Feb 22, 2014 (LBO) – A bank in Sri Lanka is in talks with US-based Paypal to become its partner bank for inward remittances, Central Bank Governor Nivard Cabraal said. But larger transactions like tourism services are also sold in many countries using Paypal.
Sri Lanka allows outward payments through Paypal via credit cards, but receipts and withdrawals from a domestic bank account are still not allowed.
Cabraal promised to free inward payments last year saying Sri Lanka must move with the times.
At a meeting with foreign correspondents based in Colombo Cabraal said one bank was in talks to become the correspondent bank for Paypal in Sri Lanka which will allow inward remittances.
Paypal inward remittances could boost e-commerce, crowdsourced outsourcing activity and as it has become a popular and less costly method for small payments.