Best Places to Spend Crypto in Sri Lanka

Cryptocurrency usage is not legal in Sri Lanka, but it is also not illegal. It is not recognized as legal tender, so most Sri Lankans are hesitant to use it for daily transactions. 

In 2023, around 1.90% of Sri Lankans owned cryptocurrency out of a population of 21,893,579, according to Triple A.

Even though crypto is not widely accepted, some businesses and online platforms still allow people to use it for payments. 

There are a few places where you can spend your crypto in Sri Lanka. In this article, we will explore some of the best options available.

Read Also: Crypto Adoption in Sri Lanka.

Key Takeaways

• Cryptocurrency is neither legal nor illegal in Sri Lanka, existing in a regulatory gray area.
• Only about 1.90% of Sri Lankans owned cryptocurrency as of 2023.
• Cafe Samsara is one of the few establishments accepting Bitcoin payments in Sri Lanka.
• Hemadan Restaurant & Bar became one of the first Sri Lankan businesses to accept cryptocurrency in 2021.
• Businesses accepting crypto payments benefit from enhanced security against fraud.
• Binance and UEEx are recommended platforms for purchasing cryptocurrency in Sri Lanka.

S/N	Best Places to Spend Crypto in Sri Lanka	Categories
1	Cafe Samsara	Cafe
2	Hemadan Restaurant & Bar	Hotel

Cafe Samsara

Source: Cafe Samsara

Category: Cafe

Supported Cryptos: Bitcoin (BTC)

This eco-friendly restaurant is designed to give you fresh air and a peaceful atmosphere while you enjoy your meal. Unlike other restaurants on Little Island, Cafe Samsara focuses on organic food, fresh fruits, and local flavors.

You can find a mix of Sri Lankan dishes, local craft beer, and even Western food. Whether you’re craving something traditional or international, they have it all. Plus, they accept cryptocurrency, making it a great choice for digital payment users.

Hemadan Restaurant & Bar

Source: Hemadan Restaurant & Bar

Category: Hotel

Supported Cryptos: Bitcoin (BTC)

In 2021, they announced on their Facebook page that Hemadan started accepting cryptocurrency payments, making it one of the first places in Sri Lanka to do so. 

Located just a 15-minute walk from Aluthgama Railway Station, Hemadan is a perfect place for travelers looking for a peaceful stay, delicious Sri Lankan food, and a relaxing atmosphere away from the noisy town center. 

Whether you’re staying for a night or just stopping by for a meal, you can now pay with crypto, making your visit even more convenient.

What Are the Pros and Cons of Accepting Crypto Payments as a Business Owner?

If you are a business owner in Sri Lanka, you may be wondering whether you should start accepting crypto payments. While trading cryptocurrency is not illegal in Sri Lanka, it is unregulated. The Central Bank has warned about its risks, and it is not considered legal tender . Before making a decision, here are the pros and cons of accepting crypto payments.

Pros of Accepting Crypto Payments

1. More Security

Credit card fraud is a big problem, and small businesses are often targets. Cryptocurrency payments are recorded on the blockchain, making them harder to hack. Customers use a crypto wallet instead of storing data in a central system, reducing the risk of breaches.

2. Faster International Payments

If you sell products or services to customers outside Sri Lanka, crypto can make transactions quicker and cheaper. You do not need to wait for a foreign bank to process payments, and you avoid extra currency exchange fees.

3. No Chargebacks

Once a crypto payment is made, it cannot be reversed. Unlike credit card payments, where customers can dispute charges and get refunds without your approval, crypto payments require you to manually send back the money if a refund is needed. This helps with cash flow and reduces fraud.

Cons of Accepting Crypto Payments

1. Price Fluctuations

The value of cryptocurrencies like Bitcoin changes a lot. If you accept Bitcoin for a product today, its value could drop tomorrow. This could mean losing money if you don’t convert it to local currency quickly.

2. Changing Regulations

Cryptocurrency is still new, and rules about its use are not clear in many countries, including Sri Lanka. The government could introduce new laws that affect how businesses use crypto. This uncertainty makes it a risky payment method.

Tips for Spending Crypto in Sri Lanka

If you’re looking to spend cryptocurrency in Sri Lanka, here are some practical tips:

1. Limited Direct Acceptance: Few merchants in Sri Lanka directly accept crypto payments. Major tourist areas like Colombo and beach towns may have some crypto-friendly businesses.
2. Crypto Cards: Consider getting a crypto debit card from providers like Binance or UPay Card that converts your crypto to fiat at the point of sale.
3. Legal Considerations: Crypto exists in a gray area legally in Sri Lanka. While not explicitly banned, the Central Bank has cautioned against its use.
4. Tax Implications: Be aware that cryptocurrency transactions might have tax implications both in Sri Lanka and your home country.
5. Backup Payment Method: Always carry alternative payment methods as backup.
6. Security Precautions: Use secure networks for transactions and consider a VPN for additional security.

Read Also: Best Places to Spend Crypto in Singapore

Conclusion

We were only able to find just two places in Sri Lanka that accept cryptocurrency: Cafe Samsara and Hemadan Restaurant & Bar. Since crypto is not widely accepted in the country, spending it can be challenging. 

If you plan to use crypto in Sri Lanka, be prepared with backup payment options and stay updated on regulations. While it may not be easy to spend crypto now, the situation could change as awareness and adoption grow.

Frequently Asked Questions