Sri Lankan online shoppers stick to cash on delivery amid digital payment hesitation

Despite global shifts toward digital transactions, Cash on Delivery (COD) remains the dominant payment method for online shopping in Sri Lanka, according to the Digital Outlook Sri Lanka 2025 Report by the Asia Pacific Institute of Digital Marketing (APIDM) and the University of Kelaniya.

 

The report reveals that 52 percent of Sri Lankan online shoppers prefer COD, up from 48 percent in the previous year, underscoring persistent consumer caution toward digital payments. 

 

While debit/credit card usage has dipped slightly to 35 percent (from 39.5 percent last year), newer digital payment methods such as e-wallets/e-money apps lag at 1 percent or less. Installment-based “Buy Now, Pay Later” options account for 3 percent, reflecting modest traction. Online bank transfers, meanwhile, accounted for 8 percent (down from 9 percent last year).