Gungahlin Sultan Turkish Cuisine co-owner Radhika Reddy said the restaurant was supposed to be her retirement plan but the downturn has eaten into her savings.

Ms Reddy also said her staff were threatening to leave as she cuts hours to make up for the loss of trade.

"I think people are refraining from coming to Gungahlin," Ms Reddy said.

"There's no traffic flow, it's completely dead. It's a lot of hassle for people."

"Ramadan should have been a busy period for us. Even our employees are surprised at the level of trading now."

Ms Reddy has also been issued with a legal notice by her landlord for overdue rent but said her landlord was also being cautious because of the state of trade in Gungahlin.

"I've run businesses all around for about 22 years in Canberra. This is the first time I've been affected so badly," Ms Reddy said.

Liberal MLA James Milligan said he would move a motion on Wednesday calling for the ACT government to engage external contractors to investigate potential downturn and provide compensation options.

“Established family operated businesses experiencing financial losses are looking at job cuts
and extreme debt to stay afloat," Mr Milligan said.

Mr Milligan has previously called on Transport Minister Meegan Fitzharris to conduct a work health and safety assessment of the impacts of light rail construction on people working in the area and customers.

The light rail project is exempt from the Environment Protection Act 1997 and the Environment Protection Regulation 2005.

The works around Gungahlin are part of light rail construction and a redevelopment of the town centre on Hibberson Street.

Light rail works have caused similar headaches for businesses in Sydney's George Street, where the government has recently announced it would compensate affected owners.