Page 38 - annual_report_2024

36 CA Sri Lanka Integrated Annual Report 2024

Operating Environment

Education Sector in Sri Lanka Tertiary Education but as strategic partners to drive efficiency
The Government of Sri Lanka (GoSL) Despite a high enrollment rate of 99% and growth. Simultaneously, the industry
recognizes education as a fundamental in secondary education, only 21% of is facing growing pressure around
right and a cornerstone of social and students transition to tertiary education— environmental, social, and governance
economic development. Since 1947, significantly below the global average. (ESG) disclosures. Accountants are now
a free education policy from primary The number of students qualifying for expected to be proficient in international
to tertiary level in state universities has university admission far exceeds the sustainability reporting standards
ensured equitable access for all. Despite capacity of state universities. In 2022, out such as the Global Reporting Initiative
this, national education expenditure has of 166,938 qualifying students, only 23% (GRI) and Sustainability Accounting
remained low—between 1.5% and 2% of secured admission. Consequently, many Standards Board (SASB). Their roles are
GDP—placing Sri Lanka at the bottom students pursue alternative pathways: evolving to include developing accurate
among South Asian nations in terms of approximately 29,000 study overseas, data collection systems, ensuring
education spending. In 2022, only 1.5% of 60,000 enroll in private sector institutions, transparency in ESG reporting, and
GDP was allocated to education. and others engage in technical and communicating sustainability outcomes
vocational training programs. to stakeholders.
In response to increasing calls for
education reform, 2024 saw active In response, the Ministry of Education To stay competitive, continuous
discussions around raising both capital (MoE) and University Grants Commission upskilling—especially in soft skills,
and recurrent education investments (UGC) have prioritized the development technology, and specialized reporting—
across all nine provinces. These of a quality, inclusive higher education is essential. Strategic industry
discussions are tied to the newly system. Key initiatives include the creation collaborations and partnerships are
approved national policy framework, of a Quality Assurance and Accreditation becoming increasingly important to
aimed at creating a stable, long-term Council (QAAC) and reforms aimed at help professionals adapt to this dynamic
education policy unaffected by political fostering a job-oriented education model. environment.
transitions. The proposed reforms target These initiatives focus on improving
four core areas: moving away from graduate employability through Local Trends
an exam-centric model, enhancing enhanced IT skills, communication In Sri Lanka, the demand for qualified
inclusive and diversified assessments, abilities, and alignment with labor market accountants and auditors continues to
strengthening teacher capacity, and demands—thereby increasing the overall rise, driven by the increasing complexity
improving the overall quality of education. value of Sri Lanka’s human capital. of business operations and digital
transformation. Producing future-ready
Progress in Secondary Education Accountancy Profession Chartered Accountants capable of
The National Education Commission’s Global Trends navigating cross-sector challenges—
2024 Action Plan focuses on aligning The global accountancy profession both locally and globally—has become a
secondary education with current is experiencing rapid transformation, national priority.
employment and industry needs. primarily driven by digitalization,
Curriculum updates for Grades 6 to 13 automation, and evolving client Training partners and supervising
are being rolled out, with an emphasis expectations. Technological members play a pivotal role in this
on integrating modern technologies, advancements—particularly in Artificial process. By mentoring aspiring
including Artificial Intelligence, English Intelligence, data analytics, and cloud Chartered Accountants and imparting
language proficiency, and human rights computing—are revolutionizing financial both technical expertise and soft skills,
education. Alongside these updates, reporting and enabling firms to deliver they contribute significantly to shaping
schools are working to enhance student deeper business insights. Consequently, professionals who can meet the demands
guidance and counseling services to accounting firms are increasingly of the evolving accountancy profession.
better support personal and career expanding their Client Advisory Services In addition, professional development
development. Simultaneously, teacher (CAS), offering strategic, financial planning, initiatives are increasingly focusing on
training and development programs are and tech consulting support to clients. real-world exposure, ethical leadership,
being expanded to improve teaching and innovation, preparing the next
standards and the professional stature Amid economic uncertainties and rising generation of accountants to be both
of educators and other education operational costs, businesses are looking technically competent and strategically
personnel. to accountants not just for compliance insightful.