National policy to remove red tape vital

Nishan Fernando

President, Institute of Chartered Accountants of Sri Lanka

Hiran H. SENEWIRATNE

The proper resource mobilisation for infrastructure development across the country will enable to achieve rapid economic development in the country, President, Institute of Chartered Accountants of Sri Lanka Nishan Fernando said.

He said the country has to have a national plan and a policy to remove all red tapes to promote local infrastructure development in the country in the medium to longterm perspective.

Fernando said the availability of opportunities to grass roots level will help to address most of issues in the country. Therefore, educational opportunities should be given at equal level in the country, he said.

Fernando said there is no equal education for all Sri Lankan students since when it comes to grade one admissions it becomes a major issue. “Therefore the Government should make it a point to select each school in each area and develop like Colombo schools to avoid the disparity in the country,” he said.

Q: You are the President of the Institute of Chartered Accountants of Sri Lanka (ICASL) for a two-year period. What are your strategic plans for the development of the profession?

ICASL is a statutory authorised body to promulgate accounting standards in the country. Currently we have 28,000 students registered with us and we are the largest tertiary educational body after the University Grants Commission (UGC) system. We also have 4000 qualified members upto date.

Therefore my overall plan revolves around bringing the qualification to internationally accepted levels.

There are certain drawbacks in the qualification where our members have to get the qualification assessed when applying for migration. With changes, we will be able to make it an accepted qualification for migration to countries like UK, USA and other countries. We will be changing the syllabus or curriculum in 2010. We are also working with an Australian professional body to do minimum number of subjects to be obtained for qualification.

Students can get enrolled for our programme with A/L results and have to work as Article Clerks during the programme to gain experience while studying.

Q: How do you differentiate this qualification, compared with other accounting qualifications?

The Chartered Accountancy qualification focuses on audit taxation and financial management. Therefore, it also covers financial management, management accountancy and business management subjects. The beauty our qualification is that our qualified members can practice by signing audit reports and the balance sheet.

Q: ICASL is the premier body that promotes local auditing and accountancy standards in the country. How would support that endeavour?

Our institute being a statutory body and we are following the world international body International Federation of Accountants (IFA). These standards have been modified to the local scenario. Sri Lanka’s stock market and the financial market are not developed as in other countries like USA and Europe. We also conduct the Best Annual Report of the Year contest, which is evaluated and checked by a high panel of judges in the country.

We are also working with regulatory boards such as Securities and Exchange Commission, Sri Lanka Accountancy Standards Monitoring Board and the Central Bank. We also promote corporate governance in business organisations in the country.

Q: ICASL has memberships in many international bodies like Confederation of Asia Pacific Accountants, IFA and South Asian Federation of Accountants (SAFA). How it is going to benefit Sri Lanka as professional accountants?

We get a lot of technical inputs to upgrade the technical capabilities such as accounting and audit standards, professional quality assurance, practice review and curriculum developments. On the other hand, we being a member of SAFA is now in the process of working with India, Pakistan, Bangladesh and Nepal to have a common curriculum and reciprocal recognition.

We have also made reciprocal arrangements with CIMA. These arrangements are for the betterment of the country.

Q: How will the high interest rates, inflation and currency depreciation impacts on the national economy?

High interest rates adversely impact on investment decision making. Micro level people will be hesitant to invest. The FDI is concern they look for long term stability to investment in the country. Inflation also too high and it would impact the buying power of the country.

Q: You being the Chief Financial Officer of a leading department store how would you see the current crisis?

The credit crunch has not yet become so serious to the level of real financial crisis following the Subprime issue in USA due to the housing and real estate bubble. Sri Lanka will have some kind of an impact. I believe we don’t have many investment and credit crisis surfacing. Our exposure for this economy is affected to the restricted. Tea, rubber and apparel sectors are affected but comparatively the impact is not felt in a serious manner.

Q: What is your advice to decision-makers of the country to resolve major problems in the country?

The current ethnic problem believes to be a major issue. I believe firstly that we have to eradicate terrorism from this country and go for a political solution. We have to pump funds especially to the East of the country for infrastructure development. Where the education sector is concerned we have to have a strategy for O/L and A/L drop outs for some vocational training for them.

Q: How would you manage your time with many commitments and other engagements?

I get a lot of support from my family. I am managing and planning on a daily and weekly basis. I very effectively use email and telephone for decision making.

Q: What is your philosophy in life?

I like to lead a very simple life. I am a strong Buddhist and always observes Pansil. I am committed to my job that I am involved in. I am also passionate about my job.

Q: What is your retirement plan?

Once I retire I want to develop my spiritual life which is my main idea. Other than that I hope to serve the country mainly on educational development.

Profile

Name - Nishan Fernando
School attended - Prince of Wales’ College, Moratuwa
Civil status - Married, has two children.
Educational Qualifications -
Academic - Master of Business
Administration (MBA) from PIM
Professional - Fellow of the Institute of
Chartered Accountants (FCA) Associate
Chartered Management Accountant (ACMA)
Other occupation - Chief Financial Officer
Odel Pvt Limited
Member - Securities and Exchange
Commission (SEC)
Governing Council of NIBM and PIM
Sri Lanka Accountancy Standards
Monitoring Board Member
Member of the Statutory Accountancy
Standards Committee
Member of the International Accounting
Education Standard Board.