Talent Wiki - Sri Lanka
Your quick guide on talent and labor compliance norms in Sri Lanka
Capital
Colombo
Currency
Sri Lankan Rupee (LKR)
Languages
Sinhala (Official), Tamil (Official), English
Payroll Frequency
Daily, Weekly, or Monthly
GDP per Capita
$3292.57
Employer Tax
15%
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
Local Universities
The top local universities of Sri Lanka with world rank:
University of Colombo
RANKING
Local: 1
World : 2800
University of Moratuwa
RANKING
Local: 2
World : 2911
University of Sri Jayewardenepura
RANKING
Local: 3
World : 3842
University of Kelaniya
RANKING
Local: 4
World : 3921
University of Peradeniya
RANKING
Local: 5
World : 4092
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 | 458.19 USD |
| Accounting Manager | 134,000 LKR | 365.46 USD |
| Information Technology Manager | 151,000 LKR | 411.83 USD |
| Software Engineer | 89,300 LKR | 243.55 USD |
| Database Administrator | 84,300 LKR | 229.91 USD |
| General Manager | 169,000 LKR | 460.92 USD |
Talent Sourcing Tips
Top Local Job Boards:
XpressJobs, Ikman Jobs, Jobpal.lk
Number of LinkedIn users:
1,343,000
Top Recruitment Agencies:
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 2023
| Date | Holiday | Type |
| 6 Jan | Duruthu Full Moon Poya day | Public Holiday |
| 15 Jan | Tamil Thai Pongal day | Public Holiday |
| 4 Feb | National day | Public Holiday |
| 5 Feb | Navam Full Moon Poya day | Public Holiday |
| 7 Mar | Madin Full Moon Poya day | Public Holiday |
| 5 Apr | Bak Full Moon Poya day | Public Holiday |
| 7 Apr | Good Friday | Public Holiday |
| 13 Apr | Day Prior to Sinhala & Tamil new year | Public Holiday |
| 14 Apr | Sinhala & Tamil new year | Public Holiday |
| 22 Apr | Id-Ul Fitr | Public Holiday |
| 1 May | May day | Public Holiday |
| 5 May | Vesak full moon Poya day | Public Holiday |
| 6 May | Day following Vesak full moon Poya day | Public Holiday |
| 3 Jun | Poson full moon Poya day | Public Holiday |
| 3 Jul | Esala full moon Poya day | Public Holiday |
| 1 Aug | Nikini full moon Poya day | Public Holiday |
| 30 Aug | Adhi Nikini full moon Poya day | Public Holiday |
| 28 Sep | Milad Ul-Nabi | Public Holiday |
| 28 Oct | Vap full moon Poya day | Public Holiday |
| 12 Jan | Deepavali | Public Holiday |
| 26 Jan | Ill full moon Poya day | Public Holiday |
| 25 Dec | Christmas day | Public Holiday |
| 26 Dec | Unduvap full moon Poya day | Public Holiday |
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
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.
Bonus
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
Taxes
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% |
VAT
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.
