If you are earning in Pounds, Dollars, or Euros but spending in Sri Lankan Rupees (LKR), you know the pain of bad exchange rates. For years, traditional banks were the only option, happily charging you hidden fees and offering rates that were nowhere near the actual market value.

In 2025, the battle for the best money transfer service to Sri Lanka has narrowed down to two heavyweights: Wise (formerly TransferWise) and Remitly.

Both promise speed, security, and low fees. But when you peel back the marketing layers, who actually puts more rupees in your account? Is it the transparent tech giant Wise, or the remittance specialist Remitly?

We analyzed the fees, speed, and “hidden” costs of Wise vs Remitly Sri Lanka to give you a definitive answer.

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At a Glance: The Quick Verdict

 

Don’t have time to read the full breakdown? Here is the cheat sheet.

Feature	Wise	Remitly
Best For	Bank Transfers & Salary Payments	Cash Pickup & Urgent Small Transfers
Exchange Rate	Mid-Market Rate (The “Real” Rate)	Promotional Rate (w/ Markup later)
Transfer Fee	Transparent % (approx. 0.5% – 0.7%)	Flat Fee (often $0 for economy)
Speed	24 Hours (Often instant to some banks)	Minutes (Express) or 3-5 Days (Economy)
Max Limit	High (Up to $1M equivalent)	Tiered (Starts lower, increases with use)

The Bottom Line: Use Wise if you are sending money to a bank account and want the maximum amount to arrive. Use Remitly if your recipient needs hard cash instantly or doesn’t have a bank account.

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Round 1: Exchange Rates & Hidden Fees

 

This is where the marketing tricks happen. To understand the true cost, you have to look at the Exchange Rate + Upfront Fee.

Wise: The “What You See Is What You Get” Approach

 

Wise uses the Mid-Market Rate. This is the same rate you see on Google or XE.com. They do not add a markup.

• The Fee: They charge a variable fee (usually around 0.4% – 0.6% of the transfer amount) + a small fixed fee.

• Transparency: You see exactly how much Wise takes. The rest is converted at the real rate.

Remitly: The “Zero Fee” Illusion

 

Remitly often advertises “$0 fees” for transfers above a certain amount or for new customers. However, they make their money on the Exchange Rate Markup.

• The Markup: Remitly typically offers a rate that is 1% to 2% worse than the real market rate.

• Promotional Rates: For your first transfer, Remitly often gives a massive promotional rate (sometimes even better than the market rate) to hook you in. But for your second, third, and fourth transfer, that rate drops significantly.

Winner: Wise. Over the long run, Wise’s mid-market rate almost always beats Remitly’s markup, especially for amounts over $500.

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Round 2: Transfer Speed to Sri Lanka

 

Sri Lankan banking infrastructure has improved massively with the CEFTS (Common Electronic Fund Transfer Switch) network, allowing for near-instant domestic transfers.

Remitly Speed

 

Remitly offers two speeds:

1. Express: Paid for with a debit card. Money arrives in minutes. Ideal for emergencies.

2. Economy: Paid via bank transfer. Takes 3-5 business days but has lower fees.

Wise Speed

 

Wise has gotten much faster in 2025.

• If you fund the transfer with a card or have money in your Wise Balance, transfers to major banks (Commercial Bank, HNB, Sampath) often arrive within minutes or hours.

• If you send from your foreign bank to Wise first, it might take 24 hours.

Winner: Remitly (for urgency). If you need cash in hand literally now, Remitly’s Express option is hard to beat. For regular transfers, it’s a tie.

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Round 3: Delivery Methods (The Dealbreaker)

 

This is the most critical difference for many Sri Lankans.

• Wise only sends money to Bank Accounts. They connect directly to the Sri Lankan banking system. If your recipient (e.g., a tuk-tuk driver, a rural vendor, or an elderly relative) does not have a bank account, you cannot use Wise.

• Remitly offers Cash Pickup. Your recipient can walk into over 2,000 locations across Sri Lanka—including Cargills Food City, Commercial Bank, and Hatton National Bank branches—and pick up hard cash just by showing their ID and a reference number.

Winner: Remitly. The ability to collect cash at a Cargills Food City makes Remitly incredibly convenient for everyday needs in Sri Lanka.

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Round 4: The “Landing Fee” Trap

 

A common complaint from expats using traditional wire transfers (SWIFT) is that the Sri Lankan bank charges a “landing fee” (usually LKR 500 – 1,000) just to receive the money.

• Wise: Uses “Local Rails.” This means Wise has a local account in Sri Lanka. When you send money, they technically pay you from their local LKR account. To the receiving bank, it looks like a local domestic transfer. Result: No landing fees.

• Remitly: Also generally uses local partner networks, so landing fees are rare.

Winner: Tie. Both avoid the dreaded SWIFT fees that traditional banks charge.

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Final Verdict: Which One Should You Choose?

 

Choose Wise If:

 

• You are a Digital Nomad sending rent to a landlord.

• You are transferring your own salary or savings (amounts over $1,000).

• You appreciate transparency and hate calculating exchange rate markups.

• Your recipient has a bank account.

Choose Remitly If:

 

• You are sending a small amount (under $200) to a friend or service provider.

• Your recipient does not have a bank account and needs Cash Pickup.

• It is a medical or family emergency, and the money must be there in 10 minutes.

• It is your very first transfer (grab that promotional rate!).

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Pro Tip for Nomads:

Most savvy expats keep both apps on their phone. Use Wise for your monthly rent and big bills. Use Remitly for quick cash gifts or when you need to pay someone who prefers cash collection at the supermarket.