International Journal of Scientific Research and Engineering Development

This research examines the factors influencing sustainability reporting among listed banks in Sri Lanka. Profitability, leverage, and board independence are considered as the key independent variables. The study covers all 13 banks listed on the Colombo Stock Exchange (CSE) for the period 2015 to 2024, using a census sampling technique to obtain 130 company-year observations. The data were collected from secondary sources, specifically annual and consolidated reports, and analysed using SPSS through descriptive statistics, correlation, and multiple regression analyses. The correlation analysis confirmed a moderate, statistically significant positive relationship between board independence and sustainability reporting (r = 0.423, p < 0.001). In contrast, profitability and leverage exhibited weak and non-significant relationships. The multiple regression model showed moderate explanatory power, with the independent variables collectively explaining 18.7% of the variance (R² = 0.187). Among them, board independence (B = 0.456, p < 0.001) was confirmed to have a strong and statistically significant positive effect on sustainability reporting, while profitability and leverage showed no significant impact. The results indicate that governance quality, particularly board independence, is the key determinant of sustainability reporting in listed banks in Sri Lanka, which aligns with the predictions of legitimacy theory and stakeholder theory.

G.U.M. Rasanjalee, L. Sooriyakumaran, S. Kokini,"Factors Influencing Sustainable Reporting of Listed Companies in Sri Lanka: A Focus on the Banking Sector" International Journal of Scientific Research and Engineering Development, V9(1): Page(251-262) Jan-Feb 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.