Marking a significant milestone in Sri Lanka’s transition toward a fully digital economy, PayPal—one of the world’s leading online payment platforms—has been introduced in Sri Lanka through integration with the domestic banking system.
The official launch took place on 15 May under the patronage of Prime Minister Dr. Harini Amarasuriya.
Aligned with the Government’s digital economy vision, the collaboration between the local banking sector and PayPal was commended by the Prime Minister as a transformative step in strengthening Sri Lanka’s position in the regional and global digital economy.
The service will initially be offered through key banking partners, including Bank of Ceylon, Commercial Bank, and Sampath Bank, with additional banks expected to join in the coming months.
This development enables Sri Lankan consumers, freelancers, entrepreneurs, and businesses to access a secure and trusted international payment platform, improving participation in global digital commerce.
The initiative forms part of the country’s broader digital economy agenda, which focuses on inclusive growth, digital entrepreneurship, and deeper integration with global markets.
Expanded access to international payment systems is expected to significantly benefit small and medium enterprises (SMEs), enabling them to participate more effectively in global trade. The SME sector, which contributes around 52% of Sri Lanka’s GDP, is expected to gain from improved access to international markets and more transparent financial transactions.
The rollout is also expected to support youth engagement in the digital economy, with authorities emphasizing the importance of inclusive and equitable growth opportunities.
PayPal has noted that Sri Lanka has a strong pool of skilled freelancers and entrepreneurs capable of meeting global demand. The partnership is expected to reduce barriers in receiving international payments and create a more seamless digital payments ecosystem.
In the coming weeks, participating banks are expected to announce further details on service availability, further strengthening the country’s digital financial infrastructure.
The launch event was attended by Central Bank Governor Dr. Nandalal Weerasinghe, Deputy Minister of Digital Economy Eng. Eranga Weeraratne, Minister of Labour and Deputy Minister of Finance and Planning Dr. Anil Jayantha, PayPal Senior Vice President Ms. Nadia Sayed, senior government officials, industry leaders, and representatives from participating financial institutions including Bank of Ceylon, Commercial Bank, and Sampath Bank.
Pan Asia Bank posts record Q1 2026 growth in deposits and advances; PBT up 13% to Rs. 1.65 Bn
Pan Asia Banking Corporation PLC delivered a robust financial performance in the first quarter of 2026, reporting steady growth across key income streams, balance sheet indicators, and capital adequacy metrics, despite a challenging global macroeconomic environment influenced by geopolitical tensions in the Middle East.
The Bank posted a Profit Before Tax (PBT) of Rs. 1.65 billion, up 13%, while Profit After Tax (PAT) rose 3% to Rs. 1.05 billion. Earnings per share stood at Rs. 2.37 for the period.
Income Performance
Net interest income increased by 12% to Rs. 3.41 billion, supported by continued expansion in lending activities. Net fee and commission income recorded a sharp 55% growth to Rs. 0.77 billion, reflecting improved transactional volumes and service-related income.
Operating profit before taxes on financial services rose 14% to Rs. 2.17 billion. Interest income increased by 18%, while interest expenses grew by 23%, driven by expanded lending across corporate, SME, and retail segments alongside increased deposit mobilisation.
The Bank attributed its performance to continued focus on corporate and business banking customers with strong credit profiles, which supported earnings stability and quality-driven growth in a moderately easing interest rate environment.
Key profitability ratios for the period included a Net Interest Margin (NIM) of 4.28%, Return on Assets (before tax) of 2.07%, and Return on Equity of 13.86%.
Balance Sheet Growth
Total assets increased by Rs. 26.59 billion, or 9%, to Rs. 334.61 billion. Gross loans and advances grew by 10% to Rs. 239.49 billion, while customer deposits rose by 10% to Rs. 254.19 billion.
The CASA ratio improved to 22.63% from 20.18%, indicating a stronger low-cost funding base.
Credit Quality
Asset quality improved during the quarter, with the Stage 3 loans ratio declining to 1.57% from 1.73%. Provision coverage remained stable at 62.21%, reflecting continued prudent risk management.
Capital and Liquidity Position
The Bank remained strongly capitalised and highly liquid, comfortably exceeding regulatory requirements across all key ratios:
CET1 Ratio: 14.86%
Tier 1 Ratio: 14.86%
Total Capital Ratio: 16.43%
Leverage Ratio: 7.95%
Liquidity Coverage Ratio (All Currency): 151.72%
Liquidity Coverage Ratio (Rupee): 192.98%
Net Stable Funding Ratio: 126.92%
All capital ratios remained well above regulatory minimum thresholds, underscoring the Bank’s strong financial resilience.
PayPal launches in Sri Lanka to boost digital economy growth
