In Sri Lanka you must register as a business with your government to be able to receive foreign funds that is why you are seeing that 'business policy' requirement. You can no longer get away with an illegal Paypal account.
According to the Central Bank of Sri Lanka, it appears that people in Sri Lanka need to register as a business first, in order to be able to receive payments in foreign currency, to their BFCA (Business Foreign Currency Account). Here's a link to their website, then click on CAN YOU ACCEPT FOREIGN CURRENCY AS EARNINGS FROM YOUR BUSINESS ACTIVITIES IN SRI LANKA?
Thank you lacemaker3
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