{"id":"lk","country":"lk","kind":"country","name":{"en":"Sri Lanka","local":"ශ්‍රී ලංකාව / இலங்கை"},"languages":["si","ta","en"],"currency":"LKR","symbol":"Rs","fxPerUsd":300,"cities":{"T1":"Colombo","T2":"Kandy","T3":"Matale"},"basket":{"teaCup":40,"simpleMeal":300,"haircutMen":700,"milkLitre":520,"breadLoaf":166,"unskilledDayWage":2500,"minWageMonthly":30000,"shopRentSqftMonth":{"T1":350,"T2":150,"T3":70},"electricityCommercialKwh":28,"lpgCommercialCylinder":4365,"petrolLitre":414},"tax":{"salesTax":"VAT 18% (registered businesses only); SSCL 2.5% on turnover above Rs 120m/yr","smallBizThreshold":"VAT registration Rs 60 million/yr (or Rs 15 million a quarter); 2026 budget plan to cut to Rs 36 million was dropped in June 2026","localLevies":"Local authority trade licence and business tax (Municipal/Urban/Pradeshiya Sabha), assessment rates passed through rent"},"licences":[{"name":"Business name registration (sole proprietor)","fee":"Est. Rs 1,000-3,500, varies by Provincial Council","authority":"Provincial / Divisional Secretariat Registrar of Business Names","source":"https://www.drc.gov.lk"},{"name":"Trade licence (local authority)","fee":"Est. Rs 1,000-10,000/yr by trade and area","authority":"Municipal Council / Urban Council / Pradeshiya Sabha","source":"https://www.colombo.mc.gov.lk"},{"name":"Food establishment registration and PHI inspection (Food Act No. 26 of 1980)","fee":"Est. small fee; annual inspection by Public Health Inspector","authority":"MOH office / local authority","source":"https://www.health.gov.lk"},{"name":"TIN (Taxpayer Identification Number)","fee":"Free","authority":"Inland Revenue Department","source":"https://www.ird.gov.lk"},{"name":"EPF/ETF employer registration (once any employee is hired)","fee":"Free; contributions 12% EPF + 3% ETF employer, 8% employee","authority":"Labour Department / Central Bank (EPF) / ETF Board","source":"https://www.epf.lk"}],"festivals":[{"name":"Deepavali","dates2026_27":"8 Nov 2026","effect":"sweets, clothing, oil lamps in Tamil areas and Colombo; holiday"},{"name":"Christmas / year-end","dates2026_27":"Dec 2026","effect":"cake, clothing, gifts; tourist peak on south and west coast"},{"name":"School-term start","dates2026_27":"Dec 2026 – Jan 2027","effect":"school-uniform stitching (free govt uniform material), books, shoes; tailors' second peak"},{"name":"Thai Pongal","dates2026_27":"14 Jan 2027","effect":"rice, jaggery, milk demand in Tamil areas"},{"name":"Sinhala & Tamil New Year (Avurudu)","dates2026_27":"13–14 Apr 2027","effect":"biggest retail peak (clothes, kavum/kokis sweets, fireworks) in March–April, then most shops shut 3-7 days"},{"name":"Vesak","dates2026_27":"about 20–21 May 2027","effect":"free dansal food stalls cut paid food sales; lanterns and decorations sell; liquor and meat sales closed"},{"name":"Eid ul-Fitr","dates2026_27":"about 10 Mar 2027","effect":"clothing and food in Muslim areas (east, Colombo)"}],"seasons":[{"months":"May–Sep","what":"South-west monsoon: heavy rain and floods in Western, Southern, Sabaragamuwa provinces; Colombo flooding"},{"months":"Oct–Jan","what":"Inter-monsoon then north-east monsoon: floods and cyclones in North, East and Central hills (Cyclone Ditwah, Nov 2025)"},{"months":"Dec–Apr","what":"Dry, tourist high season on south and west coasts; business booms near beaches"},{"months":"Every full-moon day (Poya)","what":"Monthly public holiday: liquor shops closed, many meat stalls closed, temple-goers boost tea and snack trade"}],"payments":{"digitalShare":"Est. 15-25% at small shops; cash dominant, LankaQR and bank apps growing in Colombo","credit":"naya (credit book) common at village boutiques; daily-wage customers settle weekly"},"notes":"Sri Lanka is the most expensive of the South Asian places: after the 2022 default and devaluation, prices sit at roughly two to three times Indian rupee levels (milk tea about Rs 100, rice packet