Companies Act amendment aligns it with global standards: Deloitte

ECONOMYNEXT - Changes to Sri Lanka's Companies Act passed recently will help align the country's legislation with international standards, enhance transparency and improve regulatory framework for businesses, Deloitte Sri Lanka and Maldives, a multidisciplinary professional services firm, has said.

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"The legislation improves regulatory framework for business operations, enhances transparency, and aligns Sri Lanka with international standards such as those set by the Financial Action Task Force (FATF) and the Asia-Pacific Group on Anti-Money Laundering (AML)," Deloitte said.

The amended act contains 21 amendments, which go beyond compliance, Deloitte points out, and will build investor confidence and help Sri Lanka position itself as a trusted and competitive business hub.

"These reforms will challenge companies to raise their standards, but they will also create a level playing field that benefits the entire economy," Disna Perera, Director - Corporate Secretarial, Deloitte Sri Lanka and Maldives, said.

The full analysis is reproduced below:

Companies (Amendment) Act No. 12 of 2025: What it Means for Businesses in Sri Lanka

Deloitte Sri Lanka views the Companies (Amendment) Act No. 12 of 2025, which was officially certified and passed into law on 4 th August 2025, as a major milestone for the country's corporate sector and a critical step in strengthening the governance framework.

With 21 amendments introduced, the legislation improves regulatory framework for business operations, enhances transparency, and aligns Sri Lanka with international standards such as those set by the Financial Action Task Force (FATF) and the Asia-Pacific Group on Anti-Money Laundering (AML).

These reforms are not only about compliance, but also about building investor confidence and helping Sri Lanka position itself as a trusted and competitive business hub.

The most transformative update is the introduction of beneficial ownership disclosures under sections 130A to 130J.

This requires companies, including offshore and overseas entities registered locally, to disclose and maintain up-to-date records of their beneficial owners.