Living in Sri Lanka: A Guide To Moving To Sri Lanka As An Expat

Perched off the coast of India, Sri Lanka is an island nation with a rich cultural tapestry, low cost of living and tropical climate. Sri Lanka’s diverse landscapes – which range from pristine beaches to misty mountains – offer a captivating backdrop for expats seeking both adventure and tranquillity.

However, like any international relocation, expats in Sri Lanka should take the time to prepare for their change in lifestyle. Navigating cultural intricacies, acclimatising to the tropical climate, and adjusting to a different pace of life may pose initial obstacles and perhaps even a touch of culture shock. 

To help you make the most of your big move, we’ve written down everything you need to know about moving to Sri Lanka in this handy expat guide – including where to live, information on the cost of living and how to choose the right international health insurance policy.

This guide on living in Sri Lanka covers

1. What to expect from living in Sri Lanka as an expat
2. Language in Sri Lanka
3. Cost of living in Sri Lanka
4. Healthcare in Sri Lanka
5. Where to live in Sri Lanka as an expat
6. Jobs, visas and working in Sri Lanka
7. Your handy ‘moving to Sri Lanka’ checklist

Seema Malaka Temple in Colombo, Sri Lanka // GETTY IMAGES

Life in Sri Lanka: What to expect from living in Sri Lanka as an expat

What is life in Sri Lanka like?

Sri Lanka offers a unique expat experience in a developing yet thriving environment. Over the last two decades, Sri Lanka has shown huge economic progress, transitioning from a low-income status to low-middle income with its GDP now sitting around US$88.93 billion, growing at an annual rate of around 3.3%. Sri Lanka’s towns and cities, particularly its capital Colombo, are now evolving into bustling hubs of industry, commerce and culture, attracting an increasing number of tourists and expats alike.

When it comes to religion, Sri Lanka is a largely Buddhist country, with Buddhists accounting for 70.2% of the population. There are also Hindu (12.6%), Muslim (9.7%), and Christian communities (7.4%). Thanks to this diversity, you’ll find various festivals celebrated publicly in Sri Lanka, including Vesak (Buddhist), Thai Pongal (Hindu), Eid al-Fitr (Muslim), and Christmas (Christian), adding vibrant colours and traditions to the expat experience.

Sri Lanka’s tropical climate is another plus, promising temperatures ranging from 23°C to 35°C year-round. The island has two monsoon seasons – the Southwest Monsoon (May to September) and the Northeast Monsoon (November to March).

Overall, expats moving to Sri Lanka can expect to enjoy a laid-back lifestyle with ample access to fresh food and meat. The social scene is vibrant, with thriving nightlife in larger centres, offering a mix of cultural experiences at a low cost of living compared to Western standards. While public transport might be somewhat limited, especially outside major cities, the allure of the landscape and the friendly atmosphere contribute to a unique and fulfilling expat life.

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Is Sri Lanka safe for expats?

Yes, Sri Lanka is generally considered a safe destination for expats. While the country has experienced periods of political and civil unrest in the past, notably during the civil conflict that ended in 2009, the overall security situation has significantly improved.

How is the political situation in Sri Lanka?

Sri Lanka’s political landscape is marked by notable challenges. The nation has experienced a number of shifts in leadership over the last decade, while also grappling with economic difficulties, including high levels of debt.

The handling of the COVID-19 pandemic has added an additional layer of complexity, impacting both public health and the economy. Public protests and demonstrations have reflected public concern about governance, economic issues, and social justice. However, on the whole, the political situation in Sri Lanka seems to be settling down.

Sri Lanka has a democratic political system, where the prime minister is publicly elected by popular vote every five years. Prime Minister Dinesh Gunawardena is currently in office, having been elected in 2022.

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Language in Sri Lanka

Sri Lanka is home to several ethnic communities, each with its own languages and dialects. Sinhala and Tamil are the official languages of Sri Lanka, with Sinhala spoken by 87% of the population and Tamil spoken by 28.5%. Both languages have their own scripts, adding to the unique linguistic landscape of the country.

English is also widely spoken, especially in urban areas, and for administrative, educational, and business purposes. Many Sri Lankans are proficient in English, making it easier for expats to navigate daily life, conduct business, and interact with the local community.

