Calculation methodology and sources

A place by the ocean where you live all year — and that works without you · A community-hub on Sri Lanka's south coast: live here year-round — or rent it as a managed asset while you're away. 300 m to the ocean, from $88,000. · Y MIRISSA · all year

Key figures: from $88k · entry (studio 36 m²) · 5–7% · net rental yield/yr (target) · +22–43% (scenario) · project price to handover* · 0% · payment plan on construction · 100% · ownership (freehold) · 300 m · to the ocean

Apartment types: 36–43 m² · lowest entry point — bedroom + the whole complex is yours · Studio · from ~$88k · ~25% · 47–53 m² · the core product, with a balcony · 1-bedroom · ~$115–130k · ~62% · 61 m² + 11 m² balcony · upper floors, for families · 2-bedroom · ~$150k · ~13%

Mix: studios ~25% / 1BR ~62% / 2BR ~13%. A studio is the smart entry: you pay for a bedroom, you live in the whole complex.

Payment terms: locks the price and the unit, credited to the first stage · Reservation · $5,000; less the reservation · Building permit · 30%; on completion of the stage · Foundation · 20%; on completion of the stage · Structure · 30%; on completion of the stage · Common-area finishing · 10%; at completion · Title deed transfer · 10% · 0% for the whole construction period (handover planned for December 2029) · $2,450/m²

Location: Sri Lanka's south: whales from the harbour, dozens of beaches, UNESCO Galle Fort and jungle — all within 1–2h. Cheaper and calmer than Bali, more authentic. · Mirissa 0 km, Weligama 5 km, Hiriketiya 30 km · 🏄 · Surf; world-class, boats from the harbour (Nov–Apr) · 🐋 · Whales; Udawalawe (elephants) ~3h, Yala (leopards) ~2.5h · 🐘 · Safari; UNESCO, 33 km (~50 min) · 🏛 · Galle Fort; Sinharaja UNESCO 2.5–3h, waterfalls · 🌴 · Jungle; Colombo CMB ~3h, Mattala HRI ~2–3h · ✈️ · Airports

Ownership: Payment goes through a licensed Sri Lankan bank; rental and resale income is repatriated legally. We guide you through the purchase: bank, contract, registration. · A foreigner owns a condominium apartment outright (freehold), on any floor. Land itself cannot be owned (lease up to 99 years), but the apartment can. A one-off stamp duty of ~4% applies at purchase. · 100% ownership (freehold)

Capital growth: +22–43% (scenario) is a scenario for the project's price from groundwork to completion (off-plan): an early-entry premium plus a market component of ~6.5% a year. A scenario, not a guarantee. · ~$133k · Studio 36 m² · $117k · +50% (scenario); ~$173k · 1-bed 47 m² · $153k · +50% (scenario); ~$226k · 2-bed 61 m² · $200k · +50% (scenario) · $3,180/m² · ~8%/year · +22–43% (scenario)

Market: Market macro context, not a yield guarantee. Sources — open tourism and real-estate data for Sri Lanka. · double-digit % · YoY growth of Sri Lanka tourist arrivals since 2022; ~8–13%/yr · USD price growth on the south coast (beachfront); held · USD coastal prices through the 2022 crisis (rupee −60%); demand > supply · few quality apart-hotels on the south coast; 70–80% · of units in successful south-coast projects sell out before completion — we monitor the market daily; +30–40% · typical off-plan price growth over the construction period on the south coast (2022–2025 cases) · Sri Lanka's south is an underrated market: demand is rising while modern managed apart-hotels are still scarce. A window to enter, not overheated hype.

