The official currency used in Sri Lanka is the Sri Lankan Rupee, and it is denoted by LKR. The banknotes come in denominations of 10, 20, 50, 100, 200, 500, 1000, 2000 and 5000 rupees, and coins come in divisions of 1, 2, 5, and 10 rupees. Hotels, hostels resorts, restaurants, shops etc. usually accept Visa or MasterCard, however the Amex card is not frequently used. Traveler’s cheques are not accepted anywhere in Sri Lanka and most hotels prefer transactions in cash.
The easiest way to use the local currency is by withdrawing money from an ATM. However, withdrawing from international ATM's incurs an extra charge, in addition with the bank charges. It is always better to check with your local bank about the charges that might be levied.