In this guide to banking, money, and currency in Sri Lanka, you’ll get our best travel money tips, from finding the best exchange rates to breaking down the average prices of local goods and services. Read on for all the details on navigating the local currency and banking system in Sri Lanka.
While traveling in Sri Lanka, the currency you’ll use for goods and services is the Sri Lankan rupee. The official currency of this island nation, the Sri Lankan rupee is visually stunning, with lovely colors and images of local birds, landmarks, and important people.
Here’s everything you need to know about the Sri Lankan rupee and local customs involving money, from where to get currency to tipping culture.
- Travel Money in Sri Lanka: Everything You Need to Know
- Sri Lankan Rupee Basics
- How to Get Sri Lankan Rupees
- Cost of Goods and Living in Sri Lanka
- Importing and Exporting Sri Lankan Rupees
- Counterfeit Sri Lankan Rupees
- Using US Dollars in Sri Lanka
- Using Credit Cards in Sri Lanka
- Cultural Sensitivities Around Money
- Preparing for Your Sri Lanka Trip
Travel Money in Sri Lanka: Everything You Need to Know
Sri Lankan Rupee Basics
- Currency Code: LKR
- Symbols: /Rs. (English), ரூ (Tamil), රු (Sinhala)
- Forms: Banknotes, coins
- Division: 1 Re. = 100 cents
Denominations
Sri Lankan rupees are available in two physical forms: banknotes and coins.
- Banknote denominations:20, 50, 100, 500, 1,000, 5,000
- Coin denominations: 1, Rs.2, 5, 10, 20
Sri Lankan Rupee Exchange Rates
It’s recommended to compare rates and fees at different banks and currency-exchange offices to ensure you get the best exchange rate.
The current exchange rate for USD to LKR is: US$1.00 = Rs.320.03, though it constantly fluctuates.
Because they are subject to change, it’s essential to check the rates before making any currency exchanges. Use an exchange rate calculator to check the current exchange rate, both before and during your visit, to better track your spending. It’s also recommended to compare rates and fees at different banks and money changers to ensure you get the best value.
How to Get Sri Lankan Rupees
Since Sri Lankan rupees aren’t widely circulated, it’s unlikely that many currency exchanges in the United States or at major international airports will have them available. It’s easiest to get LKR once you arrive. Most international travelers arrive in Sri Lanka at the Colombo Airport, which has official currency exchanges and ATMs.
The best way to get the national currency is from money exchanges and ATMs. Some hotels can exchange your USD for LKR, but they’ll likely charge hefty fees and offer an unfavorable exchange rate, so it’s best to avoid this option.
Currency Exchanges
Currency or money exchanges are among the most reliable and trusted places to get Sri Lankan rupees. You’ll find these in airports and major cities. If you’re unsure about where you can safely exchange currency, use this list of approved money changers around Colombo from the Department of Foreign Exchange.
Cash Advances at ATMs
Another fast, easy, and trusted way to get Sri Lanka currency is from an ATM. Local ATMs are readily available in major cities, but it’s best to stock up on cash before heading to rural or less populated areas. Not all ATMs will accept foreign debit cards, but you can withdraw LKR from the following Sri Lankan banks: National Bank, Sampath, Hatton, Commercial Bank, HSBC, and Standard Chartered Bank.
It’s best to only take out money in busy, well-populated areas. Practice common sense and be aware of your surroundings when making ATM withdrawals to make sure someone isn’t watching you, and examine the machine for card readers that can capture your debit card data.
It’s also smart to check with your bank regarding hidden fees (such as foreign transaction fees and international ATM fees) before you leave.
Exchanging Currency at a Local Bank
If you don’t feel comfortable using currency exchanges or ATMs to withdraw rupees, some banks, including the People’s Bank, Commercial Bank, Sampath Bank, BOC Bank, and Hatton, offer money exchange.
Cost of Goods and Living in Sri Lanka
With such a favorable USD to LKR exchange rate, American dollars go a long way in Sri Lanka. US travelers will get a lot of bang for their buck here, making it a fantastic destination for both budget travel and high-end trips that don’t break the bank.
Here are the average costs of some expenses you may have as a traveler:
- Average daily expenditure: 6,145 for a budget trip; Rs.15,360 for a high-end excursion
- Bus ride: 40
- Uber:50
- Overnight Trains:230
- Three-star hotel in city center:6,145 to Rs.9,215 per night
- Meals: 3,070 to Rs.4,610 for a mid-range meal; Rs.7,680 for higher-end dining
Importing and Exporting Sri Lankan Rupees
It’s illegal to bring more than Rs. 5,000 into the country without an exchange receipt or declaring it. When leaving the country, you can only take up to Rs. 20,000 without an exchange receipt or declaration.
If you’re bringing more than US$15,000 in cash into the country, you’ll need to declare it upon entry.
