Deloitte Sri Lanka hosted a webinar “Reforming At present for a Resilient Tomorrow: Understanding the Firms (Modification) Act No. 12 of 2025” following the enactment of the landmark modification to the Firms Act No. 7 of 2007 on 4th August 2025.
This modification marks a big step in strengthening Sri Lanka’s regulatory framework for corporates, with useful possession disclosure as its key function.
This webinar introduced collectively company legislation specialists, regulators, and Deloitte professionals to debate how these reforms will reshape enterprise practices, governance, and compliance.
Delivering the keynote, Dr. Harsha Cabral, President’s Counsel and Chairman of Nationwide Financial savings Financial institution, outlined the evolution of company legislation in Sri Lanka and the rising significance of transparency.
He highlighted that world our bodies such because the Monetary Motion Job Pressure (FATF), World Financial institution, and United Nations Workplace on Medication and Crime (UNODC) have lengthy referred to as for figuring out the actual homeowners of company entities to stop misuse of firm buildings for cash laundering, tax evasion, and different illicit actions.
Many international locations, together with Sri Lanka, started introducing useful possession declarations as early as 2018 by way of monetary establishments, and with this new modification Act these obligations at the moment are formally mandated below company legislation.
Dr Cabral emphasised that this represents not only a authorized replace however a cultural shift, inserting clear duties on administrators, secretaries, and shareholders to make sure accountability and transparency.
Shivandini Liyanage, Senior Vice President – Authorized Enforcement & Compliance on the Colombo Inventory Trade (CSE), defined how the CSE is getting ready to align its guidelines with the brand new necessities.
She famous that though laws and prescribed kinds are nonetheless to be finalised, the Central Depository Programs (CDS) should start getting ready now by establishing inside techniques, issuing pointers, and dealing carefully with brokers and custodians to determine and report useful homeowners; notably these holding 10% or extra of shares.
Given the complexity of possession buildings, she burdened that each CDS and corporations might want to strengthen due diligence processes, modernise information assortment practices, and prepare employees to make sure compliance as soon as the Act turns into totally operational.
From the regulatory perspective, Shyama Harshani, Registrar on the Registrar of Firms, detailed how the ROC will implement the brand new useful possession disclosure regime.
She defined that firms shall be required to file seven (7) key Helpful Possession (BO) kinds (B01 to B07) on the eROC portal inside prescribed timelines and with relevant charges, as to be set out within the upcoming laws.
She ensured that each one info shall be saved in a centralised registry accessible to regulators and, with sure restrictions, to the general public, reinforcing each transparency and compliance with anti-money laundering and company governance legal guidelines.
Harshani underlined that to keep away from penalties, firms should maintain tempo with regulatory updates, submit experiences on time, and keep correct BO data.
This session additionally launched Deloitte’s Inexperienced BO Circulate, a SharePoint-based automation course of that digitalises and streamlines the gathering of useful possession particulars and securely maintains a useful possession register.
By lowering handbook effort and embedding ESG rules equivalent to paperless processes and information privateness, Deloitte perceives compliance as a clear and sustainable observe by way of Inexperienced BO Circulate.
Moderating the panel dialogue, Disna Perera, Director – Company Secretarial at Deloitte Sri Lanka, shared Deloitte’s perspective on turning compliance into a chance for stronger governance. She additional emphasised “The message is evident – the bar for governance necessities has been raised.
Firms should rapidly adapt to those adjustments and leverage expertise successfully.
That is essential not solely to mitigate dangers but in addition to make sure compliance with the evolving regulatory panorama”.
The webinar reaffirmed Deloitte’s function in serving to corporates navigate regulatory reforms with confidence, offering sensible insights and proactive instruments to align compliance with long-term resilience.
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