1. What is a POS system and how does it work?

A Point of Sale (POS) system is the technology a business uses to manage transactions. In its simplest form, it’s a modern cash register. However, a powerful POS system is the central “brain” of your business.

It works by recording a sale, calculating the total (including taxes like VAT and SSCL), accepting payment, and printing a receipt. A modern POS like BigPOS also instantly updates your inventory, logs the sale in your reports, and saves customer information for loyalty programs.

2. What are the key features I should look for in a POS system?

For a business in Sri Lanka, the key features are:

• Tax Compliance: Must be able to accurately calculate and report VAT (Value Added Tax) and SSCL (Social Security Contribution Levy) as required by the Inland Revenue Department (IRD).
• Payment Integration: Seamless support for LANKAQR, Sri Lanka’s national QR code standard, as well as credit/debit cards.
• Offline Mode: A robust ability to continue making sales even if your internet connection is unstable, which is critical for business continuity.
• Inventory Management: Real-time stock tracking.
• Local Support: A support team that is available and understands the local business context.

3. What types of POS systems are available in Sri Lanka? (Traditional & Cloud-based)

There are two main types:

• Traditional (On-Premise): This is an older model where all your business data is stored on a local computer or server at your shop. It’s often a high one-time cost and is difficult to update for new tax rules or features.
• Cloud-Based: This is the modern standard. Your data is stored securely online. You can access your sales reports from anywhere, and the system is always up-to-date. BigPOS is a cloud-based system with a strong offline mode, giving you the security of the cloud and the reliability of an on-premise system.

4. How much does a POS system cost in Sri Lanka?

The cost varies, but here’s a general breakdown in Sri Lankan Rupees (LKR):

• Software: Cloud-based POS software is typically sold as a monthly or annual subscription. This can range from LKR 5,000 to LKR 20,000+ per month per terminal, depending on the features (e.g., advanced inventory, multi-outlet).
• Hardware: This is a one-time cost. A basic setup (tablet, printer, cash drawer) can start from LKR 60,000 to LKR 150,000+.

BigPOS offers transparent and competitive pricing plans. We recommend booking a demo for a custom quote based on your exact business needs.

5. Are there hidden costs I should be aware of?

You should always ask your vendor about:

• Payment Processing Fees: These are separate from your POS subscription and are charged by the bank or payment gateway for each transaction.
• Hardware Costs: Is the hardware bundled or sold separately?
• Premium Support: Is on-site support or 24/7 help an extra fee?
• Update Fees: Older (on-premise) systems may charge you for updates, especially for new tax compliance. BigPOS includes all updates in the subscription.

6. Is there government support available for POS systems?

While Sri Lanka has various initiatives to support Small and Medium Enterprises (SMEs) and promote digitalization, specific grants for POS systems can vary and are not as standardized as in other regions. We recommend checking with local SME development bodies, the Central Bank of Sri Lanka (for LANKAQR initiatives), or your business bank for the latest information on SME support schemes or subsidized loan programs.

7. What hardware do I need for a POS system?

A typical modern setup includes:

• A Terminal: This is the main screen, often an Android tablet, iPad, or an all-in-one POS terminal.
• Cash Drawer: To store cash.
• Receipt Printer: To print receipts for customers.
• Barcode Scanner: Essential for retail businesses.
• Payment Terminal: To accept card payments and display your LANKAQR code.

Learn more about POS hardware in Sri Lanka.

8. Do I need an internet connection to run a POS system?

This is a critical question in Sri Lanka. A system that is only cloud-based will stop working if your internet fails.

The best solution is a hybrid system like BigPOS. Our POS is designed with a powerful offline mode. You can continue to make sales, take orders, and print receipts even without the internet. All transaction data is stored securely on the device and automatically syncs to the cloud once you’re back online.

9. Can I use my existing hardware with a new POS system?

Often, yes. Flexible POS software like BigPOS is designed to run on common hardware you may already own, such as an iPad or Android tablet. This can significantly reduce your startup costs. We can advise you on whether your existing printers and cash drawers are compatible.

10. What payment methods should my POS system support?

To serve customers in Sri Lanka, your POS must support:

• LANKAQR: This is the national standard, allowing you to accept payments from over 20 different bank and mobile wallet apps (like Frimi, eZ Cash, mCash, etc.) through a single QR code.
• Credit/Debit Cards: Visa and Mastercard are essential.
• Cash: Still a vital payment method.

11. How do payment processing fees work?

These fees are not charged by your POS provider. They are charged by the payment acquirer (your bank) as a Merchant Discount Rate (MDR). This is a small percentage of each transaction. The MDR for LANKAQR is often significantly lower than for credit cards, which is a major incentive for businesses to promote it.

12. Does the POS system comply with Sri Lankan tax regulations?

Yes, this is a non-negotiable legal requirement. Your POS system must be able to:

• Correctly calculate VAT (Value Added Tax).
• Correctly calculate the SSCL (Social Security Contribution Levy).
• Print tax invoices that are compliant with the standards of the Inland Revenue Department (IRD).
• Generate accurate summary reports for your tax filing.

BigPOS is built to handle these complex Sri Lankan tax calculations, ensuring your business stays compliant.

13. Does my POS system need to comply with data protection regulations?

Yes. If you collect any customer information (e.g., for a loyalty program), you must comply with Sri Lanka’s Personal Data Protection Act (PDPA), No. 9 of 2022. This new law requires businesses to protect personal data.

A secure POS like BigPOS helps you comply by using data encryption, secure cloud storage, and user permissions to control who can access sensitive customer information. Read our Privacy Policy for more details.

