Sri Lanka

Registering Property in

Sri Lanka

Listed below is a detailed summary of the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute.

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.

  • Standard Property Transfer

  • Property Value: LKR 13,520,709.88
  • City: Colombo

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No. Procedure Time to Complete Associated Costs
* 1 A title search must be carried out at the relevant Land Registry

On receipt of the last title deed and plan from the seller, a title search has to be carried out at the relevant Land Registry. A lawyer/notary engaged by the purchaser has to recommend the title. Good title has to be established for the past 35 years. All deeds and plans have to be checked. If prior deeds are not available with the seller the notary will have to check duplicates of deeds at the Land Registry. If plans are not available, the relevant surveyors would have to be contacted and obtain duplicates of the plans. Other checks must be carried out as well by the lawyer (notary) at the local authority.

Confirmation from the lawyer (notary) should be obtained that the title to the property is clear. On confirmation that the title to the property is clear, step 2 will apply; if not title insurance is recommended, and the next step would be to obtain a policy of title Insurance (procedure 1a). The costs of the search are:
LKR 2.5 in stamps to be affixed to the application
LKR 5 in stamps to be affixed to the application to check the duplicate of a deed
LKR 102.50 to obtain copy of deed which has 4 pages or less. If the deed has more than 4 pages then LKR 22.5 is to be paid for each additional page
LKR 10 for search at the Land Registry
Lawyer fees are additional.

If title insurance is recommended in procedure 1 due to a defect in title, then the next step would be to obtain a Buyer's Policy of Title Insurance to cover defects. This step is optional and contingent to the result of step 1. If the policy is needed, the time necessary to obtain this title will depend on the time taken by the title insurance company to evaluate the title, make a decision to issue or not to issue the title insurance policy and the cost will depend on the premium payable.
Usually title insurance is recommended for the following reasons:
• Prior deeds and documentation not being available and further if the registers at the land registry cannot be traced for 35 years (if the books are damaged).
• If there are any discrepancies in the title deeds and plans.
• If the present owner had owned an undivided share of a larger land, and had sub-divided it without the consent of the other parties or without a Deed of Partition or Partition Plan.

Agency: Land Registry 		3-7 days (simultaneous with procedures 2 and 3) LKR 1,000
* 2 Seller needs to obtain a group of documents from the Municipality

The seller obtains the following documents from the Municipality:
1. The building and street line certificate
2. Certificate of non-vesting
3. Tax receipts in proof of payment of rates and taxes for the last quarter
4. Certificate of conformity in respect of the building
5. Certificate of ownership stating that the seller is the owner of the land and premises


Agency: Municipality 		21 days (simultaneous with procedures 1 and 3) LKR 500
* 3 Obtain an updated survey plan of the property

Obtaining a new updated plan of the land and the building is advisable to ensure that the boundaries on the ground have not changed or if the survey plan is old.
14 days (simultaneous with procedures 1 and 2) About 0.1% of property value
4 Transfer deed is signed in favor of the buyer

The following document with regard to the Selling company must be presented to the buyer’s lawyer/notary for the deed of transfer to be signed in favor of the buyer:

The documents are as follows:
1. Articles of Association of the company
2. Certificate of incorporation of the seller
3. Resolution authorizing the sale of land. If the purchase-sale is a major transaction as defined by section 185 of Companies Act No. 7 of 2007, such a transaction should require the shareholders sanction as well.
The buyer needs to pass a resolution to purchase the property.
On receipt of the above documents the deed of transfer in favor of the purchaser can be signed. Lawyer’s fees are paid by the buyer and will depend on the lawyer (usually 1% of purchase price).

2 days 1% of purchase price (Lawyer’s fees) + LKR 500 additional cost)
5 Payment of stamp duty at a nominated bank

After execution of the deed of transfer stamp duty will have to be paid within 7 days to a nominated state bank in favor of the relevant Provincial Council in which the land is situated.

Agency: State Bank 		1 day Stamp duty payable as follows 3% on the First Rs. 100 000 4% on the Balance
6 Deed is sent for registration to the relevant land registry

After payment of stamp duty, the deed duly attested by the notary, will have to be sent for registration to the relevant land registry. The deed is registered and returned to the notary from the Land Registry.


Agency: Land Registry 		30 - 42 days No cost
7 Name of the buyer must be registered at the Municipality and the certificate of ownership is obtained

The name of the new company will have to be registered as the new owner at the Municipality. The certificate of ownership is obtained from the Municipality on execution of the deed of transfer in favor of the new owner.


Agency: Municipality 		21 days LKR 200
* Takes place simultaneously with another procedure.
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