Hon. Sarath Kumara, Attorney-at-Law

¶ 01 Hon. Deputy Speaker, I am pleased to join at this time to add several important amendments to the Companies Act, No. 07 of 2007, which governs company administration in Sri Lanka. Our Companies Act drew from New Zealand and Canadian company law. Before 2007, we had the Companies Act No. 17 of 1982. We are now further developing our company law.

¶ 02 A key point: globally, there is the FATF which issues recommendations to prevent terrorism financing and money laundering—40 recommendations. We have implemented 39, but not the 24th. Why? Because previous Governments were connected to corrupt networks and wished to shelter their backers from these laws. Today, having pledged to build a country under the rule of law, we are moving forward accordingly.

¶ 03 Under FATF Recommendation 24, we have brought amendments to reveal the beneficial owners—the ultimate beneficial owners—of companies. In the past, terrorism was a major issue in our country and funds flowed in various ways; had the FATF recommendation been implemented, we could have curbed it. Money laundering is also an ongoing challenge. We are changing old laws step by step.

¶ 04 Many invested funds through companies but society could not identify who was behind them—there was no transparency. Through these amendments, we both combat terrorism financing and money laundering and provide transparency.

¶ 05 Clause 130 of the Companies (Amendment) Bill contains provisions to this effect. Henceforth, ultimate beneficial owners cannot be hidden. If there are any limits to access within this Bill, the Right to Information Act still enables verification of who the beneficial owners are. With these amendments, we will close the space for criminally motivated investment within companies.

¶ 06 Further, within two months of commencement, company secretaries must confirm beneficial ownership and, within six months, report to the Registrar of Companies. We will not allow irregular or incomplete application of company law.

¶ 07 We remember some in Opposition asked whether our election promises—like catching thieves—would be fulfilled. Now we see those responsible for various offences being remanded. The earlier loud voices are now silent. Once this law is implemented, those shadowy operators who grew under cover will lose their space. The President said when he was in Opposition that if power came, many in the front row would be in jail—and today that is becoming reality. Many responsible for criminal governance are not here today.

¶ 08 The Leader of the Opposition spoke at length but did not address the amendments under debate. We are here to legislate for the country. Some Members, like Hon. Kabir Hashim, contributed constructively; we appreciate that. Where criticism is due, we accept it; where appreciation is due, we give it.

¶ 09 We invite those in the Opposition who wish to join hands in building a law-governed country to do so. Thank you.