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24 CERTIFIED MANAGEMENT ACCOUNTANT

There is a considerable variation of Figure 04: - Trend Analysis of
average disclosures of each sector. Environment Disclosers in Chemical
Power and energy sector has the highest and Pharmaceutical Sector
mean value indicating that this industry
is disclosing more information on the
impact on the environment. Chemical
and pharmaceutical sector is the “
industry which has the lowest disclosure
level. Average disclosure level of power Environment
and energy sector is 29.53% while, in
contrast, chemical and pharmaceutical disclosure
sector has an 8.75% mean value. Mean
value of index of the plantation sector, practices have
construction and engineering sector
and manufacturing sector are 26.242%,
17.331 % & 14.367% respectively. Chemical & Pharmaseutical Sector increased year by
It is apparent from Figure 04 that
Trend Analysis of environmental disclosure index of the year not only in
Environmental chemical sector has slightly increased Sri Lanka, but also
Disclosure Index from 2015 to 2016. However, there
had been a considerable downward
trend after 2016. This is mainly due in an international
A trend analysis was used to identify to some companies in this sector not
the fashion of disclosing environmental having disclosed any environmental context.
information by the environmental information in their annual reports.
sensitive companies listed in Colombo Instead of reporting sustainability
Stock Exchange. information in annual reports, they
have a tendency to report that
Figure 03: - Trend analysis of information in their websites.
Environment Disclosures

Total Environmental Disclosures
Figure 03 depicts an overview of the
trend of environmental disclosures by
the environmental sensitive companies.
Accordingly, there has been a gradual
increase in the level of environmental
disclosures over the years. This indicates
that the companies’ concentration on
environment is increased annually.
Jariya (2015) also noted that
environmental disclosure practices
have increased year by year not only in
Sri Lanka but also in the international
context.

www.cma-srilanka.org | Volume 06 - No. 2 - September 2021