Sri Lanka’s Labour Law & Employment Regulations

Sri Lanka is a strategically located island nation in South Asia, positioned along major Indian Ocean shipping routes that connect East Asia, the Middle East, and Europe. With a population of approximately 22 million (IMF), the country serves as a key commercial and logistics hub in the region, supported by ports such as Colombo, one of South Asia’s busiest transshipment ports.

Sri Lanka’s economy is underpinned by sectors including manufacturing, apparel, agriculture, logistics, and a growing services industry. The country offers a welleducated and cost-competitive workforce, with high literacy rates and strong professional capabilities across both skilled and semi-skilled roles. Sri Lanka’s employment framework is highly regulated, with comprehensive labour laws designed to protect employees and govern areas, making compliance a key consideration for employers operating in the market.