Foreign investors in the real estate sector in Sri Lanka can find numerous incentives that are especially appealing to them.
Re-launch of the Investor Visa Program: In June 2024, Sri Lanka reintroduced the Investor Visa program to attract non-Sri Lankans interested in purchasing condominium units. This program allows for online applications and offers significant benefits, such as a five-year visa for investments of USD 100,000 and above, and a ten-year visa for investments of USD 200,000 and above.
Tax Incentives and Policy Reforms: The government has implemented a competitive tax package to make investing in Sri Lanka more appealing. This includes tax breaks, duty exemptions, and simplified land and property acquisition procedures. Additionally, new investment laws are being introduced to ensure the investment rights of foreign investors and to create a more investor-friendly legislative framework.
Colombo Port City Project: This ambitious project is designed to create a new financial district in Colombo, offering numerous opportunities for real estate investment. The government has provided various incentives, including tax breaks and duty exemptions, to attract foreign investors to this project.
Streamlined Processes: Efforts are being made to simplify and expedite the investment process. For example, the Investor Visa program now allows foreigners residing in Sri Lanka to apply for visas without leaving the country, and the approval process has been streamlined to take a maximum of five days.
Promotion of Real Estate Events: Events like the Lanka Property Show 2023 have been instrumental in showcasing Sri Lanka’s real estate potential to a global audience. These events highlight luxury condominiums and gated community housing developments, attracting significant interest from foreign investors.
In the past year, the Sri Lankan government has announced several initiatives to attract foreign investors into the real estate sector:
New Investment Law: Set to be unveiled by the first quarter of 2024, this law aims to ensure the rights of foreign investors and make Sri Lanka an investment-friendly destination. It will feature several incentives designed to attract foreign direct investment (FDI).
Policy Reforms: The government is focusing on policy reforms to create a more conducive environment for foreign investments. This includes streamlining regulations and eliminating bottlenecks to facilitate smoother investment processes.
Financial Incentives: There is a push to reintroduce tax exemptions for foreign real estate investments, which were previously removed. This move is expected to make Sri Lanka more competitive compared to other markets like India, Pakistan, Thailand, and Dubai.
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