Top-Rated Debt Collection Agency in Sri Lanka
Fast and reliable debt collection in Sri Lanka - no upfront costs, only pay for success. Request a FREE Consultation or upload your claim today.
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Recovering your debt in Sri Lanka is easiest through this method.
Debitura specializes in debt recovery services in Sri Lanka. Our professional team has vast experience in accounts receivables management, pre-legal and legal debt collection, debt collection notices, and enforcement court proceedings. We have a thorough understanding of Sri Lanka's debt collection laws and regulations, which enables us to provide effective solutions to businesses seeking to recover outstanding debts.
Receive continuous support from beginning to end.
Tailored collection approach.
We have a team of more than 500 professionals specialized in international debt collection.
We boast a success rate of 87% while maintaining the lowest cost.
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The ultimate guide about debt collection in Sri Lanka
If you are owed money by a business or customer in Sri Lanka, we can help you! We have helped hundreds of other businesses recover debt in Sri Lanka.
Collecting a debt in Sri Lanka can be difficult because of the language and cultural barriers, different laws and customs, and the distance. But it is simpler when you use a collection agency that knows the laws and customs of the country where the debtor lives.
At Debitura, we care about people. We do everything we can to get your money back while still having a good relationship with the person you lent money to. Our efforts are fair and firm. We want to make sure that your reputation is good. If you want to collect the debt yourself, keep reading this guide. If you would rather work with a local law firm that specializes in getting money back from people who owe you money, we can help you with that too.
At Debitura, we provide an easy way to collect your debt in Sri Lanka and other countries. To get started, upload your claim today. We will assess your case and provide you with 3 free quotes from local debt collection lawyers in Sri Lanka within 24 hours. Our people-oriented approach combined with the latest tech-driven solutions helps us to get results and manage contact information better. Our network of debt collectors, attorneys, suppliers, and vendors are all relationships that we value highly, no matter how big or small they may be.
Upload claim
Begin your debt collection process in Sri Lanka today, at zero cost. Simply create a free profile, and within 2 minutes, upload your case.
Pre-legal
Our pre-legal recovery process will aim to collect your claim for the first 3 months. We offer a no-cure-no-pay policy, guaranteeing 100% results.
Legal
In case your claim remains unpaid during the pre-legal phase, we offer you 3 quotes from our nearby debt collection attorneys.
24/7 updates
You get access to our online portal where you can track your case in real-time
Introduction to collecting debt in Sri Lanka
Do you have trouble getting paid by your Sri Lankan customers? Don't worry, we can help you. The person who owes the debt is called the debtor, and the person who issued the debt or invoice is called the creditor. If the creditor collects the debt himself, this is called first-party collection. If the creditor outsources the collection process to a third party, this is called third-party collections.
The debt collection process in Sri Lanka
The debt collection process in Sri Lanka usually happens in more than one step.
The image below shows the process we use to collect debt in Sri Lanka:
1 Upload your claim:
If you want someone to help you get your money back, you need to find a debt collection partner. This is a person or company who will try to get the money for you. You can upload your claim to their website. If you use Debitura, we will give you 3 quotes from local partners in the Asia country where your case happened. This service is free - you don't have to pay anything.
2 Amicable collection:
The collection process begins with sending reminders to the person who owes you money. The reminders will be sent through email, SMS, letter and other ways depending on what country the debtor is in. The goal is to get the debtor to pay or agree that they owe the debt and begin a payment plan. Debitura offers a solution where you only have to pay a small success fee if we are able to collect your debt. Therefore, trying to collect your debt with Debitura is risk-free!
3 Evaluation:
If the person you lent money to has not paid you back after you have talked to them, it is time to decide what to do next. We will look at how much money you are owed, the chance of getting paid back, and other things to help you decide what is the best thing to do. There are three common next steps:
A: Surveillance:
If you claim is worth less than 2,000-5,000 Euros, it is not worth it to take any more legal actions. In this case, we recommend "debt surveillance." This means that we will keep trying to talk to your debtor and try to agree on a settlement that is fair for both of us.
B: Legal collections:
We suggest beginning a formal legal procedure for bigger complaints. The specific procedure varies based on the kind and amount of your complaint. Generally, it is expected to take one to one and a half years to complete.
