Speaker Dr. Jagath Wickramaratne today certified three major financial reform bills passed by Parliament, officially enacting the Prevention of Money Laundering (Amendment) Act, No. 16 of 2026, the Financial Transactions Reporting (Amendment) Act, No. 17 of 2026, and the Convention on the Suppression of Terrorist Financing (Amendment) Act, No. 18 of 2026.
The Prevention of Money Laundering (Amendment) Bill, passed on July 9 with a special majority following a Supreme Court ruling on Clause 14, strengthens Sri Lanka’s legal framework against money laundering. It expands the scope of offences, allows proceedings without a predicate conviction, enhances freezing and confiscation powers, introduces new asset management and disposal mechanisms, increases penalties, and broadens investigative powers and international cooperation.
The Financial Transactions Reporting (Amendment) Bill, passed with amendments, updates compliance with global standards on money laundering, terrorist financing, and proliferation financing. It introduces risk‑based and customer due diligence requirements, expands obligations for reporting institutions, includes Virtual Asset Service Providers (VASPs) as financial businesses, strengthens the Financial Intelligence Unit (FIU), extends transaction suspension orders from seven to fourteen working days, creates a National Committee on Anti‑Money Laundering and Counter‑Terrorism Financing, and improves implementation of targeted financial sanctions under UN Security Council resolutions. It also clarifies definitions and corrects inconsistencies between Sinhala and English texts.
The Convention on the Suppression of Terrorist Financing (Amendment) Bill, passed without amendments, further aligns Sri Lanka’s measures against terrorist financing with international standards and UN conventions, while supporting preparations for the country’s forthcoming Mutual Evaluation under the Financial Action Task Force (FATF) framework.
According to a Parliament statement, these reforms will safeguard the integrity of Sri Lanka’s financial system, strengthen national security, and reaffirm the country’s commitment to meeting international obligations. (Newswire)