Counterfeit Sri Lankan Rupees
Counterfeit money does circulate widely through the Sri Lankan economy, so it’s important to be vigilant and careful with your money. Only exchange or withdraw cash from official currency exchanges and bank ATMs. The risk of accidentally acquiring counterfeit LKR is greater with high-denomination notes, so you can avoid this by taking out bigger amounts of smaller bills.
There are several ways you can tell if your Sri Lankan rupees are counterfeit or not:
- Feel: Official LKR is printed on roughly textured cotton pulp, while counterfeit bills are lower quality.
- Watermark: Check the note against the light for a watermark (it’s usually on the bottom left and a mirror image of the bird on the right-hand side of the note).
- Raised prints: Official Sri Lanka rupee notes will have raised intaglio print, while counterfeit notes will not.
- See-through images: Hold the note against the light to check for see-through images.
- Security thread: Hold the note against the light to check for a thin, black vertical line
If you suspect you’re in possession of counterfeit money, keep it and go to the nearest police station to report it. There you’ll be asked to provide a description of the person you acquired the money from as well as currency note details. You can also report any counterfeit notes to the Currency Counterfeit Bureau of the Sri Lankan government.
Using US Dollars in Sri Lanka
Although some hotels, restaurants, and stores in major tourist areas may accept USD, it’s not widely accepted throughout the country. The same is true for other major currencies, like Australian dollars and British pounds. It’s best to avoid using foreign currency and only use LKR when paying in cash.
Using Credit Cards in Sri Lanka
If you prefer to pay with card instead of cash, credit cards are widely accepted around Sri Lanka. In tourist sites and major cities, like Colombo, plus many towns, you can pay for things like restaurant bills, hotels, and other services using your credit or debit card. Visa and Mastercard are among the most commonly accepted cards, and contactless payment options are becoming more widely available as well.
It’s important to know that credit card fraud is a widespread issue. Because of this, it’s best to pay in cash as much as possible. You’ll want to carry plenty of local banknotes on you, especially when traveling in rural areas or visiting non-touristy establishments, like markets. You’ll also need to carry cash for things like cabs, casual shopping, street food, and tipping drivers and guides for their service.
Traveler’s checks can be cashed at Sri Lankan banks, but as they aren’t as widely used anymore, you may need to wait a long time for the transaction to be approved. For that reason, it’s best to avoid using traveler’s checks and stick with cash and cards.
However, it’s important to note that it’s illegal to make card transactions in a foreign currency. When paying with a card, always specify that you’re paying with Sri Lankan rupees.
Credit Card Fees
Before traveling to Sri Lanka, remember to inform your credit-card company where and for how long you’ll be abroad. That way your transactions won’t be marked as fraudulent, which risks you losing access to your cards while traveling.
If you opt for a cash advance, you may be subject to foreign transaction fees or currency conversion fees. Out-of-network ATM cash withdrawals can also incur a service charge.
Cultural Sensitivities Around Money
As a traveler in Sri Lanka, here are some customs and points of etiquette you should know.
Tipping Etiquette in Sri Lanka
Tipping is customary, welcome, and appreciated in Sri Lanka, as it’s a nice supplement to low wages. In restaurants, you should tip waiters an additional 10%. You don’t need to tip your taxi or auto rickshaw driver, but it’s always appreciated; usually you can just round up the fare.
It’s also customary to tip hospitality industry workers like hotel staff, drivers, chauffeurs, and guides. For hotel staff, Rs.5 to Rs.10 per day is appropriate; for guides, you can tip an additional Rs.1,000 to Rs.1,500 per hour or 10% of the tour fee. For drivers, between Rs.3,500 and Rs.4,500 is a good amount.
Bargaining and Haggling
As with many other countries in Southeast Asia, bargaining and haggling are widely practiced in Sri Lankan society. As a traveler, you may get the opportunity to try it yourself when shopping in local markets or negotiating auto rickshaw fares. Here are some tips on how to be a good and respectful haggler:
- So you don’t aim too high or low and risk offending the proprietor, research some common prices and rates or ask your guide or hotel concierge for the going rate of basic items.
- Start the exchange with a smile and friendly rapport. Throwing in some Tamil or Sinhala words is a good way to spark conversation.
- Use walking away as a negotiating tactic, as the seller will likely go down to your price.
- Have fun and don’t take the process too seriously. This is their livelihood, so it’s ok to overpay sometimes without feeling ripped off.
Haggling is a fun way to shop and interact with the locals while in Sri Lanka, so don’t take it too seriously. Be respectful, do your research, and know your limits.
Preparing for Your Sri Lanka Trip
Obtaining a visa is an essential part of planning your trip. At Entriva, we can easily and efficiently help you with every aspect of getting a Sri Lanka visa. Start your visa application process.
For more information on other aspects of travel to Sri Lanka, including travel restrictions, local laws, and health and safety, visit our Sri Lanka content hub.