Professional Accounting Nexus in country’s development agenda

With Sri Lanka’s unrelenting focus on an accelerated development agenda which also includes becoming South Asia’s Economic Hub by 2015, there are support competencies that assuredly add imperatives to taking these ambitious goals forward.

Executive Director Markets ACCA Stephen Heathcote	ACCA’s Director Emerging Markets Asia Lucia Real-Martin

Visiting Sri Lanka for the annual ACCA Sustainability Reporting Awards, Executive Director Markets ACCA Stephen Heathcote remained emphatic that comprehensive financial knowledge and application is vital in ensuring that each project, whether from an infrastructure perspective or investment angle, must bring in value for money for the government. “There will be good cost management and prudent money management,” he opines. “Another aspect is the confidence a country gains in having competent high quality finance professionals when it comes to attracting FDIs as foreign investors know their investments are in good hands, where accuracy, transparency and accountability will always be paramount.”

He explains that within an emerging economy like Sri Lanka, there is that added confidence among all stakeholders if professionals form a part of the integral net of financial literacy. “A professional finance person brings that ability to prepare and interpret numbers and look towards the future. ACCA has those professionals with broad recognized skills to add confidence to both local and foreign markets as well.”

ACCA’s Director Emerging Markets Asia Lucia Real-Martin echoed these sentiments adding that Sri Lanka certainly has an advantage when inviting FDIs, because of the high quality accountancy professionals the country is renowned for. “These foreign direct investors will invest knowing they will have the both the leadership expertise and technical skills, which is a strong and attractive component for organizations coming into invest in Sri Lanka.”

Real-Martin also discussed the reasons for brain drain in countries like Sri Lanka when it comes to accountancy professionals, which is not uncommon around the world. “This is the reality of global mobility. ACCA for example is a global qualification and gives ACCA professionals a platform to operate in the global environment.

However, what I do see is that when there’s stability in the market, professionals return and flourish because the country becomes attractive for them to bring back their skills and contribute towards national development. I strongly believe that the exposure they receive outside is valuable and it is that experience that should be optimised when they return, because these are professionals who have worked in international environments and can use that global application in the local context.” Heathcote also says that with professionals always seeking challenging interesting places of work, Sri Lanka is the ideal location.

“There’s so much vibrancy and dynamism and given your developmental goals, accountants will certainly find themselves playing very interesting roles. The levels of experience and the challenge would be the ideal combination for these professionals and I’m sure people will be attracted to that mix.”

On the importance of sustainability reporting, Heathcote says the reporting process adds an integral degree of commitment and transparency on how a company runs and its views on a range of issues. “Consumers and suppliers too are getting increasing discerning about a company’s ethics, principles and values. They want to deal with ethical companies and support those with a sustainability agenda. This has now extended to governments as well and for Sri Lanka, the more entities, both in the private and public sector that engage in the reporting process, the more advantageous it will be. This will be a major selling point if both the government and the private sector is involved in a transparent and accountable process of reporting their sustainability agenda. There’s the added feature of reliable accurate information, a zero tolerance towards corruption, child labour et al and most importantly, it instills a sense of trust.”

Real-Martin explains that with Sri Lanka showing definite signs of embracing the sustainability challenge and debate and beginning to look at what integrated reporting really means and how it can be used as a tool to develop the economy alone.

“This is massive encouragement as it gives investors a very clear picture as to what Sri Lanka offers. For Sri Lanka, this is a considerable competitive advantage.”

Heathcote also observes that it is important that more public sector entities should be encouraged into the reporting sphere. “In most countries, there are certainly more private sector organizations within the reporting process. This could also be due to insufficient finance people being in the public sector in positions where they can value and report. Good finance people are needed to decipher financial information and communicate this reliably, while ensuring ethical practices and transparent reporting.” Real-Martin is encouraged by Sri Lanka’s emphasis on strengthening the role of accountants especially in the public sector.

“This is not always symptomatic of emerging economies and I’m truly pleased to see the focus in having professionalism, technical and leadership skills and most of all ethics, being infused into the public sector.”

They both observe the highly literate population is Sri Lanka’s biggest strength in hastening the economic journey. “Hence, education will continue to remain a vital tool in achieving Sri Lanka’s vision,” says Real-Martin adding that the increasing numbers sitting for ACCA examinations is ample proof that Sri Lankans highly value education. “Sri Lanka is making its way towards becoming a knowledge hub with the increasing numbers of professionals who are here and the fact that the country has created employment opportunities for them is also truly impressive.”

Heathcote believes that the BPO sector would be one of the core industries that Sri Lanka can capitalise on.

“This is a burgeoning industry and Sri Lanka has all the right elements to grow this sector exponentially. Emanating from a growing middle class in emerging markets, Sri Lanka is also well positioned with its unique product to grow its tourism industry, being strategically located between east and west. Support areas like good hotels, food and beverage and most of all a safe environment truly makes for a good economic driver.”