HomeSri Lanka NewsCBSL Warns Merchants Against Surcharges on Card Payments; Highlights Surge in Digital...

CBSL Warns Merchants Against Surcharges on Card Payments; Highlights Surge in Digital Transactions

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The Central Bank of Sri Lanka (CBSL) has issued a stern reminder to merchants that levying additional charges—such as the common 2.5% to 3% surcharge—on debit or credit card transactions is strictly prohibited.

“If a merchant demands more than the listed price, customers should obtain a receipt and report the incident to their card-issuing bank,” a CBSL official stated during a media briefing held after the Monetary Policy Review meeting on Wednesday. The warning follows a wave of consumer complaints alleging that certain retailers and service providers are unlawfully adding hidden surcharges to electronic payments, effectively penalising customers for using cashless methods.

The CBSL emphasised that any deviation from the listed retail price during card transactions is illegal and constitutes a breach of consumer rights. The directive is intended to bolster public trust in digital payments and discourage unfair trade practices.

Highlighting the scale of digital adoption, the official revealed that Sri Lanka currently records approximately 1.6 million digital payment transactions daily. Of these, 800,000 are made using credit and debit cards, while 600,000 are conducted via online platforms. “At present, there is good progress in digital payments,” he added.

The Central Bank’s intervention aligns with the broader national strategy to encourage electronic payments, thereby enhancing financial inclusion, transparency, and ease of transaction for consumers across the country.

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