Expat buying rules in Sri Lanka

With the recent changes in the law welcoming expat Sri Lankans to purchase property in the country, LankaPropertyWeb interviewed Attorney at Law Saminda Jayasekara regarding the feasibility of this option and the barriers to overcome in the process.

As a local, there are no restrictions on purchasing property in the country. Whether it is owning a land, apartment or investing in a commercial property, you have the liberty to select among a range of options available in the market.

However, as a foreigner, there are certain restrictions. While the option of purchasing a residential or commercial condominium property is available, with lands they can only be leased out for a period of 99 years.

But what about an expat?

“The main consideration when purchasing property is whether you are a citizen of Sri Lanka or not. If you are a citizen, then you can purchase properties as you wish, otherwise there are some restrictions,” said Attorney at Law S. Jayasekara.

The reason for this is that if the expat in concern has given up citizenship in Sri Lanka completely, then he or she is considered as a foreigner or a non-citizen according to the law. Under this situation, the laws that are applicable to the individual also vary.

The Land (Restrictions On Alienation) Act No. 38 of 2014 prohibits the transfer of the title of any land in Sri Lanka to a foreigner, to a company incorporated in Sri Lanka under the Companies Act (foreign shareholding in such company, either direct or indirect, is 50% or above) or to a foreign company.

However, at the same time, there are exceptions as well.

In terms of the Apartment Ownership Law, a previous report published by LankaPropertyWeb defining investing in Sri Lanka highlighted that in the past foreigners had to face floor restrictions with purchasing condominiums. But as of 2018, this law has been revised opening doors for them to buy any apartment on any floor and invest in the country in top developments. However, the only condition is that the foreigner has to pay for the consideration in full before the title transfer and that consideration must come from abroad via an Inward Investment Account.

The Inward Investment Account (IIA) is a special account designated for eligible investors, resident in or outside Sri Lanka to route funds to invest in the permitted investments. It can be opened in LKR or a foreign currency or held jointly by eligible investors.

On the other hand, if a foreigner becomes the owner of a land through a deed of gift or devolves under a last will or without a last will, under the succession law in Sri Lanka the restrictions mentioned previously will also become null and void.

These exceptions are applicable to dual citizens as well, with the logic that they are still Sri Lankans while holding a nationality in another country.

When making a purchase for a property, payments should go through this account. Upon signing the deed of transfer and handing over the possession of the property, you will be able to claim ownership for the development.

“You can open up an IIA in Sri Lanka while you are in your country, and for that you can contact your realtor or the developer. But if you are living outside of the country, you can appoint an agent with a special power of attorney mentioning ‘only for the purchase of a property’,” said Saminda.

The power of attorney is a legal document giving one person, the agent or attorney-in-fact the power to act for another person, the principal. This document has to be registered in the relevant land registry of Sri Lanka and can be used in the process of purchasing any property.

The reason for this is that according to the local laws the purchase of a property in the country should be done in the presence of a licensed notary public and two or more witnesses present at the same time.

As an expat, a Sri Lankan lawyer should be contacted to draft a foreign power of attorney. The documents should then be signed before the Sri Lankan ambassador or a lawyer in that country. Once he couriers the duly signed document, the lawyer in Sri Lanka could file it in the relevant land registry to complete the process.

To formally cancel this appointment the expat or his lawyer in Sri Lanka has to submit the Original Power of Attorney, Affidavit supplied by the expat, copy of the advertisement published in the government gazette in Sinhala, Tamil and English languages to the land registry where the Power of Attorney is registered. Once it’s published in the Gazette, it will amount to a revocation of the authority.

The purchase of property in Sri Lanka as an expat is a great way of investing, especially given the fact that the nation is seeing continuous development in different areas. The stability of the real estate market despite the pandemic is also further evidence to this. Therefore, capitalizing on this opportunity earlier on and investing in property is seen as a prospective income source, even in the future.

