The government is swiftly pushing new legislative reforms to overhaul the corporate registration and oversight system—part of a broader push to modernise corporate governance and align with global anti-financial crime norms.

Comprehensive Re-Registration to Renew Records

A centerpiece of the reform is a plan to re-register over 200,000 active companies, mandating that all must update and verify their information with the Registrar. This move is designed to bring months- or years-old company data up to date, enabling authorities to maintain more accurate and reliable corporate records.

New Beneficial Ownership Registry to Boost Disclosure

Another pillar of the reform agenda is the creation of a Beneficial Ownership Register. Under the proposed Companies (Amendment) Bill, businesses will be required to collect and disclose comprehensive personal details for anyone owning or controlling at least 10 percent of a company.

 This includes full name, birth details, nationality, addresses, and identification numbers. Companies must keep this register at their registered office for at least 10 years and submit updates within 14 working days of any change to the Registrar of Companies

Failure to complyor knowingly supplying false information—could trigger serious penalties, including fines and up to 10 years’ imprisonment

 Select informationsuch as names and extent of ownershipwill be accessible to the public upon request, while authorities like the Attorney-General, Financial Intelligence Unit, customs, revenue authorities, and others can access full details

While these reforms mark an alignment with Financial Action Task Force (FATF) standards and are part of meeting IMF benchmarks, non-governmental organisations have flagged concerns over exemptions.

 Specifically, offshore and overseas companies may be exempted from these disclosure rules raising fears that such loopholes could undermine transparency and accountability

.Offshore Registrations within Port City Soar

In contrast, the Port City offshore registration system remains fully operational and efficient amid ongoing digital hurdles at the national company registry. Governed under the Port City Economic Commission Act No. 11 of 2021, its process operates independently of the troubled eROC system

Companies can obtain “Authorised Person” (AP) status necessary for operating offshore in the Port City within just three working days, provided documentation is in order

 As of August 2024, over 100 companies spanning IT, finance, shipping, healthcare, tourism, real estate, and professional services had been registered as APs; 22 of those have also earned Business of Strategic Importance (BSI) designation, securing massive tax and investment incentives

Civil Society Calls for Digital and Legislative Overhaul

Public-interest groups are urging authorities to address long-standing weaknesses in national digital infrastructure calling for a fully functional e-registry system (eROC), swift passage of the new legislation, and full implementation of the beneficial ownership regime without exemptions. They argue these reforms are vital to restoring trust and enhancing resilience within the corporate governance framework.

Sri Lanka’s long-standing duty-free vehicle permit scheme, originally designed to reward senior public servants and reduce state costs on official transport, has come under fresh criticism after revelations that thousands of permits were issued despite a strict vehicle import ban.

Since 2020, the Finance Ministry has issued 25,508 duty-free permits to government employees, a senior official confirmed. These permits, which offer tax concessions of up to Rs. 3.6 million, were distributed even after the government suspended vehicle imports to conserve foreign exchange. However, recipients remain unable to use them, as no decision has been made to allow imports under the scheme.

Finance Ministry records reveal fluctuating distribution numbers over the years: 5,373 permits in 2020, 2,972 in 2021, 3,340 in 2022, 5,718 in 2023, 6,062 in 2024, and 2,043 so far in 2025. While the ministry insists the scheme remains suspended, questions are mounting over why such permits continued to be issued during a period of severe import restrictions.

Critics argue that the scheme has strayed far from its original purpose. Instead of serving as an incentive to retain skilled public servants and cut official vehicle costs, it has allegedly become a privilege for parliamentarians and senior officials. Public interest groups claim many permits have been sold or transferred to third parties for profit, effectively turning a state benefit into a tradable commodity.

The lack of transparency and accountability has only deepened public frustration. At a time when Sri Lanka is struggling to rebuild foreign reserves and manage external debt, issuing permits that could eventually trigger further foreign currency outflows is seen as poor fiscal management.

Activists stress that the government must urgently explain how it intends to manage the existing stock of permits. “This is not just a question of vehicle imports, but one of trust in how public resources are handled during economic crises,” one watchdog group observed.

The Finance Ministry is reportedly reviewing reforms to restore credibility to the system. Proposals under discussion include digitising the permit process, enforcing strict non-transfer rules, restricting eligibility to essential service roles, and introducing alternatives such as transport allowances or vehicle subsidies.

Analysts argue that a thorough audit and public disclosure of all permit holders is essential to ensure accountability. Without such measures, they warn, the system risks continuing as a loophole for privilege rather than a genuine incentive for long-serving public servants.

The President’s Fund has announced that Rs. 1 million will be granted as compensation to the families of those who lost their lives in the tragic bus accident on the Ella–Wellawaya main road last night (04), the President’s Media Division (PMD) confirmed.

