Sri Lanka vs Romania for software development and outsourcing
Romania combines EU membership with the best English score of any major outsourcing country, 11th in the world. Its IT workforce is about the size of Sri Lanka's and costs more: senior rates of USD 40 to 55 an hour against about USD 25 to 40. Romania removed its income tax exemption for IT workers in 2025. Choose Romania for EU jurisdiction and time zone. Choose Sri Lanka for cost and for enterprise software depth.
Last reviewed 10 October 2026. We publish from Sri Lanka, so we have tried to be hard on our own side. Every figure names its source.
| Sri Lanka | Romania | |
|---|---|---|
| Time zone | UTC+5:30, no daylight saving | UTC+2, UTC+3 in summer |
| English, EF index 2025 | 73rd of 123, score 486 (low band) | 11th of 123, score 605 (very high band) |
| Workforce | About 175,000 IT and BPM professionals (SLASSCOM, 2026) | 195,929 IT employees (ANIS, 2024) |
| Typical rates | About USD 25 to 40 an hour (Export Development Board). Asia senior average USD 31 to 41 (Accelerance 2026) | Senior USD 40 to 55 an hour (Uvik index 2026, vendor data) |
| Global Innovation Index 2025 | 93rd of 139 | 49th of 139 |
| Kearney services location index | 23rd of 60 (2021 edition) | 30th of 78 (2023 edition) |
Sources: EF English Proficiency Index 2025, Uvik rate index 2026, Accelerance 2026 rates guide, WIPO Global Innovation Index 2025, Kearney Global Services Location Index. Workforce figures count different things in each country and are not directly comparable.
Where Romania is stronger
- EU membership and a European working day.
- English: 11th in the world on the EF index.
- Engineering centres for Oracle, Microsoft and Amazon.
Where Sri Lanka is stronger
- Lower cost at similar workforce size.
- A 15% tax rate on exported services, against rising labour taxes in Romania.
- Core R&D for IFS, Sysco and Synopsys, and locally built companies sold to global buyers.
What to watch in each
- Romania: The IT income tax exemption ended on 1 January 2025 with no replacement, and the industry body says headcount has been flat since 2022. Source
- Sri Lanka: Outside the EU and three and a half hours ahead of Bucharest in summer.
Considering Sri Lanka alongside Romania?
Many companies run two locations. Tell us what you need and we will give you a straight view of whether Sri Lanka fits, and introduce people if it does.
Common questions
Is Sri Lanka or Romania better for software outsourcing?
Romania combines EU membership with the best English score of any major outsourcing country, 11th in the world. Its IT workforce is about the size of Sri Lanka's and costs more: senior rates of USD 40 to 55 an hour against about USD 25 to 40. Romania removed its income tax exemption for IT workers in 2025. Choose Romania for EU jurisdiction and time zone. Choose Sri Lanka for cost and for enterprise software depth.
Is Sri Lanka cheaper than Romania for software development?
Published rates for Sri Lanka are about USD 25 to 40 an hour according to the Export Development Board. For Romania: Senior USD 40 to 55 an hour (Uvik index 2026, vendor data). The sources use different methods, so treat the comparison as indicative and ask for quotes.
How does English in Sri Lanka compare with Romania?
On the EF English Proficiency Index 2025 Sri Lanka ranks 73rd of 123 countries. Romania: 11th of 123, score 605 (very high band). The index tests the general adult population. Sri Lanka's export technology sector works in English.