Speaker Dr. Jagath Wickramaratne has certified three amendment bills designed to strengthen Sri Lanka's legal framework against financial crimes, money laundering, and terrorist financing, bringing them into force as new legislation.
Sri Lanka has formally enacted three pieces of legislation aimed at tightening controls on illicit financial flows and terrorist funding. Speaker Dr. Jagath Wickramaratne certified the bills on August 4, following their passage in Parliament on July 9, 2026. The three measures—the Prevention of Money Laundering (Amendment) Act, the Financial Transactions Reporting (Amendment) Act, and the Convention on the Suppression of Terrorist Financing (Amendment) Act—are now law.
The Prevention of Money Laundering (Amendment) Act expands the scope of offences and introduces mechanisms to pursue cases without requiring prior conviction for underlying crimes. The legislation strengthens asset seizure procedures, enhances investigative powers, and increases penalties for money laundering violations. It also improves international cooperation frameworks to align with global standards.
The Financial Transactions Reporting (Amendment) Act broadens compliance requirements and brings virtual asset service providers under regulatory oversight for the first time. The law extends transaction suspension periods from seven to fourteen working days and establishes a National Committee on anti-money laundering and counter-terrorist financing. It also formalizes customer due diligence requirements and implements stronger targeted financial sanctions linked to United Nations Security Council resolutions.
The third measure updates Sri Lanka's counter-terrorist financing framework to enhance compliance with international conventions. Officials stated the combined legislation strengthens the country's financial system integrity and demonstrates commitment to Financial Action Task Force obligations ahead of an upcoming mutual evaluation process.
