India's UPI to power Sri Lanka's fintech connectivity amid island nation's economic revival

Indian Prime Minister Narendra Modi engaged in wide-ranging talks with visiting Sri Lankan President Ranil Wickremesinghe on Friday (July 21) which largely focused on improvising economic and strategic cooperation and signing ofagreements, which included setting up of UPI in the island nation as well as constructing a land bridge which will connect the two nations and provide land access to Trincomalee and Colombo ports.

Wickremesinghe, who is on a two-day visit to India, landed in New Delhi on Thursday (July 20). This is the first Indian trip of any senior Sri Lankan leader after the nation faced an unprecedented economic crisis last year.

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Financial assistance of USD 4 billion was extended by India to Sri Lanka, which included lines of credit for purchasing fuel and food last year when the country suffered an economic crisis.

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The Indian government had also provided guarantees to the International Monetary Fund (IMF) to assist the country in securing a USD 2.9 billion bailout package.

"An opportunity to review and lend further momentum to the long-standing India-Sri Lanka ties as the two countries celebrate 75 years of diplomatic relations this year," said External Affairs Ministry spokesperson Arindam Bagchi on Twitter, just before the two leaders began talks.

In the tweets that followed, Bagchi said, "A wide-ranging agenda on the table covering areas of energy security, economic and financial linkages, defence & security co-operation and people to people ties. Talks will focus on promoting mutually beneficial cooperation across sectors and strengthening connectivity in all its dimensions between our two countries."

Network-to-network agreements for UPI in Sri Lanka

India and Sri Lanka exchanged several agreements in the presence of Indian PM Modi and Sri Lankan President Wickremesinghe in New Delhi. One of the agreements finalised was fornetwork-to-network agreements for the acceptance of UPI in Sri Lanka.

Speaking at the joint conference after the talks, PM Modi said, "We agree on the enhancement of air connectivity between India and Sri Lanka. To increase trade and travel by people, we have taken the decision to start passenger ferry services between Nagapattinam in Tamil Nadu and Kankesanturai in Sri Lanka."

"Sri Lanka also has an important place in both India's 'Neighbourhood First' policy and 'SAGAR' vision. Today we shared our views on bilateral, regional and international issues. We believe that the security interests and development of India and Sri Lanka are intertwined. The agreement signed to launch UPI in Sri Lanka, will increase Fintech connectivity," he further stated.

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PM Modi, while talking about the issue of fishermen being faced by the two countries, said,"Today, we also discussed the issues related to the livelihood of fishermen. We agree that we should go ahead on the matter with a humane approach. We also spoke about reconstruction and reconciliation in Sri Lanka. President Wickremesinghe told me about his inclusive approach. We hope that the Sri Lankan Govt will fulfil the aspirations of Tamils and take forward the process for equality, justice and peace. We hope it will fulfil its commitment to the implementation of the 13th Amendment and Provincial Council Elections."

Meanwhile,Sri Lankan President Ranil Wickremesinghe said,"I have congratulated Prime Minister Modi on the great strides India continues to make under his leadership in economic infrastructure and technological progress in ensuring growth and prosperity for the people of India. We believe that India's growth will be beneficial to the neighbourhood and the Indian Ocean region."

"I have also appraised Prime Minister Modi of the extraordinary challenges that Sri Lanka has experienced in economic, social and political terms in the past year and of the reform measures I have spearheaded on a number of fronts in overcoming these challenges. I have conveyed to Prime Minister Modi and to the government and the people of India a profound appreciation for the solidarity and support rendered to Sri Lanka in what was undoubtedly the most challenging period in our modern history," he added.

Before the high-level talks between the two top leaders, Wickremesinghe was called on by India's NSA Ajit Doval and security cooperation between the two nations was discussed.

External Affairs Minister S Jaishankar on Thursday held talks with Wickremesinghe and discussed various bilateral issues.

(With inputs from agencies)

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