The first Sinhalese arrived in Sri Lanka late in the 6th century B.C. probably from northern India. Buddhism was introduced in about the mid-third century B.C., and a great civilization developed at the cities of Anuradhapura (kingdom from circa 200 B.C. to circa A.D. 1000) and Polonnaruwa (from about 1070 to 1200). In the 14th century, a south Indian dynasty established a Tamil kingdom in northern Sri Lanka. The coastal areas of the island were controlled by the Portuguese in the 16th century and by the Dutch in the 17th century. The island was ceded to the British in 1796, became a crown colony in 1802, and was united under British rule by 1815. As Ceylon, it became independent in 1948; its name was changed to Sri Lanka in 1972. Since 1983, there has been on-and-off civil war, predominantly between the government and the Liberation Tigers of Tamil Eelam (LTTE, also known as the Tamil Tigers), a separatist militant organisation who fight to create an independent state named Tamil Eelam in the North and East of the island. The continued political turmoil has seen a decline in tourism figures which enjoyed a bounce since the island was devastated by the Asian Tsunami. However, tourists are still arriving in significant numbers to the southern and central parts of the island and the real estate industry is not as hard hit as might be expected. The attractions of the island are outweighing the negatives; Sri Lanka has a fantastic climate, perfect beaches, a wealth of history and culture, incredibly warm and friendly people, fabulous food and rock bottom prices.

Property Market Overview

Sri Lanka's tourism-fuelled GDP grew at an average annual rate of 5.5 per cent during the early 1990s, until a drought and a deteriorating security situation lowered growth to 3.8 per cent in 1996. However, the economy rebounded in 1997-2000, with average growth of 5.3 per cent. Although hard hit by the Asian Tsunami, the rate of recovery was fast and the economy was estimated to have grown by 7 per cent last year according to the Sri Lankan central bank statistics. Today, Sri Lanka has the highest per capita income in South Asia and with an income per head of $1,350 is ahead of its giant neighbor India.

Although parts of Sri Lanka, particularly the South and East coast, were badly hit by the 2004 Asian Tsunami the economy enjoyed a massive surge in foreign aid and visitors. The years following the catastrophe saw returns from tourism eclipse what they had been prior to 2004. The economy's march was again disrupted with the reemergence of the civil strife and tourism has again begun to decline and GDP growth has slowed. Investors are waiting in the wings however, as was demonstrated the last time a peace deal was signed in 2003 - the Colombo Stock Exchange reported the highest growth in the world for that year.

The Sri Lankan government has been attempting to play down the risk posed by the LTTE, who in reality pose less of a threat to foreign nationals than Sri Lankan traffic, and is pressing ahead with large scale developments aimed at overseas investors. Chief among them is a new tourism zone under development in Kalpitiya a coastal region and archipelago of 14 islands in the country's north-west.

According to Sri Lanka's tourist promotion office the Kalpitiya Integrated Tourism Development Project (KITRP), and nearby islets in the Puttalam area will be built as a premium destination and will host to a string of eco-friendly resorts.

Officials say that Kalpitiya will be developed as a destination in its own right rather than as a location within Sri Lanka, much in the same way that Bali is promoted independently of Indonesia and with its own air links and immigration. The project is expected to generate four times the current US$79-a-day spend of an average tourist and a number of top international branded hotels are being courted for the development.

As part of the initiative a currently dis-used airfield in Palavi will be the site of much of the initial development, where the government is planning to develop a mini city with new roads, power links and a hospital. Residential condominiums, a race course and an amusement park are also planned.

In total, the Kalpitiya area and islands contain 4,000 acres for development, most of which is currently geared towards agriculture and fishing. Officials say no re-settlements are planned and the existing community will be integrated into the planned development.

