Starting a private counselling or psychology practice in Sri Lanka

Private practice is how many psychologists and counsellors in Sri Lanka build a career, whether that is a room in a channelling centre, sessions from home over video, or evenings alongside a hospital job. The clinical work you already know. This guide covers the rest. Rules here are changing in 2026 and 2027, so treat it as a checklist to confirm with your professional body and a tax adviser, not as legal advice.

1. Registration

Among psychologists and counsellors, only clinical psychologists have a statutory register. The Sri Lanka Medical Council (SLMC) registers them as an allied health profession. Counsellors, psychotherapists and other psychologists have no statutory register or national licence yet.

• Clinical psychologists: keep your SLMC registration current and show the number on your website.
• Everyone else: do not call yourself a clinical psychologist. Join a body such as the Sri Lanka Psychological Association or a counsellors' association, follow its ethics code, and keep copies of your qualifications ready.

2. Registering your premises

The Private Medical Institutions (Registration) Act No. 21 of 2006 requires a private medical institution to hold a certificate from the Private Health Services Regulatory Council (PHSRC). The definition names a consultation room and health promotion services, but the PHSRC's published categories never mention psychology or counselling. Whether a solo room counts is unclear. Ask the PHSRC or your Provincial Director of Health Services in writing and keep the reply. In a registered medical centre? Ask the centre.

3. Mental health law and confidentiality

The Mental Diseases Ordinance of 1873 is still the main mental health law, and deals with detention in hospital, not outpatient therapy. A draft Mental Health Act to replace it was at the Cabinet concept paper stage in March 2026. Check whether it has passed.

For now, confidentiality rests on your professional code, your agreement with the client and data protection law. Before the first session, get written consent covering fees, cancellations, records and the limits of confidentiality, such as a serious risk to life.

4. Client data and privacy

The Personal Data Protection Act No. 9 of 2022 is arriving in stages. A gazette order of 22 July 2026 brings its core processing rules and the duties of controllers and processors into force on 1 January 2027. Client rights and penalties wait for a later order. Health data is a special category, so from January:

• Collect only what you need, tell clients why in writing, and delete it when no longer needed.
• Get explicit written consent, from a parent or guardian for a child under 16.
• Use passwords, encryption and limited access, and know where your software stores data.

5. Set up the business

• Business name: generally not needed if you practise under your own full name. A practice name must be registered at your Divisional Secretariat.
• TIN: every resident aged 18 or over must register with the Inland Revenue Department, free online. From 1 November 2026 a TIN certificate is needed to open a bank account or register a business.
• Bank account: keep one just for the practice.

6. Tax

• The tax year runs April to March. Personal relief covers the first Rs. 1,800,000 a year. Above that, rates rise from 6% to 36% in bands.
• If you owe tax, pay quarterly instalments by 15 August, 15 November, 15 February and 15 May, the balance by 30 September, and file online by 30 November.
• Since 3 June 2026, a business paying a counsellor or therapist more than Rs. 100,000 in a month must withhold 5%. Keep the certificates for your return.
• VAT starts at Rs. 60 million a year and exempts healthcare by qualified professionals. The Social Security Contribution Levy starts at Rs. 36 million and exempts medical services. A solo practice rarely comes close.

7. Insurance

We found no rule making professional indemnity insurance compulsory. Local insurers such as Fairfirst and HNB General sell this cover. Ask for counselling or psychology, and online sessions, to be named in the schedule.

8. Fees, payments and receipts

Put your fee and cancellation policy in writing before the first session. Most clients pay by:

• Bank transfer, which clears in seconds through CEFTS.
• LANKAQR, the national QR code. Your bank issues it; clients scan it with a banking app.
• A card payment link, handy for clients abroad.

Issue a numbered receipt for every payment. A receipt over Rs. 25,000 carries Rs. 25 stamp duty. Reminders cut missed sessions too; see how to reduce therapy no-shows.

9. Online sessions

The Ministry of Health's Telemedicine Guidelines (2024) are written for SLMC and Nursing Council registrants, but make a good baseline: explain the privacy risks, get consent, and record only with written consent. They also limit telehealth across borders to health education and advice, so check before taking clients abroad. Each session, confirm where the client is and an emergency contact, and keep the National Mental Health Helpline, 1926, to hand.

10. Keep records in one place

Intake forms, consent, notes, receipts and certificates scattered across WhatsApp and notebooks are hard to protect. Keep them in one secure place, with a good intake form and a steady note format such as SOAP or DAP.

MindMaster was built for this: client records, sessions, case notes and session income in your own currency, on your phone or laptop. It is completely free for the first six months, then a flat Rs 999 a month for a small practice.