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Best Ways to Send Money to Sri Lanka

Enjoy fast, low cost transfers, the best exchange rates, and strong customer support on money transfers to Sri Lanka.

Read on for quick reviews, expert insights, and all you need to know about money transfers to Sri Lanka.

Jonathan Merry
Author 
Jonathan Merry
13 minutes
February 5th, 2024
Disclosure
Best Overall
9.2
Wise

Wise is the top rated money transfer provider that usually appears in our search results to Sri Lanka.

Compare rates and fees for sending money to Sri Lanka

There are multiple ways to easily send and receive money in Sri Lanka but these will largely depend on the provider you decide to use.

How to send money to Sri Lanka

Whether you are sending money to your family in Colombo, Kalutara, Gampaha, districts in the northern and eastern regions, or other areas in Sri Lanka, your target should be to find the cheapest provider that will help you save on fees and exchange rates. Safety of transfers, sending limits, and receiving limits are major concerns that you need to look at.

There are various ways you can send money to Sri Lanka. You can use international wire transfers, online money transfer services, and in-store sending options.

International Wire Transfers
Online Money Transfer Services
In-Store Money Transfers

What is Needed to Send Money to Sri Lanka

When sending money to Sri Lanka, you will be asked for specific information by the providers so that they can identify you and the recipient. Most of this information will be captured when signing up for the account. Regulatory bodies such as FCA and FINTRAC may require certain information to be captured by money transfer service providers. Some of the information you will need to provide include:

  • A government-issued-ID document. If you are sending from the United States, you can use a passport, social security card, or driving license.

  • The recipient’s name as it appears on their official documents

  • The address and phone number of the recipient

  • If you are sending directly to a bank account, the recipient bank details (bank name, branch, and account number)

  • The amount of money you want to send

Depending on the country you are sending from, you may be asked to disclose the source and purpose of the money.

How to receive money in Sri Lanka

There are various ways you can receive money in Sri Lanka. This will depend on the mode of transfer used. The following are the two main ways you can receive money in this country.

Direct Bank Deposits
Cash Pickups
Home Delivery
Money Transfer Service
Mobile App

What is Required to Receive Money in Sri Lanka?

When the money gets to Sri Lanka, you will be notified through SMS, email, or both. To collect the money, you will need the following information and documents.

  • Government-issued identification card

  • Transaction reference number – Some providers send this out to the recipients through email or SMS. If you don’t have it, ask the sender to give it to you.

  • Some providers may ask you for additional disclosures depending on the amount, frequency, and country of origin.

Understanding the Economy of Sri Lanka

Sri Lanka can be described as a free-market economy. They have a GDP of $80.7 billion, ranked 113th in the world. In recent years its growth has slowed down. The pandemic is partly responsible for this slowdown.

The national currency is the Sri Lankan rupee, and at the time of writing, 1 RS is equal to 0.013 USD. Furthermore, their most significant sectors include agriculture, textiles, tourism, telecommunications, and petroleum refining. The top export partners include the USA, UK, and India.

Sri Lanka has a robust financial sector, which means that money transfer companies are offered to locals. Therefore, you can enjoy sending and receiving money at low rates and fast transfer times. Read this guide to the end to discover industry-leading companies.

Common Reasons for Sending Money to Sri Lanka

Looking at the transfer narrations given to the various money transfer providers, the following reasons stand out as the most common for people remitting money to Sri Lanka.

Emergencies

Instances of floods, earthquakes, and other disasters receive an overwhelming response in terms of financial assistance from the diaspora. Even at a family level, emergencies do arise, such as sicknesses and deaths, which require diaspora Sri Lankans to send in their support.

Household Expenses

To support family income, Sri Lankans abroad send money regularly, mostly on month ends. This takes care of the day-to-day living expenses.

Education

Some Sri Lankans send money home for tuition fees for their siblings or direct family members.

Investments

Investing back home remains one of the most significant pull factors for Sri Lankans in the diaspora. Most of the investments are in real estate, the stock market, and entrepreneurial ventures.

Social Contributions

During festivals such as Vesak Poya, Poson Poya Festival, and Sinhala and Tamil New Year, the size and frequency of remittances to Sri Lanka usually increase.

Why Send Money With a Money Transfer Service?

Money transfer services have proved to be convenient, fast, and simple for people sending to Sri Lanka and other countries. Below are some of the reasons why you should try out a money transfer service provider for your next transfer.

Exchange Rates

Money transfer providers use different business models with respect to exchange rates. Some providers such as WorlfRemit add a margin on the exchange rate while others OFX transfer at the mid-market rate. All in all, money transfer operators give you more Sri Lankan rupees for a unit of your sending currency.

