In a significant move towards enhancing financial connectivity in the Indian Ocean region, India’s leading fintech company, PhonePe, has launched its Unified Payments Interface (UPI) in Sri Lanka. The launch event, attended by Central Bank of Sri Lanka Governor Nandalal Weerasinghe and India’s High Commissioner to Sri Lanka, Santosh Jha, marks a milestone in fostering digital financial transactions between the two nations.
The Indian High Commission in Sri Lanka, in a post on social media platform X, celebrated the event as a step towards “unlocking new frontiers in fintech connectivity.” The collaboration between PhonePe and LankaPay aims to streamline payment processes for tourists visiting Sri Lanka, enabling them to make secure and convenient transactions using UPI across LankaPayQR merchants nationwide.
With this initiative, PhonePe users can seamlessly scan LankaQR codes to initiate payments, eliminating the need for cash or cumbersome currency conversions. This development aligns with India’s broader strategy of leveraging its fintech expertise to strengthen bilateral ties and promote digital financial inclusion in partner countries.
Earlier this year, India’s Prime Minister Narendra Modi, along with his counterparts from Mauritius and Sri Lanka, inaugurated the expansion of India’s instant payment technology, UPI, to these nations. During the virtual event, PM Modi emphasized the importance of fostering digital connectivity as a means to enhance cross-border transactions and strengthen regional cooperation.
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PM Modi highlighted the transformative impact of Digital Public Infrastructure, such as UPI, in India, where it has facilitated over 100 billion transactions valued at Rs 2 trillion in 2023 alone. He underscored how even the smallest businesses in rural India have embraced digital payments, citing the convenience and speed offered by UPI.
The extension of UPI to Sri Lanka underscores India’s commitment to sharing its fintech innovations and development experiences with partner countries. By enabling seamless cross-border transactions, UPI not only facilitates economic exchanges but also fosters closer ties between nations in the Indian Ocean region.
In conclusion, the launch of PhonePe’s UPI payments in Sri Lanka represents a significant step towards enhancing fintech connectivity and promoting digital financial inclusion in the region. With India’s expertise in fintech innovation, coupled with collaborative efforts between public and private sectors, initiatives like this are poised to drive economic growth and strengthen regional partnerships in the years to come.
