International Cost Of Living Index Calculation

Cost of living is the cost of maintaining a specified standard of living, similar to a typical household budget. A Cost of living index is a numerical way of comparing cost of living, either over time, or by comparing different geographical locations.

When you relocate to another geographic location, the cost of everything you spend your salary on will either cost more or less. Some of the costs may be higher in the new location and some of the costs may be lower. The difference in cost of living is typically reported as a “cost of living index.

By selecting the appropriate costs that you will have to pay from your salary, you can use a tool such as www.xpatulator.com to calculate the cost of living difference between 2 locations. Xpatulator uses 13 basket groups, the result of extensive research of actual spending habits, to reflect a reality-based international expenditure pattern. The basket groups are weighted according to Expatriate expenditure norms.

When comparing the cost of living between 2 locations the difference in the aggregate cost of all the selected basket groups are examined in each location using the average reported price in each location for the same quantity of each item. Cost of living is the relative differential in the local cost of the basket groups and the ruling exchange rate between the 2 selected locations. When comparing the cost of living between different locations the objective is to calculate the difference in the cost of living expressed as an index (e.g. dividing the cost of living in Location A by the cost of living in Location B may result in an index of 140).

The cost of living index indicates the difference in the cost of living between the 2 locations. In the above example the index of 140 means that Location A is 40% more expensive than Location B. This would mean that a person who moves from Location B to Location A would need to earn 40% more, to have the same standard of living in Location A as they have currently.

 

About The Author: Steven Coleman runs the most comprehensive international relocation calculator available, an internet service that is used primarily to calculate expatriate salary levels for international assignments, which can be found at http://www.xpatulator.com

 

This article may be freely copied as long as reference is made to http://www.xpatulator.com/

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Andorra, Andorra la Vella Cost of Living April 2010

Country Full Name: The Principality of Andorra.

Location: Andorra is in South Western Europe, between France and Spain.

Country Climate: Temperate; snowy, cold winters and warm, dry summers.

Country Terrain: Rugged mountains dissected by narrow valleys.

Major Languages: Catalan, Spanish, French.

Major Religions: Christianity.

Country Population: 0.088 million (2008 est.) 0.088 million (2009 est.).

Country Economy: The economy of Andorra is reliant on tourism which accounts for roughly 80% of GDP. An estimated 9 million tourists visit annually, attracted by Andorra’s duty-free status and by its summer and winter resorts. Andorra’s comparative advantage has recently eroded as the economies of adjoining France and Spain have been opened up, providing broader availability of goods and lower tariffs. The banking sector, with its tax haven status, also contributes substantially to the economy.

Currency: Euro (EUR).

Country Inflation: 3.2% (2008 est.) 3.9% (2009 est.).

City: Andorra la Vella is the capital of the Co-principality of Andorra, and is located high in the east Pyrenees between France and Spain. It is also the name of the parish that surrounds the capital.

City Economy: The principal industry is tourism. Furniture and brandies are local products.

Cost of Living

Andorra la Vella has an overall cost of living index which equates it with middle cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Andorra la Vella is currently ranked 103 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

 

For more information : Andorra, Andorra la Vella

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How to Calculate a Cost of Living Index

Definition:
A Cost Of Living Index (COLI) is a price index that measures the relative cost of living over time. It is an index that measures differences in the price of goods and services.

A COLI measures changes over time in the amount that consumers need to spend to reach a certain level or standard of living. COLI is typically a number, where the Base Index is 100.

A Consumer Price Index (CPI) on the other hand is a measure of the average change over time in the prices paid by consumers. CPI is typically a percentage change compared to the previous period. An increase in CPI is called inflation, while a decrease is called deflation. Both the COLI and the CPI use a market basket of consumer goods and services.

A COLI is also used to measure the price of the same quantities and types of goods and services in different geographic locations. The COLI used in this way shows the difference in living costs between different locations.

An international COLI measures the differences in the local currency price of the same quantities and types of goods and services in different countries converted to a single currency. This shows the difference in relative living costs between international cities. The cost of living difference between locations indicates the amount that consumers need to spend to maintain a certain level or standard of living.

Amongst other uses, COLI’s are used by organizations and individuals in the calculation of expatriate salary and cost of living allowances in order to ensure consistent salary purchasing power between the home and host country.

Next we will discuss how to calculate a COLI between 2 locations applicable to expatriate employees.

Methodology:
For consistency the goods and services are grouped into similar/related basket groups.

For accuracy the exact quantity and type of each of the goods and services within each basket are defined. Using these definitions, the prices of the same quantities and types of goods and services in each geographic location is obtained from at least 3 different suppliers representative of those that would typically be used by expatriates.

When calculating the cost of living between 2 locations the difference in the aggregate cost of all the selected basket groups are examined in each location using the average reported price in each location for the same quantity of each item.  The basket groups are weighted according to Expatriate expenditure norms.

If for example the following 13 basket groups had the following weighting, The 13 basket groups do not count equally.:

•Alcohol & Tobacco (Weight 2.0%)
•Clothing (Weight 2.5%)
•Communication (Weight 2.0%)
•Education (Weight 5.0%)
•Furniture & Appliances (Weight 5.0%)
•Groceries (Weight 16.5%)
•Healthcare (Weight 5.0%)
•Household (Weight 30.0%)
•Miscellaneous (Weight 3.0%)
•Personal Care (Weight 3.0%)
•Recreation and Culture (Weight 6.0%)
•Restaurants, Meals Out and Hotels (Weight 2.0%)
•Transport (Weight 18.0%)

The prices for the defined quantities and types of goods and services in each location are gathered on a quarterly basis and the resulting index is updated for each of the 13 baskets in each location. These indexes are then used to calculate the COLI between any 2 locations. The COLI is the relative differential in the local cost of the basket groups and the ruling exchange rate between the 2 selected locations.

When comparing the cost of living between different locations the objective is to calculate the difference in the cost of living expressed as an index using one of the locations as the Base. We typically refer to the home location as the Base Location (Index = 100).

Practical Example:
Take for example a company headquartered in Location A with overseas operations in Location B and C. They send employees on 2 to 3 year assignments from time to time to Location B and C and need a set of COLI’s using Location A as the Base City in order to calculate assignment salary and cost of living allowances.

In our example Location A has an index of 92, Location B has an index of 129, and Location C has an index of 75.

Using our example, you want to know what the COLI is for Location B and C using Location A as the Base Location:

•Location A COLI = (Location A / Location A) X 100 = (92 / 92) X 100 = 100
•Location B COLI = (Location B / Location A) X 100 = (129 / 92) X 100 = 140.2
•Location C COLI = (Location C / Location A) X 100 = (75 / 92) X 100 = 81.5

The COLI indicates the difference in the cost of living between the locations. In the above example the COLI of 140.2 means that Location B is 1.402 times more expensive than Location A. In this example the COLI is positive (higher). This would mean that a person who moves from Location A to Location B would need to earn 40.2% more, to have the same standard of living in Location B as they have currently in Location A.

Location C on the other hand has a COLI of 81.5. This means that Location C is 0.815 times less expensive than Location A. In this example the COLI is negative (lower). This would mean that a person who moves from Location A to Location C could earn 18.5% less and have the same standard of living in Location C as they have currently in Location A.

Steps to calculating a cost of living index:
Given that it is costly and time consuming to create comprehensive baskets and to price them accurately in each location yourself, it is generally more cost effective to use a service provider such as Xpatulator. Xpatulator has comprehensive index data for 13 basket groups in 282 global locations updated quarterly and available online.

The following steps will help you create a set of COLI’s using Xpatulator’s Cost of Living Index Calculator (COLI):

Before you start you will need to have registered.

