A Tourist’s Guide to Money Exchange in Sri Lanka

Understanding the Sri Lankan Rupee (LKR)

The official currency of Sri Lanka is the Sri Lankan Rupee, abbreviated as LKR. It’s available in denominations of 20, 50, 100, 500, 1,000, 2,000, and 5,000 rupees. Coins come in smaller denominations, such as 1, 2, 5, and 10 rupees. It’s advisable to carry smaller denominations for day-to-day transactions as larger notes can sometimes be difficult to break, especially in rural areas.

Where to Exchange Money in Sri Lanka

Airports: Upon arrival, you can exchange your foreign currency at the airport. Colombo’s Bandaranaike International Airport has several banks and currency exchange counters open 24/7. While the convenience is unmatched, airport exchange rates might not be as favorable as other options.

Banks: Major banks in Sri Lanka, such as Commercial Bank, Sampath Bank, and Hatton National Bank, offer currency exchange services. Banks typically provide better rates than airports and are a safe option. They are usually open from Monday to Friday, from 9:00 AM to 3:00 PM. However, they may be closed on public holidays, so plan accordingly.

Authorized Money Changers: You’ll find authorized money changers in major cities and tourist hotspots like Colombo, Kandy, and Galle. They often offer competitive exchange rates. It’s important to ensure that you exchange your money at a licensed outlet to avoid any fraudulent transactions.

Hotels: Some hotels offer currency exchange services, which can be convenient, especially if you’re staying in more remote areas. However, hotel exchange rates are often less favorable compared to banks and authorized money changers.

Using ATMs in Sri Lanka

ATMs are widely available in cities and towns across Sri Lanka, and they offer a convenient way to withdraw cash in LKR. Most ATMs accept international debit and credit cards, including Visa, MasterCard, and Maestro. Be aware of any international transaction fees your bank may charge for withdrawals abroad. It’s also a good idea to notify your bank of your travel plans to avoid any issues with card usage.

Credit Cards and Digital Payments

Credit cards are widely accepted in hotels, restaurants, and larger stores, especially in urban areas and tourist destinations. Visa and MasterCard are the most commonly accepted, though American Express is also accepted at some places. It’s advisable to carry some cash for smaller establishments or when traveling to more rural areas where card payments may not be possible.

Sri Lanka is also gradually embracing digital payment methods. Mobile wallets and payment apps like FriMi and mCash are gaining popularity, but these services are primarily used by locals.

Exchange Rate Tips

Monitor Exchange Rates: Keep an eye on the exchange rates before you travel to get an idea of the current rate. Websites and apps like XE.com provide real-time currency exchange rates.

Avoid Black Market Exchange: Always use official channels for currency exchange. The black market might offer tempting rates, but it comes with risks, including counterfeit money and scams.

Keep Your Receipts: When exchanging money, it’s a good practice to keep your receipts. They may be required if you wish to convert any leftover LKR back into your original currency before leaving Sri Lanka.

Tipping and Bargaining

Tipping is appreciated in Sri Lanka, especially for services like dining and taxi rides. A 10% tip is generally acceptable. When shopping at markets or using local services, bargaining is common and can help you secure a better deal, especially in tourist areas.

Final Tips

Carry Some Cash: While cards are widely accepted, it’s wise to have some cash on hand, especially when visiting rural areas or small establishments.

Safety: Keep your money and valuables safe, especially in crowded places. Use a money belt or hidden pouch to carry large amounts of cash.

Currency Declaration: If you’re bringing more than $15,000 USD (or equivalent) into Sri Lanka, it must be declared upon arrival.