Colombo, the capital of Sri Lanka, has a lot to offer, but which part of the city is best to live in?

Congratulations! Colombo is a good choice for your new home. Sri Lanka is becoming increasingly popular, both with Sri Lankans who have returned to their home country as expats (which is now more prosperous) and with international expats. We are here to help you find out which area is best suited for your new adventure in Sri Lanka's capital.

Colombo 3, Kollupitiya
With its diverse population and its many restaurants and entertainment possibilities, there is always something to do in Kollupitiya that is fun. It is an excellent choice if you are on budget. As one of the most popular areas of Colombia, it is sought after for both commercial and residential properties.

Many financial and government institutions are based here. So if you live and work in Colombo, chances are that you will be close to the office, which is great if you want to avoid commuting.

There are many fine hotels in the area, including the Cinnamon Grand, Hotel Renuka and the Indra Regent. You will also find some great bars, clubs and grocery stores in this district. There are three upscale shopping malls, including Liberty Plaza and the adjacent Liberty Arcade and Crescat Boulevard. Our offer includes a number of attractive properties in Kollupitiya.

There are a number of three-bedroom rental apartments for LKR 175,000 per month, but more luxurious rental apartments can cost up to 350,000 or more per month, depending on size and location. For example, if you want to buy a property, this three-bedroom apartment will sell for LKR 160 million. The apartments for sale are between LKR 16 and 40 million. Take a look at our offers and we are sure that there is something that suits you.

Colombo 4, Bambalapitiya
This suburb is lively, busy and a popular place for visitors to the city. Again, prices are quite high, but the area is safe and close to all amenities. The district's main shopping center, Majestic City, is a great attraction for tourists and locals alike. Within this mall there are a number of different retail outlets and several cinemas.

There are numerous restaurants, casinos and other entertainment facilities for all tastes in the district. The west side of the suburb is located directly on the Indian Ocean. The historic area is famous for its private sector educational institutions, including several institutions specializing in information technology education, the Holy Family Convent Girls' School and the prestigious Colombo Hindu College.

The proximity of the districts to these institutions makes it very suitable for families. A large family home in Bambalapitiya, such as this five-bedroom house near the main shopping centre, is on the market for LKR 175 million. However, apartments are much more common in our offerings and prices range from LKR 20 to 40 million.

Colombo 7, Cinnamon Gardens
Cinnamon Gardens is a high class district and is located about 3 km from the city centre. Properties in Cinnamon Gardens are generally more luxurious, which is why prices are on average higher than in Colombo 3 and 4. As far as houses for rent are concerned, this impressive 5 bedroom property has recently been put up for rent and would be an ideal location in Cinnamon Gardens at a good price.

The apartments for sale in Colombo 7 range from LKR 140 million for a luxury home to LKR 20 million for a more modest apartment. To buy a large house in this area, one would normally need to have a considerable amount of money. This amazing villa, for example on the market for LKR 335 million, will take your breath away.

Many government buildings, including the town hall, are located in this area, and the Sri Lanka National Museum, the largest in the country, is also located in this district. The area is multi-religious, with Sinhalese and Tamils living side by side. There are many villas in the neighbourhood and the streets are beautiful and lined with trees. Centuries ago cinnamon was grown in this part of Sri Lanka. Today it is home to the beautiful University of Colombo and many wealthy individuals.

Colombo does not have to be expensive, because areas like Wattala and Battaramulla are more affordable. You will love living in the capital of this spectacular country and even if you have just bought a holiday home in this city, you will have so many memories that will stay forever.

You May Also Want to Read: Inheritance Tax and Inheritance Law in Sri Lanka

The Teardrop Island Sri Lanka is known for its lush tea plantations, exciting wildlife and tropical beaches, but also for its wonderful cities. Most of Sri Lanka's cities combine an exciting mix of European and local heritage and are full of historical treasures and fascinating cultures. Here is our list of the best cities to visit during your luxury holiday in Sri Lanka.

