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Sri Lanka Employment Guide

Your quick guide on talent and labor compliance norms in Sri Lanka




Sri Lankan Rupee (LKR)


Sinhala (Official), Tamil (Official), English

Payroll Frequency

Daily, Weekly, or Monthly

GDP per Capita


Employer Tax


Supplementary Guide for Employment and Expansion in Sri Lanka

Talent Overview

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:

Computer Technology, Machine Operation; English Language Skills

Map 3

Local Universities

The top local universities in Sri Lanka are as follows:

Uni1 9

University of Colombo


Local: 1

World : 2625

Uni2 7

University of Moratuwa


Local: 2

World : 3671

Uni3 9

University of Sri Jayewardenepura


Local: 3

World : 4118

Uni4 9

University of Kelaniya


Local: 4

World : 4941

Uni5 9

University of Peradeniya


Local: 5

World : 5089

Salary Data

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
Talentsource 30

Talent Sourcing Tips

Top Local Job Boards:

XpressJobs,  Ikman Jobs,

Number of LinkedIn users:


Top Recruitment Agencies:

Alliance Recruitment Agency, Ajeet’s Manpower Sri Lanka

Employing in Sri Lanka

In order to onboard an individual from Sri Lanka, the employer needs to know about the employment law, allowances, deductions, and bonuses.

Employee Contracts

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.

Probation Period

Sri Lankan employees that are newly hired will have three to nine months of probation period.

Public and Provincial Holidays

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

Employee Leaves

Type of Leave Time Period Mandatory
Annual/Earned Leave 14 days Yes
Sick Leave 7 days Yes
Maternity Leave 12 weeks Yes



Payroll 1

Payroll Cycle

Wages can be paid on daily, weekly, fortnightly, or monthly basis. However, a wage period cannot exceed a month.

Payroll 2

Minimum Wage

The statutory minimum wage is LKR 12,500 a month.

Payroll 3

Overtime Pay

The maximum overtime hour is 12 hours per week, and overtime is paid at 150% of the employee’s hourly pay.


13th Month Pay

There is no mandatory 13th-month bonus in Sri Lanka.

Employee Benefits

  • Medical care
  • Unemployment benefit
  • Old-age benefit
  • Employment injury
  • Family benefit
  • Maternity benefit
  • Invalidity benefit
  • Survivor’s benefit


Employer Payroll Tax

Category Contribution
Employees Provident (EPF) 12%
Employers Trust Fund 3%

Employee Payroll Tax

Category Contribution
Employees Provident (EPF) 8%

Employee Income Tax

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%.

Offboarding & Termination

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

Visa and Immigration

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.

Visa 33
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Minimum Wage

Overtime Pay

Visa & Immigration