Sri Lanka, possessing a long coastline and a rich culture, has quickly become a popular vacation destination in Asia

Sri Lanka is an island nation located in South Asia to the southwest of India. Possessing a long coastline and a rich culture, it has quickly become a popular vacation destination in Asia with tourist arrivals increasing by 10,5% in 2018. The country attracts many multinational companies and FDI increased to USD 1.63 billion in 2017.

Many real estate investors are attracted to Sri Lanka. The premium residential sector is experiencing rapid price appreciation. Frequently buyers are Sri Lankan expatriates looking to benefit from the country's growth at a time when foreigners are legally restricted from participating. The hotel sector is also booming. The government supports this activity as tourism constitutes a key economic driver for the country. Hotels are being built near the wildlife sites and beach shores of the island, and major luxury groups such as Shangri-La and Hyatt are now present on the island.


Sri Lanka
Economy Sri Lanka is a fast growing economy and recorded GDP per capita of USD 4,102 in 2018. In 2017, the country received USD 1.63 billion of foreign direct investment, corresponding to 1.9% of GDP. Sri Lankan economic growth is fueled by rice, tea, rubber, coconut, and fisheries. Other economic drivers include growth in the construction sector and remittances from the Sri Lankan diaspora, along with a sharp increase in tourism.
Legal The rule of law is generally effective in Sri Lanka and investors interests are largely respected. There are restrictions on foreign ownership of real estate, however, requiring investors to consider different legal mechanisms. These measures are meant to protect immovable assets such as land and property so nationals maintain access to these limited commodities. A 15% tax on buying leases is imposed on foreigners up to a duration of 99 years.
Regions Urban development in Sri Lanka has been focused on five regions: Colombo, Jaffna, Hambantota, Kandy, and Galle. Our research report delivers a thorough economic and real estate analysis on these areas.

Related Articles