Questions and answers: Land, no; the apartment, yes. · I'm a foreigner — can I really own it outright? · From a transparent formula: ADR × occupancy × 365 − opex = net. We show three scenarios. It is a projection, not a guarantee — final parameters follow the operating model. · Where do the yield numbers come from? · No — it is a scenario for the project's own price from groundwork to completion (off-plan), not guaranteed market growth: an early-entry premium plus a market component of ~6.5% a year. The outcome depends on the market. · Is the "+22–43% (scenario)" certain? · Our own Get Y operator plus the Co.Space demand channel. You never handle rentals yourself — the asset runs as a managed one. · Who will rent out my apartment? · Payment is construction-linked, 0% interest: $5,000 reservation (locks your apartment and its price, credited to the first stage), 30% at building permit, 20% at foundation, 30% at structure, 10% at common-area finishing, 10% at title deed transfer. Handover is planned for December 2029. The official schedule is in the Payment Schedule (PDF). · What are the installments? · Purchase: stamp duty of 3–4%. Rental: the operator withholds 14% WHT up front, then a non-resident's progressive income tax applies. Confirm the exact structure with an accountant — Sri Lankan rates have changed several times in recent years. · What taxes apply on purchase and rental? · The bank withholds around 14% when profit is transferred, and capital gains tax applies on sale. · Can I sell later and take the money out? · No — and it is not needed: the developer offers 0% installments for the whole construction period. · Is bank financing available? · Behind the project stands the Co.Space network: communities, events and a nomad audience across 140+ cities. Y Mirissa is the first physical place of that network, so there is an audience for renting and living here before the doors even open. · Who will actually live at Y Mirissa?

Y Mirissa Yield Methodology — How We Calculate and What Backs It

Y Mirissa apart-hotel, Mirissa, southern Sri Lanka. This page is an open, verifiable breakdown of where our yield figure comes from. We deliberately show net (what the investor actually keeps), not a pretty gross figure. Anyone — an investor, our partner Yuri, a manager — can walk through the formula, assumptions and sources below and check it for themselves.

Summary — the honest figure

Total ~12% a year net (base)

5.7%net a year from rent
(owner's share, base)

6.5%capital growth
of the asset a year (base)

~12.2%total yield
a year (net + growth, base)

10–15%gross rental yield
— this is NOT what ends up in your pocket

How to read it: the owner's honest rental yield is 5.7% net in the base scenario (after operating expenses, and after the operator has split the remainder and paid all Sri Lankan taxes), not ~12%. On top of that comes capital growth of the asset itself, ~6.5% a year. Altogether, the benchmark is ~12.2% a year (base). By scenario: conservative 3.5% net / 7.0% total, base 5.7% / 12.2%, optimistic 8.8% / 19.8%. Separately, there is a one-off off-plan upside (see §3): buying at the foundation stage costs less than the price at completion.

Important from the start: when you see “~12% yield” quoted somewhere, it is almost always gross (before expenses and taxes), presented as if it were net cash in your pocket. Our gross is also ~10–15% — but we honestly take the figure all the way down to net in the owner's pocket.

Basics — what to compare with what

Gross vs Net: where people usually get misled

gross Gross yield

All rental revenue for the year divided by the purchase price.
Nothing is deducted: not management, not Airbnb/Booking commissions, not cleaning, utilities, repairs or taxes.
It looks great (10–15%), but it isn't the investor's money — it's the property's turnover.

net Net yield

What actually stays with the owner after all operating expenses and after the operator has paid the taxes.
From gross we subtract opex (~42% of revenue) and split the remainder 70/30: 70% to the owner, 30% to the management company.
All Sri Lankan rental taxes are paid by the operator as tax agent — they don't appear as a separate line against the owner's share.
The result is 5.7% net in the base scenario (range across scenarios 3.5–8.8%) — and that's the honest figure we put in the offer.

Why “about 12% total” in so many offers is a mistake (or a manipulation). The seller takes gross revenue, divides it by the price, gets ~13% and labels it “yield”. But ~42% of that revenue is eaten by operating expenses, and the remainder is then split between the owner and the management company. The real net in the owner's pocket turns out to be half as much. We show this path in full — see the waterfall in §4.

Formula and assumptions — a single source

What the figure is built from

Below are exactly the parameters built into our financial model. This is the single source: the calculator on the site and all of the team's calculations use them.

Formula

Gross revenue = occupancy (%) × ADR ($/night) × 365 → Remainder = Gross − Opex (~42% of revenue) → Owner's share = Remainder × 70% (the other 30% is the management company's fee) → this is the owner's net: all Sri Lankan rental taxes are paid by the operator as tax agent, so the owner receives income already net. Yield = owner's net ÷ unit price. Total yield = this net yield + annual capital growth of the asset.

