Investing in Weligama: Yields, Appreciation & Ownership
Who can buy, how ownership works, and the taxes and duties for buying property in Weligama.
Who can buy in Weligama
Under the Land (Restrictions on Alienation) Act No. 38 of 2014, foreigners cannot directly purchase freehold land. Alternatives include 99-year leases (15% lease tax abolished in 2016) or establishing a Sri Lankan company where a local trustee holds at least 51%.
| Buyer | Permitted | Tenure | Conditions |
|---|---|---|---|
| Sri Lankan Citizen | Yes | Freehold | UnrestrictedApproval: Land Registry |
| Foreign National (lease) | Yes | Leasehold | Up to 99 years lease; no lease tax since 2016Approval: Land Registry |
| Foreign National (via company) | Conditional | Freehold (via company) | Sri Lankan company with 51%+ local shareholdingApproval: Company registration + Land Registry |
Sri Lanka rule, applies in Weligama.
Stamp duty and registration in Sri Lanka
In Sri Lanka, stamp duty is a tax on property transactions, typically paid by the buyer. The rate is generally 4% of the property value for registering a deed of ownership.
| Property value | Stamp duty | Registration |
|---|---|---|
| Any | 4% | Varies |
Sri Lanka rule, applies in Weligama.
Capital gains on a sale
Capital Gains Tax (CGT) in Sri Lanka is levied on the profit from the sale of investment assets like land and buildings. The current rate is 15% of the capital gain.
| Holding period | Classification | Tax rate | Indexation |
|---|---|---|---|
| Any | Immovable Property | 15% | Not applicable |
Sri Lanka rule, applies in Weligama.
Always consult a licensed real estate attorney before purchase. Rules change; verify current law. Always confirm with a qualified tax professional. Rules change; verify with a professional before you transact.
Frequently asked questions about Weligama
Yes. Up to 99 years lease; no lease tax since 2016
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