Corporate sustainability: a comparative analysis of pre- and post-COVID–19 practices in Sri Lanka

Hiranya Dissanayake; Hareendra Dissabandara; Roshan Ajward; Wasantha Perera

doi:10.63684/dk.2025.05.07

Hiranya Dissanayake Department of Accountancy, Faculty of Business Studies and Finance, Wayamba University of Sri Lanka
Hareendra Dissabandara Department of Finance, Faculty of Management Studies and Commerce, University of Sri Jayewardenepura
Roshan Ajward Department of Accounting, Faculty of Management Studies and Commerce, University of Sri Jayewardenepura
Wasantha Perera Department of Finance, Faculty of Management Studies and Commerce, University of Sri Jayewardenepura

DOI: https://doi.org/10.63684/dk.2025.05.07

Keywords: Corporate Sustainability, COVID–19, Environmental Practices, Social Equity, Economic Resilience, Sri Lanka, Paired Samples Test, Corporate Sustainability Index

Abstract

The COVID–19 pandemic significantly disrupted corporate sustainability practices, compelling businesses to reassess their environmental, social, and economic responsibilities. This study evaluates the impact of COVID–19 on corporate sustainability in Sri Lanka by analyzing practices across these three domains using the Corporate Sustainability Index (CSI). A sample of 160 listed and unlisted companies was selected through convenience sampling, and paired samples tests were employed to identify significant pre- and post-pandemic changes. Findings revealed notable declines in environmental initiatives, such as reductions in climate change mitigation efforts and green energy adoption, driven by resource constraints. Social indicators showed mixed outcomes, including decreased workplace flexibility but increased collaboration with non-governmental organizations. Economic sustainability faced challenges, as evidenced by declines in brand value and financial investments in sustainability initiatives. The results highlight the critical need for businesses to adopt adaptive and resilient strategies that balance immediate recovery with long-term sustainability goals. The study underscores the importance of integrating stakeholder engagement, systemic resilience, and innovative solutions into corporate sustainability frameworks. Recommendations include fostering public-private partnerships, leveraging technology, and prioritizing investments in sustainable practices. These insights provide valuable guidance for businesses navigating post-COVID challenges in a developing economy like Sri Lanka.