Receiving payments for online work is one of the most significant challenges faced by Sri Lankan digital entrepreneurs. This comprehensive guide outlines the best payment options, their advantages, limitations, and practical guidance for receiving international payments effectively.
Available Payment Methods for Sri Lankans
Payoneer
Best for: Freelancers on major platforms, e-commerce sellers
Features:
- US, EU, GB, and other international receiving accounts
- Linked debit Mastercard for withdrawals
- Direct withdrawal to Sri Lankan bank accounts
- Integrated with major platforms (Upwork, Fiverr, Amazon, etc.)
Fees:
- Bank withdrawal: 2% or $3 (whichever is greater)
- ATM withdrawal: 3% + fixed fee based on currency
- Annual card fee: approximately $30
Requirements:
- Government-issued ID (NIC or passport)
- Proof of address
- Tax identification information
Withdrawal Options:
- Direct to local bank (1-3 business days)
- ATM withdrawal via Payoneer Mastercard
- Use for online purchases directly
Wise (Formerly TransferWise)
Best for: Direct client payments, receiving from businesses
Features:
- Multi-currency accounts
- Competitive exchange rates (typically 0.5-1% above mid-market)
- TransferWise debit card available
- Transparent fee structure
Fees:
- Conversion fee: Approximately 0.5-1%
- Withdrawal to bank: Small fixed fee
- Card payments: Free for a certain amount, then small percentage
Requirements:
- Government-issued ID
- Proof of address
- Verification of Sri Lankan bank account
Withdrawal Options:
- Direct to local bank
- Use Wise debit card (if available)
Skrill
Best for: Freelancers, digital service providers
Features:
- Fast transfers
- Lower fees for regular users
- VIP program for frequent users
Fees:
- Withdrawal to bank: Approximately 3.99%
- Currency conversion: Approximately 3.99%
- Sending money: 1.45% + fixed fee
Requirements:
- Email verification
- Identity verification for higher limits
- Bank account details for withdrawals
Withdrawal Options:
- Local bank transfer
- Skrill Prepaid Mastercard (if available)
Direct Bank Transfers (Wire Transfers)
Best for: Larger payments, established client relationships
Features:
- Direct deposit to your Sri Lankan bank account
- No intermediary service required
- Works with any client worldwide
Fees:
- Sending bank fee: $20-50 (usually paid by sender)
- Receiving bank fee: 0.5-1% or fixed amount
- Currency conversion at bank rates
Requirements:
- International banking details (SWIFT/BIC code)
- Complete bank information
- Sometimes correspondent bank information
Withdrawal Options:
- Directly deposited to your bank account
Cryptocurrency
Best for: Tech-savvy individuals, international transactions
Features:
- Borderless transfers
- No central authority approval needed
- Option for those without traditional banking
- Stablecoins reduce volatility concerns
Fees:
- Network transaction fees (varies by cryptocurrency)
- Exchange fees when converting to fiat (1-5%)
- Withdrawal fees to bank accounts
Requirements:
- Crypto wallet
- Account on local exchange for conversion to LKR
- Understanding of cryptocurrency security
Withdrawal Options:
- Convert via local exchanges to Sri Lankan rupees
- P2P exchanges to bank transfers
- Crypto debit cards (limited availability)
Platform-Specific Payment Methods
For Freelancers
Upwork
- Direct to local bank (via Hyperwallet)
- Payoneer
- Direct to U.S. bank (if available)
Fiverr
- Payoneer
- Local bank transfer (limited availability)
- Fiverr Revenue Card
Freelancer.com
- Local bank transfer
- Payoneer
- Skrill
For Content Creators
YouTube
- AdSense linked to local bank
- Western Union (in some cases)
- Check payments (not recommended)
Affiliate Programs
- Payoneer
- Direct bank transfer
- Check (with limitations)
Patreon/Memberships
- Payoneer
- Stripe (through partnerships)
- Direct bank transfer
For E-commerce Sellers
Global Marketplaces
- Payoneer (for Amazon, eBay, Walmart)
- World First
- Local bank transfer (with higher fees)
Own Online Stores
- PayHere (local payment gateway)
- 2Checkout/Verifone
- Direct bank transfers
Optimizing Your Payment Strategy
Minimizing Fees
As Alston Antony, founder of MakeMoneyOnline.lk and AlstonAntony.com, advises based on his experience:
- Consolidate payments where possible to reduce multiple transfer fees
- Time your withdrawals strategically during favorable exchange rates
- Consider the payment threshold of each platform to avoid small, frequent transfers
- Negotiate with clients to cover transfer fees for larger projects
- Maintain accounts with multiple payment processors to use the most efficient option for each client
Tax Considerations
- Keep records of all international income
- Understand your tax obligations as a Sri Lankan resident
- Consider consulting with a tax professional familiar with digital income
- Save a percentage of earnings for potential tax payments
- Check if you qualify for any special economic zones or incentives for digital businesses
Security Practices
- Use strong, unique passwords for all payment accounts
- Enable two-factor authentication whenever available
- Be cautious of phishing attempts targeting payment processors
- Regularly monitor account activities
- Use secure networks when accessing financial accounts
Common Challenges and Solutions
Challenge: PayPal Limitations
Solution: Use Payoneer or Wise as alternatives, or work with a trusted partner in a PayPal-supported country for specific projects requiring PayPal.
Challenge: High Transfer Fees
Solution: Negotiate with clients to include fees in project costs, consolidate payments to reduce frequency, or use cryptocurrency for lower fees.
Challenge: Delays in Payment Processing
Solution: Factor in typical processing times (3-7 business days) when planning finances, maintain a financial buffer, and communicate clearly with clients about payment timelines.
Challenge: Exchange Rate Fluctuations
Solution: Consider keeping some earnings in stable currencies if legally permissible, time withdrawals strategically, or use hedging strategies for larger amounts.
Challenge: Account Verification Difficulties
Solution: Prepare proper documentation in advance, ensure scan quality of documents, and contact support proactively if issues arise.
Setting Up Payment Accounts: Step-by-Step
Setting Up Payoneer (Recommended Primary Option)
- Visit Payoneer.com and click “Register”
- Select “Individual” account type
- Complete the application with personal details
- Verify your email address
- Upload identification documents (NIC or passport)
- Add your Sri Lankan bank details
- Wait for approval (typically 1-3 business days)
- Order your Payoneer Mastercard (optional)
Setting Up Wise
- Visit Wise.com and select “Sign Up”
- Create account with email or Google/Facebook
- Verify your identity with ID documents
- Add your Sri Lankan bank account
- Fund your account to activate (minimal amount)
- Set up currency accounts as needed
- Get account details to share with clients
Future of International Payments for Sri Lankans
Alston Antony continues to monitor developments in the payment landscape for Sri Lankans. Emerging options to watch include:
- Central Bank Digital Currency (CBDC) initiatives
- Expanded cryptocurrency adoption and regulation
- New fintech partnerships with Sri Lankan banks
- Regional payment networks facilitating easier cross-border transfers
Personal Support
For personalized guidance on optimizing your payment strategy, including addressing specific challenges you might be facing, Alston Antony offers specialized consulting services.