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Sri Lanka: new Investor Visa for property buyers

June 3, 2024 By

This new initiative for buyers outside Sri Lanka interested in buying condominium units (holiday apartments) started on 1 June 2024.

The Investor Visa program ensures a simplified and efficient procedure for non-Sri Lankans looking to invest in the country’s fast-growing real estate market allowing visa applications to be handled entirely online, making it easier for potential investors.

A notable feature of the new process is that foreigners staying in Sri Lanka will no longer have to exit the country to apply for a visa.

This notable improvement is expected to draw in additional investors to support Sri Lanka’s economic progress and flourishing construction and property development industry.

Applicants must provide:

1. Confirmation from a bank regarding the deposit of foreign currency into an IIA account.

2. A statement from the investor specifying the purpose of the investment, whether to purchase a unit or units from a condominium development project in the country.

For investments exceeding USD 100,000, applicants will receive an immediate 5-year visa, which can be renewed.

Investments over USD 200,000 will be eligible for a 10-year renewable visa, both necessitating a maximum of five days for ministerial approval.

By opening its doors wider to international investors, Sri Lanka is not only improving its economic prospects but also laying the foundation for sustainable growth in its property development sector.

In addition to the direct and obvious benefits mentioned earlier, foreign investments in real estate have been proven to generate multiple streams of both short and long-term inflows.

The nature of investing in Real Estate is characterized by long-term commitments and substantial investments, which in turn contribute to the country’s overall development.

Filed Under: Colombo, Expat rules, Galle Property, Kandy real estate, Negombo, Sri Lanka economy, Sri Lanka real estate, Sri Lanka tourism, Tangalle, Wadduwa, Weligama apartments

Galle plans for tourism hub

May 5, 2024 By

The Ministry of Ports, Shipping, and Aviation announced on Thursday its ambitious plans to transform the Port of Galle into a bustling tourist destination.

Minister Nimal Siripala de Silva is spearheading the proposal, which aims to enhance the port’s infrastructure and address environmental and wildlife conservation concerns.

The proposed construction includes the establishment of two backwaters, one measuring 850m and the other 150m.

Additionally, the harbor basin will be dredged to a depth of 12.05m, and a new passenger terminal will be built.

During the meeting, it was recommended that the Wildlife Department submit an Environmental Impact Assessment Report within a week to address environmental issues and support the development project at the Port of Galle.

Furthermore, Minister Pavithra Wanniarachchi instructed the Sri Lanka Ports Authority (SLPA) officials to solicit Requests of Interest from local and foreign investors interested in participating in the development initiative based on the aforementioned report.

The Ministry has stressed that SLPA will allocate a total of USD 200 million for the development project at the Port of Galle.

Filed Under: Galle Property, Sri Lanka tourism

Half a million tourist arrivals in 3 months

April 16, 2024 By

Sri Lanka passed 500,000 tourist arrivals in just the third month of 2024, with over 100,000 tourists coming in March alone confirming hat the industry is making excellent headway towards strong growth.

Since the COVID pandemic began, this is the first time the island nation has reached over half a million visitors in just two and a half months – last year, Sri Lanka reached this milestone in the second week of May.

The provisional data released by the Sri Lanka Tourism Development Authority showed that for the first 14 days of March, Sri Lanka welcomed 91,205 international visitors.

Sri Lanka Tourist Arrivals 6 March 2024

The cumulative number of tourist arrivals from January 1st to March 14th reached 517,808.

If the current level of tourist arrivals continues, Sri Lanka could reach 200,000 arrivals for the third month in a row – a first for the country since the start of the Covid pandemic.

The Russian Federation is the biggest contributor to tourism in March, with 15% of all tourist arrivals (13.699) and ranking second India accounted for around 15% too with 13,492 visitors.

Germany, the United Kingdom, France, and China are also significant source markets.

During the initial two months of the year, the tourism industry generated a total revenue of US $ 687.5 million and this represents a 118.2% increase year on year.

Filed Under: Negombo, Sri Lanka economy, Sri Lanka real estate, Tangalle, Weligama apartments

Tangalle’s attractions

March 19, 2024 By

Nestled on Sri Lanka’s southern coast, Tangalle is the perfect spot for relaxation … with beautiful seascapes, mangroves and coves, it offers an authentic island experience with ample opportunities to explore including these top attractions:

Scuba diving and snorkeling in Tangalle Bay allows you to discover sea creatures like lionfish, angel fish, octopus and lobster and you can even explore underwater caves, shipwrecks and coral tunnels.

