Sri Lanka allows foreigners to buy land

The government is bringing in sweeping changes to recent restrictions imposed on foreign ownership of businesses and property to promote foreign investments, government officials said.

The Finance Ministry will issue a circular indicating these changes following the Treasury Secretary Dr. P.B. Jayasundera’s endorsement of these decisions, reversing a budget decision.

In a 180-degree turn from the recent decision and subsequent action to prohibit foreign ownership of business and property in Sri Lanka under the 2013 budget proposal, the government will revert to the earlier practice of allowing foreigners to take up full ownership of businesses and property, if their investments in the project is over US $10 million, they revealed.

Earlier – before the budget proposal – a foreigner or a foreign company was entitled to buy land without paying 100 per cent land tax if their investment for the whole project was over US$10 million

Sri Lanka’s new regulation on foreign ownership of property is similar to the previous practice which was in existence before the year 2004.

However it will have additional, new provisions where foreigners can lease land but would be subject to a land tax of 5 to 10 per cent, Minister for Investment Promotion Lakshman Yapa Abeywardana told the Business TimesThis is a new provision since there was no tax on lands leased by foreigners, earlier.

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(Source: Sunday Times)

Sri Lanka to set tax of around 10-pct for foreigners leasing land

 Sri Lanka's new restrictions on foreign ownership of property will have provisions that will allow non-nationals investing in the country to lease land with a tax of 5 to 15 percent, senior government officials said.

Investment promotion minister Lakshman Yapa Abeywardena said it was the policy of the administration to stop the sale of land outright to foreigners but foreign investors will be allowed to lease land for up to 99 years, after paying a tax.

"We will allow foreigners to lease land and we have requested that the tax be kept below 10 percent," minister Abeywardena said.

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(Source: LBO)

CID exposes huge land rackets

Racketeers including notaries public and land sale dealers have been taken into custory for large-scale illegal land grabbing in Colombo and the suburbs, Criminal Investigations Department (CID) detectives said. At least 30 such groups have been arrested so far after the CID probed some 4,300 complaints made following a Defence Ministry announcements calling on victims to inform the CID, the detectives said.

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(Source: Sunday Times)

Sri Lanka's House price index for 2013 Q1 shows prices are up from a year ago

LankaPropertyWeb.com's 2013 Q1 house price index is now out now and compared to 2012 Q1 we've seen an increase in advertised prices for house sales, land sales and apartment sales whereas commercial property prices have gone down.

Another interesting facts is that 65% of the advertisers reduced their asking prices for house sales by an average of 12.6% during the last quarter. 

For the full listing visit http://www.lankapropertyweb.com/house_prices.php

Jolt for Sri Lanka’s condo market

New rule bars foreigners from owning private land

Sri Lanka’s expanding condominium (condo) market has been thrown into disarray and confusion following new rules barring the sale of private land to foreigners, industry officials say.

The rule, based on an announcement in the Budget 2013 by President Mahinda Rajapaksa, comes in the backdrop of concern that prime properties bought by foreigners are rapidly depleted the land resources. Chairman of the state-owned Condominium Authority Kapila Gamage conceded that there is confusion at the moment with regard to the sale of condos as a result of a letter sent by the Treasury to the Commissioner General of Lands directing him not to registrar land deed transfers including condominiums of foreigners with effect from January 1st in accordance with the budget proposal.

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(Source: Sunday Times)

800 acres for huge projects in Hambantota

The Government has allocated more than 800 acres of land for several foreign and local projects in the Hambantota District. Investment Promotion Minister Lakshman Yapa Abeywardena said the projects were aimed at attracting foreign investments in industries ranging from car assembling plants to glass and sugar factories.

Mr. Yapa said that 300 acres of land would be allocated for the setting up of three foreign universities and a local university. An Information Technology park would also be included.

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(Source: Sunday Times)

Lankans of foreign citizenship can now buy land

Persons of Sri Lankan origin currently holding foreign passports are to be granted concessions to invest in the real estate sector in the country.The concessions come in terms of the scheme of payment which was hitherto extended only to Sri Lankans living overseas, but continuing to hold Sri Lankan citizenship.

The Exchange Controller has offered concessions to Sri Lankans of foreign citizenship to allow them to purchase real estate in the country in Sri Lankan rupees, to be paid out from their Non-Resident Foreign Currency (NRFC) accounts.

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(Source: Sunday Times)

SUNCITY ADDS MODERN APARTMENT COMPLEX TO BATTARAMULLA SKYLINE

A pioneer in construction and real-estate, Suncity Property Developers (Pvt) Ltd unveiled plans on the latest addition to their extensive portfolio of apartment complexes, and introduced a new building at Battaramulla.

Located on Bodhiya Road, a mere 300 meters from the Battaramulla main road, the building will house 20 apartments over four floors, with modern facilities and conveniences including a 24-hour security service, a gymnasium, swimming pool etc. Each apartment will also be equipped with the trademark amenities including air conditioning, hot water and porcelain tiling. The apartment complex which is scheduled for completion by July 2013 is currently open for buyers who are interested in affordability, convenience and a great lifestyle.

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(Source: Adaderana.lk)