By Miyuru Asiri Dissanayake | Australian solicitor and Attorney-at-Law in Sri Lanka | Published 12 June 2026

Many Sri Lankans living in Australia think about buying an apartment in Sri Lanka. For some, it is a holiday home. For others, it is an investment, a retirement plan, or a way to keep a long-term connection with Sri Lanka.

However, buying property in Sri Lanka from Australia should not be treated as a simple real estate transaction. The legal position can change depending on whether the buyer is a Sri Lankan citizen, a Sri Lankan dual citizen, an Australian citizen, or another foreign citizen.

Before signing an agreement, paying a deposit or transferring money, it is important to understand the legal framework, the title position, the payment method and the registration process.

The main laws that apply

The key legislation is the Land (Restrictions on Alienation) Act No. 38 of 2014, as amended. This Act restricts the transfer of land in Sri Lanka to foreigners, foreign companies and certain companies with foreign shareholding.

For apartment purchases, the important question is whether the property is a condominium parcel recognised under the Apartment Ownership Law No. 11 of 1973, as amended. Buying an apartment is not always the same as buying ordinary land, but the transaction must still comply with the relevant legal requirements.

For Sri Lankan dual citizens, the Land (Restrictions on Alienation) Act also contains an important exemption. A Sri Lankan dual citizen may be treated differently from a foreign buyer who has no Sri Lankan citizenship. The Citizenship Act may also become relevant when confirming citizenship status.

Other laws may also become relevant depending on the transaction, including the Registration of Documents Ordinance, the Registration of Title Act No. 21 of 1998, stamp duty laws, tax laws, exchange control requirements and local authority approval laws.

Why citizenship status matters

A Sri Lankan dual citizen may have more flexibility than a foreign citizen when dealing with Sri Lankan property. This can be important where the purchase involves land, a house, or a property interest that is not clearly limited to a condominium apartment.

However, dual citizenship does not remove the need for due diligence. The buyer should still check the title history, ownership documents, building approvals, condominium registration, management rules, service charges and whether the seller has proper authority to transfer the property.

An Australian citizen who is not a Sri Lankan dual citizen should be more careful. The law generally restricts foreign ownership of land in Sri Lanka. Therefore, the legal character of the property must be confirmed before money is paid.

Buying land is different from buying an apartment

Buying ordinary land in Sri Lanka is not the same as buying an apartment.

Foreigners generally cannot purchase freehold land in Sri Lanka in the same way a Sri Lankan citizen may purchase land. A long-term lease may be possible in some circumstances, but that is legally different from ownership.

An apartment may be different where the property is a condominium parcel that falls within the statutory framework. But buyers should not assume every unit marketed as an “apartment” is legally safe for a foreign buyer. The condominium plan, registration status and title documents should be checked.

This is especially important for apartments under construction. A buyer should confirm whether the project has the required approvals, whether the condominium or provisional condominium documentation is in order, and what happens if completion is delayed.

Inward foreign remittance and payment records

For foreign buyers, the payment method can be critical. The purchase price may need to be paid through proper inward foreign remittance before the relevant deed of transfer is executed.

This is not merely a banking formality. It can affect compliance, registration, future sale and the ability to explain or repatriate funds later.

A buyer living in Australia should avoid informal payment methods, unclear third-party transfers or cash arrangements. Proper bank records, remittance confirmations and source-of-funds documents should be kept carefully.

Due diligence before signing

A buyer should obtain independent legal advice before signing a reservation form, sale agreement, deed of transfer or power of attorney.

Important checks may include title deeds and ownership history, condominium plan or provisional condominium documents, seller’s authority to sell, building approvals, completion documents, mortgages, caveats, seizures or disputes, parking rights, accessory parcel rights, common areas, management corporation rules, service charges, maintenance obligations, unpaid rates, taxes, outgoings, stamp duty, registration issues, tax issues, and the terms of the sale agreement and deed of transfer.

The developer, agent or salesperson should not be treated as a substitute for independent legal advice.

Power of attorney for buyers in Australia

Many buyers living in Australia cannot travel to Sri Lanka for every step of the transaction. In that situation, a properly drafted and executed power of attorney may be required.

This document may allow a trusted person in Sri Lanka to sign documents, attend to registration, deal with banks or communicate with government offices. Because the document gives legal authority to another person, it should be prepared carefully and the appointed person should be chosen with caution.

A defective power of attorney can delay the transaction or be rejected by Sri Lankan authorities.

Think about future risks

Buying an apartment is not only about completing the purchase.

A buyer should also consider future sale, rental management, maintenance payments, tax consequences, inheritance, family disputes, estate planning and repatriation of sale proceeds.

For Sri Lankans living in Australia, the apartment may also become relevant in Australian family law. For example, if spouses later separate in Australia, a property in Sri Lanka may still be relevant to an Australian property settlement.

Get the legal pathway right first

Buying an apartment in Sri Lanka can be a valuable investment, but the legal pathway must be right from the beginning.

Miyuru Asiri Dissanayake is an Australian solicitor and an Attorney-at-Law of Sri Lanka. This dual background assists Sri Lankan clients in Australia to understand the Australian and Sri Lankan legal issues that may arise when purchasing property in Sri Lanka from overseas.

If you are an Australian citizen, Sri Lankan dual citizen or foreign buyer considering an apartment in Sri Lanka, obtain advice before signing documents, paying a deposit or transferring funds.