Turtles: Rekawa Beach is a nesting ground for turtles like green, loggerhead and hawksbill and you join the Rekawa Turtle Watch conservation project from April to July to see turtles hatching. Reminder: patience is key for sightings.

Surfing enthusiasts flock to Hiriketiya Beach just 15 minutes from Tangalle: the horseshoe-shaped bay has surf gear shops for renting boards by the hour to catch waves or why not book a lesson.

Or rent a bike, scooter or tuk tuk to explore independently.  Tuk tuks can sometimes be expensive so make sure you compare fares whilst renting your own transport allows flexibility and keeps costs down.

Swim at Goyambokka Beach, whose reef shelters its serene bays.  It also boasts expansive white sands for lounging under the sun.

Visit Mulkirigala Raja Maha Vihara, an ancient Buddhist temple atop a 205-metre rock.  Its seven caves contain large Buddha statues and intricate wall paintings.

Marvel at the Hummanaya Blowhole which is the world’s second largest and during monsoon season the water can shoot up to 82 feet high.

Birdwatching at Bundala National Park to spot flamingos and other migratory species. It’s just a 40-minute drive from Tangalle.

Filed Under: Tangalle

Tourism: another record month in February

March 4, 2024 By

Sri Lanka’s tourism industry saw record growth in February 2024, with 218,350 tourist arrivals that month and this marks the third straight month surpassing 200,000 visitors, according to the the Minister of Tourism, Harin Fernando.

This February figure signifies over a 100% increase from February 2023 when only 107,639 tourists arrived.

It is also the highest monthly total since January 2020 pre-pandemic when 228,434 visitors came.

“We’ve had an amazing start to 2024, with the second consecutive month above 200,000 arrivals – the highest ever totals since I took office,” Harin Fernando said.

In just the first two months of 2024, Sri Lanka welcomed 426,603 tourists, already 28% of 2023’s full-year total.

Fernando also estimated tourism income has surpassed $710 million so far in 2024.

Source article https://www.newswire.lk/2024/03/02/sri-lanka-tourism-february-tourist-arrival-numbers-released/

Filed Under: Sri Lanka economy, Sri Lanka tourism

Sri Lanka economy growing by 1.6% and inflation falling

March 2, 2024 By

The Sri Lankan economy expanded 1.6 percent in the third quarter of 2023 compared to a year earlier, marking the first growth in a year and a half.

Inflation has moderated notably, and other economic indicators for manufacturing and services point to a broadening recovery.

Sri Lanka’s key inflation rate fell to 5.9% in February from 6.4% in January, the statistics department said on Thursday.

Economic growth is forecasted to accelerate over the coming year.

Source article https://www.eurasiareview.com/02032024-sri-lankas-economic-reform-program-is-starting-to-work-keep-at-it-for-a-full-recovery-oped/

Filed Under: Sri Lanka economy

Record Indian tourist arrivals

February 17, 2024 By

Record Indian Tourist Arrivals: What it Means for Sri Lankan Real Estate

Sri Lanka is currently witnessing a historic surge in tourism, largely driven by a massive influx of visitors from India. With a 106% year-on-year increase in arrivals—averaging nearly 9,000 visitors daily—the island’s hospitality sector is hitting unprecedented milestones.

Why This Matters for Property Investors

For real estate investors, these numbers are more than just statistics; they represent a fundamental shift in market demand. A record-breaking tourism year directly correlates with:

  • Higher Occupancy Rates: Increased demand for luxury short-term rentals and boutique villas.

  • Infrastructure Growth: To accommodate the 50 million Indians traveling overseas annually, the Sri Lankan government is fast-tracking new hotels and MICE (Meetings, Incentives, Conferences, and Exhibitions) venues.

  • Capital Appreciation: As air connectivity expands—with SriLankan Airlines now operating 95 weekly flights to India—locations like Colombo, Galle, and Tangalle are becoming even more accessible and valuable.

