New Companies Act requires full disclosure of beneficial owners amidst enforcement challenges

TARGETING hidden wealth, the new amendments to the Companies Act demands full disclosure of beneficial ownership, but secrecy and complex offshore structures will make enforcement difficult, said a panel of industry experts and stakeholders recently.

- BY DIVYA THOTAWATTE

This discussion took place at a seminar on the Companies (Amendment) Act No 12 of 2025. Organised by Corporate Management Consultants, the event brought together regulators, lawyers, and compliance officers to unpack the new law.

NSB Chairman Dr. Harsha Cabral was the keynote speaker, joined by SEC Former Chairman Dr. DC Jayasuriya and Financial Intelligence Unit Director Subhani Keerthiratne. A panel discussion also featured Registrar General of Companies Aravindi De Silva, CSE Former Chief Regulatory Officer Renuke Wijewardena, and Registrar of Companies Attorney-at-Law Shyama Harshani.

Jayasuriya, while Keerthiratne highlighted the importance of these measures. Thereby, noncompliance carries fines and criminal liability, reflecting a push for greater transparency ahead of the FATF evaluation.

The new amendment was designed to end anonymous ownership and align Sri Lanka with global anti-money laundering standards. The law requires companies to register their beneficial owners, while banning bearer shares and imposing strict disclosure, reporting, and compliance obligations, explained