1) Login using your username and password
2) Check that you have sufficient credit(s)
3) Select “Calculators” from the left hand menu
4) Choose the Cost of Living Index Calculator (COLI): The COLI report calculates cost of living indexes for the locations you select using the base location you specify.  You can select between 1 and all 282 locations. You can choose from any one of the 13 baskets or you can choose the overall cost of living index for each location. The COLI report uses 1 credit per set of 4 cost of living indexes.
The calculator will prompt you for the following inputs:
5) Reference Information: Give your report a reference. This will help you identify your reports for future reference.
6) Base Location: Select the location that will be the base location. All other selected locations will be compared to this location.
7) Available Locations: Select all locations that you require a cost of living index for. Each credit will allow you to select 4 locations. You will notice that as you select each additional location the “Remaining number of locations you can select” will change decrease by 1. You will also notice that for each set of 4 locations the “Selected locations will cost” will increase by 1 credit.
8) Select which cost of living index basket you require. The Overall Cost of Living Index covers all 13 Cost of Living Baskets, weighted for expatriate expenditure norms.
9) Run Report: When you are sure that all your selection criteria are correct, click on run report. At this point the calculator will use the number of credits shown in the calculator. Just above the cost of living baskets the number of credits required will be displayed “Selected locations will cost: XX credits”. If you do not have enough credits you will need to either need to “Purchase Credits” using the left hand menu or decrease the number of locations selected.

Using Xpatulator’s Cost of Living Index Calculator (COLI) your report will look like the attached example View Demo

Applying a cost of living index to a salary calculation:
The COLI values are useful in calculating an appropriate salary in another location. A calculator such as Xpatulator’s Salary Purchasing Power Parity Calculator (SPPP) calculates an appropriate salary using the COLI, exchange rate and hardship difference.

The salary used in the calculator is gross or net salary. We advise using net (after tax) salary. This has will result in a net salary result in the new location, which would then be grossed up for tax and any other statutory deductions in the new location. The calculator will then apply the following formula based on the selections in the calculator:

Salary X Cost of living Index Differential X Exchange Rate X Hardship Differential = Calculated Salary in new location

Applying the formula to our earlier example with a salary of $100,000 in Location A, sent on assignment to Location B, with an increase in hardship of 10% and paid in US Dollars:

•Location B COLI = 140.2
•Location C COLI = 81.5

Salary Calculation = $100,000 X 1.402 X 1 X 1.1 = $154,220

This means that an employee earning a salary of $100,000 in Location A, requires a salary of $154,220 in Location B to compensate for a 40.2% higher cost of living and a 10% higher level of hardship.

Using Xpatulator’s SPPP Calculator your report will look like the attached example
View Demo

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Algeria, Algiers Cost of Living April 2010

Country Climate: Arid to semiarid; mild, wet winters with hot, dry summers along coast; drier with cold winters and hot summers on high plateau; sirocco is a hot, dust/sand-laden wind especially common in summer.

Country Terrain: Mostly high plateau and desert; some mountains; narrow, discontinuous coastal plain.

Major Languages: Arabic, French, Berber.

Major Religions: Islam.

Country Population: 34.8 million (2008 est.) 35.3 million (2009 est.).

Country Economy: The economy of Algeria is largely reliant on significant exports of petroleum and natural gas. The reserves are mostly in the Eastern Sahara; the Algerian government curbed the exports in the 1980s to slow depletion; exports increased again somewhat in the 1990s. Algeria trades most extensively with France and Italy, in terms of both imports and exports, but also trades with the United States and Spain.

Currency: Algerian Dinar (DZD).

Country Inflation: 4.5% (2008 est.) 4.6% (2009 est.).

City: Algiers is the capital and largest city of Algeria, and the second largest city in the Maghreb (after Casablanca).

City Economy: Algiers is an important economic, commercial and financial center, with in particular a stock exchange with a capitalisation of 60 billion euros. The port of Algiers is also the most important of North Africa.

 

Cost of Living

Algiers has an overall cost of living index which equates it with low cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Algiers is currently ranked 192 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

 

For more information : Algeria, Algiers

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Albania, Tirana Cost of Living April 2010

Country Full Name: The Republic of Albania.

Location: Albania is in South Eastern Europe, bordering the Adriatic Sea and Ionian Sea, between Greece in the south and Montenegro and Kosovo to the north.

Country Climate: Mild temperate; cool, cloudy, wet winters; hot, clear, dry summers; interior is cooler and wetter.

Country Terrain: Mostly mountains and hills; small plains along coast.

Major Languages: Albanian.

Major Religions: Islam, Christianity.

Country Population: 3.2 million (2008 est.) 3.2 million (2009 est.).

Country Economy: The economy of Albania is poor-performing by Western European standards, but is making the difficult transition to a more open-market economy from its communist past.

Currency: Albanian Lek (ALL).

Country Inflation: 3.4% (2008 est.) 1.7% (2009 est.).

City: Tirana is the capital and largest city of the Republic of Albania.

City Economy: Tirana is Albania’s major industrial centre. It has experienced rapid growth and established many new industries since the 1920s. The principal industries include agricultural products and machinery, textiles, pharmaceuticals, and metal products.

 

Cost of Living

Tirana has an overall cost of living index which equates it with low cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Tirana is currently ranked 229 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

 

For more information:  Albania, Tirana

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Afghanistan, Kabul Cost of living April 2010

Country Full Name: Islamic Republic of Afghanistan.

Location: Afghanistan is in Southern Asia, north and west of Pakistan, east of Iran.

Country Climate: Arid to semiarid; cold winters and hot summers.

Country Terrain: Mostly rugged mountains; plains in north and southwest.

Major Languages: Pashto, Dari (Persian).

Major Religions: Islam.

Country Population: 28.1 million (2008 est.) 28.9 million (2009 est.).

Country Economy: The economy of Afghanistan has improved significantly since 2002 due to the infusion of multi-billion US dollars in international assistance and investments, remittances from expats, dramatic improvements in agricultural production and the end of a four-year drought in most of the country. However, Afghanistan still remains one of the poorest and least developed countries in the world and is highly dependent on foreign aid.

Currency: Afghanistan Afghani (AFN).

Country Inflation: 27% (2008 est.) -9% (2009 est.).

City: Kabul is the capital and largest city of Afghanistan, and is located in the province of Greater Kabul. It is an economic and cultural centre.

City Economy: Kabul’s products include: natural gas, cotton, wool, carpets, agriculture, and some small production companies.

Cost Of Living

Kabul has an overall cost of living index which equates it with low cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Kabul is currently ranked 201 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

Source: For more information go to Xpatulator.com Locations Afghanistan, Kabul

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Alcohol and Tobacco International Cost of Living Ranking

Alcohol & Tobacco costs include alcoholic beverages such as alcohol at bar, beer, locally produced spirit, whiskey, and wine as well as tobacco products such as cigarettes.


