Business etiquette in Sri Lanka

Doing business in Sri Lanka requires an understanding of the country’s cultural etiquette. As a beautiful island nation in South Asia, Sri Lanka has its own customs and traditions that shape business interactions. There are a number of important aspects of cultural etiquette that need to be taken into account when doing business in this country.

Meetings and Greetings

When planning meetings, always remember to be punctual and that Sri Lankans are not always on time. In some cases, the most senior person may be late, but the meeting should not start without them. Usually, according to the hierarchical structure of the company, the person with the highest position enters the room first, followed by the next in rank. Introductions also usually happen in this order.

Give and receive business cards with both hands and study the other person's card. When translating one side of the card into the local language, be careful not to mix Sinhala, Tamil and Hindi. To avoid mistakes, you can give the card in English.

If a mutual acquaintance introduces you to a Sri Lankan colleague, he may ask questions about you in your presence. This is not considered impolite. Ask a third party to respond on your behalf.

The first meeting with a company representative in Sri Lanka is usually aimed at establishing rapport and building a business relationship.

It is normal for meetings to be interrupted by other business matters. Expect the agenda to be more open-ended and try not to become impatient.

Titles are very important in Sri Lankan business culture. If the person you are addressing has a title, be sure to use it. Otherwise, address them as “sir” or “madam”, followed by their first name. Never address them by their first name unless authorized to do so. Also, many Sri Lankan women avoid physical contact (shaking hands) with men who are not related to them.

Given the importance of relationships, entertainment is often a part of business meetings. Dinner invitations are common, but be prepared to wait until late for dinner.

Waiting to be seated is important for maintaining hierarchical relationships. Additionally, people are expected to wash their hands before eating. Elbows should not touch the table, and cutlery is often provided, but if you eat with your hands, eat with your right hand.

Most socializing occurs before the food is served, not after, so it is best not to arrive hungry and to leave within 30 minutes of finishing your meal.

Dress Code

Sri Lanka is hot and humid, but due to European influence and religion, people tend to dress conservatively. Men wear dark suits. Women generally wear less revealing shirts, blouses, suits and dresses.

Gifts

Although not mandatory, Sri Lankan business culture encourages small gifts as a token of goodwill. Gifts that reflect the country of origin or company are welcome.

Avoid gifts containing alcohol, pork or beef (including leather goods). Flowers should not be given as they symbolize mourning.

Mental Traits

Relationships play an important role in Sri Lankan business culture. Introductions to third parties are almost essential as locals prefer to work with people they know and trust. They generally expect a genuine commitment to business relationships. Many business networks consist of family and colleagues, which is seen as a guarantee of trust.

In their desire for trust and loyalty in business relationships, Sri Lankans tend to ask a lot of questions about their partners. Some of the questions may be too personal or irrelevant, but try to answer them patiently and openly for the sake of the business relationship. Disagreements and conflicts should be resolved as diplomatically as possible.

Understanding communication styles is crucial to success in any business environment, including Sri Lanka. The emphasis here is on indirect communication. Messages are often conveyed through context and non-verbal cues rather than direct statements. For example, an employee who is unsure about a project deadline may not say “no” outright, but may express concerns about the workload or feasibility. Understanding these nuances is essential to avoid misunderstandings.

Titles are widely used in the company, and employees address each other with respect. The formality extends to written communication as well, with emails and reports typically being more detailed than their Western counterparts.

Negotiations

Negotiations are an important element of successful business, but in Sri Lanka they are heavily influenced by the country’s unique cultural norms. The country’s business culture emphasizes building strong relationships before entering into negotiations. This is in keeping with the country’s collectivist society, where social harmony and collective success take precedence over individual interests. Initial meetings are often held to establish trust and understand each other’s needs.

Sri Lankan negotiators often prefer indirect communication, expressing concerns or disagreements subtly to save face and avoid public embarrassment or loss of prestige. A seemingly acceptable response may not always mean complete acceptance, making patience and careful attention to nonverbal cues essential tools for effective negotiation.

Negotiations in Sri Lanka can be a long process filled with seemingly repetitive arguments. This is not a sign of ineffectiveness, but a cultural preference for careful consideration and consensus building. Patience and persistence are key. Negotiators may also use the "bracketing technique" to present and discuss different options before reaching a final agreement.

Several cultural norms influence negotiation practices in Sri Lanka. Respect for hierarchical relationships is paramount, and decisions are often made by those at the top. It is important to show respect for authority figures during negotiations. Group interests are more important than individual interests, and negotiators will often prioritize win-win solutions over maximizing their own interests.

Sri Lankans prefer clear and structured contracts, while vague terms and open-ended agreements may be viewed with caution. Understanding these cultural nuances will help you adjust your approach and manage the negotiation process more effectively.

Sri Lankans are unlikely to give an outright negative answer to your proposal, even if they do not agree with it. So pay attention to the nuances of hesitation. Listen carefully to what they say, but also pay attention to what they do not say and confirm your understanding with open-ended questions. Avoiding eye contact for long periods or other evasive behavior is a sign of hesitation. a sure sign that a Sri Lankan does not agree with what you are saying.

Also, in Sri Lanka, the polite way to say “no” is to say, “I will see what I can do” or something to that effect, no matter how impossible the task is. After being asked several times, the answer “I am still checking” or something similar means “no”. This indirect answer also means “I am still your friend/partner or I have tried”. It should also be remembered that Sri Lankans do not always make decisions based on facts and figures alone. Emotions such as intuition, instinct and faith often influence decision making.

Holidays and observances that affect business

Sri Lanka's cultural diversity is reflected in the many public holidays and observances that may affect business. Sri Lanka adheres to the Public Holidays Ordinance No. 1 of 1970, which provides for a number of public holidays. These include Sinhala and Tamil New Year, Independence Day (4 February) and May Day (1 May), during which most businesses are completely closed.

Religious holidays also play an important role: the Poya festival takes place every full moon and is celebrated mainly by Buddhists. During this period, government offices and some businesses are closed. Other religious holidays such as Diwali (the Hindu festival of lights) and Christmas are also observed, with the number of days of closure varying depending on the type of industry and the religious affiliation of the workers.

In addition to national holidays, Sri Lanka also celebrates local festivals that may result in local closures. For example, the Kataragama festival, dedicated to the Hindu deity Murugan, has a significant impact on businesses in the Kataragama area. Understanding these regional differences is important, especially for companies operating in a particular region. Local chambers of commerce can usually provide further information on this issue.