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Labor Laws in Sri Lanka

  • Annual Leave: 14 days
  • Public Holidays: 21
  • Maternity Leave: 84 days.
  • Workweek: Maximum 45 hours per week.

Income Tax in Sri Lanka

Sri Lanka has progressive income tax rates from 6% to 36%.

Value Added Tax (VAT) in
Sri Lanka

The standard VAT rate is set at 18%.

Social Security in Sri Lanka

In Sri Lanka, social security contributions are mandatory for employers and employees, primarily through the Employee Provident Fund (EPF) and the Employee Trust Fund (ETF).

Employee Provident Fund (EPF)

  • Employer Contribution: 12% of each employee’s monthly earnings.
  • Employee Contribution: 8% of the employee’s monthly earnings, deducted from their salary.

Employee Trust Fund (ETF)

  • Employer Contribution: 3% of each employee’s monthly earnings.
  • Employee Contribution: There is no contribution required from employees for the ETF.

Work Visas in Sri Lanka

Here are the main work visas available in Sri Lanka:

Employment Visa

  • Purpose: For foreign nationals who have secured employment in Sri Lanka.
  • Application Process:
    • Obtain entry visa approval from the Department of Immigration in Colombo.
    • Collect the entry visa endorsement from a Sri Lankan diplomatic mission.
    • Upon arrival, apply for the employment visa endorsement at the Department of Immigration.
  • Eligibility: Requires a valid job offer and necessary documentation from the employer.

Residence Visa for Employment

  • Purpose: Issued to non-Sri Lankans for long-term employment in Sri Lanka.
  • Requirements: Similar to the employment visa, this requires prior entry visa approval and documentation confirming employment.
  • Validity: Typically valid for one year and renewable annually.

Business Visa

  • Purpose: For short-term business activities such as meetings, training programs, or conferences.
  • Duration: This can be extended for up to one year but is not intended for long-term employment.

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