The April 2010 alcohol & tobacco international cost of living rank is as follows:


April 2010 Rank Country, City

4 Korea Republic of, Seoul
5
Thailand, Bangkok
6
Qatar, Doha
7
Brazil, Brasilia
8
Colombia, Bogota
9
Turkmenistan, Ashgabat
10
Papua New Guinea, Port Moresby
11
Djibouti, Djibouti
12
United Arab Emirates, Dubai
13
Belarus, Minsk
14
China, Beijing
15
Bahrain, Manama
16
Central African Republic, Bangui
17
Venezuela, Caracas
18
Indonesia, Jakarta
19
Micronesia, Palikir
20
Solomon Islands, Honiara
21
Australia, Sydney
22
Rwanda, Kigali
23
China, Shanghai
24
Palau, Melekeok
25
Singapore, Singapore
26
Ireland, Dublin
27
Somalia, Mogadishu
28
Guyana, Georgetown
29
Malaysia, Kuala Lumpur
30
Kazakhstan, Almaty
31
Brunei, Bandar Seri Begawan
32
Canada, Toronto
33
Timor-Leste, Dili
34
Ethiopia, Addis Ababa
35
Jordan, Amman
36
Iceland, Reykjavik
37
Congo, Brazzaville
38
Myanmar, Yangon
39
Canada, Vancouver
40
Tajikistan, Dushanbe
41
Kenya, Nairobi
42
Azerbaijan, Baku
43
Barbados, Bridgetown
44
Australia, Canberra
45
Georgia Republic of, Tbilisi
46
Finland, Helsinki
47
Nauru, Yaren
48
Nepal, Kathmandu
49
Australia, Melbourne
50
Greenland, Nuuk
51
Sudan, Khartoum
52
Vanuatu, Port Vila
53
Canada, Calgary
54
Bermuda, Hamilton
55
Costa Rica, San Jose
56
New Caledonia, Noumea
57
Dominican Republic, Santo Domingo
58
Tuvalu, Funafuti
59
Latvia, Riga
60
Australia, Perth
61
Hungary, Budapest
62
Angola, Luanda
63
Lebanon, Beirut
64
Cote D’Ivoire, Abidjan
65
USA, Anchorage AK
66
Estonia, Tallinn
67
Togo, Lome
68
Slovenia, Ljubljana
69
Canada, Montreal
70
Liberia, Monrovia
71
Denmark, Copenhagen
72
Zambia, Lusaka
73
Guinea-Bissau, Bissau
74
Philippines, Manila
75
Israel, Jerusalem
76
Marshall Islands, Majuro
77
Serbia, Belgrade
78
Belize, Belmopan
79
Bolivia, La Paz
80
Australia, Brisbane
81
Niger, Niamey
82
Mali, Bamako
83
Peru, Lima
84
Madagascar, Antananarivo
85
United Arab Emirates, Abu Dhabi
86
Canada, Ottawa
87
Macedonia, Skopje
88
China, Wuhan
89
China, Shenzhen
90
Chad, N’Djamena
91
Mozambique, Maputo
92
Seychelles, Victoria
93
Montenegro, Podgorica
94
New Zealand, Auckland
95
Eritrea, Asmara
96
Sweden, Stockholm
97
China, Dalian
98
USA, Baltimore Md
98
USA, Washington DC
100
Chile, Santiago
101
USA, Columbus Ohio
102
Ecuador, Quito
103
USA, Atlanta GA
104
Isle of Man, Douglas
105
USA, Dallas Tex
106
Senegal, Dakar
107
Ukraine, Kiev
108
Armenia, Yerevan
109
Turkey, Ankara
110
Korea Democratic Republic of, Pyongyang
111
Poland, Warsaw
112
Benin, Cotonou
113
USA, New York NY
114
India, Mumbai
115
Oman, Muscat
116
France, Paris
117
USA, Fort Worth Tex
118
Russia, Moscow
119
USA, Cleveland Ohio
120
USA, Memphis Tenn
121
USA, St Louis MO
122
USA, Boston Mass
123
Burkina Faso, Ouagadougou
124
Czech Republic, Prague
125
Guam, Hagatna
126
United Kingdom, London
127
Australia, Adelaide
128
Croatia, Zagreb
129
USA, Portland Ore
130
USA, Tampa Fla
131
Fiji, Suva
132
USA, San Antonio Tex
133
Honduras, Tegucigalpa
134
Gabon, Libreville
135
Italy, Milan
136
USA, Detroit Mich
137
Cayman Islands, George Town
138
USA, El Paso Tex
139
Nicaragua, Managua
140
San Marino, San Marino
141
India, New Delhi
142
China, Guangzhou
143
Slovakia, Bratislava
144
Namibia, Windhoek
145
USA, Philadelphia Pa
146
USA, Austin Tex
147
USA, Las Vegas Nev
148
USA, Pittsburgh Penn
149
Trinidad and Tobago, Port-of-Spain
150
Martinique, Fort-de-France
151
Bahamas, Nassau
152
Nigeria, Lagos
153 India, Chennai
154
USA, Charlotte NC
155
Uruguay, Montevideo
156
Vietnam, Hanoi
157
Monaco, Monaco
158
Italy, Rome
159
Jersey, Saint Helier
160
India, Hyderabad
161
Belgium, Brussels
162
USA, Seattle Wash
163
Puerto Rico, San Juan
164
Egypt, Cairo
165
USA, Miami Fla
166
USA, San Francisco Calif
167
Algeria, Algiers
168
Samoa, Apia
169
USA, San Jose Calif
170
Guinea, Conakry
171
Cameroon, Douala
172
USA, Houston Tex
173
Guernsey, St Peter Port
174
Kosovo, Pristina
175
Spain, Madrid
176
Burundi, Bujumbura
177
India, Calcutta
178
Jamaica, Kingston
179
Netherlands, Amsterdam
180
Laos, Vientiane
181
Morocco, Rabat
182
Gibraltar, Gibraltar
183
China, Hong Kong
184
USA, Jacksonville Fla
185
Maldives, Male
186
Antigua and Barbuda, Saint John’s
187
Spain, Barcelona
188
Germany, Munich
189
Switzerland, Geneva
190
Sao Tome and Principe, Sao Tome
191
Saint Kitts and Nevis, Basseterre
192
Mauritius, Port Louis
193
India, Bangalore
194
United Kingdom, Glasgow
195
Japan, Tokyo
196 Malta, Velletta
197
Switzerland, Zurich
198
Germany, Frankfurt
199
Liechtenstein, Vaduz
200
USA, Phoenix Ariz
201
Falkland Islands, Stanley
202
Sri Lanka, Colombo
203
Sierra Leone, Freetown
204
USA, Denver Colo
205
Vatican City, Vatican City
206
Germany, Cologne
207
Dominica, Roseau
208
Greece, Athens
209
China, Tianjin
210
Portugal, Lisbon
211
USA, Chicago Ill
212
Saint Vincent and the Grenadines, Kingstown
213
Cape Verde, Praia
214
Luxembourg, Luxembourg
215
Paraguay, Asuncion
216
Cyprus, Nicosia
217
Bosnia and Herzegovina, Sarajevo
218
United Kingdom, Birmingham
219
Cameroon, Yaounde
220
USA, Los Angeles Calif
221
Germany, Bonn
222
Taiwan, Taipei
223
Austria, Vienna
224
USA, Milwaukee Wis
225
Saint Helena, Jamestown
226
Haiti, Port-au-Prince
227
USA, San Diego Calif
228
Germany, Hamburg
229
United Kingdom, Leeds
230
Andorra, Andorra la Vella
231
Botswana, Gaborone
232
Albania, Tirana
233
Malawi, Lilongwe
234
Germany, Berlin
235
Syria, Damascus
236
Guatemala, Guatemala City
237
Mauritania, Nouakchott
238
USA, Indianapolis Ind
239
Mongolia, Ulaanbaatar
240
Mexico, Mexico City
241
South Africa, Johannesburg
242
South Africa, Cape Town
243
Tonga, Nuku’Alofa
244
Suriname, Paramaribo
245
Bulgaria, Sofia
246
South Africa, Pretoria
247
South Africa, Durban
248
Moldova, Chisinau
249
Bhutan, Thimphu
250
Ghana, Accra
251
Afghanistan, Kabul
252
Cuba, Havana
253
Cambodia, Phnom Penh
254
Lesotho, Maseru
255
Grenada, Saint George’s
256
Uzbekistan, Tashkent
257
Saint Lucia, Castries
258
Swaziland, Mbabane
259
Romania, Bucharest
260
Tanzania, Dar es Salaam
261
Gambia, Banjul
262
Pakistan, Lahore
263
Pakistan, Islamabad
264
Pakistan, Karachi
265
Equatorial Guinea, Malabo
266
Panama, Panama City
267
Uganda, Kampala
268
Kyrgyzstan, Bishkek
269
El Salvador, San Salvador
270
China, Macao
271
Yemen, Sanaa
272
Zimbabwe, Harare

