SEC, CSE and CA Sri Lanka sign MOU to advance XBRL-based digital reporting for listed companies

The signing ceremony at SEC (from left): Manuri Weerasinghe| Director Corporate Affairs, SEC; Tushara Jayaratne|Acting Director General, SEC; Nilupa Perera |Chief Regulatory Officer, CSE; Rajeeva Bandaranaike | Chief Executive Officer, CSE; Senior Prof. D.B.P.H. Dissabandara,| Chairman, SEC; Tishan Subasinghe | The President of CA Sri Lanka; Anoji de Silva | The Vice President of the CA Sri Lanka; Neranjith Gamage | Commission Member, SEC; Lakmali Priyangika | Chief Executive Officer of the CA Sri Lanka; Rishdha Zarook Ishaq | Director Legal and Enforcement, SEC; Kumuduni Maduwanthi |Senior Manager Legal of the CA Sri Lanka

The Securities and Exchange Commission of Sri Lanka (SEC), Colombo Stock Exchange (CSE), and the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) signed a Memorandum of Understanding (MoU) to collaborate on the implementation of eXtensible Business Reporting Language (XBRL) based reporting for companies listed on the CSE.

The agreement marks a significant milestone in Sri Lanka’s efforts to modernise corporate reporting and strengthen the digital infrastructure of the capital market. The initiative aims to streamline the submission of both financial and non-financial information by listed entities, enhancing transparency, accessibility and investor confidence.

The MoU formalises the partnership, following the establishment of a joint SEC-CSE committee tasked with driving the initiative. With the in-principle approval of the SEC, the committee has been working closely with CA Sri Lanka to develop the framework required for the successful rollout.

XBRL is the internationally recognised standard for digital business reporting, developed and maintained by XBRL International, a global non-profit consortium. The standard enables financial and business information to be reported in a structured, machine-readable format, facilitating more efficient analysis, comparison and interpretation of corporate disclosures by regulators, investors, analysts and other stakeholders.

The introduction of XBRL reporting is expected to deliver several key benefits for both listed companies and users of financial information. These include reducing reliance on manual data processing, improving the accuracy and consistency of reported information, supporting more advanced data analysis, and lowering long-term reporting costs. The flexibility of the XBRL framework also allows organisations to tailor taxonomies to meet specific reporting requirements. In addition, XBRL adoption will enhance market transparency and efficiency by enabling quicker access to comparable corporate information. It will also align Sri Lanka’s reporting framework with global standards, making the country’s capital market more accessible and attractive to international investors familiar with XBRL-based financial reporting.

The primary objective of the initiative is to establish a standardised framework for the submission of Interim Financial Statements and Annual Reports by listed companies using the XBRL taxonomy. The move is expected to improve the quality, consistency and timeliness of corporate disclosures, thereby supporting more informed investment decisions and strengthening market integrity.

The CSE has already procured and customised the required XBRL platform and is currently completing the final stages of User Acceptance Testing (UAT). Subject to completion of the implementation process, XBRL reporting is expected to be rolled out to all listed entities during the latter part of 2026. The SEC, CSE and CA Sri Lanka reaffirmed their commitment to working together to successfully implement the initiative and further enhance the technological capabilities of Sri Lanka’s capital market.