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Your guide to the employment landscape, working customs and local labor laws in Sri Lanka
Capital
Colombo
Currency
Sri Lankan Rupee (LKR)
Languages
Sinhala (Official), Tamil (Official), English
GDP per Capita
$3,988
Employer Tax
15%
Payroll Frequency
Daily, Weekly, or Monthly
Sri Lanka is known for its cinnamon and tea exportation around the globe. The country has been progressing its economic growth over the past years and has a GDP of 83.32 billion USD.
Major economic hubs:
Colombo, Sri Jayawardenepura Kotte
Skills in demand:
Local: 1
World : 2625
Local: 2
World : 3671
Local: 3
World : 4118
Local: 4
World : 4941
Local: 5
World : 5089
XpressJobs, Ikman Jobs, Jobpal.lk
1,912,000
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
The average salary in Sri Lanka is mentioned below:
| Job Title | Average Monthly Salary (LKR) | Average Monthly Salary (USD) |
| Sales Manager | 168,000 LKR | 522 USD |
| Accounting Manager | 134,000 LKR | 416USD |
| Information Technology Manager | 151,000 LKR | 469 USD |
| Software Engineer | 89,300 LKR | 277 USD |
| Database Administrator | 84,300 LKR | 262 USD |
| General Manager | 169,000 LKR | 525 USD |
In order to onboard an individual from Sri Lanka, the employer needs to know about the employment law, allowances, deductions, and bonuses.
According to Sri Lankan law, the employer needs to provide the employment contract with all the terms and conditions along with benefits. Employment contracts in Sri Lanka may either be written or oral. If written, it must be in the language that both the employees and employers understand – either Tamil, Sinhala, or English.
Sri Lankan employees that are newly hired will have three to nine months of probation period.
| Date (Day) | Public Holiday |
| 01st January 2024 (Monday) | New Year |
| 09th April 2024 (Tuesday) | Ramazan Festival Day |
| 10th April 2024 (Wednesday) | Ramazan Festival Day |
| 11th April 2024 (Thursday) | Id-Ul-Fitr – Ramazan Festival Day |
| 12th April 2024 (Friday) | Id-Ul-Fitr – Ramazan Festival Day |
| 23rd April 2024 (Tuesday) | National Sovereignty and Children’s Day |
| 01st May 2024 (Wednesday) | Labour and Solidarity Day |
| 23rd May 2024 (Thursday) | Vesak Dull Moon Poya Day |
| 17th June 2024 (Monday) | Eid al-Adha |
| 18th June 2024 (Tuesday) | Eid al-Adha |
| 19th June 2024 (Wednesday) | Eid al-Adha |
| 15th July 2024 (Monday) | Democracy and National Unity Day |
| 30th August 2024 (Friday) | Victory Day |
| 29th October 2024 (Tuesday) | Republic Day |
| 31st October 2024 (Thursday) | Deepavali Festival Day |
| 25th December 2023 (Monday) | Christmas Day |
| Type of Leave | Time Period | Mandatory |
| Annual/Earned Leave | 14 days | Yes |
| Sick Leave | 7 days | Yes |
| Maternity Leave | 12 weeks | Yes |
Leave Compliance
Payroll cycle
Wages can be paid on daily, weekly, fortnightly, or monthly basis. However, a wage period cannot exceed a month.
Minimum wage
The statutory minimum wage is LKR 12,500 a month.
Overtime pay
The maximum overtime hour is 12 hours per week, and overtime is paid at 150% of the employee’s hourly pay.
| Category | Contribution |
| Employees Provident (EPF) | 12% |
| Employers Trust Fund | 3% |
| Category | Contribution |
| Employees Provident (EPF) | 8% |
| Annual Taxable Income | Tax rate |
| 0 to 3 million LKR | 6% |
| 3 million to 6 million LKR | 12% |
| Above 6 million LKR | 18% |
Sri Lanka levies a standard VAT of 15%.
There is no mandatory 13th-month bonus in Sri Lanka.
Either a prior written consent of the employee or the prior written approval of the Commissioner of Labor is required to terminate the services of an employee.
In the case of closure of establishment or removal of employees due to winding up of sections or retrenchment, employers should apply for the approval of the Labor Commissioner.
Employees under the probationary period will be given up to 2 weeks of notice period. On the other hand, employees outside the probationary period will have a notice period based on their contract.
The severance pay depends on the years of service provided by the individual:
| Years of Service | Severance Pay |
| 1 to 5 years | 2.5-month pay per year |
| 6 to 14 years | 2-month pay per year |
| 15 to 19 years | 1.5-month pay per year |
| 20 to 24 years | 1-month pay per year |
| 25 to 34 years | 0.5-month pay per year |
For foreigners to legally work in Sri Lanka, they must request their employer to apply for their visa with the Controller of Immigration & Emigration. The individual has to apply for the Sri Lanka Work Visa, and all the documents required have to be submitted to the nearest Department of Immigration in Sri Lanka.
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