The growing investor demand for environmental, social, and governance (ESG) information from companies has long highlighted the need for a robust framework for sustainability reporting. Addressing this need, the International Sustainability Standards Board (ISSB) released its first set of standards, IFRS S1 and IFRS S2, on June 26, 2023. IFRS S1 focuses on the general requirements for disclosing sustainability-related financial information, while IFRS S2 delves into climate-specific disclosures.
As the national accounting standard setter, CA Sri Lanka actively collaborated with the ISSB to incorporate these Sustainability Disclosure Standards within the Sri Lankan context. Following a thorough review, CA Sri Lanka has issued localized versions of these standards, designated as SLFRS S1 and SLFRS S2, which will be effective from January 1, 2025.
This initiative signifies a significant step towards encouraging transparency and accountability in corporate sustainability practices within Sri Lanka, aligning with global best practices and investor expectations.
Considering the importance of sustainability reporting has prompted the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) to establish the Sustainability Disclosure Standards Committee. The Sustainability Disclosure Standards Committee to review and recommend best practices for corporate sustainability reporting in Sri Lanka, aligning with global trends and investor expectations.
