What is a condominium, and why does it have fees?
A condominium combines individually owned units with shared parts of a building or development. Entrances, lifts, roofs, drainage and other common facilities need maintenance even when everything inside your own apartment is in good condition.
Condominium fees are contributions towards managing and maintaining those shared responsibilities. You may see them described as management fees, maintenance charges or service charges. Ask for the written breakdown: the label alone does not tell you what a payment includes.
Editorial review: 28 September 2026. This guide explains how to assess the charges for a Sri Lankan apartment. It does not quote a market-average fee or determine the legal liability for a particular unit.
What can the regular charge cover?
The building's budget should identify the services and expenses funded by the regular contribution. Facilities, staffing, equipment, building condition and service contracts all affect the amount needed. Confirm the actual inclusions rather than assuming that two buildings with similar fees offer the same service.
| Possible expense | What to check |
|---|---|
| Cleaning and staffing | Areas covered, staffing arrangements and contractor costs |
| Shared utilities | Lighting, pumps, lifts and other common electricity or water use |
| Equipment maintenance | Lift, generator, pump and safety-system servicing |
| Facilities | Pool, gym, garden and other shared amenity upkeep |
| Administration and insurance | Management, accounts and the scope of building insurance |
| Future works | Whether a separate reserve or sinking-fund contribution is included |
Regular fees, reserve funds and extra contributions
Regular running costs and major replacements are different budget needs. A reserve or sinking fund sets money aside for future expenditure rather than spending every contribution on the current month's services. Ask what work is planned, how its cost was estimated and whether the available funds match that plan.
A building may face an additional contribution for a major repair or a funding shortfall. If one is proposed, request the scope, quotations, approval, allocation method and payment dates. An extra payment is not necessarily evidence of poor management, but unexplained or repeated shortfalls deserve investigation.
Do not judge the reserve only by its bank balance. A seemingly large sum may be inadequate when lifts, waterproofing or other expensive components need work. Equally, a low advertised fee can be misleading if necessary work is being postponed.
How is your unit's contribution calculated?
Sri Lanka's Apartment Ownership Law links contributions to the parcel's share allocation and provides for management funds and resolutions. Ask management to show the recorded allocation, approved budget and calculation for your unit; do not assume the law simply divides every bill equally or uses the advertised floor area.
If a quoted rate is expressed per square foot, ask which area is used, what the rate includes and how the method relates to the building's governing documents. Have a lawyer clarify a disputed calculation or allocation rather than relying on a sales agent's explanation.
Turn the monthly figure into an annual budget
Suppose a unit's regular charge is LKR 20,000 per month and a separately billed reserve contribution is LKR 5,000 per month. The recurring total is LKR 25,000 monthly, or LKR 300,000 annually. If an additional LKR 120,000 contribution is payable that year, the year's total becomes LKR 420,000.
These are invented figures to illustrate budgeting, not a typical Sri Lankan fee or a quotation. The LKR 420,000 total averages LKR 35,000 per month, but that average does not change the actual payment deadlines. If the reserve is already included in the regular charge, do not add it twice.
| Illustrative item | Annual amount |
|---|---|
| Regular charge: LKR 20,000 × 12 | LKR 240,000 |
| Separate reserve: LKR 5,000 × 12 | LKR 60,000 |
| Additional contribution in this example | LKR 120,000 |
| Total for the year | LKR 420,000 |
Which records should a buyer request?
Have your lawyer address outstanding charges and agreed contributions in the sale terms, and obtain an updated statement before completion. The law includes recovery provisions affecting owners and successors in title, so a seller's verbal assurance that everything is paid is not enough.
- The current fee schedule, due dates and an itemised statement for the exact unit.
- The approved budget and recent accounts, with explanations for significant changes.
- Available meeting minutes and resolutions concerning charges or major works.
- Reserve balances, planned repairs and estimates for large replacements.
- Information about unpaid contributions across the building and the unit's own arrears.
- Building insurance details, maintenance contracts and relevant service records.
- The contact responsible for billing queries and the process for raising concerns.
Owners, tenants and disputed charges
For a rental, the lease should say which charges the tenant pays, whether they are included in rent and how changes are handled. That agreement does not automatically remove an owner's obligations to the management corporation. Clarify who receives statements and who makes payments so bills are not missed.
If a charge looks wrong, request the calculation and supporting approval in writing, keep the correspondence and seek advice about the appropriate dispute process. Do not assume a disagreement makes it safe to stop paying; unpaid contributions can have legal consequences. The Condominium Management Authority is a relevant point of contact for condominium matters.
Compare the building's finances, not just its monthly fee
Compare what is included, how well services are delivered, the condition of common areas and the provision for future repairs. Look at the annual commitment alongside your loan, individual utilities and internal maintenance budget.
A useful decision comes from transparent records and an affordable total, rather than choosing the lowest charge. Before committing, make sure you understand both what is payable now and the work that could require further funding.
Frequently asked questions
Are electricity and water included?
Not necessarily. Shared-area utilities and your unit's own consumption may be billed differently. Ask for the fee breakdown and metering arrangements.
Can condominium fees increase?
Budget needs can change. Request the proposed budget, reasons, approval and notice of the new charge, and have any concerns about the process reviewed against the applicable documents and law.
Do I pay if my apartment is empty?
Do not assume vacancy removes the obligation. Shared costs continue, and you should have management or your adviser confirm the contributions payable for your unit.
Is the lowest fee the best value?
Only if the services, maintenance and funding are adequate for the building. Check for deferred repairs, unpaid contributions and future works before comparing totals.
Is a reserve contribution the same as a refundable deposit?
Do not assume so. Ask what the payment is for, how it is recorded and what happens on sale or departure. A contribution towards shared works should not be treated as personal savings you can withdraw.
Who pays arrears when an apartment is sold?
Have your lawyer check the unit statement and legal position, then document settlement and any allocation between buyer and seller before completion. Do not rely only on what the seller or agent says.
