PARLIAMENT OF THE DEMOCRATIC

SOCIALIST REPUBLIC OF
SRI LANKA

TRUSTS (AMENDMENT) ACT, No. 6 OF 2018

[Certified on 28th of March, 2018]

Printed on the Order of Government

Published as a Supplement to Part II of the Gazette of the Democratic

Socialist Republic of Sri Lanka of March 29, 2018

PRINTED AT THE DEPARTMENT OF GOVERNMENT PRINTING, SRI LANKA

TO BE PURCHASED AT THE GOVERNMENT PUBLICATIONS BUREAU, COLOMBO 5

Price : Rs. 8.00 Postage : Rs. 10.00

This Act can be downloaded from www.documents.gov.lk

 Trusts (Amendment) Act, No. 6 of 2018 1

[Certified on 28th of March, 2018]

L.D.—O. 24/2016

AN ACT TO AMEND THE TRUSTS ORDINANCE (CHAPTER 87)

BE it enacted by the Parliament of the Democratic Socialist

Republic of Sri Lanka as follows:—

1. This Act may be cited as the Trusts (Amendment) Short title.

Act, No. 6 of 2018.

2. Section 3 of the Trusts Ordinance (Chapter 87) Amendment of

(hereinafter referred to as the “principal enactment”) is hereby section 3 of
Chapter 87.
amended as follows:—

(1) by the repeal of paragraph (e) of that section and

the substitution therefor, of the following
paragraph:—

“(e) “beneficiary” means a person, or a defined or

definitely ascertainable class of persons, for
whose benefit the confidence is accepted;”;

(2) by the addition immediately after paragraph (o) of

that section, of the following paragraphs:—

“(p) “express trust” means a trust that is created

by the author of the trust generally in the
form of an instrument in writing with certainty
indicating the intention of the trust, but does
not include a constructive trust or a de facto
trust, whether charitable or not;

(q) “prescribed” means prescribed by regulations

made under this Act.”.
2—PL 010603—2,977 (01/2018)
 2 Trusts (Amendment) Act, No. 6 of 2018

Insertion of new 3. The following new sections are hereby inserted

sections 6A and
6B in the
immediately after section 6 of the principal enactment and
principal shall have effect as sections 6A and 6B of that enactment:-
enactment.

“Registrar- 6A. (1) The Registrar-General shall prepare

General to
and maintain a register containing such
maintain a
register of information as may be prescribed in respect of
trusts. every express trust created in compliance with
section 5.

(2) The trustee of any immovable or

movable property in respect of an express trust,
shall forward to the Registrar-General for the
purpose of subsection (1), all such information
relating to the trust, as may be prescribed.

Duty of the 6B. (1) The Registrar-General shall, on a

Registrar-
request made by the Financial Intelligence
General to
provide Unit, or by any other authority with the written
information sanction of the Financial Intelligence Unit,
of trusts.
provide to the Financial Intelligence Unit or
such other authority any information relating
to any express trust, kept in the register
maintained under section 6A.

(2) For the purpose of subsection (1), the

Financial Intelligence Unit shall be the
Financial Intelligence Unit that may be
designated under the Financial Transactions
Reporting Act, No. 6 of 2006.”.

Insertion of new 4. The following new sections are hereby inserted

sections 19A,19 B
and 19C in the
immediately after section 19 of the principal enactment and
principal shall have effect as sections 19 A, 19 B and 19C of that
enactment. enactment:—
 Trusts (Amendment) Act, No. 6 of 2018 3

“Trustee to 19A. (1) A trustee shall keep records of all

keep updated
such information as may be prescribed, on the
information
on identity in identity of the following persons at the time of
record. creation of an express trust under section 6:—

(a) the trustee himself;

(b) the co-trustees, if any;

(c) the author of the trust;

(d) the beneficiary, to the greatest

extent possible; and

(e) any other person engaged in the

execution of the trust in the capacity
of an agent, a legal representative, a
manager, an investment advisor or a
tax advisor, an accountant or
otherwise.

(2) The information under subsection (1)

shall be verified and updated every three
months, to the greatest extent possible.

(3) Where an express trust has been created

for the benefit of a class of persons, all such
information as may be prescribed, on the
identity of every person belonging to such class
of persons, to the greatest extent possible, shall
be kept in record under subsection (1).

