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 government expects FDI to more than triple to USD 4 billion by 2022.
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.