Ar 2019

IN THE RIGHT DIRECTION
While the past few years saw Sampath Bank growing and expanding very rapidly, we believe
that the time is now right to look inwards; to evaluate and assess where we need to strengthen
our systems and processes, particularly increasing our investment into the training and
development of our people, the Sampath team whose creativity, intelligence and expertise
have kept the Bank strong and vibrant for so many years.
ƶURXJK DOO WKLV ZH NQRZ ZH PXVW NHHS WKH PRPHQWXP RI RXU MRXUQH\ LQWR WKH IXWXUH
looking forward with anticipation at what we can accomplish in the years to come, because
we know that in every way that matters, we are moving in the right direction.
CONTENTS
About this Report | 4

Material Topics | 6
Financial Highlights | 10
Non-Financial Highlights | 12
Green Recognition | 14
INTRODUCTORY INFORMATION MANAGING OUR BUSINESS MANAGEMENT DISCUSSION &

ANALYSIS
Our Vision and Values | 16 Chairman’s Message | 36 Operating Environment | 56

About the Bank | 17 Managing Director’s Review | 40
Capital Management Reports
Product Portfolio | 18 Our Value Creating Business Model | 44
Financial Capital | 60
Board of Directors | 20 Strategic Sustainability Framework | 46
Manufactured Capital | 64
Corporate Management | 26 Stakeholder Engagement | 50
Intellectual Capital | 68
Chief Managers | 30
Human Capital | 72
Senior Managers | 32
Social and Relationship Capital | 82
Customer | 82
Community | 84
Supplier | 91
Natural Capital | 92
Capital Trade-Offs | 98
Business Reports
Consumer Banking | 100
Corporate Banking | 104
SME Banking | 107
Global Banking | 108
Nostro Accounts, Correspondent Banks and
Exchange Companies | 111
Treasury | 112
Operational Support | 113
Performance of Subsidiaries | 114
Investor Information | 115
RISK & GOVERNANCE FINANCIAL INFORMATION SUPPLEMENTARY INFORMATION
Risk Management Report | 126 Financial Calendar | 194 Statement of Profit or Loss in US$ | 352
Compliance | 137 Annual Report of the Board of Directors on Statement of Comprehensive
Corporate Governance | 138 the Affairs of the Company | 195 Income in US$ | 353
Board Audit Committee Report | 185 Directors’ Interest in Contracts Statement of Financial Position in US$ | 354
with the Bank | 204 Economic Value Addition | 355
Board Human Resources and Remuneration
Committee Report | 188 Directors’ Statement on Internal Control over Ten Years at a Glance | 356
Financial Reporting | 205
Board Nomination Committee Report | 189 Quarterly Statistics | 357
Independent Assurance Report to the Board
Board Integrated Risk Management Capital Adequacy | 359
of Directors of Sampath Bank PLC | 207
Committee Report | 190 Basel III Disclosure Requirements | 360
Managing Director’s and Group
Board Related Party Transactions Review GRI Content Index | 370
Chief Financial Officer’s Responsibility
Committee Report | 192
Statement | 208 Independent Assurance Report to the
Statement of Directors’ Responsibility for Shareholders of Sampath Bank PLC | 376
Financial Reporting | 209 Glossary of Financial and
Independent Auditor’s Report to the Banking Terms | 377
Shareholders of Sampath Bank PLC | 211 Notice of Annual General Meeting | 381
Statement of Profit or Loss | 214 Notes | 382
Statement of Comprehensive Income | 215 Stakeholder Feedback Form | 383
Statement of Financial Position | 216 Corporate Information | IBC
Statement of Cash Flows | 218
Statement of Changes in Equity | 220
Notes to the Financial Statements | 222
ABOUT THIS
REPORT
Our Integrated Report
GRI102-12, 54
Since 2014, Sampath Bank has Our Reporting Frameworks
adopted the Integrated format for the
Integrated Reporting
preparation of its Annual Report. This
• The International Integrated Reporting Framework of the International
approach is based on the belief that
Integrated Reporting Council (IIRC)
Integrated Reporting offers a more
cohesive and efficient methodology Sustainability Reporting
to inform our stakeholders how we • Global Reporting Initiative (GRI) standards - 'In Accordance Comprehensive',
generate value over time. The report issued by Global Sustainability Standards Board
reflects our integrated thinking and • Guidance on ESG Reporting by the Colombo Stock Exchange (CSE)
as such is presented in line with the • United Nations Sustainability Development Goals (SDGs)
International Integrated Reporting
Financial Reporting
Framework published by the
• Sri Lanka Accounting Standards issued by the Institute of Chartered
International Integrated Reporting
Accountants of Sri Lanka
Council (IIRC).
• Companies Act No. 07 of 2007
• Banking Act No. 30 of 1988 and amendments thereto
Governance, Compliance and Risk Reporting

• Code of Best Practice for Corporate Governance issued by the Institute of
Chartered Accountants of Sri Lanka
• Banking Act Direction No. 11 of 2007 on Corporate Governance for Licensed
Commercial Banks in Sri Lanka, issued by the Central Bank of Sri Lanka and
Please help us to reduce the Bank's any amendments thereto
Carbon Footprint by reading this • Banking Act Direction No. 01 of 2016 on Capital Requirements under Basel III
report online and amendments thereto
website: http://www.sampath.lk • Listing Rules of the Colombo Stock Exchange (CSE)

• Companies Act No. 07 of 2007
Our Progress in Sustainability Reporting GRI102-51
2011 2012 2013 2014 - 2016 2017 - 2019
Stand-alone Report Incorporated in Stand-alone Report Integrated Report Integrated Report