about Rs 300-350, petrol Rs 414). Wages are also higher: the legal minimum is Rs 30,000/month from Jan 2026, but market day labour is Rs 2,500-3,000, more than double the legal Rs 1,200/day. Hiring anyone formally adds 15% employer EPF/ETF contributions, which India's small shops avoid. The VAT threshold (Rs 60 million) is high, so almost all small shops sit outside VAT. Prices of fuel, gas, bread and canteen food move in public, coordinated steps: the canteen owners' association announces Rs 5 changes in plain tea and Rs 15-20 changes in rice packets after fuel or gas revisions. Monthly Poya holidays close liquor shops and many meat stalls, and Avurudu in April shuts small towns for days. The tea kade (tea shop) sells plain tea and short eats (rolls, patties, vadai) rather than milky chai; the village 'boutique' (kade) is the kirana equivalent. Fuel queues, power cuts and floods from both monsoons are the key shocks.","regions":[{"id":"lk-western","name":"Western Province","why":"Colombo rents 2-5x rest of island; Colombo MC trade licence and street-vending bans; SW monsoon floods"},{"id":"lk-central","name":"Central Province","why":"Kandy and hill-country tea estates (separate estate wage of Rs 1,350+/day); cooler climate; landslides"},{"id":"lk-southern","name":"Southern Province","why":"beach tourism (Galle, Mirissa): seasonal Dec-Apr economy, tourist pricing"},{"id":"lk-northern","name":"Northern Province","why":"Tamil-language market, Jaffna diaspora remittances, NE monsoon floods"},{"id":"lk-eastern","name":"Eastern Province","why":"mixed Tamil/Muslim/Sinhala markets; Eid and Pongal calendars; Arugam Bay surf tourism; cyclones"},{"id":"lk-north-central","name":"North Central Province","why":"Anuradhapura pilgrim trade on Poya days; paddy-harvest cash cycles; drought"}],"factors":[{"id":"P01","cat":"Wages","name":"National minimum wage (private sector)","value":"Rs 30,000/month from 1 Jan 2026 (Rs 27,000 from Apr 2025), National Minimum Wage of Workers (Amendment) Act No. 11 of 2025","role":"HV","source":"https://conventuslaw.com/?p=137967","estimate":false},{"id":"P02","cat":"Wages","name":"National minimum daily wage","value":"Rs 1,200/day from 1 Jan 2026","role":"HV","source":"https://wageindicator.org/work/minimum-wage/updates/2026/minimum-wage-updated-in-sri-lanka-from-01-january-2026-january-01-2026/","estimate":false},{"id":"P03","cat":"Wages","name":"Market day labour (T2)","value":"Rs 2,500-3,000/day, far above legal minimum","role":"HV","source":"Est.: construction/casual rates widely reported Rs 2,500-3,500 post-2022; Numbeo avg net salary Rs 71,564 (Oct 2026)","estimate":true},{"id":"P04","cat":"Wages","name":"Shop helper / tea-kade helper pay","value":"Rs 35,000-50,000/month, often with meals","role":"HV","source":"Est.: above legal minimum due to emigration-driven labour shortage","estimate":true},{"id":"P05","cat":"Wages","name":"EPF/ETF employer cost","value":"12% EPF + 3% ETF on gross pay, employee 8%; applies from the first employee","role":"HV","source":"https://www.epf.lk","estimate":false},{"id":"P06","cat":"Wages","name":"Shop and Office Employees Act","value":"Regulates hours (45/wk), overtime, leave and holidays for shop staff","role":"HV","source":"https://www.labourdept.gov.lk","estimate":false},{"id":"P07","cat":"Rent","name":"Small shop rent, T1 Colombo (suburban high street)","value":"Rs 250-500/sq ft/month; 6-12 months' advance","role":"HV","source":"Est.: from typical listings; no official series","estimate":true},{"id":"P08","cat":"Rent","name":"Small shop rent, T2 Kandy and T3 Matale","value":"T2 Rs 120-200; T3 Rs 50-90 per sq ft/month","role":"HV","source":"Est.: scaled from T1","estimate":true},{"id":"P09","cat":"Energy","name":"Commercial electricity (General Purpose GP-1)","value":"About Rs 26-30/kWh energy charge plus fixed charge, after 1 Apr 2026 revision; unchanged Q3 2026","role":"HV","source":"Est.: 2025 