For expats moving to Sri Lanka, a basic understanding of Sinhala or Tamil can enhance the overall experience and make communicating with locals easier.

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Cost of living in Sri Lanka

The low cost of living in Sri Lanka makes it easy for expats and digital nomads to enjoy a high quality of life. As of 2024, the cost of living in Sri Lanka is around 49.3% lower than in the United Kingdom, with monthly costs for a single person coming in at around US$466.98 before rent.

This being said, when budgeting, expats moving to Sri Lanka should also think about any additional costs they may need to factor in, such as fees for independent schools, healthcare costs and international health insurance.

To get a better idea of day-to-day costs, here’s a look at the cost of basic groceries in Sri Lanka:

Amenity

Average cost (US$)*

Milk (1l)

$1.48

Loaf of bread

$0.59

Rice (1kg)

$0.72

12 eggs

$1.95

Local cheese (1kg)

$10.56

Chicken fillets (1kg)

$4.66

1.5 litre bottle of water

$0.51

Bottle of wine

$11.03

Domestic beer

$1.62

Imported beer

$2.37

*As of January 2024, Numbeo

Household bills are fairly reasonable across Sri Lanka. These are the average costs of bills in the Sri Lankan capital, Colombo (not including rent):

Utilities (monthly)

Average cost in Colombo, Sri Lanka (US$)*

Basic utilities (electricity, heating, cooling, water, garbage) for 85m2 apartment

$44.63

Mobile phone monthly plan with calls and 10GB+ data

$5.22

Monthly home internet bill

$12.64

*As of January 2024, Numbeo

The cost of eating out is also very inexpensive, making it easy for expats to enjoy all of Sri Lanka’s culinary delights. Here are some average costs for eating out in the capital city:

Restaurants

Average cost in Colombo, Sri Lanka (US$)*

Meal for two people at a mid-range restaurant, three-course

$20.48

Combo meal at a fast-food restaurant

$7.59

Domestic beer, 0.5l draught

$1.64

Cappuccino

$2.10

*As of January 2024, Numbeo

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How do I open a bank account in Sri Lanka?

Opening a bank account in Sri Lanka should be a simple process so long as you have all the necessary documents to hand.

Most banks prefer expats to visit a branch in person, though some may also offer online applications.

Some of the prominent banks in Sri Lanka include Bank of Ceylon, Commercial Bank of Ceylon, Hatton National Bank, and Sampath Bank. 

To open a bank account in Sri Lanka, you will need to provide the following documents:

• Passport: Ensure your passport is valid for at least six months on the date you apply.
• Visa or Work Permit: A copy of a valid visa or work permit, allowing you to reside and work in Sri Lanka.
• Proof of Residence: This can include a utility bill or rental agreement confirming your local address.
• Proof of Identity: A secondary proof of identification, such as a driver’s licence or national ID card.
• Proof of Income: You may also need to provide a letter from your employer or a copy of your work contract, confirming your employment status and income.
• Bank Deposit: Most banks in Sri Lanka require a minimum deposit of LKR 157,725/US$500 for savings accounts and LKR 316,075 /US$1,000 for fixed deposit accounts, though this amount can vary depending on the bank and specific account type.

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A tropical beach in Tangalle, Sri Lanka // GETTY IMAGES

Healthcare in Sri Lanka

Expats living in Sri Lanka can benefit from a government and tax funded public healthcare system, giving them access to government hospitals and clinics. However, the quality of care in public healthcare facilities can vary, with long wait times and limits on the quality and access to some medicines and treatment options. 

Private healthcare is a popular alternative for expats in Sri Lanka offering higher standards of service, modern facilities, and shorter waiting times. Major cities, such as Colombo, Kandy, and Galle, have private hospitals and clinics that offer a wide range of medical services.

English is widely spoken among medical professionals in Sri Lanka, making communication with healthcare providers more accessible for expats, saving stress and confusion in times of need.

Do I need international health insurance in Sri Lanka?

It’s a good idea for expats in Sri Lanka to invest in international health insurance. This cover can help offset the costs of private medical treatment and ensure access to quality healthcare in all situations. Expats should also look for health insurance that covers the cost of medical evacuation if necessary, particularly if living in remote areas.

