What is the local currency of Sri Lanka? What is the exchange rate like? Is it easy to exchange currency?

No problem, I'm familiar with this. When traveling to Sri Lanka, sorting out money matters beforehand is indeed crucial.

1. What is the local currency?

The official currency of Sri Lanka is the Sri Lankan Rupee, with the currency code LKR. Locals simply call it "Rupee."

This Rupee is not the same as the Indian Rupee or the Nepalese Rupee, so don't get them confused. Banknotes come in denominations of 20, 50, 100, 500, 1000, 5000, and there are also some coins. It's very convenient to carry plenty of small change (100s and 500s) when you go out, for things like taking a Tuk-tuk or buying items at small shops.

2. What about the exchange rate?

The exchange rate changes constantly, so I can't give you an exact figure, but I can give you a general idea so you have a rough estimate.

Against Chinese Yuan (CNY): Recently, 1 Chinese Yuan can exchange for approximately 40-45 LKR. You can simply remember 1:40 for estimation; for example, 100 CNY would be over 4000 LKR.
Against US Dollar (USD): 1 US Dollar can exchange for around 300 LKR. The US dollar is a hard currency and very easy to exchange locally.

Strongly recommended: One or two days before your departure, check the latest real-time exchange rates using your banking app or any currency exchange tool (like "XE Currency") to be well-informed.

3. Is currency exchange convenient? What are the options?

Overall, it's very convenient! You absolutely don't need to worry about not being able to exchange money. Here are a few mainstream methods I've personally used:

Top Recommendation: ATM Cash Withdrawal This is my personal favorite method; it's convenient and the exchange rate is fair.

How it works: As long as your debit card has the UnionPay, VISA, or Mastercard logo, you can directly withdraw local Rupees from ATMs in major Sri Lankan cities. There are many ATMs in places like Colombo, Kandy, and Galle.
Advantages: The exchange rate follows the real-time market rate, which is usually favorable, and it reduces the risk of carrying a large amount of cash.
Note: Chinese banks usually charge a cross-border withdrawal fee (typically 10-20 CNY per transaction; some smaller banks offer fee-free global withdrawals, so you might want to check). Sri Lankan banks might also charge a small fee. It's advisable to withdraw a larger amount at once to reduce the number of transactions.

Second Option: Airport or City Exchange Counters

At the airport: After you land and clear customs at Colombo Bandaranaike International Airport (CMB), you'll see a row of bank exchange counters. The advantage here is convenience, allowing you to get money immediately for a taxi or a SIM card. However, the exchange rate might not be the best. Suggestion: Exchange a small amount at the airport, say 50 or 100 USD, just enough to cover your first day's expenses.
In the city: Banks or authorized money changers in large cities can exchange currency. Banks offer more official rates but have limited operating hours. You can compare rates at roadside exchange points before exchanging.

What cash should you bring for exchange? Strongly recommend bringing US Dollars! USD is absolutely the "hard currency" in Sri Lanka; all exchange points accept it, and the exchange rate is usually the best. Although some places (like the airport) have started accepting Chinese Yuan, it's far less common and less favorable than USD.

Payment Tips Summary:

Best Strategy: Bring a debit card that supports overseas withdrawals + a small amount of US dollar cash (e.g., 300-500 USD, just in case).
Upon Arrival: Exchange a small amount of LKR at the airport for immediate needs, then use ATMs for withdrawals when you need more cash.
Daily Spending: Small stalls, Tuk-tuks, and most restaurants primarily use cash. High-end hotels, large supermarkets, and some upscale restaurants accept credit cards (VISA/Mastercard are widely accepted).
What to do with leftover currency: It's difficult to exchange LKR back to CNY in China. So, try to withdraw cash as needed and avoid having a large amount left over. When leaving, you can exchange any unused LKR back to USD at the airport; remember to keep your original exchange receipts.

I hope this information helps you, and I wish you a wonderful trip to Lanka! It's a great place.