Sri Lanka to ease restrictions on foreigners acquiring land for investment

Sri Lanka is taking measures to ease the restrictions imposed on foreigners acquiring land in the island nation for investment projects, the Ministry of Finance said in a statement on Wednesday.

According to the statement, a new draft bill is being prepared with the aim of providing provisions to provide ownership of land without being affected by the Land Restriction and Alienation Act of Sri Lanka.

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(Source: Xinhua)

New land restriction laws for foreigners jolt Lankan companies

Sri Lankan companies have been thrown into disarray and confusion over a new Land (Restrictions on Alienation) Bill presented in parliament this week which affects land and property if foreign shareholding in a company exceeds the 50 per cent limit.Several company heads told the Business Times that they were shocked after they came to learn about the ramifications of Section 2 (2)(b) of the bill which states that foreign ownership should not exceed 50 per cent for a consecutive period of 20 years from the date of transfer of land. Under the proposed law, all transactions after January 2013 – the effective date – will be affected.

In the event, the foreign ownership exceeds 50 per cent during this period the company stands to be deprived of the title to the land from date of shareholding crossing the 50 per cent foreign ownership. 

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(Source: Sunday Times)

Reversal on land sales to foreigners

The Government has sought Cabinet approval for legal exemption to sell 25 acres of land in Negombo, 44 acres in Kimbulapitiya and two roods, 26 perches from Bambalapitiya to a Singaporean Company to establish a private university and related infrastructure, Daily Mirror learns.

The present law does not provide for the selling of private or crown land to a foreign national or a foreign company. Such properties can only be leased out for 99 years under the prevailing regulations.

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(Source: Daily Mirror)

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)

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)

SRI LANKA INTRODUCES NEW LAND POLICY TO PROMOTE TOURISM

Sri Lanka has introduced new land policy to attract foreign investment for tourism, a minister said on Wednesday.

Lakshman Yapa Abeywardena, deputy minister for Economic Development, said the Cabinet has given nod to lease out state lands for hotel projects for foreign investors under 99 years lease agreement.

“The lands will be leased out on the prices valued by Government Chief Valuer,” Abeygwardena said.

Sri Lanka’s robust post-war tourism sector continued to grow, posting a 7.8 percent rise in July from a year earlier, according to government data.

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(Source: Ada Derana)