Corporate governance reforms in India and Sri Lanka: part 1

This chapter explains how certain, prominent elements of reforms relating to auditing and corporate governance practices, that have dominated the reforms introduced in Australia and other developed countries, are dealt with in the external corporate governance reforms of India and Sri Lanka. As there is a worldwide movement to reform a country's corporate governance practices, international students studying in Australia from all countries will find a study of Indian and Sri Lankan reaction to the need for reform valuable in understanding debates relating to the reform process in their home country. The issues discussed in relation to Sri Lanka and India include the recommendations pertaining to independent, non-executive directors on boards of directors, true and fair declaration, and audit committees. Comparisons are drawn also with corporate governance practices adopted or proposed in these two countries with those implemented in developed countries. Similarities and differences are emphasised. The chapter provides a sufficient level of understanding of the extent of importance placed by India and Sri Lanka on these elements of corporate governance. The chapter also discusses problems in implementing corporate governance reforms