Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Sri Lanka

Your quick guide on talent and labor compliance norms in Sri Lanka
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Capital
Colombo
Currency
Sri Lankan Rupee (LKR)
Languages
Sinhala (Official), Tamil (Official), English
Payroll Frequency
Daily, Weekly, or Monthly
GDP per Capita
$4300
Employer Tax
15%

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

Local Universities

The top local universities of Sri Lanka with world rank:

University of Colombo

RANKING

Sri Lanka : 1

World : 1403

University of Sri Jayewardenepura

RANKING

Sri Lanka : 2

World : 2218

University of Moratuwa

RANKING

Sri Lanka : 3

World : 2362

University of Peradeniya

RANKING

Sri Lanka : 4

World : 2555

University of Kelaniya

RANKING

Sri Lanka : 5

World : 3021

Salary Data

The average monthly salary in Sri Lanka is mentioned below:

Job Title Salary Range (LKR) Salary Range (USD)
Sales Manager 87,600 - 258,000 432.32 - 1273.28
Accounting Manager 69,500 - 204,000 343 - 1,006.78
Product Manager 65,200 - 208,000 321.78 - 1026.52
Software Developer 46,400 - 137,000 229 - 676.12
Data Analyst 40,500 - 129,000 199.88 - 636.64
UX Designer 40,500 - 119,000 199.88 - 587.29

Talent Sourcing Tips

Top Local Job Boards:

XpressJobs, Ikman Jobs, Jobpal.lk

Number of LinkedIn users:

1,576,000

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 Contract

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 Name Type
14 Jan Tamil Thai Pongal Day Public Holiday
17 Jan Duruthu Full Moon Poya Day Public Holiday
4 Feb National Day Public Holiday
16 Feb Navam Full Moon Poya Day Public Holiday
1 Mar Mahasivarathri Day Public Holiday
17 Mar Madin Full Moon Poya Day Public Holiday
13 Apr Sinhala and Tamil New Year's Eve Public Holiday
14 Apr Sinhala and Tamil New Year's Day Public Holiday
15 Apr Good Friday Public Holiday
16 Apr Bak Full Moon Poya Day Public Holiday
1 May May Day Public Holiday
2 May Special Bank Holiday Public Holiday
3 May Eid al-Fitr (Tentative Date) Public Holiday
15 May Vesak Full Moon Poya Day Public Holiday
16 May Day after Vesak Full Moon Poya Day Public Holiday
14 Jun Poson Full Moon Poya Day Public Holiday
10 Jul Eid al-Adha (Tentative Date) Public Holiday
13 Jul Esala Full Moon Poya Day Public Holiday
11 Aug Nikini Full Moon Poya Day Public Holiday
10 Sep Binara Full Moon Poya Day Public Holiday
8 Oct Milad-Un-Nabi (Holy Prophet's Birthday) Public Holiday
9 Oct Vap Full Moon Poya Day Public Holiday
10 Oct Special Bank Holiday Public Holiday
24 Oct Deepavali Public Holiday
7 Nov Ill Full Moon Poya Day Public Holiday
7 Dec Unduvap Full Moon Poya Day Public Holiday
25 Dec Christmas Day Public Holiday
26 Dec Special Bank Holiday 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.

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Minimum Wage

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

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Overtime Pay

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

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Health Examination Clause

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
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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

Termination Process

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.

Notice Period

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.

Severance Pay

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.

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