SL accounting sector needs to be modernised: Amunugama

Wednesday, 21 May 2014 00:16 - - {{hitsCtrl.values.hits}}

Says State accountancy sector still uses old forms of recruitment, training, placements, evaluations and promotions
Stresses imperative to have free flow of information and transparency in processes
Assures SL can learn from the experiences of other nations and thus leapfrog

By Shabiya Ali Ahlam Although the nation has witnessed massive transformation across diverse areas over the last five years, it has yet to achieve modernisation in the accountancy sector according to Deputy Minister Finance and Planning Dr. Sarath Amunugama. Referring to the experience the Treasury has with the State accountancy sector, Dr. Amunugama emphasised that much has to be done to bring that sphere up-to-date. Modernising needed “We in the Treasury while working with the State accountancy sector observe that there needs to be a lot of modernising. I say this because they (State accountancy sector) still use old forms of recruitment, training, placements, evaluations and promotions. It is important that this be addressed to achieve efficiency,” he said, while delivering the keynote at the inaugural conference ‘Financial Reporting for Economic Development’ in Negombo yesterday which was organised by Confederation of Asian and Pacific Accountants (CAPA), The World Bank Group and International Federation of Accountants (IFAC). He added that it is imperative to also have a free flow of information, ways of making things right and transparency since only such will help safeguard the rights of the investors, the public, shareholders and owners. However he noted that Sri Lanka will not have to struggle much to achieve this modernisation since being an economy that entered the phase of rapid development rather late, it does not have to go through a process of change, but start with employing technology. “We are conscious of the fact that if you come late into this phase of development, you can leapfrog over many others. This is true especially in the area of corporate management. What we see in some so-called developed countries is that they are still stuck with old systems. That is the philosophy because they find it difficult to change. Newer economies that come in to this at a later stage can make use of all those experiences and learning to have the latest technology and thinking into the area of financial accounting,” expressed Dr. Amunugama.

Uplifting standards Emphasising that the Government is treating modernisation as a matter of high importance, he expressed his gratitude to those in the accountancy profession who are working towards uplifting their standards. “As our economy moves in to a higher status, the services of Management Accountants (MA) will become even more important. What we need is to become a participatory economy where even people with low earnings can be a part of the growth process by investing in the corporate sector,” he said.Not missing a chance to promote the country and its recent developments to the foreign delegates attending the conference, Dr. Amunugama pointed out to the audience the country’s plans for becoming a South Asian regional hub. Pix by Upul Abayasekara