PORT CITY & BENEFICIAL OWNERSHIP REGISTER

[Chandana Liyanapatabendy]

PORT CITY & BENEFICIAL OWNERSHIP REGISTER Sri Lanka’s Port City framework faces a critical test of legislative alignment. The Companies (Amendment) Act No. 12 of 2025 introduced a Beneficial Ownership Register to meet FATF transparency standards, yet a drafting oversight has left three out of four offshore company categories outside its scope. This gap, rooted in the interplay between Section 130A(10) of the Companies Act and Section 41(5) of the Port City Economic Commission Act, risks undermining the very compliance gains that removed Sri Lanka from the FATF grey list in 2023. Without swift correction, the country could face renewed scrutiny from global financial institutions threatening investor confidence and the Port City’s ambition to become a world-class financial hub. Transparency reforms must apply uniformly across all offshore structures, including those registered under the Port City regime to safeguard Sri Lanka’s credibility and ensure sustainable investment inflows. Read the full analysis in The Sunday Times: “Port City Companies and Beneficial Ownership Register” https://lnkd.in/g923qST4 https://www.sundaytimes.lk/260405/business-times/port-city-companies-and-beneficial-ownership-register-637205.html