UPI-enabled payments via LankaQR were launched in Sri Lanka in 2024. The latest development focuses on expanding merchant coverage, particularly across high-traffic segments such as hospitality, retail, and tourism, rather than introducing a new system.
Through collaboration with LankaPay, Indian travellers can already make payments by scanning LankaQR codes using UPI-enabled apps. With the current push, more outlets—including hotels, supermarkets, and retail chains—are being brought onto the network to improve accessibility.
For personal finance, the wider rollout is expected to make cross-border spending more seamless for Indian users by reducing reliance on cash and foreign exchange services. UPI transactions allow direct payments from Indian bank accounts with real-time processing and visible exchange rates, offering a familiar payment experience abroad.
India remains the largest source of tourists for Sri Lanka, with over 5.31 lakh Indian visitors in 2025, up from 4.16 lakh in 2024. The growing tourist flow has driven demand for more convenient and secure payment options.
For merchants, increased UPI acceptance offers access to a large base of Indian consumers and can improve cash flow efficiency by reducing dependence on physical currency.
UPI processes over 20 billion transactions monthly and accounts for a significant share of global real-time payments. National Payments Corporation of India, through NIPL, said it will continue to work with local stakeholders to scale acceptance across more sectors, supporting cross-border commerce and travel between the two countries.
