The government is planning to liberalize Sri Lanka’s land laws within three to four weeks, allowing foreigners to buy land.

According to sources, the government is moving towards amending the Land (Restrictions on Alienation) Act which barred foreigners from owning lands,

This Act was introduces in the final months of the Mahinda Rajapaksa government, despite protest from the local business community. Furthermore, the government is planning to allow any foreigner who will bring in US $ 1.0 million to buy government-owned lands for personal purposes. Nevertheless, there will be no restrictions in foreigners owning lands for commercial purposes.

Meanwhile, in another move, the government will offer 10-year temporary visa for any foreigner who will bring US $ 300,000.

These planned moves show a desperation for foreign currency and with tourism sector in mind.

While Sri Lanka’s strict land laws are only one of the many factors blocking the flow of foreign direct investments (FDIs) to the country, liberalization of land laws will lead to a debate between investment and national interests.