How is the gold rate in Sri Lanka calculated here?
We take the international spot price of gold in US dollars per ounce and convert it at the live US dollar to Sri Lankan rupee exchange rate: price per gram = ounce price ÷ 31.1035 × USD/LKR rate × purity of the karat. The value updates every few seconds while the world market is open.
International rate and the local market rate
Sri Lankan jewellers in Colombo's Sea Street and elsewhere set their own daily rate per pawn, which includes local taxes and margins and differs from the international value shown here.
How gold is bought in Sri Lanka
Sri Lanka counts gold in pawn (sovereign) of 8 grams, mostly 22K for jewellery and 24K for bars.
Buying gold in the Gulf to take home
Many Sri Lankan workers in Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain and Oman buy gold there to take home. The gold value is the same as the world price, but taxes differ: Saudi Arabia charges 15% VAT on jewellery, Bahrain 10%, the UAE and Oman 5%, and Qatar and Kuwait have no VAT. Making charges are added by every shop. Keep the invoice and check the customs allowance of Sri Lanka before you travel.