GRI 3.1 Level B Annual Report GRI G4 - Comprehensive GRI G4 - Comprehensive GRI Standards - Comprehensive
External Assurance GRI 3.1 Level B External Assurance External Assurance External Assurance
Provided External Assurance Provided Provided Provided
Provided
4
Sampath Bank PLC | Annual Report 2019
GRI 102-46,48, 50, 52 GRI102-56
Scope and Boundary Combined Assurance uncertainty because they relate to events and
This report spans the period 1st January 2019 Sampath Bank's Management provides depend on circumstances that may or may not
to 31st December 2019 and covers our core assurance regarding the accuracy of the occur in the future. Factors that could cause
banking activities, which include the Consumer financial statements included in this report. actual results to differ materially from those
Banking and Corporate Banking pillars, our in the forward-looking statements include
Global Business segment as well as our Messrs Ernst & Young, Chartered national economic conditions, interest rates;
Treasury activities. Information in this regard Accountants provide external assurance exchange rates; credit or other risks of lending
has been obtained through interviews with for the Bank’s Financial Statements as well and investment activities, as well as competitive
senior management from respective business as an independent assurance on selected and regulatory factors. As such, forward-
units. Other internal sources of information sustainability information. looking statements mentioned in the report
and relevant external research reports have are deemed applicable only as of the date on
also been used to prepare this report. Forward-Looking Statements which they are made, and Sampath Bank does
This report contains certain forward-looking not undertake any obligation to update or
Also included in the report is a summary of the statements with respect to the financial revise any of them, whether as a result of new
performance of our subsidiaries - Siyapatha condition and results of operations of Sampath information, future events or otherwise.
Finance PLC, Sampath Centre Limited, Bank that, by their nature, involve risk and
SC Securities (Pvt) Limited and Sampath
Information Technology Solutions Limited.
Guide to read this report
It should be noted that there were no
significant changes from previous reporting
periods in the scope and boundaries, neither
were there any restatements compared to the
Annual Report issued in previous reporting
years.
Offline Version CD Version
Materiality Online Version
We view the materiality determination process
as a business tool that facilitates integrated
thinking and as such apply the principle of
materiality in assessing what information Matters of Interest to Where to Find it in this Report Page
Stakeholders Reference
is to be included in our integrated report.
Accordingly, this report focuses particularly on How we bring our vision to life Strategy and Business Model 44
those matters, opportunities and challenges Our leaders’ views Chairman’s Message 36
that impact materially on Sampath Bank Managing Director’s Review 40
and its ability to be a sustainable business Delivering on our strategy Capital Management Reports 59
that consistently delivers value to our key Business Reports 99
stakeholders over the short, medium and long How our business is governed Risk Management Report 126
term. and managed 137
Compliance Report
Corporate Governance Report 138
Our Capitals
Measuring our success Financial Information 193
We believe that our relevance as a Bank today
and in the future, and our ability to create long-
term value is interrelated and fundamentally
dependent on the forms of capital available Feedback GRI 102-53
to us (inputs) and how we use these capitals We welcome your questions regarding this report and your suggestions to help us improve the
in order to generate value (outputs and next edition. Please use the Stakeholder Feedback Form on page 383 of this report to let us know
outcomes). your thoughts.
5
MATERIAL
TOPICS
GRI 102-46,47/103-1,2
0DWHULDOLW\UHIHUVWRWKHNH\PDWWHUVWKDWDƩHFWRXUVWDNHKROGHUVDVZHOODVRXURZQEXVLQHVV:HEHOLHYHWKDWE\XQGHUVWDQGLQJWKHVHPDWHULDOWRSLFV
we can realign our strategy accordingly in order to safeguard the Bank's ability to create stakeholder value over the long term. Our materiality process
is described below:
Our Materiality Process Material Topics
Sustainable Growth
,GHQWLƪHGWKURXJK 0 3URƪWDELOLW\DQG)LQDQFLDO6WDELOLW\
y Matters arising from the code of ethics, 02. Business Continuity Planning
corporate governance framework and risk 03. Brand Equity
management process 04. Research and Development
Internal
Topics y Important areas connected to the day to 05. Channel Management
day business 06. Employee Relations
07. Talent Acquisition and Management
y Legal and regulatory changes applicable
08. Training and Development
to licensed commercial banks in Sri Lanka
09. Employee Engagement
y Concerns raised by the sustainability team 10. Customer Health and Safety
11. Marketing and Labelling
12. Complaint Management
,GHQWLƪHGWKURXJK
13. Environmental Management
y Changes to the economic policy and
Identifying other national regulations
Stakeholder Digital Leadership
Material y Emerging trends
Concerns 14. Information Security
Topics Changes in reporting requirements for
y 15. Digitisation Agenda
listed entities 16. Customer Convenience
y Benchmarking global standards
Supporting the National Development
Agenda
,GHQWLƪHGWKURXJK 17. Promote Financial Inclusion
18. Community Development
y Direct engagement with stakeholders
Changes
in the y Legal and regulatory changes Culture and Conduct
Operating applicable to various stakeholders 19. Anti-Corruption Practices
Environment
20. Customer Privacy
Materiality Matrix
ƶURXJKWKHDERYHSURFHVVZHKDYHLGHQWLƪHG
Prioritising 1 2 3 4
Material Topics. Each of these are mapped on the
High
Material 5 10 11 12
Materiality Matrix to indicate its relevance to the Bank
6LJQLƪFDQFHWR6WDNHKROGHUV
14 15 16 20
Topics
DQGLWVVLJQLƪFDQFHWRVWDNHKROGHUV
6 7 8 9
Medium
13 17 18 19
$FOHDUO\GHƪQHGPDQDJHPHQWDSSURDFKFUHDWHVD
Managing
strong foundation to integrate material topics into
Material
Low
our strategy to ensure each matter is managed

