Under the new guidelines, a business is defined as women-owned if females own more than 50% of it. A business is considered women-led if it is at least 20% female-owned, includes at least one female as a major decision-maker, and has women comprising at least 30% of its board of directors, if such a board exists.
To ensure consistency and reliability in data reporting, the CBSL has outlined specific parameters for initial data collection. These parameters include verifying business ownership through documents such as the Certificate of Incorporation for limited liability companies, which must list shareholder names and their ownership percentages as shown in Form 15 “Annual Return of a Company” and Form 6 “Notice of Issue of Shares.”
Sole proprietorships must present a Certificate of Registration of Business Name issued by the Divisional Secretariat, confirming 100% ownership by the individual.
These directives were made public recently in a letter to the Finance Companies in relation to the publishing of quarterly FinNet returns in relation to the National Financial Inclusion Council Survey and the District Wise Credit Exposures.
Partnerships require a Certificate of Registration of Business Name from the Divisional Secretariat and a Partnership Agreement detailing ownership percentages or equal ownership division among partners. For cooperative societies, a Certificate of Registration from the Commissioner of Cooperative Development and a Membership Register detailing member contributions are necessary.
The directive also defines a ‘major decision maker’ in businesses, specifying roles such as CEO, COO, or CFO for LLCs. In sole proprietorships, the owner automatically qualifies as the decision maker. For partnerships, it includes individuals who influence daily business decisions, which can be evidenced by their understanding of product branding, pricing strategies, and inventory management.
In cases where formal ownership of a business cannot be clearly established, the Central Bank of Sri Lanka’s directive provides additional parameters to recognize women’s control and engagement in business operations.
This includes evaluating if a woman has beneficial ownership, access, and decision-making authority over the business’s physical or financial resources. Evidence to establish this may include business assets registered under a woman’s name, like property deeds or vehicle leases, and business-related bank transactions processed in her name. This approach helps in identifying and supporting women-led businesses where traditional ownership structures might not be apparent. (TP)
