Best place to exchange currency in Sri Lanka - airport, banks, money changers, or ATMs?

Currency exchange in Sri Lanka follows a clear hierarchy from best to worst rate. Let me give you the practical guide.

Best rates: licensed money changers in Colombo
The highest rates for USD, EUR, GBP, and most major currencies are at licensed money changers in Colombo — particularly around Bambalapitiya (Galle Road), the Fort area, and near the Pettah market. These are licensed businesses (look for the Central Bank licence displayed). Rates are typically 1-3% better than banks. Always check the buying rate on a board before handing over cash. Count your money before leaving the counter.

Good rates: ATMs
ATMs give rates close to the interbank rate with your home bank's foreign transaction fee added. For many visitors this is the simplest option — withdraw LKR from a local ATM at the real exchange rate. Commercial Bank, HNB, and Sampath Bank ATMs are reliable. ATMs are available throughout the country in all tourist areas, towns, and cities. In very remote areas (deep Knuckles, parts of the north) ATMs are rare — withdraw in advance.

Acceptable: bank branches
Banks (Commercial Bank, HNB, Sampath, Bank of Ceylon) exchange foreign currency at official rates. Slightly lower than money changers but completely safe. Bring your passport. Queues can be long.

Poor rates: airport
The exchange counters at BIA airport give rates 4-8% below market. Avoid exchanging large amounts at the airport. Exchange just enough on arrival (USD 50-100 equivalent) to cover your first transport and meal, then exchange properly in Colombo.

How much cash do you need? Cards are accepted at most hotels, larger restaurants, and supermarkets in tourist areas. Small guesthouses, local transport, markets, temples, and rural restaurants are cash only. Budget LKR 3,000-5,000 per person per day in cash for a mid-range trip plus your accommodation and activities.

Black market: there is no functioning street black market worth using in Sri Lanka. The occasional tout who offers a better rate is either scamming (counterfeit notes, short-counting) or offering a marginal premium not worth the risk. The licensed money changers in Colombo beat the banks anyway.