Abstract:
This study explores the relationship between corporate governance mechanisms and
the level of sustainability reporting in Sri Lankan listed companies. As sustainability
reporting becomes increasingly vital in global business, understanding the influence
of governance structures on sustainability practices is particularly relevant for
developing economies like Sri Lanka. A quantitative approach was adopted, utilizing
secondary data collected from annual reports of 100 companies listed on the Colombo
Stock Exchange between 2022 and 2024. The analysis was conducted using EViews
software, a powerful econometric tool widely used for regression modeling,
descriptive analysis, and hypothesis testing. The level of sustainability reporting was
assessed using the Global Reporting Initiative (GRI) G4 guidelines, and the data were
analyzed through descriptive statistics, correlation, and multiple regression
techniques. The findings reveal that CEO duality, board size, and the existence of a
CSR committee have a significant positive impact on the level of sustainability
reporting. However, board independence did not show a statistically significant
influence. These results highlight the importance of active and structured governance
practices, especially leadership separation and dedicated CSR oversight, in enhancing
sustainability transparency and accountability. The study contributes to the limited
body of empirical research on sustainability governance in the Sri Lankan context. It
offers practical implications for corporate boards, policymakers, and investors aiming
to align governance frameworks with global sustainability standards. Ultimately, it
emphasizes the need for companies to go beyond regulatory compliance and embed
sustainability into their strategic decision-making processes.
