Sri Lanka businesses urged to practice good governance : IFAC President


July 29, 2015 (LBO) – Sri Lanka’s business organization should practice good governance to build next level businesses and to support country to move ahead, Olivia Kirtley, president of the International Federation of Accountants said.

“Sri Lanka is one of the fastest growing market in the South Asia region and economic outlook for Sri Lanka seems very positive. But the challenges remains. There is always work to do,” Olivia Kirtley said.

“I have work in many organizations and seen the difference that robust governance can make in an organization,”

“So taking Sri Lanka’s businesses to the next level, is going to require, strong, embedded governance culture.”

Kirtley said no one can opt out from practicing good governance in an integrated economy.

“Sri Lanka becomes more integrated internationally and your commitment to good governance is going to be essential to Sri Lanka’s success,”

“All organizations, public and private must care about the governance.”

Corporate governance is a system of rules, practices and processes by which a company is directed and controlled.

Corporate governance essentially involves balancing the interests of the many stakeholders in a company – these include its shareholders, management, customers, suppliers, financiers, government and the community.

Since corporate governance also provides the framework for attaining a company’s objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure.

However Kirtley says rules and regulations only cannot promote good governance.

“There are going to be many rules and regulation which will come into play in the form of good governance,” Kirtley said.

“But it’s not the adequate answer,”

“It is the mindset and the commitment take towards the good governance.”

Kirtley was speaking at a Charted Accounts CEO forum held in Colombo Tuesday.