Weligama: modern beachfront living

Weligama on Sri Lanka’s southern coast is emerging as the country’s trendiest destination for tourists seeking a glamorous beach getaway and second home buyers looking for a wise investment which can be rented out when they are not enjoying it themselves.

With its influx of boutique hotels, restaurants and spas in recent years, Weligama aspires to become Sri Lanka’s version of Miami’s iconic South Beach.

The local authorities have invested heavily in restoring older buildings and landscaping roadsides to transform the once-sleepy fishing village into a chic coastal retreat.

Tourism has boomed, with visitor numbers doubling since 2010 to over 100,000 in 2020.

Catering largely to young, affluent travelers, Weligama offers a quieter, more exotic alternative to South Beach for those looking to soak up Sri Lanka’s sun, sand and famous surf.

Weligama beach stretches just one kilometre along Sri Lanka’s southern coast and located a 2-hour drive from Colombo airport, it is renowned for its excellent swimming and surfing conditions, making it one of the best spots in the country to learn how to surf.  In addition to water sports, yoga is also very popular in Weligama.

The main beachfront strip is home to trendy boutiques, restaurants and a lively local market and more than 200 hotels have opened here in the past 5 years to accommodate the growing numbers of tourists, locals and weekend visitors from Colombo.

While most lodging options are boutique hotels, larger resorts can also be found, like the beachfront Weligama Bay Marriott Resort and Spa and the luxurious Cape Weligama set on a cliffside overlooking the bay.

Weligama has seen a surge in foreign investment and development: since 2016, beachfront land values have increased 84% as developers build luxury villas, apartments and hotels targeting overseas buyers.

The South Beach Weligama complex, a 106-unit project by famed architects Balmond Studio launching in 2024 will have five-star amenities like a restaurant, bar, pool, gym, and more.

Property prices remain affordable compared to other beach markets, with South Beach units starting around $175,378.

Beyond relaxing on the sand, visitors can experience Weligama’s lively Full Moon parties, which draw 100,000 revelers monthly.

Sri Lanka offers stunning natural scenery, including the dramatic 4,000-foot cliff at World’s End in Horton Plains National Park – this scenic overlook provides an unforgettable experience and spectacular photo opportunities.

Hiring a knowledgeable local guide or driver allows you to fully explore this beautiful region whilst helicopter tours from Weligama provide a bird’s-eye view for adventurous travelers.

Although not commonly associated with Sri Lanka, blue whale watching occurs off Mirissa from December to March and off Trincomalee from March to July.

Sperm whales and spinner dolphins can also be regularly spotted in Sri Lankan waters.

And Sri Lanka’s endangered elephants are also a top wildlife attraction: ethical elephant safaris allow visitors to responsibly view these majestic creatures in locations like Udawalawe National Park, home to around 600 elephants.

Finally, the country’s renowned tea plantations, like the Handunugoda estate, draw many visitors to this low-country plantation which produces exclusive “virgin white tea” and provides a scenic overview of Sri Lanka’s iconic tea culture.

For apartment enquiries, contact Branson Atterbury, Marketing Director on branson.atterbury@kristall-spaces.com or +447715636568 via WhatsApp.

Cathay Pacific flights & Sri Lanka tourist arrivals up 100%

After suspending passenger flights for several years, Cathay Pacific, Hong Kong’s largest carrier with its headquarters and main hub at Hong Kong International Airport, has resumed flights to Sri Lanka.

Operating an Airbus A330-300 aircraft, the airline will fly to Sri Lanka three times a week on Tuesdays, Thursdays, and Saturdays according to its new schedule. Cathay Pacific has served the Sri Lankan market for over 30 years, making it one of the most important airlines contributing to Sri Lanka’s tourism sector.

The airline had temporarily halted operations in March 2020 due to the global pandemic but operated Boeing 747 freighters during that time, transporting vital supplies like COVID-19 vaccines.

The newly resumed flight carried 253 passengers who were impressed by the warm, colorful welcome and cultural dancing performance organized by Sri Lanka Tourism at the airport.

