The currency of Sri Lanka is the Sri Lankan rupee (LKR), written as "Rs." or "රු." and divided into 100 cents. It is the only legal tender across the island nation, issued and regulated by the Central Bank of Sri Lanka in Colombo. As of 2026, one US dollar is worth roughly 300 to 320 rupees, though the rate moves with global markets and Sri Lanka's ongoing economic recovery.
The Sri Lankan Rupee at a Glance
The rupee is the everyday money of more than 22 million Sri Lankans, used for everything from buying a king coconut on the roadside to settling hotel bills in Colombo. Here are the essentials travelers and students most often look for:
- Name: Sri Lankan rupee
- ISO code: LKR
- Symbol: Rs, රු (Sinhala), or ரூ (Tamil)
- Subunit: 1 rupee = 100 cents
- Issuing authority: Central Bank of Sri Lanka, founded 1950
Although the rupee shares its name with the Indian, Pakistani and Nepalese rupees, it is a completely separate currency with its own value and is not interchangeable with them. Cents have largely disappeared from circulation because of inflation, so in practice prices are quoted in whole rupees.
How the Rupee Came to Be
Money in Sri Lanka has a long and layered history. Under British colonial rule the island, then called Ceylon, used the Indian rupee until 1872, when a distinct Ceylon rupee was established. After independence in 1948 the currency continued as the Ceylon rupee, and when the country adopted the name Sri Lanka in 1972, the unit was renamed the Sri Lankan rupee.
For decades the rupee was managed under a controlled exchange-rate system. In 2022, however, Sri Lanka entered its worst economic crisis since independence, marked by a sovereign debt default, severe shortages of fuel and food, and rapid inflation. The central bank allowed the rupee to float more freely, and its value fell sharply against the dollar. An International Monetary Fund support programme and subsequent reforms have since helped stabilise the currency and slow inflation, though the rupee remains weaker than it was before the crisis.
Banknotes and Coins in Circulation
Sri Lankan banknotes are among the most distinctive in South Asia. The current series prints them vertically on the back, a design choice introduced to highlight the country's heritage. Notes come in the following denominations:
- Rs 5,000 – the highest-value note
- Rs 2,000
- Rs 1,000
- Rs 500
- Rs 100
- Rs 50
- Rs 20
The notes celebrate the island's culture and biodiversity, featuring landmarks such as the ancient rock fortress of Sigiriya and the ruined city of Polonnaruwa, alongside dancers, birds and butterflies native to the country. Coins circulate in smaller values, commonly Rs 1, Rs 2, Rs 5 and Rs 10, which are handy for short tuk-tuk rides and local buses.
One detail visitors often notice is that every banknote carries text in all three of the country's main written languages: Sinhala, Tamil and English. This reflects Sri Lanka's official bilingual policy and makes the money readable to nearly everyone on the island.
Using Money in Sri Lanka
Sri Lanka still runs largely on cash, especially once you leave the capital. ATMs are plentiful in Colombo, Kandy, Galle and other towns, but they thin out in rural villages and on the road to national parks, so it pays to withdraw enough before heading into the countryside. Major hotels, larger restaurants and supermarkets accept Visa and Mastercard, yet markets, roadside stalls, tuk-tuk drivers and small guesthouses expect rupees in hand.
For the best rates, change foreign currency at banks or licensed money changers rather than at hotels. Keep a stock of small notes, since vendors frequently struggle to break a Rs 5,000 note for a low-value purchase. Bargaining is common and expected in markets and for tuk-tuk fares. Note that taking large amounts of rupees in or out of the country is restricted, so it is wise to convert leftover cash before you fly home. To put values in perspective, a Rs 5,000 note is worth somewhere around 15 US dollars at recent rates. You can learn more about the island in our sri lanka country guide.
Frequently Asked Questions
What is the currency of Sri Lanka called?
The currency is the Sri Lankan rupee, abbreviated LKR and written with the symbol "Rs." It is the sole legal tender throughout the country and is divided into 100 cents, although cents are rarely used today.
Can I use US dollars or euros in Sri Lanka?
Foreign currencies are generally not accepted for everyday purchases. Some upscale hotels and tour operators may quote prices in dollars, but you will need rupees for restaurants, transport, markets and most shops. Exchange your money at a bank or authorised money changer on arrival.
How many Sri Lankan rupees are in a US dollar?
As of 2026, one US dollar is worth roughly 300 to 320 Sri Lankan rupees, though the exchange rate fluctuates daily. Always check a current rate before travelling, as the value has moved considerably since the 2022 economic crisis.
What is the highest Sri Lankan banknote?
The Rs 5,000 note is the highest denomination in circulation, followed by the Rs 2,000 and Rs 1,000 notes. Smaller values such as Rs 50 and Rs 100 are the most useful for daily spending.