(Lanka-e-News -27.Feb.2025, 11.00 PM) For over 4 years, my apartment has been cut off from electricity and water, not because I refused to pay my management fees, but because the Management Corporation (MC) imposed a shocking 730% annual interest rate on alleged arrears — a rate they claim is justified by a flawed interpretation of a by-law clause.
The clause (Clause 17.1 of the By-laws of Prime Residencies Siebel MCCP No. 4328) states:
"Arrears in the payment of Management Fees shall attract interest at 2% calculated on a daily basis, from the due date."
But it fails to state whether this 2% is per day, per month, or per year — leaving room for abuse. Instead of choosing a reasonable interpretation, the Management Corporation, with the endorsement of CMA officials, decided to interpret it as 2% per day — leading to a mind-boggling 730% annual interest rate!
*This means if you miss a payment, your Rs. 100,000 arrears will balloon to over Rs. 800,000 in just one year.
*This interpretation is being used to cut off basic human necessities like water and electricity — a clear violation of fundamental rights and human dignity.
I have written to CMA since October 2024, requesting a fair interpretation aligned with accepted accounting and legal practice — where 2% should be treated as an annual interest rate unless otherwise specified. For 4 months, CMA has remained silent.
This is not just my fight — this is a warning to every apartment owner in Sri Lanka. If this outrageous interpretation stands, every single apartment complex could become a trap, where owners can lose their homes to impossible debt burdens created by vague by-laws and unchecked MC power.
I am calling upon:
* The Minister of Urban Development to immediately intervene and demand a formal interpretation from CMA.
* Apartment owners across the country to stand up against this injustice before they become the next victim.
* The media to expose this injustice and ensure transparency in the governance of management corporations.
This is not just a legal battle — this is a fight for fairness, dignity, and basic human rights. If my story resonates with you, share this post and demand action before it’s too late.
Share Unit Owner, F1P5
Prime Residencies Siebel
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by (2025-02-27 18:23:01)
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