People will not rent houses, Ali Sabry warns of risks under new law
Former Justice Minister Ali Sabry PC has warned that the proposed Protection of Occupants Bill, 2025, though well-intentioned, could have serious legal and economic consequences if enacted in its current form.
In a detailed statement, Sabry said 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 noted 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. Any legislative move that reverses those reforms, he cautioned, must be approached carefully.
Sabry highlighted practical concerns arising from the proposed Bill, particularly in cases where tenants default on rent, utility payments, or condominium management charges. 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.
“This effectively obliges property owners to finance defaulting tenants,” he said, adding that such provisions amount to protecting non-compliance rather than lawful occupation.
He stressed 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.
The former minister 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 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 said 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.
As an alternative, Sabry suggested that the issue could be addressed through targeted amendments to the existing 2023 Act rather than introducing a new statutory regime. He 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 said, arguing that such safeguards would strengthen, not weaken, tenant protection by preserving contractual integrity and maintaining confidence in the rental market.
Sabry 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. (Newswire)
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