Investing in hostel business in Sri Lanka

Send me more details to answer.

Kind Regards

Hey sunilkobe,

My main areas of concern are around acquiring a visa to live and work in the country after investing.

I am currently in discussion with a Sri Lankan businessman about investing in 48% of a hostel business.  The hostel is registered as a private limited company in Sri Lanka and has been operating for five years.

As a UK national, can you advise on what residency permits are available to me in order to live and work in Sri Lanka after investing in the business?  Am I able to acquire a Residence Visa in the Investor Category?

I notice that for a Resident Guest Visa I would need to have funds of over $250,000.  I do not have this level of funds after investing in the business.

Also, is anyone able to recommend a good legal counsel in Sri Lanka to help me with due diligence of the business, assessing the project's compliance to the legal requirements and obtaining of necessary approvals, etc?

Any advise greatfuly appreciated

A

Hi,
As foreign shareholder you can invest up to 49% since the property might be belonging to the company. You need to bring investment money through Internal Investment  Account ( IIA ) to get shares legally. This account can be opened in any commercial bank in Sri Lanka under your name.
Regarding the Visa your local partner can assist in getting and you can come under investor category or work Visa category. You need to show that  your presence in Sri Lanka is vital to run the business and if you have experience or qualification in related industry , that  will give add advantage in getting Your Visa.

Wasantha.

Hello Wasantha,

Alright, by now, all SIA have been converted in IIA Accounts with that purpose you mentioned to get in the money in controlled  from abroad and to invest in Sri Lanka on that single account.

Well, next step, if a foreigner incorporate a company with a local, already (owning 49 to 51 shares) and now they got to the point to obtain land for the proposed project.

My consideration to use the money properly for getting land, it goes/comes from abroad to that single IIA account in Sri Lanka.

Then, I will release the money to purchase the land in the name of the existing company in order to start the project e.g. construction, planning etc. and after all, we keep it jointly with both directors, founder of the company, 49 to 51 percent. Am I right and what especially I should keep in mind and watch for?

Your advice would be appreciated!

Regards,
FlyingPeacock

Hello,

Until we wait for a detailed reply from wasantha, I can tell you that this can't be done. You are only allowed to lease the land on long term basis as a private company with foreign share holders and there are some other terms as well which I can't remember exactly.