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.

More >>

(Source: Ada Derana)

Sri Lanka Repeals 100% Land Tax on Foreigners

The Sri Lankan government is scrapping the 100 percent tax levied on foreigners buying land in that country in favor of a new special land tax to be unveiled in the 2012 budget.

The new tax will remove restrictions on foreigners buying and developing land anywhere in the country, and will also close loopholes which have allowed many foreigners to buy land in Sri Lanka tax free. It is also thought that removing the tax will increase tourism and property sales to foreigners. The overall aim of the decision is to increase the revenues coming into government coffers from the sale of land to foreigners, sources from the Finance Ministry told reporters.

More>> 

(Source: The Epoch Times)

Sale and no more land leases for foreigners

Legislation is being introduced to remove existing legal impediments in the sale of land to foreigners and foreign companies to develop state land in major towns occupied by people illegally. These people are now being evicted, government officials said. The current system of levying a 100% tax on land transfers to foreigners will be removed by introducing a special land tax in order to prevent the sale of land at inflated prices to foreign buyers, making huge profits completely tax free and thereby cheating the government of revenue while also breaking immigration laws.  Under the present system, a foreigner or a foreign company can buy tax-free land if their investment for the whole project is over US$10 million. Foreigners are now allowed to own land in Sri Lanka with some restrictions. The purpose of this 100% tax is to discourage foreigners acquiring properties in Sri Lanka. However a joint venture company incorporated in Sri Lanka (with foreign participation) is not liable to pay that tax. Furthermore the condominium units of residential or non-residential accommodation on or above the 6th floor of a registered condominium apartment constructed with the approval of the UDA are exempt from such 100% tax, the Finance Ministry official said. More>> (Source: Sunday Times)