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Where to live in Sri Lanka as an expat

Expats moving to Sri Lanka are spoilt for choice when it comes to choosing a place to settle. From the bustling capital, Colombo, to Sri Lanka’s surfing hotspots along the east coast. Here are the best places to live in Sri Lanka as an expat.

Colombo

Sri Lanka’s capital city, Colombo is an obvious choice for expats. Expats in Colombo can expect a dynamic urban lifestyle with modern amenities and ample job opportunities, particularly if they are seeking employment as skilled workers.

With a mix of high-rises and colonial architecture, Colombo offers diverse neighbourhoods that cater to different lifestyles. For families, there are plenty of good international schools in Colombo, while students in the city can enjoy vast shopping malls and a thriving nightlife. 

The average rent for a one bedroom apartment in Colombo city centre is US$306.88 per month. 

Galle

Known for its well-preserved Dutch colonial architecture, charming cobblestone streets, and the iconic Galle Fort, this UNESCO World Heritage city offers a tranquil yet culturally rich lifestyle.

Expats in Galle can enjoy the coastal breeze, pristine beaches, and a vibrant arts scene. The city’s expat community is drawn to its relaxed atmosphere, historic surroundings, and a variety of boutique shops and cafes.

The average rent for a one bedroom apartment in Galle city centre is US$70.88 per month.

Matara

Positioned on Sri Lanka’s southern tip, Matara is ideal for expats searching for a quieter pace of life. One of Sri Lanka’s most stunning coastal locations, expats can settle down surrounded by white beaches and tropical landscapes.

Matara’s expat-friendly atmosphere also comes with endless activities, including a range of water sports, and thriving local markets that bring the community together. 

The average rent for a one bedroom apartment in Matara city centre is US$126.02 per month.

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Arugam Bay

For expats who are out to catch the waves, Arugam Bay on the east coast is a surfer’s haven. Known for its consistent surf breaks, sandy shores, and a laid-back atmosphere, Arugam Bay offers a unique lifestyle by the sea.

Expats in Arugam Bay will find themselves immersed in a beach-centric culture, with surfing, yoga, and beachside cafes defining the local scene. The close-knit expat community here enjoys a relaxed lifestyle with a coastal backdrop.

Kandy

Cradled in the central highlands, Kandy is a city that blends cultural richness with scenic beauty. Surrounded by misty mountains and a picturesque lake, Kandy appeals to expats who would prefer a slightly cooler climate and a taste of traditional Sri Lankan heritage.

With its historic temples, lush botanical gardens, and the annual Esala Perahera festival, Kandy allows expats to become truly immersed in Sri Lankan culture. 

The average rent for a one bedroom apartment in Kandy city centre is US$137.83 per month.

Can expats buy property in Sri Lanka?

Yes, but with restrictions.

Foreign nationals can buy apartments and condominiums, however land cannot be purchased via freehold, and leasehold purchases are capped at 99 years. That said, there are a few loopholes.

Under current legislations, foreign nationals can buy property in Sri Lanka by: 

• Leasing the property
• Inheriting the property
• Receiving property as a gift from parents
• Purchasing as part of a private company with a local shareholding of 50% or above
• Purchasing as part of a locally listed public company 
• Obtaining dual citizenship  

If you have your heart set on buying property in Sri Lanka, you can speak to a local property advisor to discuss the options, however be prepared that the process may be long and convoluted.

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A group of elephants bathing at Pinnawala Elephant Orphanage in Sri Lanka // GETTY IMAGES

Jobs, visas and working in Sri Lanka

What is the average salary in Sri Lanka?

The average salary in Sri Lanka is well below what you might expect to earn in most Western countries. In 2023, the average salary in Sri Lanka was just LKR 90,100/US$285 per month. For this reason, many expats living in Sri Lanka tend to work remotely for foreign companies. 

Expats who do find roles working in Sri Lankan companies often bring specialist skills or expertise that are not readily available within the local workforce. English teaching, management positions, and roles in international organisations or NGOs are some examples where expats might find opportunities.

How much tax will I pay in Sri Lanka?

