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.

Services available in this country:
Employer of Record ProductContractor Management
  • 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

Services available in this country:
Employer of Record ProductContractor Management
An aerial view of a tea plantation in sri lanka.

Employment termination in Sri Lanka

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.