Sri Lanka Unleashes a New Era of Cashless Travel by Partnering with NPCI International to Integrate UPI, Empowering Indian Tourists with Secure, Instant Payments Nationwide for Travel and Commerce

Written By: Ankita Sarmah

Ankita Sarmah

A passionate storyteller and aspiring journalist, Ankita Sarmah is currently pursuing a Master’s in English at DU while exploring the evolving landscape of journalism. With two years of practical experience, she has developed a strong ability to transform ideas, observations, and experiences into engaging narratives that connect with readers. Her journey combines academic knowledge with real-world reporting, allowing her to explore diverse fields such as culture, travel, and lifestyle through a creative and insightful perspective. Driven by curiosity and a passion for meaningful storytelling, Ankita strives to create fresh, authentic, and impactful content that informs, inspires, and leaves a lasting impression. For her, every story is more than words — it is an experience crafted to engage, connect, and resonate with audiences.

See Full Bio

March 17, 2026 4:06 PM

Image generated with Ai

Sri Lanka is revolutionizing travel for Indian tourists by integrating UPI payment solutions, offering seamless, instant, and secure transactions across key retail, tourism, and travel destinations nationwide. This transformative move is set to enhance the cross-border payment experience, making it easier for Indian travelers to make cashless payments, while simultaneously supporting Sri Lanka’s growing digital economy. By partnering with NPCI International and expanding UPI acceptance, Sri Lanka is providing a convenient, transparent, and frictionless way for tourists to pay, shop, and explore the country without the need for physical currency.

NPCI International Payments Limited (NIPL) has taken a significant step in enhancing the cross-border payment experience for Indian tourists by expanding the adoption of Unified Payments Interface (UPI) for merchant payments in Sri Lanka. This collaboration with LankaPay is designed to further support Sri Lanka’s growing digital economy and strengthen the economic and cultural ties between India and Sri Lanka.

UPI, India’s real-time payment system, has already revolutionized how people make transactions within India, offering a fast, secure, and efficient way to conduct payments using mobile applications. The system enables direct, instant account-to-account transfers, without requiring users to rely on physical cash. By facilitating payments via UPI, NPCI International aims to provide Indian tourists with a familiar and seamless payment method, enabling them to make secure transactions without needing to carry large amounts of cash. This initiative not only improves the payment experience for tourists but also boosts Sri Lanka’s digital infrastructure by expanding the acceptance of UPI across various sectors.

The partnership between NPCI International and LankaPay aims to significantly reduce the reliance on cash payments in Sri Lanka, offering a more convenient and transparent solution for both travelers and merchants. Indian tourists visiting Sri Lanka can now make payments by scanning LankaQR codes using UPI-enabled apps, eliminating the need to carry physical currency while offering a quicker and more efficient way to pay for goods and services. This system ensures that transactions are not only secure but also processed in real-time, making it highly efficient for both tourists and businesses.

UPI has already become widely adopted across India, processing over 20 billion transactions every month, a testament to its growing popularity and effectiveness. This has positioned India as the leader in digital payments in the country, and now, with UPI’s introduction in Sri Lanka, Indian visitors can enjoy the same level of convenience when they travel abroad. This is especially beneficial for the tourism industry, where cross-border payment solutions are essential to support the increasing number of international tourists.

In 2024, India was the largest source of foreign tourists to Sri Lanka, with over 416,000 Indian visitors. The number is expected to rise further, reaching 531,000 in 2025. This surge in Indian tourists highlights the importance of facilitating easier and more efficient payment solutions for cross-border visitors. By expanding UPI acceptance, NPCI International is responding to the increasing demand for hassle-free payment systems for tourists, which can significantly enhance the overall travel experience.

With UPI already being accepted at several prominent establishments across Sri Lanka, including Cinnamon Hotels, Taj Hotels, Barista, Keells Supermarket, and Odel, the system is already making waves in the Sri Lankan tourism and retail industries. The ability for Indian tourists to make UPI payments at these locations provides a seamless, cashless experience, allowing them to focus more on enjoying their vacation rather than worrying about currency exchange rates or carrying physical cash.

The benefits of UPI extend beyond just travelers. For Sri Lankan merchants, the system offers multiple advantages, including access to a large, digitally-savvy customer base. With more people using mobile payments, businesses can reduce their dependency on physical cash, which can be both costly and inefficient to manage. UPI allows for real-time transactions, meaning merchants can receive payments instantly and manage their finances more effectively. This also helps reduce the risk of fraud, a common issue with cash payments.

Furthermore, UPI enables transparent exchange rates, making it easier for travelers to understand the true cost of their purchases. Tourists no longer need to worry about hidden fees or fluctuating exchange rates when making payments, which can often cause confusion and frustration. The real-time nature of UPI transactions ensures that payments are processed swiftly, providing a smoother experience for both the customer and the business.

NPCI International’s expansion of UPI into Sri Lanka is not only beneficial for the tourism sector but also aligns with Sri Lanka’s broader vision of becoming a digital economy. By increasing the number of digital payment solutions available to consumers, Sri Lanka is making it easier for both residents and tourists to engage in secure, efficient transactions. This also strengthens the country’s position as a digitally innovative and forward-thinking destination, appealing to a global audience increasingly accustomed to seamless, cashless payment systems.

NIPL has expressed its commitment to continuing its collaboration with Sri Lankan regulators, banks, and merchants to further extend UPI’s acceptance across a range of industries. Beyond tourism, the aim is to make UPI available in retail, hospitality, and other sectors, creating a comprehensive digital payment ecosystem that can benefit both locals and tourists alike. The expansion of UPI into Sri Lanka is expected to open up new avenues for growth, not just in the tourism sector but across the economy as a whole.

Sri Lanka is transforming travel for Indian tourists by integrating UPI, enabling instant, secure payments across key destinations. This move simplifies cross-border transactions, enhancing convenience and supporting the country’s growing digital economy.

In conclusion, NPCI International’s initiative to enhance UPI acceptance in Sri Lanka represents a major step towards improving the cross-border payment experience for Indian tourists. With real-time transactions, transparent exchange rates, and a secure payment platform, UPI is set to become an essential tool for travelers in Sri Lanka, strengthening economic ties and promoting Sri Lanka’s digital economy. The collaboration with LankaPay marks the beginning of a new era in cross-border payments, bringing greater convenience, efficiency, and security to both tourists and merchants in Sri Lanka.