Background The major source of dietary iodine for the Sri Lankan population is iodized salt. The recommended fortification level of iodine is 15.0–30.0 ppm. Both excessive and insufficient iodine levels are harmful to the human body. Inadequate consumption of iodine leads to iodine deficiency disorders and excessive intake causes iodine-induced hyperthyroidism. Methods This study assessed the iodine content in commercially available salt products and evaluated the stability of iodine under different storage conditions. Packeted crystal and powdered salt products were used to determine the total iodine content by analyzing both iodide (I−) and iodate (IO3−). The effect of temperature and packaging material on the stability of iodine was also recorded. Results The results revealed that five products out of ten exceeded the recommended iodine level and were in the range of 31.60 ± 1.5 to 42.19 ± 3.48 ppm. The iodine content of four products was within the recommended fortified levels, and one had a lower amount of 12.77 ± 0.35 ppm. The mean iodine content of powdered salt was 35.08 ppm and 27.25 ppm in crystal salt. There was no significant effect of temperature at 25°C, 45°C, and 95°C on total iodine level and iodine level by iodate. The total mean iodine loss after heating to 95°C for 30 minutes was 5.0% in powdered salt and 8.7% in crystal salts. Total iodine retained during storage in opened containers for one week in glass containers was 90.78% in crystal salt and 87.11% in powdered salt. The percentage of iodine retained in plastic containers was 83.77% in crystal salt and 71.6% in powdered salt. In coconut shell containers 61.94% and 49.23% iodine retained was observed in crystal salt and powdered salt respectively. The lowest iodine retain was in gunny bags 54.24% in crystal salt and 44.77% in powdered salt. Conclusions Most of the commercially available salt products (50%) contain a higher amount of iodine than the recommended fortification levels. Short-term exposure of iodized salt to cooking temperatures and in different storage containers didn’t show any remarkable reduction in the levels of iodine.