Mumbai/Colombo: NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India, has reinforced its commitment to expanding UPI Merchant Acceptance in Sri Lanka.
This initiative is aimed at enhancing cross-border payment experiences for Indian travellers, supporting Sri Lanka’s digital economy, and strengthening economic and cultural ties between India and Sri Lanka.
The push for UPI Merchant Acceptance comes at a time when outbound Indian tourism to Sri Lanka continues to grow significantly, necessitating seamless and secure digital payment solutions.
UPI Emerges as a Global Digital Payment Leader
The Unified Payments Interface (UPI), India’s real-time account-to-account payment system, enables instant and secure transactions through mobile applications.
With over 20 billion financial transactions processed monthly, UPI has become one of the most advanced digital payment infrastructures globally.
Supporting more than 700 million UPI QR touchpoints across India, its interoperable architecture and robust security framework have enabled seamless international integrations, including with Sri Lanka’s LankaQR infrastructure.
This expansion significantly strengthens UPI Merchant Acceptance across international markets.
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Rising Indian Tourist Footfall Drives Need for UPI Merchant Acceptance
India continues to be the largest source market for Sri Lanka’s tourism sector. Over 4,16,000 Indian tourists visited Sri Lanka in 2024, increasing to 5,31,000 in 2025 – accounting for the highest share of international arrivals.
With this consistent growth, the need for reliable and convenient payment methods has become increasingly critical. Indian tourists travel to Sri Lanka for leisure, weddings, shopping, and spiritual tourism, making UPI Merchant Acceptance a key enabler of a frictionless travel experience.
Collaboration with LankaPay Expands Digital Payment Ecosystem
Through its collaboration with LankaPay, NPCI International has enabled Indian tourists to make payments across Sri Lanka by scanning LankaQR codes using their preferred UPI-enabled apps.
This eliminates the need for carrying or exchanging physical currency and accelerates UPI Merchant Acceptance across merchant touchpoints.
UPI payments are now accepted at leading establishments such as Cinnamon Hotels, Taj Hotels, Barista, Keells Supermarket, and Odel, among others.
To further scale UPI Merchant Acceptance, NIPL is actively engaging with key stakeholders including the Central Bank of Sri Lanka, acquiring banks, and merchants to align with the country’s domestic payment framework.
Benefits of UPI Merchant Acceptance for Travellers and Merchants
The expansion of UPI Merchant Acceptance delivers significant advantages across the ecosystem:
- For travellers: Real-time payments directly from Indian bank accounts, transparent exchange rates, and a familiar, secure payment experience.
- For merchants: Access to a large, digitally savvy customer base, improved cash flow management, reduced reliance on cash, and enhanced operational efficiency.
Ritesh Shukla, MD & CEO, NPCI International, said, “NPCI International is committed to building trusted, interoperable payment corridors that bring countries closer through technology. Our engagement in Sri Lanka reflects a shared vision to enhance digital payment acceptance, simplify travel and commerce for millions of people, and create value for local businesses and the wider economy.
Through our partnership with LankaPay, we are advancing seamless, secure, and real-time transactions that strengthens the economic partnership between India and Sri Lanka.”
Future Outlook: Scaling UPI Merchant Acceptance Across Key Sectors
As adoption accelerates, NIPL will continue working with regulators and ecosystem stakeholders to expand UPI Merchant Acceptance across high-frequency sectors such as hospitality, retail, tourism, and essential services.
Recognised by the International Monetary Fund as the world’s largest real-time payment system – accounting for 49% of global instant payments – UPI presents a significant opportunity for Sri Lankan merchants to enhance the travel experience for Indian visitors while boosting cross-border commerce.
