Guide · 6 min read

Stamp duty in Sri Lanka: what you'll actually pay

Stamp duty is the tax that makes a property transfer legal — and the cost buyers most often forget to budget. Here is how it works, in plain terms.

The headline rates

For a transfer of immovable property (a deed of transfer), stamp duty is charged on the property's value at:

• 3% on the first Rs. 100,000, and
• 4% on everything above that.

In practice, for any realistically priced property, think of it as roughly 4% of the price. On a Rs. 25,000,000 house that is about Rs. 999,000 — a real number that belongs in your budget from day one, not a surprise at the notary's desk.

Rates are set under provincial council law and can change. Treat the figures above as current practice as of mid-2026 and have your lawyer confirm the applicable rate before you sign.

Who pays, and when

By convention the buyer pays stamp duty on a transfer. It is paid when the deed is executed — your notary or lawyer handles the payment and affixes proof to the deed. A deed without proper stamping can be refused registration, which is why this is never optional.

Gifts between family members (deeds of gift) are stamped at different, lower rates — if you're transferring property within a family, ask your lawyer specifically about gift rates before assuming the transfer rates apply.

The other costs people forget

• Notary/legal fees — commonly around 1–2% of the property value for drafting the deed, title checks, and registration (negotiable; agree it in writing up front).
• Title search & registry fees — modest official charges for extracts and registration at the Land Registry.
• Survey costs — if the survey plan is old or the land is being subdivided, a licensed surveyor's fee applies.
• Agent commission — if a broker is involved, commission is customarily paid by the seller, but confirm who pays what before viewing turns into negotiation. (On Vikkaa, listing fees are flat and commission-free — see pricing.)

A worked example

Buying a house in Gampaha at Rs. 18,000,000:

• Stamp duty: 3% × 100,000 + 4% × 17,900,000 = Rs. 719,000
• Legal/notary (say 1.5%): ~Rs. 270,000
• Searches, extracts, registration: ~Rs. 10,000–25,000

Realistic all-in transaction cost: about Rs. 1,000,000 on top of the price — roughly 5.5%. Budget it before you make an offer, and you'll never have to renegotiate after committing.

Before you sign anything

Stamp duty makes a transfer legal; it doesn't make it safe. The deed itself must survive scrutiny first — our guide on checking a deed before you buy covers the searches that protect your money.