Thinking of Buying Property in Sri Lanka? What You Need To Know 2025.
I’ve been lucky enough to visit many amazing places over the years, but there’s one country I always find myself returning to — Sri Lanka. It’s such a stunning destination, and I hope to spend more time there as I gracefully age. For now, I make do with frequent trips, always dreaming of the day I can stay longer. My friends often joke about me buying an apartment there (though I suspect they’re secretly hoping for a free place to stay!). Thinking of buying property in Sri Lanka? It’s a question I’ve asked myself more than once — and it turns out, the answer is yes, you actually can!
With the wheels in motion, I decided to explore the world of foreign real estate further. For the sake of this article, I’ll focus specifically on purchasing apartments, as this appears to be the more straightforward option for foreign investors hoping to turn their dream into a reality.
Sri Lanka is rapidly becoming a prime destination for foreign property buyers — and for good reason. It’s beautiful, affordable, and offers a lifestyle that balances city sophistication with laid-back island vibes. Whether you’re picturing a chic, modern apartment by the beach or a tranquil retreat nestled in the rolling hills, thinking about buying property in Sri Lanka could be your first step toward that dream.
Read on for all the key information and important details you need to know if you’re considering buying an apartment in Sri Lanka.
Let’s get started!
Need a comfortable base in Colombo while you search for the perfect apartment? Here are my top accommodation recommendations.
✅ Best Places to Stay in Colombo Sri Lanka: Your Complete Guide To The Best Hotels and Areas in 2025.
Why Buy an Apartment in Sri Lanka? (Hint: It’s Not Just the Beaches)
Before we get bogged down in all the nitty-gritty details of the process, let’s talk about the real question: Why should you buy an apartment in Sri Lanka?
Natural Beauty that Will Make Your Jaw Drop
First off, if you haven’t yet been to Sri Lanka, get ready. The landscapes here are nothing short of jaw-dropping. Picture this: you’re sipping your morning coffee on the balcony of your apartment, gazing out at endless golden beaches, lush jungles, or even misty mountains. Sri Lanka’s diverse landscape offers something for everyone. City lover? Colombo has you covered. Nature enthusiast? You’ve got the hill country and national parks. Just imagine waking up to that view every day… you’ll have to pinch yourself!
A Rich Culture
Between ancient temples, street festivals, delicious Sri Lankan cuisine and the world’s friendliest people, life here is never boring. The vibrant cultural mix creates a sense of community, and you’ll likely find yourself instantly immersed in it. Buying an apartment in Sri Lanka means you’re not just getting a home; you’re getting a front-row seat to a life of excitement and color.
Affordable Real Estate (Your Wallet Will Thank You)
Let’s talk money. Compared to other Asian and international hotspots like Bali or Phuket, property prices in Sri Lanka are still relatively affordable. You can score a modern, beachside apartment for a fraction of what it might cost you in other tourist-heavy spots. That means more money for tea, surfboards, or whatever it is you spend your time doing on this island paradise.
Strategic Location (Like, Really Strategic)
This is the part where I talk about Sri Lanka being at the crossroads of international shipping routes and a gateway to global markets. Yawn, right? But on a more relatable note, this makes Sri Lanka an exciting place for business, travel, and global connections. So, whether you want to sip coconuts or start your own international business empire (okay, maybe not the empire part), Sri Lanka’s location can work in your favor.
What resources are available to View Properties On Offer?
If you are thinking about buying property in Sri Lanka, there are several resources available. For viewing properties for sale see the below options:
- ➡️ https://www.lankapropertyweb.com/
- ➡️ https://lankarealestate.com/sale/
- ➡️ https://www.ceylonestateagents.com/
- ➡️ https://www.luxely.lk
Property Developers’ Websites
Many developers in Sri Lanka list their current and upcoming projects directly on their websites. So if you are thinking about buying property in Sri Lanka I would also look for off-plan properties, this is a great place to start. Some reputable developers include:
- John Keells Properties
- Access Projects
- Primelands
Real Estate Agents
Connecting with a reputable real estate agent can be a big help, especially if you’re unfamiliar with the local market. Agents can provide detailed property listings and help with the legal and logistical aspects of the purchase.
➡️ https://akaraapartments.lk/
Some Of My Favorite Projects
The Legal Stuff (Yes, You Have to Read This)
I know what you’re thinking: “Real estate rules? Legal jargon? Pass.” But don’t worry, I’m going to break it down for you in plain English—no legalese here! Please keep in mind that I’m not an expert in this area, so it’s important to seek professional legal advice. I’m simply offering an overview of the buying process and key considerations to keep in mind.
