Sustainability reporting by publicly listed companies in Sri Lanka

While many studies have investigated sustainability reporting in developed countries there is a dearth of research in developing countries. This is of particular concern, as the majority of the world's population lives in these countries, which experience their own social, political and environmental issues. One of these countries, Sri Lanka, has a population of 20.3 million and is presently experiencing post-conflict economic growth. Sri Lanka faces a number of environmental problems including land degradation, pollution, poor management of water resources, loss of bio-diversity, coastal erosion and poor industrial waste management. This study empirically examines sustainability reporting in publicly listed companies in Sri Lanka, its extent, nature and possible drivers, specifically considering the use of key performance indicators. Results indicate that there is a major focus on social indicators, despite the poor environmental record in the country. The economic context therefore appears to be a significant factor influencing how sustainability reporting develops in Sri Lanka. The findings have implications for policy makers in Sri Lanka as the trend towards foreign investment is likely to increase pressure on firms to comply with global environmental standards and guidelines.