273 Iraq, Baghdad
274
Argentina, Buenos Aires
275
Congo Democratic Rep, Kinshasa
276
Tunisia, Tunis
277
Bangladesh, Dhaka
278
Lithuania, Vilnius
279
Iran, Tehran
280
Saudi Arabia, Riyadh
281
Libya, Tripoli
282
Kuwait, Kuwait City

Xpatulator.com is the most comprehensive source of international cost of living index information.

Premium Content Calculators:

Salary Purchasing Power Parity Calculator (SPPP): Download Demo SPPP Report

The SPPP report calculates how much you need to earn in another location to compensate for a higher cost of living, hardship, and the exchange rate, in order to have the same relative spending power and as a result have a similar standard of living as you have in your current location. Each new SPPP report uses 1 credit ($99). Recommended for a detailed comparison of 2 locations.

Cost of Living Allowance Calculator (COLA): Download Demo COLA Report

The COLA report calculates how much additional allowance (over and above your current salary) you need to earn in another location to compensate for a higher cost of living, hardship and the exchange rate, in order to have the same relative spending power and as a result have a similar standard of living as you have in your current location. Each new COLA report uses 1 credit ($99). Recommended for calculation of a cost of living allowance for short-term assignments.

Cost of Living Index Calculator (COLI) : Download Demo COLI Report

The COLI report calculates cost of living indexes for the locations you select using the base location you specify. You can select between 1 and all 276 locations. You can choose from any one of the 13 baskets or you can choose the overall cost of living index for each location. Each new COLI report uses a minimum of 1 credit ($99) allowing you to choose a Base Location and between 1 and 4 available comparator locations. Each additional set of 1 to 4 locations uses 1 additional credit. Refer to Pricing for more details. Recommended for the calculation of 2 or more cost of living indexes using your choice of base city.

1 credit costs $99. Register, buy credits online and you can run the premium content calculators and receive your reports online within minutes.

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International Cost of Living Ranking April 2010

This report provides you with the rank of cost of living indexes as at April 2010 for each of our 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups). Our calculators make use of the cost of living indexes, based on your input and Xpatulator’s data, to create reports online which you can save, e-mail or convert to a pdf file.

The April 2010 overall international cost of living rank, together with the previous Quarter’s rank, and the change in rank is as follows:

April 2010 Rank Country, City (Jan 2010 Rank)[Change in Rank]

