Page 42 - 2596-CA SR Lanka- Annual Report 2022

VALUE CREATION REPORT

OPERATING ENVIRONMENT

Macroeconomic Overview Accounting Profession - Emerging Now more than ever, technology is having
After two years of COVID related Trends a profound impact on the accounting
disruptions, the local education sector In Sri Lanka and at a global level, profession. With companies relying on
finally resumed full scale operations in the accountancy remains the language of technology driven systems to handle
early part of 2022, only to be interrupted business. It is the premise on which the repetitive work, accountants need to be
once again due to the economic crisis accounting profession has continued to technologically savvy in order to keep
and the ensuing fuel shortages and social evolve. Recent studies suggest that given pace with the changing industry. As
unrest that erupted in April 2022 and the rapid transformations taking place in intelligent technologies progress and
lasted for several months thereafter. The the modern business environment, the more companies move their information
GCE Ordinary Level and GCE Advanced demand for high quality accountants is to cloud-based systems, accountants
Level examinations for 2022 were both growing at a faster pace than the number need to be proficient in leveraging the
postponed repeatedly thus causing severe of new accountants entering the market cloud, blockchain and other sophisticated
disruption in the continuity of education annually. technology. Similarly, accounting
for thousands of students around the professionals will also need to be
country. The Country’s tertiary education In 2022, the global demand for competent in the use of data mining and
sector too was similarly affected, albeit accountants grew exponentially, other data science techniques in order to
not as severely. driven by the post-COVID recovery of serve in an advisory capacity to support
economic activity and the growth of new clients or organisations.
Notwithstanding these disruptions, businesses. Several other factors are also
government-led initiatives remained in influencing the demand for accountants The challenge for professional accounting
progress to expand the tertiary education with specialist skills. For instance, more bodies is therefore not merely to produce
infrastructure base of the country with stringent regulatory reforms in the accountants, but to ensure they are fully
several new UGC approved courses financial sector is further heightening the trained accountants who also have special
rolled across various state universities. demand for advisory services in the field skills needed to stay on par with the
The private sector also continued to of tax. changing business context.
facilitate the expansion of opportunities
in the tertiary education sector. A sizable
increase was seen in the number of
accredited programmes offered by private
sector tertiary education institutions,
thereby opening up more opportunities for
students to pursue their higher education
under different streams.

40 CA SRI LANKA | Integrated Annual Report 2022