PROPERTY Law, FOREIGN Probates, Wills, Trust and Conveyancing
“When any person shall die leaving a will under or by virtue of which any property in Sri Lanka is in any way affected, any person appointed executor therein may apply to the District Court of the district within which he resides, or within which the testator resided at the time of his death, or within which any land belonging to the testator’s estate is situate, within the time limit and in the manner specified in section 524, to have the will proved and to have probate thereof granted to him ; any person interested, either by virtue of the will or otherwise, in having the property of the testator administered, may also apply to such court to have the will proved and to obtain grant to himself of administration of the estate with copy of the will annexed. ” (Civil Procedure Code)
As a Property Law firm, we provide the following
- Resealing Foreign PROBATES.
- All Property Law matters including Drafting Deeds, mortgages and Leases
- WILL’s and Administrative Conveyances
- Conveyance on CONDOMINIUM property development Projects AND Prepare Compliance Reports
- TESTAMENTARY Matters
BUSINESS AND PROPERTY LAW FAQs (Sri Lanka)
Property Ownership and Foreigners
Can a foreigner buy land in Sri Lanka?
No. Under the Land (Restrictions on Alienation) Act No. 38 of 2014, foreigners and foreign companies cannot acquire freehold land directly. They may, however, lease for up to 99 years or use permitted exemptions.
Can foreigners buy condominium units in Sri Lanka?
Yes. Foreigners can purchase condominium units provided payment is made by inward remittance through a bank before executing the deed.
Are there exceptions to the land ownership restrictions?
Yes. Transfers to foreign diplomatic missions and inheritance by foreign next of kin under Sri Lankan succession law are permitted.
Can foreign companies lease land?
Yes. Long-term leases up to 99 years are allowed for foreign individuals and foreign companies.
Can a foreigner own property through a Sri Lankan company?
Yes. A Sri Lankan company with less than 50% foreign shareholding may hold property, subject to law.
Conveyancing and Legal Process
What is conveyancing in Sri Lanka?
Conveyancing is the legal process of transferring property ownership from seller to buyer, including title search, document drafting, and registration.
Do property transfer documents need notarization?
Yes. All deeds must be executed in writing before a Notary Public and registered with the Land Registry.
What taxes are payable on property transfers?
Stamp duty on transfers is approximately 4% of market value, determined by the provincial council.
Is lease documentation different?
Yes. Leases require a lease deed, notarial execution, and stamp duty, typically around 1% of rental value for the first 20 years.
Can a property contract be executed without a lawyer?
While possible, legal counsel is critical to verify titles, prevent fraud, and ensure a valid transfer.
Land Restrictions and Compliance
What is the Land (Restrictions on Alienation) Act?
An Act restricting alienation (sale) of land to non-citizens, foreign companies, and companies with 50%+ foreign shareholding.
Can inherited land go to a foreign heir?
Yes, if the heir is next of kin and the transfer complies with Sri Lankan succession laws.
Is there a tax on land leased to foreigners?
The Land Lease Tax that previously applied was abolished in 2017; long-term leases have simplified tax treatment.
Can property owned by a foreigner be mortgaged?
Restrictions historically applied, but leases and company structures differ; professional advice is recommended.
What is required to repatriate sale proceeds?
Property purchase funds must be remitted inward through official banking channels for future repatriation.
Corporate and Commercial Property
Can a company buy property for business?
Yes, a Sri Lankan registered company may own property, subject to shareholding laws and land law restrictions.
Do commercial leases follow different rules?
Yes, commercial leases require detailed agreements and may be longer in tenure with specific tax implications.
Are land titles searchable?
Yes. Lawyers conduct title searches at the Land Registry to confirm ownership and defects.
What due diligence is needed before purchase?
Inspect deeds, survey plans, encumbrances, litigation history, and zoning restrictions.
Can urban and rural land have different rules?
Yes, zoning laws and development plan restrictions may vary regionally.
PROBATE, WILLS AND TRUSTS IN SRI LANKA
Wills Law and Validity
Can a foreign resident execute a will in Sri Lanka?
Yes. Under the Wills Ordinance, anyone over 18 may execute a will disposing of movable and immovable property.
Does a Sri Lankan will apply to property overseas?
Yes, if clearly stated; but separate local wills may be advisable for foreign assets.
What formalities are needed for a valid will?
The will must be in writing and executed with required witnesses per the Wills Ordinance.
Can a will be re-executed in Sri Lanka?