Foreign Ownership Rules: You Can Totally Do It, But With a Twist
First, let’s get this out of the way: foreigners can absolutely buy property in Sri Lanka, but with a few important caveats. While there are no restrictions on purchasing apartments in cities like Colombo, there’s a limit when it comes to buying land. Specifically, foreigners can own up to 49% of the shares in a building, but no more. You will also need to open an Inward Investment Account (IIA)
This is good news for anyone looking to buy in a modern apartment complex or high-rise, especially in Colombo. In short, you can totally buy that swanky apartment by the beach. But buying land (think large garden estates) may be trickier. No worries though, there are always ways to structure the deal legally—just consult with a local lawyer who specializes in property transactions.
The Paperwork Marathon (But It’s Not as Bad as It Sounds)
Thinking about buying property in Sri Lanka, now for the less fun part—paperwork. Buying property in Sri Lanka involves quite a bit of paperwork, but it’s manageable if you’ve got the right help. You’ll need to make sure all the documents for the property are clear and valid, and that the property has the necessary permits. This is why it’s crucial to work with a reputable lawyer who can guide you through the legal hoops. Trust me, it’ll make life so much easier.
Taxes and Fees (That’s Right, There Are Some)
Just when you thought you were done with the legal jargon, here’s a quick overview of the taxes and fees associated with buying property in Sri Lanka:
- Stamp Duty: Typically around 4% of the property’s value.
- Notary Fees: These range from 0.5% to 1.5% of the property value.
- Capital Gains Tax: If you sell the property, expect to pay taxes based on the profits you make (generally around 10%).
So, while buying an apartment in Sri Lanka is affordable compared to other destinations, keep in mind that you’ll still need to factor in these costs. It’s best to budget for them early on so there are no surprises down the line.
Financing Your Sri Lankan Dream Home (Because Who Doesn’t Need a Good Plan?)
Unless you’ve just won the lottery or have a large inheritance from an eccentric aunt, you’ll likely need to consider financing options for your apartment. From my research I couldn’t see any options for obtaining a loan from a local bank, but all is not lost.
International Financing Options
You could explore options in your home country. Many international banks offer loans for overseas property investments, though the process may take a little longer to arrange.
It’s important to shop around and compare mortgage rates and terms so you get the best deal. A little extra homework now will save you a lot of money in the long run.
Off Plan Apartment Buildings
Off-plan apartment buildings in Sri Lanka often offer various incentives or payment plans to attract foreign buyers. Developers may provide flexible payment schemes, such as installment plans, where a portion of the payment is made during construction, with the remaining balance due upon completion. Some developers might offer discounts or perks like free furniture, property management services, or even reduced prices for early investors.
It’s essential to research each developer’s offer thoroughly, as terms can vary. Always ensure you’re working with reputable developers and consult a legal expert to review any agreements or contracts before committing.
Finding the Perfect Neighborhood for Your Apartment
Now that we’ve tackled the legalities and financing, let’s talk about the fun stuff: Where to live in Sri Lanka?
Sri Lanka offers a variety of neighborhoods depending on your lifestyle preferences. Here are a few popular ones:
Colombo: The Urban Hub
If you’re looking for a fast-paced, city living experience, Colombo is the place to be. As the capital city, it’s filled with everything you could want—luxury apartments, restaurants, shopping malls, and a vibrant nightlife. It’s perfect for anyone who wants to be in the thick of the action. Click to read the full blog – Things To Do In Colombo. There are of course other good reasons for choosing Colombo as the city to turn your property dream to reality:
Healthcare for Peace of Mind
The idea of a good hospital nearby is reassuring. Colombo is home to some of the best private healthcare facilities in the country. So, if you need to make a trip to the doctor, you can do it with the peace of mind knowing you’re in good hands (or at least you can be pampered while waiting).
Getting Around Without Breaking a Sweat
Colombo has better roads and public transport options than the rest of the country, making it a breeze to get from point A to point B. Plus, it’s close to the international airport—so if you ever get a sudden craving for some good old Western comfort food, you can hop on a flight, but don’t forget your sunscreen!
The Best of Both Worlds
Colombo offers a delightful mix of traditional Sri Lankan culture and cosmopolitan vibes, meaning you can enjoy spicy street food one minute, then sip coffee in a hip café the next. It’s a great spot for those who want to embrace a new culture but still like their cappuccinos fancy.
