Sri Lankan IT and BPM companies billing foreign clients
Colombo's IT and BPM firms work for clients from London to Sydney. Their invoices go out in pounds, dollars and euros, and the payments must come home to Sri Lankan banks. Faster, fuller payments from clients make a measurable difference to working capital.
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A Colombo software company works for a fintech in London, a logistics firm in Seattle and a university in Sydney. It invoices in pounds, dollars and Australian dollars. Each payment comes into its Sri Lankan bank as an international transfer, two to five days after the client pays, with the bank's questions about purpose sometimes adding a day.
Invoicing
Clients in each market approve invoices faster in their own currency. A good export invoice includes:
- Your registered details and the client's.
- The service, period and deliverables.
- Amount and currency.
- Payment details and a clear purpose, such as "software development services".
Repatriation
Under the Foreign Exchange Act, proceeds are brought to Sri Lanka through banks. Once received, they can be held in foreign currency accounts and converted when you need rupees.
Tax
Sri Lanka's tax reforms after 2022 changed how service export income is taxed, including exemptions that IT and BPM firms had relied on. Confirm the current rate and conditions with your adviser each year.
Faster receipts
Delays usually come from the client's processes and the correspondent chain. Clear purpose details and invoice numbers on each payment help your bank credit it quickly. Agree in contracts who pays international transfer charges.
Paying into Sri Lanka: the local rail
| What | Detail |
|---|---|
| Local rail | LankaPay CEFTS (Common Electronic Fund Transfer Switch) |
| Run by | LankaClear, under the Central Bank of Sri Lanka |
| Settlement | Seconds, 24/7 |
Source: LankaPay: CEFTS. Checked when this guide was last updated; the scheme's own page has the current figures.
Where Rivet fits
Rivet opens business accounts for registered companies after verification. A Sri Lanka-registered company must bring proceeds into Sri Lanka, so check with your bank before receiving funds abroad. Where available, Rivet's payouts can deliver funds into Sri Lankan bank accounts from partners abroad who bank with Rivet. Rivet is not a bank; regulated partner institutions hold the funds.
Questions people ask
Do Sri Lankan IT exporters pay income tax on export income?
Exemptions that applied before 2022 were changed in the tax reforms that followed. Check the current treatment with your tax adviser.
Which currency should we invoice in?
The client's currency usually speeds approval. Proceeds arrive in that currency and can be held in foreign currency accounts in Sri Lanka.
Why do client payments take days?
International transfers pass through correspondent banks and are processed by your bank on arrival. Clear purpose details help.
What should invoices include?
Your company details, the client's details, the service, the amount and currency, payment details and the purpose, plus any tax wording that applies.
Sources
Rashidatou writes Rivet's guides to how money moves between countries: the payment rails, what each one costs, and the account details a company needs to get paid in another currency. Every figure in Rashidatou's articles is traced to the scheme rulebook, the regulator or the provider's published price list, and those sources are listed at the end.
More from Rashidatou K. →This article is general information, not legal, tax or financial advice. Rules and fees change; check the sources above and the provider’s current terms before you act on them.
- sri lanka
- it services
- bpm
- gbp
- usd
- tax
