SLFRS S1 & S2 Sustainability Reporting
SLFRS S1 & S2 Sustainability Reporting: phased mandatory ifrs s1/s2-aligned governance, strategy, risk and scope 1 and 2 emissions disclosure for sri lankan listed and large entities.
What it is
SLFRS S1 & S2 are Sri Lanka's national sustainability reporting standards, adopting IFRS S1 and S2 under the Sri Lanka Accounting & Auditing Standards Act and embedding sustainability and climate-risk disclosures into financial reporting.
The framework rolls out in phases, beginning with the top 100 Main Board-listed firms in FY2025 and expanding through 2030 to cover all listed and large unlisted public-interest entities.
Who must comply
Applies to public and large private entities, including manufacturing entities with revenue exceeding LKR 10 billion and service providers exceeding LKR 5 billion, phased by entity size and listing status. Coverage expands from the top 100 Main Board-listed companies in FY2025 to all listed companies by FY2027 and remaining SMEs by FY2030.
What you must disclose
Entities must report full IFRS S1 and S2 compliance covering governance, strategy with scenario analysis, risk management, and metrics and targets. GHG reporting requires Scope 1 and 2 mandatory and Scope 3 where material, alongside climate transition plans, progress against targets, and qualitative and quantitative ESG disclosures with digital tagging. Disclosures appear in Annual Reports submitted to the Colombo Stock Exchange and Auditor General with Board approval.
Timeline
Issued 28 June 2024 and effective from 1 January 2025.
Rollout is phased: top 100 Main Board-listed companies in FY2025, all Main Board-listed companies in FY2026, and all listed companies in FY2027. Unlisted public-interest entities exceeding revenue thresholds enter in FY2028-29, with remaining Empower Board SMEs in FY2030.