An overview of the new listing rules and corporate governance best practice in Sri Lanka

Corporate governance represents institutional structures and incentive mechanisms that are implemented in order to\ud mitigate the principal-agent problem and to thus promote the long-term competitiveness of the firm. The purpose of\ud this paper is to examine the nature of corporate governance best practice and the new listing rules in Sri Lanka. The\ud paper discusses the evolution of the corporate governance best practice giving special reference to the new listing\ud rules in Sri Lanka, Sri Lankan stock market overview and the importance of best practice governance for the\ud developing economy of Sri Lanka. Corporate governance practices in Sri Lanka has made a progress towards best\ud practice, but, this paper argues, that substantial reforms need to be implemented to effectively promote and sustain\ud the accountability and transparency