Nagendrakumar, N2022-05-192022-05-192020-06https://rda.sliit.lk/handle/123456789/2406The purpose of this study is to explain why the accrual accounting practices introduced to Public Entities (PEs) in Sri Lanka has been a failure. To elevate the phenomenon, the study employed institutional theory as a theoretical scope. And also, it espoused the interpretive stance, case study strategy, and theoretical thematic analysis method. The study is significant since it extends the institutional mechanism which is a part of the institutional theory into initial pressure (i.e., pull) and induced pressure (i.e., push). It concludes that the initial pressure (pull) for the reforms existed whereas the induced pressure (push) did not. Also, the second negated the first causing an overall pressure to the public entities insignificant and hence the public sector Accounting and Financial Reporting (PSAFR) Reforms reform failed in Sri Lanka. This study reassures in the PSAFR reform point of view the institutionalization of the institutions has not yet been well explained.enPullPushPSAFR ReformInstitutionalizationArticle