Colombo

The gateway to Sri Lanka's tear gland island, Colombo, is a melting pot of cultures and boasts a rich colonial heritage. Often overlooked in the past, Colombo is now a destination in its own right and offers the perfect start or destination for any Sri Lankan itinerary. Traditionally, the city served as a major port on the old east-west trade route, and Colombo's architecture reflects its Portuguese, Dutch and British roots by blending colonial buildings and churches with modern shopping malls and skyscrapers. This cosmopolitan city is home to a number of must-see attractions, including the Buddha-lined Gangaramaya Temple, the impressive red mosque of Jami Ul-Alfar and the picturesque Lake Beira. A trip to Colombo is not complete without a visit to Pettah, a district with a bustling open-air market. Immerse yourself in the sights, sounds and smells of the bazaar, which is filled with colourful silk fabrics, fragrant spices and tempting street food.

Anuradhapura

Anuradhapura, one of the ancient capitals of Sri Lanka, is one of the oldest continuously inhabited cities in the world. Chosen by King Pandukabhaya in the 4th century as the capital of the Sinhala people, Anuradhapura was one of the most important cities in Asia with its powerful dagobas, many temples and prosperous monastery complexes. Today the city is a UNESCO World Heritage Site and is famous for its rich collection of archaeological wonders and well-preserved ruins. One of the city's most famous landmarks is the Abhayagiri Dagoba. This stupa made of terracotta with beautiful carvings and an octagonal spire dates from the 1st century and was once one of the most colossal buildings of the ancient world (together with the pyramids of Giza). Another place of great importance is Mihintale, which is believed to be the birthplace of Buddhism in Sri Lanka. Today a place of pilgrimage, climb the summit to remarkable dagobas and on the way there you will pass shimmering pools, old monastery ruins and rock inscriptions.

Gall

The city of Galle is located on the southwest coast of Sri Lanka and is especially famous for its UNESCO listed fort and old town. It is a must see when visiting the south of Sri Lanka and many visitors stay in the beautiful historic buildings while exploring the city. The charming jewel of Galle, which was settled by the Dutch, Portuguese and British, is one of the best examples of a fortified city built by Europeans in Asia, which has been sympathetically preserved to this day. The exotic trading port and the old town offer beautiful buildings from the Dutch colonial period, old mosques and churches and the famous lighthouse overlooking the turquoise ocean. However, it is not only the beauty and interesting architecture of Galle that attracts visitors, many travellers are seduced by the seductive atmosphere of the city. Stroll through the picturesque cobblestone streets to soak up the atmosphere of the stylish cafes and charming boutiques, or look for some vintage items at the Galle Fort flea market every Sunday.

Kandy

Kandy, the capital of the Sri Lankan hill country, is one of the most important cultural and religious centres of the country. This beautiful city is situated on a plateau surrounded by emerald green mountains and stretches around the picturesque Kandy Lake. Probably the most famous reason to visit Kandy is the encounter with the revered tooth temple, where the Buddha's tooth relic is kept. Although you can't actually see the tooth, it is worth a walk to the beautiful temples and shrines. Also the botanical garden of Peradeniya, a former royal pleasure garden, is a must. It contains over 4,000 species and is one of the most beautiful botanical gardens on the subcontinent. Culturally Kandy has a lot to offer: daily traditional dance and music performances, fantastic street food and the home of the great annual Buddhist festival Esala Perahera; a spectacle of musicians, jugglers, dancers, fire-eaters and lavishly decorated elephants.

