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Sri Lanka has long been an enticing destination for businesses seeking global expansion. In 2022, the GDP of this country was recorded at US $74.4 billion.
One of the primary factors contributing to Sri Lanka's popularity among international companies is its extensive network of free trade agreements (FTAs). Sri Lanka’s FTAs with India, Pakistan, Singapore, and Egypt provide businesses preferential access to these important markets. This can significantly reduce trade barriers, such as tariffs and quotas, making it easier for enterprises to export their products and services.
However, to successfully expand your business in the region, you need more than just knowledge about the economic environment of Sri Lanka. It requires adherence to all the local laws and regulations, one of which includes the leave policy in Sri Lanka.
On that note, let’s examine some of the key provisions related to various types of leave in Sri Lanka, such as maternity leave, paternity leave, sick leave, and more.
Adoption Leave
Currently, there is no provision related to adoption leave in Sri Lanka.
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Talk to an expertEarned Leave
- Employees become eligible for paid annual or earned leave in Sri Lanka after completing at least one year of service.
- During the second year of employment, the duration of the first earned leave period is determined based on the date or month of joining.
- From the third year of employment onwards, employees are granted 14 days of earned leave in Sri Lanka.
Maternity Leave
- Maternity leave in Sri Lanka consists of 84 days of paid leave for every female employee.
- In situations where the employer offers a suitable place for nursing, female employees are to be provided with two nursing intervals, each lasting at least 30 minutes.
- If the employer does not furnish a suitable place for nursing, two nursing intervals are still required. However, each interval should last a minimum of one hour.
- Please note that these nursing intervals are in addition to any breaks or meal intervals provided to the female employees.
Parental Leave
The labor laws currently do not mandate parental leave in Sri Lanka.
Paternity Leave
- Employees working in the state or public sector are entitled to three paid days of paternity leave in Sri Lanka.
- The father can choose to avail this leave anytime within the first three months after the child’s birth.
Public Holidays
- In addition to the statutory eight public holidays in Sri Lanka, employees are entitled to 12 Full Moon Day holidays or Poya days. They include,
Sick Leave Policy
- Under the sick leave policy in Sri Lanka, in the initial year of employment, employees are entitled to accumulate one day of sick leave for every completed two months of service.
- Additionally, half a day of leave is accrued at the end of each month.
- Employees receive seven days of sick leave per year from the second year of employment.
- To avail of these leave entitlements, employees must provide a medical certificate issued by a registered medical practitioner in Sri Lanka.
Casual Leave
- Sick leave is commonly referred to as casual leave in Sri Lanka.
Unpaid Leave
- Employees may request unpaid leave in Sri Lanka for various reasons, such as childcare purposes, relocation, extended travel, or other personal matters.
- The duration of such leave, alongside any other conditions associated with it, is established by mutual agreement between the employer and employee.
Other Leaves
Here is the list of some other leave benefits that employees in Sri Lanka get:
Poya holiday
- Poya Holiday is a day off that shop and office workers in Sri Lanka get to avail themselves of on the day of the full moon.
- However, if any individual has to work on that day, they are entitled to a payment equating to at least 1.5 times their normal daily wage.
Bereavement leave
- The labor laws currently in force do not mandate bereavement leave in Sri Lanka.
Sabbatical leave
- Certain staff members in Sri Lanka, such as professors, lecturers, and librarians, are entitled to sabbatical leave.
- They can take a total of up to five years of sabbatical leave during their career.
Note: In Sri Lanka, there is no provision to carry forward unutilized leaves.
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From hiring to offboarding, you can now handle the entire employment lifecycle from Skuad’s comprehensive platform. This includes managing localized contracts, streamlining onboarding processes, administering benefits, and more!
Additionally, Skuad ensures 100% compliance with local laws so that you can hire confidently and avoid costly legal pitfalls. This includes leave policies as well. From standard vacation and sick leave to specialized leave categories, such as maternity, paternity, bereavement, and jury duty, we have got you covered!
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FAQs
Q1: How many leave days per year in Sri Lanka?
Ans: The total duration of annual paid leave or earned leave in Sri Lanka is 14 days.
Q2: What are the employee laws in Sri Lanka?
Ans: Employee laws or labor laws in Sri Lanka encompass various regulations and statutes aimed at protecting the rights and interests of employees. One of them includes the Shop and Office Employees Act. It covers several key aspects of employment, such as leave entitlements, working hours, and overtime, among others.
Q3: What is the notice period in Sri Lanka?
Ans: If an employee has completed one year of service or more, they are entitled to receive one month’s notice before their employment is terminated.
Q4: What is the overtime policy in Sri Lanka?
Ans: The total number of overtime hours that employees can clock in a single week is capped at 12 hours. Additionally, individuals who work overtime are entitled to receive compensation at a rate of one and a half times their average hourly wage rate.
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