Sri Lanka Consolidated Acts

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Rent Act (No. 7 of 1972) - Sect 7

Receivable rent

7.
(1) In the case of any residential premises the first assessment of the annual value of which was made prior to the date of commencement of this Act and the annual value of which, as specified in the assessment in force on the first day of January, 1969, or. if the assessment of the annual value of suck premises is made for the first time after such day, as specified in such first assessment, exceeds one hundred and fifty per centum of the relevant amount, the receivable rent per month of the premises means-
(a) where the premises have been let to a tenant, the highest amount established to the satisfaction of the board as having been received by the landlord by way of rent in respect of such premises for any month during the period of two years immediately preceding the date of commencement of this Act; or
(b) where the premises have not been let to a tenant or where the rent referred to in paragraph (a) is in the opinion of the board low, and in all other circumstances not provided for in paragraph (a), such amount as may be determined by the board :
(2) Notwithstanding anything to the contrary in any other provisions of this Act, the landlord of any premises referred to in sub-section (1) shall not demand, receive or recover, and the tenant of such premises shall not pay, as the rent of such premises, in respect of any period commencing on or after the date of commencement of this Act, any amount which is less than the receivable rent of such premises.
(3)
(a) Notwithstanding anything in any other law, the local authority within the administrative limits of which any residential premises referred to in subsection (1) are situated shall levy on the landlord of such premises, in addition to any rates leviable in respect of such premises under any other law, a special tax amounting to seventy-five per centum of the difference between the receivable rent, and the authorized rent, of such premises:
(b) The amounts collected by a local authority by way of the special tax referred to in paragraph (a) shall be remitted quarterly to the Commissioner of National Housing by the officer of the local authority authorized to recover the rates and taxes due to the local authority.
(c) The provisions relating to the imposition and recovery of rates and taxes under the Municipal Councils Ordinance, the Urban Councils Ordinance, the Town Councils Ordinance or the Village Councils Ordinance, as the case may be, shall mutatis mutandis apply to the imposition and recovery of the special tax referred to in paragraph (a).
(d) Such part of the receivable rent received by the landlord from the tenant as is equivalent to the amount payable by the landlord by way of the special tax referred to in paragraph (a) shall not, notwithstanding anything in any other written law, be deemed to be the income of the landlord.
(4) Where the landlord of any premises referred to in sub-section (1), on application made by him to the board, satisfies the board that he is unable to secure a tenant for such premises who is prepared to pay as rent for such premises the amount determined by the board under paragraph (b) of sub-section (1), the board may, as hereinafter provided and notwithstanding anything in any other law, authorize such person as in its opinion is suitable to be made the tenant thereof and who is prepared to pay such amount as rent of the premises, to occupy such premises, or where the board is unable to secure such a person, reduce the amount determined under paragraph (b) of sub-section (1).
(5) Where any person authorized by the board under sub-section (4) to occupy any premises occupies such premises, such person, shall be deemed for the purposes of this Act to be the tenant of such premises and the provisions of this Act shall apply accordingly.
(6) The exercise of the power of the board to authorize persons to occupy premises under sub-section (4) shall be subject to the right of the landlord of the premises to object to the first three persons proposed by the board to be so authorized.


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