Abstract:
Since 1980's there has been a common consensus around the world that the
development shall not merely confined to the economic growth but shall take into account the
environmental and social aspects as well. In order to attain this objective, it is important to
ensure that the business enterprises are accountable towards the environment and its
stakeholders. However, the legal framework in Sri Lanka which provides for environmental
reporting is limited to a certain set of business entities by application. The main issue which is
sought to be addressed in this research is the limited-obligation placed on the applicability of
the environmental reporting laws in Sri Lanka based on the size of the enterprise. This
research is aimed to prove that the application of environmental reporting laws shall not be
based on the size of a particular business enterprise drawing evidence from the rubber
industry in Sri Lanka. This research is conducted based on Sri Lanka Accounting and
Auditing Standards Act No. 15 of 1995, Code of Best Practice on Corporate Governance in
2013, National Environmental Act No 47 of 1980 as amended and formal interviews as
primary sources and journal articles, conference proceedings and commentaries as
secondary sources. Conclusion and recommendations will be followed by the gathered and
analysed data with special reference to rubber industry in Sri Lanka.