This resumption marks an important moment, as Cathay Pacific, which currently flies to around 80 destinations worldwide, will be an asset to Sri Lanka’s tourism sector by bringing more visitors and promoting the country as a top travel destination.

The operation will especially help attract passengers from Far East countries like China and Hong Kong.

Article here https://www.newswire.lk/2024/02/02/cathay-pacific-resumes-flights-to-sri-lanka-after-several-years/

At the same time, analysis of tourist arrvials to Sri Lanka were up 100% in January 2024.

Sri Lanka is confident of reaching a 2.3 million target in 2024.

Sri Lanka received 302,884 tourists from India in 2023, which is Sri Lanka’s largest market.

Source to be verified.

 

The attractions of Kandy

The gateway to the misty hills, famous blue train carriages, and tea plantations of Sri Lanka’s emerald-clad heartland is Kandy – the City of Kings.

Although many travelers come for the island’s white-sand beaches and epic surf, Kandy lies at the center of the country’s spiritual, charming hill country.

As the capital of culture and Sri Lanka’s second city, Kandy was the last stronghold of independent Ceylon, using its remote location to withstand colonization by the Portuguese and Dutch through the 1500s and 1600s.

This allowed Kandy to maintain the unique customs, culture, and arts that had been suppressed in other parts of Sri Lanka, until the city finally fell to British rule in 1815.

Kandy preserves its rich cultural heritage through numerous historic sites that make it a fascinating destination.

The city’s top attraction is the Temple of the Tooth, the most sacred Buddhist shrine housing a relic of Buddha.

However, Kandy offers much beyond this renowned temple.  Its bustling streets, ancient temples, colonial buildings, aristocratic gardens, and the scenic Kandy Lake together create delightful chaos amidst Sri Lanka’s lush hills.  With its array of sights, Kandy deserves several days to experience its history, culture, and natural beauty.

The Temple of the Sacred Tooth in Kandy is Sri Lanka’s most important Buddhist site, drawing locals and visitors alike to venerate a single decayed molar.  This elaborate temple was constructed to house and honor what’s believed to be Buddha’s actual tooth, brought to the island in the 4th century.  For centuries, Sri Lankans have journeyed to the golden-roofed shrine to pay respects to the sacred relic, considered so holy that most make the pilgrimage at least once in their lives.

Royal Botanic Gardens of Peradeniya: these gardens were once reserved exclusively for Kandyan royalty until the British transformed them into the Royal Botanic Gardens in 1821.  Today, the gardens are open to the public and spread across 60 hectares, home to over 10,000 trees showcasing Sri Lanka’s native flora as well as species from around the tropics.  We recommend visiting the impressive avenue of royal palms, a tree-lined pathway in the gardens’ interior.  Other highlights are the famous Orchid Garden and otherworldly Cannonball tree, planted during King George and Queen Mary’s 1901 visit.  When finished exploring, relax on the expansive lawns and escape the heat.

Kandy Cultural Dance Show: the artistic performance dazzled with spectacular costumes, dances, acrobatics, and fire walking, captivating us from start to finish.   We experienced various traditional Sri Lankan dances like Magul Bera, Puja Natuma, and Devol Natuma, unique regional styles passed down through generations that offer insights into Sri Lanka’s rich cultural history.  The dances vividly depicted animals with graceful elephant walks, colourful peacock dances and mystical cobra movements.   The show begins daily at 5:30 pm by Kandy Lake at the Kandy Lake Club.

3 Temple Loop: the Temple of the Sacred Tooth relic may be the most renowned of Kandy’s temples, but it is just one of many temples worth exploring in this historic city.  Escape the hustle and bustle of downtown by tuk-tuk and head to the lush countryside of Gampola, home to numerous well-preserved Kandyan-era Buddhist temples and shrines overlooking peaceful fields and lanes. Three of these rural temples – Gadaladeniya Viharaya, Embekke, and Lankathilaka – comprise the scenic and culturally rich ‘Three Temple Loop’, offering an enlightening glimpse into Sri Lanka’s deep Buddhist heritage and skilled artisanship through the centuries.