The accident occurred at around 9:00 p.m. near the 24th kilometre post, when a bus carrying employees of the Tangalle Urban Council and their families, returning from a trip, veered off the road. The bus first collided with an oncoming SUV and then struck a metal barrier before plunging nearly 1,000 feet down a precipice.

Fifteen people, including Tangalle Urban Council Secretary T.W.K. Rupasena, 12 council employees, two children, and the bus driver, were killed in the tragedy.

Eighteen others, among them several children, sustained injuries and are currently receiving treatment at the Badulla Teaching Hospital.

A district-level progress review meeting on major government development programmes, including the national Prajashakthi initiative, was held yesterday (04) at the Presidential Secretariat under the chairmanship of Secretary to the President Dr. Nandika Sanath Kumanayake, the President’s Media Division (PMD) announced.

Extensive discussions focused on the implementation of Prajashakthi at district level and its future direction. Officials emphasised that the programme should not be treated merely as another poverty alleviation scheme but as a transformative initiative aligned with the national vision of building a prosperous and inclusive Sri Lanka.

District Secretaries were informed that, going forward, all development projects must originate from village-level committees, ensuring that priority is given to actual community needs rather than budgetary convenience. Funding will be channelled through the relevant ministries, departments, provincial councils, and local authorities to maintain a cohesive approach to national objectives.

The meeting also noted that the private sector is expected to play an active role in the framework of rural development under Prajashakthi. Highlighting the significant responsibility of District Secretaries, Dr. Kumanayake urged them to bring forward innovative proposals to advance the initiative as a comprehensive national programme.

In addition, the review covered directives on the implementation of the Clean Sri Lanka initiative and progress of other key government efforts, including the Mid-Year Budget Programme, District Development Programmes, Rural Roads Development, Estate Community Infrastructure Development, Disaster-Resilient Housing for plantation areas, facilities for identified schools and sports schools, measures to mitigate human-elephant conflict, and initiatives for persons with disabilities.

Attention was also drawn to government programmes targeting healthcare, education, poverty reduction by 2030, and the decentralisation of the President’s Fund to improve accessibility and impact.

It was agreed that future progress reviews will incorporate inputs from both line ministries and District Secretaries to strengthen accountability and coordination.

Among those present were Secretary to the Ministry of Rural Development, Social Security and Community Empowerment Sampath Manthrinayake; Secretary to the Ministry of Public Administration, Home Affairs, Provincial Councils and Local Government S. Aloka Bandara; Senior Additional Secretaries to the President Kapila Janaka Bandara and Roshan Gamage; Legal Adviser to the President J.M. Wijebandara; Additional Secretaries to the President Eng. S.P.C. Sugeeshwara (Clean Sri Lanka Programme) and N. Wanasingha (Food Security and Policy); and Director General of the National Budget Department Jude Nilukshan.

A state-of-the-art banana tissue culture laboratory has been established in Sri Lanka’s North Central Province, offering farmers easier access to high-quality planting materials for the first time.

The facility, located at the North Central Provincial Agriculture Department’s In-Service Training Institute in Maha Illuppallama, was developed with technical assistance from the Food and Agriculture Organization (FAO) under the South-South Cooperation (SSC) Programme with China.

The new lab is expected to supply disease-free, high-yielding banana plants to farming communities in the North Central, Northern, and North Western Provinces. Until now, growers in these areas had to rely on supplies transported from the south, a process that was both expensive and prone to transport-related losses.

Officials said the lab would significantly reduce these challenges while improving farmers’ access to healthier planting material. “By combining Sri Lanka’s commitment to agricultural development with FAO’s technical expertise and China’s support through South-South Cooperation, we are ensuring that farmers have access to the quality planting material they need to increase productivity and incomes,” FAO Representative for Sri Lanka and the Maldives, Vimlendra Sharan, noted at the launch.

FAO has supported the project by financing the procurement of advanced laboratory equipment and chemicals, while also facilitating technical training to ensure smooth operations and adherence to international standards. The training enables staff to deliver high-quality tissue culture plants that meet the growing demand in the region.

Provincial leaders emphasized that the lab is more than just a facility—it is a tool for economic empowerment. “By improving farmers’ access to high-quality planting material, we are empowering our agricultural communities, reducing costs, and paving the way for greater competitiveness in local and international markets,” North Central Province Governor Wasantha Jinadasa said.

Banana is one of Sri Lanka’s most widely cultivated fruits, with growing demand both locally and for export. However, farmers have often struggled with pests, diseases, and inconsistent planting material. Experts believe that access to tissue-cultured plants will help overcome these barriers, improve yields, and enhance the overall quality of production.

 The initiative also underscores the value of international cooperation in strengthening local agriculture. By leveraging Chinese expertise through the SSC programme and FAO’s technical knowledge, Sri Lanka is investing in a more sustainable, resilient banana industry.

Officials said the facility will directly benefit thousands of farming families, helping them improve incomes while contributing to national food security. The lab is expected to become a model for future agricultural development projects across the country.