CMA launches Sri Lanka Cost Accounting Standards

• To ensure proper costing of products and services and achieve efficiency, productivity, competitiveness and global markets with benefits flowing to society

The Institute of Certified Management Accountants of Sri Lanka (CMA Sri Lanka) is set to mark a significant milestone in the country’s professional and economic landscape with the official launch of the Cost Accounting Standards of Sri Lanka. 

This important initiative is aimed at strengthening cost and management accounting practices across both public and private sectors, enhancing transparency, efficiency, productivity, competitiveness and strategic decision-making.

These standards have been developed with the support of the Indian Cost Accounting Standards and have been adapted to meet Sri Lankan requirements.

The ceremonial launch is held today at Taj Samudra, Crystal Ballroom, Colombo. 

The chief guest is Labour Minister and Finance and Planning Deputy Minister Prof. Anil Jayantha Fernando. Special guests of honour are CASL Past President and CMASL Past Council Member Manil Jayesinhe, CMA President Prof. Lakshman R. Watawala, CMASB Chairman Mahendra Jayasekara, Cost Accountants India Vice President Neeraj Joshi and CMA Vice President H.M. Hennayake Bandara.    

The occasion is expected to attract a distinguished gathering of business leaders and industrialists, professionals, financial, management and cost accountants, entrepreneurs, policymakers, academics and international representatives, reflecting the national importance of this development. 

The introduction of Cost Accounting Standards in Sri Lanka represents a long-awaited advancement in the accounting profession by incorporation of the Institute of Certified Management Accountants of Sri Lanka by an Act of Parliament in 2009. These standards are expected to provide structured guidance on cost measurement, control and reporting, maintenance of cost records, thereby supporting improved organisational performance, better resource allocation and enhanced competitiveness within industries. This will apply to all large and medium institutions in both the public and private sectors.  

The event programme features the official unveiling of the standards, alongside addresses by key figures in the accounting and corporate sectors in Sri Lanka and India. 

The attendees will gain insights into the development process, relevance of the standards in today’s economic environment and their anticipated impact on the pricing of products and provision of goods and services to society at fair prices.

CMA Sri Lanka, as the national professional management accounting body in Sri Lanka, continues to play a pivotal role in advancing professional excellence and contributing to the country’s economic progress. 

The launch of the Cost Accounting Standards underscores its commitment to aligning Sri Lanka with global best practices while addressing local industry needs.

This landmark event is expected to set the foundation for a more robust and transparent cost management framework in Sri Lanka, ultimately contributing to sustainable economic growth and improved organisational accountability.

Important sectors such as power, telecom, cement, garments, petroleum, drugs, agricultural products and standards for determining costs and setting prices including price-controlled items will be given high priority. 

Implementation of cost accounting standards and records will also enable the export companies to become competitive in the global market and increase foreign exchange earnings to Sri Lanka.