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
The banking system in Sri Lanka is well-diversified. The Central Bank of Sri Lanka is the regulatory authority of the banking sector. This sector comprises state-owned commercial banks, private domestic banks, foreign banks, development banks, housing banks, and national savings banks.
When sending to a bank in Sri Lanka, your transfer may be deposited directly, or it may pass through intermediary banks before it is credited to the recipient’s account. The latter is normally costly and may take additional days for the money to get to your family.
Thanks to recent development, thousands of Sri Lankan workers in Saudi Arabia can now send money to Sri Lanka through the Commercial Bank of Ceylon, one of the leading banks in the country. This was made possible after the bank entered into partnerships with representatives in Saudi Arabia, such as National Commercial Bank, Arab National Bank, Al Bilad Bank, and Al Rajhi Bank.
International wire transfers typically take between 3 and 5 days to be completed. However, without having a bank account in the sending country, you cannot use this service.
The largest banks per share of remittances in Sri Lanka are Bank of Ceylon (BOC), Peoples Bank (PB), Seylan Bank (SyB), Commercial Bank (CB), Hatton National Bank (HNB), and Sampath Bank (SaB).
In the North and East regions of the country, where inter-ethnic clashes have been rampant, residents have to contend with limited access to formal banking. When sending to these border villages, bank transfers may not be the appropriate way of moving funds.
Online Money Transfer Services
Most of the remittances to Sri Lanka, especially from Asia and the Middle East, are made through online money transfer providers. These sending options give you a better rate, low transaction fees, and faster delivery times.
The providers differ depending on the transfer corridor. For instance, if you are sending from the United Arab Emirates to Sri Lanka, you will find providers such as GCC Exchange, Al Fardan Exchange, and Ezremit, among others.
If you are sending from the United Kingdom, providers such as TorFX, WorldRemit, Small World,Xpress Money, Ria, Fast Cash, and Lyca Remit can be your go-to options.
Most of the providers will require you to open an account with them, pay for your transfer, and then choose a payout option which could be cash pickup or direct bank deposit. A number of money transfer providers have mobile applications on both Android and iOS platforms to enable you to send on the go.
Other big names in this category include Wise, OFX, WorldFirst, TorFX, Xoom, Currencies Direct, and Transfast.
In-Store Money Transfers
Western Union and MoneyGram are two of the most frequently used money transfer operators in this category. In addition to the online transfer option they give you, you can also send money to your family in Sri Lanka through their agency network.
Depending on the country you are sending from, you will find most of these agents in grocery stores, supermarkets, mailbox centers, travel agencies, drug stores, and so forth. For instance, Western Union allows you to send money directly to your recipient’s bank account or to an agent's location near them. With as little as a $4 transfer fee, you can send it to your loved ones conveniently and fast.
Once you sign up for an online account, you choose the payout method and provide the recipient information and how you wish to pay for your transfer. There are several ways you can pay for your transfer. Some providers, such as Xoom, will allow you to pay through a direct bank debit, credit card, or debit card. Others, such as OFX, restrict their payment methods to bank transfers.
Credit cards and debit cards cost a little more, but they ensure funds are available for transfer faster than the other methods.
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
The person sending can choose a bank transfer as the payout method and have the funds directly deposited into the recipient’s account. Depending on the bank you are transferring to, the time of the day, and the day of the week, bank transfers may take 2 to 3 days to get to the recipient.
Cash Pickups
Most money transfer providers, including Western Union, WorldRemit, and MoneyGram, can send directly to a cash pickup location near the recipient.Cash pickups are normally instant.
Home Delivery
You can enjoy home delivery services to receive cash at your door. You will need to provide your address and name to the sender. The time taken for delivery depends on the service you choose and where you live. Also, a transfer fee is required depending on the amount and the currency you wish to receive.
Money Transfer Service
Using specialist transfer providers is arguably the best way to receive money. Balance transfers provide instant processing speeds allowing you to get money within seconds. Also, the lower fees of these services help you save money compared with banks. These companies also offer better FX rates than banks, so you get a better deal for currency conversions. The money transfer industry has fierce competition, which means customers get a great deal in savings and convenience.
