In September 2025, two related draft bills were gazetted: the Rent (Repeal) Bill and the Protection of Occupants Bill. These propose repealing the 1972 Act while introducing new safeguards against unlawful dispossession. Sri Lanka’s rental housing sector has been governed by the Rent Act No. 7 of 1972 for over five decades. This law provided strong tenant protections through controlled rents and restricted evictions but also limited landlords’ ability to update agreements or regain properties.
For everyday Sri Lankans tenants seeking stable homes, landlords managing family properties, or young couples searching for rentals these proposals aim to modernize rules for fairness. Tenants gain protections from arbitrary actions; landlords receive clearer paths for legitimate recovery. Public consultation, extended to March 4, 2026, allows input to refine the bills before parliamentary debate.
This article offers a neutral overview of the proposals, their key provisions, potential impacts on both parties, and the ongoing review process helping citizens understand the reforms objectively.
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Background: The Rent Act and Calls for Update
The Rent Act of 1972 fixed low rents and made evictions difficult, protecting tenants during housing shortages. It benefited many families with affordable options but discouraged property maintenance and new rentals landlords often left buildings vacant rather than risk long-term low returns.
Over time, discussions on amendments grew. Previous governments explored changes in 2023 and 2024 to address imbalances. The 2025 bills continue this effort: repealing the old Act while establishing modern occupant protections.
Many agree updates are needed tenants want security from harassment; landlords seek reasonable management rights. The proposals reflect this dual focus.
The Rent (Repeal) Bill: Transitional Provisions
The Rent (Repeal) Bill fully repeals the 1972 Act upon enactment. To ease transition, it includes savings clauses:
- No ejectment actions against existing tenants for one year from the effective date.
- No rent demands exceeding previously authorized amounts for one year.
- Pending cases before Rent Boards or courts complete within one year.
- Validation of rights under the old Act for one year.
These measures protect current tenants during changeover, allowing time for new agreements or resolutions.
The Protection of Occupants Bill: Core Safeguards
The Protection of Occupants Bill defines “occupant” as someone in lawful, undisturbed possession for over three months. It prohibits landlords from:
- Discontinuing utilities or amenities (water, electricity) without cause.
- Damaging or tampering with premises to force vacating.
- Ejecting occupants except through court order or agreement breach.
Recovery of possession requires judicial process occupants can seek court relief for violations, including restoration of services or possession. Courts handle cases expeditiously, with interim orders maintaining status quo.
Penalties for violations include fines up to Rs. 500,000, imprisonment, or both for contempt/resistance.
The bill applies to residential premises, focusing on preventing coercive tactics while allowing legitimate disputes through legal channels.
Positive Impacts for Tenants
Tenants gain structured protections. Sudden utility cuts or lockouts common complaints become illegal without court involvement. Swift hearings in Magistrate’s Courts resolve issues faster than old systems.
Lawful occupants in long-term arrangements receive assurance: dispossession only through due process. This benefits families, especially vulnerable groups, fostering stable housing.
Many tenants view it as fair evolution security without indefinite low rents.
Benefits for Landlords
Landlords obtain clearer recovery mechanisms. Court-ordered evictions for non-payment or misuse provide efficient paths, unlike prolonged old Act processes.
Prohibitions target unlawful actions, not legitimate management owners can still address breaches legally. Transitional periods ease shift from fixed rents.
Small landlords, often families relying on income gain viability for maintenance or personal use.
Public Consultation and Current Review
Gazetted on September 18, 2025, the bills opened for comments until March 4, 2026 (extended from January). Submissions go to the Ministry of Justice and National Integration.
Ongoing review incorporates feedback, ensuring balanced outcomes. This consultative approach allows refinements addressing concerns like market impacts or dispute efficiency.
A Fairer Rental Framework for All
Sri Lanka’s proposed Rent (Repeal) and Protection of Occupants Bills update decades-old laws for contemporary needs. Repealing the 1972 Act ends rigid controls; new protections prevent abuse while enabling reasonable ownership rights.
Tenants benefit from safeguards against coercion; landlords from structured recovery. Transitional measures ease change.
As consultation continues, public input shapes final laws reflecting shared goals for equitable housing.
In communities discussing rentals or families planning homes, these reforms highlight progress: balanced rules supporting stable tenancies and responsible ownership for stronger society.
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