Retiring in Sri Lanka: Senior Visa, Tax on Your Pension and Access to Healthcare

The ETA covers a 30-day tourist stay and does not allow you to settle; France Diplomatie (the French foreign ministry) points out that converting a tourist visa into a residence visa from within the territory is illegal. A retiree who wishes to live in Sri Lanka therefore goes through a visa applied for before departure. For seniors, the Department of Immigration and Emigration offers the “My Dream Home” programme, which issues a two-year renewable residence visa. The administration sets no minimum age on the page consulted and describes the scheme as intended for “senior foreign nationals” wishing for a prolonged stay.

The “Resident Guest” scheme (investors and professionals, five-year visa) appears in the list of categories, but the official page states that it is no longer issued to new applicants and concerns only extensions for existing holders: it is not an entry route for a retiree. The digital nomad visa, finally, targets foreign-source earned income and does not correspond to a retiree’s situation. The guide to receiving your pension abroad completes this overview.

The pages of the Department of Immigration and Emigration detail the following conditions for the “My Dream Home” programme:

• Fixed-term deposit: USD 15,000, or the equivalent in an approved currency, in an approved bank in Sri Lanka. Withdrawing it requires the prior approval of the Controller of Exchange.
• Monthly remittances: USD 1,500 for the main applicant and USD 750 for each dependent spouse and child, into a current or savings account in an approved bank.
• Resources: proof of pension or annuity and a recent bank statement attesting to financial capacity.
• Insurance: health insurance valid in Sri Lanka is required.
• Fees: USD 200 per year for each applicant, spouse and child over 16.
• Documents: form and two photographs, copy of the passport, Sri Lankan police certificate, marriage certificate for the spouse; six-monthly bank statements are to be sent to the visa controller.
• Limits: no professional activity, paid or unpaid, is permitted; the planned stay must end at least two months before the passport expires.

The amounts and documents may change: confirm them with the department before submitting the file. The total of monthly remittances for a couple comes to USD 2,250, which makes it a budget benchmark rather than a cost of living.

France and Sri Lanka are bound by a convention to avoid double taxation, signed in Colombo on 17 September 1981 and in force since 18 November 1982 (BOFiP, the French tax administration’s official doctrine). French administrative doctrine recalls the general rule of treaties: private retirement pensions are taxable in the beneficiary’s State of residence, whereas public pensions are in principle taxable by the State that pays them, with exceptions depending on nationality and residence. The text of the convention, in particular its article on pensions, is authoritative: check it for your scheme.

• General scheme or supplementary pension: taxed in principle in Sri Lanka, the State of residence, under the general rule; declare it to the Inland Revenue Department, whose progressive scale for residents, from 6% to 36%, is presented on the page on working in Sri Lanka. The Sri Lankan administration states that a resident is taxable on foreign-source income.
• French State pension: the State pensions portal lists Sri Lanka among the countries where withholding tax does not apply because of the convention; a health insurance contribution (COTAM), at a rate of 3.2%, is still deducted from the gross amount.
• Social contributions: a retiree whose tax residence is outside France is not liable for the CSG and the CRDS (French social levies), but a health insurance contribution is still taken from their French pensions (CLEISS, the French Social Security Centre for European and International Liaison).

To avoid a double declaration, report your departure to your pension fund and to the tax administration, and keep your proof of residence.

Form S1, which allows a retiree of the French scheme to be treated in the State where they settle at France’s expense, is reserved by the CLEISS for moves to the European Union, the European Economic Area and Switzerland. In Sri Lanka, no social security agreement exists: the retiree must arrange their cover alone, and the residence programme for seniors itself requires health insurance valid in the country. See the glossary entry on form S1 and the guide form S1: how to use it.

• CFE: the offer intended for retirees, with no medical questionnaire, requires holding a pension from a French basic scheme; it covers only care received abroad and is aimed at a retiree with no professional activity. Waiting period: none if you join before departure or within three months of settling; otherwise three months before age 45 and six months beyond.
• International insurance: to be chosen on the ceiling, evacuation, the handling of medical history and the ceiling for chronic care; see CFE or private insurance.
• Sri Lankan public services: free at the point of delivery according to the Ministry of Health; access for a foreigner is to be confirmed on the spot.

The breakdown by status is on the page on healthcare reimbursement in Sri Lanka, and the local offer on the page on the healthcare system in Sri Lanka.

Assurance retraite asks every retiree living abroad to prove they are alive once a year, whatever their nationality. The proof-of-life certificate is completed by the local authority of the country of residence (town hall, police station or authorised consulate depending on the country) or validated through the “Mon certificat de vie” application; it must be returned within two months, failing which payment is suspended until it is received. Also report your new address and bank details to your fund. The guide to quarters worked abroad and the page on retirement insurance abroad help you prepare the settlement of your rights.

No official source sets a standard budget for a foreign retiree in Sri Lanka. The remittance thresholds set by immigration (USD 1,500 a month for one person, USD 2,250 for a couple) serve as a benchmark of minimum resources; the inflation and exchange-rate indicators appear in the economic benchmarks block of this page. The budget depends mainly on housing, the city and the level of health cover chosen.

Colombo, where the French embassy and the main healthcare establishments are located, remains the most practical base for formalities. Kandy, in the highlands, and coastal towns such as Matara are cited by France Diplomatie among the country’s main cities; each exposes you to different natural risks (landslides at altitude, sea bathing discouraged depending on the season on the coast). The 2014 law on restrictions on the alienation of land in principle prohibits the transfer of ownership of land to a foreigner: favour renting. See the page on living in Sri Lanka.

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