PayPal Enters Small South Asian Country While Pakistanis Still Struggle With International Payments

Sri Lanka has officially launched PayPal services way ahead of Pakistan despite declaring bankruptcy just a few years ago.

The announcement was made on May 15 at an event attended by Prime Minister Harini Amarasuriya, with the service initially being rolled out through Bank of Ceylon, Commercial Bank of Ceylon and Sampath Bank.

Additional banks are expected to join the platform in the coming months.

The expansion represents one of the biggest developments for Sri Lanka’s digital sector in recent years. For more than a decade, businesses and freelancers in the country had pushed for broader PayPal functionality.

Previously, Sri Lankan users could make payments through PayPal but faced restrictions on receiving funds, limiting opportunities for exporters, freelancers and online service providers.

The initiative is expected to benefit thousands of freelancers, technology professionals, entrepreneurs and SMEs by providing access to a globally recognized payment platform and improving connectivity with international markets.

The development is particularly important for Sri Lanka’s SME sector, which accounts for roughly 52 percent of the country’s GDP. Easier access to international payment systems will help local businesses participate more actively in global trade while increasing formal foreign currency inflows into the economy.

The launch also highlights the growing competition among South Asian economies to attract digital businesses and freelance talent.

Access to platforms such as PayPal is increasingly viewed as a big component of a modern digital economy.

The development is notable for Pakistan, where successive governments have attempted for more than a decade to bring PayPal to the country to support freelancers, IT exporters and digital businesses.

Past governments announced plans for a PayPal-linked payment solution through an international partner, but nothing definitive has happened yet.

PayPal has yet to establish direct operations in Pakistan.

Due to countless delays, Pakistani freelancers continue to rely on alternatives such as Payoneer and other international payment platforms to get paid.