Sri Lanka Joins Global Drive to Adopt IFRS Sustainability Disclosure Standards

Strategic Insights -

Sri Lanka has become the first country in South Asia to join the global drive to adopt the International Sustainability Standards Board (ISSB) Standards. As part of this effort, the IFRS Foundation has released jurisdictional profiles, including Sri Lanka, providing capital markets with greater transparency on how countries are aligning with the ISSB Standards. This marks a significant milestone towards establishing a global baseline for sustainability disclosures, driven by the IFRS Foundation's Regulatory Implementation Programme and capacity-building tools such as the IFRS Knowledge Hub on sustainability.

Key Takeaways:

  • Sri Lanka has formally committed to fully adopting the ISSB Standards, becoming the first country in South Asia to do so.
  • The adoption of the SLFRS S1 and S2 standards, which enable transparent, consistent, and comparable reporting, is a significant step in embedding sustainability into mainstream financial reporting.
  • CA Sri Lanka, the national standard-setter, plays a pivotal role in aligning Sri Lanka's regulatory environment with international best practices.
  • Sri Lanka's adoption of the ISSB Standards marks a shared recognition of the need for high-quality, comparable sustainability-related information to serve investors worldwide.
  • The phased adoption of the ISSB Standards is aimed at ensuring inclusiveness, tailoring requirements based on the size of businesses.
  • The Colombo Stock Exchange (CSE) is expected to mandatorily comply with the new sustainability standards by 2030.
  • By 2025, the first 100 listed entities on the Main Board based on market capitalization as of 1 January 2025 will be required to mandatorily comply with the standards.
  • CA Sri Lanka has successfully delivered over 60 Continuous Professional Development (CPD) hours by July 2025 to foster a culture of sustainability and transparency in corporate reporting.
  • The Institute has launched quarterly sessions on greenhouse gas (GHG) quantification and reporting, monthly webinars, and sector-specific knowledge-sharing to ensure practitioners and preparers are equipped to meet the evolving expectations under SLFRS S1 and S2.

Statistics:

  • 17 jurisdictions, including Sri Lanka, have formally committed to fully adopting the ISSB Standards.
  • The IFRS Foundation has released jurisdictional profiles for the 17 countries, providing greater transparency on how countries are aligning with the ISSB Standards.
  • 60 CPD hours have been successfully delivered by CA Sri Lanka by July 2025 to foster a culture of sustainability and transparency in corporate reporting.
  • The phased adoption of the ISSB Standards aims to ensure inclusiveness, tailoring requirements based on the size of businesses.
  • 100 listed entities on the Main Board based on market capitalization as of 1 January 2025 will be required to mandatorily comply with the standards by 2025.
  • The full implementation of the ISSB Standards is planned by 2030.

Sources:

  • IFRS Foundation's jurisdictional profiles
  • CA Sri Lanka's press release on the adoption of the ISSB Standards
  • IFRS Foundation's Regulatory Implementation Programme and capacity-building tools such as the IFRS Knowledge Hub on sustainability