Sri Lanka's tourism has been hit by an internal conflict. Authorities are hoping to bring in close to 600,000 tourists this year. The Kalpitiya premium zone when fully developed is expected to attract one million tourists, and official say is the largest single tourism project promoted so far. The unspoiled area around Kalpitiya has some of the finest beaches anywhere in Asia as well as some premier dive sites. It is also something of an ecologists dream in that it is home to a large proportion of the world's only remaining dugong - the mysterious sea mammals which are believed to have spawned the mermaid myth.

Essential information

Location
Sri Lanka is a large island in the Indian Ocean, to the south of India in southern Asia.

Area
Total: 65,610 sq km
Land: 64,740 sq km
Water: 870 sq km

Population
21,128,772

Language
Sinhala is the official and national language and is spoken by around 74 per cent of Sri Lanka's population. Tamil is the national language of the Sri Lanka's minority Tamils and is spoken by 18 per cent. Various other languages account for the final 8 per cent. English is commonly used in government and is spoken competently by about 10 per cent of the population, many of whom work in the hospitality sector.

Religion
Buddhism is the majority religion, accounting for some 69.1 per cent. 7.6 per cent are Muslim, 7.1 per cent Hindu, 6.2 per cent Christian and 10 per cent are unspecified.

Currency/Money
Sri Lankan rupee (LKR). At the time of writing 1.00 USD =110.050 LKR

Climate
Sri Lanka's climate can be described as tropical, and quite hot. Its position between 5 and 10 north latitude endows the country with a warm climate, moderated by ocean winds and considerable moisture. The average yearly temperature for the country as a whole ranges from 28? to 30 ?C (82-86 ?F). January is the coolest month while May, the hottest period, precedes the summer monsoon rains.

International dialling code
+65

Capital
Colombo

Electricity
230 volts AC (50 Hz)

Top

History

The first Sinhalese arrived in Sri Lanka late in the 6th century B.C. probably from northern India and Buddhism was introduced in about the mid-third century B.C. In the 14th century, a south Indian dynasty established a Tamil kingdom in northern Sri Lanka. The coastal areas of the island were controlled by the Portuguese in the 16th century and by the Dutch in the 17th century. The island was ceded to the British in 1796, became a crown colony in 1802, and was united under British rule by 1815. As Ceylon, it became independent in 1948; its name was changed to Sri Lanka in 1972.

Tensions between the Sinhalese majority and Tamil separatists erupted into war in 1983. Tens of thousands have died in the ethnic conflict that continues to fester. After two decades of fighting, the government and Liberation Tigers of Tamil Eelam (LTTE) formalized a cease-fire in February 2002 with Norway brokering peace negotiations.

Parts of Sri Lanka, particularly the South and East coast, were devastated by the 2004 Asian Tsunami. The economy however was buoyed by an influx of foreign aid and tourists but suffered a setback when violence between the LTTE and government forces intensified in 2006. The government has since regained control of the Eastern Province and in January 2008 officially withdrew from the ceasefire, and has since been engaging the LTTE in the northern portion of the country.

Top

Government

The government is a mixture of the presidential system and the parliamentary system. The President of Sri Lanka is the head of state, the commander in chief of the armed forces, as well as head of government, and is popularly elected for a six-year term. In the exercise of duties, the President is responsible to the Parliament of Sri Lanka, which is a unicameral 225-member legislature. The President appoints and heads a cabinet of ministers composed of elected members of parliament. The President's deputy is the Prime Minister, who leads the ruling party in parliament and shares many executive responsibilities, mainly in domestic affairs.

Sri Lanka has enjoyed democracy with universal suffrage since 1931. Politics in Sri Lanka are controlled by rival coalitions led by the left-wing Sri Lanka Freedom Party, headed by President Rajapaksa, the comparatively right-wing United National Party led by former prime minister Ranil Wickremesinghe and Marxist-Nationalist JVP. There are also many smaller Buddhist, socialist and Tamil nationalist political parties that oppose the separatism of the LTTE but demand regional autonomy and increased civil rights. Since 1948, Sri Lanka has been a member of the Commonwealth of Nations and the United Nations.

