The consent of the Controller of Exchange is required in the event of any transfer of property by a non-resident. Persons who are deemed to be non-residents are defined in Gazette No. 15007, dated April 21, 1972 and published under the provisions of the Exchange Control Act. Consent is required for:
• The parties to proceed with the sale of the property and to make payment to a non-resident
• The non-resident who received payment to remit the proceeds out of Sri Lanka
As a result of recent relaxation in exchange control regulations, general permission has been granted to Sri Lankan resident buyers to make payments to non-residents of Sri Lankan origin in respect of the purchase of a real estate. However, nonresidents are still required to obtain consent for the remittance of the sale proceeds outside of Sri Lanka.
If a non-resident sells or transfers an immovable property in Sri Lanka, the proceeds of such a sale would not be remittable in full. The non-resident would be permitted to remit the proceeds
to the extent of the amount brought into Sri Lanka by way of inward remittances at the time of the non-resident’s purchase of that property.
In the case of Sri Lankan emigrants, in accordance with the current rules and with the consent of the Controller of Exchange, an initial remittance of USD 150,000 (LKR 20 million) is permitted, followed by a subsequent remittance of USD 20,000 (LKR 2.7 million) annually.
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