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Retiring in Sri Lanka

Residency routes, healthcare and pension tax · LKR

Routes to residency

Healthcare

Foreign retirees on Sri Lanka's long-stay 'Residence Visa'/'My Dream Home' retirement visa are not enrolled in or charged for the public (government) hospital system as a matter of right tied to a contribution scheme; however, Sri Lanka's public hospitals are generally open to everyone present in the country, including foreigners, with most basic treatment provided free of charge regardless of residency status, per expat guidance summarizing the public system's open-access design.

No qualifying period is documented for using public hospitals, since access is based on presence in the country rather than enrollment or contributions; no bilateral social-security healthcare agreement between Sri Lanka and the US/UK/EU was found.

Private health insurance is a condition of residency in Sri Lanka.

The retirement ('My Dream Home') visa requires applicants to hold medical/health insurance valid in Sri Lanka as a condition of the visa. Private hospital care is commonly used by expats; consultations and scans are inexpensive relative to Western costs (e.g., roughly £10-15 for a consultation, £80-120 for an MRI, per one retirement-guide source), and private health insurance premiums for retirees are often cited in the roughly £80-150/month range in cost-of-living breakdowns, though these are third-party estimates rather than official figures.

US Medicare: US Medicare generally does not cover medical care received outside the United States; Sri Lanka is not one of the few exceptions (e.g., certain border situations) where Medicare pays for foreign treatment, so retirees relying on Medicare would have no coverage for care received in Sri Lanka and would need separate private or travel health insurance.

Pension income tax

Sri Lanka taxes foreign pension income of its residents.

Under Sri Lanka's Inland Revenue Act, a resident individual's taxable income includes income from any source 'wherever the source arises,' meaning worldwide income, which would include foreign pension income, is in scope for resident taxpayers. Separately, Sri Lanka introduced a 15% minimum tax on foreign-sourced income remitted to Sri Lanka via the banking system effective 1 April 2025 (with credit/top-up if already taxed abroad at a lower rate), reversing a prior exemption for remitted foreign income; whether a specific pension exemption applies was not established from the sources found.

There is no US income tax treaty with Sri Lanka.

No US-Sri Lanka income tax treaty was identified in the sources reviewed; Sri Lanka does not appear on standard lists of countries with which the United States has a comprehensive income tax treaty, so no treaty provision allocating taxing rights over pensions or Social Security between the two countries was found.

Sources: SRI LANKA An everyday guide to expatriate life and work (Cigna Global) · Retirement Visa - Immigration Lanka · Does Sri Lanka Have a Retirement Visa? - Sri Lanka Immigration · Retire in Sri Lanka 2026: Complete Guide for Europeans · SRI LANKA: 15% Tax on Foreign Income Introduced (HKTDC Research) · Inland Revenue Act - Laws of Sri Lanka

Checked Oct 2026

Customs & etiquette

• Greeting with Ayubowan — A traditional Sinhalese greeting is to say 'Ayubowan' (meaning 'long life') while pressing the palms together in front of the chest, similar to a namaste gesture. Handshakes are also common, especially in business or urban settings, but should be done with the right hand.
• Right-hand rule for eating and giving — The right hand is considered clean and should be used for eating, shaking hands, and passing or receiving money and small objects. The left hand is traditionally associated with hygiene tasks and is seen as unclean in social contexts.
• Temple dress code — When visiting Buddhist or Hindu temples, visitors must dress modestly: shoulders and knees (or legs entirely) should be covered, and shoes and any headgear must be removed before entering. Light-colored or white clothing is often seen as a respectful choice, especially at Buddhist sites.
• Respect for Buddha images and statues — Buddha statues and images are sacred objects, not decorative items, and should be treated with reverence at all times, both inside and outside religious sites.
• Modest beach and public dress — Outside of designated tourist beach areas, conservative clothing is expected. Nudity and topless sunbathing are illegal on Sri Lankan beaches, and skimpy outfits away from resort areas can draw negative attention.
• Public displays of affection — Sri Lankan society is generally conservative regarding physical affection in public. While simple hand-holding is broadly tolerated, kissing or more intimate contact between couples is frowned upon, particularly outside major tourist zones.

Religion

Buddhist 70.2% · Hindu 12.6% · Muslim 9.7% · Roman Catholic 6.1% · other Christian 1.3% · other 0.05%

Other countries in South Asia

India

Reference information compiled from the sources cited above and reviewed by hand. Immigration, healthcare and tax rules change and are applied at the authorities' discretion — confirm with the consulate, an immigration adviser or a tax adviser before making plans. Nothing here is tax or immigration advice.

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