Hire in Sri Lanka

The Democratic Socialist Republic of Sri Lanka (formerly Ceylon) lies in the Indian Ocean, southwest of the Bay of Bengal, and southeast of the Arabian Sea. The island country is separated from the Indian subcontinent by the Gulf of Mannar and the Palk Strait. It covers 65,600 square kilometers, largely made up of coastal plains in the north, and hills and mountains in the south-central interior. The main industries are the processing of agricultural produce largely rubber, tea, coconuts, and tobacco. Sri Lanka’s top trading partners are India, China, and the United States. A leading tea producer and exporter, Sri Lanka also exports apparel, coffee, and spices. The services sector is the leading employer (46%), followed by industry (30%), and agriculture (24%).

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Sri Lanka.

Onboard your talent in Sri Lanka

in 10 minutes

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Accelerated onboarding

Fast-track your talent onboarding while ensuring 100% compliance with local regulations. using an Employer of Record in Sri Lanka

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Net salary calculator

Calculate net salary post deductions and compare it with the salary in other countries instantly.

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Guidance & payroll management

Receive process support by an experienced team of experts & pay your talent on time and in their local currency, ideal for companies looking to hire employees or contractors in Sri Lanka

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Hire in Sri Lanka through an

EOR

Easily onboard your remote talent in Sri Lanka through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.

A quick overview of Sri Lanka

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Cost of living index

$$ (119 of 139 countries)

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Currency

Sri Lankan rupee (Rs, LKR)

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Payroll frequency

Monthly

Basic facts

The Democratic Socialist Republic of Sri Lanka (formerly Ceylon) lies in the Indian Ocean, southwest of the Bay of Bengal, and southeast of the Arabian Sea. The island country is separated from the Indian subcontinent by the Gulf of Mannar and the Palk Strait. It covers 65,600 square kilometers, largely made up of coastal plains in the north, and hills and mountains in the south-central interior. The main industries are the processing of agricultural produce largely rubber, tea, coconuts, and tobacco. Sri Lanka’s top trading partners are India, China, and the United States. A leading tea producer and exporter, Sri Lanka also exports apparel, coffee, and spices. The services sector is the leading employer (46%), followed by industry (30%), and agriculture (24%).

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Sri Lanka.

Capital

Colombo; Sri Jayawardenepura Kotte.

Official language/s

Sinhala, Tamil

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Population

21.91 million (2024 est.)

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VAT - standard rate

8%

The national holidays mentioned below are valid for the year 2026 and are critical for hiring in Sri Lanka planning:

The national holidays mentioned below are valid for the year 2026.

January 3Tamil Thai Pongal Day
January 15Duruthu Full Moon Poya DayMovable
February 1Navam Full Moon Poya DayMovable
February 4National Day
February 15Mahasivarathri DayMovable
March 2Madin Full Moon Poya DayMovable
March 21Id Ul-FitrMovable
April 1Bak Full Moon Poya DayMovable
April 3Good FridayMovable
April 13 - 14Sinhala & Tamil New Year HolidayMovable
May 1May Day
May 1Vesak Full Moon Poya DayMovable
May 2Day following Vesak Full Moon Poya DayMovable
May 28Id Ul-AlhaMovable
May 30Adhi Poson Full Moon Poya DayMovable
June 29Poson Full Moon Poya DayMovable
July 29Esala Full Moon Poya DayMovable
August 26Milad un-NabiMovable
August 27Nikini Full Moon Poya DayMovable
September 26Binara Full Moon Poya DayMovable
October 25Vap Full Moon Poya DayMovable
November 8DeepavaliMovable
November 24Ill Full Moon Poya DayMovable
December 23Unduvap Full Moon Poya DayMovable
December 25Christmas Day

The approximate time for sharing the contract with an employee in Sri Lanka is 6 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • The law does not deal with notice periods relating to individual dismissals. Notice periods for individual dismissals must be stipulated in the contract of employment.
  • Labor laws do not provide a statutory provision for the duration of the probationary period.
  • There is no statutory provision for parental and paternity leave.
  • Colombo is the executive and Judicial Capital while Sri Jayawardenepura Kotte is the legislative Capital.

 

Benefits Employer Contributions
Employee Provident Fund 12%
Employee Trust Fund 3%
Social security contributions on annual turnover exceeding LKR 120 million 2.5% (effected from April 1, 2022)

Working Hours

The normal working hours are eight hours per day and are not to exceed 45 hours per week. One-hour rest breaks must be given between the hours of 11.00am and 2.00pm where employees work during the daytime.

 

Overtime

Overtime is not to exceed 12 hours in any one week. Overtime pay is 150% of the rate of ordinary pay.

Probation Period

There is no legislated probation period. The Act provides for the employer to clearly state the probation period, the terms governing it, and the circumstances under which the employee may be terminated during the probation period. In practice, probation periods are six months to a year.

 

Termination Notice Period

There is no statutory notice period for individual dismissals. Individual notice periods, or payments in lieu of notice of dismissal, are stipulated in the contract of employment.

For collective dismissals, at least one month’s prior notice applies prior to retrenching employees that have served the employer for at least one year.

Working Hours

The normal working hours are eight hours per day and are not to exceed 45 hours per week. One-hour rest breaks must be given between the hours of 11.00am and 2.00pm where employees work during the daytime.

 

Overtime

Overtime is not to exceed 12 hours in any one week. Overtime pay is 150% of the rate of ordinary pay.

Probation Period

There is no legislated probation period. The Act provides for the employer to clearly state the probation period, the terms governing it, and the circumstances under which the employee may be terminated during the probation period. In practice, probation periods are six months to a year.

 

Termination Notice Period

There is no statutory notice period for individual dismissals. Individual notice periods, or payments in lieu of notice of dismissal, are stipulated in the contract of employment.

For collective dismissals, at least one month’s prior notice applies prior to retrenching employees that have served the employer for at least one year.

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Benefits Employer Contributions
Employee Provident Fund 12%
Employee Trust Fund 3%
Social security contributions on annual turnover exceeding LKR 120 million 2.5% (effected from April 1, 2022)