Guide · Buying in Sri Lanka
The real costs of buying, beyond the price
The purchase price is the largest cost, not the only one. Here is the full list to build into your budget from the start.
The purchase price is the largest cost of buying, but it is not the only one — and building the rest into your budget from the start is what separates a comfortable purchase from a stretched one.
None of these costs is hidden. They are just easy to leave out of an early, hopeful sum, and easy to be surprised by at completion. Here is the full list.
Stamp duty
Stamp duty is a government charge on the transfer, payable under the Stamp Duty Act and administered by the Inland Revenue Department. The rate and thresholds are set by the government and have changed over the years, so check the current figure with the IRD or your lawyer rather than trusting a number you read online. It is a real line, not a rounding error, and your lawyer handles the mechanics.
Legal, notary and registration
An independent lawyer checking your title, the notary executing the deed, and registering the deed at the Land Registry all cost money. Fees vary, so ask for a clear quote up front — but whatever the figure, this is money well spent. The cost of skipping the legal check is far higher than the cost of paying for it.
The survey
For land especially, a licensed surveyor confirming the extent and boundaries is cheap relative to the purchase and catches expensive discrepancies. Treat it as insurance rather than an optional extra.
Borrowing costs, if you borrow
A loan brings its own charges — arrangement fees, the valuation the bank requires, sometimes insurance — on top of the deposit. Ask your bank for the full list early so the true cost of borrowing is in your budget, not a surprise later.
Who pays what, and a buffer
Some costs fall by convention on the buyer and some on the seller, but the split can be negotiated and should be clear in writing before you proceed; your lawyer will tell you what is customary. And leave a margin beyond all the known costs — for the small surprises every purchase produces, and for the first repairs once you own it. A budget with no room breaks at the first unexpected bill.
List every cost before you fix the price you can afford, and the number you buy at is the number you can actually live with.
Sources
- Stamp duty on a transfer is payable under the Stamp Duty Act; rates are set by government and change.Stamp Duty Act; Inland Revenue Department, as at check current
Questions people ask
What does buying cost beyond the price?
Beyond the purchase price, plan for stamp duty, legal and notary fees, registration, a survey, and any bank costs if you borrow. Building these in from the start is how you avoid an unwelcome surprise at completion.
What is the stamp duty rate?
Stamp duty on a property transfer is set by the government under the Stamp Duty Act and administered by the Inland Revenue Department, and the rate has changed over the years — so check the current figure with the IRD or your lawyer rather than trusting a number you read online. Treat it as a real line in your budget.
How much are legal fees?
Legal and notary fees vary with the transaction and the professional, so ask for a clear quote up front. Whatever the figure, an independent lawyer checking your title is money well spent — the cost of skipping it is far higher.
What extra costs come with a mortgage?
A loan brings its own charges — arrangement fees, a valuation the bank requires, and sometimes insurance — on top of the deposit. Ask your bank for the full list early, so the true cost of borrowing is in your budget from the start.
Is a survey worth the cost?
For land especially, yes — a survey is cheap relative to the purchase and it confirms you are buying the extent and boundaries the deed describes. It is insurance against one of the more expensive mistakes a buyer can make.
Are there hidden costs I might miss?
The commonly missed ones are registration, the survey, and moving or immediate repair costs — none hidden exactly, just easy to leave out of an early sum. List every cost before you fix your budget so the price you can afford is the price after everything.
Who pays which costs, buyer or seller?
Some costs fall by convention on the buyer and some on the seller, but the split can be negotiated and should be clear in writing before you proceed. Your lawyer will tell you what is customary and what is agreed for your transaction.
Should I keep a buffer beyond the costs?
Yes — leave a margin beyond the known costs for the small surprises every purchase produces, and for the first repairs or changes once you own it. A budget with no room is a budget that breaks at the first unexpected bill.