Solid Investment
Being the capital city, Colombo is also where the property market is a little more stable. For someone looking to invest for the future, Colombo offers more predictable value—and the occasional property boom.
An Expat’s Paradise
Colombo has a sizable expat community, so if you’re worried about being the only foreigner on the block, don’t be! There’s always someone to share a good cup of tea with.
A Climate You Can Love
The weather in Colombo is tropical but not as extreme as other areas. So, you can enjoy the sunshine without feeling like you’re melting in the heat. The sea breeze isn’t just good for the soul, it’s also good for those looking to keep their hair looking fresh!
In short, Colombo offers a blend of comfort, convenience, and a touch of adventure that makes it an ideal place for foreigners to buy property in Sri Lanka.
Galle: Colonial Charm by the Sea
It’s no secret that Galle is one of my top spots to stay when in Sri Lanka. The city is known for its charming Dutch colonial architecture and its proximity to stunning beaches. A great option for those looking to live in a historical town with a laid-back vibe. It really is the perfect place for foreigners to buy property in Sri Lanka.
✅ Galle Fort: The Ultimate Stay & Top Things To Do
Coastal Dream
Galle is a coastal gem with views that make you feel like you’re living in a travel brochure. The sea breeze, the sunsets, and the sound of waves crashing—seriously, it’s hard to imagine a better place to relax and pretend you’re a permanent vacationer. I mean, who wouldn’t want to wake up to that?
History and Charm
With its UNESCO World Heritage status, Galle is packed with charm. Picture cobblestone streets, colonial-era buildings, and enough history to make you feel like you’ve stepped into a different time. If you love a good story (and a cool Instagram pic), Galle’s got you covered.
Quiet, But Not Boring
It’s calm, it’s peaceful, but it’s definitely not a place where you’ll get bored. You’ve got great restaurants, quirky shops, and the kind of chill vibe where you can read a book at a café without anyone rushing you. But if you’re craving excitement, it’s not too far from the action either.
Nature’s Playground
Galle is surrounded by lush greenery, gorgeous beaches, and beautiful natural scenery. It’s like living in a postcard, but with fewer tourists trying to photobomb you. Whether you’re into hiking, snorkeling, or just sipping a coconut by the shore, nature’s always on your side here.
Relaxed Pace
Life in Galle moves at a slower pace. It’s perfect for anyone who’s had enough of the chaotic city life and just wants to take it easy. Plus, you’ll get to be the person who takes their time to sip coffee at 10 a.m. without feeling guilty about it. #LivingTheDream
Expat Friendly
Galle has a growing expat community, so you won’t be the only one in flip-flops and sun-kissed skin. You’ll meet people who are in the same boat—looking for a slice of paradise and a place to call home. It’s like a little club, but with better beaches.
Close, but Far Enough
You’re not too far from Colombo, so if you need a quick city fix, you can jump in a car and get there in a few hours. But when you’re back in Galle, it’s just you, the ocean, and that lovely laid-back vibe.
So, if you’re dreaming of a place that offers stunning views, rich history, and a chance to live like you’re on vacation—Galle might just be calling your name.
Kandy: Serenity in the Hills
If you prefer cooler weather and a slower pace of life, Kandy, nestled in the central hills, offers lush greenery and stunning mountain views. It’s perfect for nature lovers, with access to botanical gardens, temples, and hiking spots. It’s a quieter, less expensive and more peaceful lifestyle if you’re not all about the hustle and bustle of the city. This is another great location where foreigners can buy property in Sri Lanka. If you need somewhere to stay while exploring properties on offer check out my recommendations here:
✅ Stunning Stays In Kandy – Unique Spots with Breathtaking Scenery
Let’s Make Your Sri Lankan Dream a Reality!
So, whether you’re daydreaming of sipping coconut water on a Galle beach or indulging in Colombo’s bustling charm, owning a little piece of Sri Lanka might just be the ticket to living your best life (with a side of sunburn and salty hair, of course).
Thinking about buying property in Sri Lanka? Before you start packing your bags and picking out furniture for your dream apartment, remember that buying property as a foreigner has a few rules—think of it like dating: you have to make sure you’re on the same page before diving in. Make sure to get solid legal advice, and maybe even a local friend to help with the finer details (they might be good for more than just showing you the best curry spots).
So foreigners can buy property in Sri Lanka, and your slice of paradise is out there, and with the right steps, it could be yours. Just remember to take it slow and enjoy the ride—you’re not just buying property, you’re investing in a whole new chapter of life. And hey, even if things get a little complicated, at least you’ve got the ocean to calm you down!
