Abstract:
The Brundtland Commission's report defined sustainable development as “development which
meets the needs of current generations without compromising the ability of future generations to meet
their own needs”. In this context, it is problematic whether companies conduct their corporate activities
in line with doctrine of sustainable development. The proposed study expects to find out whether the
Companies Act No 07 of 2007 imposes any duty towards environmental protection on Sri Lankan
Companies. The study will evaluate the scope and the extent of these duties (if there are any) and
whether the statutory duties imposed are adequate to protect environment. Overall approach to this
study is qualitative. Further, relevant statutory provisions are analysed using the critical analysis method
and the comparative analysis method. Critical analysis method was employed to analyze the relevant
statutory provisions and the comparative analysis method is employed to examine similarities and
differences between the Companies Acts of Sri Lanka and the United Kingdom. Qualitative data for the
research was gathered through primary sources and secondary sources. Primary sources include the
relevant statutes i.e. Companies Act No. 7 of 2007 of Sri Lanka and the Companies Act of 2006 of the
United Kingdom and case law and the secondary sources include books with critical analysis, journals,
theses and electronic resources. The basic limitation of this method is that it does not satisfactorily focus
on the actual implementation of the existing legal framework. It is submitted that Companies Act No
07 of 2007 does not expressly impose a duty on Sri Lankan companies towards environmental
protection. Hence the existing statutory provisions are inadequate and the Companies Act should be
amended to include express provisions to guarantee environmental protection.
