Which is the Best Currency to Take to Sri Lanka from India?

Introduction

If you plan your trip from India to Sri Lanka, it is important to know which currency to carry and which payment methods are the most convenient. Though Sri Lanka has its currency, taking the right foreign currency saves you from complications and different fees that you may have to face. In this article, we will discuss what to take, how to exchange, and the various alternatives available in Sri Lanka.

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Currency of Sri Lanka

The official currency in Sri Lanka is the Sri Lankan Rupee (LKR), which is abbreviated as "රු" or "Rs." One Sri Lankan Rupee is divided into 100 cents. Banknotes are available in denominations like 20, 50, 100, 500, 1000, 2000, and 5000 rupees. Coins are found in smaller denominations too. Most of your transactions in local shop trades, transport, and eating places will be in LKR. Therefore, having some local currency is essential for smooth day-to-day spending.

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Best Currency to Carry to Sri Lanka

The most commonly found foreign currencies in Sri Lanka are USD and EUR. You will find it relatively easy to exchange these at airports, banks, and currency exchange bureaus all over the country. Indian Rupees (INR) are not as popular in Sri Lanka, and you may find it challenging to get good exchange rates for INR compared to USD or EUR.

If you decide to carry Indian rupees (INR), be aware that they may not be accepted everywhere. On the other hand, USD and EUR are easily converted at better rates in authorized money changers and banks. To have an easy time, it is advisable to bring either USD or EUR. Furthermore, bringing some small amounts in USD will help with tips and initial expenses at the airport until you can convert them for LKR.

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How to convert INR to LKR

Here are the ways through which you can exchange your Indian Rupees for Sri Lankan Rupees:

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1. At Airports

‍ All major airports in India and Sri Lanka have bureaus that offer a facility for exchanging INR for LKR. It should be noted that airport prices are generally unfavorable, with additional commissions and taxes charged.

2. Authorized Exchange Centers and Banks

Once you land in Sri Lanka, you can change your currency at banks or authorized money exchangers found in cities like Colombo, Kandy, and Galle. You should be able to get a better rate than those charged at the airport counters. They are open from Monday to Friday.

3. ATMs

ATMs are a convenient option to withdraw cash directly in LKR using your international debit or credit card. Many ATMs are connected to global networks such as Visa, Mastercard, and Maestro. Be aware of foreign transaction fees and ATM charges, which could vary depending on your bank.

4. Online Currency Exchange Services

‍You may even order LKR online and receive the money ready in advance for your trip. It's a very convenient process, and you can also secure a good exchange rate; it may be better than the usual rates at physical counters.

5. Other Ways to Pay in Sri Lanka

Apart from carrying cash, there are other reliable ways to make payments during your trip to Sri Lanka:

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Forex Card

The best way of paying is by a Forex card when travelling in Sri Lanka. You can load your card with US dollars, and when you are making payments in Sri Lanka, each transaction seamlessly converts into Sri Lankan rupees in real time.

Pros: Whether you are settling restaurant bills, booking hotels, shopping for souvenirs, or indulging in any leisure activities, a Forex Card will make every transaction easier and much more secure.
Cons: Forex cards do have associated fees—though these tend to be less than those charged by debit and credit cards.

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UPI Payments

Many business places in Sri Lanka now accept UPI. Just turn on 'UPI International' in your GPay or PayTM app and let them hook up to your Indian bank account!

Pros: Scan the QR code while paying for something. The amount to be paid can be in INR as well as in LKR. The same amount deducted from the Indian account will get remitted in the form of Lankan Rupees to Sri Lanka.
Cons: There is a bank transfer fee charged on the UPI transactions done in Sri Lanka. Around 3% are charged by banks. The exchange rate of the banks is also very high compared to the money transfer agents like ExTravelMoney.

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Debit Card

Debit cards are another great option. Most Sri Lankan ATMs accept Indian debit cards, especially those that allow international transactions.

Pros: Well, if you need to get extra cash, your debit card allows you to use the balance in your Indian bank account for easy access.
Cons: However, debit cards have higher transaction fees and GST, which may add up.

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Credit Card

Credit cards are excellent for handling large expenses. However, keep in mind that higher charges could arise rapidly, perhaps leaving you with a big bill at the end of your trip.

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Conclusion

When traveling from India to Sri Lanka, USD or EUR are the best currencies that can be carried as they are easily exchangeable and with good rates. INR may also be exchanged, but this is quite rare and not as beneficial as possible. Other than cash, you may use Forex cards or debit/credit cards for easy transactions. Get your currency exchange done well in advance and get currency exchange through authorized services, so while carrying both cash and cards, you'd be good to go for a hassle-free experience throughout Sri Lanka.

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