Sri Lanka's Controversial 'Protection of Occupants Bill': What You Need to Know (2026)

The Sri Lankan government's 'Protection of Occupants Bill' is facing intense scrutiny, with three foreign companies exiting the country and eight local companies threatening legal action. The bill, which aims to protect tenants' rights, has sparked a heated debate in Parliament.

Opposition MP Ravi Karunanayake revealed that the bill's provisions could potentially drive away foreign investors, a crucial sector for the country's economy. He urged the Minister of Justice, Harshana Nanayakkara, to reconsider the bill's impact on the investment climate.

However, the bill's critics argue that it disproportionately benefits tenants at the expense of landlords. MP Dayasiri Jayasekara warns that this could discourage people from renting properties in the future, creating a housing market imbalance.

The situation takes a more critical turn with the Cyclone Ditwah victims in Badulla District. MP Chamara Sampath Dassanayake alleges that the new law has prevented these affected individuals from finding rental accommodation, despite the government's financial assistance.

Minister Nanayakkara, however, defended the bill, stating that only landlords who act abusively will be impacted. He encouraged landlords to rent their properties without fear and assured the public that the bill can be amended based on feedback.

The bill introduces a unique legal provision, allowing tenants to charge house owners for contempt of court if they fail to comply with court orders. This includes the obligation to provide essential supplies like water and electricity and to allow repairs.

Despite the controversy, the 'Protection of Occupants Bill' aims to provide a fair legal framework for both tenants and landlords, ensuring that essential rights and responsibilities are upheld. The public's input will be crucial in shaping the final version of this legislation.

Sri Lanka's Controversial 'Protection of Occupants Bill': What You Need to Know (2026)
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