market is projected to maintain an impressive compound annual growth rate (CAGR) of 15.29 percent from 2023 to 2027, reaching a market volume of Rs 1,387.52 billion (US$ 4.28 billion) by 2027.
Amid the backdrop of the COVID-19 pandemic, digital payments in Sri Lanka have seen substantial growth, with transactions surging from Rs 5.6 trillion in 1Q2021 to Rs 9.4 trillion in 1Q2023, marking a 68 percent growth rate over two years. The value of transactions via the Lanka QR digital payment gateway reached Rs. 681 million in 3Q2023, demonstrating an 84 percent year-on-year growth.
Both the Sri Lankan government and the private sector have been instrumental in promoting digital payments, playing pivotal roles in enhancing digital payment solutions and fostering financial inclusion.
In the coming years, Sri Lanka plans to implement a Digital Government initiative aimed at streamlining digital identification and document digitization. This initiative is expected to significantly facilitate electronic Know Your Customer (eKYC) for digital service providers and further boost fintech penetration.
Despite recent economic challenges, Sri Lanka’s fintech sector remains optimistic. The number of digital payment users is projected to reach 10 million by 2027, with a projected transaction value of Rs. 4,481.32 billion (US$ 13.83 billion), growing at a CAGR of 20.54 percent.
Mobile point-of-sale (POS) payments are expected to dominate, with 3.2 million users and a transaction value of Rs 2,342.16 billion (USD 7.24 billion). Additionally, the Digital Assets segment is on track to reach Rs. 3,978 million (US$ 12.25 million) in 2023, with a remarkable 56.5 percent revenue growth projected for 2024.
However, it’s important to acknowledge that Sri Lanka’s economy faces challenges, including high public debt, inflation risks, and limited foreign investments. The nation’s economic recovery hinges on structural reforms and political stability.
News
Washout against Afghanistan sends India into semi-finals
India are through to the semi-finals of the Asian Games men’s tournament, with persistent rain and a damp outfield in Nisshin forcing the abandonment of their quarter-final against Afghanistan 16 minutes before the scheduled toss. India’s higher seeding – determined by the ICC T20I team rankings – ensured they went through at Afghanistan’s expense.
India will next face the winners of Tuesday’s quarter-final between Nepal and Sri Lanka in Thursday’s second semi-final. As one of the four seeded teams – India, Pakistan and Bangladesh are the others – to qualify directly for the quarter-finals, Sri Lanka will progress to the semi-finals if their match against Nepal is washed out too.
News
Sajith rejects Jt. Opp. protest sabotage claim; SJB TU chief demands remedial action
By Shamindra Ferdinando
Alleging that the Samagi Jana Balawegaya (SJB) had betrayed the joint protest campaign, planned on 24 Sept., at Polduwa junction, against the enactment of the 22nd Amendment without securing public approval at a referendum, SJB trade union leader Ananda Palitha emphasised that SJB and Opposition Leader Sajith Premadasa should take remedial measures to restore the alliance against the NPP government.
Responding to The Island queries, the trade union activist said that he spoke on behalf of the vast majority of the SJBers who felt betrayed by the sudden declaration made by Colombo District SJB lawmaker S.M. Marikkar that they didn’t expect Opposition political parties’ participation, except that of the UNP.
Pointing out that at the behest of Premadasa, MP Marikkar belittled those who had pledged on 17 Sept. to join the SJB-led protest, Palitha emphasised the Opposition leader should be held responsible for restoring the shattered alliance. Palitha warned that the NPP, which was rapidly moving on a dictatorial path, would be the beneficiary of such treacherous actions.
When The Island raised the allegations pertaining to the 24 Sept. protest, Colombo District MP Premadasa said there was no basis for such claims. MP Premadasa called the accusations directed at him ‘rubbish.’
Palitha said that the pathetic failure on the part of the Opposition to genuinely challenge the authoritarian NPP should be examined, taking into consideration the government following an agenda almost 100 percent against the election pledges. Except the much touted anti-corruption campaign, the NPP reneged on all its election promises.
Recalling massive rice imports after having promised to stop the same in the run up to the national elections in 2024, Palitha alleged that the utterly corrupt NPP created an artificial shortage to enable import of large stocks of salt for their benefit. Massive earnings were made through commissions, Palitha said, urging the SJB to reiterate its commitment to the 17 Sept. pledge. According to him, the SJB’s irresponsible action sabotaged the joint Opposition agreement reached on the eve of President Anura Kumara Dissanayake completing two years in Office.
Palitha said that the disruption of a genuinely joint protest, at the last moment, caused irreparable harm to the Opposition. The unexpected eleventh hour declaration made by the SJB upset their efforts to organise a large scale two-day protest on 24 and 25 Sept. Palitha emphasised the responsibility on the part of the SJB leadership and its top management to spearhead an all-out campaign against the government. The former petroleum sector employee said that a strong and transparent campaign could undermine the NPP within as a section of its parliamentary group was deeply dismayed by the current policies and strategies.
Palitha, in his capacity as the trade union leader, invited the Bar Association of Sri Lanka (BASL) to join the trade unions’ protest on 25 Sept. to intensify pressure on the government. BASL President Rajeev Amarasuriya told The Island that they didn’t accept that invitation.
Former SLPP Kalutara District MP Sanjeewa Edirimanna said that the SJB was far more keen to organise a large-scale protest to counter the SLPP’s highly successful Anuradhapura rally held on 12 September than a genuine joint protest against the 22nd Amendment or the government. Edirimanna said that they realised that the SJB would probably join a joint protest campaign only after organising a gathering to counter the SLPP. According to him, the SJB hadn’t been honestly interested in a joint protest campaign. Instead, it sought to resist possible challenges from rival political parties, he said.
An aide to UNP leader and former President Ranil Wickremesinghe said that though the SJB announced they were welcome to join the 24 Sept. protest, the party never received an invitation. The official said that some UNPers joined the protest on their own though the party neither directed supporters to join or boycott the event. As the Janathawadi Joint Opposition decided against participating for want of formal invitations, the UNP, as part of that group, decided not to join the 24 Sept. protest.
News
Police remove Thileepan statue in Jaffna
By Norman Palihawadane
Police have removed a memorial statue of former LTTE member Rasaiah Parthipan, alias Thileepan, from the Thileepan Memorial Square in Nallur, Jaffna, following the conclusion of commemorative events, marking the 39th anniversary of his death.
The statue was removed in the early hours of yesterday (27), a day after the final day of the commemoration was held at the site.
CCTV footage from the memorial reportedly shows police officers removing the statue and taking it away in a vehicle.
Tamil National People’s Front (TNPF) Secretary and MP Selvarasa Gajendran alleged that more than 15 police officers arrived at the site, without prior notice, entered the premises wearing footwear, and forcibly removed the statue.
The reason for the removal and the legal basis for the police action had not been officially announced as of yesterday.
Thileepan, a former political wing leader of the LTTE, died in September 1987, after undertaking a hunger strike in Nallur, while making several demands of the Indian Government.
The memorial events, marking the 39th anniversary of his death, were held at the site on Saturday (26). A statue had been erected at the location in connection with the commemoration.
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