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By: A Special Correspondent
February 16, Colombo (LNW): A group of apartment buyers has lodged a formal complaint with the Sri Lanka Police, accusing Metro Habitat (Pvt) Ltd and its directors of financial fraud, criminal breach of trust, and extortion in connection with an unfinished housing project in Colombo.
The complaint, dated February 11, 2026, has been submitted to several law enforcement and investigative divisions, including the Special Crimes Investigation Bureau, the Financial Crimes Investigation Division (FCID), and the Fraud Bureau. It relates to an apartment complex comprising 84 housing units located in Colombo 6.
Delays and Failure to Handover Apartments
According to the complainants, Metro Habitat (Pvt) Ltd entered into legally binding sales agreements with buyers for apartments in the project, with a contractual completion deadline of November 2023. The development, covering approximately 110,000 square feet, was expected to be handed over upon full settlement of payments.
However, the complainants allege that despite settling the agreed purchase prices in full, many buyers have yet to receive possession or ownership of their apartments. More than two years after the promised completion date, construction remains incomplete, and titles have not been transferred.
Alleged Additional Charges
A central feature of the complaint is the company’s alleged demand for an additional Rs. 5,500 per square foot from buyers after payments had already been finalised. The complainants claim that this demand was made unilaterally and without any contractual basis.
Collectively, these additional charges are estimated to amount to nearly Rs. 500 million across all units, placing a significant financial burden on purchasers who had already committed their life savings to the project.
Claims of Criminal Conduct
The complaint accuses the company’s board of directors of criminal breach of trust under Section 388 of the Penal Code, alleging that funds entrusted for construction and title transfer were misused.
It further alleges extortion and criminal intimidation under Sections 372 and 483, claiming that one of the directors threatened to re-sell fully paid apartments to third parties unless buyers agreed to the additional payments.
Another director is alleged to have left Sri Lanka and travelled to Australia in order to evade investigation, which complainants say demonstrates an intention to avoid legal accountability.
Requests to Authorities
The complainants have called on investigators to take several urgent steps, including:
– Freezing the company’s assets and preventing the sale of apartment units to third parties
– Issuing international and domestic travel restrictions against key directors
– Summoning the project’s notary public and chief operating officer to produce original deeds and agreements
They argue that these measures are necessary to prevent further financial losses and to safeguard evidence.
Public Warning Issued
In a public notice attached to the complaint, the affected buyers have urged members of the public to refrain from entering into any financial transactions with Metro Habitat (Pvt) Ltd until investigations are concluded.
They have also invited other individuals who may have faced similar demands to contact the Fraud Bureau and record their statements.
Growing Concerns Over Property Sector Accountability
The case has renewed concerns over regulatory oversight and consumer protection in Sri Lanka’s private apartment sector, where delayed projects and contractual disputes have increasingly affected middle-income buyers.
Legal experts note that if the allegations are substantiated, the case could set an important precedent for holding property developers and company directors personally accountable for financial misconduct.
As of now, no official statement has been issued by Metro Habitat (Pvt) Ltd in response to the allegations. Police authorities are expected to review the complaint and determine the next course of action in the coming weeks.
