Sri Lanka Adds More Merchants to UPI Network for Indian Visitors

NPCI International Payments Limited (NIPL) has expanded the use of Unified Payments Interface (UPI) across Sri Lanka, allowing Indian tourists to pay digitally at a wider set of outlets. 

As per the news reports, the development builds on the LankaQR system introduced in 2024 and centres on increasing merchant participation rather than launching a new payment method. 

Existing Framework Extended 

UPI payments in Sri Lanka are enabled through LankaQR codes, developed in partnership with LankaPay. Indian users can scan these codes using their existing UPI apps to complete transactions directly from their bank accounts. 

The current phase focuses on expanding acceptance across locations that see regular tourist spending. 

Wider Merchant Coverage 

More businesses have been added to the network, particularly in hospitality and retail. This includes properties such as Cinnamon Hotels and Taj Hotels, along with outlets like Barista, Keells Supermarket, and Odel. 

The expansion is for improving coverage in hotels, supermarkets, and shopping areas. 

Tourist Numbers Support Rollout 

India remains the largest source of visitors to Sri Lanka. Arrivals increased from over 4.16 lakh in 2024 to more than 5.31 lakh in 2025. 

Higher tourist volumes have led to increased use of digital payments, particularly options that reduce the need for carrying cash. 

Usage and Scale 

UPI handles over 20 billion transactions each month and allows real-time payments between bank accounts. Transactions show exchange rates at the time of payment, which helps users track spending. 

For businesses, digital payments can reduce cash handling and support quicker settlements. 

Read More: International UPI Transactions Near Double in FY26, Cross 1 Million Mark! 

Conclusion 

The expansion increases the number of outlets accepting UPI payments in Sri Lanka, particularly in sectors linked to tourism. It follows a rise in Indian visitor numbers. 

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