Sri Lanka My Dream Home Programme
Min Monthly Income
$1,500
Difficulty
Difficult
Duration
24 months
Overview
My Dream Home was Sri Lanka’s long-stay residence programme for senior foreign nationals who wanted to retire in the country on a foreign pension. The Department of Immigration and Emigration now lists it as extension only for existing visa holders, so it takes no new applicants.
Holders keep a two-year renewable residence visa by maintaining a fixed deposit and a monthly remittance in an approved Sri Lankan bank. Paid or unpaid employment is not allowed.
The visa fee is USD 200 for each year or part of a year. The catches are the closure to new entrants, the ban on work, no route to permanent residency within the programme and Sri Lankan tax on worldwide income for residents.
Eligibility Requirements
The rules refer to any foreign national who holds a My Dream Home visa and set no nationality list. The USD 200 fee in the Department’s schedule is the same for every nationality.
Min Income
$1,500
Min Savings
$15,000
Renewal Cost
$200/yr
Duration
24 months
Pension / Social Security
Max 0% from local sources
+50% per adult · +50% per child
Requirements Checklist
0 of 8 documents in hand
0%These take the longest, so start them first.
Request these while the slow items are in progress.
You only need these on the day you submit.
How and where to apply
In person at the Department of Immigration and Emigration head office in Colombo, Visa Division, which accepts and processes all applications.
Tax Information
How Sri Lanka taxes residents
A resident of Sri Lanka pays income tax on income wherever it arises, while non-residents pay only on income arising in or derived from Sri Lanka. The programme conditions bind holders to Sri Lankan tax rules and make them liable for the relevant taxes.
Since 1 April 2025, foreign-source gains and profits that are received in foreign currency and remitted through a bank to Sri Lanka are taxed at a maximum of 15% under the Inland Revenue (Amendment) Act of March 2025. Other income, including income not remitted through a bank, follows the progressive scale, which tops out at 36%. A personal relief of LKR 1,800,000 a year applies before tax, and the tax year runs from 1 April to 31 March.
What the IRS still requires
The US and Sri Lanka have an income tax treaty signed in 1985 and amended by a 2002 protocol. It relieves double taxation through the foreign tax credit, and its saving clause lets the US keep taxing its citizens, so a US citizen living in Sri Lanka still files a US return.
The Foreign Earned Income Exclusion is USD 132,900 for 2026 but covers earned income only, so a pension falls outside it. The Foreign Tax Credit is the relief that applies to pension income. A US person whose foreign accounts exceed USD 10,000 in total at any point in the year files FinCEN Form 114 (FBAR), and the Sri Lankan fixed deposit and savings account count toward that total. Single filers living abroad also file Form 8938 when foreign financial assets pass USD 200,000 at year end or USD 300,000 at any time.
Living in Sri Lanka
COL Index vs NYC
31.3
Monthly Cost (excl. rent)
$465
1BR Rent (City Center)
$350
Safety Index
57.5
Healthcare Index
70.8
Quality of Life Index
62.1
Time Zone
UTC+05:30
Capital
Sri Jayawardenepura Kotte
Population
21.9M
Official Languages
Sinhala, Tamil
Avg Internet Speed
37 Mbps
Public Transit Quality
Good
With a budget covering rent and living costs, you'd need roughly $815/mo for a comfortable single-person lifestyle in Sri Lanka.See how far your money goes →
🏙️ Best Cities in Sri Lanka for Retirees
58
70
57
64Programme status
The Department of Immigration and Emigration lists My Dream Home under its residence visas and marks it as extension only for the visa holders it already has. The same wording appears on its general visa overview and in its fee schedule. A person who does not hold a My Dream Home visa cannot join, and anyone else who wants to live in Sri Lanka long term needs a different visa category.
Who holds the visa
The programme was aimed at senior foreign nationals who wanted a prolonged stay in Sri Lanka. Any foreign national holding a My Dream Home visa can apply to extend it. The visa covers the principal holder, a spouse and dependent children, and a marriage certificate is needed to claim the visa for a spouse.
Financial conditions
Two balances must be kept up. The first is USD 15,000, or the equivalent in an approved foreign currency, in a fixed deposit account at an approved bank in Sri Lanka. The second is a monthly remittance of USD 1,500 for the principal holder and USD 750 for each spouse and each dependent child under 18 and unmarried, paid into a savings or current account at an approved Sri Lankan bank. The income behind the remittance is a pension or superannuation, shown with a certified copy of the latest bank statement or other financial documents.
The fixed deposit can be withdrawn in full when the holder ends the stay, but only with prior approval from the Controller of Exchange, requested through the Controller General of Immigration and Emigration. Interest earned on the deposit can be withdrawn and spent on living costs. Holders also send half-year bank statements for the fixed deposit and savings account to the Controller (Visa).
Conditions of stay
Holders need a valid medical insurance policy that applies in Sri Lanka. Paid or unpaid employment is not allowed, and neither are political activities or anything that locals could find sensitive or that threatens national security. Holders must stay clear of criminal activity and must tell the Controller (Visa) about any change in visa status or personal details. A Sri Lankan police clearance certificate is required at each renewal.
Renewal and costs
The residence visa runs for two years and can be renewed. Renewal applications go to the Controller (Visa) at the Department in Colombo, which accepts and processes them. The file holds the Residence Visa form with two color passport photos, a copy of the passport, the financial documents above, the Sri Lankan police clearance certificate and, for a spouse, the marriage certificate. The intended stay should end at least two months before the travel document expires, so a passport near expiry needs replacing before renewal.
The fee is USD 200 for each year or part of a year, for the holder, a spouse and dependent children over 16.
Overstay penalties
Staying more than seven and up to 14 days past expiry adds a USD 250 penalty to the visa fee, and staying more than 14 days adds USD 500. Leaving within seven days of expiry carries no penalty beyond the fee.
Permanent residency and citizenship
The programme grants renewable temporary residence and does not itself lead to permanent residency.
Work Permissions
Application Steps
- 1
📄 Gather the financial proof
- 2
📄 Obtain the Sri Lankan police clearance certificate
- 3
📋 Prepare the form and photos
- 4
📋 Time the renewal against passport validity
- 5
📬 File at the Department in Colombo and pay the fee
- 6
🏛️ Send half-year bank statements
Every six months
This visa requires proof of health insurance. Compare international plans before you apply.
Compare health insuranceWe may earn a commission at no cost to you.
Compare this visa
Curated comparisons that include this route.
Frequently Asked Questions
Click any question to expand the answer.
Ready to Apply?
Work with trusted visa specialists who handle the paperwork so you can focus on your move.
Get help with this visa →* We may earn a commission if you apply through our link
At a Glance
Last verified: October 26, 2026