Can a foreign national buy property in Sri Lanka?

A foreign national cannot freely buy land outright in Sri Lanka — foreign ownership of land is restricted by statute, and because the rules have changed more than once, this is an area to take proper legal advice on before you commit to anything.

That is the short, honest answer. The longer version is worth reading, because the picture is more nuanced than “yes” or “no”, and because the detail is exactly the kind that moves with each amendment and budget.

What the law does

The framework sits in the Land (Restrictions on Alienation) Act No. 38 of 2014, which has been amended since. In broad terms it restricts the transfer of freehold land to foreign nationals, while historically leaving other routes — notably long leases — open. The specifics, including any tax on leases and the treatment of particular property types, have moved over time. This page deliberately does not quote a current rate or a current rule, because stating one that has since changed would be worse than saying nothing.

Where the routes have differed

Three things have, at various points, been treated differently from ordinary freehold land:

• Leases. Where freehold has been restricted, long leases have been the usual route open to foreign buyers — subject to terms and, at times, a lease tax that has itself changed.
• Apartments and condominiums. These have historically been treated separately from land, sometimes with a rule tied to the floor level of the unit.
• Buying through a local company. Discussed as a route around the restriction, but one that carries its own legal and tax consequences and has been tightened at times.

Every one of those is a place where the current position matters more than the historical one, and where the wrong assumption is expensive.

What to actually do

Take advice from a qualified Sri Lankan lawyer, and confirm the current rules with the relevant government authority, before you commit to anything or pay any deposit. An estate agent — Cornerstone included — can explain how the market generally works, show you what is available, and introduce you to the right professionals. But whether and how you, specifically, can buy turns on current law and on your own circumstances. That is a lawyer’s work, and we will point you to one rather than guess on your behalf.