The Ministry of Digital Economy has announced the introduction of a special program to promote digital payments. Deputy Minister Eranga Weeraratne highlighted that using cash for transactions costs approximately 1.5% of the annual Gross Domestic Product (GDP).
He also pointed out that cash payments contribute to increased fraud, corruption, and inefficiencies in payment processes. To address these issues, the Deputy Minister stated that all payments to government institutions will soon be subject to digitalization.
GovPay: Digitalizing Government Transactions
Launching by the end of January 2025, GovPay will initially integrate 16 government institutions. An additional 30 institutions are scheduled to join in two further phases, achieving full implementation by April 2025. This phased rollout is designed to ensure a seamless, user-friendly experience, enabling citizens to make payments for government services through fintech applications or online banking platforms.
GovPay aims to modernize revenue collection processes, ensuring enhanced control, accuracy, security, and transparency in government financial transactions. By aligning with the digital government strategy, GovPay integrates data-driven processes to improve operational efficiency and responsiveness, enabling informed decision-making and ultimately improving service delivery standards.
Boosting Efficiency and Reducing Corruption
Deputy Minister Weeraratne emphasized that this initiative will significantly improve the efficiency of the overall system. Additionally, promoting digital payments will reduce manual labor, eliminate inefficiencies and corrupt practices, and provide more convenient services to the public.