Sri Lanka is a cheap place to travel around. Shoestring travellers can exist comfortably on less than US$20.00 a day by staying in basic share or double rooms, getting around by bus and avoiding flash restaurants. Up the scale a bit to US$30.00 or US$40.00 and you'll be kipping down in delightful rest houses. Plan on around US$100.00 a day if you want the full five star treatment.

You'll have no problem changing travellers cheques at most major banks. Banks will give you a slightly better rate for travellers cheques, but it's convenient to have some cash for times when you can't get to a bank (there are plenty of money changers in Colombo and Hikkaduwa). US dollars are best. International ATMs have become common, especially in major cities, and can be found in most important tourist cities, but it's best to carry some cash in case the networks are temporarily down. Credit cards are widely accepted; Visa and MasterCard cash withdrawals are possible at major banks.

A 10% service charge is added to nearly every accommodation or eating bill in the middle and top ranges, but this often goes to the management. Tips directly to workers are always appreciated. Hotel porters normally get Rs20.00 per heavy bag. On the whole, prices are very negotiable in Sri Lanka, but bargaining shouldn't be seen as a battle to the death. Find out what the approximate cost is and then come to a mutually acceptable compromise. Losing your temper or shouting is very bad form.