Sri Lanka finance & accounting services: Unlocking your business advantage

Every business leader knows the delicate dance between growth and financial control. As operations expand and markets globalize, the meticulous demands of finance and accounting can stretch internal teams thin. 

This isn’t just about finding extra hands; it’s about finding the right hands, wherever they may be. Sri Lanka, with its burgeoning talent and robust infrastructure, is rapidly becoming the answer for organizations seeking to transform their F&A operations. 

In the 542nd episode of the Outsource Accelerator Podcast, Deshaka Perera, CEO of H Connect International, gives several points on the benefit of Sri Lankan accounting services. 

Join us as we uncover the compelling story of how accessing Sri Lankan finance and accounting services can unlock efficiencies, foster precision, and truly redefine your business advantage.

Sri Lanka’s 5 strengths in finance and accounting support

Sri Lanka’s rise as a go-to hub for F&A support isn’t by chance; it’s built on a bedrock of distinct advantages that make it an attractive proposition for businesses worldwide.

1. High-caliber talent pool 

One of the island nation’s most significant assets is its remarkably strong educational system. With a consistent focus on commerce, accounting, and finance, Sri Lanka produces a steady stream of highly qualified professionals. 

Deshaka attests to this, noting that “Sri Lanka has a large number of accountants. About 80,000 students select finance and accounting as a qualification.” 

The country boasts high literacy rates, and a substantial number of its accounting professionals hold globally recognized qualifications such as CIMA, ACCA, and CA Sri Lanka. 

Crucially, the workforce demonstrates a high level of English proficiency, which ensures seamless and crystal-clear communication, a non-negotiable for intricate financial operations.

2. Attractive cost structure 

For businesses scrutinizing their bottom line, Sri Lanka offers a compelling financial proposition. The cost of labor is highly competitive when compared to Western countries, and even some other established Asian outsourcing destinations. 

This allows businesses to achieve significant cost savings without ever having to compromise on quality or integrity.

3. Robust infrastructure and digital connectivity 

Sri Lanka has made considerable strides in developing its IT and telecommunications infrastructure. The nation now benefits from increasingly reliable internet connectivity, which is foundational for smooth remote operations. 

The growth of modern tech parks and a progressively business-friendly environment further bolster its capacity to support complex digital F&A services. This ensures that partners can rely on stable and advanced technological foundations.

4. Strategic global positioning

Sri Lanka’s geographical location offers a distinct strategic advantage. Its time zone provides a favorable overlap with key global markets, including Europe, the Middle East, and parts of Asia. 

This overlap enables efficient real-time collaboration during crucial working hours. It also facilitates faster turnaround times for daily financial tasks, providing a significant boost to responsiveness and workflow.

Deshaka points out that many businesses already operate within Sri Lanka. 

“Even though [Sri Lanka] is not known globally enough for the BPO business yet, in comparison to the Philippines, India, etc, a large number of captive operations for large businesses run out of Colombo.” 

5. Supportive business environment

The Sri Lankan government has actively championed the growth of its IT and business process management (BPM) sectors. Various initiatives and policies are in place to promote these industries, such as the efforts of SLASSCOM. 

This is complemented by a stable regulatory framework and increasing ease of doing business. They collectively foster an inviting environment for foreign investment in its services sector, signaling long-term reliability for potential partners.

Deshaka praises the “ecosystem” that has formed. 

“I think Sri Lanka [saw] that as an area where we could do well. The whole ecosystem was developed around finance and accounting with those global qualifications coming in. I think it really created an opportunity for people.” 

Sri Lanka finance and accounting: Key benefits

Beyond the inherent strengths of the nation itself, partnering with Sri Lankan F&A specialists translates into direct, tangible benefits for businesses.

Enhanced accuracy and compliance 

Financial operations demand absolute precision. By accessing Sri Lankan professionals with deep knowledge of international accounting standards (IFRS, GAAP), businesses can significantly reduce the risk of errors. 

Deshaka promises that accountants from H Connect International are plenty qualified. 

“We reach out to taxation authorities and tax training organizations to provide the type of training that is required and to keep our people up to date.” 

Improved operational efficiency 

Delegating F&A tasks to dedicated remote teams in Sri Lanka can lead to substantial improvements in operational efficiency. 

These specialized teams often bring optimized processes and leverage advanced tools. These can result in faster month-end and year-end closing cycles, quicker report generation, and more streamlined financial workflows overall.

Elevated focus on core business functions

One of the most compelling advantages is the ability to free your internal teams. 

Your in-house staff can entrust routine administrative and accounting tasks to external experts. They can then reallocate their valuable time and energy towards higher-value activities that directly drive business growth. 

It’s about leveraging your internal talent where it matters most.

Access to advanced solutions 

Leading Sri Lankan F&A service providers often invest heavily in cutting-edge accounting software, automation tools, and cloud-based platforms. By partnering with them, your business gains access to these advanced technological solutions without the substantial upfront investment. 

You benefit from their continuous process improvement methodologies, ensuring your financial operations remain competitive and aligned with modern best practices.

Deshaka ensures that H Connect International delivers on this. Part of his strategy is keeping his employees updated on trends relevant to their verticals. 

“We have these trainers send out a weekly Monday morning news roundup to tell everybody what’s happening around that vertical globally. 

[It’s] also trends and KPIs, so [we] build that knowledge and gather and do it consistently [and] bring that mindset to our people.” 

Fostering a successful finance and accounting partnership with Sri Lanka 

To truly capitalize on the advantages of accessing Sri Lankan F&A expertise, forming a successful partnership requires deliberate attention to certain key areas.

1. Diligent partner selection: Begin by conducting thorough due diligence. Critically assess their security protocols and data confidentiality measures to ensure your sensitive financial information is robustly protected.

2. Clear communication and collaborative management: The foundation of any successful remote collaboration is clear, consistent communication. Establish robust communication channels, agree on reporting structures, and set regular check-ins. 

3. Understanding cultural nuance: While English proficiency is high, understanding and bridging any subtle cultural differences can significantly smooth collaboration. A good partner will be proactive in fostering cultural alignment, ensuring seamless team integration and mutual understanding.

Sri Lanka presents a compelling and strategic choice for businesses looking to optimize their finance and accounting operations. With the right partner in the industry, you’re one step closer to succeeding.