Unfortunately there’s nothing on the Swedish Institute website about this amazing story. From TheLocal.se:

Sweden is to become the first country to establish diplomatic representation in the virtual reality world of Second Life, officials said on Friday.

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“We are planning to establish a Swedish embassy in Second Life primarily as an information portal for Sweden,” Swedish Institute (SI) director Olle Wästberg told AFP.

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The embassy would not provide passports or visas but would instruct visitors how to obtain such documents in the real world and act as a link to web-based information about the Scandinavian country…

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While there were individuals in Second Life calling themselves the “Canadian Ambassador” and “The United States Embassy to Second Life”, the Swedish initiative would however be the first officially sanctioned embassy in Second Life.

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Wästberg hoped the embassy would open soon. In the longer term the Swedish Institute envisaged buying an island in the virtual world to create a home for Swedish companies.

The Local - Sweden to set up embassy in Second Life.

Islands are not cheap in Second Life:

Islands are priced at US$1,675 for 65,536 square meters (about 16 acres). Monthly land fees for maintenance are US$295.

According to the Second Life website there are currently 2,956,159
residents in the virtual world.

See also: Swedish Tax Authorities Go After Virtual Worlds