The Hon. Sunil Kumara Gamage - Minister of Youth Affairs and Sports

¶ 01 Hon. Deputy Chairperson of Committees, today we are debating the Bill to amend the Companies Act, No. 7 of 2007, to introduce provisions on beneficial ownership. Through this amendment, we expect to gather information on directors, shareholders, beneficial owners and other parties with rights or interests in companies, and to bring these activities into a proper process and procedure.

¶ 02 We accept and encourage entrepreneurship and company formation. This is not to discourage investors but to ensure we know who the true businesspersons are and what their sources are. That is why this amendment is brought—to properly collect information.

¶ 03 Why is this needed? For decades, our country has been a haven for fraudsters, thieves and unlawful operators, including those earning black money, profiting from tender rackets, and looting state property. Our institutional systems suffered corruption and decline, and companies were part of that environment. We want to channel these into lawful processes so unlawful activities do not occur, and to move the country forward by enacting the required laws, including disclosure of directors, shareholders and beneficial owners.

¶ 04 This aligns with our “Clean Sri Lanka” concept—ethics, transparency and institutional legality. By gradually embedding these principles in law, we can foster a transparent corporate sector and clean businesses. No one should panic about these reforms. When you clean, only those with something to hide get anxious. With these amendments, we can ensure companies are without thieves, hidden actors or drug money investors among their shareholders.

¶ 05 Beneficial owners and directors will disclose even how they obtained their capital. This will not deter legitimate investors. Those reluctant to invest after tightening rules are the ones who cannot reveal how they earned their funds. If income was lawfully earned and taxes paid, there is nothing to fear. The ones who will worry are the robbers who thrived for decades, including some politicians and their cohorts.

¶ 06 We will not provide any pathway to launder unlawfully earned money. Turning black money white promotes such criminal enterprises; that is not our policy.

¶ 07 We also know of state officials who became billionaires on salaries of a few hundred thousand rupees. How did they become large investors? We must find the sources of the nation’s ruin; this kind of law will help.

¶ 08 Some countries make it very easy to start a business. We are trying, via reforms and new laws, to make our business environment efficient. The World Bank’s B-READY index looks at three pillars, including regulatory framework and the quality of business laws and rules, and operational efficiency in public services. Reforms like this help us gain international acceptance.

¶ 09 On support to business, a leading sports equipment trader told me yesterday that he is happy: “Minister, we now do business freely; no one asks for bribes.” That relief we gave matters. To those who say the economy is not moving forward, I invite a public discussion—tourism is growing, exports are growing, and remittances are increasing.

¶ 10 On operational efficiency, some officials still work in outdated ways and fail to answer calls or address issues. We must reform mindsets and processes, including in the Registrar of Companies, to improve service.

¶ 11 I also expected the Leader of the Opposition to contribute on the Companies Act, but he did not. Nevertheless, we will continue to bring such Bills.

¶ 12 Thank you, Hon. Deputy Chairperson of Committees.