GP-1 rates raised ~8-14% on 1 Apr 2026 https://english.newsfirst.lk/2026/03/30/pucsl-announces-electricity-tariff-revision-effective-april-1 ; no Q3 change https://newsfirst.lk/2026/08/03/no-power-tariff-revision-for-q3-2026-pucsl","estimate":true},{"id":"P10","cat":"Energy","name":"LPG 12.5 kg cylinder (Litro)","value":"Rs 4,365 (Oct 2026, unchanged; cut Rs 100 on 5 Sep); 5 kg Rs 1,750","role":"HV","source":"https://adaderana.lk/news/cmutmivqg0005356p0zl9kdfr","estimate":false},{"id":"P11","cat":"Energy","name":"Petrol 92 per litre","value":"Rs 414 from 1 Oct 2026 (95: Rs 475; auto diesel Rs 392; kerosene Rs 285)","role":"HV","source":"https://adaderana.lk/news/cmuoug71m000a356pswks925g","estimate":false},{"id":"P12","cat":"Energy","name":"Firewood use","value":"Many rural tea kades and hotels cook on firewood to avoid LPG cost","role":"PD","source":"Est.: widespread switch after 2022 gas shortage","estimate":true},{"id":"P13","cat":"Prices","name":"Plain tea at a tea kade (T2)","value":"Rs 30-50; milk tea Rs 80-120","role":"HV","source":"Est.: Rs 30 plain / Rs 90 milk tea in 2023, then +Rs 5 (Mar 2026), +Rs 5 (May, Laugfs users), -Rs 5 (Jul 2026) https://adaderana.lk/news.php?nid=78610 ; https://newsfirst.lk/2026/07/04/canteen-owners-announce-food-price-reduction","estimate":true},{"id":"P14","cat":"Prices","name":"Rice and curry packet","value":"Rs 250-350 (vegetable/egg), more with chicken; Rs 20 rise Apr 2026, Rs 15 cut Jul 2026","role":"HV","source":"https://newsfirst.lk/2026/07/04/canteen-owners-announce-food-price-reduction","estimate":true},{"id":"P15","cat":"Prices","name":"Fresh milk, 1 litre","value":"Rs 520; most households and tea shops use milk powder instead","role":"HV","source":"https://www.numbeo.com/cost-of-living/country_result.jsp?country=Sri+Lanka","estimate":false},{"id":"P16","cat":"Prices","name":"Bread loaf","value":"Rs 166 per 500 g (bakery owners' association sets price steps)","role":"HV","source":"https://www.numbeo.com/cost-of-living/country_result.jsp?country=Sri+Lanka","estimate":false},{"id":"P17","cat":"Prices","name":"Men's haircut (T2)","value":"Rs 500-1,000","role":"HV","source":"Est.: no 2026 survey","estimate":true},{"id":"P18","cat":"Prices","name":"Coordinated price setting by trade associations","value":"Canteen, bakery and three-wheeler associations announce island-wide price changes after fuel/gas revisions","role":"HV","source":"https://newsfirst.lk/2026/07/04/canteen-owners-announce-food-price-reduction","estimate":false},{"id":"P19","cat":"Tax","name":"VAT rate","value":"18%","role":"HV","source":"https://trykintsugi.com/sales-tax-guides/apac/sri-lanka","estimate":false},{"id":"P20","cat":"Tax","name":"VAT registration threshold","value":"Rs 60 million/yr (Rs 15 m/quarter); planned cut to Rs 36 million withdrawn 23 Jun 2026","role":"HV","source":"https://beancount.io/blog/2026/09/24/sri-lanka-vat-threshold-reversal-60-million-registration-guide","estimate":false},{"id":"P21","cat":"Tax","name":"Social Security Contribution Levy (SSCL)","value":"2.5% of turnover above Rs 120 million/yr","role":"HV","source":"https://www.ird.gov.lk","estimate":false},{"id":"P22","cat":"Tax","name":"Income tax for individuals","value":"Tax-free Rs 1.8 million/yr; progressive 6-36% above","role":"HV","source":"https://www.ird.gov.lk","estimate":false},{"id":"P23","cat":"Licences","name":"Business name registration","value":"Provincial registrar; renew every 5 years in most provinces","role":"PD","source":"https://www.drc.gov.lk","estimate":false},{"id":"P24","cat":"Licences","name":"PHI food inspection","value":"Annual registration; PHIs raid and prosecute unhygienic eateries, especially before Avurudu","role":"RE","source":"https://www.health.gov.lk","estimate":false},{"id":"P25","cat":"Rules","name":"Poya-day restrictions","value":"Liquor shops closed; meat sales banned on Poya in many local authorities; 12-13 Poya days