Committee to Protect Journalists (CPJ) and Human Rights Watch (HRW), both based in New York, have condemned the move as the code awaits ratification by the Parliament.
"A draft media code introduced in the Sri Lankan parliament would impose harsh restrictions on journalists' ability to report freely," the Committee to Protect Journalists has said.
The code to be introduced by the Ministry of Mass Media and Information, uses broad and vaguely worded language to prohibit "criticisms affecting foreign relations" and content that "promotes anti-national attitudes."
"Sri Lankan journalists are already under enormous pressure not to be critical of the government, and the vagueness of this code will likely lead to greater self-censorship to avoid government retaliation," said Brad Adams, the HRW's Asia director.
Keheliya Rambukwella, the minister of mass media and information, downplayed the affects and said that it would be a MoU between the state and the journalists.