How to hire tech talent in Sri Lanka
There are four ways to hire in Sri Lanka: through an employer of record, as contractors, through a dedicated team run by a Sri Lankan company, or through your own local company. For fewer than ten people, an employer of record or a partner team is fastest and needs no local entity. Past a few dozen people, most companies register their own.
Last reviewed 10 October 2026. This is general information, not legal advice.
The four routes compared
| Route | Best for | You need | Trade off |
|---|---|---|---|
| Employer of record | 1 to 10 people you manage directly | A contract with a provider. Deel, Remote, G-P and Multiplier list Sri Lanka | A monthly fee per person, and you do your own recruiting |
| Contractors | Short projects and specialists | A services contract and a way to pay abroad | Less commitment on both sides. Check misclassification risk with an adviser |
| Dedicated team from a partner | 5 to 100 people, fast | A services agreement with a Sri Lankan company such as those in our directory | You pay a margin. The partner handles hiring, HR, space and retention |
| Your own company | Long term centres of 30 people or more | A registered company, a local secretary, payroll and an office. See the setup guide | Most control and lowest unit cost, most work to start |
Steps that work
Define the roles
Stack, seniority, hours of overlap you need and the budget range. The salary guide gives current ranges.
Pick the route
Small and direct, or a partner team. Decide before you interview, because it changes who employs the person.
Meet people
Ask us for introductions, or talk to two or three partner companies and compare.
Employment basics to know
- Working time: a 9 hour day including a one hour break, up to 45 hours a week, under the Shop and Office Employees Act (De Saram employment law guide).
- Leave: 14 days annual leave from the third calendar year and 7 days casual leave. Maternity leave is 84 paid working days.
- Probation: up to 180 days, extendable once.
- Notice: there is no statutory minimum. It is set in the contract.
- Contributions: employer EPF 12% and ETF 3%. Employee EPF 8%.
- Termination: for employers with 15 or more staff, non disciplinary termination of someone with over 180 days of service needs written consent or approval from the Commissioner of Labour (Termination of Employment of Workmen Act). Compensation follows a formula capped at LKR 2.5 million (De Saram).
- Income tax: the first LKR 150,000 a month is tax free, then bands from 6% to 36% apply (Inland Revenue notice, March 2025).
The termination rules are the part foreign employers most often miss. Hire carefully, use the probation period properly, and take local advice before ending a contract.
Skip the search
Tell us the roles and we will introduce people or partner teams who fit.
Common questions
Can I hire in Sri Lanka without setting up a company?
Yes. An employer of record employs the person locally on your behalf. Deel, Remote, G-P and Multiplier all list Sri Lanka. You can also contract individuals directly or take a dedicated team from a Sri Lankan company.
What are the statutory employer contributions in Sri Lanka?
12% of gross earnings to the Employees' Provident Fund and 3% to the Employees' Trust Fund. The employee contributes a further 8% to the provident fund from their salary.
How hard is it to terminate an employee in Sri Lanka?
Harder than in most Western countries. For employers with 15 or more staff, ending the employment of someone with over 180 days of service for non disciplinary reasons needs the employee's written consent or approval from the Commissioner of Labour, with compensation set by a published formula.
How long is probation in Sri Lanka?
Probation can run up to 180 days and can be extended once by the same period, according to law firm D. L. & F. De Saram.