Sri Lanka restores 100% land tax

Sri Lanka's parliament has voted to reintroduce a 100% tax on land purchases by foreign nationals.

The legislation was proposed by the Marxist JVP, which is a key component of the governing coalition.

Proponents of the tax have argued that foreigners buying land, often for holiday homes, have priced Sri Lankan nationals out of the market.

The previous government revoked the tax in 2002, saying land purchases by foreigners were boosting the economy.

Many of the purchases have been of land along Sri Lanka's attractive southern coast.

Proponents of the tax also say that some sites of historical interest have been sold.

The tax would apply to foreign individuals but not to foreign-owned companies or joint ventures.