If you’ve been around Colombo’s startup circles or even glanced through a LinkedIn feed lately, “fintech” seems to be the word of the decade. From flashy payment apps to AI-driven lending, the term often gets bundled with billion-dollar valuations, IPOs, and jargon that would confuse even the most seasoned banker.
But for the vast majority in Sri Lanka — where the heartbeat of the economy lies in its small and medium-sized businesses (SMEs) — the question is much simpler:
What does fintech actually do for the small business owner trying to survive and grow?
Let’s move beyond the buzz and into the battleground where fintech meets the kadé, the café, and the corner tailor shop.
SMEs need tools, not terms
Sri Lanka’s economy depends on SMEs. According to the Department of Census and Statistics, over 75% of all businesses in the country are considered small or medium in size. They sell vegetables, repair bikes, run salons, or manage wedding décor often with a small team, tight margins, and little time to read whitepapers on blockchain.
Here’s where fintech becomes not just useful, but essential.
Take the example of a salon owner in Negombo. With a simple QR-enabled payment app, she can now accept digital payments from customers, something that was once only possible with an expensive card machine. Not only does this reduce her dependence on cash, but it builds trust and convenience with customers who no longer carry physical notes. That’s not buzz. That’s business.
Credit, capital and confidence
Historically, accessing a business loan from a traditional bank was a bureaucratic maze for SMEs. Collateral requirements, lengthy documentation, and lack of formal credit history kept many entrepreneurs, especially women and rural business owners locked out of the financial system.
Enter fintech lending platforms.
Today, several local fintech startups are using alternative data, mobile phone bills, transaction patterns, and even utility payments to build non-traditional credit scores. This opens doors for the trishaw owner in Kurunegala who needs Rs. 75,000 to repair his vehicle, or the broom supplier in Piliyandala who wants to scale up operations.
These aren’t mere microloans, they’re macro-leaps in inclusion.
Fintech is reducing friction (and book-keeping headaches)
Another area where fintech quietly transforms the SME experience is operations and finance tracking. Many small businesses, especially in the informal sector, rely on handwritten ledgers and guesswork when it comes to income tracking. Today’s mobile accounting tools, most of them free or extremely affordable, allow business owners to:
* Track sales and expenses in real time
* Issue e-invoices via WhatsApp
* Set reminders for credit collection
* Monitor cash flow without hiring an accountant
A tea shop in Matara using a free app to track sugar and milk purchases may not sound revolutionary but for that owner, it’s the difference between growing smartly and guessing blindly.
Tech without training is just a toy
Now, we can’t talk about fintech without addressing the elephant in the room, digital literacy.
Many SMEs are hesitant to adopt fintech tools simply because they aren’t confident using them. From downloading the right app to navigating English-only interfaces, the barriers are real. This is especially true for older entrepreneurs or rural businesses outside Colombo and Galle.
That’s why fintech adoption must be paired with education. Not just seminars and workshops, but relatable, language-inclusive guidance.
Let’s face it: If an app only gives instructions in English, it may as well be in Greek for the average micro SME store owner in Moneragala. The fintech sector must speak the language of the user, not the developer.
Fintech with a human face
One of the biggest opportunities for fintech in Sri Lanka lies in customisation with context. We’re not just replicating Western fintech models, we’re localising them.
QR codes at the pola (local market), mobile microinsurance for tuk drivers, and WhatsApp bots that offer invoice reminders in Sinhala and Tamil these are innovations with a uniquely Sri Lankan flavour. It’s not about flashy apps. It’s about solving real problems, beautifully and simply.
Final thought
For the small business owner, fintech is not about Bitcoin or blockchain it’s about daily decisions. Can I get paid faster? Can I track my profits better? Can I get a loan when I need it?
The real promise of fintech lies not in replacing banks, but in reaching the unreached. It’s about turning digital tools into everyday enablers of economic dignity.
If we can combine technology, empathy, and accessibility, fintech can become more than a buzzword. It can become a lifeline.
Because when a female entrepreneur in Jaffna uses a mobile wallet to grow her home baking business, or a craftsman in Embilipitiya gets his first online order through an e-commerce integration that’s not just financial technology.
That’s transformation.
The writer is Head of Marketing, CrossBorder Payments (Pvt) Ltd.
