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Sri Lanka Stops Foreign Land Ownership

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Posted: 25 Feb 2013 | 8:57 pm

In an abrupt move last week the government of Sri Lanka has announced a ban on land ownership for foreigners. This will cover both privately held property and state enterprises.

While the civil war ended three years ago and a rush of foreigners has taken up property, the government has said there has not been enough further investment via hard economic benefits. Much of the concerns is that early investors have been speculators and not those interested in developing significant businesses.

At the same time many foreign investors have been put onto the sidelines for much of last year over concerns about high inflation, weakening currency and rising interest rates.

A regime of long term leases is the governments apparent solution to the ban. The shifting policy is expected to put up another obstacle to foreign investment and may further dampen sentiment about the ongoing economic stability of the country.

DO YOU LIKE THIS?

So I'm a Canadian and would potentially like to live in Sri Lanka one day. I've saved up enough to buy a small property, and am interested in buying a small tea farm, costing about 50 lac.
However I cannot legally own the land, in any way, right? So I would have to trust a Sri Lankan friend to legally own the land for me, while I put out the money. Bill Barnett responds:
Leasing is an option a long term one.

Al, 14 May 2013 | 1:06 am

A regime of long term leases is the governments apparent solution to the ban ? .... Looks like everybody is awaiting the small print and laws following this announcement. Nevertheless, the loss for the country could be substantial. South East Asia has benefitted tremendously by foreign ownership of homes and Holiday villas. Bali has build over 30 000 private villas by now I am told and I suspect there must be foreign ownership in Thailand, Malaysia etc. creating employment and foreign exchange in the billions $. Tourism and the "silver haired" $ by retirees seeking a place in the tropical sun could easily become the biggest sustaiable factr for Sri Lanka's economy. It seems this is not fully understood by those supporting an anti foreign sentiment. I propse the use of calculators and a return to traditional hospitality routed in their age old Buddhist culture.

Hans, 04 Mar 2013 | 10:37 am

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