Based on the information provided about Sri Lankan property rental laws, this article outlines the process of drafting a tenancy agreement that complies with relevant legal standards. The tenancy agreement template included below is a general format and not a complete legal document. It is essential to consult a lawyer or notary public to customize the agreement according to your specific needs and to ensure compliance with applicable laws, such as the Rent Act No. 7 of 1972 (as amended) and the Recovery of Possession of Premises Given on Lease Act No. 1 of 2023. Notably, registering a tenancy agreement is required under certain new laws to protect the rights of both parties.
This guide provides step-by-step instructions for drafting a tenancy agreement, key clauses to include, and practical tips to ensure clarity and legal enforceability.
A tenancy agreement is a legally binding contract between a landlord (lessor) and a tenant (lessee) that outlines the terms and conditions for renting a property. In Sri Lanka, tenancy agreements are governed by statutes such as the Rent Act No. 7 of 1972 and other regulations, ensuring fair treatment for both parties. A well-drafted agreement prevents misunderstandings, protects rights, and serves as evidence in disputes.
This article explains how to create a tenancy agreement that aligns with Sri Lankan rental laws, including essential clauses, legal considerations, and practical advice for landlords and tenants.
A written tenancy agreement is critical for several reasons:
While oral agreements are recognized under Sri Lankan law, they are prone to misinterpretation and disputes. A written agreement is strongly recommended.
Tenancy agreements in Sri Lanka are governed by:
Consulting a legal professional ensures the agreement complies with these laws and any recent amendments.
A comprehensive tenancy agreement should include the following elements:
Tenancy Agreement
This agreement is made on [Day] of [Month], [Year], and is governed by the property rental laws of Sri Lanka, particularly the provisions of the Rent Act No. 7 of 1972 (as amended) and other applicable laws and regulations, between the following parties:
Landlord (Lessor):
Name: [Full Name of Landlord]
National Identity Card Number: [NIC Number]
Address: [Landlord’s Address]
Telephone Number: [Landlord’s Contact Number]
(Hereinafter referred to as the “Landlord,” which includes their legal heirs, executors, and administrators as the context requires.)
Tenant (Lessee):
Name: [Full Name of Tenant]
National Identity Card Number: [NIC Number]
Address: [Tenant’s Address]
Telephone Number: [Tenant’s Contact Number]
(Hereinafter referred to as the “Tenant,” which includes their legal heirs, executors, and administrators as the context requires.)
The Landlord agrees to lease the following property to the Tenant for use under the terms of this agreement:
(Hereinafter referred to as the “Premises,” which includes all rights, privileges, and amenities associated with the property.)
This agreement commences on [Start Date] and terminates on [End Date] (for a fixed-term lease).
(Or: This is a periodic tenancy with no fixed term, subject to termination by notice as specified below.)
The Tenant agrees to pay the Landlord a monthly rent of:
(Note: The agreed rent must not exceed the “authorized rent” as determined under the Rent Act No. 7 of 1972 for controlled properties. Any excess payment is illegal.)
The Tenant has paid the Landlord a non-interest-bearing, refundable security deposit of LKR [Amount in Numbers]/- ([Amount in Words]) upon signing this agreement.
The security deposit serves as security for compliance with the agreement’s terms and any property damage. It will be refunded within one month of the agreement’s termination, provided the Tenant returns the Premises in good condition (excluding reasonable wear and tear) and settles all outstanding rent, utility bills, and other charges. Deductions may be made for damages or unpaid amounts.
(Note: For properties governed by the Rent Act No. 7 of 1972, the security deposit must not exceed three months’ rent.)
The Tenant agrees to:
(a) Pay the rent on the due date as specified.
(b) Use the Premises solely for [e.g., residential purposes/office use].
(c) Comply with all laws, regulations, and bylaws of the Colombo Municipal Council or other statutory authorities.
(d) Maintain the Premises, including fixtures, sanitary, and water supply systems, in good and clean condition, excluding reasonable wear and tear.
(e) Pay utility charges (e.g., electricity, water, telephone) for the Premises.
(f) Not assign, sublet, or transfer the Premises or any part thereof without the Landlord’s prior written consent.
(g) Not make structural alterations to the Premises without the Landlord’s prior written consent and approval from relevant local authorities.
