Sri Lanka known as the “Pearl of the Indian Ocean” is an island with prodigious natural beauty. The country offers visitors tropical beaches, rainforests, mountains, wildlife adventures and it has a rich cultural heritage. The people of Sri Lanka are known for their warmth and congeniality.
Sri Lanka is now in its post war era and is set to be one of the fastest growing countries in the region. Rapid economic growth has enticed large scale foreign investments to flow into the country and the number of tourists has increased tremendously over the years. We now invite you to come and experience this beautiful Island and invest in Sri Lanka to discover its infinite potential.
Q. WHAT IS CINNAMON LIFE?
A. John Keells Group’s latest project, “Cinnamon Life” is the first of its kind in Sri Lanka – an Integrated Resort: a City within a City. An iconic development that will change the face of Colombo. The 10 acre property by the Beira Lake will be home to an 800 room luxury hotel under the brand of Cinnamon, entertainment facilities, apartments, retail, office space, and many other attractions.
Q. WHAT IS THE DIFFERENCE BETWEEN ‘THE RESIDENCE’ AND ‘THE SUITES’ AT CINNAMON LIFE?
A. The Residence at Cinnamon Life is a 45 storey tower, with a mix of 2, 3, 4, & 5 bedroomed apartments ranging from 1,130 sq. ft. to 4,722 sq. ft. ‘The Suites’ at Cinnamon Life is a 39 storey tower, with mainly 2 bedroomed apartments ranging from 1,267 sq. ft. to 1,273 sq. ft. and four penthouse units at 3,832 sq. ft. Each tower will have its own facilities, and there will be no difference in the facilities and finishes between the two towers.
Q. HAVE ALL THE NECESSARY APPROVALS BEEN OBTAINED?
A. The project has been gazetted under the Strategic Development Project Act for its investment and we have obtained the Development Permit for the construction.
Q. WILL THE APARTMENT OWNER GET FREEHOLD OWNERSHIP?
Q. WHAT CURRENCY CAN I PAY IN?
A. US Dollars or Sri Lankan Rupees (LKR). (If you are paying in LKR, we will use the official central bank selling rate for USD / LKR on the date of payment)
Q. CAN I GET POSSESSION OF THE APARTMENT PRIOR TO EXECUTING THE DEED OF TRANSFER?
A. Yes, you can, provided that the full payment has been made and the vendor having notified to take over vacant possession. However, the Deed of Transfer will need to be executed during a specified period given by the developer.
Q. WHEN WILL I BE ABLE TO EXECUTE THE DEED OF TRANSFER (DOT)?
A. Upon full payment for the apartment and once the condominium plan / condominium declaration have been registered at the land registry.
Q. DOES WATERFRONT PROPERTIES (PRIVATE) LIMITED PROVIDE FINANCING FOR THIS DEVELOPMENT?
A. No, we do not provide financing. However, we work with the major banks that provide financing for local purchasers.
Q. WHAT WILL BE THE SECURITY FEATURES FOR THE BUILDING?
A. There will be CCTV in the common areas with a Building Management system
Q. WHAT IS THE WARRANTY PERIOD FOR THE PRODUCTS AND FINISHES?
A. There is a one year defects liability period from the date of completion.
Q. HOW MANY CAR PARKS ARE ALLOCATED FOR EACH APARTMENT? IS THERE AN OPTION TO PURCHASE ADDITIONAL CAR PARKS?
A. One car park slot each for 2 & 3 bedroomed apartments, and two slots each for the 4 & 5 bedroomed apartments. The developer will not be selling any additional car parks.
Q. WHAT ARE THE RUNNING COSTS THAT I HAVE TO INCUR ON A MONTHLY/QUARTERLY/YEARLY BASIS?
A. Service charge, sinking fund contribution, insurance, municipal rates, utility bills.
Q. WHAT ARE THE OTHER COSTS INCURRED WHEN PURCHASING AN APARTMENT?
A. Stamp duty (Paid at time of Deed of Transfer), legal fees. The stamp duty as at 20 March 2017 is 4%. Any changes in taxes will be applicable.
Q. CAN A FOREIGN INDIVIDUAL OR A COMPANY BUY AN APARTMENT AT CINNAMON LIFE?
A. Yes, provided that the apartment is above the fourth residential floor and the entire purchase price is paid by an inward foreign remittance.
Q. DO FOREIGNERS INCUR ANY ADDITIONAL TAX?
A. No. However, please check with your tax consultants with regards to the tax implications in your country of residence.
Q. HOW DOES A FOREIGNER PAY FOR THE APARTMENT?
A. As a foreigner, you would first have to open an SIA (Securities Investment Account) with any Commercial Bank in Sri Lanka You will then need to transfer the money from overseas to your SIA account in Sri Lanka. Upon your instruction, your bank in Sri Lanka will settle the developer from your SIA account.
Q. IS THERE ANY RESTRICTION FOR REPATRIATION OF SALES PROCEEDS ONCE THE APARTMENT IS SOLD?
A. Initial investment and capital gains can be repatriated through the SIA account back to your country of residence without any restriction, provided the payment for the apartment was paid through the SIA account.
Q. IS THERE ANY RESTRICTION FOR THE REPATRIATION OF RENTAL INCOME?
A. No, provided you repatriate your rental income via your SIA account.
Q. IS FINANCING AVAILABLE FOR FOREIGNERS TO BUY APARTMENTS IN SRI LANKA?
A. Currently, foreigners are not allowed to borrow money in Sri Lanka for apartment purchases.
There has been a budget proposal made by the Government in the Budget reading of November 2016 to allow foreigners to borrow up to 40% of the value of the apartment from local banks. This has not been enacted as yet.
Q. WOULD I HAVE TO PAY INCOME TAX ON MY RENTAL INCOME?
A. Yes, at the applicable income tax rates.