1. What is the official currency of Sri Lanka?

The official currency of Sri Lanka is the Sri Lankan rupee (LKR).

2. Are there any restrictions on foreign currency transactions in Sri Lanka?

There are no major restrictions on foreign currency transactions in Sri Lanka. However, the Central Bank of Sri Lanka requires foreign currency transactions over $15,000 to be declared and may request documentation to support the transaction. Additionally, some banks may require customers to provide identification and proof of residence for large foreign currency transactions.

Furthermore, there are limits on the amount of foreign currency that can be taken out of or brought into the country. Travelers entering or leaving the country can only bring a maximum of $15,000 without declaring it. Any additional amounts must be declared and supported with proper documentation.

3. Can foreigners open bank accounts in Sri Lanka?
Yes, foreigners can open personal bank accounts in Sri Lanka as long as they have a valid visa and proof of residence in Sri Lanka. Additionally, non-resident foreigners can also open Non-Resident External (NRE) accounts for specific purposes such as investment, remittances, or savings in Indian rupees.

4. Is there a limit on the amount of money that can be transferred out of Sri Lanka?
There are no limits on the amount of money that can be transferred out of Sri Lanka; however, banks may require customers to provide documentation and information about the source and purpose of the transfer.

5. What is the tax rate for foreign currency exchange in Sri Lanka?
The tax rate for foreign currency exchange in Sri Lanka is 0.05% for all transactions exceeding $20,000 (or equivalent) if done through commercial banks or licensed authorized dealers. For other types of transactions such as foreign loans or dividend payments, different tax rates apply.

It is important to note that individuals should consult with a financial advisor or tax professional for specific tax details related to their personal circumstances.

3. What is the current exchange rate for local currency to US dollar in Sri Lanka?

As of October 2021, the exchange rate for Sri Lankan rupees to US dollars is approximately 1 USD = 203.50 LKR. However, this can fluctuate daily due to market conditions. It is recommended to check with a currency converter or a local bank for the most up-to-date exchange rate.

4. Is it better to use cash or credit cards for purchases in Sri Lanka?

It is generally recommended to use credit cards for purchases in Sri Lanka. They are widely accepted and offer more security and protection against fraud compared to carrying large amounts of cash. However, it is also advisable to carry a small amount of cash for situations where credit card payments may not be accepted or for smaller purchases.

5. Do businesses in Sri Lanka typically accept US dollars or do they prefer local currency?

Businesses in Sri Lanka generally prefer local currency, although some larger establishments such as hotels and tourist shops may accept US dollars. It is always advisable to have some local currency on hand for smaller transactions.

6. Are there any hidden fees or charges when exchanging money in Sri Lanka?

It is possible that there may be hidden fees or charges when exchanging money in Sri Lanka. Some exchange bureaus or banks may charge a commission fee for the service, while others may include a higher exchange rate to make a profit. It is always advisable to research and compare rates from different sources before making an exchange. Additionally, some ATMs may also charge a transaction fee for using foreign cards, so it is best to check with your bank beforehand.

7. Can I use ATMs from my home country bank in Sri Lanka to withdraw money?

It is unlikely that you will be able to use ATMs from your home country bank in Sri Lanka to withdraw money. It is best to check with your bank before you travel to see if they have any partnerships or agreements with banks in Sri Lanka that may allow you to use their ATMs. Otherwise, you may need to rely on local ATMs or exchange currency at a bank or exchange office.

8. Is it necessary to tip service workers and what is the customary amount in Sri Lanka?

It is not necessary to tip service workers in Sri Lanka, but it is appreciated if you are satisfied with the service. The customary amount for tipping varies depending on the type of service provided and your level of satisfaction, but a small amount of 10-15% is considered generous. Expressing your gratitude verbally or with a smile can also be a way to show gratitude and appreciation for their service.

9. Can I purchase traveler’s checks before traveling to Sri Lanka, and are they widely accepted?

1.Yes, you can purchase traveler’s checks before traveling to Sri Lanka. These checks are available for purchase at most banks and foreign exchange offices.

2. Traveler’s checks in major currencies such as US dollars, Euros, and British pounds are widely accepted in Sri Lanka.

3. Traveler’s checks offer a secure and convenient way to carry money while traveling as they can be replaced if lost or stolen.

4. While traveler’s checks are widely accepted, it is always advisable to carry a mix of cash and other forms of payment such as credit/debit cards for a more hassle-free experience.

5. Many large hotels, restaurants, and tourist establishments in Sri Lanka also accept traveler’s checks.

6. It is recommended to keep the traveler’s check receipt with you at all times for verification purposes.

7. Some banks may charge a commission or fee for encashing traveler’s checks, so it is best to inquire beforehand.

8. It is important to write down the serial numbers of your traveler’s checks separately and keep them in a safe place in case they get lost or stolen.

