The Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995 and the regulations made under the Act have defined certain enterprises to be Specified Business Enterprises. The Act applies mainly to the preparation, presentation and audit of financial statements of these enterprises in respect of periods commencing on of after 1st January 1999. The Act imposes certain duties and obligations on specified business enterprises and their directors, officers and auditors, the default of which would result in various penalties, extending up to an imprisonment of either description for a term of 5 years.