Topics
holistically.
Low Medium High
Relevance to the Bank
6
Material Topic Why is it Material? Topic GRI Management Approach Management
Boundary Relevance Approach Page
Reference
1 3URƪWDELOLW\ Creates the foundation for Internal/ GRI 201 Combine a robust business model, Refer page 1 of the
and Financial sustainable growth External strong governance and an integrated Supplementary
Stability GRI 202 risk management framework to ensure Report in Sampath
%XLOGVWUXVWDQGFRQƪGHQFH ORQJWHUPSURƪWDELOLW\DQGƪQDQFLDO website
among stakeholders GRI 203 stability in a highly competitive industry
2 Business Supports the execution of Internal Not Building resilience, capability and Refer page 3 of the
Continuity business strategy Applicable WULJJHULQJDQHƩHFWLYHUHVSRQVH Supplementary
Planning to safeguard the interests of key Report in Sampath
stakeholders, the Bank’s reputation, website
brand and business activities in the
event of unforeseen disruptions
3 Brand Equity Helps the Bank to grow Internal/ Not %XLOGLQJFXVWRPHUFRQƪGHQFHDQG Refer page 4 of the
market share External Applicable generating a loyal customer following Supplementary
with equal emphasis on strengthening Report in Sampath
Strengthens customer loyalty stakeholder perceptions of the brand website
4 Research and Enables the Bank to Internal Not Conduct market research to identify Refer page 4 of the
Development strengthen its competitive Applicable how customer needs are evolving in Supplementary
position order to realign our existing product Report in Sampath
portfolio accordingly website
Product research to help develop

new products and services in order to
become the preferred bank among all
key customer segments
5 Channel Improve connectivity and Internal Not Strengthen visibility and enhance Refer page 2 of the
Management accessibility Applicable customer convenience through better Supplementary
accessibility (multi delivery) Report in Sampath
website
6 Employee Supports the proper Internal GRI 402 Work towards creating an inclusive Refer pages
Relations execution of the Bank’s work environment encompassing 8 to 9 of the
strategy GRI 403 gender diversity and a multi-cultural, Supplementary
multi-generational workforce Report in Sampath
website
7 Talent Ensures necessary resources Internal GRI 202 Attract and retain the best people Refer page 7 of the
Acquisition and to drive the Bank’s strategy with the right mix of technical and Supplementary
Management GRI 401 behavioural competencies to achieve Report in Sampath
EXVLQHVVREMHFWLYHV website
GRI 405
8 Training and Helps to build a highly-skilled Internal GRI 404 Build a strong leadership pipeline and Refer page 8 of the
Development and capable workforce a future ready workforce by equipping Supplementary
geared to take the Bank to our employees with the desired level Report in Sampath
the next level of knowledge and skills that encourage website
them to innovate and lead the change
in the industry
7
MATERIAL
TOPICS
GRI 102-49

Reference
9 Employee Increases employee Internal Not Create a work environment where Refer page 6 of the
Engagement motivation Applicable employees feel recognised for Supplementary
their talents and valued for their Report in Sampath
commitment to the Bank’s strategic website
vision
10 Customer Strengthens brand credibility Internal/ GRI 416 Make certain that the Bank’s products Refer page 11 of
Health and External or services are not used in the the Supplementary
Safety %XLOGVFXVWRPHUFRQƪGHQFH IXUWKHUDQFHRIƪQDQFLDOFULPHVXFK Report in Sampath
DVPRQH\ODXQGHULQJƪQDQFLQJRI website
terrorism, fraud and corruption
11 Marketing and Strengthens brand credibility Internal/ GRI 417 Ensuring that all product promotions, Refer page 12 of
Labelling External sales and marketing communications the Supplementary
Builds customer trust are designed to provide our customers Report in Sampath
with adequate, timely and relevant website
information to enable them to make
informed decisions
12 Complaint Strengthens brand credibility Internal/ GRI 418 Reduce the number of customer Refer page 10 of
Management External complaints with each successive the Supplementary
Builds customer trust year by tackling the root cause for Report in Sampath
repetitive complaints and engaging website
necessary remedial action to prevent a
recurrence of the same issue
13 Environmental Ensures corporate Internal/ GRI 302 Find solutions to such global Refer page 17 of
Management sustainability External GRI 305 challenges as climate change, resource the Supplementary
scarcity and natural capital loss Report in Sampath
GRI 306
Builds stakeholder trust website
14 Information Safeguards the business Internal/ GRI 418 Investing in the Bank's cyber security Refer page 5 of the
Security against disruptive threats External ecosystem to accommodate latest Supplementary
(formerly developments in the world Report in Sampath
referred to as Enhances stakeholder website
Cyber Security)* FRQƪGHQFHLQWKHEUDQG 5DLVLQJDZDUHQHVVDPRQJVWDƩ
regarding cyber risks and in particular
new social engineering and phishing
techniques
Strengthening the governance

framework to ensure risks are regularly
reviewed and appropriate proactive
and reactive measurers are in place as
and when needed
15 Digitisation Enables the provision of Internal Not Investment in IT infrastructure to Refer page 2 of the
Agenda cheaper, better, faster Applicable enhance technological capabilities Supplementary
products and services to the Report in Sampath
customer website
8
GRI 102-49

