Tourism in Sri Lanka is on a high growth trajectory…
Tourism in Sri Lanka is on a high growth trajectory… Tourism is booming in Sri Lanka, thanks to its rising popularity as a must-visit destination. To make it even more appealing, tourists from China, India, Indonesia, Russia, Thailand, Malaysia, and Japan can travel to Sri Lanka without a visa. Instead, they need to apply for an Electronic Travel Authorization (ETA) before arriving, which is free of charge. This scheme is valid until March 2024, allowing a 30-day visa with double entry. In January 2024 alone, Sri Lanka welcomed a record-breaking 208,253 visitors, marking a 103.1% increase—the highest in four years. The first four days of February saw 28,493 arrivals, averaging 7,000 travelers a day, with tourists from Russia, India, the UK, Germany, and China leading the pack. The tourism sector is predicted to receive around 2 million visitors in 2024, generating an estimated revenue of USD 6 billion. Offering visa-free travel encourages digital payment options, aligning with the preferences of today’s tech-savvy travelers. The Visa Global Travel Intentions Study supports the idea that modern travelers seek experiential travel beyond tourist hot spots, emphasizing the importance of convenient and secure payment access. To enhance tourism, Sri Lanka must develop its payment infrastructure, ensuring various options like cards, contactless payments, QR codes, and online transactions are widely available. While Sri Lanka has made progress in digital payments, there’s still work to be done, especially in areas outside the Western Province, where digital literacy remains a challenge. The government aims to attract 5 million tourists by 2029, anticipating USD 21.6 billion in revenue by 2030. This ambitious goal relies on increasing tourism spending to USD 4,000 per visitor, attracting high-spending tourists. Cashless payments provide safety and convenience for tourists, allowing them to pay in the local currency and access discounts on various services. The combination of great experiences, natural beauty, and digital convenience positions Sri Lanka as an attractive and enriching holiday destination. Click HERE to Start Planning Your Holiday in Sri Lanka…
Sri Lanka launches UPI
Sri Lanka has introduced the Unique Payment Interface (UPI), a digital payment method widely used in India, to facilitate transactions for the increasing number of Indian tourists visiting the country and to promote formal banking, officials have announced. The launch ceremony was attended by Indian Prime Minister Narendra Modi, Sri Lankan President Ranil Wickremesinghe, and Mauritius Prime Minister Pravind Jugnauth. The system allows Indians to make cashless payments in Colombo and Port Louis through UPI, using a smartphone to scan the Lanka QR code of any vendor. Officials have identified 65,000 popular locations frequented by Indian tourists, with plans to enable 10,000 of these locations to accept UPI payments within the next three weeks. The remaining spots will be equipped with the system by March 31, 2024. In 2023, Indian tourists made up a significant portion of the total foreign visitors to Sri Lanka, accounting for over 300,000 out of 1,487,303 arrivals. The UPI transactions will be capped at 200,000 Sri Lankan rupees per transaction. LankaPay, a key player in digitalizing Sri Lanka’s banking and financial services sector, expressed optimism about the adoption of QR payments. The chairman noted that while QR systems are not yet widespread in Sri Lanka, partnerships with international entities, such as UPI, are expected to drive usage and popularity among merchants. The UPI system allows Indian tourists to make payments using their smartphones, scanning the Lanka QR code, promoting a shift from informal income measures to formal income for merchants. However, at present, Sri Lankans visiting India cannot use the same facility, with plans to extend the service to them in the future. During the launch, President Wickremesinghe highlighted the long-standing economic ties between Sri Lanka and India, expressing hope for continued connectivity and deepening relations. Indian Prime Minister Modi emphasized the role of UPI in uniting partners and spoke about the positive impact of technology on transparency, corruption reduction, and inclusivity in society. Modi expressed confidence that UPI’s connection would benefit Sri Lanka and Mauritius, fostering digital transformation, positive economic changes, and promoting tourism. He anticipated that Indian tourists would prioritize destinations with UPI acceptance, and people of Indian origin in Sri Lanka and Mauritius, as well as students, would enjoy special benefits. In collaboration with the Reserve Bank of India and the Central Bank of Sri Lanka, NPCI International Payments Limited of India and LankaPay have worked together to enable UPI acceptance through LankaQR. This collaboration is expected to streamline digital payments for Indian tourists in Sri Lanka. Click HERE to plan your tour in Sri Lanka…