🔑 Key Updates to Powers of Attorney in Sri Lanka (2022 & 2024 Amendments)
The law on Powers of Attorney (POA) in Sri Lanka has undergone significant reform in recent years, with Act No. 28 of 2022 and Act No. 3 of 2024 introducing new rules that every individual and business should be aware of.
⚖️ 2022 Amendments (Act No. 28 of 2022)
1. Validity Period – POAs are valid for 5 years unless a shorter or longer period is specified (state institutions excluded).
2. Irrevocable POAs Restricted – Only state institutions can issue irrevocable POAs.
3. Revocation Process – Must be done through notice, a notarial revocation, and registration with the Registrar General.
4. Temporary Notice – A 3-month interim notice can be filed while formal revocation is pending.
👉 These reforms were aimed at curbing misuse, providing clarity, and ensuring proper oversight.
⚖️ 2024 Amendments (Act No. 3 of 2024)
1. Execution Abroad Simplified – Foreign POAs can now be executed before an Ambassador/Consular Officer without the need for two additional witnesses.
2. Revocation Abroad Clarified – Cancellations executed outside Sri Lanka may be signed before an Ambassador/Consular Officer or an authority recognized under the laws of that country.
3. Updated Record-Keeping – Schedule II was replaced, modernizing how POAs and revocations are recorded and indexed by the Registrar General.
4. Validation of Old POAs – POAs executed before 25 October 2022 must be registered within two years of that date. If not, they automatically become null and void.
👉 This amendment bridges transitional gaps and makes the law more practical for Sri Lankans living overseas.
📌 Why These Changes Matter
Individuals and companies must now track the expiry of their POAs.
Anyone holding an old (pre-2022) POA should ensure it has been registered before the grace period lapsed.
Sri Lankans abroad benefit from simplified execution and revocation procedures.
⚖️ These reforms collectively reflect Sri Lanka’s attempt to balance protection against abuse with the practical needs of commerce, family arrangements, and cross-border dealings.
By Samurdhi Fernandopulle
Senior Partner, Attorney at Law
Buying Land or Apartment as a Foreigner in Sri Lanka
Foreigners intending to invest in real estate in Sri Lanka should be aware of the specific legal framework governing the purchase of land or apartments. The regulations differ for land and apartments, with certain restrictions and conditions for foreign ownership.
🏡 1. Buying Land in Sri Lanka
Foreigners face strict rules when acquiring land in Sri Lanka. The Land (Restrictions on Alienation) Act No. 38 of 2014, as amended, regulates these transactions.
Outright Ownership
Foreign nationals cannot own land outright in Sri Lanka. The law completely prohibits the transfer of freehold land to a foreigner, a foreign company, or a company with 50% or more foreign shareholding.
Leasehold Rights
However, foreigners can lease land for up to 99 years. They must pay the required lease duties and registration fees.
Since 2016, the Land Lease Tax—previously 15%—has been abolished, making long-term leases more attractive.
Corporate Ownership
A company registered in Sri Lanka with at least 51% local ownership may buy land.
Fully foreign-owned companies cannot purchase land but can lease property for approved commercial or industrial projects.
Exceptions
In certain cases, the law allows flexibility:
Board of Investment (BOI) projects approved by the Cabinet may qualify for exemptions.
A foreigner married to a Sri Lankan citizen may buy land in the local spouse’s name.
Listed companies and dual citizens may also qualify under specific provisions.
🏢 2. Buying Apartments in Sri Lanka
When it comes to apartments, Sri Lankan law is far more favorable to foreigners.
Apartment Ownership
Foreigners can purchase condominium units without restriction, provided they buy units above the ground floor.
Unlike land, the Act places no limits on the percentage of apartments a foreigner may own in a single building.
Payment Rules
Buyers must remit funds through inward foreign remittance to Sri Lanka.
Using official banking channels ensures compliance with Central Bank foreign-exchange regulations and allows easy repatriation later.
📜 3. Legal Process for Purchasing Property
Whether buying an apartment or leasing land, following the correct legal process is essential.