14. Can a POS system help with inventory management?

Yes, this is one of its most valuable features. A good inventory management POS system:

• Tracks your stock levels in real-time as you make sales.
• Sends you low-stock alerts so you know when to reorder.
• Manages suppliers and purchase orders.
• For F&B, it can even track ingredient-level stock (e.g., how many grams of coffee are left).

15. How can I manage multiple outlets with a POS system?

This is the primary benefit of a cloud-based POS. A system like BigPOSprovides a central “HQ” dashboard. From this one login, you can:

• See live sales reports from all your branches.
• Compare the performance of each outlet.
• Manage your inventory across all locations.
• Update your menu or product prices once and send the changes to all stores instantly.

16. What kind of reports and analytics can a POS system provide?

A modern POS gives you powerful data to make smart decisions. You can see:

• Sales Reports: Revenue, profit, and busiest times of the day.
• Top-Selling Items: What to promote and what to stop ordering.
• Staff Performance: Track sales by employee.
• Inventory Reports: Identify stock value, margins, and waste.
• Tax Reports: A summary of all VAT and SSCL collected for easy filing.

Explore our Big Analytics App for advanced reporting features.

17. Can my POS system integrate with other business software?

Yes. A good POS should be the “hub” of your business. BigPOS can be integrated with:

• Accounting Software: To automatically send your sales data to your accountant.
• E-commerce Platforms: To sync your in-store and online inventory (Unified Commerce).
• Delivery Apps: To receive orders from platforms like Uber Eats or PickMe directly into your POS.

18. What POS features are essential for F&B businesses in Sri Lanka?

F&B (restaurants, cafes, bakeries) needs specific features:

• Table Management: A visual floor plan of your restaurant.
• Kitchen Order Printing / KDS: Send orders directly to the kitchen or a kitchen display screen.
• Item Modifiers: Easily add customer requests (e.g., “less spicy,” “extra cheese”).
• Bill Splitting: Easily split a bill for large groups.
• Mobile Ordering System: Allow customers to order from their table.

BigPOS for F&B is designed with all these tools to manage a busy restaurant.

19. What POS features do retail businesses in Sri Lanka need?

Retail (shops, boutiques, groceries) has different needs:

• Barcode Scanning: For fast and accurate checkout.
• Inventory Matrix: To manage products with variants like different sizes and colors.
• Customer Database (CRM): To build a customer list and track purchase history.
• Loyalty Programs: To reward your repeat customers.

BigPOS for Retail provides these features to help you manage your stock and customers.

20. How long does it take to set up a POS system?

An old on-premise system could take weeks. A modern cloud-based system like BigPOS is much faster. After you sign up, we can help you set up your hardware, upload your menu or inventory, and train your staff in as little as one to two days.

21. What kind of training and support is available?

This is a critical factor. Don’t choose a provider with no local presence. BigPOS provides:

• Full Onboarding: We guide you through the setup process.
• Staff Training: We teach you and your employees how to use the system.
• Local Support: We have a support team that understands the Sri Lankan market. You can reach us via phone, WhatsApp, or email for any issues.

22. How do I train my staff to use a new POS system?

Modern systems like BigPOS are designed to be as intuitive as a smartphone. The user interface is clean and simple. Training is usually very fast—new staff can often learn the basics of making a sale in under 15 minutes. We also provide training guides and support for any questions.

23. How do I choose the right POS system for my business?

Focus on these three questions:

1. Is it Compliant? Can it perfectly handle Sri Lankan IRD rules for VAT and SSCL?
2. Is it Connected? Does it fully support LANKAQR and have a strong offline mode?
3. Is it Supported? Does the provider have a local support team in Sri Lanka that you can call for help?

A system that checks all three boxes, like BigPOS, is built to succeed in Sri Lanka. Check out our POS solutions to learn more.

24. What are common mistakes to avoid when selecting a POS system?

• Choosing the Cheapest Price: The cheapest system often lacks local tax compliance, has no offline mode, and has zero support, costing you far more in lost sales and tax fines.
• Ignoring Local Support: Choosing an international provider with no local team is a huge risk.
• Not Checking Offline Mode: A “cloud-only” POS is not suitable for many areas in Sri Lanka.
• Poor Tax Compliance: Using a generic system not built for Sri Lanka’s VAT and SSCL rules is a major legal risk.

Looking for an affordable POS system in Sri Lanka? Make sure it meets all compliance requirements.

25. How will upcoming regulations affect my POS system?

The two biggest regulatory areas are:

1. Tax (IRD): The government is always refining its digital tax collection. The IRD may introduce new requirements for digital invoicing or reporting.
2. Data Protection (PDPA): The full implementation of the Personal Data Protection Act (PDPA), No. 9 of 2022 means all businesses must be responsible for customer data.

Using a cloud-based POS like BigPOS is the best way to stay safe. We push all regulatory and security updates to your system automatically, so you are always compliant. Review our Terms & Conditions for more information.

26. What emerging POS trends should I be aware of in Sri Lanka?

• Mass LANKAQR Adoption: This is the biggest trend. Driven by the Central Bank, QR payments are becoming the new standard due to their low cost and convenience.
• Unified Commerce: Businesses are connecting their physical store POS with their e-commerce websites (like Shopify) to manage one single inventory.
• SME Digitalization: After the recent economic challenges, more and more SMEs are abandoning old cash registers for affordable, powerful cloud POS systems to control their costs, manage inventory, and ensure tax compliance.

Looking for a POS system for small business in Sri Lanka? Explore our solutions tailored for SMEs.