Nuwara Eliya

The colonial Nuwara Eliya mountain station from the 19th century, dotted with English country houses, mock Tudor buildings and fairly well-kept gardens, was a popular summer retreat for the British during their rule. Nuwara Eliya in the Central Province lies 2,000 metres above sea level and is often shrouded in mist. The temperate, cool climate provides ideal conditions for tea cultivation and is one of the best destinations in Sri Lanka for exploring the vast and beautiful tea plantations. Nuwara Eliya is also close to the Horton Plains National Park, which is home to lush cloud forest and endemic plants and animals. Take a hike to the dramatically situated World's End; this hike offers some of the most beautiful and expansive views in Sri Lanka. Within the city of Nuwara, Eliya takes a boat trip on the picturesque Gregory Lake, strolls through Victoria Park or explores the beautifully tended gardens full of roses and orchids at the Hakgala Botanical Garden.

Trincomalee

One of the earliest Indo-Tamil settlements in Sri Lanka, the beginning of the colonial period and the magnificent natural harbour of Trincomalee made this port city one of the political and economic powerhouses of the subcontinent. Situated on the northeast coast of Sri Lanka, Trincomalee is surrounded by beautiful Indian Ocean beaches such as Uppuveli and Nilaveli, where visitors normally flock, but it is worth spending time in this charming and historic town beforehand. The colourful and medieval Hindi temple of Kandasamy Kovil, dedicated to Shiva and standing on the Swami Rock cliff, is a highlight of Trincomalee and also a great place to watch blue whales migrating through the Sapphire Ocean. Other places of interest include Fort Frederick, a fort built by the Portuguese in the 17th century, the revered Lover's Leap cliff point and the vibrant Pathitakali temple of Amman.

Polonnaruwa

The spectacular city of Polonnaruwa, which is not technically a modern city, is on this list as a royal ancient city in Sri Lanka. Declared a World Heritage Site by UNESCO, this centre is a treasure trove of wonderful archaeological remains that give visitors a good idea of what the city looked like in its heyday. The square alone is reason enough to visit Polonnaruwa and it is one of the most beautiful collections of antique buildings in Sri Lanka. The various temples and ruins are elaborately decorated with columns, steps and religious carvings. The Gal Vihara Buddha figures are another highlight in this ancient city. The site consists of four statues, all carved from the same granite slab; these Buddhas are considered the pinnacle of Sri Lankan rock carving. Also worth mentioning is the white Kiri Vihara Dagoba, which was built in the 6th century for the queen of kings. Discovered by archaeologists after 700 years of neglect in the jungle, the original white lime plaster of the stuba was still in perfect condition and should be a must on every Polonnaruwa tour.

Jaffna

Located at the northern tip of Sri Lanka, Jaffna was closed to foreign visitors until 2010 due to the civil war. The city is slowly reopening to tourism, but is currently still very off the beaten track and offers an interesting alternative to the busy south. Historically, Jaffna was built as a port by the Portuguese and was lost to the Dutch, who then lost it to the British in 1796. After independence, the Tamils and Sinhalese fought over the city. Today Jaffna is still a stronghold of Hindu-Tamil culture and this has shaped the composition of the city and the surrounding region. A special highlight in Jaffna is the colourful Kandaswamy Temple, one of the most important Hindu temple complexes on the island, probably dating from the 10th century. Other sights of the city include the somewhat dilapidated Jaffna Fort, one of the oldest and largest in Sri Lanka, the interesting archaeological museum, St. Mary's Cathedral and St. James Church.

Batticaloa

The historic Batticaloa on the east coast is one of the lesser known cities of the island after years of isolation and turbulence during the civil war. During this period, Batticaloa and the surrounding area was a stronghold for the LTTE and one of the most dangerous places in Sri Lanka at that time. Since the end of the civil war, Batticaloa's gentle vibrations and magical location have made it a very pleasant place to visit and a refreshing change from the busy cities on the west coast of Sri Lanka. Overlooking the sparkling Batticaloa lagoon and the Indian Ocean, the piece of land that makes up Batticaloa offers a spectacular backdrop. Within the town there are some wonderful sights and attractions to visit, such as the old Dutch fort, the Batticaloa lighthouse and the interesting Kattankudy Heritage Museum, as well as learning about its fascinating yet grim history. Beach lovers should head 30 minutes north of Batticaloa to the jewels of the east coast, Passikudah and Kalkudah, where you will find numerous bathing spots, palm-fringed coves and a wealth of excellent seafood restaurants.

