Sri Lanka

HR and HR Software Guide

Country Overview

Sri Lanka, with a per capita GDP of around $12,811 (Purchasing Power Parity), has a steady annual growth averaging nearly 4.2% compound annual growth over the last 5 years. Major economic sectors include tea export, tourism, textile, apparel, rice, and agricultural products. Sri Lanka has made a notable transition to relative stability and continues to focus on fiscal reforms, improved financial management, increased public and private investment, and better service delivery. Economic transformation and political reconciliation have bolstered competitiveness and long-term development.

Currency: Sri Lankan Rupee

Principal Language: Sinhalese and Tamil

Government: Semi-presidential Representative Democratic Republic

Capital City: Colombo

Major Provinces: Dehiwala-Mount Lavinia, Kandy

The regular work schedule comprises 8 hours per day and 45 hours in a week. Any work done beyond these schedules is considered overtime and is generally compensated by a minimum of 125% of the regular pay. Employees cannot perform overtime work for more than 12 hours in a week. Overtime does not apply to individuals working in an executive capacity.

Holidays

The following public holidays are observed in Sri Lanka:

  • Tamil Thai-Pongal
  • National Day
  • Milad-Un-Nabi (Holy Prophet’s Birthday)
  • Day preceding the Sinhala and Tamil New Year
  • Sinhala and Tamil New Year Day
  • May Day
  • Day after the Vesak Full Moon Poya Day
  • Christmas Day

Annual Leave
Employees are entitled to 14 days’ annual leave after completing 1 year of employment. Out of these 14 days, 7 days must be taken on consecutive days.

Maternity Leave
Women employees are entitled to 84 days’ maternity leave for the birth of their 1st or 2nd child. The leave can be taken for 14 days before the expected date of delivery and 70 days after that. For the birth of the 3rd child, employees are entitled to 42 days’ maternity leave out of which 14 days can be taken before the expected date of delivery and 28 days after that.

Casual leave
Employees are entitled to 7 days’ casual leave for ill health and other reasonable causes.

Pension and Social Security

Old-age Pension

  • Old-age Benefit (Provident Fund)
    A consolidated amount based on contributions from employees and employers along with accrued interest is paid as an old-age benefit. The interest is paid at 11% per annum. The Monetary Board of the Employees’ Provident Fund adjusts the interest rate periodically which cannot be less than 2.5%.
  • Old-age Benefit (Trust Fund)
    A consolidated amount based on contributions from employees and employers plus accrued interest is paid. The benefit is paid after a 5-year waiting period if an employee changes job.

Permanent Disability Benefits

  • Disability Benefit (Provident Fund): A consolidated amount based on contributions from employees and employers plus accrued interest is paid as a disability benefit. The interest is paid at 11% per annum.
    The Monetary Board of the Employees’ Provident Fund adjusts the interest rate periodically which cannot be less than 2.5%.
  • Disability Benefit (Trust Fund): A consolidated amount based on contributions from employees and employers plus accrued interest is paid.

Survivor Benefits

  • Survivor Benefit (Provident Fund): A consolidated amount based on contributions from employees and employers plus accrued interest is paid to eligible survivors. The interest is paid at 11% per annum.
    The Monetary Board of the Employees’ Provident Fund adjusts the interest rate periodically which cannot be less than 2.5%.
  • Survivor Benefit (Trust Fund): A consolidated amount based on contributions from employees and employers plus accrued interest is paid.

Simplify workforce management in Sri Lanka with Mihi HR Software.

  • Accelerate employee onboarding with established workflows and guided processes that allow your new employees to hit the ground running from day one.
  • Improve employee time tracking and leave management while ensuring compliance with local labor laws and work-time regulations.
  • Store, manage, and track employee data on a single, secure system. Improve access and visibility, while built-in guidelines help you maintain legal compliance and audit readiness.
  • Turn workforce data into actionable insights with extensive HR reporting and analytics. Make better, more informed decisions and accurately assess the status of your global teams.
  • Provide your employees with the support they need with 24/7 access to our Employee Helpdesk.
  • One HR software for your global needs
  • Ensured compliance with in-country employment and labor laws
  • Connectivity and integrations with ERP and Payroll systems
  • Better workforce data and increased visibility of global teams
  • Supporting 170+ countries and localized in 17+ languages
  • Improved employee experience with employee self-service functionality and 24/7 employee support

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