Page 40 - CA Sri Lanka Integrated Annual Report 2023

VALUE CREATION REPORT

Operating Environment

Education Sector in Sri Lanka In the 2021/2022 academic year, sustainability reporting, talent development
Sri Lanka continued to prioritize education 41,607 students were admitted to state and client-centric service delivery were key
as a fundamental pillar of its socio- universities, reflecting the ongoing areas of focus for accounting professionals
economic development during the year efforts to provide greater opportunities in 2023. Sri Lankan firms prioritized
under review. Despite challenges, such for higher education. Similarly, for the upskilling initiatives, compliance efforts and
as lower expenditure on education as a 2022/2023 academic year, 42,147 client engagement strategies to remain
percentage of GDP compared to regional students were selected under the normal competitive in the evolving business
peers, efforts were made to enhance both intake, underscoring the commitment to landscape.
secondary and tertiary education, ensuring expanding access to tertiary education
access, quality, and relevance to meet the and accommodating the growing Challenges Faced by Accounting
needs of a rapidly evolving workforce. demand among prospective students. Professionals
However, challenges such as a weak However, amidst the opportunities
Advancements in Secondary tertiary enrollment rate (21%) and mixed presented by these trends, accounting
Education educational outcomes persist and require professionals also encountered challenges
continued attention and improvement
The secondary education sector saw strategies by the educational authorities. in 2023. These included navigating the
significant advancements in 2023, complexities of regulatory compliance,
with initiatives focused on improving Expenditure on Education managing cyber security risks in an
infrastructure, expanding school networks, increasingly digital environment,
and enhancing curriculum offerings. Sri Lanka's education expenditure as a addressing talent shortages and adapting
Notable developments included the percentage of GDP is lower than that to the rapid pace of technological change.
integration of technology in classrooms, of its regional peers, yet it surpasses Additionally, the transition to remote
vocational education programmes and South Asian benchmarks in literacy rates work posed logistical and communication
efforts to address regional disparities in (98.8%) and primary (99%) and secondary challenges for some firms, highlighting the
educational access. However, challenges (91%) enrollment rates. However, tertiary importance of agile business practices and
persist, including a shortage of subject- enrollment remains low at 21%. Exam robust infrastructure to ensure continuity
specific teachers in rural areas, particularly performance varies among students, with and resilience.
in English, science, and mathematics, improvements needed in several key
contributing to imbalanced educational subjects. Disparities exist between national The evolving dynamics in Sri Lanka's
outcomes and raising concerns among and provincial schools, exacerbated by education sector and the global trends in
stakeholders about future impact of such teacher shortages in rural areas, especially the accounting profession have profound
shortcomings. in critical subjects. In 2021, the central implications for the Chartered Accountants
government allocated Rs. 158.4 billion to (CAs) affiliated with CA Sri Lanka. As the
Transformation in Tertiary Education education, a 2.3% nominal decline from education landscape undergoes significant
2020 but a 4.3% increase from 2019. advancements aimed at enhancing access,
The tertiary education landscape witnessed From 2015 to 2021, budget allocations quality, and relevance, CA Sri Lanka plays
significant transformations, with a focus grew by 58%, with significant increases in a crucial role in ensuring that its members
on aligning higher education with market revised and actual expenditure, adjusted for are equipped with the necessary skills and
demands, fostering research and innovation inflation. knowledge to adapt to these changes. The
ecosystems and enhancing access to institution must prioritize initiatives to align
diverse student populations. Initiatives Accounting Profession its curriculum with the evolving needs of
such as scholarship programmes, distance the accounting profession, incorporating
learning opportunities and academic- Global Trends in Accounting topics such as technological integration,
industry collaborations were prioritized Globally, the accounting profession regulatory compliance, sustainability
to cater to evolving student needs and experienced profound changes in 2023 reporting and data analytics.
aspirations. driven by technological integration,
regulatory compliance, sustainability
Description Number reporting, remote work practices, and Additionally, CA Sri Lanka needs to
No. of students who sat for the 274,304 data analytics. These trends reshaped the emphasize upskilling programmes to
2022 A/L Exam profession, requiring accounting firms address talent shortages and enable its
members to navigate the complexities of
No. eligible for university 166,967 and professionals to adapt to a digital-first regulatory compliance and cyber security
admission environment, embrace innovation, and risks effectively. By fostering a culture of
No. who applied for admission 84,176 deliver value-added services to clients. continuous learning and innovation, CA Sri
No. admitted in 2021/2022 41,607 Lanka can empower its members to thrive
academic year Local Dynamics in Sri Lanka in the rapidly evolving business landscape
No. selected under normal 42,147 In Sri Lanka, accounting firms navigated and uphold the highest standards of
intake for 2022/2023 local dynamics while embracing global professionalism and service delivery.
trends in the profession. Technological
integration, regulatory changes,

38 CA Sri Lanka Integrated Annual Report 2023