A huge amount of the money circulating in the country every year does not reach the banking system and in order to bring that money into the economy, people need to resort to transactions, says Lanka Pay CEO Channa de Silva.
He made this statement while presenting data on the value of all coins and notes in circulation in the country for the year 2024, included in the Payment Bulletin report for the third quarter of 2024, released by the Central Bank of Sri Lanka earlier this year.
“According to this report issued by the Central Bank, in 2024, coins and notes worth Rs. 1.33 trillion were in circulation in the country. However, out of this, more than Rs. 1 trillion has not reached the banking system. The money owned by the general public or small and medium-sized businesses is in their cash boxes, under their mattresses, or in their money bags, that is, this money is outside the banking system.
It does not earn interest. The bank cannot lend it out again. If you look closely, this money is useless money. That is why we need to target this group and enter digital transactions,” he added.