The Central Bank of Sri Lanka has reiterated that merchant fees associated with card transactions should not be passed on to consumers by trading institutions.
According to existing agreements between banks and merchants, the responsibility for covering merchant fees lies solely with the merchants themselves—not the consumers.
A spokesperson for the Central Bank stated that both merchants and banks have been repeatedly informed about this matter, emphasizing that any fees added to the purchase cost must be absorbed by the merchant.
“This is a merchant fee that should be borne by the merchant. But what happens is that sometimes they pass it on to the consumer. We have been continuously informing merchants about it and informing banks. VISA and Mastercard card providers are also conducting this awareness,” the spokesperson said.
Despite this longstanding regulation, the issue remains unresolved. The Central Bank noted that awareness campaigns conducted by the institution—and even by global payment networks like VISA and Mastercard—have not been effectively followed by many merchants or banks.
Authorities stress that more stringent compliance is needed from all stakeholders to ensure that consumers are not unfairly burdened with additional charges during transactions.
