Language(s): Sinhala, Tamil
Total Area: 65,610 km²
GDP (in million USD): 48,241
Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka, is an island country in the northern Indian Ocean off the southern coast of the Indian subcontinent in South Asia.
Sri Lanka's house price rises continue. The noteworthy upward trend in 2010 and after was made possible not only due to restored peace, hut by government policies to attract investors, which have had a huge impact in the tourism sector, transforming the leisure property sector.
Higher construction costs, as well as the increased lending rates are expected to slow real estate sector growth in the following months.
Residential properties in the Greater Colombo area, as well as its adjacent suburbs have been a hit for IT-BPO employees amounting to 63,000 Sri Lankans. Meanwhile, demand, especially for leisure properties, is high with tourist arrivals increasing by 7.8% to 90,338 tourists during the year to July 2012.
Since 2004, it has been expensive for foreigners to own properties in Sri Lanka, as they are required to pay a 100% tax on landed properties they purchased. The 100% surcharge is also imposed on apartments below the 4th floor. However, new legislation on foreign ownership is expected in 2012 that could relieve the 100% tax imposed on foreign buyers.