Can a foreigner buy land in Sri Lanka?
No. Since the Land (Restrictions on Alienation) Act No. 38 of 2014, a foreign national cannot take freehold title to land in Sri Lanka, and a deed that tries to do so is void. A foreigner can lease land for up to 99 years, buy a condominium apartment outright, or inherit land, and dual citizens are exempt from the ban.
What does the 2014 Land Act say about foreign buyers?
Section 2 of the Act prohibits transferring title to land to three groups: a foreigner, a foreign company, and a Sri Lankan company with 50% or more foreign shareholding, direct or indirect. The prohibition is backdated to 1 January 2013. Section 18 makes a transfer in breach void, and Section 4 requires the Registrar of Lands to confirm compliance before registering a deed, so a non-compliant deed will not get through the Land Registry.
The Act also repealed the old transfer tax on foreign buyers (Section 19, repealing Part VI of the Finance Act No. 11 of 1963). There is no longer a tax route to freehold; there is a prohibition.
What can a foreigner legally buy or hold in Sri Lanka?
- A lease of up to 99 years (Section 5). The 15% land lease tax that originally came with it was abolished by Amendment Act No. 3 of 2017.
- Condominium apartments. Since Amendment Act No. 21 of 2018, a foreigner may buy a condominium parcel on any floor, provided the full price is paid upfront by inward foreign remittance before the deed is executed.
- Dual citizens. A Sri Lankan dual citizen is exempt and buys exactly as a citizen does.
- Inheritance, gift or will to a foreign next of kin.
- Colombo Stock Exchange-listed companies, even with majority foreign shareholding, for transfers from 1 April 2018.
- Ministerial exemptions for strategic development projects. These are for large investors, not individuals.
What are the practical routes for a foreigner who wants land?
The 99-year lease. The standard route for a villa plot on the south coast. You pay a premium, the lease is registered, and your rights are set by the lease deed. Read our 99-year lease guide before you sign anything.
A Sri Lankan company you part-own. A company with less than 50% foreign shareholding may hold freehold. The foreign share must stay below 50% for 20 consecutive years; if it crosses that line, the transfer becomes void from that date unless the foreign shareholding is brought back below 50% within six months (twelve months for a Colombo Stock Exchange-listed company; Section 2(2)). Since 30 March 2026, anyone owning or controlling 10% or more of a company must be disclosed to the Registrar of Companies as a beneficial owner under the Companies (Amendment) Act No. 12 of 2025. It is a legitimate structure, not a device for hiding ownership: a Sri Lankan partner genuinely controls the majority.
A nominee. Land in a Sri Lankan friend's or partner's name gives you no title. Courts have occasionally imposed a constructive trust (confirm with your lawyer), but you would be relying on litigation to recover an asset. We do not list land offered on this basis.
An apartment. Clean, registrable freehold. See buying an apartment as a foreigner.
Frequently asked questions
Can my Sri Lankan spouse buy the land for us?
Yes, and the land is then theirs, not yours. The Act gives no spousal exemption, and marriage does not give a foreign spouse a title interest by default. If you fund a purchase in a spouse's name, have your lawyer document the arrangement and explain what it does and does not protect.
Is the law likely to change?
Reform is discussed regularly, including a June 2026 Daily FT legal analysis arguing for a reconsideration of the freehold ban. As of November 2026 nothing has been enacted that lets a foreign individual own land. We will update this page if it changes.
Can I buy land first and sort out the structure later?
No. The restriction bites at the moment of transfer, and the Registrar checks it. Decide the structure (lease, company, apartment, dual citizen) with your lawyer before you pay a deposit. Our 8-step buying guide sets out the order.
General information, not legal advice. Laws and rates change; confirm every point with your own Sri Lankan lawyer before you pay a deposit.