(h) Promptly deliver to the Landlord any notices or assessment documents issued by local authorities regarding the Premises.
(i) Insure personal property at the Tenant’s own expense.
(j) Surrender the Premises in good condition upon termination or expiry of the agreement.
(k) Comply with the building’s rules and regulations.
(l) Repair or pay for damages to the Premises caused by the Tenant’s negligence or misuse.
(Optional: Specify a cost limit for minor repairs, e.g., LKR 5,000.)
The Landlord agrees to:
(a) Pay municipal assessment rates and taxes for the Premises (excluding those payable by the Tenant).
(b) Carry out structural or major repairs to the Premises (excluding those caused by the Tenant’s negligence).
(c) Allow the Tenant peaceful enjoyment of the Premises, provided the Tenant pays rent and complies with the agreement’s terms.
(d) Guarantee title to the Premises and compensate the Tenant for any losses due to title disputes.
(e) Refund the security deposit as per the agreement’s terms upon termination.
(Optional: Specify a cost limit for major repairs, e.g., above LKR 10,000.)
This agreement may be terminated under the following circumstances:
(a) Upon expiry of the fixed term.
(b) If the Tenant fails to pay rent for more than one month.
(c) If the Tenant uses the Premises for illegal or immoral purposes.
(d) If significant damage is caused to the Premises due to the Tenant’s misuse.
(e) If any material condition of the agreement is breached.
(f) If the Landlord or a family member reasonably requires the Premises for personal use (subject to legal requirements).
(g) For fixed-term leases: After [e.g., 6 months] from the start date, either party may terminate by giving [e.g., 2 months’] written notice.
(h) For periodic tenancies: Either party may terminate by giving at least one month’s written notice.
All terminations must follow applicable legal procedures and notice requirements.
Renewal of this agreement is subject to mutual consent between the Landlord and Tenant. The Tenant must notify the Landlord in writing (via registered post) at least [e.g., 2 months] before the agreement’s expiry if renewal is desired. Renewal terms will be determined by mutual agreement.
All notices, demands, or requests under this agreement must be in writing and are deemed delivered when handed directly or sent by registered post to the addresses specified above.
Any disputes arising from this agreement shall first be resolved through negotiation or mediation. If unresolved, either party may pursue legal action in accordance with Sri Lankan law.
This agreement is governed by the laws of the Democratic Socialist Republic of Sri Lanka, including the Rent Act No. 7 of 1972 (as amended) and other applicable regulations.
This document constitutes the entire agreement between the Landlord and Tenant, superseding all prior oral or written agreements.
The applicable stamp duty for this agreement must be paid. Registration at the Land Registry is recommended to ensure legal validity and protect the Tenant’s rights, especially under the Recovery of Possession of Premises Given on Lease Act No. 1 of 2023.
An inventory list of fixtures and furnishings in the Premises may be attached as an annex to this agreement.
The undersigned parties confirm they have read and understood all terms and conditions of this agreement.
Signed in the Presence of Witnesses:
Landlord
Name:
Signature:
Tenant
Name:
Signature:
Witnesses:
Name:
Address:
NIC Number:
Signature:
Name:
Address:
NIC Number:
Signature:
(Legal Note: Consult a lawyer before using this template to ensure compliance with Sri Lankan laws.)
[Note: Since the artifact contentType is specified as a Microsoft Word document (application/vnd.openxmlformats-officedocument.wordprocessingml.document), the following represents the content of a Word document template for a Sample Tenancy Agreement in Sri Lanka. The content is provided in a markdown format for display purposes, but it is intended to be formatted as a .docx file when downloaded or rendered. The structure and text are designed to be directly translatable into a Word document with standard formatting (e.g., headings, paragraphs, tables, and signature lines).]
