IMF-Driven Company Law Reform Shakes Sri Lankan Corporates
- CNL Reporter
- October 12, 2025
- Weekly Economic Review
- IMF, Sri Lanka
- 0 Comments
Sri Lanka’s corporate sector is facing a sweeping transformation following the enactment of the Companies (Amendment) Act No. 12 of 2025, a key IMF-backed reform aimed at enhancing transparency and accountability. The amendment, effective from August 4, mandates companies to disclose their beneficial ownership details, identifying individuals holding 10% or more of ownership.
Experts at a Deloitte Sri Lanka webinar titled “Reforming Today for a Resilient Tomorrow” said the move aligns the country’s legal framework with global anti-money laundering and corporate governance standards. Dr. Harsha Cabral, PC, described it as a “cultural shift” in business accountability, compelling directors and shareholders to take direct responsibility for corporate integrity.
According to Registrar of Companies Shyama Harshani, firms will soon be required to submit seven new beneficial ownership (BO) forms via the eROC portal, with non-compliance subject to penalties. The Colombo Stock Exchange and Central Depository Systems are also preparing system upgrades to support the new rules.
Deloitte unveiled its digital solution, Green BO Flow, to help companies automate data submissions. Analysts warn, however, that compliance costs may strain smaller firms as Sri Lanka moves toward stricter IMF-mandated transparency standards
