Thriving Business, Vibrant Living

Capital: Colombo (executive & commercial), Sri Jayawardenepura Kotte (legislative)
Currency: Sri Lankan Rupee (LKR)
GDP (Nominal): ~US$98.96 billion (2024)
Population: Approximately 22 million (as of 2023)
Nationality: Sri Lankan
Languages: Sinhala (official), Tamil (official), English widely used
Major Religion: Buddhism

Sri Lanka offers a skilled, English-speaking, and cost-efficient workforce, supported by strong education outcomes and a growing professional talent pool. With experience across services, manufacturing, and technology-driven roles, the workforce is well suited for regional operations, shared services, and long-term employment models.
Employers benefit from high workforce stability, cultural alignment with international business practices, and clearly defined labour regulations, making Sri Lanka a reliable location for compliant workforce expansion.

Information Technology & Digital Services
Strong capabilities in software development, QA testing, IT support, fintech, and ERP systems. Sri Lanka is increasingly used for remote tech teams and regional IT hubs.

Finance & Accounting
Talent experienced in accounting, payroll processing, financial analysis, compliance, and shared services. Widely aligned with international accounting standards.

Business Process Outsourcing (BPO) & Shared Services
Skilled professionals in customer support, back-office operations, HR administration, and data processing, with strong English communication skills.

Manufacturing & Apparel
Experienced workforce in apparel, textiles, light manufacturing, quality control, and production management, supporting both export and domestic markets.

Tourism & Hospitality
Well-trained workforce in hotel management, travel services, food & beverage, and customer-facing roles, supported by strong service culture.

Agriculture & Plantations
Skilled labour in tea, rubber, coconut, and agri-processing sectors, forming a long-standing backbone of the national economy.

Contract of Employment

Employment relationships in Sri Lanka can be established verbally, through conduct, or in writing. For clarity and enforceability, it is strongly recommended that employment agreements be documented in writing, outlining terms of employment, remuneration, and responsibilities.

Probation Period

The Labour Law does not prescribe a statutory probation period. In practice, employers often include a probation period of around six months to assess a new employee’s suitability for permanent employment.

Hiring of Trainees

Under the Employment of Trainees (Private Sector) Act, No. 8 of 1978, companies may engage trainees or apprentices in formal training agreements. These agreements allow trainees to gain practical experience and are typically limited to one year.

Termination of Employment

Termination of employment for certain categories of workers is governed by the Termination of Employment of Workmen (Special Provisions) Act, No. 45 of 1971, as amended by Act No. 29 of 2021. For employees covered under this law, an employer cannot terminate employment without either:

• Written consent from the employee, or
• Prior approval from the Commissioner of Labour

These provisions ensure that employees in designated sectors are protected and that terminations follow due process.

Severance / End-of-Service Compensation

The Commissioner of Labour determines compensation for employees who are terminated under the above legislation. While some guidance documents suggest formulas based on length of service, there is no single statutory formula in the law itself. Employers should consult the Commissioner or legal counsel to determine entitlements for specific cases.

Work and Residence Permits (Expatriates)

Foreign nationals must obtain a valid visa to enter Sri Lanka. Visa types include:

• Transit Visa: Up to 2 days, for travelers passing through Sri Lanka.
• Visitor Visa: Up to 30 days for tourism, business, training, or attending conferences; extensions may be granted to a maximum of 90 days.
• Residence Visa: Allows non-citizens to reside, work, or study for up to one year; must be renewed annually for continued stay.

All foreign nationals intending to work in Sri Lanka must ensure they have the appropriate visa to comply with immigration and labour regulations.

Includes Public, Bank, Mercantile, and Full Moon Poya Holidays – subject to variation

* Public Holidays | † Bank Holidays | ‡ Mercantile Holidays

Notes:

• All Saturdays and Sundays are Bank Holidays.
• Holidays also apply to Postal, Customs, and Meteorological Departments.
• Full Moon Poya Days are approved by the Poya Committee and apply to all employees.
• Public and Bank Holidays are announced officially in the Government Gazette.
• All times are in Sri Lanka Standard Time (GMT +5:30).

Please find our Sri Lanka office address below:

No. 123, 2nd Floor, McLaren’s Building,
Bauddhaloka Mawatha, Colombo 04, Sri Lanka

Email: info@linkcompliance.com

—–
Disclaimer: The content provided on this website is intended for informational purposes only and should not be considered legal or professional advice. Link Compliance makes no representations or guarantees regarding the accuracy, completeness, or reliability of the information, including any translations or interpretations. Laws and regulations are subject to change, and their application may vary. Users are strongly encouraged to consult with a qualified professional or legal advisor to address any specific questions, concerns, or issues arising from the information presented.