C: Debt enforcement:
If the person you are owed money from has said that they owe you money or if there is a court order, you can go to the bailiff's court to get your money.
At Debitura, we can help you with all three steps in Sri Lanka.
Amicable collection in Sri Lanka
At Debitura, we offer a process for Amicable collections that is 100% risk-free and very efficient. All you have to do is submit your claim, and we will get started within 24 hours.
We will contact your debtor through different ways in Sri Lanka, for example e-mail, SMS, letters, calls and social media.
The goal is to:
A) Get the person who owes you money to pay the full amount.
B) Get the person who owes you money to say that they owe you money and make a plan to pay it back.
If the person you think owes you money says they do not, you cannot try to work it out. You must go straight to legal collections.
Get started with
amicable debt collection
Upload your claim and get started with our 100% no-cure-no-pay collection solution.
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Legal collection in Sri Lanka
If you have not been paid during the amicable phase or the debtor disputes your claim, we will provide you with 3 free quotes from our local debt collection attorneys. In the legal phase, our local attorney will reach out to your debtor and try to negotiate a payment. Our partners can also go to court and get a payment order via the legal system in Sri Lanka. This payment order can then be used to enforce your claim via enforcement court.
Legal fees depend on how difficult the case is and how much money you are asking for. To get the best price, we recommend that you ask different lawyers for their prices so you can compare them. You can do this easily by using Debitura.
Get started with
legal debt collection
Upload your claim and get 3 FREE quotes from our local collection partners.
Debt enforcement in Sri Lanka
If the person you owe money to has written down that they agree you can have the money, or if there is a court order saying you can have the money, you can go to the bailiff's court in Sri Lanka to get your money.
The process and how much it will cost varies depending on your situation. You can upload your case onto Debitura. They will give you 3 quotes for your claim within 24 hours.
Get started with
debt enforcement
Upload your claim and get 3 FREE quotes from our local collection partners.
Insolvency proceedings in Sri Lanka
If your debtor cannot pay his debts, you can initiate an insolvency procedure. The goal of this procedure is to sell the debtor's assets and give the money to the creditors following the debt priorities.
Our analysis concludes that the risk of doing business in Sri Lanka is medium-high. Based on this medium-high score, we recommend always charging upfront payment or using credit insurance when trading with customers in Sri Lanka, as it may be very difficult to get paid. The medium-high risk score is based on the following factors:
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The economic risk in Sri Lanka
Our conclusion based on the economic risk factors, is that the economic risk in Sri Lanka is very high (6 out of 6). An economic risk of 6 out of 6 is high in Asia.
GDP and economic growth are critical drivers for economic risk.
The GDP of Sri Lanka is 84,52 bn. USD (2021), growing by 3,66% per year.
In terms of the size of its economy, Sri Lanka ranks #66 out of 183 countries and has a medium-sized economy.
In terms of growth rate, it is ranked #111 out of 183 countries and is therefore considered an excellent growing economy.
GDP per capita is 3815 USD, ranking Sri Lanka number #111 out of 183 countries. This means the purchasing power of citizens in Sri Lanka is average compared to the rest of the world.
You can see a more detailed picture of GDP and economic growth in Sri Lanka in the table below:
Another critical driver for the economic risk score is the inflation rate and the interest rates. You can see a more detailed picture of monetary KPIs in Sri Lanka in the table below:
The inflation in Sri Lanka was 7% in 2021 which, unfortunately, is considered a quite high inflation rate.
The business environment risk in Sri Lanka
Our analysis shows that the business environment risk in Sri Lanka is medium-high (4 out of 6), which is a pretty average risk score in Asia.
The business environment risk are determined by the level of economic freedom and rights in a country. Take a look at the important facts for Sri Lanka in the table below:
As you can see above, the property rights index is 45 in Sri Lanka, which is considered low in Asia.
The business freedom index is based on 10 indicators, using data from the World Bank’s Doing Business study. The Index is 75 in Sri Lanka, a quite average score for a country in Asia.
Sri Lanka's overall economic freedom index is 56 out of 100 and is based on factors such as the rule of law, regulatory efficiency, and market openness.
