Opportunity on the Indian Ocean
Before writing this article, I was awake at dawn, enjoying an early-morning cricket match. Ireland was playing Sri Lanka as part of the T20 World Cup.
Now, while I’ve yet to visit Sri Lanka (it’s on my list), I feel like I know the country and the culture of that beautiful nation well… I’ve followed Sri Lankan cricket for decades. I have several Sri Lankan friends, and I’ve taught myself to cook some of their signature dishes.
Yet the reason Sri Lanka is on my mind isn’t just cricket, nor its delicious cuisine. Earlier this year, the country quietly launched a new digital nomad visa… one that’s far more accessible than many of its regional competitors.
But first, a little context… Sri Lanka—formerly known as Ceylon—is a teardrop-shaped island just off India’s southern tip. It’s close to the equator, so the climate is tropical and shaped by the surrounding Indian Ocean. Think humidity, coconut palms, and lots of fish.
Like India, Sri Lanka’s lingua franca is English. Unlike India, its culture and religion are Buddhist, although there’s a large Hindu Tamil minority, as well as a significant Christian presence. But whereas India is a vast country of many cultures and languages, Sri Lanka is dominated by the Sinhalese majority and the significant Tamil minority in the north and east.
Sri Lanka has a fascinating colonial history. The Portuguese arrived in 1505, quickly establishing dominance over the southwest. The Dutch expelled the Portuguese in 1658 and were in turn expelled by the British in 1796. They stayed until 1948, when Ceylon became independent.
The result is a melange of South Asian and European cultures. Many prominent families have Portuguese surnames, practice Catholicism, and speak English as their first language. They call themselves “burghers,” a Dutch term for city dwellers. Like South Africa, Sri Lanka practices Roman-Dutch law. The country is a major exporter of tea, an industry established by the British. (That’s why some call black tea “Ceylon” tea).
Sri Lanka is broadly similar to popular expat destinations in Southeast Asia, but is home to far fewer foreigners. The cost of living is much lower than in Europe or the US. Rent and healthcare are cheap, but imported goods are expensive. The country has experienced foreign currency crises in the past, which have led to periodic shortages. Culturally, Sri Lankan society is slow, relationship-based, polite, and hierarchical. Social attitudes trend towards the conservative.
The country has had a rough political history since independence. Colonialism cultivated tensions between the Sinhalese majority and the Tamil minority, which exploded into civil war in the 1970s. That war is now over, but lingering resentments still influence things. In the 15 years since the end of the war, the government has struggled with economic and political conflict, which has largely prevented it from emerging as a tourism and expat destination.
That’s starting to change. Earlier this year Sri Lanka launched a digital nomad visa, allowing foreigners to live and work in the country with a minimum income of $2,000 plus an additional $500 for each dependent. That’s a lot less than Indonesia’s $5,000 dollar requirement and Thailand’s $80,000 a year, but identical to Malaysia’s $2,000 a month. Overall, Sri Lanka’s new programme falls in the same band as Portugal and Costa Rica.
The new digital nomad permit comes on top of an existing program that allows you a five-year renewable residency permit in exchange for purchasing a condominium.
A $75,000 purchase will get you permission to stay if you buy a condo in a suburban area. $150,000 will get you a city condo. Both versions allow you to bring your family. There are also a variety of investor-based visas, ranging from $100,000 to $500,000.
Sri Lanka doesn’t have a permanent residency status, but anybody who’d like to become a citizen can do so after living in the country for five years on an investment-based permit.
Sri Lanka certainly isn’t one of your typical residency destinations. But like fellow Indian Ocean island-nation Mauritius, which I wrote about last week, it’s part of a new wave of opportunities for people looking for a more adventurous life off the beaten path.
If you’d like to explore the opportunity, give me a call, and let’s talk about it.
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