Your Questions About
Buying Property in Sri Lanka

Yes. Under the Apartment Ownership Law (No. 11 of 1973, as amended), foreign nationals can purchase and own condominium (apartment) units in Sri Lanka on a freehold basis. This means full, permanent ownership — not a lease. However, foreigners cannot own freehold land directly. Land may only be acquired on a long-term lease of up to 99 years.

Foreigners can own condominium apartments registered under the Apartment Ownership Law. These are units within a building that has been subdivided and registered as a condominium. Standalone houses, villas, and bare land cannot be owned freehold by foreign nationals — they must be acquired on a leasehold basis or through a locally incorporated company.

There is no legal limit on the number of condominium units a foreign national can own in Sri Lanka. Each purchase must independently satisfy the inward remittance requirements.

The Apartment Ownership Law No. 11 of 1973, as amended by Act No. 15 of 2003, permits foreign nationals to purchase condominium units. The 2003 amendment specifically removed certain restrictions that previously applied to foreign buyers, including restrictions on ground-floor units.

No. The 2003 amendment to the Apartment Ownership Law removed the earlier restriction that prevented foreigners from buying ground-floor units. Foreign buyers may now purchase units on any floor of a registered condominium building.

The full purchase price must be remitted from abroad through a licensed commercial bank in Sri Lanka. The buyer must use an inward remittance. The bank will issue proof of remittance, which is required at the time of deed transfer. Funds already held in Sri Lanka in local currency generally do not qualify.

The main costs include: stamp duty on the deed of transfer (rates are set by the government and may change — consult your attorney for current rates), legal fees for your attorney and the notary, title search and survey fees, and registration fees at the Land Registry. There is no Value Added Tax (VAT) on the sale of condominium units between private parties.

In practice, Sri Lankan banks rarely provide mortgage financing to non-resident foreign nationals. Most foreign buyers fund their purchase entirely through inward remittance. Some developers offer instalment payment plans during construction, but the full balance is typically required before deed transfer.

The typical process is: (1) Identify a property and negotiate terms. (2) Sign a Sale and Purchase Agreement and pay a deposit (usually 10%). (3) Your attorney conducts due diligence — title search, encumbrance checks, verification of condominium registration. (4) Remit the balance of the purchase price through a Sri Lankan bank. (5) Execute the deed of transfer before a Notary Public. (6) Register the deed at the Land Registry.

From signing the agreement to deed transfer, the process typically takes 6 to 12 weeks. The timeline depends on the complexity of the title search, availability of documents from the seller, and the time needed to remit funds. Purchases from developers may follow a different timeline linked to construction completion.

You will typically need: a valid passport (the primary identity document for the deed), proof of inward remittance from your bank, a Tax Identification Number (TIN) from the Inland Revenue Department of Sri Lanka, and a completed Sale and Purchase Agreement. Your attorney will advise on any additional documents required.

Yes. As a condominium owner, you have the right to rent out your unit. Rental income earned in Sri Lanka is subject to Sri Lankan income tax. Many foreign owners engage a local property management company to handle tenant relations, maintenance, and rental collection.

You can sell your condominium at any time. The sale follows the same deed transfer process. If you sell to another foreign buyer, they must also satisfy the inward remittance requirement. The sale proceeds can be repatriated abroad provided the original purchase was funded through proper inward remittance.

Yes. If the original purchase was funded entirely through inward remittance (and you have the bank's proof of remittance), you can repatriate the sale proceeds, including any capital gain, through your bank in Sri Lanka. The bank will require the original remittance certificates and the executed deed of sale.