Multi-Currency Support

Irrespective of the country you are sending to, most providers will transfer your funds in your local currency. TransferWise supports the Sri Lankan rupee, so is Xoom and Western Union 130+ currencies. This support may not readily available when sending through the banking system. You may have to send in dollars or pounds and convert when the funds get to Sri Lanka.

Speed of Transfer

Delivery times are important especially when sending money in response to emergencies or pressing needs. If you pay for your transfer using a debit or credit card and opt for cash pickup as a payout option, your transfer can be completed instantly. Bank transfers may take 2 to 3 days to get to the recipient.

Ease of Set Up

Signing up for an account, paying for your transfer, and sending funds on money transfer service provider’s platforms is very quick and simple. WorldRemit takes about 10 minutes to set up and verify your details in readiness for transfers to Sri Lanka.

Geographical Spread

Money service providers in Sri Lanka allow for cash pick up from stores, supermarkets and petrol stations in different parts of the country. A good example is Xoom which has 2382 locations in Sri Lanka. Banks have also partnered with these providers to use their branches as transaction points. This has extended the geographical reach.

Safety

With top of the class technologies such as 3D Secure and other digital authentications, parties are assured of safety and peace of mind when sending money online. Cybercrime is a real risk, but emerging technologies are also hard to beat.

Things to Consider When Sending Money to Sri Lanka

There are several factors that you need to bear in mind when sending money to your family and friends in Sri Lanka.

  • Currency Regime: Sri Lanka has a floating currency regime where market forces determine the value of the Sri Lankan rupee. However, depending on the turn of macroeconomic events, the government may intervene to stabilize the currency. Such interventions may affect the value of the amounts you transfer.

  • Taxation: Generally, remittance up to $10,000 from Sri Lankan expatriates is not considered taxable income. However, any proceeds from investments of these remittances in Sri Lanka are taxed at the individual or corporate rate, depending on the incorporation status of the business.

  • Non-Resident Foreign Currency (NRFC) Accounts: This account facility is targeted at Sri Lankans in the diaspora to help them manage currency instabilities, low-interest rates, and runaway inflation. The good thing with NRFCs is that they allow you to maintain your account in multiple currencies, and you can get loans against these deposits.

Therefore, if you want to send money to Sri Lanka, you need to understand the remittance market, the players involved, what’s needed for you to send and receive money, and the factors to bear in mind when sending.

Top 3 Companies for Sending Money to Sri Lanka

Choosing the best money transfer service can be daunting with a large number of choices out there. This section offers advice on the top 3 companies you should register with to send money to Sri Lanka.

TorFX

TorFX offers competitive exchange rates across 60 currencies. They provide a decent service that previous users highly rate.

TorFX doesn’t charge any fixed fees. Also, the transactions are fast for cross-border payments, which is perfect for when the recipient has a financial emergency.

Wise

Wise is one of the best money transfer companies available for transferring funds to Sri Lanka. They charge low fees and match the mid-market rate for many currency pairs. Therefore, you are saving money compared to most banks and specialist transfer providers. Wise does a great job of being transparent at every step of the money transfer process.

The mobile app provided by Wise is secure and has a clean user interface. Therefore, you can begin sending money to Sri Lanka shortly after downloading the app. Wise is regulated by the Financial Conduct Authority, which means that you can trust the company with your money.

WorldRemit

Sending money to Sri Lanka with WorldRemit is a fast and cost-effective process that is available within minutes of registering for a new account. The company provides a range of payment and cash-out options, which offers an excellent amount of flexibility. Also, the fees are low, so you are getting a good deal when sending money abroad.

WorldRemit offers excellent customer service that responds within seconds via live chat. Also, multiple languages are offered, which is great for customers where English is not their native language.

The USD to LKR exchange rate

Mid-market Rate
1
= 304.645905 LKR
Mid-market rate at: 14:09 UTC
USD/LKR Median: 305.580731 Low: 304.645905 High: 306.580289
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Looking to Send Money Somewhere Else?

Sending money anywhere else in the world is as easy as sending money to the Sri Lanka. If you're looking to send money to another country, here is the list of the most popular destinations.

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Contributors

Jonathan Merry
Jonathan is the founder and editor of MoneyTransfers.com. Jonathan is highly experienced in the currency transfer market, having previously worked in the FX trading industry, alongside being an avid traveller. Using his knowledge he identified a need for transparency and further education to help people save money on their money transfers, leading to the creation of MoneyTransfers.com