Answers: hiring, outsourcing and setting up in Sri Lanka
Short, sourced answers to the questions founders and CTOs ask us most. Each links to the page with the detail and the sources.
Hiring
Can foreign companies hire employees in Sri Lanka?
Yes. You can hire through an employer of record, contract individuals, take a dedicated team from a Sri Lankan company, or register your own company, which can be 100% foreign owned. More
How do I find software developers in Sri Lanka?
Tell us the roles and we introduce candidates or partner teams. You can also work with companies in our directory or recruit directly through an employer of record. More
What does a senior software engineer cost in Sri Lanka?
Roughly USD 10,800 a year at the local median and about USD 18,600 at export company pay levels, including 15% statutory contributions, on 2026 data. More
Do Sri Lankan developers speak English?
English is the working language of the export technology sector and of university level computing education. On the EF English Proficiency Index 2025 the general population ranks 73rd of 123 countries, so interview for it. More
What is the notice period in Sri Lanka?
There is no statutory minimum. It is set in the employment contract. More
How many public holidays does Sri Lanka have?
The 2026 government calendar lists 26 public holidays, of which 8 are mercantile holidays that apply to most private sector offices. More
Outsourcing
Is Sri Lanka good for IT outsourcing?
Yes, especially for long running product engineering, enterprise software and finance operations. It exported USD 1.645 billion of IT and business process services in 2025. More
What are typical outsourcing rates in Sri Lanka?
About USD 25 to 40 an hour for developers through Sri Lankan companies, according to the Export Development Board. More
What is a dedicated development team?
Engineers employed by a partner company who work only on your product and are managed day to day by you. More
How does Sri Lanka compare with other outsourcing destinations?
It is among the lower cost options, smaller than Vietnam or the Philippines, and below Eastern Europe on general English rankings, with a strong record in core product R&D. More
Setting up
Can a foreigner own a company in Sri Lanka?
Yes. IT and software companies can be 100% foreign owned, and profits can be repatriated. More
How long does it take to register a company in Sri Lanka?
About 7 to 14 working days. More
What is the corporate tax rate for IT exports in Sri Lanka?
15% on services exported and paid for in foreign currency, from 1 April 2025. The standard rate is 30%. More
What is Port City Colombo?
A special economic zone beside Colombo's business district where licensed companies operate in foreign currency and serve overseas clients. Tax incentives there depend on a separate designation. More
Do I need Board of Investment approval?
No. It is optional. Registration helps with investor approval, visas and facilitation. More
What is a global capability centre?
A company's own offshore operation, staffed by its employees. IFS, Sysco, Synopsys and EY run them in Sri Lanka. More
The industry
How big is Sri Lanka's IT industry?
USD 1.645 billion in IT and business process exports in 2025 according to the Export Development Board, with roughly 150,000 to 175,000 people employed. More
Which global tech companies are in Sri Lanka?
IFS, Sysco, Synopsys, Zebra Technologies, Virtusa, HCLTech, EY, HSBC, WNS and Michelin all run engineering or delivery operations there. More
What is Sri Lanka known for in tech?
Enterprise software and ERP, capital markets technology, and product companies such as WSO2 and Virtusa. The London Stock Exchange's trading platform was built in Colombo. More
What time zone is Sri Lanka in?
UTC+5:30 all year. More
Is Sri Lanka's economy stable enough to invest in?
It defaulted in 2022 and entered a 48 month IMF programme in March 2023. In May 2026 the IMF completed its fifth and sixth reviews and called performance generally strong, while noting that debt risks remain high. The technology export sector kept operating throughout. More