Rental yield of villas in Ahangama and Weligama: what the numbers show
A typical two-bedroom short-let in Ahangama grossed about LKR 6.4 million in the year to September 2026 on one data provider's figures, at 38% average occupancy. Against an illustrative LKR 136 million asking price that is a gross yield near 4.7%, before management, cleaning, platform fees and tax. Every villa let to tourists must be registered with the SLTDA.
What do villas in Ahangama and Weligama earn?
Short-let analytics firms estimate revenue by tracking listings on the booking platforms. For the twelve months to September 2026, AirROI reports:
| Area | Bedrooms | Listings | Median annual revenue (LKR) | Average daily rate (LKR) | Occupancy |
|---|---|---|---|---|---|
| Ahangama | 1 | 12 | 4,020,000 | 33,628 | 41% |
| Ahangama | 2 | 33 | 6,380,000 | 55,119 | 46% |
| Ahangama | 3 | 19 | 4,820,000 | 74,956 | 39% |
| Weligama | 2 | 68 | 647,000 | 15,058 | 42% |
| Weligama | 3 | 36 | 815,000 | 22,911 | 39% |
| Weligama | 5+ | 21 | 8,510,000 | 225,609 | 31% |
Two lessons. First, Ahangama's homes earn far more than Weligama's at the same size: Weligama's much lower daily rates (LKR 15,058 a night for two bedrooms, against LKR 55,119 in Ahangama) point to a more budget-oriented stock. Second, the averages are much higher than the medians, because a few top villas earn a lot. Plan on the median, not the average. AirDNA's figures for Ahangama (54% occupancy, USD 101.8 average daily rate, over a broader area) show how much the estimates depend on method.
How do I work out the yield?
Gross yield = annual rental revenue ÷ total cost of the villa (price plus purchase costs). Net yield = revenue minus running costs, divided by the same total.
Illustrative example: a two-bedroom villa in Ahangama advertised at LKR 136.37 million (a live listing on Perch & Acre on 4 November 2026), bought with about 6% purchase costs, so roughly LKR 144.5 million in total.
| Item | LKR |
|---|---|
| Median revenue, Ahangama two-bedroom (AirROI) | 6,380,000 |
| Gross yield on LKR 144.5 million | about 4.4% |
| Less: management, cleaning, platform fees, utilities, maintenance, insurance, tax | your quotes |
| Net yield | lower; get quotes before you buy |
The figures are gross bookings before any cost. Ask any manager for a written fee proposal and a full year's statement from a villa they already run.
What costs come out of the rent?
- Management and cleaning, usually a share of revenue; get it in writing.
- Platform commissions on each booking.
- Utilities, staff, pool and garden, plus repairs; salt air near the sea raises maintenance.
- Low season: the southwest monsoon from mid-May to September brings rain and rough seas, and September is Ahangama's weakest month.
- Tax: rental income from a Sri Lankan property is taxable in Sri Lanka under the Inland Revenue Act No. 24 of 2017; take advice on your own position, including in your home country.
Do I need to register a holiday villa?
Yes. The Sri Lanka Tourism Development Authority (SLTDA) told the Sunday Times in February 2025 that displaying a property online without SLTDA registration is an offence, that registration became effective from 1 January 2025, and that 16,000 to 20,000 online properties had no registration. Enforcement began with raids in Mirissa and Unawatuna. Register before you list, and keep the building's approvals in order: see building a villa: cost and approvals.
Frequently asked questions
What is a good rental yield for a villa in Sri Lanka?
There is no official figure. On 2025-26 short-let data, a median two-bedroom villa in Ahangama grossed about 4% to 5% of an illustrative purchase price before costs. Your yield depends far more on the specific villa, its price and its management than on the town average.
Is Ahangama or Weligama better for rentals?
On AirROI's data, Ahangama's two-bedroom homes earned a median LKR 6.38 million against LKR 647,000 in Weligama, at similar occupancy. Weligama's lower daily rates suggest a more budget-oriented stock, so compare like with like. See the town pages for Ahangama and Weligama.
Can a foreigner earn rental income from a leased villa?
Yes, if the lease permits sub-letting and the property is registered with the SLTDA. Income received into an Inward Investment Account can be remitted abroad under the account's rules; see sending money to buy property.
When is the high season on the south coast?
November to April, when the sea is calm and the surf season runs. January is Ahangama's best month on AirROI's data, and the monsoon months from mid-May to September are the quietest.
Should I buy land and build, or buy a finished villa?
Building lets you choose the design but needs approvals and time before the first booking; a finished villa can earn from its first season. Compare a finished villa's price with land (prices per perch) plus build cost, and browse villas for sale on the south coast.
Sources
- Ahangama short-term rental market data, October 2025 to September 2026 (listings, occupancy, daily rate, revenue by bedroom, seasonality), AirROI
- Weligama short-term rental market data, October 2025 to September 2026, AirROI
- Ahangama short-term rental market overview (occupancy 54%, average daily rate USD 101.8), AirDNA
- Sri Lanka Tourism to raid illegal lodgings, Sunday Times, 16 February 2025
- Sri Lanka climate: southwest monsoon mid-May to September, Climates to Travel
- Perch & Acre listings database: live two-bedroom villa in Ahangama advertised at LKR 136.37 million, 4 November 2026.
General information, not legal advice. Laws and rates change; confirm every point with your own Sri Lankan lawyer before you pay a deposit.
