With tenant protection dominating the public conversation, many homeowners are unaware that Sri Lankan law already provides strong legal remedies to protect property rights if used correctly.
As debate intensifies around the proposed Residents Protection Bill, a growing concern among property owners is whether their rights are being sidelined in favour of occupants. However, legal protection for property owners already exists under the Restoration of Possession of Leased Premises Act No. 01 of 2023, which clearly outlines how owners can recover leased property and claim financial losses through lawful means.
This Act establishes structured legal procedures to address disputes faced by homeowners and property owners, particularly when recovering possession of premises leased under a valid lease agreement.
01. In what cases can you, the property owner, take action?
Under this law, a property owner has the right to recover possession of premises leased under a lease agreement. Legal action may also be taken to recover outstanding tax installments, unpaid service charges, and damages incurred during the lease period.
According to Section 2 of the Act, a case may be filed to recover possession of the premises when the lease agreement expires, when the lessee violates the terms, conditions, covenants, obligations, or duties specified in the agreement, when the lease is terminated before expiry by issuing a lawful notice of termination, or when the lessee refuses, defaults, or neglects to vacate the leased premises.
02. What is a legal lease agreement?
Having a legally valid lease agreement is essential for both lessors seeking repossession under this Act and lessees relying on protection under the proposed Residents Protection Bill. Without proper documentation, legal remedies become extremely limited.
The Act defines a “lease agreement” as an agreement between a lessor and a purchaser of premises that is duly stamped and signed in accordance with Section 2 of the Prevention of Frauds Ordinance (Cap. 70). Alternatively, it may be a lease deed executed under the Registration of Titles Act No. 21 of 1998.
03. To what type of property is this applicable?
The law applies broadly to leased premises, including entire buildings, parts of buildings, land attached to buildings, vacant land without structures, and units within multi storey buildings.
Taking possession refers to obtaining the legal and physical ability to reside in the premises or to lawfully hold the keys to the property.
04. What are the reliefs available from the courts?
In addition to recovering possession, property owners may seek several forms of financial relief from court. These include recovery of outstanding tax installments, unpaid service charges until clear possession is returned, losses incurred from the date of lease expiry or termination until possession is restored, interest on outstanding amounts at the legal interest rate, and any other relief or court fees the court deems appropriate.
These provisions ensure that owners are not financially penalised for delays or violations caused by lessees.
05. Will property owners be imprisoned under the proposed new law?
There has been widespread confusion over whether property owners could face imprisonment under the proposed Residents Protection Bill. Section 10 of the draft bill states that when a court orders the return of premises, a fiscal officer will remove occupants and reinstall the petitioner.
If any person obstructs this process, the matter is reported to court within fourteen days. A fine not exceeding Rs. 500,000 or imprisonment for up to one year, or both, may only be imposed for contempt of court and only after a final court judgment is wilfully violated.
Therefore, imprisonment is not automatic and applies only when lawful court orders are deliberately ignored. Property owners seeking eviction or repossession are best advised to proceed under the existing Restoration of Possession of Leased Premises Act No. 01 of 2023, which provides a clear, legal pathway to protect ownership rights.
