Tax fears likely fueling Sri Lanka’s cash surge, hindering digital shift
- CNL Reporter
- March 6, 2025
- News
- Tax
- 0 Comments
The fear of taxation may be contributing to the recent increase in cash circulation, highlighting Sri Lanka’s long journey towards a less cash-dependent society.
According to the latest (3Q24) Payment Bulletin of the Central Bank, the currency in circulation grew by 19.7 percent year-on-year (YoY) to Rs.1.33 trillion.
“Unfortunately, despite all these digital innovations and initiatives, we still see cash usage increasing. If I’m not mistaken, as per the latest Payment Bulletin, published quarterly by the Central Bank, cash in circulation has reached Rs.1.3 trillion, up from Rs.1.2 trillion in the previous quarter. So, for some reason, cash is still growing,” LankaPay CEO Channa De Silva said.
He made these remarks at a press conference in Colombo on Monday to announce LankaPay Technnovation Awards 2025, which recognises the leaders in ‘finnovation’.When asked whether the fear of taxation was driving this rise in cash usage, he acknowledged that it is likely a major factor.
