History
Formerly known as Ceylon it became an independent state in 1948 and was renamed Sri Lanka in 1972. Sinhalese became the national language and Sinhalese interests were looked after more. This caused tensions between the Sinhalese and Tamil people. A war erupted between the two in 1983 over religious and ethnic clashes. Bandaranaike was prime minister at the time and tried to peace make between the two but was assassinated in 1959. His wife took over the government but the nation went from bad to worse. Buddhism became the national religion in 1972.
Property Prices
Range varies according to what you wish to purchase as shown below:
Bungalows from around £42,000+
Houses from around £85,000+
Apartments from around £30,000+
Where to buy
The most popular places to buy property are Kandy, Colombo and Arugam Bay. There are various types of properties available to accommodate various lifestyles. Beaches, transport and facilities are quite close by.
Cost of Living
The cost of living in Sri Lanka is really low. Meals, travel and accommodation are very cheap.
Buying real estate
Usually a deposit of 10% is required when signing the contract and then the rest can be paid within a month or after 3 months. The payment of the amount outstanding will need to be mentioned in the contract agreement of how it will be paid. The buyer is recommended to go through an estate agent if not able to be physically looking for properties in Sri Lanka. The estate agent will check out all properties on the buyers behalf and make a shortlist of recommendations.
Legal
A lawyer/solicitor will need to be appointed to deal with drawing up all contracts, agents, notaries and the Land Registry. The lawyer/solicitor will check the title, give you a title report and if the title is good then the buyer should proceed. If the title is fine then the land should be surveyed by a surveyor.
Fees payable
Notary fees are 3%. Legal fees vary from company to company but are around 3% of the property purchase price. Agents charge around 2.5% for their services.
Taxes
100% tax on the purchase price of property unless you purchase the property under BOI (Board Of Investment) in Sri Lanka. 100% tax is payable on property for personal use but if it is for business use then tax may be reduced. Stamp duty is 3% for the first 100,000 SLR and every additional 100,000 SLR is 4% stamp duty.
Finance
Can be arranged through a few banks in Sri Lanka, some banks do not offer finance to foreigners. Finance can be taken out for up to 30 years and paid in monthly instalments.
Embassy
13, Hyde Park Gardens
London
W2 2LU
Tel: 020 7262 1841/7
Fax: 020 7262 7970
