How many days of annual leave is an employee entitled to in Sri Lanka?

Fourteen days a year for Shop and Office employees who have completed a year of service. In the first calendar year the entitlement depends on the quarter of joining: 14 days if joined January to March, 10 if April to June, 7 if July to September and 4 if October to December.

How much casual leave does an employee get?

Seven days a year under the Shop and Office Act. In the first year, half a day for each completed month of service.

Is sick leave a statutory right in Sri Lanka?

For Shop and Office employees there is no separate statutory sick leave; casual leave covers short illness. Most employers grant sick leave by contract. Some Wages Board decisions provide specific sick leave.

How long is maternity leave in Sri Lanka?

Eighty-four working days on full pay for the first and second child, and 42 working days for the third and subsequent children, under the Maternity Benefits Ordinance and the Shop and Office Act as amended.

Can unused annual leave be encashed?

The Act does not require encashment, but any annual leave accrued and unused must be paid on termination. Encashment during service is by policy.

Leave entitlements in Sri Lanka: annual, casual, sick, maternity and holidays (2026)

Statutory leave for Shop and Office and Wages Board employees: annual leave by year of joining, casual leave, sick leave practice, maternity leave and statutory holidays, with the rules for carry-forward and encashment.

Last updated 16 September 2026 by HR Community Editorial

Key facts

Annual leave (Shop and Office): 14 days a year from the second year; 14, 10, 7 or 4 days in the first year depending on the quarter joined
Casual leave (Shop and Office): 7 days a year; pro-rated at half a day per month in the first year
Sick leave: No statutory entitlement for Shop and Office employees beyond casual leave; commonly 7 to 21 days by contract
Maternity leave: 84 working days for the first and second child; 42 working days for the third and subsequent (Maternity Benefits Ordinance and Shop and Office Act, as amended)
Weekly holiday: One and a half days a week for Shop and Office employees
Statutory holidays: Full Moon Poya days plus the gazetted public and mercantile holidays each year
Annual leave carry-forward: Not required by the Act; by contract or policy

Leave rules in Sri Lanka come from the Shop and Office Employees Act for office, retail and hospitality staff, from Wages Board decisions for trade workers, and from the Maternity Benefits Ordinance for maternity. This guide sets out the statutory minimums; a contract or collective agreement can only improve on them.

Annual leave

Shop and Office employees earn 14 days of annual leave with full pay for each year of service, taken in the following year. In the first calendar year the entitlement is pro-rated by the quarter in which the employee joined:

Joined between	Annual leave for that year
1 January and 31 March	14 days
1 April and 30 June	10 days
1 July and 30 September	7 days
1 October and 31 December	4 days

The Act requires that at least seven of the 14 days be taken consecutively if the employee asks for it. Accrued and untaken annual leave must be paid out on termination. Carry-forward and encashment during service are not required by the Act and are governed by policy.

Wages Board decisions provide annual leave by trade, commonly 14 days after a year of service for monthly-paid workers.

Casual leave

Seven days a year with full pay for Shop and Office employees, for unforeseen private business or short illness. In the first year of service the entitlement is half a day for each completed month. Casual leave does not accrue or carry forward.

Sick leave

The Shop and Office Act provides no separate sick leave; the seven days of casual leave are intended to cover it. Most employers grant sick leave by contract, typically 7 to 21 days on production of a medical certificate beyond two or three days. Several Wages Board decisions do provide specific sick leave; check the decision for the trade.

Maternity leave

A female employee is entitled to maternity leave on full pay of 84 working days for the birth of a first or second child, and 42 working days for a third or subsequent child. Leave may be taken partly before and partly after confinement, with at least 14 days before if requested. On return, a nursing mother is entitled to two nursing intervals a day. Dismissal on grounds of pregnancy or maternity is prohibited.

Weekly holiday

Shop and Office employees are entitled to one and a half days' holiday a week with pay, after working at least 28 hours in the week. For most offices this is Saturday afternoon and Sunday. Wages Board trades have a weekly holiday set by the decision.

Statutory holidays

Each Full Moon Poya day is a statutory holiday for every employee. In addition, the Shop and Office Act and Wages Board decisions provide paid holidays on the gazetted public and mercantile holidays each year, currently including Tamil Thai Pongal, Independence Day, Maha Sivarathri, Good Friday, Sinhala and Tamil New Year (two days), May Day, Vesak (two days), Milad-un-Nabi, Deepavali and Christmas, with the Islamic and Hindu festival dates varying annually. Work on a statutory holiday is paid at double or compensated with a paid day in lieu.

Leave and payroll

Annual and casual leave are paid at the ordinary rate; no deduction and no effect on EPF.
Leave beyond entitlement is no-pay and reduces the EPF and APIT base for the month.
Leave balances on termination are paid in the final settlement and taxed as regular remuneration.
Leave records must be kept in the form prescribed under the Act and are inspectable by Labour officers.

Software checklist

Pro-rates first-year annual leave by quarter of joining automatically.
Accrues casual leave at half a day per month in year one.
Applies the 84-day and 42-day maternity rules by child count.
Loads the year's Poya and gazetted holidays once, with the ability to add mercantile holidays for specific employee groups.
Converts leave beyond entitlement into no-pay in the payroll run.

Frequently asked questions

How many days of annual leave is an employee entitled to in Sri Lanka?: Fourteen days a year for Shop and Office employees who have completed a year of service. In the first calendar year the entitlement depends on the quarter of joining: 14 days if joined January to March, 10 if April to June, 7 if July to September and 4 if October to December.
How much casual leave does an employee get?: Seven days a year under the Shop and Office Act. In the first year, half a day for each completed month of service.
Is sick leave a statutory right in Sri Lanka?: For Shop and Office employees there is no separate statutory sick leave; casual leave covers short illness. Most employers grant sick leave by contract. Some Wages Board decisions provide specific sick leave.
How long is maternity leave in Sri Lanka?: Eighty-four working days on full pay for the first and second child, and 42 working days for the third and subsequent children, under the Maternity Benefits Ordinance and the Shop and Office Act as amended.
Can unused annual leave be encashed?: The Act does not require encashment, but any annual leave accrued and unused must be paid on termination. Encashment during service is by policy.