May 30, 2013 (LBO) - Sri Lanka is looking to give the freedom of getting inward payments through Paypal, a cost-effective global remittance and payments system that has helped boost e-commerce in many countries, Central Bank Governor Nivard Cabraal said.
"We are looking at it seriously," Central Bank Governor Nivard Cabraal told LBO.
"We have to move with the times."
Cabraal had progressively removed several odd exchange controls imposed on Sri Lankan citizens in the past, expanding their economic freedoms. Critics say many exchange controls are violated by the rich and powerful but only held back the activities of honest citizens.
Exchange controls were slapped on citizens in many countries after 1950 after they joined the failed Bretton Woods system which tried to defy laws of nature by printing money and trying to maintain an exchange rate peg at the same time.
Sri Lankan's can currently make use of the Paypal system to make payments via their credit cards which results in an outflow of cash but cannot receive cash because the system's accounts are not allowed to be linked to banks accounts in this country.
Paypal has expanded worldwide helping make small payments to internet based businesses.
People from USA to Vietnam are using Paypal to run a variety of businesses ranging from selling goods online through ebay.com an auction site running flower delivery businesses and small time outsourcing activities.
Lack of Paypal inward remittance had been a key problem for expanding internet based business in Sri Lanka especially small time outsourcing work done through the internet by independent workers.
To receive money through conventional means such as mailed cheques or cash transfer companies results in high fees charged to Sri Lankan receivers, each time a remittance is made.