13 April 2018
SRI LANKA: Company Ownership in Excess of 25% Shares to be Subject to Mandatory Reporting
Individuals who hold more than 25% stake in a company in Sri Lanka will soon see their personal details as well as details of their beneficial interest in shares reported to the country’s Registrar of Companies (ROC). This measure, recently approved by Sri Lanka’s cabinet, will be enacted through an upcoming amendment of the country’s Companies Act No.7 of 2007.
Once enacted, companies will be obliged to report details of ownership in excess of 25% stake when filing their annual income tax returns. Accordingly, the ROC will maintain a register of all such shareholders as part of the government’s bid to comply with the financial reporting guidelines set by the Financial Action Task Force, an inter-governmental body for the combatting of money laundering and terrorist financing.