Unit types and entry price

Type	Area	Price	Price per m²
Studio	36 m²	$88 200	$2,450/m² now
1 bedroom	47 m²	$115 150	$2,450/m² now
2 bedrooms	61.4 m²	$150 430	$2,450/m² now

Occupancy and rate scenarios

Scenario	Occupancy	ADR ($/night)	Owner's net / year	Total (net + growth)
Conservative	35%	$60	3.5%	7.0%
Base	45%	$75	5.7%	12.2%
Optimistic	55%	$95	8.8%	19.8%

Opex breakdown (~42% of revenue)

Item	Share of revenue	What's included
Platform commissions (OTA)	11%	Airbnb, Booking.com, etc.
Cleaning and linen	8%	cleaning between stays, laundry, consumables
Utilities and internet	8%	electricity, water, Wi-Fi
Maintenance and reserve	6%	routine repairs + furniture/appliance replacement fund
Amenities, insurance, admin	9%	guest supplies, insurance, administration
Total opex	42%	≈ 58% of revenue remains for the 70/30 split

As for a separate “mgmt fee / management company fee” line in opex, there is none. The operator's fee is its 30% share in the split of the remainder (see below), not a separate operating cost.

Splitting the remainder — 70 / 30

Recipient	Share of remainder	What it is
Unit owner	70%	the investor's net income — net (taxes already paid by the operator)
Management company (operator)	30%	the management company's fee for full operational management of the property

The remainder after opex (≈ 58% of revenue) is split 70% to the owner / 30% to the operator. The operator's 30% share is its fee; there is no separate mgmt fee on top. Out of its part, the operator, as tax agent, covers the rental taxes (see below), so the owner's share arrives net.

Sri Lankan taxes — paid by the operator

Tax	Rate	Who pays and at what level
WHT on rental income	14%	the operator, as tax agent , withholds it from rental income within the country
VAT / SSCL at the operating level	18% / 2.5%	the operator pays it at its own operating level; it does not appear as a separate line in the owner's figure

How to put it to a client: “All rental-related taxes in Sri Lanka are paid by the operator as tax agent — you receive your income already net, straight to your account. Free transfer abroad is ensured by an investment account at a licensed bank. Tax on the income in your country of residence is your responsibility.”

There is no second 14% “exit” tax. For an individual owner, taking rental income and profit out through an investment account at a licensed bank is free, with no separate remittance tax. The branch/PE remittance tax that is sometimes confused with this applies to foreign companies (permanent establishments), not individuals. An early version of the model mistakenly deducted two 14% taxes in a row — this has been fixed.

Honest caveat (being confirmed). Whether the 14% WHT rate is final for a non-resident individual is being confirmed with a tax adviser: a Sri Lankan tax return with a top-up payment under the progressive scale (taking the deemed deduction into account) may be required. The effect on the owner model is minor. Tax sources are in §8.

Capital growth of the asset

Scenario	Capital growth per year
Conservative	~3.5% / yr
Base	~6.5% / yr
Optimistic	~11% / yr

A separate one-off off-plan upside. Buying at the foundation stage at ~$2,450/m²; at completion (target: December 2029) the comparable market is valued at ~$3,000–3,500/m². This is a one-off revaluation +22–43% of the asset itself, on top of the annual growth above. It happens once — at the “foundation pit → finished property” transition, not every year.

Waterfall example

Studio $88,200 (36 m² × $2,450), base scenario — from gross to your pocket

A step-by-step view: how $12,300 of gross revenue turns into ~$5,000 of the owner's net income. Every step uses the parameters from §3.

Gross revenue ≈ $12,300 / yr

14.0%on a $88,200 price · 45% × $75 × 365

− Opex ≈ 42%

minus ≈ $5,170
OTA, cleaning, utilities…

Remainder ≈ $7,145 / yr

8.1%for the 70/30 split

− operator's share 30%

minus ≈ $2,144
management company fee; taxes are paid out of it

To the owner 70% ≈ $5,001 / yr

5.7% netnet to your account (taxes paid by the operator)

+ capital growth ≈ 6.5%

≈ $5 700
revaluation of the asset itself

Total ≈ $10,700 / yr equivalent

~12.2%net rent + growth

revenue / remainder operating expenses operator's share (30%) owner's net / total

