India, Sri Lanka adopt vision document, UPI-based payments to be accepted in the island country

Sri Lanka`s President Ranil Wickremesinghe (L) shakes hands with India`s Prime Minister Narendra Modi before a meeting at Hyderabad House in New Delhi on July 21, 2023. Photo: AFP

India and Sri Lanka Friday adopted an ambitious vision document to significantly expand economic partnership after wide-ranging talks between Prime Minister Narendra Modi and Sri Lankan President Ranil Wickremesinghe, PTI reported.

In his media statement, Modi, referring to the economic difficulties in Sri Lanka last year, said India stood "shoulder-to-shoulder" with the people of the island nation during the crisis as a close friend.

The past one year has been full of challenges for the people of Sri Lanka, he said, adding that being a close friend, as always, India stands shoulder-to-shoulder with the people of Sri Lanka.

In his comments, Modi said the security interests and development of India and Sri Lanka are intertwined and it is necessary to work together keeping in mind each other's security interests and sensitivities.

Modi said a vision document for economic partnership has been adopted. He said the vision is to accelerate mutual cooperation in areas of tourism, power, trade, higher education, skill development and connectivity. The vision is to strengthen maritime, air, energy and people-to-people connectivity between the people of both the countries, he said. Modi also said that it was decided that talks will start soon on an agreement on economic and technological cooperation.

He also hoped that the Sri Lankan government would fulfil the aspirations of the Tamil community. Modi said a feasibility study will be conducted on the India-Sri Lanka petroleum pipeline.

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On the fishermen issue, the prime minister said it should be handled under a humanitarian approach.

In his remarks, the Sri Lankan president said, "We believe that India's growth would be beneficial to the neighbourhood and Indian Ocean Region."

Several agreements, including that of UPI's acceptance in the island country, were also exchanged between India and Sri Lanka in the presence of Prime Minister Narendra Modi and Sri Lankan President Ranil Wickremesinghe.

UPI payments system has become hugely popular for retail digital payments in India, and its adoption is increasing at a rapid pace.

So far, France, UAE, and Singapore had parterned with India on the emerging fintech and payment solutions.

Unified Payments Interface (UPI) is India's mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly, using a Virtual Payment Address (VPA) created by the customer.

In February 2023, India and Singapore signed an agreement to link their respective payment systems, allowing users in either country to make cross-border transactions. People in both the countries will be able to send money real-time via QR-code based or simply by entering mobile numbers linked to the bank account.

Earlier this month, France had agreed to use Unified Payments Interface (UPI) payment mechanism. It will begin from the iconic and tourist hotspot Eiffel Tower. (Agencies)