Deputy Finance Minister calls for stronger ethics, transparency, collaboration in corporate reporting

• Says SL like much of the world operates in environment where critical data needed for sound decisions is not freely or readily available
• Points to criticisms that corporate reports often ignore negative impacts, turning reporting into form of advocacy or marketing

Deputy Finance Minister Dr. Anil Jayantha Fernando

Deputy Finance Minister Dr. Anil Jayantha Fernando urged Sri Lankan corporates to move beyond compliance-driven disclosures and embrace integrated reporting as a tool for ethical decision-making, transparency and societal transformation, warning that information asymmetry remains a persistent barrier to good governance.

Addressing the CMA Excellence in Integrated Reporting Excellence Awards on Monday, Dr. Fernando said that despite rapid advancements in technology and reporting standards, Sri Lanka like much of the world continues to operate within an “information-asymmetric society” where critical data needed for sound decisions is not freely or readily available.

“Information asymmetry is one of the key issues globally. We speak of openness and access, but even what should be publicly available for informed decisions often is not,” he said, adding that integrated reporting plays a vital role in bridging this gap.

Dr. Fernando stressed that integrated reporting must go beyond traditional shareholder-oriented disclosure frameworks and serve a broader set of stakeholders with information that is genuinely relevant and useful. 

“We must ask ourselves: What do we report, why do we report, and do we actually use this information for decision-making or are decisions influenced by other factors?” he asked.

The Deputy Minister acknowledged existing criticisms that corporate reports often highlight good practices while ignoring negative impacts, turning reporting into a form of advocacy or marketing.

“There is a valid concern about whether substantive actions support what we report. Reporting can sometimes showcase only the ‘good things’. The challenge is to ensure that reporting frameworks reflect genuine corporate behaviour,” he said.

Dr. Fernando noted that despite these concerns, reporting standards have significantly improved over the past decades, crediting collective efforts by corporates, regulators and professional bodies such as CMA Sri Lanka. 

He urged continued progress toward reporting practices “truly demonstrated by corporate actions.”

Highlighting the enormous influence corporates hold in shaping society, the Deputy Minister stressed that governance and ethical conduct must accompany reporting improvements.

“Corporations have enormous power to make things happen for good or bad. The question is, what is the right thing to do?” he said. He pointed out that interpretations of “right” may vary, but ethics, cooperation and trust-building are essential to navigate societal challenges.

He tied this into the government’s broader reform agenda, noting that Sri Lanka’s political and economic transformation requires active participation from the corporate sector. 

“We have embarked on this journey with the sacred objective of transforming society. Corporate cooperation matters for this good cause,” he added.

Dr. Fernando linked these themes to global challenges such as climate change and sustainability, arguing that local solutions alone will not suffice.

“Solutions to many big questions today lie at the global level. They depend on cooperation, collaboration, ethical conduct and partnerships,” he said.

The Deputy Minister reiterated that the Government places strong emphasis on human capital as a pillar of long-term national development.

“We strongly believe in the power of human resource as a key fundamental for overcoming challenges and transforming society,” he said, underscoring that policy reforms are designed to unlock human potential at all levels.

He ended with a call for collective responsibility across all sectors: “Government is not alienated from society; we are part of it. All stakeholders must join hands to contribute to the highest capacity toward a society where we can live in harmony and peace, respecting humanity.”

Dr. Fernando also commended CMA Sri Lanka, Prof. Lakshman Watawala, the organising team, the Colombo Stock Exchange and all participating companies for strengthening the integrated reporting movement.