Politics · Sri Lanka Bureau
Cabinet approves overhaul of century-old Trust Ordinance to reveal beneficial owners
Sri Lanka's Cabinet has cleared reforms to the 109-year-old Trust Ordinance, a significant step toward increasing financial transparency and identifying the true owners of trusts in the country.
LSN Sri Lanka ·
The Cabinet has approved amendments to the Trust Ordinance, legislation that has remained largely unchanged for over a century, to introduce measures requiring the disclosure of beneficial owners. The move represents a notable shift in Sri Lanka's approach to financial transparency and regulatory oversight of trust arrangements.
The overhaul of the ordinance is expected to strengthen mechanisms for identifying and tracking the actual beneficiaries behind trust structures, addressing long-standing concerns about opacity in the trust sector. Enhanced disclosure requirements are designed to prevent misuse of trusts for illicit purposes while maintaining the legitimate use of trust arrangements.
The amendments align Sri Lanka with international standards and best practices regarding beneficial ownership transparency. Such reforms are increasingly expected by the global financial community and international bodies monitoring financial integrity and anti-money laundering compliance.
The approval represents a significant regulatory development for the country's financial and legal sectors. Implementation details and timelines for the amended ordinance are expected to be clarified as the legislative process advances.