Payments using Indian Rupee on UPI will take 3 months: Sri Lanka

Sri Lanka's Foreign Minister M.U.M. Ali Sabry has expressed hope that work on payments using Indian Rupee on UPI will likely take 3 months. He expressed hope that by the end of the year, the payment interface will be in place. Speaking to reporters in Colombo, on the outcome of just concluded President Ranil Wickremasinghe's visit to India, Sabry on Saturday said that the balance of trade is tilted towards India which makes a case for Sri Lanka to receive payment in INR from Indian tourists.

In addition, the minister shared details of other areas of discussions held recently in New Delhi. He added that Sri Lanka will explore opportunities to connect with the South Indian region. He said that after establishing air connectivity and maritime connectivity, the next step will be to allow vehicles to be brought across the ports. He mentioned that Sri Lanka will explore this "bridge" on similar lines as Singapore - Malaysia after a detailed study by experts. We have considered the possibility of using the Indian rupees like we accept the dollar, euro and yen," he said. Allowing its direct use would prevent the need for multiple currency conversions for Indian tourists and businessmen.

Sabry said that Sri Lanka is looking forward to developing Trincomalee as an energy hub, which will propel the development of the eastern province. He added that zones will be identified for various projects in Trincomalee which will be offered to interested parties. The two countries signed the Network to Network Agreement between NIPL and Lanka Pay for UPI application acceptance in Sri Lanka after bilateral talks between Modi and Wickremesinghe. Following months of negotiations, representatives from both countries reached a consensus on the currency recognition, emphasizing the mutual benefits it will bring to the two economies. This move holds significant implications for cross- border trade, investment, and tourism between India and Sri Lanka.Making Indian rupee (INR) a designated foreign currency enables not only trade settlement between the two countries in INR but also Indian tourists coming to Sri Lanka can use INR for transactions.