Colombo is one of the least expensive cities in the world, according to an annual survey released on Monday.
Mumbai in India and Karachi in Pakistan were the joint cheapest locations in the Economist Intelligence Unit's (EIU) worldwide cost of living index survey followed by New Delhi, the Nepalese capital of Kathmandu and Algerian capital of Algiers, reuters reported.
While Asia and Australasia is home to 11 of the 20 most expensive cities, the region is also home to six of the 10 cheapest.
Referring to India and its forecasts for growth, the EIU said: "Income inequality means that household spending levels are low on a per capita basis, which has kept prices down, especially by Western standards."
Rounding out the bottom 10 were Bucharest in Romania, Colombo in Sri Lanka, Panama City, Jeddah in Saudi Arabia, and Iranian capital Tehran.
The cost of living the Australian dream has surged with Sydney and Melbourne among the five most expensive cities in the world, outstripping most European and US locations, according to an annual survey released on Monday.
Asia and Australasia account for 11 of the world's top 20 most expensive cities, with eight from Europe and one from South America, the Economist Intelligence Unit's (EIU) worldwide cost of living index found. No North American cities featured in the top 20.
This compared to a decade ago when there were six Asian cities, 10 European cities and four US cities in the top 20 of the list that calculates living costs in 131 cities in 93 countries and is used by companies for costing when relocating staff.
In the 2013 survey, Tokyo reclaimed the title as the world's most expensive city.
Osaka in Japan was ranked the second most expensive.
The survey is based on costs of over 160 items ranging from food and clothing, to domestic help, transport and utilities.