Sri Lanka has a population of more than 21 million people, with key industries including tourism, tea, and mining. Companies doing business in Sri Lanka can encounter obstacles related to company registration and payroll. Some key payroll and labor considerations include:

  • Minimum wage is LKR 10,000 per month ($55 USD)
  • Work contracts are not required in writing, unless the employee is considered a Shop and Office worker according to the Regulation of Employment and Renumeration office
  • Social security taxes are withheld from employee pay
  • There are 2 social security funds indlucing the Employees Trust Fund and the Employees Provident Fund
  • Sri Lanka uses a PAYE (pay-as-you-earn) tax collection method each month
  • Foreign workers need a residence visa and work permit to live and work in Sri Lanka

Blue Marble has simplified payroll in Sri Lanka with cloud-based technology and customized reporting to view your payroll in real-time. We have in-country experts to help when questions come up so you can maintain compliance with evolving regulations. To get started in Sri Lanka, or improve existing operations, click here to learn more