(4) Where an express trust has been created

for the benefit of a person other than a natural
person, the information on the identity of the
natural person who is the beneficial owner of
the trust, shall be kept in record under
subsection (1).
4 Trusts (Amendment) Act, No. 6 of 2018

(5) A trustee shall maintain records of

information of any person referred to in
subsections (1), (2), (3) and (4), at least for a
period of six years from the date on which such
person’s involvement with the trust ceases to
exist.

(6) For the purposes of this section,

“beneficial owner” means a natural person or
persons who ultimately own the benefits of an
express trust or control the trust property or the
person or persons on whose behalf an express
trust is being created and includes the person
or persons who exercise ultimate effective
control over a person or a body of persons,
whether incorporated or unincorporated.

Trustee to 19B. (1) (a) A trustee and a co-trustee, if any,

provide of an express trust shall provide to any relevant
updated
information
authority, any information in the record
of identity to maintained under section 19A, in respect of
relevant any person referred to in that section whenever
authorities. such trustee is required to provide such
information by such authority.

(b) For the purpose of paragraph (a), the

“relevant authority” means –

(i) any public authority assigned with

the responsibility of preventing
money laundering and suppression
of terrorist financing; or

(ii) any authority that performs the

function of investigating and
prosecuting money laundering and
terrorist financing associated
offences and seizing or freezing and
confiscating assets relating to such
offences.
 Trusts (Amendment) Act, No. 6 of 2018 5

(2) (a) A trustee of an express trust shall,

when entering into a continuing business
relationship or conducting any transaction or
carrying out any occasional transaction,
exceeding a financial limit as may be
prescribed, with any institution carrying out
financial business or designated non-finance
business, provide updated information on the
identity of any person referred to in section
19A or of the trust property which is subject to
the business relationship, as is required by such
institution.

(b) For the purpose of paragraph (a),

the expressions “designated non-finance
business”, “finance business” and “occasional
transaction’’, shall have the same meanings as
in the Financial Transactions Reporting
Act, No. 6 of 2006.

Penalty for 19C. A trustee who acts in contravention of

contravention the provisions of sections 6A, 19, 19A and 19B
of sections
6A, 19, 19 A
shall be guilty of an offence under this Act and
and 19 B . shall, on conviction by a Magistrate, be liable
to a fine not exceeding two hundred thousand
rupees or to imprisonment for a term not
exceeding two years or to both such fine and
imprisonment.”.

5. Section 72 of the principal enactment is hereby Amendment of

amended by the substitution for the words “by his discharge section 72 of the
principal
from his office.”, of the words and figure “by his discharge enactment.
from his office or on such trustee being convicted of an
offence under section 19C.”.

6. Section 75 of the principal enactment is hereby Amendment of

amended, in subsection (1) of that section, by the substitution section 75 of the
principal
for the words “or accepts an inconsistent trust,”, of the words enactment.
and figure “or accepts an inconsistent trust, or is convicted
of an offence under section 19C,”.
 6 Trusts (Amendment) Act, No. 6 of 2018

Insertion of new 7. The following new section is hereby inserted

section 115 A in
immediately after section 115 of the principal enactment
the principal
enactment. and shall have effect as section 115A of that enactment:-

“Regulations. 115A. (1) The Minister may make regulations

in respect of all matters required by this Act to
be prescribed or in respect of which regulations
are authorized by this Act to be made.

(2) Every regulation made by the Minister

under subsection (1) shall be published in the
Gazette and shall come into operation on the
date of such publication or on such later date
as may be specified therein.

(3) Every regulation made by the Minister

shall, as soon as convenient, be brought before
Parliament for approval. Every regulation
which is not so approved shall be deemed to
be rescinded from the date of disapproval but
without prejudice to anything previously done
thereunder.

(4) Notification of the date on which any

regulation is deemed to be rescinded shall be
published in the Gazette.”.

Sinhala text to 8. In the event of any inconsistency between the Sinhala

prevail in case and Tamil texts of this Act, the Sinhala text shall prevail.
of inconsistency.
 Trusts (Amendment) Act, No. 6 of 2018 7

English Acts of the Parliament can be purchased at the “PRAKASHANA PIYASA”, DEPARTMENT OF
GOVERNMENT PRINTING, NO. 118, DR. DANISTER DE SILVA MAWATHA, COLOMBO 8.