Sri Lanka (LK)

Verify that the property is eligible for foreign purchase. Foreign nationals can lawfully purchase: (1) Any condominium parcel registered under the Apartment Ownership Law — on any floor — provided the full purchase price is paid upfront via inward foreign remittance (2018 Amendment removed the previous "above 4th floor" restriction). (2) A leasehold of up to 99 years registered at the Land Registry. They CANNOT purchase: freehold land, houses on land, or properties through a locally-funded transaction. Consult a Sri Lankan conveyancing lawyer before proceeding.

A BASL-registered conveyancing lawyer (attorney-at-law, typically also holding a notarial commission) is mandatory for all property transactions. Engage your own lawyer independently — do not rely solely on the developer's or seller's recommended lawyer. Your lawyer will conduct title searches, review the sale agreement, confirm the condominium's registration under the Apartment Ownership Law, and handle the Land Registry transfer. Typical fee: 1–2% of property value.

Your lawyer must conduct a full title search at the Registrar General's Department (for the Deeds system) or the Land Title Settlement Department (for the Bim Saviya title registration system). This verifies: clear title, no encumbrances (mortgages, court orders, caveats), correct survey plan, and — for condominiums — that the building is registered under the Apartment Ownership Law. Confirm the developer's track record and obtain copies of all building approvals, the condominium plan (deposited with the Land Registry), and the management company details.

A Sale and Purchase Agreement (SPA) is drafted by the buyer's lawyer. The SPA sets out: price, payment schedule, possession date, conditions precedent, penalties for default, and confirmation of Apartment Ownership Law registration. For new-build condominiums, the developer's own agreement will be used — have your lawyer review it carefully. A deposit of 10–20% of the purchase price is typically paid on SPA signing.

Foreign nationals must pay the full condominium purchase price using funds remitted from abroad through formal banking channels before the Deed of Transfer is executed. Your bank will issue an Inward Remittance Certificate for each transfer. Retain all certificates — they are essential for: the Land Registry process, IRD stamp duty purposes, and future repatriation of sale proceeds. Never pay from local cash; you need the remittance paper trail to repatriate proceeds when you sell.

The Deed of Transfer is prepared by your lawyer. It must be executed before a Licensed Notary (an attorney-at-law holding a notarial commission under the Notaries Ordinance) with at least two witnesses present. The notary certifies the deed and presents it to the Registrar General's Department for registration. Stamp duty is assessed by the IRD and paid before or at registration. The registered deed constitutes your proof of ownership.

Stamp duty on property transfers is 4% of the higher of the purchase price or the IRD-assessed value (LKR 4 per LKR 100 of value). This is payable by the buyer to the relevant Provincial Council. The Land Transfer Tax of 100% does NOT apply to condominium purchases by foreigners (the statutory exemption covers all condominiums registered under the Apartment Ownership Law, regardless of floor). After registration, obtain an official copy of the registered deed from the Registrar General's Department.

Notify the Colombo Municipal Council (or relevant local authority) of the ownership change to update the property rates assessment. Arrange transfer of utility connections (Ceylon Electricity Board, National Water Supply and Drainage Board) through the condominium management body. Ensure the management body fee (sinking fund and maintenance) standing order is established.