- Title Search
Always hire an attorney-at-law to conduct a title search. This confirms that the property is free from disputes, encumbrances, or fraud. - Sales Agreement
After the title check, both parties sign a preliminary sales agreement that outlines the purchase price, deposit, and other conditions. - Deed of Transfer or Lease Agreement
For land, a lease agreement is signed before a notary.
Registration
Finally, the notary registers the deed or lease with the relevant Land Registry.
Registration legally confirms the buyer’s or lessee’s rights to the property.
💰 4. Taxes and Fees
Foreign buyers must pay several statutory fees and taxes during the purchase process.
| Item | Land | Apartments | Details |
| Stamp Duty | 4% | 4% | Based on the declared property value |
| VAT | — | May apply | Charged if purchased from a VAT-registered developer |
| Land Lease Tax | Not applicable after 2016 | — | Removed for all leases executed after 1 Jan 2016 |
🌾 5. Restrictions on Agricultural Land
Foreigners cannot purchase or lease agricultural land in Sri Lanka.
This restriction protects local farming resources and preserves the island’s agricultural sustainability.
💵 6. Repatriation of Sale Proceeds
When a foreign owner sells property in Sri Lanka, they may repatriate the funds overseas.
To do so, they must prove that the original purchase was made through an inward remittance and comply with exchange control regulations.
⚖️ Summary
*Foreigners cannot own land outright, but they can own apartments or lease land for up to 99 years.
*Transactions must comply with the Land (Restrictions on Alienation) Act and Central Bank rules.
*Always engage a qualified attorney to perform due diligence and ensure full legal compliance.
*Using inward remittance is essential for both legality and future repatriation.
Chathuranga Bandara, Attorney at Law
How to Incorporate a Company in Sri Lanka
Step 1: Reserve the Company Name
• Check the availability of your desired company name on the Department of Registrar of Companies (ROC) website.
• Submit a Name Reservation Application (Form A16) online.
• Pay the applicable name reservation fee.
• Once approved, the name is reserved for 3 months.
Step 2: Prepare the Required Documents
• Articles of Association (Standard or Customized).
• Form 1: Company Registration Form.
• Form 18: Consent and Certificate of Directors.
• Form 19: Consent and Certificate of Secretaries.
• Copy of National Identity Cards (NIC) or Passports of Directors and Shareholders.
Step 3: Submit Documents to the ROC
• Upload the completed forms and Articles of Association to the ROC online system.
• Pay the registration fees based on the authorized share capital.
Step 4: Obtain the Certificate of Incorporation
• Upon approval, the ROC will issue a Certificate of Incorporation, confirming the company’s legal status.
• The company now exists as a legal entity.
Step 5: Obtain a Tax Identification Number (TIN)
• Apply for a TIN number from the Inland Revenue Department (IRD).
• Submit Form TIN 01 along with a copy of the Certificate of Incorporation and other required documents.
Step 6: Register for VAT & Other Tax Obligations
• If applicable, register for Value Added Tax (VAT) and other relevant tax obligations at the IRD.
Step 7: Open a Corporate Bank Account
• Choose a bank and submit the required documents:
o Certificate of Incorporation.
o Articles of Association.
o Board resolution authorizing the opening of the account.
o KYC (Know Your Customer) details of Directors and Shareholders.
Step 8: Obtain Other Necessary Licenses (if required)
• Depending on the industry, obtain special licenses (e.g., Central Bank license for financial institutions, BOI approval for foreign investments, etc.).
Step 9: Register with the Employees’ Provident Fund (EPF) & Employees’ Trust Fund (ETF)
• If hiring employees, register with the Department of Labour for EPF & ETF contributions.
Step 10: Commence Business Operations
• Ensure compliance with statutory requirements, tax filings, and annual returns.
• Maintain proper financial records and adhere to Sri Lanka’s corporate governance laws.
CB Law Chambers at 30/24, Longden Place, Colombo 07.