The Strategic Push for Growth

Sri Lanka Tourism recently launched a global campaign in Mumbai to tap into the Indian market, which already accounts for over 20% of total visitors. High-profile delegates, including Tourism Minister Harin Fernando, have highlighted several key initiatives designed to sustain this momentum:

  • The Ramayana Trail: A cultural and mythological tourism project designed to strengthen bilateral ties and attract heritage-focused travelers.

  • MICE Tourism Expansion: Thisum Jayasuriya (Chairman of the Sri Lanka Convention Bureau) has announced plans for new venues and hotels specifically aimed at the lucrative corporate events sector.

  • Education & Connectivity: From scholarships for Indian students to increased flight frequencies from nine major Indian cities, the bridge between the two nations is stronger than ever.

Investment Outlook

At Kristall Spaces, we see this surge as a “green light” for the buy-to-let market. As the country moves toward its goal of attracting 10% of India’s outbound travelers, the need for high-quality, managed apartments and coastal villas will continue to outpace supply.

Whether you are looking at a beachfront development in Galle (Talpe Heights) or a luxury apartment in Kandy, the current tourism trajectory suggests that now is a strategic time to secure a foothold in the Sri Lankan property market.

Filed Under: Colombo, Galle Property, Kandy real estate, Sri Lanka real estate, Sri Lanka tourism

Plan to attract 2.5 million tourists in 2024

February 17, 2024 By

While on a tour of tourist destinations along Sri Lanka’s south coast, President Ranil Wickremesinghe engaged with local business owners, foreign visitors, and domestic tourists to gather feedback on the government’s initiatives to revitalize the tourism industry and attract high-spending travelers.

Through these conversations in Galle, Unawatuna, Tangalle, and other locations, the President assessed firsthand how infrastructure upgrades and innovative promotion campaigns have impacted tourism operations.

He also solicited ideas from stakeholders on further enhancing facilities and marketing strategies to build on the sector’s post-pandemic recovery momentum.

By actively listening to perspectives from across the tourism landscape, President Wickremesinghe aimed to shape policies that will help Sri Lanka surpass its pre-Covid visitor numbers and realize the goal of attracting 2.5 million tourists annually by 2024.

Source article  https://colombogazette.com/2024/02/17/president-holds-talks-with-tourists-in-galle-and-unawatuna/

Filed Under: Galle Property, Sri Lanka real estate, Sri Lanka tourism

Sri Lanka property is on the move

February 17, 2024 By

Sri Lanka, Asia’s oldest democracy, is undertaking major infrastructure projects that are improving connectivity and reshaping the skylines of its major cities.

Once a key port on the ancient Silk Road owing to its strategic location off India’s coast, the teardrop island nation is focused on reestablishing itself as a vital player on the modern maritime route connecting Asia, Africa, Europe and beyond.

Tourism is rapidly increasing as a result.

The former British colony, known as Ceylon until it became a republic and changed its name to Sri Lanka in 1972, gained independence in 1948.

Today, the per capita incomes of the island nation’s 21 million residents rank among the highest in South Asia.

Steeped in ancient Buddhist and Hindu culture, Sri Lanka packs diverse attractions into a small space, including eight UNESCO World Heritage Sites, more than a dozen national parks, virgin rainforests, and lush tea gardens.

Trekkers are rewarded with exotic birds, rare orchids, and temple ruins while navigating sacred mountains.

Underwater divers can explore coral gardens and old shipwrecks, while beaches offer experiences for sunbathers, snorkelers and surfers.

High-end real estate in Colombo and surrounding areas is fueled by growing international demand, with additional luxury projects in the pipeline.

Galle, a two-hour drive southwest of Colombo, is a popular coastal vacation home spot for foreign investors.

Originally built by the Portuguese and later fortified by the Dutch in the late 16th century, Galle still has some surviving Dutch-era buildings.

Sri Lankan architecture reflects Buddhist, Indian, East Asian and Western influences.

Architect Geoffrey Bawa spearheaded the Tropical Modernism movement starting in the 1960s, adapting the minimalist International Style to the tropical climate.

His work included private residences as well as universities, religious buildings and the Sri Lankan Parliament.

Filed Under: Colombo, Galle Property, Sri Lanka real estate

Expat buying rules in Sri Lanka

February 5, 2024 By

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.

Filed Under: Expat rules
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