A comfortable retirement works out cheaper in Sri Lanka — around £1,350/month for a couple, versus £1,400 in Cambodia (about 4% more).
Cost of living, side by side
| Cambodia | Sri Lanka | |
|---|---|---|
| Modest (couple/mo) | £850 | £800 |
| Comfortable (couple/mo) | £1,400 | £1,350 |
| Premium (couple/mo) | £2,400 | £2,300 |
Indicative monthly estimates for a couple — real costs vary by location, lifestyle and exchange rates.
Cambodia: Foreigners can own condominium units outright with a strata title, on the first floor and above, capped at 70% of any building and not within 30km of a land border. Land itself cannot be foreign-owned, so houses and villas are taken on long leases (commonly up to 50 years) or through a majority-Cambodian company.
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.
Cambodia: Most retirees use the ER ('retirement') extension of an ordinary E-class visa: broadly for those aged 55+ who are retired, it is inexpensive and renewable yearly, needing proof of retirement and funds rather than a fixed deposit.
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.
Cambodia: Public healthcare is limited and private clinics in Phnom Penh and Siem Reap, while improving, still send serious cases to Bangkok or Singapore — so international insurance with medical-evacuation cover is strongly advised. Routine care is cheap and largely cash-based.
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.
Cambodia: Cambodia operates a territorial system, so a foreign pension is generally not taxed; even resident retirees typically find foreign-source pension income falls outside the local net, while local earnings are taxed progressively up to 20%. Declare your status and take advice to be sure.
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.
Cambodia: Tropical and warm all year; the dry season (November-April, coolest November-January) is most comfortable, followed by a hot spell and a May-October monsoon. Generally safe and friendly, though watch for bag-snatching and chaotic traffic; English is widely spoken in expat and tourist areas, the US dollar is used day-to-day, and driving is on the right.
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.
Cambodia: Expect a 4% transfer tax on the government-assessed value for a strata-title condo, plus registration and legal fees and any title-upgrade cost; US dollars are used, which keeps transactions simple. Foreigners buy condo units (not land), and registration can take some weeks.
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.
Cambodia: Phnom Penh for the widest amenities and healthcare, temple-rich Siem Reap for a calmer pace, and riverside Kampot with seaside Kep in the south for laid-back living, all with established expat pockets.
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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