The amount of tax you can expect to pay as an expat living and working in Sri Lanka will depend on your residency status, income, and the type of income you earn. For example, non-residents are taxed only on their Sri Lanka-sourced income, while those with residency status are taxed on their worldwide income. 

As of the 2023/2024 assessment year, Sri Lanka has implemented a revised personal income tax (PIT) structure. Notably, the tax-free threshold has been increased from LKR 100,000 to LKR 150,000 per month (US$335 to US$510) .

For individuals earning up to LKR 250,000 (US$845) per month, the tax burden has been significantly reduced. For instance, an individual with a monthly income of LKR 200,000 (US$675) previously paid 5.25% (LKR 10,500/US$36) in taxes. Under the new structure, this has decreased to 1.5% (LKR 3,000/US$10).

However, it’s important to note that individuals earning over LKR 308,333 (US$1,044) per month are now subject to a 36% tax rate, which is reached at a relatively lower income threshold compared to other South Asian countries.

For the most accurate and up-to-date information on personal income tax rates and regulations, it is advisable to consult the Inland Revenue Department of Sri Lanka’s official publications.

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Do I need a visa to live and work in Sri Lanka?

If you are planning to live and work in Sri Lanka you will need to apply for a visa before travelling to the country. The specific requirements and processes for visas can vary based on your nationality, the nature of your work and the durations of your stay. 

It’s best to check with the Sri Lanka Department of Immigration and Emigration to find the visa that’s right for you.

Here are the general steps you’ll need to follow to get a work and residence visa as an expat in Sri Lanka:

Work visa 

Your employer in Sri Lanka will usually initiate the work visa application on your behalf. The employer may need to provide supporting documents, such as a letter of appointment, details of the job, and proof of their business registration, along with personal documents verifying your identity. 

A work visa will usually have an expiry date, allowing you to live and work in Sri Lanka for a specified period.

Residence visa

Residence visas are for expats or digital nomads who intend to live in Sri Lanka for an extended period, while not being necessarily tied to official employment.

To have a residence visa approved, you’ll need to provide proof of accommodation, financial means and proof of identity.

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Your handy ‘moving to Sri Lanka’ checklist

Before moving to Sri Lanka, make sure you check the following:

Accommodation

• ☐ Have you researched places you’d like to live?
• ☐ Has your employer secured your accommodation?
• ☐ If you’ve found an apartment or house you’d like to rent, have you contacted the company offering the accommodation?
• ☐ If you’ve agreed a place to live, have you received your rental agreement?

Work

• ☐ Have you received a job offer from a suitable employer?
• ☐ Alternatively, do you have proof of income and your eligibility to work overseas from your existing employer?
• ☐ Have you started your application for your residency visa?
• ☐ Do you have the proof of income or proof of savings required to apply for a visa?

Healthcare

• ☐ Have you found your local public health service in Sri Lanka, and are you aware of any costs of using that service?
• ☐ Have you taken out international health insurance before moving to Sri Lanka?
• ☐ Have you looked into other forms of health insurance to support your life in Sri Lanka, such as life insurance and income protection?
• ☐ Does your health insurance cover emergency evacuation to another country with better medical facilities?

Banking

• ☐ Do you have all the paperwork necessary to complete your application for a bank account?
• ☐ Do you have the minimum deposit available in cash?

Relocation

• ☐ Have you researched the cost of relocation? If you’re bringing your own furniture from home, have you received a reliable quote from a shipping company?
• ☐ Have you looked into schooling for your children? If you are relying on state education, you may need to contact schools to see if they have places available

Ready to begin a new life in Sri Lanka?

Moving to Sri Lanka is a huge step, but promises huge rewards. Culture and beauty, the likes of which you’ve never imagined, are right around the corner.

The only thing left to think about is whether you have the right health insurance. And for that, William Russell is here to help. Before you jet off, speak to us about our range of specialist international health insurance packages, designed especially for expats like you.

Looking for expat health insurance before you move to Sri Lanka?

Learn more about our plans

This article is part of our series of guides to expat life. It’s just for general information, and we don’t provide professional advice on moving abroad (we’re an expat insurance provider). We update this article regularly to keep it useful as possible, but if you want to know more – please seek independent advice.