A Survey of Internet Financial Reporting in Sri Lanka

The purpose of this paper is to investigate the extent and variety of practices of internet financial reporting (IFR) by companies listed on the Colombo Stock Exchange, Sri Lanka. While IFR is fast becoming the norm in most western countries, there is little empirical evidence of the phenomenon in Sri Lanka. This paper attempts to fill some of the gap in the literature by providing evidence of IFR practices in Sri Lanka. The 142 companies listed on the CSE were investigated to ascertain whether they maintain websites and/or if these sites are being used for communicating financial information. Only 84 of the listed companies were found to operate websites, with even less (only 31) engaging in IFR. However, IFR is not restricted to the publication of annual financial statements only as the companies also disclose financial highlights through their websites. The results of this study indicate that IFR is still at an embryonic stage in Sri Lanka and there are lots of opportunities and challenges for all stakeholder parties in corporate reporting.