The Sri Lanka hanging parrot is a small, brightly coloured parrot that is only found in Sri Lanka. It has a green body, a yellowish front, and a red rump. Outside of the breeding season, it is usually found alone or in small groups. Its flight is quick and direct, and it makes local movements based on the availability of the fruit, seeds, buds, and blossoms that comprise its diet.
The Sri Lanka hanging parrot is entirely arboreal, never touching the ground. It nests in tree holes and lays 2–3 eggs. Females help build the nest, while males stay close by and observe the females. The breeding season lasts from the beginning of the year to the end of September.
They prefer long, narrow hollows with small entrance holes in dead tree stumps or trees. The female is seen carrying nesting material into the nest in her rump feathers, which may include pieces of bark and leaves. Females tear the leaves into long strips and store them in their rump feathers. This is how it transports nesting materials to its nest in the tree cavity.
A clutch may contain two to four white eggs. The female is the only one who incubates the eggs for 20 days while the male feeds her. The first breeding season begins in January and lasts until April, and breeding activities can be observed again from July to September if conditions are favourable.