Six months after it was introduced by the heads of each international locations, India has mentioned the early launch of the UPI payment system with Sri Lanka and reiterated its help within the cash-strapped island nation’s debt restructuring course of.
In July 2023, Prime Minister Narendra Modi and Sri Lankan President Ranil Wickremesinghe signed an settlement on Unified Payments Interface (UPI) acceptance in Sri Lanka throughout Wickremesinghe’s two-day go to to India.
“High Commissioner reiterated that India will continue to be a steadfast partner in Lanka’s economic recovery in his meeting with the CBSL Governor. Discussed early launch of the UPI payment system in SL, growth in INR trade settlements, and India’s support in Lanka’s debt restructuring process,” stated a put up on X by the High Commissioner of India after the assembly.
Prime Minister Modi beforehand introduced the collaborative efforts of each nations within the fintech sector, aimed toward integrating the Unified Payments Interface (UPI) with Lanka Pay. This announcement was made throughout the launch of ferry companies between Nagapattinam in India and Kankesanthurai in Sri Lanka.
Throughout 2023, India emerged as a dependable ally for Colombo, notably aiding the island nation’s financial resurgence amid difficult instances. India’s help prolonged past diplomatic relations, offering substantial help of over USD 4 billion in comparison with the IMF’s bailout of roughly USD 3 billion amid Sri Lanka’s monetary disaster.
President Wickremesinghe reported on November 29 that Sri Lanka is nearing a consensus with exterior collectors on debt restructuring. This growth is pivotal for the IMF’s analysis of the USD 2.4 billion bailout facility sanctioned in March 2023, indicating progress in Sri Lanka’s monetary stabilisation efforts.
(With PTI inputs)
