Monday May 04, 2026
Monday May 04, 2026
Monday, 4 May 2026 00:23 - - {{hitsCtrl.values.hits}}
Former SLC Chairman Shammi Silva (right) along with CEO Ashley de Silva at the ceremony of relocation of the Brain Centre at the High Performance Centre at RPICS in 2014 – File photo
By Desmond
Sri Lanka Cricket (SLC) has recently uploaded its 2024 financial statements to its website. This is a welcome step towards transparency, and one hopes that future financial statements will be made available on a more timely basis. Given the public interest in the affairs of national institutions, clarity and accessibility of financial information are essential.
While I am not a qualified accountant, a careful reading of the statements, together with the audit report, raises several matters that merit closer attention from both management and the Auditor General.
SLC has reported a deficit before tax of approximately Rs. 69 million for the year, and the audit opinion is qualified. Of particular significance is the indication that, excluding the APIT matter, provisions of approximately Rs. 320 million referred to in paragraph 5 of the audit report have not been recognised. Such an adjustment would have a significant impact on the reported reserves and the deficit for the year. This is not a minor adjustment, but one that materially affects the financial position presented in the accounts.
Matters referred to in the audit report appear to have a material impact on the reported financial position and performance. In such circumstances, it becomes important that the full implications of these matters are clearly communicated, so that users of the financial statements can properly understand their significance
More broadly, the matters referred to in the audit report appear to have a material impact on the reported financial position and performance. In such circumstances, it becomes important that the full implications of these matters are clearly communicated, so that users of the financial statements can properly understand their significance.
At a time when financial discipline and accountability are under increasing public focus, the role of the Auditor General is especially significant. Clear and transparent reporting — particularly where qualifications arise — helps ensure that users are not left to interpret complex implications solely from the notes to the accounts.
One matter relates to APIT not deducted, amounting to approximately Rs. 3,216 million. It is important to note that non-deduction of APIT by an employer does not, in itself, determine the existence of a tax liability, as the employees concerned may have declared the income and paid the applicable taxes. The issue, therefore, is not merely one of tax payable, but of compliance and potential penalties. Greater clarity in this regard would assist users in understanding the extent of any potential exposure.
Similarly, the recoverability of VAT receivables of approximately Rs. 1,095 million raises important questions. It would be useful to examine whether the underlying supplier invoices are available and valid to support the input tax claims, and whether any portion of this balance may require impairment.
The balance of supplier advances, other advances, deposits, and prepayments, amounting to approximately Rs. 375 million (Note 20.1), also warrants attention. It would be important to assess the extent to which these amounts are recoverable, and whether appropriate provisions are required where recovery is uncertain.
At a time when financial discipline and accountability are under increasing public focus, the role of the Auditor General is especially significant. Clear and transparent reporting — particularly where qualifications arise — helps ensure that users are not left to interpret complex implications solely from the notes to the accounts
Grants appear to be a significant component of expenditure. It would be useful for the financial statements to clearly set out the accounting policy governing the recognition of grants, including the treatment of advances. With advances against grants of approximately Rs. 430 million, clarity in policy would help ensure consistency and avoid potential timing differences affecting reported results.
In addition, while the disclosure relating to pending litigation is extensive, it may be helpful, where possible, to provide an indication of the potential financial exposure arising from such matters. Quantification, where a reasonable estimate can be made, would enhance the usefulness of these disclosures to users seeking to understand their possible financial impact.
These observations are made in good faith and with respect. They are not intended as criticism, but as a call for greater clarity and discipline in financial reporting — particularly for an institution that holds public trust and manages significant financial resources. Points for the newly appointed board to consider seriously.
Enhanced transparency, clearer disclosure of key matters, and more explicit accounting policies will further strengthen confidence in SLC’s financial reporting and support the standards expected of a national institution.
Enhanced transparency, clearer disclosure of key matters, and more explicit accounting policies will further strengthen confidence in SLC’s financial reporting and support the standards expected of a national institution