Negombo

Just an hour's drive north of Colombo, Negombo is a large and important town in Sri Lanka with a picturesque beach popular with locals and visitors alike. Due to its proximity to the international airport, it is a popular area for travellers to rest, relax and acclimatise after their long distance flight before setting off to explore Sri Lanka. Although mainly a transit destination, Negombo offers beautiful architecture and a charming ambience that is well worth exploring. The town's heritage is still visible everywhere, including the remains of a 17th century Dutch fortress lining the harbour area, pastel coloured Portuguese Catholic churches and impressive Buddhist temples and murals. Negombo is also home to a lush large lagoon, surrounded by mangroves, coconut groves and rice fields. It is an important fishing site that supplies the fish market of Negombo, one of the largest in Sri Lanka. Negombo Beach is another highlight; stroll along the shore, swap in the handicraft souvenir shops and relax on the golden sand beach. Enjoy spectacular sunsets in the evening and discover the myriad beach restaurants and live music bars that pepper the promenade.

Ratnapura

Known as the "City of Gemstones", Ratnapura is the gateway to Sri Lanka's hilly country, where you will pass emerald rice fields, extensive tea plantations and working rubber plantations. Perhaps most famous for its wealth of gemstones, Ratnapura has a rich history of mining some of the world's most precious stones. Here you have the opportunity to visit the Gemstone Museum or explore some of the region's gemstone workshops or mines, where you can see different coloured jewels and learn about the history and methodology of the industry. Ratnapura is also a good starting point to tackle the ascending peak of Adam's Peak. This impressive natural monument with a height of 2,243 m is shrouded in mystery and legend has it that the footprint of Buddha himself is on the summit. No wonder it is one of the most famous pilgrimage sites in Sri Lanka.

Where Can You Buy Property in Sri Lanka?

Sri Lanka, a drop of tears from an island off the coast of India, has been plagued by civil war and natural disasters for years. But now it is about to enter a new, peaceful era. With the end of two decades of civil war and the victory of the government troops over the rebellious Tamil Tigers, foreigners are taking a closer look at this beautiful island again.

For a small country Sri Lanka has an amazing natural diversity. It is a tropical island, but the hilly interior with its waterfalls and green tea plantations can be a quick escape from the heat of the coastal plains. With attractions such as the Sinharaja Rainforest, Sri Lanka is also an ecotourist's paradise.

The country has distinct dry and rainy seasons with two monsoons. The Yala monsoon brings rain to the southwestern half of the country from May to August, followed by the dry season from December to March. The Maha monsoon is active in the northern and eastern parts of the country from October to January, followed by the dry season from May to December. There is also an inter-monsoon season in October and November, when it can rain in many places.

This also means that there is always the right weather along the coast to enjoy the beaches. Sri Lanka has several popular beach resorts and dive sites. Sri Lanka was hit hard by the tsunami on Boxing Day 2004, but the country is still on the road to recovery and reconstruction.

Stupas and colossal stone buildings all over the island bear witness to Sri Lanka's long and rich history spanning 2,000 years. Its huge neighbour, India, has had a major influence on life on the island. Over time, many kingdoms have sprung up, flourished and died in places like Colombo, Polonnaruwa, Sigiriya, Anuradhapura and Kandy.

The first Europeans to reach the country were the Portuguese in 1505, who named the island Ceilão, established a trading post and built a fortress near the old natural harbour of Colombo. The Singhalese moved their capital to Kandy in the interior of the country, as it could be better defended. The Portuguese were followed by the Dutch, who managed to gain control of the island with the exception of the kingdom of Kandy.