The Bahirawakanda Buddha statue, a 27-metre-tall white sculpture built in 1972, sits atop Bahirawa Kanda hill overlooking the city of Kandy.  From its perch, the beautiful statue seems to watch over the daily life of Kandyans below.  Bahirawakanda offers incredible panoramic views of the green and blue hues of Kandy, which are especially stunning at sunset when the city is bathed in a golden glow as the sun sinks behind the distant mountains. The statue is one of the tallest in Sri Lanka and is visible from nearly anywhere in Kandy.  As with all temple sites, be sure to remove your shoes and hat before entering the temple complex at Bahirawakanda.

Kandy to Ella by train: whether you sit in a crowded train doorway with feet dangling over the tracks or lean halfway out a window for the best views, winding through misty forests, vibrant tea fields, rushing waterfalls, and colourful towns will be one of your most memorable journeys.  Beyond the epic scenery, the convivial spirit makes this train ride special.  Expect warm smiles, groups singing or dancing, chai vendors weaving through, and every window and door crammed with tourists and locals alike, all awestruck by the views.  The train may be crowded, so respectfully push your way on (it’s accepted). Opt for third class – it’s cheapest and most social, filled with friendly locals happy to enhance your experience.  Tip: The most scenic stretch from Nanu Oya to Ella passes through thick Horton Plains forest, so get a window seat or stand in the doorways to fully soak in the sublime passing views.

Kandy Lake: at the heart of Kandy lies the serene Kandy Lake, surrounded by bustling roads yet providing a peaceful backdrop to the city’s top attractions.  This artificial lake was built in 1807 by Sri Wickrama Rajasinha, the final ruler of the Kandy kingdom, who sought to construct a waterway across the valley.  However, his brutal suppression of local protests marred its creation.  After completion, Rajasinha used the lake’s island for his personal harem before the British claimed it as an ammunition depot in the early 1800s.  Now a wildlife haven, the idyllic lake lets visitors get their bearings in Kandy.

The market streets of Kandy Old Town: the old town of Kandy, nestled between Sri Delada Veediya Road and Colombo Street, features a maze of market stalls selling textiles, incense and everything in between.  Its loud, chaotic streets teem with locals going about their daily business, offering visitors an authentic glimpse of life in Kandy.  Don’t miss top sights like the historic Giragama Walawwa, Kandy’s oldest former royal residence; the stunning Red Mosque of Kandy and the colorful Kataragama Devalaya Hindu temple.

An apartment on the golden beaches of Wadduwa

The scenic coastal town of Wadduwa is sanctified with crystalline shores and sun-kissed sands.

Serene by nature and unique in character, Wadduwa offers visitors an array of wonderful experiences.

One can enjoy visiting the popular Kalutara Temple to see its vibrant murals, joining local fishermen on an early morning excursion to pull in nets, savouring a refreshing glass of deliciously brewed toddy, shopping for the ideal souvenir and much more.

Kalutara Temple

Our conveniently located apartments allow you to explore the wonders of Kalutara Temple, the only shrine in the world that is hollow; Rankoth Viharaya, the temple built on a rock; and the picturesque Wadduwa Temple. These Buddhist cultural shrines surround our accommodations.

Richmond Castle

Richmond Castle, resembling Indian and British colonial architecture, stands in Palatota. Originally built in 1896 as the mansion of a wealthy spice plantation governor, this historic structure is now open to the public.

Brief Gardens

Brief Gardens, a scenic landscape and famed island tourist attraction, once belonged to Bevis Bawa. This hillside garden, graced by expertly crafted sculptures from Bawa and other artists, offers captivating vistas that complement its beauty.