Mobile App
Getting funds via a mobile app enables you to be on the move while managing your finances. To download an app for your specialist transfer service or bank, you need to visit Google Play or App Store. You will spend just a few minutes downloading and installing an app. Take the time to check out the user reviews to see what you can expect from the mobile app. Try to find an app with a score of at least 4.0 out of 5 to be worth using.
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
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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.
Can You Send Money To Sri Lanka With A Mobile App?
Mobile apps are a great way to send money to Sri Lanka, and most money transfer services offer them. You can download and install money transfer apps from Google Play or App Store. Inspect the app’s features to determine if international money transfers are supported. Also, read customer reviews to see what experiences others have had. This will clue you in on the strengths and weaknesses of the app.
What’s The Overall Best Way To Send Funds To Sri Lanka?
Wise is the overall best way to send funds online to Sri Lanka. With Wise, you get an ideal balance between cost, ease of use, and time all in one. While Wise does take a day or two to work, it’s a great value given the price and simplicity of the service. For these reasons, Wise is the overall best way to transfer cash online.
What’s The Easiest Way To Transfer Money To Sri Lanka?
The easiest way to send money is also Wise. Wise uses a three-step process that can be learned and repeated easily. All you need to do is tap in how much money you need to send and the destination. After that, you just complete the payment to Wise and the rest is up to them. It should only take a day or two for your money to reach its Sri Lankan destination.
What’s The Cheapest Way To Send Money To Sri Lanka?
The cheapest way to send money online is through Wise. Wise only charges a stated fee. In fact, Wise is one of the very few services that forgoes on hidden currency conversion costs altogether. When you use Wise, you only have to pay them for the ability to complete the transaction.
What’s The Fastest Way To Send Money Online To Sri Lanka?
Ria Money Transfer’s fast option is the fastest way to get your funds. The best part about their fast service is that it is cheaper than much of the slower competition. With Ria Money Transfer’s fast option, your money will arrive in Sri Lanka within a matter of minutes.
The downsides to Ria Money Transfer are that the service is not the easiest option to use, and the faster option is not the cheapest. That being said, Ria Money Transfer’s fast option is a great balance between cost and speed. Again, many of the slower money transfer services cast far more than Ria Money Transfer.
Current Exchange Rates For Sri Lanka
The current exchange rate for the Sri Lankan Rupee (LKR) is 368.720469 LKR per American Dollar (USD), as of the time this was written. During the last 90 days, the LKR reached a high of 368.9631 LKR per USD, and a low of 354.6908 LKR per USD. The average exchange rate over the last 90 days was 362.3592 LKR per USD.
The average volatility rate of the LKR against the USD was 0.26% over the last 90 days. This is a normal volatility rate, and the LKR has been stabilizing in recent months. Going forward, you can reasonably expect moderate fluctuations to continue, barring any unforeseen circumstances.
How we compare?
What do we mean by the top provider?
The top provider is the money transfer service that we believe is the most suitable for the country you’re sending money to. In order to keep our service free we factor in the commercial agreements we have with partners into this ranking.
How do we choose providers to display?
We make sure that each table displays the most relevant brands to the country you are sending money to and from. We consider many factors when choosing the providers to display in the table. All of the providers we display are fully regulated to provide money transfer services in the jurisdiction you are searching, relevant regulatory authorities are the FCA, ASIC, Fincen, FINTRAC & AMF. Alongside being regulated the services are manually checked by our team for both quality of service and online trust from such platforms like Trustpilot and Google reviews. We base our rankings primarily on the quality of the service provided, the benefit to the consumer and to keep our service free – the commercial agreements we have.
How do we order our comparisons?
We are affiliated with some of the partners displayed in the tables. However, the order of the providers is based on the quality of the service for the particular country corridor followed by the commercial agreement in place. You don’t pay any extra and the deal you get isn’t affected by our commercial agreement with the money transfer provider. We may receive a commission when you click through to a listing or when you make a transaction. We aim to find the balance between the quality of the service, customer satisfaction and the commercial agreements we have, and continue comparing services in a transparent way. If you have any questions about our listings, please don’t hesitate to email us at contact@moneytransfers.com
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
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