9. While traveler’s checks are widely accepted in Sri Lanka, it is always advisable to carry some local currency for smaller purchases and transactions.

10. Are there any restrictions or limits on bringing foreign currency into or out of Sri Lanka?

There are no specific restrictions or limits on bringing foreign currency into or out of Sri Lanka. However, if the value of the foreign currency exceeds USD 15,000 (or its equivalent in other currencies), it must be declared upon arrival or departure at the airport. Additionally, non-residents are only allowed to take back out of the country up to 50% of the amount they have declared when entering Sri Lanka.

The import and export of Sri Lankan rupees is also restricted to an amount not exceeding Rs. 5,000 per person. Any amounts above this limit must be authorized by the Central Bank of Sri Lanka. It is recommended to check with your embassy or check the official government website for any changes in currency regulations before traveling.

11. Do major hotels and restaurants accept credit cards, and if so, which types are most commonly accepted?

Most major hotels and restaurants in Dubai accept credit cards as a form of payment. Visa and Mastercard are the most commonly accepted types, followed by American Express and Diners Club. Some establishments may also accept other types of credit cards, but it is best to check in advance or have a back-up card just in case.

12. Are there any unique features of the currency used in Sri Lanka, such as coins with different values or special designs?

Yes, there are a few unique features of the currency used in Sri Lanka:

1. Coins with different values: The Sri Lankan currency, rupees, is divided into 100 cents. However, due to inflation and the decreasing value of small denomination coins, cents are not commonly used and most prices are rounded to the nearest rupee.

2. Special commemorative designs: The Central Bank of Sri Lanka regularly issues limited edition coins with special designs to commemorate significant events or historical figures.

3. Polymer banknotes: Sri Lanka was one of the first countries in South Asia to introduce polymer banknotes in 1987. These notes have a longer lifespan compared to paper notes and are more difficult to counterfeit.

4. Multiple languages on banknotes: Sri Lankan banknotes have text in three languages – Sinhala, Tamil, and English – reflecting the country’s diverse linguistic and cultural heritage.

5. Different colors for denominations: Each denomination of Sri Lankan banknotes has a different color scheme, making it easier for people with visual impairments or illiteracy to distinguish between them.

6. Ornamental flora and fauna: Many Sri Lankan banknotes feature images of ornamental flora and fauna native to the country, such as flowering plants and exotic animals like elephants and peacocks.

7. Braille markings: To aid visually impaired individuals, some Sri Lankan banknotes also have raised dots in Braille characters indicating the denomination.

8. Note sizes: The size of each note varies according to its denomination, making it easier for people with visual impairments to differentiate between them.

9. Inscriptions of Buddhist symbols: As Buddhism is the dominant religion in Sri Lanka, some banknotes feature inscriptions of Buddhist symbols such as stupas and lotus flowers.

10. Security features: Like many other modern currencies, Sri Lankan banknotes have several security features such as watermarks, metallic threads, and see-through text to prevent counterfeiting.

11. Unitary structure: Unlike many other currencies, Sri Lankan rupees do not have subunits (e.g., dollars and cents). The smallest denomination is one rupee.

12. The 2000 rupee note: In 2006, Sri Lanka issued a one-time commemorative 2000 rupee note to mark the country’s 50th year of independence. This note is still in circulation but is rarely used for everyday transactions due to its high value.

13. Is haggling acceptable when making purchases, especially in markets and smaller shops?

Yes, haggling is acceptable and commonly practiced when making purchases in markets and smaller shops. It is seen as a normal part of the shopping experience and prices are expected to be negotiated. However, it is important to be respectful and polite when haggling and to avoid being overly aggressive or confrontational.

14. Can I pay for goods and services with a mix of both local currency and US dollars?

It depends on the specific situation and the policies of the business you are dealing with. In some cases, businesses may accept a mix of local currency and US dollars as payment. However, it is always best to ask beforehand to ensure that they will accept this form of payment. Additionally, keep in mind that businesses may offer different exchange rates for each currency, so it may be more beneficial to use one or the other depending on the current rates.

15. What is the most convenient way to exchange money while traveling through different regions of Sri Lanka?

The most convenient way to exchange money while traveling through different regions of Sri Lanka is to use ATM machines or withdraw cash from bank branches. There are many ATMs available in major cities and towns, and bank branches can also be found in most areas. It is recommended to exchange a sufficient amount of money before traveling to remote or rural areas, as ATMs may not be readily accessible in those areas. Credit cards are also widely accepted in larger establishments such as hotels and restaurants. However, it is always advisable to carry some cash for smaller purchases and transactions.

