🇱🇰 EY Urges Sri Lanka to Adopt Accrual Accounting for Public Finance 📈

• The International Public Sector Financial Accountability Index 2025 by IFAC/CIPFA/IPSASB details global advancements in public sector financial reporting. • Global Status: 31% of jurisdictions currently use a full accrual basis, with 30% remaining on a cash basis and 39% on partial accrual. • Projected Trend: Although high-income nations lead currently, the report projects that by 2030, more middle- and low-income groups will advance to accrual-based accounting. • SL Recommendation: Ernst & Young (EY) Sri Lanka suggests it is an "ideal time" for the Government of Sri Lanka (GoSL) to revisit its plans for adopting accrual-based financial reporting. • Key Benefits: Transitioning to accrual accounting significantly enhances public financial management by: Improving transparency (recognizing all transactions when they occur). Strengthening accountability. Supporting inter-generational equity.