CMA Sri Lanka launches Cost Accounting Standards

Official unveiling of Cost Accounting Standards of Sri Lanka. From left: CMA Sri Lanka Past Council Member Manil Jayasinghe, Institute of Cost Accountants of India Cost Accounting Standards Board Vice President and Chairman Neeraj Joshi, CMA Sri Lanka President Prof. Lakshman R. Watawala and Labour Minister and Finance and Planning Deputy Minister Prof. Anil Jayantha Fernando

PIC BY KUSHAN PATHIRAJA

By Ishan Sheriffdeen

The Institute of Certified Management Accountants of Sri Lanka (CMA Sri Lanka) last week launched in Colombo nineteen ‘Cost Accounting Standards (CASSL)’, a set of standardized principles and guidelines to be followed by large and medium institutions in both public and private sector to ensure uniformity, consistency and accuracy in the measurement, classification, assignment and presentation of cost related information in cost statements.

The launch event held on 15 May at Taj Samudra Hotel was attended by a distinguished gathering of business leaders, financial and management accountants, policymakers, academics and international representatives.

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

The launch of Cost Accounting Standards of Sri Lanka is considered a significant milestone achieved by CMA Sri Lanka with technical support from Institute of Cost Accountants of India. 

CMA Sri Lanka President Prof. Lakshman R. Watawala said, “It represents a long-awaited advancement in the accounting and financial management framework of the country. We plan to implement the system of cost accounting and cost audit standards with the backing of regulatory authorities to benefit organizations and society. Here, we are encouraged by the Indian experience that mandatory compliance in the application of these standards in public and corporate sectors has significantly contributed to the economic well-being and prosperity of the nation.

“Our country has been severely affected by inefficiencies, wastage and corruption specially in the public sector, without proper cost records. There is no public confidence in the cost information system we have. With ‘Societal Cost’ being a key element, these cost accounting standards (CASSL) are going to make a huge overall impact, making a very significant contribution to restore public confidence in government institutions, restore public confidence in government policy making decisions and strengthen the private sector institutional framework,” Prof. Watawala added. Explaining the importance of having proper cost information in connection to government policy making, Cost & Management Accounting Standards Board (CMASB) Chairman Mahendra Jayasekara said, “When it comes to devising a tariff policy, properly presented cost information on a standardized format will enable the government to understand what policy the government should adopt to support a particular industry, how the entire tariff system can be developed, what subsidies should be provided to certain industries and what type of protection industries need if any. We have to selectively identify what industries that should be developed and promoted in Sri Lanka.”

Vice President & Chairman – Cost Accounting Standards Board (CMASB), Institute of Cost Accountants of India, Neeraj Joshi who was the Special Guest of Honour of the event said, “This initiative is expected to create greater awareness and acceptance of Cost Accounting Standards amongst the accounting and professional bodies across the SAARC region through the SAFA network. The harmonization of cost accounting practices across neighbouring countries will further strengthen regional cooperation and facilitate the development of a robust and globally aligned cost and management accounting profession in South Asia”.

The Cost Accounting Standards of Sri Lanka (CASSL) shall be effective from July 1, 2026 for the preparation and certification of General Purpose Cost Accounting Statements.  An Expert Panel and a Technical Committee will oversee the Implementation aspects of the standards, working closely with the country’s regulatory bodies including the Public Utilities Commission, Consumer Affairs Authority, Inland Revenue Department, Department of Commerce, Treasury and the Sri Lanka Accounting and Auditing Standards Monitoring Board.