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CA Sri Lanka unveils comprehensive implementation roadmap for Sustainability Standards

 

In March 2024, the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka), in its standing as the sole authority for accounting, auditing, and sustainability standards in the country, unveiled a comprehensive implementation roadmap to support the adoption of the International Sustainability Standards Board’s (ISSB) global sustainability disclosure standards. The roadmap aims to guide Sri Lankan businesses in integrating these critical standards, reflecting a commitment to enhancing transparency and aligning with global sustainability requirements.

As part of the implementation roadmap, CA Sri Lanka has already carried out several proactive initiatives to increase awareness and support the adoption of these standards among various stakeholders, including the business community. These efforts include continuous awareness sessions, strategic partnerships with government and donor agencies to build expertise in both the private and public sectors, and the development of important resources, to ensure businesses in Sri Lanka are well-equipped for the upcoming changes and are fully supported throughout the transition process.

The adoption of the Sri Lanka Sustainability Disclosure Standards, SLFRS S1 (General Requirements for Disclosure of Sustainability-Related Financial Information) and SLFRS S2 (Climate-Related Disclosures), commenced in January 2025, with full implementation planned by 2030.

This phased adoption ensures inclusiveness, tailoring requirements based on the size of businesses. Accordingly, by 2025, the first 100 listed entities (on the main board based on market capitalisation as of 1st January 2025) on the Colombo Stock Exchange (CSE) are expected to mandatorily comply with the new sustainability standards. By 2026, this requirement will be extended to all listed entities on the main board of CSE. By 2027, all listed entities on CSE, except those on the Empower Board, will need to comply with the standards for annual periods beginning on or after 1st January 2027.

By 2028, companies that prepare their accounts based on the Sri Lanka Accounting Standards, with the last two consecutive year’s annual turnover exceeding LKR 10 billion, must comply with the standards, while by 2029, this will extend to all companies that prepare their accounts based on Sri Lanka Accounting Standards with the annual turnover exceeding LKR 5 billion. By 2030, Empower Board-listed entities will also