Investment property: Sri Lanka

Updated 6 October 2026

Foreigners in Sri Lanka cannot buy land freehold, but they can buy condominium flats.

This is the main route for a foreign buyer: flats in Colombo and on the coast, often in new complexes with a management company. Buying a flat can also give a long-term visa, so the market appeals to people who want to live on the island part of the year.

What a foreigner can do

Previously foreigners could buy flats only from the fourth floor up; this restriction has been removed.

Where people buy

Flats are most often bought in Colombo, in central seafront districts and near the business centre, where there are more new complexes and rental demand. Villas on the south coast, around Galle and nearby resorts, and in the hill country are arranged for foreigners through long-term land leases. Resort property depends more on the tourist season.

How buying a flat works

1. Choice of flat and developer check: permits, condominium registration, completion dates.
2. Opening an inward investment account at a Sri Lankan bank.
3. Transferring the full price from abroad through this account: without it the flat cannot be registered to a foreigner.
4. Sale deed before a notary and registration in the land registry.
5. Application for a long-term visa if the price meets the threshold.

Bringing the money through the inward investment account is also what allows it to be taken back out legally after a sale.

Taxes and costs

• Stamp duty on purchase is about 4% of the value; the exact rate depends on the province.
• Notary services and registration of the deal.
• Monthly condominium management fees.
• Rental income is taxed in Sri Lanka.

Letting to tourists

Short-term letting to tourists is allowed after registering the property with Sri Lanka's tourism authority; otherwise fines apply. In new complexes letting is often run by the management company. The income is taxed in Sri Lanka, and it is easier to take it abroad through a foreign currency account.

If you want land or a villa

A villa or plot is arranged for a foreigner through a long-term land lease. Buying through nominee local owners or a company with a nominal local share is risky: the deal can be challenged and the foreigner loses protection. We set up a lawful lease with registration and rights to the buildings.

Risks to know about

• Land documents on the island can be tangled, so we check the seller's and developer's title through a local lawyer.
• New complexes are sometimes completed late, so we fix dates and penalties in the contract.
• The rupee fluctuates noticeably, and deposit insurance covers only up to Rs 1,100,000, about $3,400, so we keep the purchase money in foreign currency until the deal.

What we do

Murblz specialists select a flat, check the developer and documents, open the inward investment account, support the money transfer, notary deed and registration, and handle the long-term visa application. If you want a villa, we set up a lawful long-term land lease. We fix the estimate in writing.

What we do

• Property shortlist for your investment goal
• Legal due diligence on the property
• End-to-end transaction support
• Ownership structuring (company, trust)
• Property management and letting

See also

Business account · Personal account · Country taxes · All country programs

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