UPI-enabled transactions via LankaQR were introduced in Sri Lanka in 2024. The recent initiative aims to enhance merchant coverage, especially in high-traffic areas such as hospitality, retail, and tourism, rather than launching a new system.
By partnering with LankaPay, Indian tourists can already make payments by scanning LankaQR codes with UPI-enabled applications. With this ongoing effort, more establishments—including hotels, supermarkets, and retail chains—are being integrated into the network to enhance accessibility.
For personal finance, the expanded rollout is anticipated to facilitate cross-border spending for Indian users by decreasing reliance on cash and foreign exchange services. UPI transactions enable direct payments from Indian bank accounts with real-time processing and clearly visible exchange rates, providing a familiar payment experience abroad.
India continues to be the largest source of tourists for Sri Lanka, with more than 5.31 lakh Indian visitors in 2025, an increase from 4.16 lakh in 2024. The rising influx of tourists has increased the demand for more convenient and secure payment solutions.
For merchants, the greater acceptance of UPI opens up access to a vast base of Indian consumers and can enhance cash flow efficiency by diminishing reliance on physical currency.
UPI manages over 20 billion transactions monthly and represents a significant portion of global real-time payments. The National Payments Corporation of India, through NIPL, confirmed its commitment to collaborate with local stakeholders to broaden acceptance across additional sectors, aiding cross-border commerce and travel between the two nations.
