Sectoral Oversight Committee approves Companies (Amendment) Bill

The Companies (Amendment) Bill, scheduled to be taken up for second reading debate in Parliament on July 23, received the approval of the Sectoral Oversight Committee on Environment, Agriculture and Resource Sustainability following its consideration.

This was taken up for consideration when the said Committee, chaired by Member of Parliament Hector Appuhamy, met on  July 11 at the Parliament premises.

A group of officials representing the Ministry of Trade, Commerce and Food Security, the Attorney General’s Department, and the Legal Draftsman’s Department attended  the Committee meeting.

The officials present pointed out that the proposed amendments will revise the principal legislation, the Companies Act No. 07 of 2007, which sets out provisions relating to the conduct, operations, and other essential aspects of companies. They also explained that the concept of “identification of ultimate beneficial ownership of legal persons” aims to address several existing gaps in Sri Lanka’s company law and facilitate the processes needed to combat money laundering and the financing of terrorism in the country.

Furthermore, the officials stated that, in order to protect the financial systems of every country from money launderers and those who finance terrorism, recommendations are made by the Financial Action Task Force (FATF), the main international body that sets global policies to prevent money laundering and terrorist financing. Accordingly, this Amendment Bill will give effect to Recommendation No. 40 of the Financial Action Task Force.

Members of Parliament Roshan Akmeemana, Chathuri Gangani, Upul Kithsiri, and Sudath Balagalla, along with Leader of the Opposition Sajith Premadasa, were present at this Committee meeting.