Cabinet has decided to prohibit the outright transfer of property to foreigners, taking into consideration the increasing demand for foreign investment with the expansion of developmental activities by the Government.
Cabinet approval was granted to make regulations under the State Land Ordinance and to introduce amendments to the Notaries Ordinance and Registration of Documents Ordinance for the implementation of regulations pertaining to state and private lands in the country.
The new regulations will prohibit foreigners from obtaining absolute ownership of state or private lands in Sri Lanka. But the leasing of such lands on a long term lease basis would be permitted.
The prohibition will not apply to the purchasing of lands for foreign embassies and high commissions based in Sri Lanka. The Cabinet memo had been jointly presented by Ministers John Seneviratne and Janaka Bandara Tennakone.