1 Japan, Tokyo (1) [0]
2 Switzerland, Geneva (2) [0]
3 Brazil, Brasilia (3) [0]
4 Switzerland, Zurich (4) [0]
5 Norway, Oslo (6) [-1]
6 Denmark, Copenhagen (7) [-1]
7 Venezuela, Caracas (8) [-1]
8 China, Hong Kong (5) [3]
9 Liechtenstein, Vaduz (9) [0]
10 Australia, Sydney (15) [-5]
11 Central African Republic, Bangui (10) [1]
12 Kiribati, South Tarawa (24) [-12]
13 New Caledonia, Noumea (13) [0]
14 Greenland, Nuuk (14) [0]
15 Germany, Munich (16) [-1]
16 France, Paris (17) [-1]
17 Solomon Islands, Honiara (20) [-3]
18 Cameroon, Douala (12) [6]
19 Bermuda, Hamilton (25) [-6]
20 Monaco, Monaco (23) [-3]
21 San Marino, San Marino (22) [-1]
22 Italy, Milan (21) [1]
23 Vanuatu, Port Vila (28) [-5]
24 Chad, N’Djamena (11) [13]
25 Papua New Guinea, Port Moresby (27) [-2]
26 United Arab Emirates, Dubai (18) [8]
27 Germany, Frankfurt (29) [-2]
28 Korea Republic of, Seoul (26) [2]
29 Gabon, Libreville (33) [-4]
30 United Kingdom, London (37) [-7]
31 Austria, Vienna (30) [1]
32 Finland, Helsinki (31) [1]
33 Italy, Rome (35) [-2]
34 Germany, Cologne (36) [-2]
35 Russia, Moscow (38) [-3]
36 Croatia, Zagreb (32) [4]
37 Australia, Melbourne (43) [-6]
38 Australia, Canberra (44) [-6]
39 Ireland, Dublin (39) [0]
40 Comores, Moroni (42) [-2]
41 Qatar, Doha (34) [7]
42 Angola, Luanda (19) [23]
43 Isle of Man, Douglas (52) [-9]
44 Belgium, Brussels (45) [-1]
45 Netherlands, Amsterdam (50) [-5]
46 Australia, Perth (59) [-13]
47 Micronesia, Palikir (49) [-2]
48 Mali, Bamako (40) [8]
49 Germany, Hamburg (47) [2]
50 Germany, Bonn (48) [2]
51 Slovakia, Bratislava (53) [-2]
52 Cameroon, Yaounde (46) [6]
53 Taiwan, Taipei (41) [12]
54 Guernsey, St Peter Port (61) [-7]
55 Spain, Madrid (62) [-7]
56 Congo, Brazzaville (214) [-158]
57 Canada, Toronto (60) [-3]
58 Iceland, Reykjavik (64) [-6]
59 Togo, Lome (51) [8]
60 Singapore, Singapore (65) [-5]
61 Turkey, Ankara (56) [5]
62 Germany, Berlin (66) [-4]
63 USA, New York NY (54) [9]
64 Nigeria, Lagos (58) [6]
65 Bahamas, Nassau (55) [10]
66 Bahrain, Manama (57) [9]
67 Tuvalu, Funafuti (72) [-5]
68 Jersey, Saint Helier (74) [-6]
69 USA, Boston Mass (67) [2]
70 Vatican City, Vatican City (73) [-3]
71 Spain, Barcelona (76) [-5]
72 USA, San Jose Calif (70) [2]
73 Nauru, Yaren (75) [-2]
74 United Arab Emirates, Abu Dhabi (71) [3]
75 Senegal, Dakar (80) [-5]
76 Canada, Vancouver (78) [-2]
77 USA, San Francisco Calif (68) [9]
78 Luxembourg, Luxembourg (79) [-1]
79 Czech Republic, Prague (69) [10]
80 Hungary, Budapest (83) [-3]
81 United Kingdom, Glasgow (89) [-8]
82 Estonia, Tallinn (82) [0]
83 Palau, Melekeok (81) [2]
84 Falkland Islands, Stanley (93) [-9]
85 Sweden, Stockholm (84) [1]
86 Australia, Brisbane (102) [-16]
87 Portugal, Lisbon (91) [-4]
88 Canada, Calgary (95) [-7]
89 Guinea-Bissau, Bissau (85) [4]
90 Burkina Faso, Ouagadougou (96) [-6]
91 Colombia, Bogota (77) [14]
92 Gibraltar, Gibraltar (186) [-94]
93 Malta, Velletta (90) [3]
94 USA, Anchorage AK (94) [0]
95 Djibouti, Djibouti (86) [9]
96 Cote D’Ivoire, Abidjan (97) [-1]
97 United Kingdom, Birmingham (108) [-11]
98 New Zealand, Auckland (113) [-15]
99 Azerbaijan, Baku (99) [0]
100 Haiti, Port-au-Prince (92) [8]
101 USA, Philadelphia Pa (103) [-2]
102 USA, Los Angeles Calif (101) [1]
103 Andorra, Andorra la Vella (109) [-6]
104 Benin, Cotonou (104) [0]
105 United Kingdom, Leeds (117) [-12]
106 Greece, Athens (115) [-9]
107 USA, Washington DC (112) [-5]
108 Trinidad and Tobago, Port-of-Spain (100) [8]
109 Samoa, Apia (107) [2]
110 China, Beijing (121) [-11]
111 Sudan, Khartoum (130) [-19]
112 Cayman Islands, George Town (111) [1]
113 Serbia, Belgrade (106) [7]
114 Montenegro, Podgorica (128) [-14]
115 Canada, Montreal (120) [-5]
116 Lebanon, Beirut (105) [11]
117 Cape Verde, Praia (118) [-1]
118 Saint Helena, Jamestown (125) [-7]
119 USA, Baltimore Md (116) [3]
120 India, Mumbai (122) [-2]
121 Sao Tome and Principe, Sao Tome (87) [34]
122 Seychelles, Victoria (88) [34]
123 USA, San Diego Calif (119) [4]
124 Barbados, Bridgetown (129) [-5]
125 Marshall Islands, Majuro (131) [-6]
126 Israel, Jerusalem (110) [16]
127 Lithuania, Vilnius (126) [1]
128 Australia, Adelaide (145) [-17]
129 Poland, Warsaw (136) [-7]
130 Saudi Arabia, Riyadh (124) [6]
131 Zambia, Lusaka (123) [8]
132 Indonesia, Jakarta (127) [5]
133 USA, Seattle Wash (133) [0]
134 Kuwait, Kuwait City (140) [-6]
135 Chile, Santiago (172) [-37]
136 China, Shanghai (173) [-37]
137 Martinique, Fort-de-France (139) [-2]
138 Niger, Niamey (135) [3]
139 USA, Miami Fla (134) [5]
140 USA, Portland Ore (138) [2]
141 USA, Chicago Ill (143) [-2]
142 Kazakhstan, Almaty (137) [5]
143 Canada, Ottawa (151) [-8]
144 Mauritius, Port Louis (144) [0]
145 Guinea, Conakry (114) [31]
146 India, New Delhi (153) [-7]
147 Latvia, Riga (148) [-1]
148 Puerto Rico, San Juan (146) [2]
149 Jordan, Amman (142) [7]
150 India, Chennai (159) [-9]
151 Tanzania, Dar es Salaam (132) [19]
152 Cyprus, Nicosia (163) [-11]
153 Georgia Republic of, Tbilisi (147) [6]
154 Guam, Hagatna (152) [2]
155 Slovenia, Ljubljana (162) [-7]
156 Malawi, Lilongwe (158) [-2]
157 Ukraine, Kiev (160) [-3]
158 Uruguay, Montevideo (176) [-18]
159 Grenada, Saint George’s (161) [-2]
160 Jamaica, Kingston (149) [11]
161 Botswana, Gaborone (150) [11]
162 India, Calcutta (166) [-4]
163 Turkmenistan, Ashgabat (257) [-94]
164 India, Hyderabad (171) [-7]
165 Liberia, Monrovia (154) [11]
166 Rwanda, Kigali (156) [10]
167 Maldives, Male (155) [12]
168 USA, Jacksonville Fla (164) [4]
169 USA, Cleveland Ohio (169) [0]
170 Moldova, Chisinau (167) [3]
171 Equatorial Guinea, Malabo (174) [-3]
172 USA, Tampa Fla (168) [4]
173 USA, Dallas Tex (165) [8]
174 USA, Atlanta GA (170) [4]
175 USA, Phoenix Ariz (177) [-2]
176 Fiji, Suva (192) [-16]
177 Sierra Leone, Freetown (141) [36]
178 USA, Milwaukee Wis (181) [-3]
179 USA, Denver Colo (175) [4]
180 Ghana, Accra (98) [82]
181 South Africa, Johannesburg (217) [-36]
182 USA, Charlotte NC (182) [0]
183 Macedonia, Skopje (183) [0]
184 USA, Detroit Mich (195) [-11]
185 USA, Pittsburgh Penn (185) [0]
186 Timor-Leste, Dili (178) [8]
187 Korea Democratic Republic of, Pyongyang (205) [-18]
188 Romania, Bucharest (179) [9]
189 Somalia, Mogadishu (194) [-5]
190 Mexico, Mexico City (193) [-3]
191 USA, Austin Tex (196) [-5]
192 Algeria, Algiers (180) [12]
193 South Africa, Cape Town (246) [-53]
194 USA, Columbus Ohio (198) [-4]
195 Gambia, Banjul (184) [11]
196 Honduras, Tegucigalpa (189) [7]
197 India, Bangalore (209) [-12]
198 Philippines, Manila (190) [8]
199 Antigua and Barbuda, Saint John’s (187) [12]
200 Bulgaria, Sofia (211) [-11]
201 Afghanistan, Kabul (191) [10]
202 Syria, Damascus (203) [-1]
203 Kosovo, Pristina (206) [-3]
204 Morocco, Rabat (197) [7]
205 USA, Fort Worth Tex (200) [5]
206 USA, Las Vegas Nev (204) [2]
207 Mozambique, Maputo (157) [50]
208 Myanmar, Yangon (218) [-10]
209 Iran, Tehran (188) [21]
210 South Africa, Pretoria (233) [-23]
211 Saint Kitts and Nevis, Basseterre (201) [10]
212 Kenya, Nairobi (210) [2]
213 USA, San Antonio Tex (216) [-3]
214 Belarus, Minsk (244) [-30]
215 Brunei, Bandar Seri Begawan (208) [7]
216 Egypt, Cairo (230) [-14]
217 Cuba, Havana (202) [15]
218 Namibia, Windhoek (199) [19]
219 South Africa, Durban (252) [-33]
220 Peru, Lima (207) [13]
221 Saint Vincent and the Grenadines, Kingstown (212) [9]
222 USA, Houston Tex (213) [9]
223 Guyana, Georgetown (221) [2]
224 Thailand, Bangkok (215) [9]
225 USA, Indianapolis Ind (219) [6]
226 Vietnam, Hanoi (222) [4]
227 Dominica, Roseau (226) [1]
228 Guatemala, Guatemala City (245) [-17]
229 Albania, Tirana (223) [6]
230 Ethiopia, Addis Ababa (231) [-1]
231 USA, St Louis MO (224) [7]
232 USA, Memphis Tenn (229) [3]
233 Lesotho, Maseru (220) [13]
234 Costa Rica, San Jose (235) [-1]
235 Madagascar, Antananarivo (227) [8]
236 USA, El Paso Tex (228) [8]
237 Armenia, Yerevan (225) [12]
238 Eritrea, Asmara (254) [-16]
239 Congo Democratic Rep, Kinshasa (63) [176]
240 Dominican Republic, Santo Domingo (232) [8]
241 Oman, Muscat (237) [4]
242 Mauritania, Nouakchott (234) [8]
243 Belize, Belmopan (236) [7]
244 Uganda, Kampala (242) [2]
245 Panama, Panama City (240) [5]
246 El Salvador, San Salvador (239) [7]
247 Nicaragua, Managua (238) [9]
248 Burundi, Bujumbura (241) [7]
249 China, Shenzhen (253) [-4]
250 China, Wuhan (260) [-10]
251 Malaysia, Kuala Lumpur (247) [4]
252 Laos, Vientiane (243) [9]
253 Bangladesh, Dhaka (248) [5]
254 China, Dalian (272) [-18]
255 Tunisia, Tunis (250) [5]
256 Saint Lucia, Castries (249) [7]
257 China, Macao (255) [2]
258 Swaziland, Mbabane (251) [7]
259 Kyrgyzstan, Bishkek (274) [-15]
260 Bosnia and Herzegovina, Sarajevo (256) [4]
261 Uzbekistan, Tashkent (275) [-14]
262 Nepal, Kathmandu (263) [-1]
263 Mongolia, Ulaanbaatar (280) [-17]
264 Paraguay, Asuncion (268) [-4]
265 Tonga, Nuku’Alofa (264) [1]
266 Iraq, Baghdad (258) [8]
267 Suriname, Paramaribo (259) [8]
268 Libya, Tripoli (265) [3]
269 Pakistan, Lahore (261) [8]
270 Bolivia, La Paz (262) [8]
271 Pakistan, Islamabad (266) [5]
272 China, Guangzhou (278) [-6]
273 Pakistan, Karachi (267) [6]
274 Ecuador, Quito (269) [5]
275 Cambodia, Phnom Penh (270) [5]
276 Sri Lanka, Colombo (271) [5]
277 Tajikistan, Dushanbe (273) [4]
278 Bhutan, Thimphu (276) [2]
279 Argentina, Buenos Aires (277) [2]
280 Yemen, Sanaa (279) [1]
281 China, Tianjin (281) [0]
282 Zimbabwe, Harare (282) [0]