Reference
16 Customer Provides an opportunity for Internal/ Not Look for new and more innovative Refer page 10 of
Convenience the Bank to strengthen its External Applicable ways to give our customers a more the Supplementary
competitive edge convenient banking experience and in Report in Sampath
doing so strive to capture the diverse website
Increases customer loyalty needs of each customer segment and
create customised solutions that are
best suited for each target group
17 Promote Increases market reach Internal/ Not Ensure all Sri Lankans have access to Refer page 15 of
Financial External Applicable ƪQDQFLDOVHUYLFHVUHJDUGOHVVRIZKHUH the Supplementary
Inclusion Builds customer trust they live or socio-economic status, in Report in Sampath
turn reducing poverty and increasing website
prosperity
18 Community Strengthens brand credibility Internal/ GRI 413 Respond to Sri Lanka’s emerging Refer pages
Development and loyalty External socio-economic needs in a manner 13 to 14 of the
that would trigger meaningful societal Supplementary
Builds stakeholder trust change in the longer term Report in Sampath
website
19 Anti-Corruption Reinforces the Bank’s value Internal/ GRI 205 Promoting a culture of honesty and fair Refer page 3 of the
Practices culture External dealing and encouraging employees to Supplementary
observe ethical business practices at Report in Sampath
Enhances brand credibility in all times and not attempt to improperly website
the eyes of stakeholders LQƫXHQFHRWKHUVRUEHLQƫXHQFHGE\
others (directly or indirectly) by paying
or accepting bribes or kickbacks in any
form
20 Customer Strengthens brand credibility Internal/ GRI 418 Ongoing investments in enhanced Refer page 12 of
Privacy External VHFXULW\V\VWHPVDQGYHULƪFDWLRQ the Supplementary
Builds customer trust protocols across all available channels Report in Sampath
of service website
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LQOLJKWRIWKHEURDGHUVFRSHRƩHUHGXQGHU,QIRUPDWLRQ6HFXULW\DUHD&RQWH[WXDOO\,QIRUPDWLRQ6HFXULW\UHIHUVWRWKHSURWHFWLRQRIWKH%DQNţV
information assets from any manner of threats, be it physical or digital, internal or external, whereas Cyber Security prevents unauthorised access
through the internet. As such, Cyber Security is viewed only as a single component of the Bank’s Information Security architecture.
9
FINANCIAL
HIGHLIGHTS
Total Assets CASA % Total Taxes Paid to the Government
Rs 962.4 Bn 35.2 % Rs 19.0 Bn

Total Capital Ratio
Total Operating Income
Rs 55.2 Bn 18.12 %
2018 2018 2018
Rs 914.2 Bn 33.4% Rs 12.3 Bn
5 % 2018
Rs 53.7 Bn
180 bps 2018
15.73%
54 %
3 % 239 bps
Total Assets & Gross Income Total Advances & Total Deposits Composition of Total Operating Income 2019
Rs Bn Rs Bn Rs Bn % %
6.5
1,000 140 800 120
100.2
96.0
118.9 90.4 90.7
800 120 18.2
115.3 600 90
600 100
92.6 400 60 75.3
400 80
67.6 200 30
200 60
659
795
914
962
467
516
572
630
670
698
720
718
0 40 0 0
2016 2017 2018 2019 2016 2017 2018 2019 Net Interest Income
Net Fee & Commission Income
Total Assets Total Advances - Gross Total Deposits
Trading, Investment & Other Operating Income
Gross Income (RHS) Loan to Deposit Ratio (RHS)
Composition of Total Expenses 2019 Operating Expenses & Cost to Income Tier I Capital & Total Capital
% Rs Bn % %
9.9
25 50 20
47.8 36.9
20 42.3 35.9 40
15
15.3
15 30
46.3 10
10 20
5
28.5 5 10
12.87
10.26
14.41
12.08
15.73
14.22
18.12
15.5
16.9
19.3
20.4
8.31
Operating Expenses 0 0 0
2016 2017 2018 2019 2016 2017 2018 2019
Impairment Charge
Taxes on Financial Services
Operating Expenses Tier I Capital
Income Tax Expense
Cost to Income (RHS) Total Capital
10
GRI 102-7
Bank Group
2019 2018 Change % 2019 2018 Change %
3URƪWDELOLW\5V0Q
Gross income 118,855 115,310 3.1 125,921 121,884 3.3
Total operating income 55,177 53,743 2.7 59,141 57,233 3.3
Operating expenses & impairment charge 32,939 30,530 7.9 35,651 32,963 8.2
2SHUDWLQJSURƪWEHIRUHWD[HVRQƪQDQFLDOVHUYLFHV 22,238 23,213 (4.2) 23,490 24,270 (3.2)
7D[HVRQƪQDQFLDOVHUYLFHV 6,740 4,863 38.6 7,152 5,149 38.9
3URƪWEHIRUHLQFRPHWD[ 15,498 18,350 (15.5) 16,338 19,121 (14.6)
Income tax expense 4,347 6,207 (30.0) 4,670 6,515 (28.3)
3URƪWIRUWKH\HDU 11,151 12,143 (8.2) 11,668 12,606 (7.4)
$VVHWV /LDELOLWLHV5V0Q