16. Are there alternative forms of payment in addition to cash and credit cards, such as mobile payments or digital wallets in Sri Lanka?

Yes, there are alternative forms of payment available in Sri Lanka such as mobile payments and digital wallets. Some popular options include:

1. eZ Cash: This is a mobile payment service offered by Dialog Axiata, one of the major telecommunication companies in Sri Lanka. It allows users to securely make payments and transfer money through their mobile phones.

2. mCash: Another popular mobile payment service provided by Mobitel, another leading telecommunication company in Sri Lanka. Similar to eZ Cash, it enables users to make payments and transfer money using their mobile phones.

3. Genie: Genie is a digital wallet platform developed by HNB (Habib Bank). It allows users to store money and make online transactions with participating merchants.

4. FriMi: FriMi is a digital wallet service offered by Nations Trust Bank. It allows users to store money, make online transactions, and also offers cashback rewards for certain purchases.

5. PayHere: PayHere is an online payment gateway that facilitates secure online payments for businesses in Sri Lanka. It supports various payment methods such as credit/debit cards, digital wallets, and bank transfers.

6. Credit/debit cards: Most major credit and debit cards are widely accepted at hotels, restaurants, and larger retail stores in Sri Lanka.

It’s always best to check with individual merchants or businesses beforehand to see which forms of payment they accept.

17. Is tipping expected during taxi rides, at hotels, or at other specific locations like spas or salons in Sri Lanka?

Tipping is not expected in Sri Lanka, but it is always appreciated if you feel that the service provided was exceptional. When taking a taxi, rounding up the fare to the nearest rupee is sufficient. Tipping at hotels and spas/salons is not mandatory, but a small tip of 10% can be given if you are satisfied with the service.

18. Are there certain stores where tourists can receive tax refunds on their purchases before leaving Sri Lanka?

Yes, tourists are eligible for a VAT refund on their purchases from specific stores under the VAT Refund Scheme. These stores must be registered under the scheme, and visitors are required to present their passport, return air ticket, and purchase receipts when making a claim. The minimum purchase amount to qualify for a VAT refund is LKR 5,000, and the maximum refund amount is 15% of the total invoice value.

Some popular stores where tourists can receive tax refunds include:

– Odel (Colombo)
– Paradise Road (Colombo)
– Barefoot (Colombo)
– Lakarcade (Colombo)
– Cargills Square (Colombo)
– Heritage Arts And Crafts Gallery (Kandy)
– Selyn (Kandy)

It’s best to inquire at the store before purchasing if they are registered under the VAT Refund Scheme. Additionally, tourists can also visit the Sri Lanka Customs website for a complete list of registered retailers.

19..How should I handle my leftover foreign currency when departing from Sri Lanka, including coins and smaller bills?

1. Exchange it at the airport: The easiest and most convenient way to handle your leftover foreign currency is to exchange it at the airport before you depart from Sri Lanka. Most major airports in Sri Lanka have currency exchange counters where you can convert your foreign currency into Sri Lankan Rupees.

2. Use it for expenses: If you have a small amount of foreign currency, you can use it to pay for any last-minute expenses, such as food or souvenirs at the airport or on your flight.

3. Donate it to charity: Consider donating your leftover foreign currency to a local charity or non-profit organization before departing from Sri Lanka. This is a great way to give back to the community and help those in need.

4. Keep it for future travel: If you plan on returning to Sri Lanka in the future, you can keep your leftover foreign currency for your next trip. However, do check the expiration date on your bills and make sure they will still be valid when you return.

5. Sell it back: Some banks and exchange offices may buy back your unused foreign currency at a lower rate than what you bought it for. This option may not always be available, so be sure to check with different places beforehand.

6. Spend it at duty-free stores: You can also use your leftover foreign currency to purchase duty-free items at the airport before leaving Sri Lanka.

7. Keep coins as souvenirs: If you have any leftover coins that cannot be exchanged, consider keeping them as souvenirs of your trip or giving them away as gifts.

Remember to always check with different banks and exchange offices for their rates and fees before making any transactions. It’s also a good idea to keep track of the current exchange rate to ensure that you are getting a fair deal when exchanging your leftover foreign currency.

20. Is there a limit on the amount of local currency I can withdraw from ATMs in Sri Lanka each day?

Yes, most ATMs in Sri Lanka have a daily withdrawal limit of 40,000 – 50,000 Sri Lankan rupees. However, this limit may vary depending on the bank and the specific ATM. It is best to check with your bank beforehand to know the exact limit for your card.