GovPay causes major revenue loss to Postal Dept: UPTUF

The Postal Department had introduced a new SMS notification system for individuals paying police fines at post offices

The system was designed to notify both the respective traffic police officer and the individual who paid the fine via SMS

By Indika Sri Aravinda   

Following the introduction of the GovPay online system for paying traffic fines, the income generated by the Postal Department from such payments has ceased, resulting in a significant loss of revenue to the department, Postal Trade Unions Front (UPTUF) Co-convener Chinthaka Bandara said.  

He told the media that two years ago, the Postal Department had introduced a new SMS notification system for individuals paying police fines at post offices.   

The system was designed to notify both the respective traffic police officer and the individual who paid the fine via SMS.   

Unfortunately, the system was never implemented due to a lack of response from the Police Department. 

“As a union, we do not oppose the use of technological solutions for the betterment of the country, but such initiatives should not negatively impact government institutions like the Postal Department,” Bandara said.   

He noted that the department stands to lose between Rs. 600 million and Rs. 800 million in annual revenue due to the shift away from post office-based fine payments. Bandara urged the government to implement the SMS system introduced by the Postal Department and to allow it to continue handling traffic fine payments.   

The union further requested the government to introduce new digital systems in a way that does not undermine the financial stability of government institutions.   

Bandara also pointed out the importance of involving the Postal Department in the implementation of digital payment systems.   

“Any damage to the income of the Postal Department will directly affect the government Treasury,” he warned.   

He pointed out that the GovPay online traffic fine payment system is currently operating as a pilot programme.  

“Therefore, the government still has the opportunity to revise and integrate our proposal within the framework of the ongoing programme,” Bandara added.