Gary Ferguson, 47, also from the UK, was found dead in his colleague’s apartment in Rangoon, police said.
His wife reportedly discovered him with head and chest wounds in the suspect’s flat on Sunday morning after he failed to return home.
Burmese police said Harris Binotti has not been seen since he and Mr Ferguson had been drinking together in the commercial capital of the country, also known as Myanmar.
The 25-year-old is wanted on suspicion of carrying out the attack, according to an officer in Rangoon.
The officer said: “At the time they were together drinking. They were talking and fighting.”
Mr Ferguson and the suspect both taught English at the Horizon International School in Rangoon, which is also known as Yangon.
The victim had worked there for a year while the suspect had been there for around three months, a school spokesman said.
He said: “We don’t know exactly what happened.
“They were together and they had been drinking and enjoying the night and after that he (Mr Ferguson) was found dead on Sunday morning.
“They were friends but they had been drinking.
“He (Mr Binotti) is now missing and there is an investigation.
“We send our condolences to Mr Ferguson’s family.”
Mr Ferguson’s wife is thought to be Thai.
A school secretary, who gave her name as Yamin, said: “We are very shocked about the news. These two teachers were very close friends so everyone is shocked.”
Mr Binotti is thought to be from Dumfries but also lived in Aberdeen.
A spokesman for the Foreign Office said: “We are providing help and support to the family of a British national following a death in Rangoon, Burma, and are in touch with the local authorities.”
A Facebook page for Harris Binotti shows that he had a number of different jobs before taking up a post as an English teacher in Rangoon.
These ranged from being a holiday representative, a ski representative and an assistant duty hotel manager.