2026-02-05 / Second Reading Debate: Institute of Real Estate Professionals Bill, Container Depot Operators Licensing Bill, and Licensing of Shipping Agents Amendment Bill - Member Contributions 2026-02-05
## Summary
Hon. Faiszer Musthapha briefly acknowledged the Institute of Real Estate Professionals, Sri Lanka Bill before focusing his remarks on the **Protection of Residents Bill** (gazetted 18 September 2025), which he characterised as dangerous and deeply flawed. He argued that the Bill, as drafted, would grant unlawful occupants—including tenants who default on rent—a statutory right to electricity, water, and common amenities, which he contended would severely damage the construction and condominium sector (contributing approximately 4% of GDP in 2024) and deter property owners, including retirees dependent on rental income, from leasing their units. He identified the absence of a definition for "lawful resident" as a critical deficiency, noting it conflicts with the established legal principle that wrongdoers should not benefit from their own conduct, and referenced court challenges already filed by condominium industry associations. Musthapha called for substantial amendments, particularly a clear definition of "lawful resident," and supported referral of the Bill to Committee Stage to address these concerns before the Second Reading.
Thank you, Madam Presiding Member.
First, on the Institute of Real Estate Professionals, Sri Lanka Bill: this institution had originally been registered under the Companies Act. Establishing it through an Act of Parliament is a great honour for that institution.
I especially wish to speak on the Protection of Residents Bill gazetted on 18 September 2025 and included in the Order Paper on 20 January. I see this Bill as a “witch’s milk” (a dangerous concoction). We all accept that if someone is a lawful resident, he or she should be protected. However, this Bill provides that if someone takes a premises or an apartment on rent and stays three months, then even if that person becomes an unlawful occupant after defaulting on rent, he or she would still be entitled to obtain electricity, water and other common facilities. I state that this is extremely dangerous.
Our construction sector has grown significantly, including through condominium development. In 2024, construction contributed around 4 per cent of GDP. The Government receives substantial tax revenue from condominium developments—about 42 per cent of the tax per project. For a small island like ours, condominiums are a key solution to the housing problem.
Under the Apartment Ownership Law, the Condominium Management Authority (CMA) oversees common services, with payments to the National Water Supply and Drainage Board and the CEB. According to this Protection of Residents Bill, at condominiums the CMA would pay the electricity and water bills on behalf of the unit, and the owner is liable to pay the CMA. However, even if a tenant defaults, this Bill still gives them the right to electricity, water and common amenities. This would deliver a heavy blow to the construction industry.
We discussed this with the Minister of Justice, who said the Bill could be further discussed before the Second Reading. Those engaged in this sector and property owners are very concerned. If this Bill is passed, many will not be willing to rent their properties, creating serious risks.
The first problem in this Bill is that “lawful resident” is not defined. Thus, someone could breach a tenancy agreement and, without paying rent or utilities, go to court and obtain benefits because the Bill grants such a statutory right. Our law is progressive and recognizes the “wrongdoer principle”: no one should profit from his or her own wrong. Yet, under this Bill, an unlawful occupant could seek orders from court to provide electricity, water and common facilities. That is why stakeholders have gone to the Supreme Court challenging the legality of this Bill.
If the Minister addresses these issues and sends the Bill to Committee Stage to fix them, that would be good. Associations relating to condominium properties have already gone to court. If we want to encourage investment in condominium properties and support those in this sector, we must avoid creating fear about renting. Many retirees invested in condo units; their rental income is their livelihood. Under this Bill, until an unlawful occupant is evicted through court, the owner would still have to ensure utilities and services. While our general law prevents forcible eviction, this is different: granting statutory protection to an unlawful occupant to remain is unacceptable.
Significant amendments are necessary. Above all, unless we define who a lawful resident is, this Bill will have no credibility. Thank you.