How to Write a Professional Quotation in Sri Lanka

1. Essential Elements of a Sri Lankan Quotation

Under Sri Lankan commercial practice, an official quotation forms the basis of a binding agreement once accepted by the client. To ensure legal validity and client confidence, include:

• Business Details: Business name, registered address, telephone, email, and Business Registration Number (BRN / PV number).
• Client Details: Contact person, recipient company name, and physical site/installation address.
• Quotation Number & Date: A unique sequential code (e.g., QT-0001) and explicit issue date.
• Validity Period: In Sri Lanka's economic climate, component and material costs can change rapidly. Always specify a validity window (typically 14 to 30 calendar days).
• Itemized Scope of Work: Distinct items with quantities, recognized units (e.g., sq.ft, meter, job, day), and unit rates.

2. Calculating VAT and SSCL in Sri Lanka

If your business is registered with the Inland Revenue Department (IRD):

• VAT (Value Added Tax): Sri Lanka's standard VAT rate applies to the taxable value of goods and services. State your 12-digit VAT number clearly.
• SSCL (Social Security Contribution Levy): If liable, calculate the 2.5% SSCL in accordance with IRD guidelines.
• Non-VAT Businesses: If your annual turnover is below the VAT threshold, do not include a VAT charge—label your final figure as Net Payable Amount.

3. Structuring Payment Milestones & Bank Details

To maintain positive cash flow, never start work without an advance deposit. Standard industry conventions in Sri Lanka include:

• Hardware & Installations (CCTV, Solar, AC): 50% advance to secure hardware, 40% on delivery to site, 10% upon testing.
• Civil Construction: 20–30% mobilization advance, bi-weekly progress measurements, and 5% retention for 6 months.
• Digital & Design Services: 40% upfront deposit, 35% on milestone approval, 25% before launch.

Provide clear local bank settlement instructions: Bank name (Commercial Bank, Sampath Bank, HNB, BOC), branch, account holder name, and account number.