A comfortable retirement works out cheaper in Sri Lanka — around £1,350/month for a couple, versus £1,900 in Bali, Indonesia (about 29% more).
Cost of living, side by side
| Bali, Indonesia | Sri Lanka | |
|---|---|---|
| Modest (couple/mo) | £1,200 | £800 |
| Comfortable (couple/mo) | £1,900 | £1,350 |
| Premium (couple/mo) | £3,000 | £2,300 |
Indicative monthly estimates for a couple — real costs vary by location, lifestyle and exchange rates.
Bali, Indonesia: Foreigners can't own freehold land, but can hold property via leasehold or the 'Hak Pakai' right-to-use.
Sri Lanka: Foreigners cannot buy land outright, but since 2018 can purchase freehold apartments or condominiums on any floor, provided the full price is paid upfront by inward foreign remittance before the deed is transferred. Land and houses are otherwise accessed on long leases of up to 99 years.
Bali, Indonesia: The KITAS and second-home visa routes are the common paths for longer stays.
Sri Lanka: The 'My Dream Home' residence visa is for applicants aged 55+ and typically requires a US$15,000 fixed deposit plus around US$1,500 in monthly remittance (US$750 per dependant); it is granted for two years and is renewable.
Bali, Indonesia: Southern Bali has decent private clinics and hospitals (such as BIMC and Siloam) for routine and moderate care, but serious emergencies are often referred to Singapore, so comprehensive international insurance is strongly advised; everyday consultations are inexpensive and usually paid out of pocket.
Sri Lanka: Public healthcare is free but basic and stretched, so expats lean on Colombo's good private hospitals such as Asiri, Nawaloka, Lanka and Durdans — near-Western standards with English-speaking staff at a fraction of UK prices, though complex procedures still add up. An international health policy is wise, with premiums rising after age 60.
Bali, Indonesia: Indonesian tax residents (183+ days) are taxed on worldwide income on a progressive scale up to 35%, with relief available under the UK-Indonesia double-tax treaty; the retirement KITAS and Second Home visas do not by themselves exempt a foreign pension, so take advice on residency and what you remit.
Sri Lanka: Since April 2025 a resident's foreign income remitted to Sri Lanka through a licensed bank is taxed at a flat 15% (after the LKR 1.8m personal relief), so a UK pension brought in can be taxable. Income kept abroad is generally outside the net, and the UK-Sri Lanka double-tax treaty can reduce the bill, so take advice.
Bali, Indonesia: Tropical and warm all year (high 20s to low 30s C); the dry season from roughly April to October is the best time, with a humid, wetter monsoon from November to March. Very friendly and generally safe; English is widely spoken in tourist and expat areas, but traffic is chaotic and driving is on the left, so many retirees prefer to hire a driver.
Sri Lanka: Tropical and warm year-round on the coast, cooler in the hills, with two monsoons — the southwest (May-September) wetting the west and south, the northeast (October-January) the east. The west and south coasts are loveliest from December to March. Safe and genuinely welcoming; English is widely spoken thanks to the colonial legacy and schooling, they drive on the left, and daily life is easy for British retirees though the roads can be hectic.
Bali, Indonesia: Foreigners cannot own freehold land, so buying is via long leasehold (Hak Sewa, commonly 25-30 years) or a Hak Pakai right-to-use title (which needs a KITAS); budget notary and legal fees of around 1%, plus a 5% acquisition duty (BPHTB) on a Hak Pakai transfer, and always use an independent lawyer to check title.
Sri Lanka: Budget roughly 4-6% in one-off costs — stamp duty of about 4% plus attorney and notary fees of 1-3%. Foreigners buy freehold apartments for cash with the full price remitted from abroad, and a straightforward condo can complete within a few weeks to a couple of months.
Bali, Indonesia: Sanur for a calm, flat, walkable beach town popular with retirees, Ubud for a green cultural base inland, Seminyak and Canggu for lively well-serviced coastal living, and Uluwatu for clifftop scenery.
Sri Lanka: Colombo for amenities and the best hospitals, the historic fort town of Galle on the south coast, cooler hill-country Kandy, and Negombo near the airport for beach life close to the city.
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