New Sri Lanka Law: Companies Required to Reveal Beneficial Owners

Sri Lanka is on the brink of a significant regulatory shift with the introduction of a key amendment to the Companies Act. For the first time, businesses will be required to disclose their beneficial owners, marking an important step towards corporate transparency and aligning Sri Lanka’s business environment with international standards.

Strengthening Transparency and Accountability

The proposed amendment, now placed on Parliament’s order paper, is designed to meet an International Monetary Fund (IMF) structural benchmark and bring Sri Lanka’s beneficial ownership framework in line with Financial Action Task Force (FATF) standards. These internationally recognized guidelines aim to combat money laundering, terrorist financing, and the financing of weapons proliferation, making corporate ownership structures more transparent and accountable.

Beneficial owners are individuals who ultimately control or benefit from a company, even if they are not officially listed as legal owners. Under this new law, upon request, the public will be able to inspect relevant details such as full names and the nature and extent of ownership or control.

Key Compliance Requirements for Businesses

Businesses will need to comply with strict disclosure obligations, including maintaining a register of beneficial owners at their registered office for at least 10 years. The required information includes each owner’s:

• Full name
• Date and place of birth
• Nationality
• Residential address

Failure to disclose beneficial ownership—or submitting false information—will be considered a criminal offence, subject to fines or imprisonment. The Registrar of Companies will oversee the central registry and share information with relevant authorities when needed.

What This Means for Our Clients

As a trusted corporate service provider, ASAC is committed to guiding businesses through these changes efficiently. This amendment signals an important shift towards responsible corporate governance, where transparency is not just a legal obligation but a critical component of ethical business practices. Ensuring compliance with these regulations will be essential to protecting corporate reputations and maintaining trust among stakeholders and investors.

At ASAC, we understand that adapting to new regulatory frameworks can be complex. That’s why we provide expert guidance and tailored solutions to help your company meet these new requirements smoothly. If you need support in setting up your beneficial ownership register or understanding the compliance obligations, our team is here to assist.

Source: Ceylon Today (12/6/2025)