J.M. Wimalagoonaratne vs H.A.G. Hettiarachchi – CA APPLICATION NO.332/2000-2013

In J.M. Wimalagoonaratne v. H.A.G. Hettiarachchi (Controller of Exchange, Central Bank of Sri Lanka) and others, the court addressed whether shareholders of George Stuart Management Services (Pvt) Limited violated Section 11(2) of the Exchange Control Act through the unauthorized transfer of shares to foreign nationals or entities without required permissions. The court held that the administrative findings of contravention and the imposition of penalties were legal and reasonable, thereby reaffirming the principle that strict compliance with exchange control regulations is mandatory in matters involving foreign ownership of domestic shareholdings. Reliance was placed on the Exchange Control Act, relevant Gazette notifications, and statutory directives, with emphasis that share transfers t