Xpatulator.com is the most comprehensive source of international cost of living index information.

Premium Content Calculators:

Salary Purchasing Power Parity Calculator (SPPP): Download Demo SPPP Report

The SPPP report calculates how much you need to earn in another location to compensate for a higher cost of living, hardship, and the exchange rate, in order to have the same relative spending power and as a result have a similar standard of living as you have in your current location. Each new SPPP report uses 1 credit ($99). Recommended for a detailed comparison of 2 locations.

Cost of Living Allowance Calculator (COLA): Download Demo COLA Report

The COLA report calculates how much additional allowance (over and above your current salary) you need to earn in another location to compensate for a higher cost of living, hardship and the exchange rate, in order to have the same relative spending power and as a result have a similar standard of living as you have in your current location. Each new COLA report uses 1 credit ($99). Recommended for calculation of a cost of living allowance for short-term assignments.

Cost of Living Index Calculator (COLI) : Download Demo COLI Report

The COLI report calculates cost of living indexes for the locations you select using the base location you specify. You can select between 1 and all 276 locations. You can choose from any one of the 13 baskets or you can choose the overall cost of living index for each location. Each new COLI report uses a minimum of 1 credit ($99) allowing you to choose a Base Location and between 1 and 4 available comparator locations. Each additional set of 1 to 4 locations uses 1 additional credit. Refer to Pricing for more details. Recommended for the calculation of 2 or more cost of living indexes using your choice of base city.

1 credit costs $99. Register, buy credits online and you can run the premium content calculators and receive your reports online within minutes.

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Posted in April, cost of living index, global, international, world | Comments Off on International Cost of Living Ranking April 2010

How to Calculate a Cost of Living Index

Definition:
A Cost Of Living Index (COLI) is a price index that measures the relative cost of living over time. It is an index that measures differences in the price of goods and services.

A COLI measures changes over time in the amount that consumers need to spend to reach a certain level or standard of living. COLI is typically a number, where the Base Index is 100.

A Consumer Price Index (CPI) on the other hand is a measure of the average change over time in the prices paid by consumers. CPI is typically a percentage change compared to the previous period. An increase in CPI is called inflation, while a decrease is called deflation. Both the COLI and the CPI use a market basket of consumer goods and services.

A COLI is also used to measure the price of the same quantities and types of goods and services in different geographic locations. The COLI used in this way shows the difference in living costs between different locations.

An international COLI measures the differences in the local currency price of the same quantities and types of goods and services in different countries converted to a single currency. This shows the difference in relative living costs between international cities. The cost of living difference between locations indicates the amount that consumers need to spend to maintain a certain level or standard of living.

Amongst other uses, COLI’s are used by organizations and individuals in the calculation of expatriate salary and cost of living allowances in order to ensure consistent salary purchasing power between the home and host country.

Next we will discuss how to calculate a COLI between 2 locations applicable to expatriate employees.

Methodology:
For consistency the goods and services are grouped into similar/related basket groups.

For accuracy the exact quantity and type of each of the goods and services within each basket are defined. Using these definitions, the prices of the same quantities and types of goods and services in each geographic location is obtained from at least 3 different suppliers representative of those that would typically be used by expatriates.

When calculating the cost of living between 2 locations the difference in the aggregate cost of all the selected basket groups are examined in each location using the average reported price in each location for the same quantity of each item. The basket groups are weighted according to Expatriate expenditure norms.

If for example the following 13 basket groups had the following weighting, The 13 basket groups do not count equally.:

•Alcohol & Tobacco (Weight 2.0%)
•Clothing (Weight 2.5%)
•Communication (Weight 2.0%)
•Education (Weight 5.0%)
•Furniture & Appliances (Weight 5.0%)
•Groceries (Weight 16.5%)
•Healthcare (Weight 5.0%)
•Household (Weight 30.0%)
•Miscellaneous (Weight 3.0%)
•Personal Care (Weight 3.0%)
•Recreation and Culture (Weight 6.0%)
•Restaurants, Meals Out and Hotels (Weight 2.0%)
•Transport (Weight 18.0%)

The prices for the defined quantities and types of goods and services in each location are gathered on a quarterly basis and the resulting index is updated for each of the 13 baskets in each location. These indexes are then used to calculate the COLI between any 2 locations. The COLI is the relative differential in the local cost of the basket groups and the ruling exchange rate between the 2 selected locations.

When comparing the cost of living between different locations the objective is to calculate the difference in the cost of living expressed as an index using one of the locations as the Base. We typically refer to the home location as the Base Location (Index = 100).

Practical Example:
Take for example a company headquartered in Location A with overseas operations in Location B and C. They send employees on 2 to 3 year assignments from time to time to Location B and C and need a set of COLI’s using Location A as the Base City in order to calculate assignment salary and cost of living allowances.

In our example Location A has an index of 92, Location B has an index of 129, and Location C has an index of 75.

Using our example, you want to know what the COLI is for Location B and C using Location A as the Base Location:

•Location A COLI = (Location A / Location A) X 100 = (92 / 92) X 100 = 100
•Location B COLI = (Location B / Location A) X 100 = (129 / 92) X 100 = 140.2
•Location C COLI = (Location C / Location A) X 100 = (75 / 92) X 100 = 81.5

The COLI indicates the difference in the cost of living between the locations. In the above example the COLI of 140.2 means that Location B is 1.402 times more expensive than Location A. In this example the COLI is positive (higher). This would mean that a person who moves from Location A to Location B would need to earn 40.2% more, to have the same standard of living in Location B as they have currently in Location A.

Location C on the other hand has a COLI of 81.5. This means that Location C is 0.815 times less expensive than Location A. In this example the COLI is negative (lower). This would mean that a person who moves from Location A to Location C could earn 18.5% less and have the same standard of living in Location C as they have currently in Location A.

