Why Sri Lanka is the Best Luxury Real Estate Investment Location?


Sri Lanka formerly known as “Serendib” was the origin land of the word “Serendipity”. Sri Lanka was said to be a land with immense natural treasures from plantations to gems, pearls. That is the reason why Ptolemy’s famous map of the island was sketched in the year 1535 with much accuracy without any advanced technology. Sri Lanka was a known location for many and was a centerpiece in international trade.


So why Sri Lanka is the Best Luxury Real Estate Investment Location in the world. Here are our picks;



Sri Lanka has been ranked as the no 1 destination, among 20 countries, for winter travel by USA Today.  This list included well established destinations like Dubai, Abu Dhabi, Galapagos Islands, etc. Sri Lanka has great weather throughout the year and good for expats who would like to enjoy the best part of their lives.


Low Cost of Living

Colombo the commercial capital of Sri Lanka is ranked 358th out of 424 cities in the world by Numbeo, a popular cost of living analysis site. Colombo is 65.13% less costlier than in New York. All other major cities in Sri Lanka are less costlier than Colombo.


Openness and Friendliness towards Foreigners

There are many many testaments from foreign travelers about the generosity and hospitality of Sri Lankans towards them. One of the iconic was the 2004 Tsunami aftermath. During post Tsunami recovery many affected travelers didn’t have anything to wear during which Sri Lankans who also had their belongings washed out into sea helped the travelers first.


Low Taxes on Properties

With a new President and government, the taxes on properties have been reduced significantly to encourage foreign investments. Gazette notification 2151/52 has removed VAT taxes on apartments from 1st of December 2019 and Gazette 2147/59 has reduced VAT rate from 15% to 6%. These along with other benefits for foreign investors is an enticing prospect.


Rising demand for urban vertical living in Colombo

Colombo’s urban vertical living demand is skyrocketing with the increase of expats coming in as part of development projects being carried out in the country and living, working in the commercial capital. This fueled by the development and maintenance of infrastructure is helping demand to rise even more.

In conclusion the next decade in Sri Lanka for Luxury Real Estate looks very promising and surely an investment asset class which no ones wants to miss out.


Luxely.lk‘s mission is to promote and encourage the selling and renting of these increasing number of Luxury houses and apartments predominantly in the western province. We are achieving this by building a platform where potential buyers, tenants can meet with Luxury real estate agents who have offerings. Subscribe the Luxely.lk‘s email list, Facebook, Instagram, LinkedIn pages for updates.

Luxely is open for Real Estate Agents in Sri Lanka

Luxely is Sri Lanka’s First Exclusive Luxury Real Estate Platform. Luxely is focused on fulfilling the Luxury accommodation needs of Sri Lanka starting off from Western Province, Sri Lanka and eventually expanding throughout Sri Lanka.


Currently Luxury Real Estate agents have to rely on Generic Real Estate Platforms which lists everything from Land to Commercial Properties and everything in between to find prospective buyers and tenants.


Luxely eliminates the need to be listed multiple platforms by creating an exclusive Luxury Real Estate Platform where Demands and Offerings can meet seamlessly and result in productive, fruitful transactions.


So we are inviting all Luxury Real Estate agents to come and register with us at Luxely.lk and make use of the Social Media marketing campaigns and SEO benefits we have to offer to get a broader reach.






Sri Lanka as a Luxury Destination

Sri Lanka has been hailed a Paradise on Earth by the early explorers, traders etc. It was filled with expensive pearls, elephants, gems, cinnamon, etc. and was considered a destination where a King’s Luxury needs can be fulfilled easily.

That was in the past, Today Sri Lanka is slowly turning into a Luxury Destination for tourists, business travelers, entrepreneurs, etc. with its ever expanding skylines, high rises, hotels, reclaimed beach fronts.

In this article series we will be looking at three verticals of Luxury which can found in contemporary Sri Lanka starting of living.


Luxury Living!

Sri Lanka is becoming hub for Luxury Real Estate with investment projects from India, China, Singapore and many more countries involved. Some of the most ambitious projects are listed below;


Altair Colombo
Altair (Photo Credit Altair Website)

Altair – This is arguably the most iconic building project in Colombo, Sri Lanka. This building is shaped as a capitalized letter A and designed by renowned architect Moshe Safdie who also designed Singapore’s iconic Marina Bay Sands project.  For more information visit the project website.


Cinnamon Life
Cinnamon Life (Photo Credit Cinnamon Life Website)

Cinnamon Life – This is said to be a city within the city of Colombo, with Luxury Hotel, Luxury Apartments, Luxury Workspaces integrated together in a 4.5 million square foot area in the heart of the city. The architect of this ginormous project is Cecil Balmond who has designed many iconic buildings around the world. For more information visit the project website.


