⚖️ Protection of Occupants Bill 2025: Balancing Tenant Rights and Property Risks

The proposed Protection of Occupants Bill, 2025 is facing significant scrutiny for potentially destabilizing Sri Lanka’s real estate and rental markets. While intended to prevent unlawful evictions, experts warn the current draft could reverse recent progress in property law. • Key Provisions & Thresholds The Bill applies to any "occupant" in lawful possession for over 3 months. It prohibits landlords from disconnecting utilities (water/electricity) or using "self-help" eviction methods, even in cases of clear contractual default. • Legal & Economic Concerns • Moral Hazard: Landlords may be legally compelled to maintain defaulting tenants (paying for their utilities and services) while lengthy court proceedings (3–9 months) unfold. • Market Contraction: Increased risks may lead property owners to withdraw from the leasing market, shift to informal arrangements, or demand higher security deposits. • Investment Climate: Critics, including former Justice Minister Ali Sabry, warn the bill undermines the Recovery of Possession Act No. 1 of 2023, potentially deterring foreign investment in the condominium and housing sectors. • Proposed Refinements Legal experts suggest making statutory protection conditional: "No payment, no protection." This would require tenants to stay current on rent and utility bills to qualify for the Bill’s safeguards. _Note: Based on the draft Bill published in the Government Gazette and ongoing public consultation ending March 2026._