Due to banks & due to depositors 718,301 698,085 2.9 731,240 707,368 3.4
Gross loans & advances 719,624 670,308 7.4 751,078 699,426 7.4
Total equity 105,006 84,389 24.4 111,457 90,051 23.8
Total liabilities 857,345 829,836 3.3 887,866 857,735 3.5
Total assets 962,350 914,225 5.3 999,323 947,785 5.4
Investor Information
Net asset value per share (Rs) 275.27 300.42 (8.4) 292.19 320.58 (8.9)
Market value per share (Rs) 162.40 235.00 (30.9)
Earnings per share - Basic/Diluted (Rs) 32.84 43.18 (23.9) 34.36 44.83 (23.3)
Total dividend per share (Rs) 11.75 16.25 (27.7)
Cash dividend per share (Rs) 11.75 5.00 135
Dividend cover (Times) 2.49 2.66 (6.4)
Dividend payout ratio (%) 40.19 37.59 6.9
Gross dividend (Rs Mn) 4,482 4,565 (1.8)
Market capitalisation (Rs Mn) 61,949 66,012 (6.2)
Other Ratios
Dividend yield (%) 7.24 6.91 4.8
Earnings yield (%) 20.22 18.37 10.1 21.16 19.08 10.9
Price earning ratio (Times) 4.95 5.44 (9.0) 4.73 5.24 (9.7)
Price to book value (Times) 0.59 0.78 (24.4) 0.56 0.73 (23.3)
Total impairment on loans as a % of gross loans and advances 4.20 3.03 38.6 4.26 3.13 36.1
Cost of risk (%) 1.74 1.69 3.0 1.82 1.74 4.6
Non-performing loan ratio (%) 6.37 3.69 72.6
Liquid assets ratio
'RPHVWLF%DQNLQJ8QLW 21.51 21.50 0.1
2Ʃ6KRUH%DQNLQJ8QLW 26.88 25.78 4.3
Liquidity coverage ratio
- Rupee (%) 177.29 125.03 41.8
- All currency (%) 149.17 125.42 18.9
Net stable funding ratio (%) 126.80 n/a n/a
Fitch Rating A+ (lka) A+ (lka)
(Stable) (Stable)
Moody's Rating B2 B2
(Stable) (Stable)
Financial Goals and Achievements - Bank

Goal 2019 2018 2017 2016 2015
Financial Indicator
Return on average assets (before tax) (%) Over 2.00 1.66 2.13 2.29 2.14 1.90
Return on average assets (after tax) (%) Over 1.00 1.20 1.41 1.67 1.55 1.28
Return on average equity (after tax) (%) Over 16.00 11.78 16.02 23.35 23.47 18.42
*URZWKLQSURƪW Over 15.00 (8.17) 0.32 32.65 48.76 24.83
Growth in total assets (%) Over 15.00 5.26 14.98 20.74 25.36 21.58
Cost to income ratio (excluding FSVAT, FSNBT & DRL) (%) Below 50.00 36.91 35.92 42.32 47.83 52.75
Capital adequacy ratios Basel III Basel III Basel III Basel II Basel II
Common equity Tier I (%) Over 7.00 14.22 12.08 10.26 n/a n/a
Total Tier I (%) Over 8.50 14.22 12.08 10.26 8.31 7.90
Total capital (Tier I+Tier II) (%) Over 12.50 18.12 15.73 14.41 12.87 12.26
Leverage ratio (%) Over 3.00 8.12 n/a n/a n/a n/a
n/a - not applicable
11
NON-FINANCIAL
HIGHLIGHTS
People Planet
737 40 899 129
Youth War widows Trees saved Trees saved
through paper through Slip-
recycling less Banking
transactions
109 1,134
persons trained under
182
Export-ready 'Sampath Saviya' MSMEs 1,349
customers entrepreneurship Trees saved
development
programme
321
66 Trees saved through
Persons nearing transactions of Cash
retirement age Deposit Machines
"Our commitment to social and environmental sustainability Rs 2.6 Bn

resonates across everything we do and our strategy, our products Finance to Renewable
and services, our ways of working, all reflect Sampath Bank's deep Energy Projects
rooted commitment to support the achievement of Sri Lanka's
social and environmental goals."
Hydro Power Solar Power
Rs 2.0 Bn Rs 0.6 Bn
Rs 13.6 Bn Rs 9.2 Bn Rs 57.3 Bn
13.7 MW 6.5 MW
Value Distributed to Value Distributed Value Distributed
Power Power
the Government among Investors among Depositors
Generation Generation
and Lenders
12
GRI 102-7
Bank
Key Indicator Measurement 2019 2018
Manufactured Investment in building, plant and equipment Rs Mn 864 1,434

Capital Number of ATMs Number 423 419
Number of Cash Deposit Machines Number 429 365
Intellectual Capital Investment in IT development Rs Mn 248 517
Brand value Rs Mn 25,847 19,372
Brand rating Rating AA+ AA+
Human Capital Total employees Number 4,134 4,189
Investment in training Rs Mn 55.7 70.4
Training hours per employee Hours 33.6 31.5
,QWHUQDOVWDƩSURPRWLRQV Number 336 228
6WDƩUHWHQWLRQUDWLR % 98 98
Return to work after maternity leave % 99 99
Industrial disputes Number Nil Nil
Percentage of employees receiving performance appraisals % 100 100
Female representation in senior management
(excluding corporate management) % 24 22
Gender diversity ratio (Male : Female) Ratio 65:35 65:35
Revenue per employee Rs Mn 28.8 27.5
Social & Number of persons trained under 'Sampath Saviya' programme Number 1,134 980
Relationship 1XPEHURIEHQHƪFLDULHVIURPFRPPXQLW\SURMHFWV Number 380,655 156,321
Capital Intern and industrial placements intake Number 1,351 1,613
Total taxes paid Rs Bn 19.0 12.3
Natural Capital Carbon footprint of the Bank tCO2e 11,057 11,261
(OHFWULFLW\FRQVXPSWLRQ+HDG2ƬFH kWh 3,269,475 3,515,962
Loans disbursed under green lending schemes Rs Mn 732.4 655.7
Electricity saving through solar power generation kWh 181,936 95,317
1XPEHURI%HQHƪFLDULHV Electricity Saving through

from Community Projects 2018 Solar Power Generation 2018
156,321 95,317 kWh
380,655 181,936 kWh
2019 144 % 2019 91 %
No. of Persons Trained under ‘Sampath