How to Get a Divorce in Sri Lanka: A Comprehensive Guide
Divorce is a complex legal process that formally dissolves a marriage, requiring careful legal navigation. In Sri Lanka, the divorce process is governed by a fault-based system, meaning that one party must establish a legally recognized ground for divorce. This article provides a step-by-step guide on how to obtain a divorce in Sri Lanka, ensuring you are well-informed before initiating legal proceedings.
Grounds for Divorce in Sri Lanka
Under Sri Lankan law, marriage can only be dissolved by divorce on one of the following three grounds, as provided in Section 19 of the Marriage Registration Ordinance:
1. Adultery Subsequent to Marriage – The plaintiff must prove that the spouse engaged in sexual intercourse with another person outside of marriage. While direct evidence is rare, courts accept circumstantial evidence that leads to a strong inference of adultery.
2. Malicious Desertion – This occurs when one spouse deliberately abandons the other, thereby repudiating their matrimonial obligations. Malicious desertion can take two forms:
- Direct Malicious Desertion – Where one spouse physically leaves the matrimonial home.
- Constructive Malicious Desertion – Where the innocent spouse is forced to leave due to the misconduct of the other spouse.
3. Incurable Impotency at the Time of Marriage – If a spouse is permanently impotent at the time of marriage and remains unable to consummate the marriage, this constitutes valid grounds for divorce.
Steps to Obtain a Divorce in Sri Lanka
Step 1: Filing for Divorce
A divorce action must be filed in the District Court where either spouse resides. The plaintiff (the party initiating the divorce) must submit a Plaint (formal legal complaint), outlining the grounds for divorce.
Step 2: Serving Summons
Once the case is filed, the court will issue summons to the defendant (the spouse being sued for divorce). The defendant is required to appear in court personally or through legal representation.
Step 3: Answer and Trial Process
- If the defendant contests the allegations, they must file an Answer refuting the claims.
- The case will then proceed to trial, where both parties will present evidence to support their case.
- If adultery is the ground for divorce, the alleged third party (adulterer) can be named as a co-defendant in the case and may be required to pay costs if found guilty.
Step 4: Issuance of Decree Nisi
If the court is satisfied that the plaintiff has established valid grounds for divorce, it will issue a Decree Nisi, which is a provisional order for divorce.
Step 5: Mandatory Waiting Period
After the issuance of the Decree Nisi, there is a mandatory three-month waiting period before the divorce is finalized.
Step 6: Issuance of Decree Absolute
Once the three-month waiting period has passed, the plaintiff may apply for a Decree Absolute, which officially dissolves the marriage.
Contested vs. Uncontested Divorce
- Contested Divorce: If the defendant disputes the grounds for divorce, the case can become lengthy, requiring multiple hearings and extensive evidence.
- Uncontested Divorce: If both parties agree to the divorce, they may choose not to contest the case. While mutual consent is not a legal ground for divorce in Sri Lanka, an uncontested case can be resolved faster, sometimes within a few days.
Judicial Separation vs. Divorce
- Judicial Separation: is a legal status where spouses live apart but remain legally married. A judicial separation can be converted into a divorce after two years.
- Separation of Seven Years: If a couple has been separated for seven years, one spouse may apply for divorce on this basis, provided a valid matrimonial fault is established.
Divorce Under Muslim Law
For Muslims in Sri Lanka, divorce is governed by the Muslim Marriage and Divorce Act No. 13 of 1951. Divorce cases among Muslims are handled by the Quazi Court, with appeals heard by the Board of Quazis and ultimately the Supreme Court.
Child Custody, Alimony & Property Rights
During the divorce proceedings, the court may also rule on matters related to:
- Child Custody – Courts prioritize the child’s best interests.
- Alimony & Maintenance – Financial support for a spouse or children may be ordered.
- Division of Property – Depending on the marriage regime and ownership structure, assets may be divided accordingly.
Can You Get a Divorce While Living Abroad?