Steps to calculating a cost of living index:
Given that it is costly and time consuming to create comprehensive baskets and to price them accurately in each location yourself, it is generally more cost effective to use a service provider such as Xpatulator. Xpatulator has comprehensive index data for 13 basket groups in 282 global locations updated quarterly and available online.

The following steps will help you create a set of COLI’s using Xpatulator’s Cost of Living Index Calculator (COLI):

Before you start you will need to have registered.

1) Login using your username and password
2) Check that you have sufficient credit(s)
3) Select “Calculators” from the left hand menu
4) Choose the Cost of Living Index Calculator (COLI): The COLI report calculates cost of living indexes for the locations you select using the base location you specify. You can select between 1 and all 282 locations. You can choose from any one of the 13 baskets or you can choose the overall cost of living index for each location. The COLI report uses 1 credit per set of 4 cost of living indexes.
The calculator will prompt you for the following inputs:
5) Reference Information: Give your report a reference. This will help you identify your reports for future reference.
6) Base Location: Select the location that will be the base location. All other selected locations will be compared to this location.
7) Available Locations: Select all locations that you require a cost of living index for. Each credit will allow you to select 4 locations. You will notice that as you select each additional location the “Remaining number of locations you can select” will change decrease by 1. You will also notice that for each set of 4 locations the “Selected locations will cost” will increase by 1 credit.
8) Select which cost of living index basket you require. The Overall Cost of Living Index covers all 13 Cost of Living Baskets, weighted for expatriate expenditure norms.
9) Run Report: When you are sure that all your selection criteria are correct, click on run report. At this point the calculator will use the number of credits shown in the calculator. Just above the cost of living baskets the number of credits required will be displayed “Selected locations will cost: XX credits”. If you do not have enough credits you will need to either need to “Purchase Credits” using the left hand menu or decrease the number of locations selected.

Using Xpatulator’s Cost of Living Index Calculator (COLI) your report will look like the attached example View Demo

Applying a cost of living index to a salary calculation:
The COLI values are useful in calculating an appropriate salary in another location. A calculator such as Xpatulator’s Salary Purchasing Power Parity Calculator (SPPP) calculates an appropriate salary using the COLI, exchange rate and hardship difference.

The salary used in the calculator is gross or net salary. We advise using net (after tax) salary. This has will result in a net salary result in the new location, which would then be grossed up for tax and any other statutory deductions in the new location. The calculator will then apply the following formula based on the selections in the calculator:

Salary X Cost of living Index Differential X Exchange Rate X Hardship Differential = Calculated Salary in new location

Applying the formula to our earlier example with a salary of $100,000 in Location A, sent on assignment to Location B, with an increase in hardship of 10% and paid in US Dollars:

•Location B COLI = 140.2
•Location C COLI = 81.5

Salary Calculation = $100,000 X 1.402 X 1 X 1.1 = $154,220

This means that an employee earning a salary of $100,000 in Location A, requires a salary of $154,220 in Location B to compensate for a 40.2% higher cost of living and a 10% higher level of hardship.

Using Xpatulator’s SPPP Calculator your report will look like the attached example
View Demo

Posted in COLI, cost of living calculator, cost of living index | Comments Off on How to Calculate a Cost of Living Index

Expat life in Sri Lanka, Colombo

I recently visited the wonderful island of Sri Lanka, and found a country full of surprises.

Sri Lanka is situated just south of India, in the Indian Ocean. Once known as the Dominium of Ceylon and often referred to as the tea country, tea plantations abundantly thrive across the island, with spice gardens, banana and coconut palms growing randomly to create a jungle of natural resources.

People, animals and transport seem to co-exist side by side with no animosity towards each other. Dogs wonder aimlessly across or bask in the sun at the side of roads, cows and goats roam around everywhere, even on the beaches (which I found rather amusing) and people are everywhere, whether walking, cycling, using a tuc-tuc, motorbike with 5 astride, in a taxi, bus, car or truck, each takes up a space of the not too wide road. But co-exist they do, there is no anger at being stuck behind a truck, merely a short hooting of the horn to say I am here and would like to pass, politeness abounds and the expression and sounds are all of friendliness, within a country that sorely needs help at redeveloping itself since the tsunami. People are poor and yet happiness is everywhere…. Not just for the child on the hip or the person at their side, but for expats and tourists as well.

Tourists fluctuate towards the resorts and some chance the areas slightly outside of these areas, to experience a quieter less harassed holiday. Small pockets of expats can be found, dotted all over the country. When you bump into these people and chat about life on the island, there is not much to complain about. Yes, sometimes the water gets turned off or the electricity, yes the internet is not as fast as they would like it to be. Isn’t that how most people feel in developed countries anyway: The faster it gets the faster we want it. In this little piece of paradise, expats are not too concerned that it takes a little longer to do things here, the people are prepared to wait, not too hasty to move forward too quickly. There was a lot of talk and concern about the elections and safety within the country and there are still road blockades and police / army personnel with guns wandering around keeping peace if necessary. However, with 70% of the population being Buddhists, the lifestyle is peaceful and life simplistic.

From an expat perspective, I could not fault the lifestyle. As said above, yes there are definite things missing, things are slower, it takes a good 4 – 6 hours to get from Colombo to Galle and similarly to anywhere about 200km’s apart. I cannot say that the roads are particularly in good condition, but in the 10 days that I visited, I did not see one accident. Hardships could include the lack of being able to get from one part of the island to another quickly, the lack of fast internet connection, perhaps the human waste / refuse, which allows for the influx of flies, the dirt which is left to lie around and lastly the lack of funds to rebuild the country to what it was before the Tsunami.

Having said that, I have to look at all the good things that you find there, the beauty of the natural resources, how the nationals and expats are trying to rebuild the country, the beaches, game parks and mountains. This is truly a beautiful part of the world.

Expat Cost of living summary

The currency in Sri Lanka is the Sri Lankan Rupee LKR

The Exchange rate as at 15 January 2010 was $1 = 114.217 Rupees

I am going to break the Cost of living down according to some of the Xpatualtor basket items :

Alcohol and Tobacco : Alcohol at Bar, Beer, Cigarettes, Locally Produced Spirit, Whiskey, Wine

Cigarettes (20s) – $3.14 – $9

Domestic Beer(500ml) – $2.50

Imported Beer (330ml) – $5.80

Wine at a bar – $6 a glass

Wine at a shop – $15 (750ml bottle)

Hotels tend to increase the prices of alcohol as it is the one way that they can make a profit. There are many small hotels and restaurants which create a competitive edge to where you can stay.

Clothing : Business Suits, Casual Clothing, Children’s Clothing and footwear, Coats and hats, Evening Wear, Shoe Repairs, Underwear

Casual Long Sleeved Shirt (Men) – $12

Casual Long Sleeved Trousers (Men) – $20

Shorts (Men) – $11

T-Shirt (Men) – $6

Casual Blouse (Women) – $7

Casual Skirt (Women) – $12

Children’s Jeans (Boys) – $5

Children’s Jeans (Girls) – $3.50

Children’s Shirt(Boys) – $5

Children’s Shirt(Girls) – $4

Clothes are extremely cheap, in Colombo a person can get most of the name branded clothing at fairly reasonable prices in Factory shops.

Communication : Home Telephone Rental and Call Charges, Internet Connection and service provider fees, Mobile / Cellular Phone Contract and Calls

Monthly phone rental – $4.36

Phone call rate – $0.05 for a local call

Internet line connection fee – $104 (buy all equipment with installation)

Internet service provider fee – $17 (1 geg free thereafter)

Monthly mobile contract fee – $2.18 (for the year)

Mobile / cellular call rate – 90% of phones are prepaid,

Mobile Phone 100 Minutes Call – $38

– $0.012 – $0.05 sms peak times

Due to so many of the nationals working overseas to send money home, the communication costs are extremely low and there are often special deals or no cost is involved in the actual call.

