Possible ways to send money to Sri Lanka from UK - Explained
Sri Lanka once being a British colony, the citizens have been migrating to Britain for several generations. In 2021, the estimated population of Sri Lankans born in the UK was 131,000. However, the number of Sri Lankan descent are estimated to be around 300,000-400,000 as per the census reports.
Many of these Sri Lankans need to send money back home for various reasons, sending their earnings to their parents, relatives or friends etc., Let's find out what are the available options to send money to Sri Lanka from the United Kingdom.
Bank Transfers
Sending money via Banks will be the most secure and reliable method. If you have an account with a bank in the UK this service becomes much more convenient than any other methods. Banks use a payment system called SWIFT (Society for Worldwide Interbank Financial Telecommunications) for international money transfers.
You will be needing the following details to furnish a bank transfer.
- Name and address of recipient’s bank, (Recipient)
- Recipient’s IBAN (International Bank Account Number)
- BIC/SWIFT code of recipient’s bank
- Reason for the transfer
- Transfer amount and currency
- Who will pay the fees: You, the recipient, or a split between you and the recipient
Banks charge a flat rate base fee which will be about 3-4% from your total transfer amount on International money transfers depending on the bank. Sometimes the recipient bank may also charge a separate receiver fee. Some Banks also charge an initiation fee, which will vary depending on whether you transfer over the phone, online, or in a branch. If you wish to track the progress of a transfer, you will also be asked to pay a small sum called tracer fee.
Usually banks use lower exchange rates compared to the current market rates which will result in the recipient receiving a less amount than the sender intended. Some banks & financial institutions in the UK allow money to be sent abroad through their website or mobile app, but other banks require the sender to visit the branch and the transfer must be done during business hours.
Most banks require you to provide complete KYC (Know your customer) details if you are a new customer to the bank. And if the amount that you need to transfer is comparatively low this service might be expensive considering the bank charges.
Generally, international transfer fees in banks are considerably higher due to their service limitations. Most banks lack the infrastructure for fast and cheap international transfers.
Sending money through a bank can get delayed due to their extensive fraud and comprehensive checks. Due to the different time zones involved it can be further delayed with corresponding bank holidays and weekends. If there’s any mistake when initiating the transfer, the transfer will fail and will take some time for banks to reimburse money back to you.
Traditional wiring services
These types of service providers have been around for a long time. They are more convenient than traditional Bank transfers as you get many options like transferring money using their websites, apps, or physical locations. Senders can link their credit or debit cards to their websites, or even use cash.
Recipients in Sri Lanka can directly collect the money in cash from most of the Sri Lankan Banks island wide. The recipient can get the money within minutes, if necessary. Sender gets to control the amount which recipient will be receiving as the web or mobile interface shows the exact amount recipient gets with the applied exchange rates and their fees.
The disadvantages of these services are their charges depending on how the money is sent, how quickly it needs to be transferred, and where the recipient is located. Cash pick-up is an option that limits the branch’s business hours. In addition to paying fees, you have to consider currency exchange rates which once again will be a bit higher than the market selling rate of the respective currency pair.
Online transfer providers
These service providers became very popular as they are more user friendly, convenient and often have lower fees. Online transfer providers act as a third party in a transaction. The sender is often charged no fee, or very low transfer fees and exchange rates.
The sender transfers money to the company’s account in the U.S. The company then transfers an equal amount to the recipient in the recipient’s country. The transfers are fast, cost-effective, and accessible on easy-to-use online and mobile apps.
In many of these service providers a prominent disadvantage is recipients must have a bank account to receive money. Additionally, many online transfer providers have minimum transfer amounts that may be difficult for some to afford. Some may not charge a transaction fee but their exchange rate margins can be little higher than their competitors.
Using an International Money Exchange
There are many other specialized online international money transfer platforms, companies and exchanges. Choosing a specialized money transfer company will always be a far better choice and these service providers are becoming more popular due to their less commissions, low exchange rates, speed, less hassle and security. These companies mostly provide 24-hour customer service for any queries on tracking and provide customer support service.
To use these services mostly you need to register or open an account with the service providing company. By connecting your credit or debit card and/or bank account, downloading their app or by using their web service you will be able to do the transfer instantly.
In most cases the recipient gets the money the same day or by latest the next day. Some money transferring companies may offer higher fees and lower exchange rates so finding the best service provider will bring you a faster transaction for a lower cost.
Teeparam Exchange is becoming a very popular choice in the United Kingdom when choosing a specialized money transfer company. Founded in 2017 Teeparam Exchange provides a fast and reliable service together with lowest transaction fees and very thin exchange rate margin, and transfers are mostly done the same day or latest the next day.
Teeparam exchange follows the top security protocols to securely manage your funds and make transactions efficiently with a 24-hour customer service. You can use their service simply by visiting their website from your laptop or desktop computer or by downloading their app onto your Android or Apple smart phone.
Key factors you should consider when sending money from the UK to Sri Lanka are, transferring money on a day where the GBP/LKR exchange rate is favorable which means the recipient will get more money. Keep an eye on the Sri Lankan rupee rate and validate your transfer when you can get a good exchange rate. And finding a reliable international money exchange registered with FCA UK with the lowest commissions and offers favorable sri lanka exchange rate.