The safest investment in the country has been threatened by a bureaucratic financial system. In fact, there are numerous factors to consider prior to deciding whether individuals and investors should be liable for this type of taxation.

First off, we should consider prevailing market interest rates in determining if in fact a real-estate transaction is actually a capital gain. Consider a hypothetical scenario in which a 5 year fixed deposit yields 13% per annum.  Suppose during the same time period, a real estate investor holds a property for 5 years and obtains a slightly higher return.

Now think this through: Why should the real-estate investor have to pay tax on the full capital gains income i.e. the selling price minus the purchase price? And what is the opportunity cost?  Should the income foregone on a 5 year fixed deposit not be attributed in calculating the holding period return of the investment?

In a real world scenario, most tax consultants would neglect to consider the foregone interest income, and you would be taxed fully on the capital gain. Perhaps a bit more easing would help.

Maybe tax the investor only on 50% of the capital gain realization? Certain developed countries practice taxing only a portion of capital gains, while simultaneously encouraging real-estate investments. This method would avoid having to forego losses in government revenue.

Arbitrage of taxation is a key financial goal for an individual or an enterprise. This does not mean avoidance of tax, but rather minimizing it through tax reduction strategies.

However, the greater challenge may be implementing the new tax policies. We can only imagine the chaos once enacted, when it is bound to be repealed in a short time period.

Health care is an increasing concern for citizens of the world, as most middle and low-income individuals are unable to afford to pay medical expenses.

Fortunately, Sri Lanka is approaching a higher trajectory in the medical tourism global planner, spurring a demand for accommodation in this niche sector.

Medical facilities have improved in Sri Lanka. However it is wise to evaluate and choose a qualified medical practitioner with a good track record.

While private medical institutions have participated in providing facilities for foreigners at a higher cost, it is undoubtedly 50% – 75% a lower cost for the same surgery or treatment, in comparison to North America or Europe.

Multinational companies have begun to consider other options to reduce the financial burden of expensive medical procedures for employee healthcare.

Insurance companies have the option to provide incentives such as waiving deductibles, or further accommodate travel for a family member, and still manage to cut their costs.

Plausibly more middle-income foreigners would be willing to travel to Sri Lanka for expensive surgical procedures. They may even be willing to travel from more distant countries, given that they have good enough reason to.

Largely, it can be certain that this trend will continue as the quality of medical care improves further in Sri Lanka.

In often times it can be said that tourism is a driver of revenue for a country. The fundamental originators of revenue from tourism in Sri Lanka are ecotourism, cultural tourism as well as active tourism. More precisely, tourism is beneficial to an economy in more ways than one.

Pro-tourism lobbyists promote cross-cultural understanding through a means of social interaction. Tourism creates a scenario in which locals and tourists can dispel stereotypes held of one another. It can also enhance the quality of human relationships. Essentially, tourism also promotes social stability through positive economic outcomes.

In order to continue the drive in tourism we need more advocates to preserve heritage with more attractions to direct foreigners to local cultural destinations. Although less prominent, ecotourism and active tourism need also be considered more noticeable.

Presently, many incentives are in place to attract tourists and foreign investors to our country.

Foreign nationals can now open securities and investment accounts for holding allowable real-estate investments in Sri Lanka. The main advantage of this type of account is permissibility to repatriate funds when needed to do so.

The Department of Immigration and Emigration in Sri Lanka has set up schemes for foreign nationals to apply for permanent residency. Special mechanisms for business ownership are also available.

Incentives seem to be in place, yet the awareness of these mechanisms and special investment vehicles is unfortunately quite low.

With mid and high-rise buildings mushrooming in Sri Lanka, numerous investors have chosen to invest in condos. Appreciation investors look for price increases, and rental investors look to find a lessee immediately. These rental investors usually expect about 3-5% rental income per annum.

The underlying question remains, am I actually going to be able to rent this property after I purchase it?

So we have put together some factors to consider when deciding on a rental property. The list is not conclusive, and the general considerations we have gathered are as follows.

1. Location – How far am I going to have to commute on a daily basis? Do I want to trade-off my valuable time for being on the road for long hours of the day?
2. Sociological – Is the complex safe and secure? Are the neighbours family-oriented? Would my expectations be fulfilled?
3. Value – Do we have a swimming pool or a gym? Are the bathrooms, kitchen and balconies spacious? And the deal-breaker “Is it affordable?”

The above list is only general, and has been based on the opinions of RTI clients.

Historically, mid and high-rise condo developments have lower vacancy rates in comparison to traditional housing. Meaning, there is a higher chance of finding a prospective lessee for your property if it is a mid or high-rise condo building. These statistics do vary from country to country, and do keep in mind the condo market is fairly new to Sri Lanka.

None-the-less, the response we have received so far has been overwhelming. We are confident that the demand for condo rentals in Sri Lanka is currently heavily weighted. However, do mind these general considerations. If you are a landlord, you may likely have to meet the expectations of your prospective lessees.

Let’s gather the events of the past week, and understand how Sri Lanka can become a financially stronger nation.

The immediate effect of Brexit has been risk aversion, considering the losses encountered by the financial markets in the days subsequent to the exit.

Further crisis were seen in Turkey; rebellious attacks in France. The nations surrounding Europe may have first-hand witnessed the beginning of a domino-effect.

Britain’s Prime Minister has stated that new free trade agreements will be imposed, and taxes be reduced. This may have been a temporary solution, considering the fact that Britain did agree to leave the EU free trade zone. Nonetheless, this sudden move could signal a larger problem erupting underneath.

As for Sri Lanka, we happen to be unaffected with the exception of currency devaluation (vs US Dollar). The only positive effect was an improvement in attractiveness of our investments, including share transactions and real estate (a result of the devaluation).

The supreme court of Sri Lanka had decided to decrease the value added tax earlier this week from 15% to 11%, driving up pre-sales of under construction apartment projects as this displayed bargains due to the lower sales tax.

Free-trade may be the temporary solution for Britain, however Sri Lanka may need to re-evaluate the scenario.  Concessions may be required and exports encouraged. After all, a positive trade (more exports) in goods and services determines a country’s productivity. This in turn would ultimately strengthen the currency.

Yes, a weaker rupee may seem like a bargain, yet a stable rupee is a more conservative approach for the risk-averse investor.

The complex is situated in the bordering lands between Battaramulla and Rajagiriya, along the edges of the Diyawanna Lake. The view from the complex is beautiful with lush palm trees and an eco-friendly environment, away from the noise pollution of the city. Since the complex is situated in a peaceful residential community, the residents can enjoy waking up to the serene and tranquil sounds of the naturally beautiful surroundings.

Reliance Residencies is a semi-luxury/luxury apartment complex consisting of 30 elegantly designed apartment units. There are 4 types of 3 bed-room apartments and 2 types of 2 bed-room apartments. Balconies are spacious, and each unit has individually metered electricity, water and gas supply. The complex also features a gymnasium and a swimming pool for your luxury living, and has 24 hour security service for your safety concerns. The complex has been developed by RTI Homes Pvt Ltd, a company that adheres strongly to building standards, and has been designed with long-run sustainability of the development in mind.