In 1659 a British ship was forced to land in Ceylon (as it was then called). The crew was imprisoned by the King of Kandyan and forced to live on the island. One of the sailors, Robert Knox, managed to escape after having lived on the island for two decades. On the way back to England he wrote a report about his stay. The book drew the attention of the British to the island.

In 1802 the Dutch part of the island was formally ceded to Britain and Ceylon became a British Crown Colony. In 1803 the British invaded Kandy, but were beaten back in the first Kandyan War. However, Kandy was under British control until 1815 and finally ended Sri Lanka's independence by 1948.

There were repeated tensions between the majority population of the country, the Buddhist Singhalese and the Hindu Tamils, who are in the minority. The feeling of alienation and distrust between the communities led to the outbreak of civil war in 1983 between the government and militant Tamil groups led by the Liberation Tigers of Tamil Ealem (LTTE). The war ended in early 2009 with the death of LTTE leader Prabhakaran.

As Sri Lanka is limping on the road to normality, there is an unprecedented opportunity for the discerning real estate buyer to get an early start on one of South Asia's most promising tourist destinations.

Use GetMyLand.com to choose the best Land and Property for you from Sri Lanka. Find the best properties for sale or rent in Sri Lanka only on GetMyLand.com, To get the best deals on property prices and locations, visit us now!

The Global Property Guide looks at inheritance from two angles: taxation and the question of what inheritance laws apply to foreigners who leave property in Sri Lanka: what restrictions there are and whether it is advisable to make a will.

Inheritance Tax

How high are the inheritance taxes in Sri Lanka?

No inheritance tax is payable on the estate of a person who dies on or after 13 November 1985. However, administration of the estate is compulsory if the value of the estate is LKR 500,000 (USD 3,448) or more or if the testator has left a will.

Which law of succession applies in Sri Lanka?

The law of succession in Sri Lanka concerns everyone who owns real estate in Sri Lanka.
Sri Lanka has special laws for Muslims, including foreigners. All other persons, including foreigners, are subject to the provisions of the law enacted in Sri Lanka.

The main laws that apply to inheritance matters are:

• The Regulation on matrimonial rights and succession
• The Muslim Succession Ordinance
• The Last Will and Testament Ordinance
• The Regulation on the prevention of fraud
• The Roman-Dutch Law
• The Mohammedan Law

Real estate (landed property). The general principle regarding jurisdiction over immovable property (real estate) in Sri Lanka is that the law of succession is governed by Sri Lankan law. The national law of a foreigner is not applicable to the inheritance of immovable property located in Sri Lanka.

Movable property. The inheritance of movable property is subject to the law of the country in which the deceased owner had his residence (place of stay) at the time of his death.

With regard to Muslim foreigners owning property in Sri Lanka, the Muslim Intestate Succession Ordinance states that the law applicable to the inactivity of a deceased Muslim who was resident in Sri Lanka or owned property in Sri Lanka at the time of death is the Muslim law of the sect to which the deceased Muslim belonged.

If Sri Lankan citizens own immovable property abroad, the law of the country where the property is located is recognised by Sri Lankan courts as the applicable law of succession. With regard to movable property, Sri Lankan law has recognised the law of the country of residence as the applicable law.

Inheritance matters are dealt with in Sri Lanka by the competent district court

Decisions concerning the assets of non-resident foreigners are primarily made by this court. Inheritance cases usually last between six months and two years.

The Code of Civil Procedure (S.554U) provides that in cases where a probate court or other authority in a foreign country has granted an estate or administrative writings in respect of the estate of a deceased person, upon presentation and deposit of a copy thereof with a competent court, the estate or the writings so granted shall be sealed with the seal of that court and thereafter shall come into force in Sri Lanka and shall have the same effect as if they had been granted by that court.

There is no reserved portion for non-Muslims

As far as Muslims are concerned, the reserved portion is based on the principles of Muslim law of the sect to which the deceased belonged.

Intestacy

For non-Muslims, in the absence of a will, the entire estate goes to the heirs listed in Part III of the Regulation on Matrimonial Rights and Inheritance.

