The Sri Lankan Rupee (LKR) is divided into 100 cents. Currency notes are in denominations of Rs.10/, Rs. 20/, Rs. 50/, Rs. 100/, Rs. 200/, Rs. 500/, Rs. 1,000/ and Rs. 2,000/.

Coins are found in denominations of 5 cents, 10 cents, 25 cents, 50 cents, 1 Rupee, 2 Rupees, 5  Rupees, and 10 Rupees.

All the major currencies, like US Dollar, Pound Sterling and Euro can be freely exchanged in Colombo.

The Indian Rupee is stronger than the local currency. 1 Indian Rupee (INR) is equivalent to 2.4 Sri Lankan Rupee (LRK).

One can exchange foreign currency at the airport, which has many exchange counters that are open throughout the day. The exchange rates at the airport are usually the best. Money exchangers can also be found in the Colombo city centre, close to the Fort area. However, they do not offer very good exchange rates.

ATMs are available at the airport. Banks may deduct some service charges for withdrawing money from an ATM. ATMs are also available in the Fort area.

It is always advised to make all foreign exchange transactions through authorised banks or exchanges with the provision of an encashment receipt. Changing money through unauthorised dealers is illegal. Unspent rupees may be reconverted at a commercial bank before one leaves the country.

Travellers' cheques  issued by American Express and Thomas Cook are accepted without difficulty and give a better exchange rate than currency notes in Sri Lanka.

Foreign currency can be exchanged at the Bandaranaike International Airport as well as banks, hotels and authorised exchanges found all over the city. However, one should avoid hotels, which always charge a huge premium over the rates available in the city locations.

Sri Lanka, along with many countries has a major problem with credit/debit card fraud. Therefore, it is best to use the credit cards only when extremely necessary.