# Sample Tenancy Agreement
**This Tenancy Agreement** is made on [Day] of [Month], [Year], and is governed by the property rental laws of Sri Lanka, particularly the provisions of the Rent Act No. 7 of 1972 (as amended) and other applicable laws and regulations, between the following parties:
## 1. Parties
**Landlord (Lessor):**
Name: [Full Name of Landlord]
National Identity Card Number: [NIC Number]
Address: [Landlord’s Address]
Telephone Number: [Landlord’s Contact Number]
*(Hereinafter referred to as the “Landlord,” which includes their legal heirs, executors, and administrators as the context requires.)*
**Tenant (Lessee):**
Name: [Full Name of Tenant]
National Identity Card Number: [NIC Number]
Address: [Tenant’s Address]
Telephone Number: [Tenant’s Contact Number]
*(Hereinafter referred to as the “Tenant,” which includes their legal heirs, executors, and administrators as the context requires.)*
## 2. Property Details
The Landlord agrees to lease the following property to the Tenant for use under the terms of this agreement:
- **Property Address:** [Full Address of the Property]
- **Assessment Number:** [Assessment Number]
- **Property Type:** [House/Apartment/Annex/Office Space]
- **Description of Property:** [Details such as number of floors, bedrooms, bathrooms, approximate square footage]
- **Fixtures and Furnishings Included (if any):** [List or attach as an annex]
*(Hereinafter referred to as the “Premises,” which includes all rights, privileges, and amenities associated with the property.)*
## 3. Term of the Agreement
This agreement commences on [Start Date] and terminates on [End Date] (for a fixed-term lease).
*(Or: This is a periodic tenancy with no fixed term, subject to termination by notice as specified below.)*
## 4. Rent and Payment Terms
The Tenant agrees to pay the Landlord a monthly rent of:
- **Amount:** LKR [Amount in Numbers]/- ([Amount in Words])
- **Exclusions:** [e.g., electricity and water charges excluded]
- **Due Date:** On or before the [e.g., 5th] day of each month
- **Payment Method:** [Cash/Check/Bank Transfer]
- **Bank Account Details (if applicable):** [Account Name, Account Number, Bank Branch]
*(Note: The agreed rent must not exceed the “authorized rent” as determined under the Rent Act No. 7 of 1972 for controlled properties. Any excess payment is illegal.)*
## 5. Security Deposit
The Tenant has paid the Landlord a non-interest-bearing, refundable security deposit of LKR [Amount in Numbers]/- ([Amount in Words]) upon signing this agreement.
The security deposit serves as security for compliance with the agreement’s terms and any property damage. It will be refunded within one month of the agreement’s termination, provided the Tenant returns the Premises in good condition (excluding reasonable wear and tear) and settles all outstanding rent, utility bills, and other charges. Deductions may be made for damages or unpaid amounts.
*(Note: For properties governed by the Rent Act No. 7 of 1972, the security deposit must not exceed three months’ rent.)*
## 6. Tenant’s Covenants
The Tenant agrees to:
(a) Pay the rent on the due date as specified.
(b) Use the Premises solely for [e.g., residential purposes/office use].
(c) Comply with all laws, regulations, and bylaws of the Colombo Municipal Council or other statutory authorities.
(d) Maintain the Premises, including fixtures, sanitary, and water supply systems, in good and clean condition, excluding reasonable wear and tear.
(e) Pay utility charges (e.g., electricity, water, telephone) for the Premises.
(f) Not assign, sublet, or transfer the Premises or any part thereof without the Landlord’s prior written consent.
(g) Not make structural alterations to the Premises without the Landlord’s prior written consent and approval from relevant local authorities.
(h) Promptly deliver to the Landlord any notices or assessment documents issued by local authorities regarding the Premises.
(i) Insure personal property at the Tenant’s own expense.
(j) Surrender the Premises in good condition upon termination or expiry of the agreement.
(k) Comply with the building’s rules and regulations.
(l) Repair or pay for damages to the Premises caused by the Tenant’s negligence or misuse.
*(Optional: Minor repairs costing up to LKR 5,000 shall be the Tenant’s responsibility.)*
## 7. Landlord’s Covenants
The Landlord agrees to:
(a) Pay municipal assessment rates and taxes for the Premises (excluding those payable by the Tenant).
(b) Carry out structural or major repairs to the Premises (excluding those caused by the Tenant’s negligence).
(c) Allow the Tenant peaceful enjoyment of the Premises, provided the Tenant pays rent and complies with the agreement’s terms.
(d) Guarantee title to the Premises and compensate the Tenant for any losses due to title disputes.
(e) Refund the security deposit as per the agreement’s terms upon termination.
