How to send money to Sri Lanka to buy property (and get it out again)
Foreign and diaspora buyers should bring purchase money into Sri Lanka through an Inward Investment Account (IIA) at a licensed bank, opened in their own name. Routing the funds through an IIA documents the inward remittance, which you need to repatriate rental income and sale proceeds later. Apartments bought by foreigners must be paid in full upfront by inward remittance.
What is an Inward Investment Account?
An IIA is a bank account for non-residents and other eligible investors, held in foreign currency or rupees, that tracks money brought into Sri Lanka for investment. Credits include inward remittances and declared foreign currency brought into the country; debits include payments for permitted capital transactions and transfers abroad to the account holder. Because the money came in through the account, the income and capital proceeds of an investment made through it can be sent back out. Many licensed banks offer IIAs; ask for the bank's key facts document.
How do I pay for a lease, plot or apartment?
- Open an IIA in your own name (or your company's, if a company is buying) before you pay any deposit.
- Remit from your own account abroad to the IIA. Keep the SWIFT confirmations and the bank's credit advice.
- Pay the seller from the IIA, by bank transfer to the seller's account, against the agreement to sell (deposit) and the deed or lease (balance). Make sure the deed records the consideration paid.
- Keep the file: remittance records, IIA statements, the registered deed and the stamp duty receipt. You will need them to repatriate proceeds and to compute capital gains tax.
For a condominium apartment, the full price must be paid upfront by inward remittance before the deed is executed; see buying an apartment as a foreigner. For a company purchase, the foreign shareholder invests in the company's shares through an IIA; see buying land through a company.
How do I get my money out when I sell?
When you sell, or when a lease premium or rent is paid to you, the proceeds go back into the IIA and can be remitted abroad with the documents the bank asks for. Ask your bank for its list before you sell; keep the deed, the original remittance records and your tax filings ready. Capital gains tax is 15% for individuals and 30% for companies from 3 June 2026; see land tax for foreigners. Rules change through Central Bank directions, so check the current position with your bank before you sell.
Frequently asked questions
Do I need an IIA to buy property in Sri Lanka?
For a foreign or diaspora buyer, it is the standard and safest route, because it documents the inward remittance that lets you repatriate the investment later. An apartment bought by a foreigner must be paid in full by inward remittance in any case. Ask your bank and lawyer which account suits your purchase.
Can a Sri Lankan living abroad use an IIA?
Yes, if eligible: dual citizens, Sri Lankans with foreign citizenship or permanent residence, and Sri Lankans employed abroad (excluding emigrants) are listed as eligible in banks' IIA key facts documents.
Can I pay the seller in dollars?
Pay through the banking system, from your IIA, as the agreement and deed state; the price and stamp duty are calculated in rupees. Never pay cash or through informal transfer channels, and never pay a deposit into a third party's personal account.
Can rental income be sent abroad?
Income from an investment made through an IIA can be credited to it and remitted abroad with supporting documents, after any tax due. See the villa rental yield guide.
What exchange rate will I get?
The bank's rate on the day you convert. Perch & Acre shows US dollar figures at the Central Bank's indicative rate for reference only; agree the price in rupees in the agreement to sell.
Sources
- Inward Investment Account key facts document (eligibility, permitted credits and debits, investments in shares and real estate, repatriation; Directions No. 15 of 2021 under the Foreign Exchange Act No. 12 of 2017), Nations Trust Bank
- Revised regulations issued under the Foreign Exchange Act No. 12 of 2017 (Gazette Extraordinary Nos. 2213/34 to 39 of 3 February 2021), Central Bank of Sri Lanka, 23 April 2021
- Capital Gains Tax takes sharp turn: what Sri Lanka's new 2026 rates mean for investors, Daily FT, 24 September 2026
- Apartment purchases by foreigners paid upfront by inward remittance (Land (Restrictions on Alienation) (Amendment) Act No. 21 of 2018), as set out in our guide can a foreigner buy land in Sri Lanka.
General information, not legal advice. Laws and rates change; confirm every point with your own Sri Lankan lawyer before you pay a deposit.