In the case of immovable property, the surviving spouse inherits half of the estate. Children, grandchildren and more remote descendants are preferred to all others. All children take the same amount per capita, but their children or more distant descendants of a deceased child take per scholarship or by proxy.

If there is none of these designated heirs, the estate falls to the state. However, if any heirs can be found, even beyond the tenth degree, they take the inheritance.

In all matters relating to the testamentary distribution of the estate, if the Regulation is silent, the rules of Roman-Dutch law apply. These rules apply to all deceased persons holding immovable property in Sri Lanka (except Muslims), regardless of their actual or marital residence at the time of death.

In respect of movable property, the inheritance ab intestato is subject to and governed by the law of the country in which he/she was resident at the time of his/her death.

It is advisable for a foreigner to make a local will

For Sri Lankans with immovable property, it is normal to make a will to bequeath the estate in a different way than under the provisions of the law of legal succession.

The Last Will and Testament Ordinance provides that it is lawful for persons authorised to make a will to dispose of property within Sri Lanka which belongs to him/her at the time of death and in exercising this right he/she has full power to exclude children, parents, relatives or descendants from the lawful or other part or to disinherit or not to mention these persons.

This provision of the law is not limited to Sri Lankans. By making a will in Sri Lanka, foreigners can avoid disputes among their heirs. The validity of the local will is determined by Sri Lankan law and not by the law of the foreigner's nationality or residence at the time of death.

The formalities for drawing up a will are set out in the Regulation for the Prevention of Fraud, which deals with wills made in Sri Lanka.

A foreign testator must be present in Sri Lanka when drawing up a will under this Ordinance. This cannot be done by a lawyer. The Ordinance states that the will must be in writing and signed at the foot or at the end of the will by the testator or by another person in his or her presence and on his or her instructions, and this signature must be made or certified by the testator in the presence of a licensed civil law notary and two or more witnesses who must be present at the same time to witness the execution properly.

If no civil law notary is present, the signature must be made or certified by the testator in the presence of five or more witnesses who must be present simultaneously, and these witnesses must sign the will in the presence of the testator, although no form of certification is required.

Foreigners' wills made outside Sri Lanka will be recognised and enforced by the Sri Lankan courts in relation to property in Sri Lanka. Section 5 of the Testament Ordinance states that any will made outside Sri Lanka which contains any disposition or disposal of immovable property situated within Sri Lanka and which has been duly drawn up and enforced in accordance with the forms and ceremonies prescribed by the law of the country where the will is drawn up and enforced by a person empowered to make such a will under the law of that country or Sri Lanka is valid and effective, notwithstanding any other law or practice to the contrary.

Property may be freely given by the owner to anyone before his death

There are no restrictions on such gifts regarding family residence, time frame, etc. In the case of non-Muslim foreigners, the validity of the deed of gift is determined by Roman-Dutch law. In the case of Muslims, the validity of the deed of gift is determined by the Muslim law of the sect to which the deceased belonged. If the deed of gift is executed in accordance with the applicable laws, it cannot be contested after death.

With regard to donations made by foreigners who are Muslims, the law applicable to donations (without usufruct or trusts) is the Muslim law of the sect to which the donor belongs; however, no deed of donation is considered irrevocable if this is not indicated in the deed. The handing over of the deed to the donee is considered as proof of the transfer of possession of the movable or immovable property donated by this deed.

Sri Lankan law recognises the concept of "just property" as set out in the Trusts Ordinance

Under the law of trusts, the trustee is the rightful owner and the beneficiary is the rightful owner. With respect to real estate located in Sri Lanka, the courts of Sri Lanka apply Sri Lankan law to determine ownership. In the first instance, the courts look at the title deeds to determine ownership. According to the statute of limitations, the title under the deeds can be replaced by an adverse title of ownership.