a year","role":"HV","source":"Est.: Excise Ordinance Poya closures and local by-laws","estimate":true},{"id":"P26","cat":"Rules","name":"Polythene and lunch-sheet ban","value":"Lunch sheets and thin polythene banned since 2017; rice packets moved to paper/boxes","role":"HV","source":"Est.: Central Environmental Authority gazette 2017","estimate":true},{"id":"P27","cat":"Rules","name":"Mobile phone IMEI registration","value":"TRCSL requires IMEI registration of new devices since Jan 2025; grey imports blocked","role":"HV","source":"https://www.trc.gov.lk","estimate":false},{"id":"P28","cat":"Rules","name":"Pavement vending","value":"Colombo MC and UDA periodically clear pavement hawkers; designated hawker areas limited","role":"RE","source":"Est.: recurring clearance drives","estimate":true},{"id":"P29","cat":"Payments","name":"Cash vs digital","value":"Est. 15-25% digital at small shops; LankaQR, bank apps; cards at supermarkets","role":"HV","source":"Est.: CBSL payment bulletin shows LankaQR growth but small-merchant use still limited","estimate":true},{"id":"P30","cat":"Payments","name":"Naya (shop credit)","value":"Boutiques extend weekly credit to daily-wage families","role":"PD","source":"Est.: trade custom","estimate":true},{"id":"P31","cat":"Finance","name":"Small business loans","value":"Samurdhi bank, microfinance and CBSL refinance schemes; high rates (12-30%) after 2022","role":"PD","source":"https://www.cbsl.gov.lk","estimate":false},{"id":"P32","cat":"Calendar","name":"Avurudu peak and shutdown","value":"March-April sales peak (clothes, sweets), then 3-7 days closed around 13-14 April","role":"HV","source":"Est.: annual pattern","estimate":true},{"id":"P33","cat":"Calendar","name":"Vesak dansal effect","value":"Free food stalls for a week reduce paid street-food sales","role":"HV","source":"Est.: annual pattern","estimate":true},{"id":"P34","cat":"Climate","name":"Two monsoons","value":"SW May-Sep (west/south), NE Dec-Feb (north/east); flooding in either","role":"HV","source":"https://www.meteo.gov.lk","estimate":false},{"id":"P35","cat":"Risk","name":"Floods / cyclone","value":"Cyclone Ditwah (Nov 2025) caused island-wide floods and landslides","role":"RE","source":"Est.: DMC situation reports Nov-Dec 2025","estimate":true},{"id":"P36","cat":"Risk","name":"Fuel/gas shortage and queues","value":"2022 crisis: fuel queues, QR fuel rationing, gas shortages; price swings each month","role":"RE","source":"https://www.dailymirror.lk/opinion/Why-Are-Fuel-Prices-Rising-in-Sri-Lanka--The-2026-Crisis-Explained/231-341831","estimate":false},{"id":"P37","cat":"Risk","name":"Power cuts","value":"Island-wide blackout Feb 2025; scheduled cuts in 2022; drought reduces hydro","role":"RE","source":"Est.: CEB outage history","estimate":true},{"id":"P38","cat":"Risk","name":"Electricity tariff revision","value":"PUCSL reviews quarterly; Apr 2026 rise passed into Rs 5 tea price hike","role":"RE","source":"https://english.newsfirst.lk/2026/03/30/pucsl-announces-electricity-tariff-revision-effective-april-1","estimate":false},{"id":"P39","cat":"Language","name":"Business language","value":"Sinhala in south/west/centre, Tamil in north/east and estates; signage often trilingual","role":"HV","source":"Est.: Official Languages Policy","estimate":true},{"id":"P40","cat":"Economy","name":"Per-capita income","value":"About US$4,500","role":"HV","source":"Est.: CBSL 2024 GDP per capita ~US$4,516 https://www.cbsl.gov.lk","estimate":true},{"id":"P41","cat":"Economy","name":"Urbanisation","value":"About 19% urban (World Bank administrative definition); far more by functional definition","role":"HV","source":"Est.: World Bank WDI","estimate":true},{"id":"P42","cat":"Business","name":"Tea kade format","value":"Plain tea (black, sweet) plus short eats (rolls, patties, vadai, kimbula bun); milk tea from powder","role":"HV","source":"Est.: standard menus","estimate":true}]}