Marina Square
Marina Square (Photo Credit Marina Square Website)

Marina Square – Another Luxurious Condominium with five towering buildings which is integrated to have all amenities and scintillating views of the sea. This project is intended to be not just a space for living but for also an active lifestyle. For more information visit the project website.


There are many more projects such as Ritz Carlton Residencies Colombo, Capitol Twin Peaks, etc. not to forget the Port City Project which are also worth mentioning and to be excited about. It is obviously going to be a Luxurious future for Sri Lanka from year 2020 onwards. In coming articles we will talk about other aspects of Luxury in Sri Lanka.

Laws governing Real Estates in Sri Lanka

Sri Lanka being a multi cultural, multi ethnic country is governed by multiple laws depending on the geographic area of the country. Also Sri Lanka had the influence of its Western colonial rulers, mainly the Portuguese, the Dutch and the English when it comes to governing laws of Sri Lanka.


Sri Lanka has the following laws in place within its borders as of 2019;


  • The Roman-Dutch Law – Introduced by the Dutch, thi laws is the most influential branch of Island’s legal system and considered as the common law of Sri Lanka.


  • The English Law – Introduced by the English, this law is also known as British law and Sri Lanka’s Criminal Law is mostly based on this.


Apart from the two main laws mentioned above, Sri Lanka also has certain laws that governs certain parts of the Island and demographics. These are known as Personal Laws and are as following;



  • The Kandyan Law – Applicable only to Sinhalese families and their descendants living in regions coming under Kandyan Kingdom (Central Province of the country and its suburbs).


  • The Thesawalamai Law – Applicable only to Tamil families and their descendants living in Jaffna peninsula. This law governs all immovable properties like lands and buildings within the region.


  • The Muslim Law – Applicable only to practitioners of Islam religion.


Apart from these general laws; there are many acts which you need to be aware of if you intend to buy or rent real estate within Sri Lanka.

  • Rent Act No. 7 of 1972 – This act governs all aspects of renting property.


  • Protection of Tenants (Special Provisions) Act No. 28 of 1970 – This act protects tenants from owners who force tenants out any properties.


  • National Housing Development Authority Act No. 17 of 1979 – This act oversaw the establishment of National Housing Development Authority (NHDA).


  • Ceiling on Housing Property Law No. 1 of 1973 – This law regulates size, ownership, cost of construction  of properties.


  • Pradeshiya Sabhas Act No. 15 of 1987- This act created the Pradeshiya Sabhas for local administration.


  • Urban Development Authority Act No. 70 of 1979 – This act established the Urban Development Authority (UDA).


  • National Housing Act No. 37 of 1954 – This act created the National Housing Commissioner.


  • Urban Councils Ordinance No. 61 of 1939 – This governed the establishment of Urban Councils.


  • Land Acquisition Act No. 9 of 1950 – This act governs provisions for acquiring of private lands for public use.


  • Land Reform Law No. 1 of 1972 – This act utilizes agricultural lands efficiently to generate more employment and productivity.


  • The Land Grants (Special Provisions) Act No. 43 of 1979 – This act grants agricultural lands or estate lands for Sri Lankans without lands.


  • Primary Courts Procedure Act No. 44 of 1979 – This is used to settle land disputes resulting from war, act of violence, etc.


  • The Prescription Ordinance No. 22 of 1871 – This sets time duration for insulating actions in courts of law.



Luxely.lk is a Luxury Real Estate Platform for Selling and Renting Luxury Properties.

Why invest in Sri Lankan Luxury Real Estate?

Sri Lanka also called Serendib, Taprobane, Pearl of Indian Ocean has fascinated explorers of the past for generations. With its tall coconut trees, high mountains, pristine beaches and smooth flowing rivers, Sri Lanka is a paradise on Earth.


This small Island nation has a lot to offer for tourists, investors alike. Listed as the Best Country to Travel for the year 2019 by the LonelyPlanet, Sri Lanka is a hot bed for tourism. Furthermore city of Colombo, Sri Lanka was adjudged as the fastest growing tourist destination in South Asia and 4th fastest growing city in the World by Mastercard Global Destinations Cities Index in the year 2016.


Image Courtesy Port City Colombo Web Site (http://www.portcitycolombo.lk)

Adding to that Colombo city is going through a rapid expansion mainly due to the Port City project which is due to be completed in the year 2020.


Sri Lanka is slowly making itself into a Luxury destination by starting off from the city of Colombo. There are so many Luxury Apartment Buildings, Housing projects coming up in and around Colombo. Namely the Altair, Colombo City Center, etc. With a tourist trend of staying in informal accommodations as opposed to Hotels with the emergence of sharing economic startups, These Luxury Apartments and Housing are expected to be in high demand in the coming future. This means good return on investment for investors and Luxury travelling experience for tourists, A win-win scenario for all.