National Zoological Gardens

As the oldest zoo in Asia, Sri Lanka’s National Zoological Gardens is a beloved family destination. Located in Dehiwala, the zoo draws crowds daily with its aviary, aquarium, butterfly garden, reptile house and more.

Pahiyangala

Renowned for serving as the resting place of Pahiyan Bhikkhu, a Chinese Buddhist monk who visited Sri Lanka in the 5th century, Pahiyangala features a unique natural rock cave said to be the only one of its kind in Asia. This prominent historical and natural attraction also includes a temple at the site.

Local fishermen

With a breathtaking shoreline, Wadduwa is dotted with fishing villages. Gain a true understanding of this one-of-a-kind place by observing the mysterious lives of local fishermen hauling in their catch, or absorb that adventurous spirit yourself by sailing on a catamaran into the magnificent sea.

Toddy tappers

A time-honoured cultural tradition, palm toddy tapping is a craft passed down through generations. Observe the impressive skills of a seasoned tapper at work during his daily routine. Learn the nuances of this trade while savouring a delicious toddy offered by the friendly brewer himself.

Your dream home in Galle

Galle’s complex history as a trading port makes it a must-see destination in Sri Lanka.  Founded by the Portuguese in the 16th century, this fortified city on the southwest coast later fell under Dutch rule and saw expansion.

With the British takeover and rivalry between European powers like the French, English, Danish, Spanish, and Portuguese in the 17th century, Galle changed hands frequently.  This diverse past created a fascinating architectural blend of styles and influences, making the city an ideal place to soak in Sri Lanka’s rich cultural legacy.

The UNESCO World Heritage Site of Galle’s Old Town and fort offers delightful exploration on foot.  Strolling along the fort’s thick ramparts provides unobstructed ocean and harbor views, glimpses of the old prison, the Galle Lighthouse on the fort’s southeastern tip, and the 18th-century Dutch Reformed Church.

Galle offers a relaxed atmosphere perfect for strolling and soaking in the sights.  Dozens of charming restaurants, cozy cafes, and shady spots provide places to dine and drink.  Poonie’s Kitchen, tucked in a traditional Dutch-style courtyard house, is a peaceful haven with Western fare made from Sri Lanka’s freshest ingredients.  Fortaleza Restaurant, located in a boutique hotel on Church Cross Street, is another gem.  With a lovely veranda and bar overlooking a central courtyard, the restaurant features original walls over 200 years old. Fortaleza is known for delicious fresh seafood and signature table barbecues.

We also suggest visiting the fort in the late afternoon with a third-generation resident as your guide. Brimming with local history and anecdotes that breathe life into this historic place, they can help you discover what it’s truly like to live within these ancient walls. Your guide can even lead you to a wonderful hidden art-and-crafts shop tucked away in this storied locale.

In this workshop, you will learn about the history and cultural significance of mask making in Sri Lanka before creating your own mask using traditional, sustainable materials like recycled paper, treacle, cinnamon, clay, broken tiles, beeswax, and cow dung.

Beyond Galle’s famous fort, the surrounding countryside offers many enticing activities. Visitors can explore the region’s scenic landscape of rice paddies, villages, spice plantations – especially cinnamon – and low-altitude tea estates. To fully experience the area, travelers can venture off the beaten path by boat or bicycle, gaining an intimate glimpse into rural life.

The historic Galle International Stadium is a must-see destination for cricket fans.  Originally built as a racecourse by British colonials, this picturesque ground overlooking the ocean has hosted many memorable cricket matches since 1998.

The beaches near Galle feature palm-lined shores and turquoise waters perfect for relaxation. We visited Wijaya Beach, where we relaxed with fresh coconuts in the tranquil setting. For visitors interested in surfing, private lessons can be arranged. The coast offers abundant seafood, including prawns, mahi-mahi, seer, tuna, and cuttlefish. Outside the city walls, locals barter for the freshest catch at seaside fish stalls.

Contact us today to find out how you can invest in your dream holiday apartment in Galle.

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