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The proposed Protection of Occupants Bill has come under heavy criticism in Parliament, with an Opposition MP claiming that three foreign companies have already left Sri Lanka because of the legislation, while eight local companies are preparing to file fundamental rights petitions against it.

Opposition MP Ravi Karunanayake raised the issue in Parliament yesterday, urging Minister of Justice Harshana Nanayakkara to review the proposed law. Stressing the country’s fragile economic situation, Karunanayake warned that Sri Lanka could not afford to lose foreign investors.

MP Dayasiri Jayasekara also criticised the Bill, saying it appeared to favour tenants while ignoring the concerns of house owners. He cautioned that the legislation could discourage people from renting out their properties in the future.

MP Chamara Sampath Dassanayake made a more serious allegation, claiming that residents affected by Cyclone Ditwah in the Badulla District have been unable to find rental accommodation due to the new law. He said that despite receiving a government allowance of Rs. 25,000 to rent houses, many victims were still unable to secure accommodation.

Responding to the concerns, Minister Harshana Nanayakkara said the proposed legislation would only affect landlords who act unfairly or abusively. He urged house owners not to fear the law and to continue renting out their properties. The Minister also noted that members of the public could submit objections to the Bill and that it could be amended if necessary.

The Protection of Occupants Bill introduces legal provisions allowing tenants to initiate contempt of court proceedings against house owners in certain circumstances. It empowers courts to require a house owner to show cause within 14 days if they obstruct or resist a court order, including actions against officials carrying out such orders.

Under the Bill, a house owner found guilty of contempt of court may face a fine of up to Rs. 500,000, imprisonment for a term not exceeding one year, or both.

The legislation also prohibits landlords from disconnecting essential services such as water and electricity. In addition, house owners are barred from preventing tenants from repairing essential utilities, evicting tenants in violation of lease agreements, or using threats to force tenants out of rented properties.

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