NPCI International Payments Limited, the overseas arm of India's National Payments Corporation, announced on March 17, 2026, that it has strengthened UPI acceptance across Sri Lanka in collaboration with LankaPay, the operator of Sri Lanka's domestic payment network. The integration allows Indian visitors to make real-time digital payments by scanning LankaQR codes displayed at merchant locations using any UPI-enabled application on their smartphones.
The service is currently live at prominent establishments including Cinnamon Hotels, Taj Hotels, Barista, Keells Supermarket and Odel department stores. Payments are converted and settled in real time, providing travellers with transparent exchange rates and removing the need to carry cash or visit currency exchange counters. NPCI International has indicated plans to extend merchant coverage further across hospitality, retail and broader tourism sectors in the coming months.
India remains Sri Lanka's largest source market for inbound tourism, with visitor numbers rising from approximately 416,000 in 2024 to 531,000 in 2025. For Sri Lankan merchants, UPI acceptance opens a direct payment channel to a large and digitally active customer base while improving cash management and reducing dependence on physical currency handling.
The Sri Lanka rollout is part of UPI's accelerating international expansion. NPCI International has been building acceptance corridors in countries with significant Indian tourist and diaspora populations, with UPI now accepted in Singapore, the UAE, France and several other markets. In February 2026, India and Israel agreed during a bilateral summit to extend UPI acceptance to Israel. NPCI International has stated its goal of having UPI operational in more than 20 countries by the financial year ending March 2029.