Step	Amount/yr	% of the $88,200 price
Gross revenue (45% × $75 × 365)	≈ $12 300	14.0%
− Opex (≈ 42% of revenue)	− ≈ $5 170	—
Remainder for distribution	≈ $7 145	8.1%
− operator's share (30% of the remainder, pays taxes as agent)	− ≈ $2 144	—
To the owner (70% of the remainder) — net to account	≈ $5 001	5.5%
+ capital growth of the asset (≈ 6.5%)	+ ≈ $5 700	6.5%
Total for the year	≈ $10 700	~12.2%

What the example shows: a 14.0% gross yield on the studio, after opex (~42%) and the 70/30 split of the remainder, turns into 5.7% net in the owner's pocket — already net, because the operator covers all Sri Lankan taxes as tax agent. There is no second 14% “exit” tax (see §3). Add capital growth of ≈ 6.5% on top, and the total benchmark for the base scenario is ~12.2% a year.

Market benchmarks — our data

What the assumptions rest on

The scenario figures aren't made up — they're tied to actual statistics for locations in southern Sri Lanka from our research (market-intel LOCATIONS-RESEARCH).

Benchmark	Value	What it confirms
Mirissa — occupancy	30.4%	our conservative scenario (35%) is close to the market without professional management
Mirissa — ADR	median $46 / mean $125	wide rate spread; our ADR of $60–95 is achievable with quality and management
Mirissa — revenue/yr	~$8 760	the current market with 0% professional management — room to grow
Mirissa vs Weligama	+12% premium	the location is already pricier than neighbouring Weligama
Ahangama — occupancy / revenue	36.5% / $13 671	the only growing location — quality wins; where the market is heading
Seasonality — peak (Jan–Mar)	43–65%	high season lifts annual occupancy
Seasonality — trough (June–Sept)	6–22%	built into the conservative annual occupancy
Sales benchmark — Southbeach	$4,700–5,500/m²	promises “yield 6→10%”; our entry at $2,450/m² is substantially lower

The logic: today the market yields ~$8,760/yr without professional management, and grows only where quality is higher (Ahangama). Our scenarios rest on professional management + the product lifting occupancy and ADR into the base and optimistic ranges. Entry at $2,450/m² versus the $4,700–5,500/m² sales benchmark is the source of the off-plan upside.

Risks to the figure

What could push the yield down

Growing supply. Across southern locations, room stock is growing +23…+204% year on year while average revenue per property is falling. More competitors → pressure on occupancy and ADR.
LKR exchange rate. Income is partly generated in rupees, while the investor counts in dollars. A weaker LKR lowers the dollar yield.
Seasonality. The June–Sept trough (occupancy 6–22%) is real, and the annual figure is sensitive to it. A weak high season hurts the most.
Tax regime. The model assumes that rental taxes are covered by the operator as tax agent, and that an individual can take money out freely through an investment account. Changes to Sri Lanka's tax regime (including whether the 14% WHT is final for a non-resident individual — being confirmed, see §3) could shift the net. Plus, tax in the owner's country of residence is the owner's responsibility.

These risks are exactly why we anchor on the conservative netfigure, not the top end of gross. The conservative scenario (§3: 3.5% net / 7.0% total) exists precisely to test the figure “at the floor”.

Check it yourself

Plug in your own numbers

The interactive calculator uses the same parameters as this page. Change the unit, occupancy, ADR and scenario — and see the net in your pocket.

Check it in the calculator →

Sources

What backs it all up

Internal

Our market research for southern Sri Lanka — market-intel LOCATIONS-RESEARCH (occupancy, ADR, revenue, seasonality, supply growth by location).
Financial model for the master plan KWA (unit types, prices, opex structure, scenarios).

External

Taxes (rental, WHT, VAT/SSCL)

Disclaimer

All figures on this page are a forecast, not a guarantee. Actual yield depends on occupancy, rate, the LKR exchange rate, the tax regime and the quality of management, and may differ from the estimate. This material is for information only and is not a public offer. Make investment decisions based on your own due diligence and advice from your own advisers.

Y Mirissa · Mirissa, southern Sri Lanka · yield methodology · net, not gross