Economy

From the dawn of independence in 1948 to 1977 socialism strongly influenced the Sri Lankan government's economic policies. Colonial era plantations were dismantled, industries were nationalised and a welfare state established. From 1977 the UNP government began incorporating privatisation, deregulation and promotion of private enterprise which is still largely in line with the current government.

While the production and export of tea, rubber, coffee, sugar and other agricultural commodities remains important, the nation has moved steadily towards an industrialised economy with the development of food processing, textiles, telecommunications and finance. By 1996 plantation crops made up only 20 per cent of export, and further declined to 16.8 per cent in 2005 (compared with 93 per cent in 1970), while textiles and garments have reached 63%. The GDP grew at an average annual rate of 5.5 per cent during the early 1990s, until a drought and a deteriorating security situation lowered growth to 3.8 per cent in 1996. However, the economy rebounded in 1997-2000, with average growth of 5.3 per cent. Shortly after the declaration of a ceasefire the Colombo Stock Exchange reported the highest growth in the world for 2003, but gains were massively negated by the 2004 Tsunami. The rate of recovery was fast and the economy was estimated to have grown by 7 per cent last year according to the Sri Lankan central bank statistics, although inflation is believed to have reached 20 per cent. Today, Sri Lanka has the highest per capita income in South Asia and with an income per head of $1,350 is ahead of its giant neighbor India.

Top

Visas

Tourist visas are issued upon arrival for stays up to 30 days and documents and tickets indicating the date of return or onward travel way be required. For business travelers, passport must be valid for three months beyond intended stay and a business letter of responsibility is required, typewritten on your company letterhead, indicating the purpose and intended duration of stay. A sponsor letter, from a Sri Lankan business, may in some circumstances also be required. An International Certificate of Vaccination for Yellow Fever is necessary if arriving from infected area within the previous five days.

Top

Healthcare

The major health concern for many considering travelling to Sri Lanka is the threat of attack from The Tamil Tiger (LTTE) rebels. However, they do not target tourists and only in very rare instances have any been wounded (mostly minor) by their operations. Historically, the Tamils have had a close relationship with the British, and are not anti-Western. It would appear that the Tigers would prefer to have no Western or foreign casualties, and they have planned their operations accordingly. In reality, the threat injury as a result of a traffic accident is far greater than that posed by the LTTE.

Vaccinations are recommended for Hepatitis A+B, Polio, and Tetanus. Also, the Typhus vaccination outside of tourist areas especially in the wet season. Dengue fever is present in some areas so during the rainy season use mosquito repellent. When head and joint aches occur get a blood check.

Gampaha, Colombo, Kalutara, Galle, and Nuwara Eliya districts are considered malaria free, as is the city of Kandy. Elsewhere, malaria exists and is most likely in Anuradhapura.

Travel

Sri Lankan Airlines is a national flagship carrier operating to and from Colombo-Bandaranayake. Flights are available from origins throughout Europe, United States, Southeast Asia, China, Japan, the Middle East, India, and Pakistan. SL also flies to the nearby resort areas of Goa, India and the Maldives. Sri Lankan also code shares with Emirates Airlines of the United Arab Emirates. This allows for connections from places SL doesn't fly to itself such as North America. Mihin Lanka , Sri Lanka's first (and only) low-cost airline started operating in 2007. They fly to various points in India as well as Bangkok, Dubai, Male and Singapore. Other airlines include Singapore, Malaysia, Thai, Cathay Pacific, Qatar, Saudi Arabian, LTU (Germany), and Edelweiss Air (Switzerland).

It is advisable to avoid all travel by bus or train in Sri Lanka due to the threat of Tamil Tiger attack. There have been attacks against civilian targets which are occasionally (but not regularly) frequented by foreign tourists. Bus bombings have occurred recently in Colombo, Ampara, Mt. Lavinia and Dambulla during 2008.

Top tips for Sri Lanka property
Guide to buying condos in Sri Lanka
Guide to buying houses and land in Sri Lanka

Top