Remote Excellence Awards 2024 | Deadline closes 1 March 2024

Enter now
Remote’s guide to employing in

Sri Lanka
sri-lanka flag}

Make employment in Sri Lanka easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Sri Lanka, all in one easy-to-use platform.

  • Capital City

    Sri Jayawardenepura Kotte (legislative) Colombo (executive and judicial)

  • Currency

    Sri Lankan rupee (Rs, LKR)

  • Languages

    Sinhala, Tamil, and English

  • Population size

    21,803,000

  • Remote-Owned Local Entity

Services available in this country:
Employer of Record ProductContractor Management

Facts & Stats

Sri Lanka Map Illustration
  • Capital City

    Sri Jayawardenepura Kotte (legislative) Colombo (executive and judicial)

  • Currency

    Sri Lankan rupee (Rs, LKR)

  • Languages

    Sinhala, Tamil, and English

  • Population size

    21,803,000

  • Ease of doing business

    Medium

  • Cost of living index

    31.18 (2021)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    8%

  • GDP - real growth rate

    2.3% (2019)

The Democratic Socialist Republic of Sri Lanka is an island nation just off the coast of India, famous for its rich cultural heritage, unique biodiversity, and a long history of tea production. The natural beauty of Sri Lanka is becoming more of a magnet for tourists and digital nomads as the cost of living is relatively low (especially when you factor in the allure of the pristine beaches in the nation’s south). Sri Lanka has one of Asia’s most literate populations, the education system is strong, and English is widely spoken, so global employers should consider this country’s top talent.

Grow your team in Sri Lanka with Remote

Looking to employ workers in Sri Lanka? Companies hiring in Sri Lanka must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Remote can employ your team in Sri Lanka on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Sri Lanka team. You can also pay contractors now in Sri Lanka with Remote.

Risks of misclassification

Sri Lanka, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Sri Lanka may lead to fines and penalties for the offending company.

Employing in Sri Lanka

Provisions for employee protections and workers’ rights in Sri Lanka are spelled out across several government statutes, such as:

  • The Shop and Office Employees Act of 1956

  • The Factory Ordinance

  • The Minimum Wage Ordinance, and

  • The Maternity Benefits Ordinance

Employees in Sri Lanka enjoy protection against discrimination based on age, religion, gender expression, and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Sri Lanka.

Minimum Wage

The monthly minimum wage in Sri Lanka is fixed at 12,500 LKR and daily wage of worker is fixed at 500 LKR.

Onboarding Time

We can help you get a new employee started in Sri Lanka fast. The minimum onboarding time we need is only 18 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

26 Public holidays

Jan
Monday, January 15, 20241Pongal
Thursday, January 25, 20242Duruthu Poya
Feb
Sunday, February 4, 20243National Day
Friday, February 23, 20244Navam Full Moon Poya Day
Mar
Friday, March 8, 20245Maha Shivratri
Monday, March 25, 20246Madin Poya
Friday, March 29, 20247Good Friday
Apr
Thursday, April 11, 20248Id-Ul-Fitr (Ramazan Festival Day)
Friday, April 12, 20249Day prior to Sinhala & Tamil New Year Day
Saturday, April 13, 202410Sinhala & Tamil New Year Day
Tuesday, April 23, 202411Bak Full Moon Poya Day
May
Wednesday, May 1, 202412Labor Day
Thursday, May 23, 202413Vesak Poya Holiday
Friday, May 24, 202414Day following Vesak Full Moon Poya Day
Jun
Monday, June 17, 202415Id-Ul-Alha (Hadji Festival Day)
Friday, June 21, 202416Poson Full Moon Poya Day
Jul
Saturday, July 20, 202417Esala Full Moon Poya Day
Aug
Monday, August 19, 202418Nikini Full Moon Poya Day
Sep
Monday, September 16, 202419Milad-Un-Nabi (Holy Prophet's Birthday)
Tuesday, September 17, 202420Binara Full Moon Poya Day
Oct
Thursday, October 17, 202421Vap Full Moon Poya Day
Thursday, October 31, 202422Deepavali Festival Day
Nov
Friday, November 1, 202423Festival of Lights (Tentative)
Friday, November 15, 202424Ill Full Moon Poya Day
Dec
Saturday, December 14, 202425Unduvap Full Moon Poya Day
Wednesday, December 25, 202426Christmas Day

Want to see and manage all holidays? Sign up for our free HRIS!

Effortless HR in Sri Lanka: Take the Tour

Seamlessly Manage Your Workforce, from First Hire to Final Paycheck

Competitive benefits package in Sri Lanka

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

Our benefits packages in Sri Lanka are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Taxes in Sri Lanka

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Sri Lanka.

  • 12%

    Provident Fund

  • 3%

    Employee Trust Fund

Types of leave

Employees are entitled to 14 days of paid annual leave after they’ve worked an entire year with an employer.

Employment termination

Termination process

Employees can either be dismissed summarily - if just cause if provided - otherwise, termination must be in accordance with the terms stipulated in the employment contract. A decision to let an employee go must be approved by the Labour Commissioner.

Notice period

There is no minimum notice period under Sri Lankan law but it’s common to notify employees at least six months before termination.

Severance pay

Employees are only entitled to severance payment proportional to their tenure working with an employer — if they’re dismissed unfairly.

  • 2.5 months pay per year for years 1 - 5, capped at 12.5 months pay

  • 2 months pay per year for years 6 - 14, capped at 30.5 months pay

  • 1.5 months pay per year for years 15 - 19, capped at 38 months pay

  • 1 month pay per year for years 20 - 24, capped at 40 months pay

  • Half a month’s pay per year for years 25 - 34, capped at 48 months pay

Probation periods

Probation periods range from six months for general staff, to 12 months for technical or supervisory staff.

Fair Pricing in Sri Lanka

Employer of Record

Hire and pay your global team

Starting at $599/month

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localized benefits

Contractor Management

Compliantly onboard and pay contractors

$29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localized contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

$50

per employee/month

Top features

  • Reduce costs by centralizing payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labor authority reporting handled for you

HRIS

Manage all of your employees in one place

Free
Sign up

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app