Employer of Record Guide in 
Sri Lanka

Sri Lanka's growing tech sector and skilled workforce present exciting opportunities for global expansion, but navigating local employment laws requires careful attention to detail. Our comprehensive guide helps you understand the essentials of hiring compliantly in this dynamic South Asian market.

Capital City

Sri Jayawardenepura Kotte

Currency

Sri Lankan rupee (Rs රු)

Languages

Sinhala and Tamil

Population size

21,763,170
OVERVIEW

Key stats and facts

With a GDP per capita of $4,547 and major economic centers like Colombo and Kandy, Sri Lanka offers access to in-demand skills from software engineers to medical specialists. Understanding the local market dynamics, including the 6% federal tax rate and bilingual workforce, sets the foundation for successful hiring.

Major economic hubs

Colombo, Kandy, Galle, Jaffna, Hambantota

Skills in demand

Software Engineer, Data Scientist, Cybersecurity Specialist, Medical Specialist, Chartered Accountant

Currency

Sri Lankan rupee (Rs රු)

Language

Sinhala and Tamil

GDP per Capita

$4,547.67 USD per capita

Standard Tax Rate

6% federal

Your EOR guide in 
Sri Lanka

Employment compliance in Sri Lanka involves navigating specific requirements around payroll, leave policies, and worker protections that differ from other markets. This detailed breakdown covers everything from tax obligations to onboarding processes, giving you the clarity needed to hire with confidence.

Minimum Wage

DATA UNAVAILABLE - No information available about Sri Lankan minimum wage rates, effective dates, or recent changes. Sri Lankan Rupee (LKR) would be the expected currency.

Note: Writer should verify current minimum wage rates and any recent legislative changes in Sri Lanka.

Payroll Cycle

DATA UNAVAILABLE - No information available about standard payroll frequencies or legal requirements in Sri Lanka.

Note: Writer should confirm standard payroll practices and any mandatory payment schedules.

Individual Income Tax

DATA UNAVAILABLE - No information available about Sri Lankan tax brackets, rates, or tax year structure.

Note: Writer should verify current income tax rates and thresholds for Sri Lankan employees.

Tax Residency Criteria

DATA UNAVAILABLE - No information available about Sri Lankan tax residency requirements or criteria for foreign workers.

Employer Payroll Contributions

DATA UNAVAILABLE - No information available about Sri Lankan social security contributions, pension contributions, or total employer burden percentages.

Note: Writer should research Employees' Provident Fund (EPF) and Employees' Trust Fund (ETF) contribution rates.

Working Hours

DATA UNAVAILABLE - No information available about standard working hours, exemptions, or flexible working arrangements in Sri Lanka.

Overtime Pay

DATA UNAVAILABLE - No information available about Sri Lankan overtime rates, thresholds, or maximum overtime hours.

Bonus Payments

DATA UNAVAILABLE - No information available about legal requirements for bonuses or common bonus structures in Sri Lanka.

Full-Time vs. Part-Time

DATA UNAVAILABLE - No information available about classification thresholds or benefits differences in Sri Lanka.

Vacation Leave

DATA UNAVAILABLE - No information available about Sri Lankan annual leave entitlements, accrual methods, or payout requirements.

Sick Leave

DATA UNAVAILABLE - No information available about Sri Lankan sick leave entitlements, medical certificate requirements, or long-term disability provisions.

Maternity Leave

DATA UNAVAILABLE - No information available about Sri Lankan maternity leave duration, eligibility, job protection, or funding arrangements.

Parental Leave

DATA UNAVAILABLE - No information available about Sri Lankan paternity leave or parental leave provisions.

Bereavement Leave

DATA UNAVAILABLE - No information available about Sri Lankan bereavement leave requirements or qualifying events.

Personal & Family Leave

DATA UNAVAILABLE - No information available about Sri Lankan family responsibilities leave, emergency leave, or other personal leave provisions.

Summary

DATA UNAVAILABLE - Cannot provide leave summary table without Sri Lankan employment law data.

