Can I employ an independent contractor in the Sri Lanka?

Yes, but only if they’re not acting as a full-time employee for your company. Contractors can work for multiple companies, control their work methods, and send substitutes. If a company dictates what the worker does and who they can work for, classifying them as anything other than an employee could violate Sri Lanka employment law. Misclassifying a worker in the Sri Lanka could lead to fines, back pay for holidays, social security contributions, setting up a Sri Lanka business presence, and even a lawsuit from the employee.