Yes. Under the Ordinance, foreign wills may be re-executed to confirm validity.
What happens if someone dies without a will?
Assets devolve according to Sri Lankan intestacy laws and the applicable personal law of the deceased.
Probate and Administration
What is probate?
Probate is the court authentication of a deceased person’s will and appointment of an executor.
Which court grants probate?
The District Court where the deceased resided or where immovable property is situated grants probate.
Can foreign executors apply for probate?
Yes. Foreign executors can apply subject to court procedures.
What is resealing foreign probate?
Resealing gives a foreign grant of probate effect in Sri Lanka for administering local assets.
Is court supervision required for estate distribution?
Yes, the court oversees estate administration to protect beneficiaries.
Trusts and Estate Planning
Are trusts recognized in Sri Lanka?
Yes, trusts are recognized under common law principles and used in estate planning.
Can foreign individuals set up trusts in Sri Lanka?
Yes, subject to regulatory compliance and tax considerations.
What is the role of a trustee?
A trustee holds legal title to trust assets and administers them for beneficiaries.
Can trusts hold immovable property?
Yes, but registrations and compliance with succession laws are required.
Are trusts taxed in Sri Lanka?
Trusts may have specific tax implications depending on residency and trust type.
Succession and Inheritance
Is inheritance by foreign heirs allowed?
Yes, foreign next of kin may inherit land under Sri Lankan succession law.
Does Thesavalamai law affect inheritance?
In the Northern Province, Thesavalamai law governs inheritance and property rights among certain Tamil inhabitants.
Can minors inherit property?
Yes, but court-appointed guardians usually manage minor’s interests.
Can a will override statutory succession laws?
Yes, a valid will disposes of property according to its terms, subject to judicial scrutiny.
Is foreign divorce relevant to property succession?
Yes; divorce affects testamentary rights and property distribution under local family law.
Conveyancing and Other Practical FAQs
What is a Power of Attorney (POA) for property?
A POA authorizes someone to act for the owner in property transactions and must be registered.
Do POAs executed abroad need registration?
Yes, to be valid in Sri Lanka they must be registered within statutory timelines.
Is capital gains tax payable on property sales?
Yes, capital gains tax applies to gains from property sales for residents and non-residents alike.
What is stamp duty on wills?
Stamp duty is minimal but payable according to instrument value.
Can property disputes be settled out of court?
Yes, through mediation or arbitration, but enforceability requires legal documentation.
Should I hire a lawyer for property transactions?
Yes — professional legal advice mitigates risks in conveyancing, probate, and trusts.
Tips and Compliance
How long does conveyancing take?
Typically several weeks to months, depending on due diligence and registration.
Can property documents be digitally filed?
Some Land Registry services are digitizing records; lawyer guidance improves results.
Are property rights protected by Sri Lankan law?
Yes, property rights are upheld under statutory law and the Constitution.
Can a foreigner buy land in Sri Lanka?
No. Under the Land (Restrictions on Alienation) Act No. 38 of 2014, foreigners and foreign companies cannot acquire freehold land directly. They may, however, lease for up to 99 years or use permitted exemptions.
Can foreigners buy condominium units in Sri Lanka?
Yes. Foreigners can purchase condominium units provided payment is made by inward remittance through a bank before executing the deed.
Are there exceptions to the land ownership restrictions?
Yes. Transfers to foreign diplomatic missions and inheritance by foreign next of kin under Sri Lankan succession law are permitted.
Can foreign companies lease land?
Yes. Long-term leases up to 99 years are allowed for foreign individuals and foreign companies.
Can a foreigner own property through a Sri Lankan company?
Yes. A Sri Lankan company with less than 50% foreign shareholding may hold property, subject to law.
What is conveyancing in Sri Lanka?
Conveyancing is the legal process of transferring property ownership from seller to buyer, including title search, document drafting, and registration.
Do property transfer documents need notarization?
Yes. All deeds must be executed in writing before a Notary Public and registered with the Land Registry.
What taxes are payable on property transfers?
Stamp duty on transfers is approximately 4% of market value, determined by the provincial council.
Is lease documentation different?
Yes. Leases require a lease deed, notarial execution, and stamp duty, typically around 1% of rental value for the first 20 years.
Can a property contract be executed without a lawyer?
While possible, legal counsel is critical to verify titles, prevent fraud, and ensure a valid transfer.
What is the Land (Restrictions on Alienation) Act?