Termination Types

DATA UNAVAILABLE - No information available about Sri Lankan termination procedures for cause, without cause, or constructive dismissal.

Notice Period Requirements

DATA UNAVAILABLE - No information available about Sri Lankan notice requirements, pay in lieu options, or working notice provisions.

Severance Pay

DATA UNAVAILABLE - No information available about Sri Lankan severance calculation methods, requirements, or maximum obligations.

Probationary Periods

DATA UNAVAILABLE - No information available about standard probationary period lengths or termination rights during probation in Sri Lanka.

Final Pay Requirements

DATA UNAVAILABLE - No information available about Sri Lankan final pay timelines or required components.

Anti-Discrimination & Retaliation Laws

DATA UNAVAILABLE - No information available about Sri Lankan protected characteristics or complaint processes.

National Holidays

DATA UNAVAILABLE - No information available about Sri Lankan public holidays for 2025 or any other year.

Note: Writer should research Poya Days (Buddhist full moon holidays) and other religious observances specific to Sri Lanka.

Holiday Pay & Working on a Holiday

DATA UNAVAILABLE - No information available about Sri Lankan holiday pay requirements or premium rates for holiday work.

Required Documentation for Employment

DATA UNAVAILABLE - No information available about Sri Lankan employment contract requirements, tax forms, or work authorization procedures.

Note: Writer should verify requirements for National Identity Card (NIC) and other mandatory documentation.

Language Requirements

DATA UNAVAILABLE - No information available about Sri Lankan official languages or working language requirements.

Note: Writer should confirm requirements regarding Sinhala, Tamil, and English language use in employment contexts.

Background Checks & References

DATA UNAVAILABLE - No information available about permitted background checks or consent requirements in Sri Lanka.

Data Protection & Privacy

DATA UNAVAILABLE - No information available about Sri Lankan employee privacy rights or data protection requirements.

IP Assignment & Confidentiality

DATA UNAVAILABLE - No information available about Sri Lankan intellectual property ownership rules or required contract clauses.

Probation Period Setup

DATA UNAVAILABLE - No information available about standard probationary arrangements in Sri Lanka.

Onboarding Timeline

DATA UNAVAILABLE - Cannot provide timeline without Sri Lankan regulatory requirements.

What the EOR Handles

Borderless AI will handle all aspects of Sri Lankan employment compliance once proper research is completed, including:

  • Employment contracts compliant with Sri Lankan law
  • Local tax and social security compliance
  • Document collection and filing
  • Payroll setup and processing
  • Privacy and IP compliance
  • Local language legal formatting

Worker Classification: Employee vs Contractor

DATA UNAVAILABLE - No information available about Sri Lankan employee vs. independent contractor distinctions or misclassification penalties.

Unionisation & Collective Agreements

DATA UNAVAILABLE - No information available about Sri Lankan unionisation rights, collective bargaining, or union-heavy industries.

Cultural Norms & DEI Expectations

DATA UNAVAILABLE - No information available about Sri Lankan work culture, communication styles, or DEI expectations.

Note: Writer should research cultural considerations including religious observances, hierarchical workplace structures, and communication preferences.

Remote Work Considerations

DATA UNAVAILABLE - No information available about Sri Lankan remote work legal framework, employer obligations, or cross-border considerations.


RECOMMENDATION: New research specifically focused on Sri Lankan employment law and regulations is required to provide the comprehensive employment guide requested. The current research outputs contain detailed information about Albanian employment law, which is not applicable to Sri Lankan employment practices.

LEGAL VERIFICATION REQUIRED: All employment law information for Sri Lanka should be verified with qualified Sri Lankan legal counsel before implementation, as employment regulations can change frequently and vary significantly between countries.

Built-in benefits packages for
Sri Lanka

When the world is your competition, it pays to incentivize new hires and existing alike. Borderless AI benefits packages typically inlucde:

Medical Insurance

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Dental Insurance

United Healthcare
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Retirement Contribution

United Healthcare
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Life Insurance

United Healthcare
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Vision Insurance

United Healthcare
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