To facilitate easy digital payments for Indian tourists and bolster Sri Lanka’s digital economy, NPCI International Payments Limited (NIPL), the foreign arm of the National Payments Corporation of India, announced that it is enhancing the acceptance of Unified Payments Interface (UPI) throughout the island nation.
Users in India can now scan local QR codes with UPI-enabled apps thanks to the initiative’s integration with LankaQR, run by LankaPay. Across the country, this change expands digital payment alternatives at supermarkets, retail stores, and hotel chains while decreasing reliance on cash.
Sri Lanka’s tourist industry continues to rely on India as its top source market. Demand for easy payment solutions for travel, shopping, weddings, and spiritual tourism was driven by an increase in the number of Indian tourists to the country from 4.16 lakh in 2024 to 5.31 lakh in 2025.
In order to increase acceptance, NIPL is working with relevant parties such as the Sri Lankan Central Bank, acquiring banks, and retailers to integrate into the local payment system.
Merchants will be able to tap into a rising pool of digital customers and enhance their cash management capabilities, and travellers will be able to make instant payments with transparent exchange rates, all thanks to the effort, according to NIPL.
In an effort to streamline international financial transactions and strengthen economic links between Sri Lanka and India, NPCI International’s Ritesh Shukla, MD and CEO, has stated that the firm’s primary focus is on constructing interoperable payment corridors.
According to the International Monetary Fund, UPI is the biggest real-time payment system in the world. It is anticipated that UPI will enhance cross-border trade and economic involvement between the two nations driven by tourism.