Staff Strength: Gender-wise Customer Touch Points Saviya’ Programme
3,000 500 1,200
2,500 400
2,000 800
300
1,500
200
1,000 400
500 100
1,374
2,611
2,586
1,400
2,730
1,459
2,706
1,428
1,134
381
229
108
391
229
419
229
423
229
429
183
365
293
459
980
0 0 0
2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019
Male Total ATMs No. of Branches

Female No. of Cash Deposit Machines
13
GREEN
RECOGNITION
Sampath Bank PLC Annual Report 2019:

A Carbon Neutral Product
As part of the ongoing commitment to achieving a Net Zero Carbon Footprint,

the Sampath Bank PLC Annual Report 2019 was declared a Carbon Neutral Product,
following an independent assessment by Climate Smart Initiatives (Pvt) Ltd.
This is the fifth consecutive year in which the Annual Report has been
declared as a Carbon Neutral Product.
KEEPING OUR SENSE OF

PURPOSE
INTRODUCTORY INFORMATION
Our Vision and Values | 16

About the Bank | 17
Product Portfolio | 18
Board of Directors | 20
Corporate Management | 26
Chief Managers | 30
Senior Managers | 32
OUR VISION GRI 102-16
AND VALUES
Our Vision
ƶH*URZLQJ)RUFHLQ6UL/DQNDQ)LQDQFLDO6HUYLFHV
Our
Values
Create a learning Encourage Monitor and

culture that and promote demonstrate
promotes teamwork in an impressive
Treat all internal Open to 8QFRPSURPLVLQJ
individual and
and external all aspects of feedback and commitment to ethical and
organisational
development customers behaviour. demonstrate results. professional
as well as the way we an eagerness standards of
promoting would like to be for personal behaviour.
innovation development.
treated.
and value for
customers.
16
Introductory Information Managing Our Business Management Discussion & Analysis Risk & Governance Financial Information Supplementary Information
ABOUT THE GRI 102-1,2
BANK
2XUHƩRUWVWRSURYLGH Sampath Bank PLC was incorporated in 1986 as a licensed commercial bank and
subsequently listed on the main board of the Colombo Stock Exchange in 1987. Since then
IDVWHƬFLHQWEDQNLQJ RXUMRXUQH\KDVFRQWLQXHGHYROYHLQOLQHZLWKRXUFRPPLWPHQWWREULQJSURVSHULW\WR6UL
products combined with /DQNDDQGLWVSHRSOH2XUHƩRUWVWRSURYLGHIDVWHƬFLHQWEDQNLQJSURGXFWVFRPELQHGZLWK
outstanding service has outstanding service has earned Sampath Bank the reputation as one of the nation's most
earned Sampath Bank WUXVWHGƪQDQFLDOLQVWLWXWLRQVVHUYLQJPLOOLRQVDFURVV6UL/DQND
the reputation as one of (TXDOHPSKDVLVRQVWURQJFRQVLVWHQWƪQDQFLDOUHVXOWVKDYHHQDEOHG6DPSDWK%DQNWR

the nation's most trusted PDLQWDLQDŢ$OND6WDEOHţFUHGLWUDWLQJ,Q6DPSDWK%DQNEHFDPHWKHƪUVWORFDOEDQN
ƪQDQFLDOLQVWLWXWLRQV WREHLQFOXGHGLQWRWKH06&,)URQWLHU0DUNHW,QGH[RQHRIPDQ\VLJQLƪFDQWPLOHVWRQHVLQ
serving millions across RXULOOXVWULRXVMRXUQH\
Sri Lanka.
:KDWZHRƩHU 2010-19
y 2011 - Introduced the Super Branch
Consumer Banking
FRQFHSWRƩHULQJGD\EDQNLQJ 1990-99
Banking and other y ƶH'(%,7&$5'ZDVLQWURGXFHG
y 2016 - First bank in Sri Lanka to launch
ƪQDQFLDOVHUYLFHVWR LQDVVRFLDWLRQZLWK&,5586DQG
Visa PayWave enabled Cards
individual customers and 0$(6752DƪUVWLQ6RXWK$VLD
small-to medium-sized y 2018 - Launch of Slip-less Banking for
y 1999 - Sampath Bank was listed under
enterprises WKHƪUVWWLPHLQ6UL/DQND
the 300 Best Small Companies in the
Corporate Banking world by the Forbes Global Magazine
Advanced Banking
solutions and corporate
advisory services
to large corporates,
ƪQDQFLDOLQVWLWXWLRQVDQG
multinational companies
Treasury Services
Wealth management and
portfolio management
services for high net worth
2000-09
individuals and corporate
y 2000 - Launched the "Sampathnet"
clients
internet banking facility
y %HFDPHWKHƪUVWLQ6UL/DQND
1980-89
to introduce "one day clearing" for y ƶHƪUVWEDQN
all cheques drawn on any Sampath in Sri Lanka to operate
229 Bank branch a multi-point network
Branches of automated teller
y 2004 - Awarded A+ (sri) National
machines
Rating by Fitch Rating (Lanka)
Limited y 8QLEDQNLQJ
423 y 2009 - Became the third largest
system was introduced
ATMs to Sri Lanka
private sector commercial bank in
Sri Lanka in terms of total assets
17
PRODUCT GRI 102-2
PORTFOLIO
Consumer Banking
Current Accounts  Sampath General Current Account

 Sampath Double S
 Sampath Supreme Current Account
 Sampath Hit Saver
 Sampath Payment Guaranteed
Cheques
 Sampath Pubudu & Sapiri
Savings  Regular Savings  X-SET

 Children's Savings
 Teenage Savings  Ladies 1st
 Ladies Savings
 Senior Citizens' Savings  Sampath Sanhinda Saver
 Money Market Accounts
 Personal & Kids Investment Account
 Regular Deposits  Fixed Deposits

