Prime Minister Narendra Modi and Sri Lanka President Ranil Wickremesinghe signed a significant agreement during the latter’s two-day visit to India, enabling the acceptance of the Unified Payments Interface (UPI) in Sri Lanka. This move is expected to enhance fintech connectivity between the two nations.
All About the UPI Expansion
During a joint address, PM Modi expressed his enthusiasm for the UPI launch in Sri Lanka, emphasizing its potential to bolster financial technology links. This visit holds particular significance as it marks the first visit to India by a Sri Lankan leader since the country faced a severe economic crisis last year.
India played a crucial role in assisting Sri Lanka during the economic downturn, offering financial aid amounting to approximately USD 4 billion. This included lines of credit for the purchase of essential commodities like food and fuel, demonstrating India’s commitment to supporting its neighboring country during challenging times.
In addition to the UPI agreement, the two leaders discussed conducting feasibility studies on a petroleum line and land bridge connectivity between India and Sri Lanka, which could further strengthen economic ties.
PM Modi underlined the importance of the current year in India-Sri Lanka relations and announced the initiation of talks on economic and technological cooperation. To enhance connectivity, both nations also agreed to increase air links.
Furthermore, the adoption of UPI is not limited to Sri Lanka and France; it has also expanded to other nations. Recently, India and France signed an agreement during PM Modi’s visit to Paris, allowing Indian tourists to make Rupee payments using UPI at iconic locations like the Eiffel Tower.
Moreover, India had previously inked a deal with Singapore’s PayNow to enable cross-border transactions between the two countries. Additionally, the UPI system has already been embraced by the UAE, Bhutan, and Nepal, showcasing its growing international recognition and acceptance.