A guardian or curator protects the rights of children

If an estate (or part of it) is inherited by a child or other minor (18 years of age), a person named in the will as guardian or curator is entitled to exercise this function, unless the court objects to his or her suitability. If no such person is named in the will, the court is entitled to appoint a suitable person.

No law prohibits foreigners from inheriting property in Sri Lanka.
However, the Finance Act No. 11 of 1963 provides that if ownership of a property is transferred to a person who is not a citizen of Sri Lanka, a tax will be levied at the value of the property. This provision of the law does not apply to a transfer of ownership resulting therefrom:

• Intestacy
• A gift or testamentary disposition by a person to his or her spouse, child, parent, brother or sister and the issue of such child, brother or sister to a person who is not a citizen of Sri Lanka; or
• The succession of a person as trustee to a person appointed as trustee on the basis of a will or trust instrument or a pension fund or investment.

Sri Lankan law is per landlord for properties not covered by the rental law. Otherwise, it's pro-tenant.
The difference between a rental contract and a monthly lease is important in Sri Lanka. The term "rental agreement" has a slightly different meaning than is usual elsewhere, as it means that the use of one property for rent for successive periods is subcontracted to another. Tenancies can be terminated by landlords with one month's notice without giving reasons, which may be followed by an action for eviction, unless the premises are protected by the Rental Act (see below). Rental agreements are not subject to stamp tax, unlike rental agreements which are stamped with 1% of the total rent for the expired term.
However, a lease is common for high quality, fixed term contracts as it provides more security of ownership and duration. A rental agreement must be concluded by means of a deed signed in the presence of two witnesses and a notary public and registered at the land registry. Leases, such as rental agreements, may contain other terms and conditions that the parties may agree upon.

Rent: Can landlords and tenants in Sri Lanka agree on rentals freely?

If the premises, whether rented or leased, are not covered by the Rental Act (see next paragraph), there is no restriction as to the amount of rent that can be agreed between the landlord and the tenant or between the landlord and the tenant.

The rental law applies to all premises that are OTHER:

• Residential premises occupied by the owner on 1 January 1980 and rented out on or after that date;
• Living quarters in the occupation of:
  (i) a person who has been issued a valid visa under the Immigration and Emigration Act and whose total income exceeds one thousand rupees per month; or

(ii) a non-resident enterprise, unless the accommodation was rented out before 12 December 1980, in which case the exemption from the Rental Act is subject to certain conditions, including an exemption from the provisions of the Act granted by the Commissioner for National Housing

• Dellings built after 1 January 1980 and rented on or after that date.
• Exempt premises, which includes all premises in specified areas where the annual value of such premises, as stated in the tax assessment, exceeds certain prescribed amounts, and premises where the lessor is a company registered under the Companies Act No 17 of 1982

If the premises are covered by the Rental Act, Section 4 prescribes 'the standard rent to be paid' and Section 5 provides for certain permissible increases. The sum of the standard rent and each permitted increase is the "approved rent". It is an offence to pay, demand or receive an amount in excess of the approved rent.

Security deposit

If the premises, whether rented on a rental basis or rented monthly, are not covered by the rental law, the amount of the deposit is freely negotiable between the landlord and the tenant.

If the premises are regulated by the rental law, no one may demand, receive or pay or offer to pay for premises as a condition for the granting, renewal or continuation of the lease:

• As an advance on rent, any amount exceeding the approved rent or, where applicable, the rent to be demanded, for a period of three months
• Any premium, commission, gratuity or other similar payment in addition to the rent of such premises

What are the rights of landlords and tenants in Sri Lanka, especially with regard to the duration of the contract and eviction?

Rental agreements usually do not have a fixed term. A monthly lease (which is normal) can be terminated at will by either party with one month's notice, and rent is usually paid monthly.

Where the Rental Act applies, the law weighs heavily in favour of tenants, who can terminate a monthly lease at any time by giving one month's notice, while the landlord can only do so for the reasons set out in the Act, which include the following:

• The rent is in arrears for a period of more than one month. The premises are used by the tenant for immoral or illegal purposes.
• The premises are being used in a way that leads to significant deterioration.