Yes, individuals residing outside Sri Lanka can file for divorce in a Sri Lankan court, provided they appoint a legal representative to handle proceedings on their behalf.
Appealing a Divorce Judgment
A party dissatisfied with the divorce judgment can appeal to the Court of Appeal and, subsequently, to the Supreme Court.
How Long Does the Divorce Process Take?
- Uncontested divorce: 3 to 6 months (including waiting period).
- Contested divorce: 6 months to several years, depending on the complexity of the case and court backlog.
Conclusion
Divorce in Sri Lanka is a structured legal process that requires proof of fault. Whether seeking an amicable separation or contesting a case, understanding the legal framework ensures a smoother process.
A Guide to Buying Property in Sri Lanka: Key Considerations and Legal Insights
A Step-by-Step Guide to Buying Property in Sri Lanka: Key Considerations and Legal Insights
Purchasing property in Sri Lanka can be a rewarding investment, whether for residential, commercial, or holiday purposes. However, navigating the legal framework and understanding the key considerations involved are crucial to ensuring a smooth transaction. This guide provides a step-by-step approach to buying property in Sri Lanka, along with essential legal insights.
Step 1: Identify the Right Property
Before beginning the legal process, conduct thorough research to find a property that meets your needs. Consider:
- Location and accessibility
- Purpose (residential, commercial, or investment)
- Market value and future appreciation
- Infrastructure and amenities
Step 2: Verify Ownership and Title Deed
Once you have identified a property, verify its ownership and legal status by checking the Title Deed. Key aspects to consider:
- Ensure the seller has a clear and marketable title
- Verify if there are any encumbrances, mortgages, or caveats on the property
- Check if the property has a history of disputes or litigation
Step 3: Conduct a Title Search
A Title Search is essential to confirm the authenticity of the title and uncover any legal issues. This can be done at the Land Registry for the respective district, covering at least the past 30 years.
Step 4: Obtain a Survey Plan
A certified Survey Plan is required to confirm property boundaries. The survey plan should be:
- Certified by a Licensed Surveyor
- Free from disputes regarding land demarcation
- Up to date with recent amendments or subdivisions
Step 5: Obtain a Clearance Certificate
The seller must provide a Non-Vesting Certificate (NVC) or a Certificate of Conformity (COC) (if applicable) to ensure compliance with local authority regulations. This helps confirm that the property is not under any government acquisition.
Step 6: Enter into a Sale Agreement
Once all verifications are complete, a Sale Agreement (also called an Agreement to Sell) is drafted and signed. This includes:
- Sale price and payment terms
- Obligations of buyer and seller
- Timelines for the final transfer
- Legal repercussions in case of default
Step 7: Obtain Approvals from Local Authorities
Certain properties, especially those under state leasehold, require approval from local authorities such as:
- Urban Development Authority (UDA)
- Municipal Council or Pradeshiya Sabha
- Coastal Conservation Department (if applicable)
Step 8: Pay Stamp Duty & Registration Fees
Before executing the final deed, you must pay the required Stamp Duty, which varies based on property value:
- 3% on the first LKR 100,000
- 4% on any amount exceeding LKR 100,000 Additionally, notary fees and registration fees apply.
Step 9: Execute the Deed of Transfer
The final transfer of property occurs through the Deed of Transfer, which must be:
- Prepared and attested by a Notary Public
- Signed by both parties and two witnesses
- Registered at the Land Registry
Step 10: Obtain Possession and Update Records
Once registered, the buyer should:
- Obtain physical possession of the property
- Update ownership details with the local Municipal Council or Pradeshiya Sabha
- Ensure transfer of utility bills and tax records
Legal Considerations for Foreign Buyers
Foreigners can buy apartments above the 4th floor but cannot directly own freehold land. However, they can:
- Enter into a 99-year lease agreement
- Purchase property through a Sri Lankan-registered company
Conclusion
Buying property in Sri Lanka requires careful due diligence, legal verifications, and compliance with local regulations. Engaging a qualified lawyer is essential to navigating the legal process smoothly and securing your investment