IFAC President praises CA Sri Lanka’s leadership in sustainable finance

IFAC President Jean Bouquot addressing the CA Sri Lanka event 

• Highlights Sri Lanka as a model for other jurisdictions

In an address to the accountancy profession in Sri Lanka, International Federation of Accountants (IFAC) Jean Bouquot commended the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) for its exceptional leadership and pivotal role in advancing high-quality global standards.

Speaking to Chartered Accountants, including business leaders, at an event in Colombo recently, Bouquot highlighted CA Sri Lanka’s proactive efforts in adopting and implementing critical new reporting standards, positioning the nation as an example for other jurisdictions in the evolving landscape of corporate accountability and sustainability.

Central to his commendation was CA Sri Lanka’s work on SLFRS S1 and S2, which is the Sri Lankan adaptation to the groundbreaking IFRS Sustainability Disclosure Standards. “We believe the IFRS standards, starting with S1 and S2, are the right foundation for this global system,” he stated. “I want to recognise CA Sri Lanka’s exceptional leadership with the development, adoption, and implementation of these S1 and S2 standards.”

“Ultimately, we are all on the same journey, and you are helping us to embark on it together by setting an example for other jurisdictions. This is the best way to avoid the serious costs that would come with regulatory fragmentation in the standards for these disclosures. I commend and congratulate you for the excellent work, and I am sure this new presidential term will bring continued success.”

He praised CA Sri Lanka’s strategic partnerships with Government and donor agencies to build expertise across both the private and public sectors. “This is incredibly important for ensuring Sri Lanka’s reporting ecosystem evolves smoothly,” he noted.

Bouquot also celebrated CA Sri Lanka’s long-standing and influential partnership with IFAC. According to him, CA Sri Lanka has been an important part of the IFAC family for nearly 50 years. He described the Institute as a pillar of economic growth and ethical integrity, with influence extending across the region and globally through its collaboration and cooperation with peer organisations and with IFAC. He commended its members for their extraordinary work in serving both the profession and the public interest.

In his speech, he also made a crucial call to action in relation to the adoption of the ISSA 5000 assurance standard. He urged Sri Lanka’s profession to advocate for ISSA 5000 to prevent a “two-tiered system” and ensure consistent, high-quality assurance over sustainability disclosures. 

“I encourage the accountancy profession in Sri Lanka to speak strongly in favour of adoption and implementation of ISSA 5000 as the path forward. For our part, as individual professionals, we need to be ready to meet market expectations in the assurance space, and to compete with non-professionals. We cannot assume that we will maintain a strong position in the market for these services simply on the strength of our reputation. And if we do not adapt quickly, this once-in-a-lifetime opportunity will pass us by,” he said. 

On digitalisation, the President highlighted Artificial Intelligence (AI) as a transformative force, enabling accountants to shift “from scorekeeping to strategy.” While acknowledging risks like cybersecurity and bias, he framed AI as an “opportunity to add more value and increase our relevance.”

“We should always consider our professional responsibilities to address the new and still emerging risks of AI, including cybersecurity, threats to privacy, lack of transparency, and bias within AI models. But as long as we treat these risks responsibly, we have an incredible opportunity,” Bouquot said. 

He also added that the profession can use AI to shift from scorekeeping to strategy; and to participate in the transformation of our profession, rather than resist it. “The profession’s real challenge is not whether we can use AI, but it is whether we will redefine our own work before others redefine it for us,” he added. 

He also encouraged members of the professionals to increase their digital literacy and obtain practical experience. “I encourage everyone to stay engaged with what the resources CA Sri Lanka is offering as part of Continuous Professional Development (CPD), and I urge CA Sri Lanka to keep going on your journey to support your members through this transformation,” Bouquot added.