Sri Lanka has expanded the acceptance of Unified Payments Interface (UPI) payments, allowing Indian tourists to pay in Indian rupees at various merchants [1].
This shift simplifies the financial experience for visitors by removing the need for currency exchange at the point of sale. By integrating a digital payment system widely used in India, the initiative aims to boost tourism and reduce friction for travelers visiting the island nation [1, 3].
NPCI International Payments Limited (NIPL) coordinated the rollout to enable seamless transactions across a wide array of businesses [1, 2]. The expansion covers hotels, restaurants, retail outlets, and resorts [3, 4].
One of the high-profile adopters is the Cinnamon Life integrated resort in Colombo [2, 5]. As one of the first integrated resorts of its kind in South Asia, the venue now allows Indian travelers to settle bills using their UPI apps [5].
The rollout occurred in March 2026 [3, 4]. The system allows users to scan QR codes and complete payments in Indian currency, which are then processed through the NIPL framework [1, 4].
This integration follows a broader trend of digital payment interoperability between India and its neighbors. By allowing payments in rupees, the system reduces the reliance on third-party currency conversions that often involve hidden fees for the consumer [1, 3].
“Indian tourists to enjoy seamless payments abroad”
The expansion of UPI in Sri Lanka represents a strategic move to digitize the tourism corridor between India and Sri Lanka. By reducing the reliance on physical cash and traditional credit card foreign exchange fees, both nations are fostering deeper economic integration. This move likely serves as a blueprint for NIPL's further expansion of the UPI ecosystem into other international markets.
