Former Justice Minister Ali Sabry PC has warned that the proposed Protection of Occupants Bill 2025, noting that although well-intentioned, the piece of legislation could have serious legal and economic consequences if enacted in its current form.
Sabry had posted a detailed statement on the proposed law noting that while preventing harassment and unlawful eviction is a legitimate public objective, the draft law risks undermining Sri Lanka’s rental market and harming tenants themselves.
He has reportedly observed that Sri Lanka has moved away from rigid statutory tenancy regimes such as the 1972 Rent Act and has only recently adopted a more balanced legal framework through the Recovery of Possession of Premises Given on Lease Act, No. 1 of 2023 and has warned that any legislative move that reverses those reforms must be approached carefully.
According to Sabry, under the new law, landlords could be compelled to restore essential services and continue maintaining occupants while court proceedings are ongoing, even where tenants are in clear contractual breach, are practical concerns arising from the proposed Bill, particularly in cases where tenants default on rent, utility payments, or condominium management charges.
“This effectively obliges property owners to finance defaulting tenants,” he has said, adding that such provisions amount to protecting non-compliance rather than lawful occupation.
He has pointed out that tenant protection cannot exist without corresponding tenant responsibility, warning that uninterrupted statutory protection despite non-payment would create moral hazard and encourage abuse of legal safeguards.
He has also pointed out that condominium living involves multiple stakeholders, including management corporations and other unit owners, and that defaults by tenants have broader financial implications beyond the landlord alone.
Sabry has further warned that the proposed Bill cuts across the framework established by Act No. 1 of 2023, introducing overlapping remedies, interim protections without testing compliance, and legal uncertainty that could weaken enforcement and judicial coherence
He has further noted that the likely economic impact would include landlords withdrawing properties from the rental market, demanding higher deposits, or shifting to informal leasing arrangements, ultimately reducing housing supply and driving up rental prices.
Sabry has also suggested alternatives to addressing current concerns noting that the issue could be addressed through targeted amendments to the existing 2023 Act rather than introducing a new statutory regime. He has proposed making tenant protection conditional on compliance, including payment of rent or depositing rent in court, settlement of utility bills, and clearance of condominium management charges.
“No payment, no protection,” he has noted, arguing that such safeguards would strengthen, not weaken, tenant protection by preserving contractual integrity and maintaining confidence in the rental market.
Former Minister Sabry has also urged authorities to reconsider and refine the proposed legislation, warning that Sri Lanka cannot afford to return to outdated statutory tenancy models under the guise of reform.
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