The Hon. Faiszer Musthapha, PC

¶ 01 Thank you, Hon. Presiding Member.

¶ 02 First, on the Institute of Real Estate Professionals, Sri Lanka Bill: this institution was initially incorporated under the Companies Act. To constitute it through an Act of Parliament brings great prestige to that institution.

¶ 03 Hon. Presiding Member, I wish to particularly speak on the Tenants’ Protection Bill published in the Gazette on 18 September 2025 and included in the Order Paper on 20 January. I see this Bill as a Pandora’s box. We all agree that a lawful tenant must be protected. But this Bill appears to grant an unlawful occupier—someone who has taken a unit in a condominium or a dwelling, stayed for three months, defaulted on rent—and yet obtains legal entitlement to electricity, water and other common facilities. This is extremely dangerous.

¶ 04 Today our construction sector has made great progress, especially through condominium property. In 2024, construction contributed about four per cent of GDP. From condominium development, roughly 42 per cent of revenues across businesses accrue as taxes to Government. In a small island like ours, condominiums are the practical solution to the housing problem.

¶ 05 Under the Apartment Ownership Law, the Condominium Management Authority and utility providers have clear provisions for settlement of electricity and water bills. Under this Tenants’ Protection Bill, however, the Condominium Management Authority would end up paying the electricity and water bills for the unit, with the owner being liable to pay the Authority. If this Bill becomes law, even tenants who default rent would retain the right to utilities and common facilities. This would severely hurt the construction sector.

¶ 06 We discussed this with the Minister today. A primary defect is the absence of a clear definition of who a lawful tenant is. Without that, a person who violates a lease by non-payment could go to court and exploit the Bill to obtain electricity, water, and common facilities. Our law is progressive and recognizes the wrongdoer principle: no one should benefit from their own wrongdoing. Yet this Bill confers a legal cloak enabling a defaulter to demand utilities. That is why stakeholders have gone to the Supreme Court challenging the constitutionality of this Bill.

¶ 07 If the Hon. Minister of Justice, who has stated he will further consult and bring it for Second Reading thereafter, addresses these concerns, that would be good. Associations related to condominium property have already gone to court. We must support those investing in condominium property and those renting lawfully. If this Bill passes as is, many will be reluctant to rent out property, creating serious risk.

¶ 08 We know many retirees invested life savings in condominium units; their only income is the rent. This Bill, however, would compel owners to continue providing utilities and facilities to occupants until eviction by court, even if occupancy has become unlawful after lease expiry or breach. Our general law disallows forcible ejectment; that is separate. But here, by protecting an unlawful occupier’s continued access to utilities, the Bill encourages continued unlawful occupation. Therefore, substantial amendments are needed, beginning with defining a lawful tenant. Without such definitions, the Bill lacks coherence. Thank you.