USD to LKR for business payments
A foreign buyer paying a supplier in Sri Lanka usually pays US dollars into the supplier's Business Foreign Currency Account (BFCA). Goods exporters must then convert what they do not use into Sri Lankan rupees (LKR) by the 10th day of the following month, while service exporters may keep dollars, so the supplier's type of business decides what happens after you pay.
- Repatriation of Export Proceeds into Sri Lanka Rules No. 01 of 2024 require exporters to receive export proceeds in Sri Lanka within 180 days from shipment or provision of services.
- Rules No. 2 of 2026, gazetted on 9 June 2026, require goods exporters to convert residual export proceeds into rupees by the 10th day of the following month, after permitted payments.
- Exporters of services, including freelancers, have not had to convert service export proceeds received on or after 12 August 2022 into rupees.
- Under CBSL Directions No. 05 of 2021, rupees cannot be converted into foreign currency and credited to a BFCA.
- People's Bank lists inward SWIFT remittances credited to its own foreign currency accounts as free and charges Rs. 100 when they are credited to its rupee accounts.
The Sri Lankan rupee at a glance
The Sri Lankan rupee (LKR) is issued by the Central Bank of Sri Lanka (CBSL). Foreign exchange is governed by the Foreign Exchange Act, No. 12 of 2017, administered by the CBSL and its Department of Foreign Exchange, with rules gazetted under the Act. The rupee's rate against the dollar changes, and the supplier's bank applies its own rate when it converts export proceeds.
| Item | Sri Lankan rupee |
|---|---|
| Currency code | LKR |
| Issuer and regulator | Central Bank of Sri Lanka; Foreign Exchange Act, No. 12 of 2017 |
| Export proceeds | Received in Sri Lanka within 180 days of shipment or provision of services |
| Conversion, goods exporters | Residual converted to rupees by the 10th day of the following month |
| Conversion, service exporters | Not required for proceeds received on or after 12 August 2022 |
| Dollar account | Business Foreign Currency Account (BFCA) |
Sources: Gazette No. 2391/02, Rules No. 01 of 2024; Gazette No. 2492/10, Rules No. 2 of 2026; Sunday Times (August 2022). Checked on 29 October 2026.
Sri Lankan rules on export proceeds and conversion
Sri Lanka's rules apply to the supplier, but they change what the supplier needs from your payment.
- 180 days to receive. Rules No. 01 of 2024, published in Gazette No. 2391/02 on 1 July 2024, require exporters to receive export proceeds in Sri Lanka within 180 days from the date of shipment or provision of services. Pay the supplier's account in Sri Lanka, not an account abroad.
- Goods exporters convert the residual. Rules No. 2 of 2026, in Gazette No. 2492/10, require every exporter of goods to convert the residual into rupees on or before the 10th day of the following month. The residual is what remains after permitted payments, which include current export-related transactions and commitments for one month, so an exporter that buys imported materials can pay for them in dollars first.
- Service exporters keep dollars. The CBSL withdrew the mandatory conversion of service export proceeds received on or after 12 August 2022.
- No way back into dollars. Under CBSL Directions No. 05 of 2021, rupees cannot be converted into foreign currency and credited to a BFCA, so a supplier that converts cannot simply buy the dollars back into the account.
Our guide to receiving USD in Sri Lanka covers the supplier's side in full.
How a payment reaches a Sri Lankan supplier
A payment from abroad reaches a Sri Lankan supplier by SWIFT, the network banks use to send cross-border payments. The usual account is a Business Foreign Currency Account (BFCA), which a Sri Lankan business opens to hold foreign exchange it earns from non-residents. People's Bank offers its BFCA in 16 currencies. If the supplier gives a rupee account instead, the bank converts the dollars on arrival.
| Route | Supplier receives | Published charge example |
|---|---|---|
| SWIFT wire to a BFCA | USD; goods exporters convert the residual by the 10th of the next month | People's Bank: free when credited to its own foreign currency account |
| SWIFT wire to a rupee account | LKR, converted on arrival | People's Bank: Rs. 100 when credited to its rupee account |
| Payment to an account abroad | Not compliant for export proceeds | Proceeds must be received in Sri Lanka within 180 days |
Sources: People's Bank, Foreign Currency Tariff (July 2026); People's Bank, BFCA key facts; Rules No. 01 of 2024. Checked on 29 October 2026.
