News
TISL Challenges the Companies (Amendment) Bill
Transparency International Sri Lanka (TISL) filed legal action recently in the Supreme Court challenging the Bill issued on 06 August 2024 to amend the Companies Act No. 07 of 2007, TISL said in a press release.
TISL said that there are some positives in the Bill. For example the amendment introduced a much-needed anti-corruption tool to Sri Lanka’s legal framework – a Beneficial Ownership register. A publicly accessible beneficial ownership register creates a legal requirement for companies to disclose the identities of individuals who ultimately own or effectively control them and benefit from their returns. This transparency is crucial in combating corruption, conflicts of interest for public officials, money laundering and terrorist-financing, as it enables to trace and expose hidden financial activities and illicit enrichment. Beneficial ownership registries are also vital for the effective implementation of crucial laws such as the upcoming Proceeds of Crime Act.
Despite this welcome introduction, there are serious concerns over the efficacy of such a register, given the manner in which the Bill is drafted. It is vital that the Beneficial Ownership register is effective and transparent and not merely superficial. Without universal applicability, loopholes are created that undermine the entire purpose of the register. If certain companies are exempt or vital information is hidden, the register loses its effectiveness, allowing illegal activities to continue unchecked, thereby defeating the purpose of the objectives of the introduction of beneficial ownership law.
Challenging the said serious concerns, TISL’s petition points out that Section 130A (10) of the Bill exempts Offshore Companies incorporated outside Sri Lanka and registered under the Companies Act or overseas companies registered under the Companies Act from disclosing beneficial ownership information, where such companies are required to comply with the beneficial ownership registration in the respective countries of incorporation.
Exempting offshore and overseas companies from disclosing Beneficial Ownership information enables and encourages the establishment of shell companies (inactive companies created for fraudulent purposes such as money laundering), which are used as vehicles for corruption and illicit gain. Furthermore, this does not necessarily ensure that such overseas companies have registered in compliance with the Beneficial Ownership registration requirements in the respective countries. Moreover, such an exemption undermines transparency and increases the risk of conflicts of interest as Beneficial Ownership information is not widely available through the Registrar of Companies. Additionally, it requires less information from companies where the beneficial and legal owners differ, a distinction that has no reasonable connection to the internationally accepted purpose of beneficial ownership registration. TISL notes that this provision, not only undermines transparency and accountability but limits legal avenues available to prevent and deter corrupt business practices.
The petition states that this exemption creates a discriminatory classification between offshore companies, overseas companies, and other local companies, violating the fundamental right to equal protection of the law (Article 12(1) of the Constitution, as only domestic companies are subjected to disclosure requirements.
TISL further notes in the petition that Section 130D allows details of the beneficial owners of a company to be made available to the public, only upon a request for inspection by a member of the public, and the details of the beneficial owners of the company have been limited to their full names and the nature and extent of Beneficial Ownership of the company.
Information relating to beneficial owners of a company should be publicly accessible to ensure the effective implementation of the registry. Proactive disclosure of the beneficial owners of companies will not only reduce the risk of corruption but will also promote fair competition by revealing connections between companies that might otherwise be hidden. Beneficial Ownership transparency aids citizens, journalists and civil society to identify true owners of companies whereby the risk of exposure deters illegal activities. Additionally, it helps improve investor confidence by ensuring that companies are operating transparently and helps licit businesses avoid unknowingly engaging in fraudulent activity.
In its petition, TISL also raises the concern that Article 14A of the Constitution – the Right to Access Information is hindered by this Bill. By limiting the disclosure of beneficial ownership details to only names and ownership extent, Section 130D fails to provide the public with sufficient information to exercise their right to access meaningful information.
Both the Civil Society Governance Diagnostic Report of Sri Lanka and the IMF-supported Governance Diagnostic Assessment of Sri Lanka recommend to the government to implement a publicly accessible Beneficial Ownership registry. The IMF Governance Diagnostic recommendation to finalise and implement regulations to support the provision of beneficial ownership information as required by the Companies Act and to establish a public beneficial ownership registry is now converted to an actionable point in a Government Action Plan mandated in the most recent IMF review agreement that was signed in June 2024.
The petition requests the Supreme Court to determine that Clause 7 of the Bill is inconsistent with, and/or violates, Article 12(1) and Article 14A of the Constitution that enshrines the Right to Equal Protection of the Law and Right of Access to Information, and therefore, for it to be passed into law only if approved by a two-thirds majority vote of all members of Parliament, as required by Article 84(2) of the Constitution. TISL has filed this petition in the public interest, naming the Attorney General as the respondent.