*(Optional: Major repairs costing above LKR 10,000 shall be the Landlord’s responsibility.)*
## 8. Termination
This agreement may be terminated under the following circumstances:
(a) Upon expiry of the fixed term.
(b) If the Tenant fails to pay rent for more than one month.
(c) If the Tenant uses the Premises for illegal or immoral purposes.
(d) If significant damage is caused to the Premises due to the Tenant’s misuse.
(e) If any material condition of the agreement is breached.
(f) If the Landlord or a family member reasonably requires the Premises for personal use (subject to legal requirements).
(g) For fixed-term leases: After [e.g., 6 months] from the start date, either party may terminate by giving [e.g., 2 months’] written notice.
(h) For periodic tenancies: Either party may terminate by giving at least one month’s written notice.
All terminations must follow applicable legal procedures and notice requirements.
## 9. Renewal
Renewal of this agreement is subject to mutual consent between the Landlord and Tenant. The Tenant must notify the Landlord in writing (via registered post) at least [e.g., 2 months] before the agreement’s expiry if renewal is desired. Renewal terms will be determined by mutual agreement.
## 10. Notices
All notices, demands, or requests under this agreement must be in writing and are deemed delivered when handed directly or sent by registered post to the addresses specified above.
## 11. Dispute Resolution
Any disputes arising from this agreement shall first be resolved through negotiation or mediation. If unresolved, either party may pursue legal action in accordance with Sri Lankan law.
## 12. Governing Law
This agreement is governed by the laws of the Democratic Socialist Republic of Sri Lanka, including the Rent Act No. 7 of 1972 (as amended) and other applicable regulations.
## 13. Entire Agreement
This document constitutes the entire agreement between the Landlord and Tenant, superseding all prior oral or written agreements.
## 14. Stamp Duty and Registration
The applicable stamp duty for this agreement must be paid. Registration at the Land Registry is recommended to ensure legal validity and protect the Tenant’s rights, especially under the Recovery of Possession of Premises Given on Lease Act No. 1 of 2023.
## 15. Inventory List
An inventory list of fixtures and furnishings in the Premises may be attached as an annex to this agreement.
**The undersigned parties confirm they have read and understood all terms and conditions of this agreement.**
**Signed in the Presence of Witnesses:**
**Landlord**
Name: ___________________________
Signature: ___________________________
**Tenant**
Name: ___________________________
Signature: ___________________________
**Witnesses:**
1. Name: ___________________________
Address: ___________________________
NIC Number: ___________________________
Signature: ___________________________
2. Name: ___________________________
Address: ___________________________
NIC Number: ___________________________
Signature: ___________________________
**Legal Note:** Consult a lawyer before using this template to ensure compliance with Sri Lankan laws. This document is a general template and may require customization to meet specific legal requirements.
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[Formatting Instructions for Word Document:
- Use a professional font (e.g., Times New Roman, 12pt).
- Include a header with the title “Sample Tenancy Agreement.”
- Use bold for section headings (e.g., 1. Parties, 2. Property Details).
- Use bullet points or numbered lists for clauses (e.g., Tenant’s Covenants).
- Insert placeholders (e.g., [Full Name of Landlord]) in square brackets.
- Include signature lines with space for handwritten signatures.
- Add page numbers in the footer.
- Save as a .docx file for compatibility with Microsoft Word.]
Is a written tenancy agreement mandatory in Sri Lanka?
No, but a written agreement is strongly recommended for clarity and enforceability.
What is the maximum security deposit allowed?
For properties under the Rent Act, the deposit cannot exceed three months’ rent.
Do I need to register a tenancy agreement?
Registration is not mandatory for short-term leases but is required under the Recovery of Possession Act for certain legal protections.
Can a landlord increase rent during the lease term?
For controlled properties, rent increases require Rent Control Board approval. For non-controlled properties, increases must follow the agreement’s terms.
What happens if the tenant breaches the agreement?
The landlord can issue a notice to remedy the breach or terminate the lease, following legal procedures.
Drafting a tenancy agreement in Sri Lanka requires careful consideration of legal requirements, clear terms, and mutual agreement between the landlord and tenant. By including essential clauses, ensuring compliance with laws like the Rent Act and the Recovery of Possession Act, and consulting a legal professional, both parties can create a fair and enforceable agreement. For additional resources or property listings, visit landsale.lk.
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