An Act restricting alienation (sale) of land to non-citizens, foreign companies, and companies with 50%+ foreign shareholding.
Can inherited land go to a foreign heir?
Yes, if the heir is next of kin and the transfer complies with Sri Lankan succession laws.
Is there a tax on land leased to foreigners?
The Land Lease Tax that previously applied was abolished in 2017; long-term leases have simplified tax treatment.
Can property owned by a foreigner be mortgaged?
Restrictions historically applied, but leases and company structures differ; professional advice is recommended.
What is required to repatriate sale proceeds?
Property purchase funds must be remitted inward through official banking channels for future repatriation.
Can a company buy property for business?
Yes, a Sri Lankan registered company may own property, subject to shareholding laws and land law restrictions.
Do commercial leases follow different rules?
Yes, commercial leases require detailed agreements and may be longer in tenure with specific tax implications.
Are land titles searchable?
Yes. Lawyers conduct title searches at the Land Registry to confirm ownership and defects.
What due diligence is needed before purchase?
Inspect deeds, survey plans, encumbrances, litigation history, and zoning restrictions.
Can urban and rural land have different rules?
Yes, zoning laws and development plan restrictions may vary regionally.
Wills Law and Validity
Can a foreign resident execute a will in Sri Lanka?
Yes. Under the Wills Ordinance, anyone over 18 may execute a will disposing of movable and immovable property.
Does a Sri Lankan will apply to property overseas?
Yes, if clearly stated; but separate local wills may be advisable for foreign assets.
What formalities are needed for a valid will?
The will must be in writing and executed with required witnesses per the Wills Ordinance.
Can a will be re-executed in Sri Lanka?
Yes. Under the Ordinance, foreign wills may be re-executed to confirm validity.
What happens if someone dies without a will?
Assets devolve according to Sri Lankan intestacy laws and the applicable personal law of the deceased.
Probate and Administration
What is probate?
Probate is the court authentication of a deceased person’s will and appointment of an executor.
Which court grants probate?
The District Court where the deceased resided or where immovable property is situated grants probate.
Can foreign executors apply for probate?
Yes. Foreign executors can apply subject to court procedures.
What is resealing foreign probate?
Resealing gives a foreign grant of probate effect in Sri Lanka for administering local assets.
Is court supervision required for estate distribution?
Yes, the court oversees estate administration to protect beneficiaries.
Trusts and Estate Planning
Are trusts recognized in Sri Lanka?
Yes, trusts are recognized under common law principles and used in estate planning.
Can foreign individuals set up trusts in Sri Lanka?
Yes, subject to regulatory compliance and tax considerations.
What is the role of a trustee?
A trustee holds legal title to trust assets and administers them for beneficiaries.
Can trusts hold immovable property?
Yes, but registrations and compliance with succession laws are required.
Are trusts taxed in Sri Lanka?
Trusts may have specific tax implications depending on residency and trust type.
Succession and Inheritance
Is inheritance by foreign heirs allowed?
Yes, foreign next of kin may inherit land under Sri Lankan succession law.
Does Thesavalamai law affect inheritance?
In the Northern Province, Thesavalamai law governs inheritance and property rights among certain Tamil inhabitants.
Can minors inherit property?
Yes, but court-appointed guardians usually manage minor’s interests.
Can a will override statutory succession laws?
Yes, a valid will disposes of property according to its terms, subject to judicial scrutiny.
Is foreign divorce relevant to property succession?
Yes; divorce affects testamentary rights and property distribution under local family law.
Conveyancing and Other Practical FAQs
What is a Power of Attorney (POA) for property?
A POA authorizes someone to act for the owner in property transactions and must be registered.
Do POAs executed abroad need registration?
Yes, to be valid in Sri Lanka they must be registered within statutory timelines.
Is capital gains tax payable on property sales?
Yes, capital gains tax applies to gains from property sales for residents and non-residents alike.
What is stamp duty on wills?
Stamp duty is minimal but payable according to instrument value.
Can property disputes be settled out of court?
Yes, through mediation or arbitration, but enforceability requires legal documentation.
Should I hire a lawyer for property transactions?
Yes — professional legal advice mitigates risks in conveyancing, probate, and trusts.
Tips and Compliance
How long does conveyancing take?
Typically several weeks to months, depending on due diligence and registration.
Can property documents be digitally filed?
Some Land Registry services are digitizing records; lawyer guidance improves results.
Are property rights protected by Sri Lankan law?
Yes, property rights are upheld under statutory law and the Constitution.