Term Deposit Accounts
 Flexible Deposits  Certificate of Deposits
 Senior Citizens' Deposits
 Sampath Kalin Cash
 Personal Foreign Currency Accounts  Easy FD
Foreign Currency Accounts (PFCA)
 Business Foreign Currency Accounts  Sampath Sanhinda FD
(BFCA)
 Inward Investment Accounts (IIA)
 Outward Investment Accounts (OIA)
 Diplomatic Foreign Currency Accounts
(DFA) and Diplomatic Rupee
Accounts (DRA)
 Resident Guest Scheme – Special
Accounts
 Senior Foreign Nationals – Special
Accounts
 Sevana Housing Loan
 Sampath EXPAT Account
 Sevana Dayada Housing Loan
 Foreign Currency Housing Loan
 Housing Loans
Loans
 Business Loans  Factoring Facility
 Personal Loans  Sampath BIZCASH
 Sampath Saviliya
 Sampath Samachara Loan

Leasing  Sampath Leasing  Special Loans for Government
Medical Officers
 ODFD
Accounts for Professionals  Sampath Professional Account
Pawning  Sampath Randiriya
Agent Banking  MY BANK
Gift Vouchers  Sampath Thilina  Sampath Visa Credit Cards

 Sampath Mastercard Credit Cards
 Sampath Credit Cards  Sampath Bank American Express®
SampathCards
 Sampath Debit Cards Credit Cards
 Sampath Web Card
 Sampath Vishwa Retail
 Sampath Vishwa Corporate
Foreign Remittances  e-Remittance  PayEasy
 Ustocktrade
 Chatbot
Relationship Banking  Platinum Plus
 Sampath WePay
 Sampath Bank App
 Sampath Slipless Banking
Digital/Electronic Banking  Internet Banking
 Sampath igift
 Mobile Banking
 Sampath Missed Call Banking
 ATM Banking
 Telebanking
 SMS Alertz
 SMS Banking
Safety Lockers  Sampath Safe Deposit Lockers  Mobile Cash
 Banking Robot
Clubs & Societies Accounts  Sampath Samaja  Sampath Cardless Cash
 Off-site ATMs
 Interbank ATM Network
Entrepreneur Development  Sampath Saviya  Cash Deposit ATMs
 Cheque Deposit ATMs
 Cash Deposit Kiosks
18
New Offerings
Corporate Banking
 Corporate Credit Sampath WePay
Financing  Corporate Finance
 Foreign Currency Banking Unit (FCBU) "Sampath WePay", a mobile based payment app,
heralds the future of digital payments, allowing
 Trade Services customers of any bank to get on board using credit or
International Trade  Export House
 Correspondent Banks debit cards from any bank, including Sampath Bank
accounts and credit cards.
 Sampath Vishwa Corporate
 Sampath Payment Gateway Customers will be able to do QR-based merchant
Electronic Banking
 Sampath Corporate Payment System
 evolve payments, bill payments, third party money transfers
etc. using the app.
Treasury The key objective of WePay is to convert all cash-based

transactions into digital media, thereby enriching the
Spot Contract Treasury Bills
overall banking experience.
Forward Exchange Contract Treasury Bonds

WePay connects you to over 200 billers (as at now),
with no transaction fee. WePay is available for
Repo & Reverse Repo
download on Android and iOS. In addition, WePay
also offers a VISA stored-value wallet card for online
transactions.
19
BOARD OF
DIRECTORS
Left to Right
Prof Malik Ranasinghe - Chairman

Mr Nanda Fernando - Managing Director
Mrs Saumya Amarasekera, PC - Deputy Chairperson
Mr Sanjiva Senanayake - Senior Independent Director
Mrs Dhara Wijayatilake - Director
Ms Annika Senanayake - Director
Mr Ranil Pathirana - Director
20
Left to Right
Mr Rushanka Silva - Director

Mr Dilip de S Wijeyeratne - Director
Ms Aroshi Nanayakkara - Director
Dr Sanjiva Weerawarana - Director
Mr Deshal de Mel - Director
Mr Lasantha Senaratne - Company Secretary
Mr Muditha Walpola - Assistant Company Secretary
21
BOARD OF GRI 102-22,23
DIRECTORS
Prof Malik Ranasinghe )RUPHU$SSRLQWPHQWV )RUPHU$SSRLQWPHQWV

