As enacted

Contents

3. Exemption from the application of the provisions of section 2

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

(1)

The provisions of section 2 shall not apply to—

(a)

any land the title of which is transferred to a

Diplomatic Mission of another State within the

Land (Restrictions on Alienation)

meaning of the Diplomatic Privileges Act or to an

International, Multilateral or Bilateral Orgnization recognized in terms of that Act;

(b)

a condominium parcel situated on or above the fourth floor of a building specified under the

Apartment Ownership Law, (excluding the ground level floor and floors which accommodates only common element or elements within the meaning of Apartment Ownership Law):

Provided that, the entire value shall be paid up front through an inward foreign remittance prior to the execution of the relevant deed of transfer;

(c)

any land the title of which is transferred to a foreign investor in consequent to a decision of the Cabinet of Ministers taken prior to January 1, 2013, involving direct investment of foreign currency, as per the related agreements on such investment structured on the basis of any written law governing the tax regime prior to January 1, 2013, and has ensured compliance by making inward remittances to Sri Lanka;

(d)

any land the title of which is transferred by intestacy, gift or testamentary disposition to a next of kin (who is a foreigner) of the owner of such land, in accordance with the applicable law of succession of Sri Lanka;

(e)

any land the title of which is transferred to a dual citizen of Sri Lanka within the meaning of the

Citizenship Act;

(f)

any land the title of which is transferred to any bank licensed under the Banking Act, in which any foreign shareholing is fifty per cent or above—

(i)

at an auction conducted by such Bank in terms of the Recovery of Loans by Banks

(Special Provisions) Act, No. 4 of 1990 or

Mortgage Act (Chapter 89), in the discharge of a mortgage of such land to such Bank;

(ii)

in execution of a decree of court to enforce the recovery of a loan given by such bank;

(g)

any land the title of which is transferred to any

Finance Leasing Institution in which any foreign shareholding is fifty per cent or above—

(i)

where such land has been mortgaged to such

Finance Leasing Institution as a security for a lease;

(ii)

in order to execute a lease and an agreement to sell or a loan and an agreement to sell;

(iii)

in execution of a decree of court to enforce the recovery of a loan given by such

Institution;

(h)

any land, the title of which was transferred to a company referred to in section 2(1)(b), during the period commencing from January1, 2013 and ending on the date on which the certificate of the speaker is endorsed in respect of this Act, provided such company has been in active operation in Sri

Lanka for a period of not less than ten (10)

consecutive years prior to the date of transfer of such land.

(2)

The Minister may in consultation with the Minister to whom the subject of lands has been assigned and with the prior written approval of the Cabinet of Ministers, by Order publidhed in the Gazette, exempt any foreign entity engaged in the banking, financial, insurance, maritime, aviation, advanced technology or infrastructure development project identified as a Strategic Development Project, in terms of the provisions of the Strategic Development Projects Act, No. 14

of 2008, from the application of the provisions of section 2.

Land (Restrictions on Alienation)

(3)

The Minister may in consultation with the Minister to whom the subject of Lands has been assigned and with the prior written approval of the Cabinet of Ministers, by Order publidhed in the Gazette, exempt any foreign company engaged in international commercial operations, from the application of the provisions of section 2, where the land is purchased to locate or relocate its global or regional operations or to set up a branch office.

(4)

Where the transfer of title of a land is effected in terms of this section, the provisions of this Act shall also apply to every subsequent transfer of title of such land or part thereof.

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