Recent Macro

• GDP contracted -3.6% in 2020, due to the Coronavirus pandemic, but 2021 is forecast to see a recovery of 3.4% growth
  
  
• Sri Lanka ranked 99^th in the World Bank’s Ease of Doing Business Index
  
  
• The Gross Domestic Product per capita in Sri Lanka was last recorded at US$ 3,853 in 2019 – this fell during 2020 but is expected to recover well in 2021
  
  
• GDP per capita in Sri Lanka averaged US$ 1,059 from 1960 until 2019 (source: World Bank)

Key Info

Currency

• Currency of Sri Lanka is the Sri Lankan Rupee (LKR)

Climate

• Tropical and hot climate with distinct wet and dry seasons in the north and east coast and the south and west coast 
  
  
• Coastal areas enjoy temperatures between 28-32°C (82-89°F) while upland areas are cooler and more temperate - yearly average around 16-20°C (60-68°F)
  
  
• South-west wet season is May - September, dry season is December - March
  
  
• North-east wet season is October - January, dry season is May - September

Tax

• Withholding tax is currently 10% for foreigners

Hospitality

• Travel & Tourism in Sri Lanka fell by 17.6% in 2019 to an industry revenue of US$ 3.6bn. This fell again in 2020 to US$ 956m, due to Coronavirus, but is expected to rise quickly in 2021
  
  
• Number of international tourist arrivals to Sri Lanka in 2019 reached 1.9m people, down 16% from 2018
  
  
• The average revenue per user (ARPU) currently sits at US$ 110

• Indian tourists benefit from the geographical distance of Sri Lanka, and account for 18% of all arrivals

Property

• The housing market is experiencing a current boom, amidst a surging tourism sector, coupled with weak residential construction activity
  
  
• House prices grew 17% during 2018 (latest available info)
  
  
• Foreigners may own freehold title on condominium apartments
  
  
• Land can only be leased up to 99 years
  
  
• Stamp duty is 4% and legal fees are around 1-2%
  
  
• VAT on new apartment sales was reduced to 0% in 2020