Education : Crèche / Pre-School Fees, High School / College Fees, Primary School Fees, Tertiary Study Fees

Annual Creche fee – $4.36 per month

Annual Primary school fee – $260 – $436 per month

Annual High School fee – $260 – $436 per month

Annual 1st Year Tertiary / University fee – $260 – $436 per month (dependent on which

private school they go to)

Private schooling is the most expensive on the island for expat children to attend, however the rates in comparison to other countries are reasonable. Expats that I came across spoke highly of the education system in the country and were happy with the private education that their children were receiving.

Furniture and Appliances : DVD Player, Fridge Freezer, Iron, Kettle, Toaster, microwave, Light Bulbs, Television, Vacuum Cleaner, Washing Machine

DVD Player – $87

Fridge / Freezer – $489 (LG / Whirlpool – 4 year guarantee)

Iron – $12 cheap – $35 top of the range

Kettle – $20 cheap – $37 top of the range

Microwave – $191

TV 21 inch – $244 (2 year guarantee)

Washing Machine LG – $570

Discounts can be negotiated with stores on all items

Groceries bought in a grocery store : Baby Consumables, Baked Goods, Baking, Canned Foods, Cheese, Cleaning Products, Dairy, Fresh Fruits, Fresh Vegetables, Fruit Juices, Frozen, Meat, Oil & Vinegars, Pet Food, Pre-Prepared Meals, Sauces, Seafood, Snacks, Soft Drinks, Spices & Herbs

Powdered baby formula (400g) – $7

Plain biscuits (100g) – $0.20

Loaf white bread (200g) – $0.70

Cake Flour (1kg) – $2.80

Baked Beans (415g) – $1.92

Tuna (185g) – $2.75

Cheese : Cheddar (250g) – $6.63

Crisps : Pringles (139g) – $2.50

Autowash clothing powder (750g) – $1.57

Dishwash liquid (500g) – $0.87

Clothing Softener (2l) – $5.40

Breakfast Cereal (250g) – $2.45

Butter (227g) – $2.18

Milk (1l) – $1.40

Eggs (12) – $1.80

Orange Juice (1l) – $2.80

Frozen Mixed Vegetables (1kg) – $6.20

Cooking oil (1l) – $3.22

Olive oil (500ml) – $8.28

Can of coke (355ml) – $1.00

Local Fizzy Soft Drink (1l) – $1.30

Local Natural Mineral Water (5l) – $1.08

Tea Bags (200g) – $1.85

Instant Coffee (100g) – $6.75

Local Ground Coffee (200g) – $3.66

Salt (400g) – $0.26

Pepper (400g) – $0.35

Prices were obtained from local grocery stores, there are no big department stores to shop in.

Healthcare : General Practitioner Consultation rates, Hospital Private Ward Daily, Rate, Non-Prescription Medicine, Private Medical Insurance / Medical Aid Contributions

GP Private rate visit with meds – $3.50

Hospital Private ward rates – $28 per day

Dentistry – Tooth extraction – $4.35

Most expats use Bupa or the Sri Lankan Equivalent

Household : House / Flat Mortgage, House / Flat Rental, Household Electricity Consumption, Household Gas / Fuel Consumption, Household Water Consumption, Local Property Rates / Taxes / Levies

Rent 2 bed Apartment City Centre – $700

Rent 2 bed Apartment outside of City Centre – $600

Electricity, Gas, Water, Garbage per – $80 – $90 per month for an average

household, this is expensive when taking household

air conditioning into account

Gas / Fuel – 12 ½ kg bottle – $14

Local property Rates – 8 – 10% of value of property

Expats cannot buy a property directly, this has to be done via a Lawyer who owns the property. Mortgage for locals is 4/5%. This is where most expats find the costs creep in, running the air conditioners is extremely expensive as well as the cost of water.

Miscellaneous : Domestic Help, Dry Cleaning, Linen, Office Supplies, Newspapers and Magazines, Postage Stamps

Domestic Rates – full time per person – $80 average

1 Black inkjet printer cartridge – $14

1 Color inkjet printer cartridge – $21

500 sheets printer paper – $5.23

Local Daily Newspaper – $0.17

International Daily Newspaper – $0.45

International Magazine – $20

International Airmail Stamps – $0.22

Domestic Stamps – $0.12

Domestic help is cheap and most employees either live on the property or close by. Office supplies are reasonable, with CD’s and DVD’s freely available on the street where most locals buy them.

Personal Care : Cosmetics, Haircare, Moisturiser / Sun Block, Nappies, Pain Relief Tablets, Toilet Paper, Toothpaste, Soap / Shampoo / Conditioner

Body lotion (400ml) Vaseline Intensive car – $4.53

Toilet paper 1 ply per roll – $0.50

Toothpaste (200g) – $1.92

Shampoo (200ml) – $2.40

Some of the items that can be purchased can be expensive, like creams, sunblocks and cosmetic creams. Name brand products are the most expensive.

Recreation and Culture : Books, Camera Film, Cinema Ticket, DVD and CD’s, Sports goods, Theatre Ticket

Books paper back – $10

Cinema ticket – $0.50

DVD / CD Imported – $2

Cricket ticket – $0.50 to $8

Theatre Ticket – only in Colombo – $30

Hard cover books are expensive in the country, but paper back books are of a similar cost to the US and UK. Cinema tickets are cheap due to the availability of cheap DVD replicas which can be bought on street corners. International cricket tickets are also kept cheap for the local population.

Restaurants / Meals out / Hotels : Business Dinner, Dinner at Restaurant (non fast food), Hotel Rates, Take Away Drinks & Snacks (fast Food)

Business Dinner excl Alcohol – $22 per person

Dinner / lunch at local restaurant – $8 per person

Mc Donalds Big Mac – $4.10

Hotel Rates 3* – $8 – $50 pppn

Hotel Rates 4* – $80 – $120 pppn

Hotel Rates 5* – $140 pppn upwards

Take away – Can of coke x 1 – $0.70

Medium pizza – $3.50

Hamburger – $2.00

Coffee – pot x 3 cups – $1.40

As in most countries how much you pay for a meal is dependent on where you go, the local restaurants have great local meals, as well as international flavours, we found a fabulous vegetarian restaurant in Galle, well worth a visit and all prices were fairly cheap. Some restaurants do take advantage of the tourist population and serve sub standard meals. However, most restaurants were good with their portions and meal plans.

Transport : Hire Purchase / Lease of Vehicle, Petrol / Diesel, Public Transport, Service Maintenance, Tyres, Vehicle Insurance, Vehicle Purchase

Hire / Lease car – Sedan Toyota Corolla – $37.14 per day for 1 week

Hire / Lease car – Toyota RAV4 – $46.71 per day for 1 week

Petrol unleaded per litre – $1.23

Diesel per litre – $0.64

Bus Ticket (one way) – $1.00

Taxi Ride – per km – $0.50

Tuc Tuc – 10 km ride – $6.00

Train Ticket 2nd class – $1.57

If you are visiting I would suggest you use the local taxis and tuc-tucs, driving can be a head-ache and unpleasant experience if you are not used to the local norms. However, speeds do not go over 80km on the bigger roads and overall a safe place to drive.

The above detail are some of the items form the basis of the cost of living indexes for each basket group in the Xpatulator calculators, these costs are then used with their indexes and exchange rates to calculate the cost of living in different locations.

For more information on the Xpatulator calculators, cost of living and locations please go to www.xpatulator.com

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