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Annual Leave in Sri Lanka

How long is annual leave in Sri Lanka?

In Sri Lanka, an employee is entitled to 14 days of annual leave for each completed calendar year of service, which must be used in the following calendar year. No annual leave can be taken during the employee's first calendar year of employment. The annual leave entitlement for the second calendar year depends on the employee's start date in the first calendar year:

  • If the start date is between January 1 and March 31 of the first calendar year, the entitlement is 14 days of annual leave.
  • If the start date is between April 1 and June 30 of the first calendar year, the entitlement is 10 days of annual leave.
  • If the start date is between July 1 and September 30 of the first calendar year, the entitlement is 7 days of annual leave.
  • If the start date is between October 1 and December 31 of the first calendar year, the entitlement is 4 days of annual leave.

What is the carry-over policy for annual leave in Sri Lanka?

At the end of a calendar year in Sri Lanka, any unutilized annual leave or sick leave is forfeited and will not be carried forward to the next calendar year.

How is paid time off (PTO) calculated in Sri Lanka?

In Sri Lanka, the calculation of paid time off (PTO) is informed by Sri Lankan labor laws and company policies. While unpaid leave encashment is not mandatory, companies may choose to allow encashment or the carry-forward of leave days as per their policy.

The typical method for calculating PTO involves:

  • Dividing the supported employee's monthly salary by the number of working days in the month according to the company's policy to find the daily rate.
  • Multiplying this daily rate by the number of leave days to be encashed.

Specifically, under our practices, the calculation is done as follows:

  • Basic salary divided by 30 days, then multiplied by the number of remaining PTO days.

Employers should adhere to their specific company policies regarding the encashment or carry-forward of PTO.

What is the process to request annual leave in Sri Lanka?

Supported employees in Sri Lanka should request their annual leave through our Global Work Platform™. Approval must be obtained from their Paid Time Off (PTO) manager.

Is unlimited PTO an option in Sri Lanka, and how can it be accommodated?

An unlimited Paid Time Off (PTO) policy can be implemented in Sri Lanka.

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