Abstract:
In today's digital era, blockchain technology has emerged as a powerful innovation,
particularly in the financial sector. This study examines the impact of blockchain
technology on enhancing the efficiency of financial reporting within Sri Lanka's
financial institutions. Financial reporting, which plays a crucial role in ensuring
transparency and accountability, often faces challenges including inaccuracies,
delays, security vulnerabilities, and limited stakeholder trust. Blockchain, with its
decentralized, transparent, and tamper-proof characteristics, offers a promising
solution to these challenges. The primary research objective was to assess how four
core dimensions of blockchain technology, Consensus Mechanism, Smart Contracts,
Interoperability, and Scalability, influence the efficiency of financial reporting. A
quantitative research approach was employed, utilizing a structured questionnaire
distributed to 120 professionals from finance, accounting, compliance, and IT
departments across selected Sri Lankan financial institutions. The collected data were
analyzed using descriptive statistics, correlation analysis, and multiple regression
techniques to measure the strength and significance of the relationships. The findings
demonstrate that blockchain dimensions are positively associated with financial
reporting efficiency. This study makes an important contribution by addressing a
local research gap regarding blockchain applications in financial reporting. While
extensive global research exists, localized insights specific to Sri Lanka remain
limited. The study recommends blockchain adoption with supportive regulations and
capacity building, achieving its goals and confirming its role in improving financial
reporting efficiency in Sri Lanka.
