Ownership guide for Sri Lanka: how foreigners buy

What you need to know

1. Can a foreigner own land in Sri Lanka?

   Section 2 of the 2014 Land Act restricts land-title transfers to foreigners and to Sri Lankan companies with direct or indirect foreign shareholding of at least 50%, subject to statutory exemptions.

   Where this comes from

   • Parliament of Sri Lanka, Land (Restrictions on Alienation) Act No. 38 of 2014, read 21 September 2026

2. Can a foreigner buy a condo flat in Sri Lanka?

   In Sri Lanka a foreigner may buy a condominium unit on any floor, provided the entire value is paid upfront through an inward foreign remittance before the deed of transfer is executed; the old fourth-floor rule was removed with effect from 1 April 2018 (Land (Restrictions on Alienation) (Amendment) Act No. 21 of 2018, s.2).

   Where this comes from

   • Land (Restrictions on Alienation) (Amendment) Act No. 21 of 2018, read 26 October 2026

3. Which bank account must a non-resident buyer use?

   In Sri Lanka a person resident outside the country must pay for immovable property through an Inward Investment Account, and all income and capital proceeds from it must be credited to the same account (Foreign Exchange Regulations No. 2 of 2021, Gazette Extraordinary 2213/35, Part I A.1(8)(f) and A.4(1)).

   Where this comes from

   • Foreign Exchange Regulations No. 2 of 2021, Gazette Extraordinary 2213/35 (3 Feb 2021), read 26 October 2026

4. Can a Sri Lankan bank loan pay for the condo?

   In Sri Lanka a foreigner's condominium purchase must be paid in full upfront by inward foreign remittance before the deed, so a Sri Lankan bank loan cannot fund it (Land (Restrictions on Alienation) (Amendment) Act No. 21 of 2018, s.2).

   Where this comes from

   • Land (Restrictions on Alienation) (Amendment) Act No. 21 of 2018, read 26 October 2026

5. Can a foreigner buy in Colombo Port City?

   Section 38 of the Colombo Port City Economic Commission Act No. 11 of 2021 lets the Commission lease or transfer on freehold basis condominium parcels in Port City jointly with the investor, developer or Project Company, to any person, paid in a designated foreign currency other than rupees, subject to that Act, the Land (Restrictions on Alienation) Act No. 38 of 2014 and other written laws.

   Where this comes from

   • Colombo Port City Economic Commission Act No. 11 of 2021, read 4 November 2026

6. Is there still a tax on leasing land to a foreigner?

   In Sri Lanka the Land Lease Tax of 15% of the total rent of a lease to a foreigner (Land (Restrictions on Alienation) Act No. 38 of 2014, s.6) does not apply to leases signed on or after 1 January 2016 (s.5A, added by Act No. 3 of 2017 and dated back to 1 January 2016 by Act No. 21 of 2018).

   Where this comes from

   • Land (Restrictions on Alienation) Act No. 38 of 2014, read 26 October 2026

7. What stamp duty is paid on a deed, and by whom?

   In Sri Lanka the provincial stamp duty of 3% on the first Rs 100,000 and 4% on the rest is charged on the deed of transfer, which the buyer normally pays by agreement; the seller pays none by law (Department of Revenue, Western Province, Stamp Duty).

   Where this comes from

   • Department of Revenue, Western Province, Stamp Duty (no date on page; https certificate fails, read over http), read 26 October 2026

8. Does the notary check the land records before the deed?

   A Sri Lankan notary must search the Land Registry registers before drawing a deed affecting land, unless the parties authorise the notary in writing to dispense with the search (Notaries Ordinance s.31 rule 17).

   Where this comes from

   • Notaries Ordinance (Cap. 110), Registrar General's Department, read 4 November 2026

9. Who must be present when a land deed is signed?

   Since the Prevention of Frauds (Amendment) Act No. 4 of 2024, a deed affecting land is signed by every executant and the witnesses before a notary, all present at the same time; on a transfer deed both transferor and transferee sign and affix thumb impressions, and a transferee unable to be present must authorise another person in writing to sign.

   Where this comes from

   • Prevention of Frauds (Amendment) Act No. 4 of 2024, read 4 November 2026

10. How do I sign a power of attorney abroad?

    Since the Powers of Attorney (Amendment) Act No. 3 of 2024 (certified 23 January 2024), a power of attorney executed outside Sri Lanka is executed before an Ambassador, High Commissioner, diplomatic or consular officer or a person authorised to attest it under local law; the words requiring two witnesses were removed.

    Where this comes from

    • Powers of Attorney (Amendment) Act No. 3 of 2024, read 10 November 2026