Property buying in Sri Lanka.

Property buying in Sri Lanka is a simple procedure as in the USA. All you have to do is to have enough money to buy that property and to be a Sri Lankan. Foreigners need to have that money in U.S dollars or in any currency that to be brought in Sri Lanka through the normal banking procedure. If you are foreigner and want to bring money with you in cash to buy land or property in Colombo or in other areas in Sri Lanka, then you must report about that amount of money on your arrival to the SL custom officer and must endorse it in your passport. Other wise you may have problem after purchasing the property as the question will arise how the money came to you to buys that property.

As for the Sri Lanka land regulation and rules a foreigner buying private land in Sri Lanka must pay 100% of tax to the state of the purchased value of the land or house.

Each land transaction must pay tax and it will be calculated as 3% for the first Rs 100,000/- and 4% for each additional Rs 100,000/-. Thus if you are buying a property for Rs 1500,000/- then you will pay a sum of Rs 59,000/- as tax and further 1% to the lawyer means Rs. 15,000/-. So the total will be Rs.15,74,000/- This calculation applies to Sri Lankan citizen only.

The lawyer will assist you with the deed verification and registering the land on your name.

Sri Lanka land prices are very high in the Colombo metropolitan area and in the other main cities depending on the location of the land. Normally the lands near to schools, colleges, shopping complexes, hospitals and other important places in the area are will be priced higher.
Also Sri Lanka is in the process of rapid development plan and many roads and lanes are going to be made wide. So it is your duty to check the lands location as whether it may come in the the UDA development plan. Other wise you may lose part of your land or whole for nothing under the development program in the coming years.