An amendment to the rental law in 2002 introduced several new grounds.

After the termination of a monthly rental or lease, an action for eviction becomes necessary if the tenant or lessee does not leave the premises as required by the notice of termination.

In the case of a rental agreement for premises not covered by the Rental Act, there is no restriction on the period of notice which the parties may agree, either with regard to termination by the landlord or the tenant. And unless one of the parties breaches the terms, commitments or obligations or the lease itself provides for termination, the lease cannot be terminated by either party without the consent of the other party.

A rental agreement for a certain period of time should be concluded by a notarially certified deed. If it is not carried out in this way, it will amount to a monthly lease and can be terminated by either party with one month's notice.

TENANCIES AND LEASE AGREEMENTS - THE DIFFERENCE

The difference between a rental and a lease contract is important in Sri Lanka:

Lease
The concept of the lease is recognised in Sri Lanka's common law (the Roman-Dutch law). Case law has recognised a valid lease agreement as a pro tanto sale of the land by the landlord for the duration or period of the lease agreement, and the lease of property is the surest means of securing the right to own, use and enjoy another's property in all cases, except where the rental law applies.

The parties to a rental agreement are generally free to agree on the terms they consider appropriate to be included in the rental agreement, subject to the provisions of the rental law, if applicable.

In general, a rental agreement provides for the following points:

• Term of the rental contract) Security deposit) Rent and how and when to pay it) Responsibility for repairs) Responsibility for payment of instalments) Assurances of the tenant) Assurances of the landlord
• Mutual alliances

Certain legal formalities must be observed in the case of rental agreements. The Regulation on the prevention of fraud provides that no promise contract or agreement establishing rights over land (other than a lease at will or for a period not exceeding one month) shall enter into force or be legally enforceable unless in writing, signed in the presence of a notary and two witnesses.

In order to protect the leaseholder with regard to the priority rules contained in the Regulation on the Registration of Deeds, it is necessary for the lease to be duly registered at the Land Registry.

As leases often provide for an annual advance payment of the rent, it is prudent and advisable that before signing the lease, each lessee instructs a lawyer to carry out a search at the relevant land registry office to check whether the property is encumbered or not and whether the property actually belongs to the landlord.
It should be noted that in most cases a tenant or lessee should also request a copy of the certificate of conformity to ensure that the premises can be lawfully used before taking possession of the lost premises.

The Land (Foreigners' Restrictions) Act has set a maximum limit of 99 years for the lease of land to foreigners and also introduced a lease tax for land leased to foreigners.

Tenancy Contracts

Such agreements do not need to be notarised, but should be recorded in writing for evidential purposes.

A lease is an agreement in which one person undertakes to give the use of a property to another person in return for rent for successive periods of time until the lease is terminated by notice from one of the parties. The person who agrees to use the property is called the landlord and the person who promises to pay the rent for the use of the property is the tenant.

A monthly lease can be terminated at will by either party with one month's notice, and rent is usually paid monthly.

A rental agreement generally regulates issues such as the amount of rent, responsibility for repairs and contains obligations on the tenant to take care of the property in a tenant-like manner.

How effective is the Sri Lankan legal system?

The court system works, but there can be considerable delays before a decision is made. Recovery of the unpaid rent will take about nine to twelve months, provided that the summons can be served and the defendant does not use delaying tactics.

It could take a year and a half or more to get a court order for eviction, and up to ten years or more if there is an appeal, as there is a huge backlog of appeals that need to be argued and decided in the appellate courts. This also applies in the case of a temporary rental agreement if the tenant does not leave the premises after the expiry of the rental agreement and legal proceedings for eviction have to be initiated.

Legislation

The Rent Act No 7 of 1972 and its subsequent amendments.

Regulation No 7 of 1840 on the prevention of fraud, as amended.