SEC urges corporate leaders to embrace integrated reporting as a strategic tool

Prof. Hareendra Dissabandara	Dilshan Wirasekara Pic by Waruna Wanniarachchi

By Nishel Fernando 

The Securities and Exchange Commission (SEC) urged corporate leaders to embrace integrated reporting as a strategic tool to ultimately foster culture of transparency and accountability that benefits Sri Lankan economy and society at large.

“I urge all corporate leaders to embrace integrated reporting, not merely as a compliance requirement, but as a strategic tool for enhancing stakeholder trust, improving decision making and driving sustainable growth,” SEC Chairman Prof. Hareendra Dissabandara said.

He was addressing the 10th anniversary CMA Excellence in Integrated Reporting Awards 2024 held in Colombo this week.

Integrated reporting, which combines financial and non-financial data, provides investors with a comprehensive view of a company’s performance and prospects. Prof. Dissabandara emphasised that adopting these practices could help address the challenge of information asymmetry, enabling investors to make better-informed decisions.
The Colombo Stock Exchange (CSE) Chairman Dilshan Wirasekara also highlighted that integrated reporting could become a catalyst for Sri Lanka’s capital markets to expand and develop further. As the country comes out of restricted default credit status, he stressed that integrated reporting would play a key role in attracting foreign capital to the country.

“Having these standards in place is going to go a long way attracting foreign capital to companies. Only companies that are transparent in their reporting will be able attract some of these capital,” he added.

Prof. Dissabandara further underlined the organisational benefits of integrated reporting, particularly its role in driving medium- and long-term growth.

“Embedding integrated reporting practices when practicing management and reporting would immensely help to improve the governance of the organisation. These practices aid in identifying and managing current and future opportunities and risks, enabling businesses to focus on decision-making, capital allocation, and performance determinants for sustainable growth,” he added.

As part of its efforts to advance integrated reporting, the SEC, in collaboration with the Colombo Stock Exchange (CSE), has been promoting Environmental, Social, and Governance (ESG) policies among listed entities. This initiative has already shown promise, with over 130 listed companies, including key conglomerates, banks, financial institutions, and insurers, either fully adopting or piloting integrated reporting practices.
“This growing adoption signifies a positive shift towards greater transparency, accountability, and long-term sustainability in our capital markets, aligning Sri Lanka with global trends in corporate reporting,” Prof. Dissabandara noted.