The political risk in Sri Lanka
The political risk in Sri Lanka is high, with a score of 5/6. This is a relatively high political risk score in Asia.
The governance and political stability indicators are critical drivers for political risk. An overview of Sri Lanka can be seen in the table below:
The rule of law index analyses to which extent agents have confidence in and abide by the rules of society, in particular the quality of contract enforcement, property rights, the quality of the courts, and the police's ability to enforce court orders.
When doing business in a country, the rule of law index is critical as it describes your ability to enforce commercial contracts.
In Sri Lanka, the rule of law index is at 0,04 points, with the score going from -2.5 (weak) to 2.5 (strong). Sri Lanka has, therefore, a low rule of law index, which means it often is very difficult to enforce your contracts. We, therefore, recommend avoiding credits and recommend charging upfront payment instead.
Other drivers for the high political risks are the very weak control of corruption, the very weak political stability index, and the very large shadow economy that is 35,49% of Sri Lanka's GDP.
The commercial risk in Sri Lanka
In Sri Lanka, the commercial risk score is 3/4, which in our model is a medium score. This medium commercial risk score is relatively high compared to the average in Asia.
The commercial risk is impacted by a country's international trade relationships. You can see some of the key facts for Sri Lanka in the table below:
Sri Lanka has a negative trade balance of -7,57% of GDP. What this means is that Sri Lanka imports more goods and services than the country exports.
The annual growth of exports of goods and services has been growing 17,13% annually - now 17,74% of GDP. Import of goods and services represents 25,3% of the GDP in Sri Lanka.
The financing risk in Sri Lanka
We have calculated the financing risk to be 4/4, which equals a high risk. A high financing risk score is high for countries in Asia.
The country's banking system, efficiency, and stability influence the financing risk. You can find the critical facts for Sri Lanka in the table below:
In Sri Lanka, the credit information sharing index is 6 on a scale from 0 (low) to 8 (high). This means the accessibility and quality of credit information available in Sri Lanka is medium.
This makes it easy for you to understand the credit risk of your counterpart in Sri Lanka. You should therefore be able to find a good local credit rating agency that can help you analyse the creditworthiness of your specific customers.
Your rights as a creditor are 2 out of 12 and, therefore, very weak.
Debt Collection in Sri Lanka: Frequently Asked Questions
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In Sri Lanka, debt collection usually involves multiple steps. The process begins with sending reminders to the debtor through various channels like email, SMS, and letters. If the debtor does not pay or agree to a payment plan, the creditor may choose to take legal action. For claims worth less than 2,000-5,000 euros, debt surveillance is recommended. For larger complaints, formal legal procedures can take up to one and a half years to complete. At Debitura, we can help with all three steps and provide a risk-free collection solution.
The debt collection process in Sri Lanka typically involves three steps: pre-legal collection, legal debt collection, and debt enforcement. Pre-legal collection involves reminders and communication with the debtor to try to resolve the issue amicably. If this is unsuccessful, legal action may be taken, which can take up to one and a half years to complete. If there is a court order or admission of debt, debt enforcement through bailiff's court may be pursued. Debitura can help with all three steps in Sri Lanka.
In Sri Lanka, if a debt is disputed, a civil lawsuit is required for legal collection. Debt enforcement and insolvency proceedings are also legal options. It is important to have a local lawyer to proceed with legal actions. Legal fees vary depending on the case and it is recommended to compare prices. Additionally, if the debtor cannot pay their debts, initiating an insolvency procedure may be an option to sell their assets and distribute the money among creditors. Debitura can provide 3 free quotes from local debt collection attorneys.
Debt collection services in Sri Lanka typically offer a no-cure-no-pay model for pre-legal collection with a success fee between 10-20%. The legal actions and costs could vary based on your specific case and desired actions. Debitura can provide you with 3 quotes from the top debt collection lawyers in Sri Lanka to help you decide on the best course of action.
The duration of debt collection in Sri Lanka varies based on the debtor and the case. If the issue can be resolved in the pre-legal phase, it typically takes around 3-6 months. However, if legal actions need to be taken, it can take 12-18 months to collect the debt. The duration may differ based on the complexity of the case and the debtor's willingness to cooperate.
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