NEWS

Sri Lankan law restricts foreign freehold ownership of land, but there are still ways for foreigners to acquire land for use. Here’s a breakdown of the legalities:

• Foreign Ownership Restrictions: Act 38 of Sri Lanka prohibits foreigners and foreign companies (with over 50% foreign ownership) from directly acquiring freehold land.

• Leasehold Option: This is a viable alternative. Lease agreements allow foreigners to secure land for extended periods, often up to 99 years. Leasehold grants significant rights and use of the land during the lease term.

• Company Formation: For freehold ownership, foreigners can establish a Sri Lankan company with a local majority shareholder (minimum 51% stake). This company can then purchase land. This option involves setting up and maintaining a company, so consulting a professional is recommended.

Remember, it’s crucial to involve a lawyer specializing in Sri Lankan real estate to ensure you navigate the legalities smoothly.