News
Mercury fears over coal imports: CEJ urges urgent standards, health probe
Environmentalists have raised fresh concerns over possible mercury contamination linked to coal used at the Norochcholai coal power plant, warning that Sri Lanka still lacks binding standards on mercury content in imported coal despite mounting health risks in nearby communities.
Chairperson of the Centre for Environmental Justice (CEJ), Environmental Scientist Hemantha Withanage, said recent coal consignments suspected to be of inferior quality could contain elevated mercury levels, posing a threat to both ecosystems and human health.
“International studies show that mercury content in coal can vary significantly. For example, research on South African coal indicates a range between 0.01 and 0.49 ppm. However, Sri Lanka has still not established a maximum permissible mercury level for imported coal,” Withanage told The Island.
He pointed out that the environmental protection licence issued for the Norochcholai Coal Power Plant allows mercury emissions of up to 0.01 mg/Nm³, but stressed that regulating emissions alone is insufficient without controlling mercury content at the source.
“With no standard for mercury in imported coal, there is a serious regulatory gap. This raises legitimate concerns that recent shipments may contain higher mercury concentrations,” he said.
Withanage cited a 2018 CEJ study conducted in the Kalpitiya peninsula, near Puttalam, which found alarming levels of mercury exposure among women of childbearing age. According to the study, 28 out of 36 women—approximately 77%—had mercury levels in hair samples exceeding the internationally accepted safety threshold of 1 ppm.
“The most disturbing finding was a recorded level of 15.584 ppm in one individual. These women were regular consumers of fish from the Puttalam lagoon, suggesting a bioaccumulation pathway,” he explained.
The CEJ believes that mercury released during coal combustion at Norochcholai may enter the marine environment, eventually accumulating in fish consumed by local communities.
“Mercury is a potent neurotoxin. When released into the environment, it can transform into methylmercury and enter the food chain, particularly affecting coastal and fishing communities,” Withanage warned.
He further alleged that despite formally notifying the Central Environmental Authority and the North Western Provincial Environmental Authority at the time, there had been insufficient follow-up action.
He added:”We raised these findings years ago with the relevant authorities, but there has been little to no meaningful response. This is unacceptable given the potential public health implications.”
Environmentalists are now calling for immediate steps, including the establishment of national standards for mercury content in imported coal, independent testing of all coal consignments, and a comprehensive health assessment of communities living in proximity to the power plant.
They also stress the need for continuous monitoring of mercury levels in air emissions, marine ecosystems, and food sources such as fish.
“With growing evidence of contamination, authorities must act decisively. Public health cannot be compromised,” Withanage added.
By Ifham Nizam
Latest News
Heat Index at Caution Level in the Western, Sabaragamuwa, Southern, Eastern, North-western, Northern and North-central provinces and in Monaragala district.
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 02 April 2026, valid for 03 April 2026.
The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, Southern, Eastern, North-western, Northern and North-central provinces and in Monaragala district.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on the human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.
News
Govt. toys with the idea of moving public sector work online
Government authorities are exploring the possibility of shifting public sector work online on April 16 and 17, to maintain essential services while managing available fuel and energy amid disruptions linked to West Asia conflagration.
The proposal was discussed at the third meeting of the Cabinet-appointed committee on ensuring continuity of public services, chaired by Prime Minister Dr Harini Amarasuriya via a virtual platform, according to the President’s Media Division.
Officials highlighted that the Ministry of Health and Mass Media had reduced diesel consumption by 42% by March 31, reflecting wider government efforts to reduce fuel use across institutions. Awareness programmes on energy management at schools are scheduled for April 7 and 9, while universities are already operating online where feasible.
The Ministry of Public Administration confirmed that examinations, including the Grama Niladhari entrance test, have continued as planned. Key ministries, including Transport, Digital Economy and Justice, are maintaining operations by deploying essential staff and utilising online systems.
The committee also discussed launching a public awareness campaign to curb water wastage and promote alternative water sources, to be jointly conducted by the National Water Supply
and Drainage Board and the ‘Clean Sri Lanka’ initiative.
Guidelines for conducting official duties online have been prepared by the Ministry of Digital Economy, with a circular expected by April 20 following consultations with the Ministry of Public Administration. Plans were also reviewed to monitor daily energy consumption, fuel reserves, and public service attendance through a digital dashboard.The committee is scheduled to reconvene on April 8.
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