Compare the best ways to send money to Sri Lanka

The exchange rate determines how much LKR the recipient will receive.

For instance, in the past 7 days average exchange rate between the US Dollar and the Sri Lank Rupee was 308.4473 LKR.

Since USD - LKR exchange rates fluctuate based on market conditions, waiting a few days can result in a better rate and more LKR for your recipient.

If you urgently need the money in Sri Lanka, we recommend using Wise, which offers the best LKR exchange rates.

The cheapest way to fund your transfer to Sri Lanka is by using a bank transfer with Remitly, which is 0.39% cheaper than the next best option.

How you pay for your transfer impacts the cost, speed, and the amount of LKR received.

Based on a $3,000 transfer to Sri Lanka using our live data, the options you have are:

• A bank transfer with Remitly will cost you $0 in fees and a -0.31% markup

• Debit card transfer with Remitly costs $0 with -0.31% markup

We recommend not using credit card when sending money to Sri Lanka, as they tend to be the most expensive.

Credit card transfers tend to add cash advance fees and might have higher interest rates on LKR.

Whenever possible, avoid sending LKR over the SWIFT network. Despite the name, LKR transfers over SWIFT are slower and come with higher fees.

Money transfer companies will often have minimum and maximum limits on how much LKR you can send.

Often, the amount will also impact the fees and the LKR rate you get.

For example, we found Wise to be the best option for sending large amounts to Sri Lanka.

There might also be government-imposed restrictions, commercial restrictions, and many more.

This is why it’s important to compare your transfer options to Sri Lanka.

The speed of transferring LKR to Sri Lanka depends on several factors, including the amount being sent, the timing of the transfer, and the chosen payment method.

Usually, the quicker you need your LKR, the more it will cost you in fees.

For example, consider a transfer of $3,000 from the US to Sri Lanka:

• Fastest provider: Among 11 companies servicing Sri Lanka, Wise consistently offers the quickest delivery times across all deposit methods.

• Bank or debit card deposits: Services like Wise for bank account deposits and Xe for card deposits provide almost instant and cost-effective LKR transfers. Fees are approximately $21.51 for bank deposits and $0 for debit card deposits, with a minimal 0.38% markup.

• Credit card deposits are another option, but be mindful of potential cash advance fees.

• Urgent transfers: For the fastest possible transfers, we recommend opting for cash pickup services through providers like Western Union or Ria Money.

Avoid making LKR transfers over SWIFT

SWIFT is slower for LKR transfers due to the involvement of intermediary banks in Sri Lanka, so it’s best to avoid it if speed is your priority.

For LKR transfers, you have the following options:

Money transfer companies

You can send Sri Lank Rupees via an FX broker (a managed service) or via an online-only company (self-managed).

According to our analysis, we found that Wise is the overall best way to transfer money to Sri Lanka.

App

Most money transfer services to Sri Lanka offer mobile apps, which often provide better LKR exchange rates.

You can check our guide on the best money transfer apps to find one that fits your needs.

In-person

Cash transfers to Sri Lanka can be made in person through services like Ria Money Transfers or Western Union.

Cash transfers are almost always instant but require the recipient to physically visit the nearest agent to collect LKR.

Bank transfers

We suggest you not to use your bank to wire money to LK because of the fees but rather use it to fund your LKR transfer.

There are several ways to receive money in Sri Lanka, including direct bank deposits, cash pickups, home deliveries, and mobile wallets.

Here are your options:

• Direct bank deposits: to deposit money into the recipient's account in Sri Lanka, we recommend using Remitly.

• Cash pickup: if you need immediate access to cash in Sri Lanka, consider using cash pickup, but check availability.

• Mobile wallets: you can receive LKR directly into your digital wallet like PayPal, but they come with limitations and higher costs compared to using Remitly.

In most cases, LKR will arrive without any involvement from the recipient.

However, if you’re sending Sri Lank Rupee as cash, or in large amounts, the receiver might need the following*:

• Valid forms of ID: such as passport, or driver’s license.

• Sender's information: the full name and address.

• Transfer details: the amount of LKR to be received.

• Transfer confirmation number: the sender should give it to the recipient.

• SWIFT code / IBAN: sometimes you may need to include IBAN and/or the SWIFT code.

*The exact documents you need might vary by the company you use.

For larger Sri Lank Rupee transfers, money transfer companies may ask for a source of funds and proof of address. This is done in accordance with AML policies.

If you’re making a large transfer to Sri Lanka, we recommend using Wise.

There might be tax implications and government-imposed limits when sending Sri Lank Rupees to Sri Lanka.

Some LKR transfers may be subject to various taxes, including gift tax and commercial tax.

Even if there are no limits or taxation involved, certain LKR transfers need to be reported to the tax authorities in Sri Lanka.

When in doubt, please contact a tax professional in Sri Lanka or in your country.