Currency In Sri Lanka known as "Sri Lankan Rupee"
Currency in Sri Lanka
The Sri Lankan Rupee (LKR or Rs) is a floating currency, which means the exchange rate is determined by market forces. However, the Sri Lankan authorities sometimes intervene in order to keep the exchange rate from fluctuating too much.
One Rupee (Rs1) is made up of 100 cents. There are a total of six coins and eight banknotes currently in circulation. The coins are: 25 cents, 50 cents, Rs1, Rs2, Rs5 and Rs10. The notes are: Rs10, Rs20, Rs50, Rs100, Rs500, Rs1000, Rs2000 and Rs5000.
Outside of hotels and big shops, change can be hard to come by in Sri Lanka. Make sure you have enough notes in lower denominations (Rs20 to Rs500), especially if you plan to shop at markets or in rural areas.
Exchanging currency in Sri Lanka
Airport currency exchange kiosks and many hotels offer currency exchange services. However, the rates on offer are usually unfavourable, and you may also be charged high fees. You’re better off using a currency exchange service or making an ATM withdrawal.
Using travellers’ cheques in Sri Lanka
Travellers’ cheques rarely have attractive rates, and cashing them in Sri Lanka can be a challenge. Many banks have rather short opening hours - usually Mondays to Fridays from 9:00am to 1:00pm - and most don’t accept them.
For these reasons, travellers’ cheques are best avoided. You’re often much better off exchanging cash or using an ATM.
Using credit and debit cards in Sri Lanka
Credit and debit cards are widely accepted in Sri Lanka, even in smaller towns. Visa and MasterCard are the most commonly accepted cards. AmEx is also accepted, but to a lesser extent. That said, it’s still a good idea to carry some cash with you just in case.
Some businesses may try to apply a surcharge if you pay by card. This is illegal.
You may also come across establishments that display their prices in US Dollars, especially in more touristy areas. While this is convenient, you should always make sure the transaction is performed in the local currency.
In Sri Lanka, it’s illegal to perform a card transaction in a foreign currency. In addition, if you choose to be charged in your home currency, the exchange rate will be determined using Dynamic Currency Conversion, not the mid-market rate. This almost always results in an unfavourable exchange rate.
Remember to let your bank know the dates when you’ll be abroad. If you don’t, it might think your Sri Lankan transactions are fraudulent, which may result in your card being frozen for security reasons.