Very affordable costs (CPI: 31.5). Groceries (44.3) and restaurants (22.1) are significantly cheaper than the NYC baseline.

Property prices are very expensive, averaging 54.3 years of household income. The rental market (index: 7.2) is also very low compared to the NYC baseline.

Purchasing power is low, with an index of 21.7, indicating significantly less buying power than the NYC baseline.

Sri Lanka has a progressive income tax system with rates ranging from 6% to 36% for individuals, with a personal relief of LKR 1,200,000. The standard VAT rate is 18% as of January 2024. Property taxes include annual municipal rates, stamp duty on purchases/leases, and 18% VAT on new apartments from developers. Capital Gains Tax is 10%.

Sri Lanka's startup ecosystem is growing, ranked #68 globally in 2025 and 2nd in South Asia, with a 47.2% growth over the past year. Key sectors include fintech, agritech, and tourism tech. Government programs and a strong talent pool contribute to a developing business environment, though regulatory complexities and access to late-stage funding remain challenges.

Sri Lanka offers a free and universal healthcare system to all citizens, including expats, though public hospitals may have longer waiting times. Mandatory social security contributions are made to the Employee Provident Fund (EPF) and Employee Trust Fund (ETF) for formal sector employees. There are also specific pension schemes for migrant workers and welfare programs like Aswesuma and Samurdhi for vulnerable families.

Deposits are protected up to LKR 1,100,000 (approximately USD 3,410) per depositor per institution under the Sri Lanka Deposit Insurance Scheme (SLDIS), administered by the Central Bank of Sri Lanka (CBSL). The CBSL actively supervises and regulates the financial sector, which has shown improved resilience in H1 2025 and is aligned with Basel III standards.