Corporate governance best practice and listing rules in Sri Lanka

The purpose of this paper is to critically examine the notion of corporate governance best practice giving special reference to Sri Lanka. Corporate governance repres ents institutional structures and incentive mechanisms that are implemented in order to mitigate the principal - agent problem and to thus promote the long - term competitiveness of the firm. The paper not only examines the nature of corporate governance best practice, but also discusses the characteristics of Sri Lankan stock market and the importance of best practice governance for the developing market economy of Sri Lanka. It is demonstrated that corporate governance in Sri Lanka has made progress toward be st practice, but, the paper argues, that substantial reforms remain to be implemented in order for accountability, transparency, and firm performance to be effectively promoted and sustained