Message from Chief Guest

I wish to thank Prof Lakshman Watawala and CMA Sri Lanka for inviting me again for this prestigious IR awards ceremony. Sri Lanka is in a good position in corporate reporting.

Corporate Reporting is not what it used to be. Further, the make up of the market capitalization showed that only 20% of its value was expressed as additives in a balance sheet, according to financial reporting standards. The result was that many standard setters and framework providers sprung up in the ESG space.

The pandemic showed how scientists collaborated under Sustainable Development Goal (SDG) 17 to perfect a vaccine in nine months rather than nine years. I stated in 2019 prior to the COVID 19 pandemic that the framework providers and standard setters should start collaborating rather than competing. Thereafter the merger of IIRC and SASB to form the VRF, the International Financial Reporting Standards (IFRS) establishing the International Sustainability Standards Board (ISSB) were very encouraging.

Thus when Lehman Brothers collapsed it impacted adversely on the company’s financial condition (its balance sheet), its operating performance (its income statement and cash flow), as well as its profile (its cost of capital).

The ISSBs will be a global baseline standards but with a focus on enterprise value creation while the European Union (EU) has developed its Corporate Sustainability Reporting Directives which are focused on both sides of the coin.

Double Materiality Standards highlighting the People, Planet and Profit with its impact on the economy and society have been highlighted. The SASB has issued standards for 77 industries.

‘My final message: Sri Lanka can be proud of the extent to which it has progressed with its corporate reporting with the precepts of integrated reporting being at its centre.

The awards are a constant encouragement to companies in Sri Lanka to improve the quality of their integrated reports.

An integrated report definitely helps directors to discharge their duty of accountability.’

Preparers and users must be alert as to the evolution of corporate reporting which is now moving with great expedition.

I wish CMA

Sri Lanka success in their journey in

Integrated Reporting and congratulate the winners and all those who submitted applications and trust that you will continue your journey to achieve excellence.

Prof. Mervyn King Chair Emeritus of the International Integrated Reporting Council (IIRC) London, the Global Reporting Initiative (GRI) Amsterdam, a member of the Private Sector Advisory Group to the World Bank on Corporate Governance, former Judge of the Supreme Court of South Africa. Chair of the African Integrated Reporting Council and Chair of the Integrated Reporting Committee of South Africa.