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Sri Lanka has ‘a unique opportunity’ to leapfrog into a cashless economy: Paytm Founder
View(s):By Tharushi Weerasinghe
Paytm founder and CEO Vijay Shekhar Sharma believes Sri Lanka has a unique opportunity to leapfrog into a vibrant cashless economy if it builds strong local champions and adopts cost-effective payment solutions.
In an exclusive interview with the Sunday Timesduring his visit to Colombo for Disrupt Asia, Mr. Sharma said he was inspired by the government’s commitment to building a digital economy. “When the digital economy is happening, I want to contribute as a company, as a country, as an individual, as much as I can,” he said. Hearing about Disrupt Asia, he felt it was “a great opportunity to see a bridge together and learn how serious they are.”
Paytm founder and CEO Vijay Shekhar Sharma: India’s experience will be useful for Sri Lanka Pic by Priyanka Samaraweera
During his brief trip, he met President Anura Kumara Dissanayake, the Deputy Minister of Technology Eranga Weeraratne, and presidential adviser Dr. Hans Wijayasuriya. “It’s phenomenal that in one day I’m able to see so many people, and their reaction and understanding and commitment are phenomenal,” he noted.
Mr. Sharma said discussions have centred on payments, financial services, credit, banking and artificial intelligence, areas where Paytm has built technology and businesses. He said expansion of QR payments and credit to small merchants could be achieved either through partnerships or directly, but stressed that Sri Lanka should nurture its own players. “We should support Sri Lankan companies, we should support them to build for local markets, and we are better off as an investor or a technology expertise provider.”
Sri Lanka’s strong smartphone usage but limited cashless penetration mirrors India’s situation when Paytm began, he observed. The country has “the fundamental requirements for digital transactions — connectivity, smartphones, awareness — already here. Now it is about how ubiquitous smartphone payments and mobile money are.” He believes India’s experience will be useful for Sri Lanka, though progress may be gradual.
Asked if Paytm itself might enter the market, he declined to comment on specific plans but said conversations had been encouraging. “I would prefer us to be a shareholder technology partner of a local Sri Lankan champion,” he said. “Resources, money, technology — that will be my preferred support.”
Comparing Sri Lanka’s payment landscape to Paytm’s early days, he pointed out that Sri Lankans are already familiar with card payments in larger shops, whereas India’s shift was from cash to mobile payments. He also highlighted how India’s leadership encouraged digitisation by creating new banking accounts, which spurred mass adoption.
Lessons from India’s UPI and wallet rollout include keeping mobile transactions inexpensive or free for small users. “MDR here needs to be rationalised,” he said, referring to merchant discount rates. “Once we see MDR rates reducing, every common person, from a small business, or tuk-tuk driver, to a street vendor, should be able to think about it.”
Mr. Sharma commended Sri Lankan regulators for their support of innovation since the 2022 crisis, saying they were creating sandboxes and “paying extraordinary attention to growth.” He emphasised that while regulation is vital, the commercial success of digital payments is “more market-led, less regulator-led.” “I heard the governor in the morning, and his attention to detail of recitation growth was phenomenal. I don’t think that there is much to say because regulators’ role is any which way supporting the digital transaction, they’re creating a sandbox and other elements. So it’s in the right direction. It’s the economic, commercial match, which is more market-led, less regulator-led,” he said.
He also sees opportunities for cross-border remittances and tourism through fintech collaboration between Sri Lanka and India. “Once we have a digital payment revolution, India and Sri Lanka can think of local currency settlement, real-time transfers, and Indian travellers using local QR codes,” he said. “Digitisation can give a boost to Sri Lanka’s economy, especially in travel and trade.”
Building public trust will be crucial, Mr. Sharma said, noting that Sri Lanka’s high literacy gives it an advantage. He explained that awareness campaigns must grow in tandem with digital adoption to prevent scams, drawing on India’s experience with videos, audio messages, and icons to overcome language barriers. “The customer has to be savvy enough not to fall for an attempt to scam,” he said. He added that Sri Lankans are generally well educated and quick to understand such risks, which should make fraud less of a challenge. He emphasised that as digital payments expand, parallel literacy efforts will be needed, even if their importance is not yet visible because penetration remains low.
Cybersecurity, he stressed, is essential: “The challenger to a fintech’s business is not competition, it is the fraudster. Safety and removing fraud is not an obligation; it is their marketing, their USP.”
Mr. Sharma compared Sri Lanka’s startup environment to India’s 20 years ago, when investors were scarce, internet users were few, and entrepreneurs needed to seek funding abroad. He urged founders to leverage engineering talent, build frugally, and “go to investors — don’t wait for them to walk in.” He said success stories would attract both local and international investment if backed by “robust, reliable policies that give comfort and trust.”
To support local entrepreneurs, he pledged US$1 million of his own funds to be channelled through ICTA, and offered Paytm’s technology, from risk and fraud systems to wallet banking, to Sri Lankan firms. “We will be very happy to partner with companies that seek technology and extend that,” he said, adding that he hopes to invite Sri Lankan founders to India to exchange experiences.
Looking ahead, Mr. Sharma said Paytm’s contribution to Sri Lanka’s fintech roadmap would focus on helping local startups succeed. “I want Sri Lankan fintechs to win in Sri Lanka and the world,” he said. “I want us to become their partner to help them win.”
For him, the trajectory is clear: “The future of digital money in Sri Lanka and South Asia is the future. It has to happen inevitably — whether you’re part of it today or tomorrow.”
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