58.
| (1) Subject to the provisions of subsection (4), where there is a transfer of ownership of any property in Ceylon to a person who is not a citizen of Ceylon, there shall be charged from the transferee of such property a tax of such amount as is equivalent to the value of that property. |
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| (2) The tax referred to in subsection (1) is hereinafter referred to as " the tax ". |
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| (3) A person liable to the tax shall pay the tax-
| | (a) if the property consists of land, to the Registrar of Lands of the district, in which the land transferred is situated, before the instrument by which the transfer of that land was effected is presented for registration in accordance with the provisions of the Registration of Documents Ordinance, and | | |
| | (b) if the property consists of any shares in any company, to the company before the transfer relating to the shares in respect of which the tax is payable is registered in the registers maintained by that company for the purposes of transfer of shares. | | |
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| (4) The preceding provisions of this section shall not apply to-
| | (a) the transfer of any land or shares to any commercial bank (within the meaning of the Monetary Law Act) or body of persons carrying on the business of insurance which is not a citizen of Ceylon arising out of the sale of such land or shares to such bank or body of persons in execution of a decree of court to enforce the mortgage of such land or shares whether before or after the date of operation of this Part of this Act as security for a loan or advance given by such bank or body of persons ; | | |
| | (b) the sale of any land to any person who is not a citizen of Ceylon if it is proved to the satisfaction of the Registrar of Lands, who is responsible for the collection of the tax, that the negotiations for such sale had commenced before the date of operation of this Part of this Act, and the instrument for the transfer of ownership of such land was effected in consequence of such negotiations; | | |
| | (c) the transfer of any land, or shares in any company, to any commercial bank (within the meaning of the Monetary Law Act), or a company which is a nominee of such bank, in its capacity as trustee under any instrument whatsoever; | | |
| | (d) the sale of any shares in any company held by a director of such company who has retired or is retiring from the office of director or is going on leave out of the Island, to any person, who is not a citizen of Ceylon and who is a director, or is suceeding him in office as director, of such company; | | |
| | (e) the transfer of shares in a company arising by reason of the investment of the funds in a blocked account (within the meaning of the Exchange Control Act) or by reason of the investment of the funds of any company which is not a citizen of Ceylon and which is carrying on the business of life insurance; | | |
| | (f) the transfer of shares in any company to any commercial bank (within the meaning of the Monetary Law Act) in satisfaction or part satisfaction of any loan, overdraft or other financial accommodation given by such bank on the security of a mortgage of such shares; or | | |
| | (g) the transfer of property of any such class or description as is specified in any Order made by the Minister and published in the Gazette. | | |
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| (5) The preceding provisions of this section shall be deemed to have come into operation on August 1, 1963. |
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Sri Lanka Consolidated Acts