Question 1

What is stamp duty in Sri Lanka?

Accepted Answer

Stamp duty is a tax payable on specified legal instruments, including property transfers, lease agreements, mortgages, promissory notes and gifts. Immovable property stamp duty is administered by Provincial Councils under the Stamp Duty (Special Provisions) Act No. 12 of 2006 and related gazettes.

Question 2

What is the stamp duty rate for property transfers in Sri Lanka?

Accepted Answer

For land and property transfers, the standard rate is 3% on the first LKR 100,000 of value and 4% on the balance. For example, a Rs. 10,000,000 sale pays (LKR 100,000 × 3% = LKR 3,000) + (LKR 9,900,000 × 4% = LKR 396,000) = LKR 399,000. The buyer is responsible for payment.

Question 3

Who pays stamp duty — buyer or seller?

Accepted Answer

For property purchases, the buyer (transferee) normally pays stamp duty. For leases, the tenant pays. For gifts, the recipient pays. The parties can agree otherwise in the contract, but the legal default is on the party receiving the property right.

Question 4

How is stamp duty calculated on lease agreements?

Accepted Answer

Lease or hire stamp duty is Rs. 20 for every LKR 1,000 or part of the total rent for the lease term, which equals 2%. For leases longer than 20 years, the calculation is based only on the first 20 years of rent. The 2% rate took effect from 1 April 2025 under Gazette Extraordinary No. 2429/39.

Question 5

Are there any stamp duty exemptions?

Accepted Answer

Yes. Transfers between spouses are normally exempt. Other exemptions may apply to government transactions, certain agricultural land transfers and low-value properties depending on the province. Always verify the specific exemption with your Provincial Revenue Department or lawyer.

Question 6

When must stamp duty be paid?

Accepted Answer

Stamp duty is generally payable when the instrument is executed, drawn or presented. Late payment can lead to penalties, and unstamped documents may not be admissible as evidence. Payment is usually made at a Provincial Revenue Department office, Land Registry or an authorized bank.

Question 7

What is the stamp duty on a gift of property in Sri Lanka?

Accepted Answer

Gifts of immovable property are charged 3% on the first LKR 50,000 of market value and 2% on the balance. The recipient of the gift pays the duty. Gifts between spouses are generally exempt, while transfers to children, parents or siblings are treated as gifts and attract stamp duty.

Question 8

How do I pay stamp duty in Sri Lanka?

Accepted Answer

You can pay stamp duty at the Provincial Revenue Department, Land Registry or designated banks when registering the deed. You normally need the original deed, valuation report, national ID and the payment receipt. Some provinces may offer online payment through their portals.

Question 9

What happens if I don't pay stamp duty?

Accepted Answer

Unstamped or insufficiently stamped documents may not be registered or used as evidence in court. Late payment can attract penalties, and the document may be considered defective, affecting your property rights.

Question 10

Is stamp duty different in Western Province vs other provinces?

Accepted Answer

Property stamp duty is devolved to Provincial Councils, so each province publishes its own gazette rates. The standard structure used by this calculator is 3% on the first LKR 100,000 and 4% on the balance for property transfers, and 2% for leases. Confirm the exact rate with your Provincial Revenue Department before payment.

Question 11

How much is stamp duty for land transfer in Sri Lanka?

Accepted Answer

Land transfer stamp duty is normally 3% on the first LKR 100,000 of the sale price and 4% on the balance. For a Rs. 10,000,000 land sale, the duty is Rs. 399,000. The buyer pays. Use the calculator above to estimate the duty for your sale price.

Question 12

What is the stamp duty for a lease agreement in Sri Lanka?

Accepted Answer

Lease stamp duty is 2% of the total rent payable over the lease term, capped at the first 20 years. For a 3-year lease at Rs. 50,000/month, the total rent is Rs. 1,800,000 and the stamp duty is Rs. 36,000. The tenant pays.

Question 13

Do I need to pay stamp duty when transferring land to a family member?

Accepted Answer

Transfers between spouses are normally exempt. Transfers to children, parents or siblings are treated as gifts and attract stamp duty at 3% on the first LKR 50,000 and 2% on the balance. Consult a lawyer to confirm whether your transfer qualifies for an exemption.

Transaction Type	Rate	Calculation Base	Normally Paid By
Property Transfer	3% / 4%	3% on first LKR 100,000; 4% on the balance of market/sale value	Buyer
Lease Agreement	2%	Total rent for the lease term (first 20 years)	Tenant
Gift of Property	3% / 2%	3% on first LKR 50,000; 2% on the balance of market value	Recipient
Transfer between Spouses	Exempt	No stamp duty applicable	—

Stamp Duty Calculator Sri Lanka 2026

Transaction Details

Stamp Duty Rates by Transaction Type in Sri Lanka

Example: Rs. 20M property transfer

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Inputs and Assumptions

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