Collect the supplier's registered name exactly as on the account, the BFCA number, the bank's name, branch and SWIFT code, and the US correspondent its bank names, in writing. Check the code with our SWIFT code lookup.
What converting USD to LKR costs
When you pay dollars to a BFCA, you pay the sending fee and any intermediary deductions, and the supplier decides when to convert within its rules. When dollars land in a rupee account, the supplier's bank converts at its own rate, which is the market rate plus the bank's margin. If you convert yourself and pay rupees, the cost is the mid-market rate, the midpoint between buying and selling prices at that moment, plus your provider's margin, plus its fee. Send dollar wires with OUR charges when the supplier must receive the full amount.
Helm is a financial technology company, not a bank. Its US dollar account services are provided by Bridge Building, Inc. (NMLS ID 2450917), a licensed money transmitter, with customer funds held at Lead Bank. A Helm account holds dollars in your company's own name and sends international payments to suppliers by SWIFT, or by local rails in the supplier's currency where available, with the rate, fee and expected arrival shown before you send.
Helm agrees pricing with each business in writing before the account opens, and shows the rate, the fee and the expected arrival before you confirm each payment. See how Helm pricing works.
Pay a Sri Lankan supplier in USD or LKR?
- Pay USD to a BFCA for exports. It meets the supplier's 180-day receipt rule and lets a goods exporter pay its own import costs in dollars before the 10th-day conversion.
- Pay USD to service suppliers, such as IT and business process outsourcing firms, which may keep the dollars under the August 2022 change.
- Pay LKR only for local costs, such as a local agent, inspection or warehousing, where the invoice is in rupees.
For Sri Lankan companies paying abroad, see our guide to paying Chinese suppliers from Sri Lanka.
Open a Helm account
USD, EUR and GBP accounts in your company's name, with a named account manager.
Open accountQuestions
How long does a Sri Lankan exporter have to receive payment?
Repatriation of Export Proceeds into Sri Lanka Rules No. 01 of 2024 require exporters to receive export proceeds in Sri Lanka within 180 days from the date of shipment or provision of services.
Does a Sri Lankan supplier have to convert my dollars?
Goods exporters must convert the residual, after permitted payments, into rupees by the 10th day of the following month under Rules No. 2 of 2026. Service exporters have not had to convert proceeds received on or after 12 August 2022.
What is a BFCA?
A Business Foreign Currency Account is the foreign currency account a Sri Lankan business opens to hold foreign exchange it earns from non-residents. Under CBSL Directions No. 05 of 2021, rupees cannot be converted and credited to it.
What does a Sri Lankan bank charge to receive a wire?
Each bank publishes a tariff. People's Bank lists inward SWIFT remittances credited to its own foreign currency accounts as free and charges Rs. 100 when they are credited to its rupee accounts.
Should I pay a Sri Lankan supplier in USD or LKR?
Pay export invoices in dollars to the supplier's BFCA, which meets its receipt rules. Use rupees only for local costs invoiced in rupees.
What does Helm charge to pay a supplier in Sri Lanka?
Helm agrees pricing with each business in writing before the account opens, and shows the rate, the fee and the expected arrival before you confirm each payment.
References
- Government of Sri Lanka: Gazette Extraordinary No. 2391/02, Repatriation of Export Proceeds into Sri Lanka Rules No. 01 of 2024
- CBSL Department of Foreign Exchange: Gazette No. 2492/10, Repatriation of Export Proceeds into Sri Lanka Rules No. 2 of 2026
- CBSL Department of Foreign Exchange: Directions No. 05 of 2021, Business Foreign Currency Accounts
- Sunday Times: CBSL withdraws mandatory requirement to convert service export proceeds (August 2022)
- People's Bank: Foreign Currency Tariff (July 2026)
- People's Bank: Business Foreign Currency Account key facts document
This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.