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Debt-to-Income Ratio Calculator: Sri Lanka

Work out your debt-to-income ratio and see it against the rules lenders actually use where you live, from the US 28/36 to Ireland's loan-to-income cap.

Reviewed by CentExactRates effective 1 sourceCalculated in your browser. Shared links include inputs.

Sri Lanka: the regulator requires your bank to set a limit, but does not set the number

It is tempting to read the absence of a published national ratio as an absence of rules. That is not quite right, and the distinction changes how you should read this page.

The Central Bank's Financial Consumer Protection Regulations No. 01 of 2023 require every financial service provider to "identify a maximum debt service / income ratio" and to assess a borrower's ability to meet the terms before entering a contract, drawing on sources such as the Credit Information Bureau. So each lender must have a ceiling and must apply it. The Central Bank simply does not dictate what it is.

The practical consequence is that the 40% to 60% band used here describes what banks do, not a test you can look up. Two banks can decline and approve the same application without either breaking a rule, and your own bank's ceiling is a disclosable term you are entitled to ask for.

The regulation says disposable income, so this page works on net

Most countries in this calculator assess debt against gross income. Sri Lanka does not, and neither does the regulation, which speaks of the share of a consumer's disposable income that can go to servicing debt.

That is why the income field here takes your take-home figure. Getting the deduction right matters more than it looks:

  • EPF takes 8% from your pay. The employer adds a further 12%, and that portion never appears in your salary, so it must not be subtracted again.
  • ETF is 3%, borne entirely by the employer. The law is explicit that it cannot be deducted from an employee's wages, so it does not reduce your take-home at all.
  • APIT is withheld on top.

A common error is to subtract the full 20% EPF contribution, or to include ETF, and arrive at a net figure well below the truth. Only the employee's 8% comes out of your pay.

One wrinkle that makes net income lower than you would model

Sri Lankan pay-as-you-earn is computed on gross remuneration, without first deducting the employee's EPF contribution. So the 8% reduces the cash you receive but does not reduce the income the tax is charged on.

If you are estimating take-home by taking gross, removing EPF and then taxing what is left, you will overstate it. Tax the gross, then remove EPF, and enter that figure here.

For how the calculation works, the formula behind it and what it leaves out, see the full guide. For help interpreting a result or comparing it with a quote or statement, read the questions and answers.

Data sources

Sri Lankan debt service conventionsCentral Bank of Sri LankaWithin its effective period

Every document each dataset was read from, its notes and how the figures were checked are listed in the guide's data sources.

This calculator in other countries

Each country has its own rates, thresholds and rules, and its own page that runs the calculator on them and cites the official sources they came from.

CentExactCalculator publisher

CentExact publishes the calculation method, worked examples and available data sources. Automated checks cover reference calculations; they do not certify a result for your circumstances or imply approval by a lender or tax authority.

How we build and test our calculators

This calculator is for general information only and is not financial advice. Results are estimates based on the figures you enter and the stated formula; lenders and providers may round or calculate differently. Check any decision with the institution involved or a qualified adviser.