In March 2023, the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) introduced a comprehensive roadmap to guide businesses in adopting the International Sustainability Standards Board’s (ISSB) global sustainability disclosure standards.
This initiative reflects the nation’s commitment to aligning with global sustainability benchmarks and enhancing corporate transparency.
The roadmap emphasizes a phased approach, ensuring inclusivity for businesses of all sizes while addressing stakeholder needs.
As part of this initiative, CA Sri Lanka has launched awareness campaigns, formed strategic partnerships with government and donor agencies, and developed key resources to support the transition.
Two primary standards, SLFRS S1 (General Requirements for Disclosure of Sustainability-Related Financial Information) and SLFRS S2 (Climate-Related Disclosures), were officially adopted in January 2025.
Full implementation is planned by 2030. Initial compliance targets include the top 100 companies listed on the Colombo Stock Exchange (CSE) by market capitalization, starting in 2025.
By 2026, all main-board CSE-listed entities will need to comply, with subsequent phases expanding to other listed entities and companies based on turnover thresholds. By 2030, even Empower Board-listed companies will be required to meet these standards.
To prepare for this transition, CA Sri Lanka began conducting awareness sessions in 2023, initially targeting key stakeholders.
These efforts were scaled up in 2024, with local and international experts delivering training sessions to deepen understanding of the new standards.
Additionally, the institute will introduce a readiness maturity assessment model and an Application Guideline book in early 2025 to offer businesses practical guidance and best practices for seamless implementation.
A bi-monthly Greenhouse Gas (GHG) emission certification program has also been launched to help businesses comply with reporting requirements.
CA Sri Lanka plans to assess the adoption progress of the top 100 listed companies by mid-2025 and will recognize outstanding performance in sustainability reporting at the annual TAGS awards ceremony.
CA Sri Lanka President Heshana Kuruppu emphasized the significance of this initiative in building trust and transparency through reliable sustainability-related financial disclosures.
“This is not just a response to global trends but a commitment to creating long-term value for stakeholders. The roadmap provides Sri Lankan companies with the tools and guidance they need to meet international sustainability standards seamlessly,” he stated.
Through these strategic efforts, CA Sri Lanka is positioning the country’s businesses to thrive in an increasingly sustainability-driven global economy, ensuring Sri Lanka remains competitive and aligned with international expectations.
