Hotel added 3% to my bill for paying with Visa? Is this legal?

This is a frustrating but extremely common practice.

Is it Legal? No. The Central Bank of Sri Lanka (CBSL) has repeatedly stated that merchants cannot pass the Merchant Discount Rate (MDR) onto the customer.

The Reality: Small to medium hotels and gem shops do it anyway. They operate on thin margins and resent the bank fees.

How to Handle it:

High-End Hotels: They will never charge this. If they do, complain to the General Manager immediately; they will usually waive it.

Budget/Mid-Range: They will likely stand their ground. You can argue, but they might just say "Cash only then."

The Fix: For large bills at smaller hotels, ask before you book: "Is there a surcharge for credit cards?" If yes, offer to pay in cash (LKR or USD) if they give you a small discount.