Abstract:
The main aim of the study is to find out the perception of government accountants on current
public sector accounting practices and implementation of public sector accounting standards in
the Sri Lanka. Public sector accounting practices involve with public expenditure, budget
preparation, maintain proper accounting records, assets management, public financial
management and provide reports on the public expenditure and revenue. Most of the public
sector organizations do not prepare final accounts on accrual basis in the Sri Lanka. Primary
data used in this study which data collected from government accountants in Sri Lanka. Mean
analysis confirmed that there is moderate level of public sector accounting practices and
implementation of public sector accounting standards in the Sri Lanka. Correlation analysis
confirmed that there is significant relationship between public sector accounting practices and
implementation of public sector accounting standards. Implementation of public sector
accounting standards are positively impact on the public sector’s financial reporting practices
and assets management practices in the Sri Lanka. Also below 23 percentage of public sector
organizations are preparing final accounts on accrual basis. More than 97 percentage
government accountants have ability to prepare annual accounts on accrual basis. Government
administrators, policy makers and professional institutions should motivate effective and
efficient implementation of the public sector accounting standards which will lead to a healthy
public sector accounting practices in Sri Lanka.