Chairman 9LFH&KDQFHOORURIWKH8QLYHUVLW\RI0RUDWXZD Chairman of Bankers’ Technical Advisory
Independent, Non-Executive Director &RPPLVVLRQ0HPEHURI8QLYHUVLW\*UDQWV Committee which functions under the purview
Commission, Council Member of the National of the Sri Lanka Bankers’ Association, a past
4XDOLƪFDWLRQV6NLOOV ([SHULHQFH Research Council, Chairman of the Committee District Commissioner of the Sri Lanka Scout
of Vice Chancellors and Directors of Sri Association and a former Director of S C
Extensive governance experience as a former
Lanka, Council Member of the Association Securities (Pvt) Ltd. and Lanka Clear (Pvt) Ltd.
Vice-Chancellor and a Non-Executive Director on
Corporate Boards. A Fellow Member, Chartered RI&RPPRQZHDOWK8QLYHUVLWLHV)HOORZRI
Engineer and International Professional WKH1DWLRQDO8QLYHUVLW\RI6LQJDSRUH'HDQ Mrs Saumya Amarasekera, President’s
Engineer of the Institution of Engineers, Sri )DFXOW\RI(QJLQHHULQJ8QLYHUVLW\RI0RUDWXZD Counsel
Lanka, Fellow of the National Academy of Independent, Non-Executive Director of the Deputy Chairperson
6FLHQFHV6UL/DQNDDQGWKH,QVWLWXWHRI3URMHFW Colombo Stock Exchange, Lanka IOC PLC and
Non-Independent, Non-Executive Director
Managers of Sri Lanka, Graduate Member, Hemas Power PLC.
Sri Lanka Institute of Directors, PhD from the 4XDOLƪFDWLRQV6NLOOV ([SHULHQFH
8QLYHUVLW\RI%ULWLVK&ROXPELD9DQFRXYHU Mr Nanda Fernando
Counts over 30 years in active legal practice
Canada; in Civil Engineering Economics as a Managing Director
Canadian Commonwealth Scholar; recipient in Civil Law, practicing in the Original,
Executive Director
of accolades and awards including the 1999 Appellate and Supreme Courts as an
General Research Committee Award for Attorney-at-Law. Holds a Masters degree in
4XDOLƪFDWLRQV6NLOOV ([SHULHQFH
Outstanding Contribution to Sri Lankan Science /DZIURPWKH8QLYHUVLW\RI3HQQV\OYDQLDZLWK
Over 35 years of experience in banking and
from the Sri Lanka Association for Advancement particular emphasis on insurance, privacy
ƪQDQFHGULYLQJPXOWLSOHDVSHFWVRIEDQNLQJ
of Science, the Committee of Vice Chancellors and defamation laws. She has experience
and Directors (CVCD) Excellence Award for 2012 business, transactional banking in retail and
in areas relating to property, testamentary,
for the Most Outstanding Senior Researcher in corporate banking, amongst many other key
condominium disputes, trusts, family law,
Technology and related Sciences, the Award for JURZWKDUHDV6HQLRU)HOORZ0HPEHURIƶH
and money recovery. Also litigates on behalf
Outstanding Contribution to Education 2012 at Institute of Bankers of Sri Lanka and holds a
RIƪQDQFLDOVHUYLFHVVHFWRUFOLHQWVDQG
World Education Congress and the Education Masters of Business Administration specialising
LQ0DUNHWLQJIURP6LNNLP0DQLSDO8QLYHUVLW\ has specialised in local and international
Leadership Award 2013 in Singapore.
,QGLD+HLVDOVRDTXDOLƪHG)RXU%HDG/HDGHU arbitrations.
$SSRLQWHGWRWKH%RDUG Trainer and functions as the Group Advisor to
WKH6FRXWV*URXS&RPPLWWHHRI6ƶRPDVţ $SSRLQWHGWRWKH%RDUG
30th August 2011 as an Independent, Non-
Executive Director. Appointed as Deputy College, Mount Lavinia. VW-XQHDVD1RQ,QGHSHQGHQW1RQ
Chairman on 1st August 2016 and appointed as Executive Director and appointed as Deputy
the Chairman on 2nd April 2019. $SSRLQWHGWRWKH%RDUG Chairperson on 15th May 2019.
13th September 2016 as an Executive Director.
0HPEHUVKLSLQ%RDUG6XE&RPPLWWHHV 0HPEHUVKLSLQ%RDUG6XE&RPPLWWHHV
Chairman of Board Credit Committee, Board 0HPEHUVKLSLQ%RDUG6XE&RPPLWWHHV Member of Board Nomination Committee,
Capital Planning Committee and Board Strategic Member of Board Integrated Risk Management Board Human Resources and Remuneration
Planning Committee. Member of Board Committee, Board Credit Committee, Board Committee, Board Integrated Risk
Nomination Committee, Board Related Party Shareholder Relations Committee, Board Management Committee and Board Marketing
Transactions Review Committee and Board
Strategic Planning Committee, Board Treasury Committee.
Treasury Committee.
Committee, Board Capital Planning Committee,
Board IT Committee and Board Marketing &XUUHQW$SSRLQWPHQWV
Chairman of Board IT Committee until
Committee. Deputy Chairperson of Sampath Bank
1st February 2020.
PLC, Legal practitioner, Member of the Bar
&XUUHQW$SSRLQWPHQWV
&XUUHQW$SSRLQWPHQWV Association of Sri Lanka. Director of Manson
Managing Director of Sampath Bank PLC, Investments (Pvt) Ltd., Ceylon Leisure Holdings
Chairman of Sampath Bank PLC, Senior
Director of Lanka Financial Services Bureau (Pvt) Ltd., Leisure Lines Lanka (Pvt) Ltd. and
3URIHVVRULQ&LYLO(QJLQHHULQJDW8QLYHUVLW\RI
Moratuwa, Independent, Non-Executive Director Ltd., a Governing Board Director of the Institute Silver Aisle (Pvt) Ltd.
RI7HHMD\/DQND3/&$FFHVV(QJLQHHULQJ3/& of Bankers of Sri Lanka and also functions as a
8QLWHG0RWRUV/DQND3/&DQG5HVXV(QHUJ\3/& Director of LankaBangla Finance Limited.
22
Mr Sanjiva Senanayake Mrs Dhara Wijayatilake Ms Annika Senanayake

6HQLRU,QGHSHQGHQW'LUHFWRU Independent, Non-Executive Director Independent, Non-Executive Director
Non-Executive Director
4XDOLƪFDWLRQV6NLOOV ([SHULHQFH 4XDOLƪFDWLRQV6NLOOV ([SHULHQFH 4XDOLƪFDWLRQV6NLOOV ([SHULHQFH

([WHQVLYHH[SHULHQFHLQWKHƪQDQFLDOVHUYLFHV Attorney-at-Law, LLB (Cey), retired from the Bachelor of Arts in Management Studies
sector locally and overseas having served Public Service of Sri Lanka in August 2015, IURPWKH8QLYHUVLW\RI1RWWLQJKDP+HDGV
in senior management positions at premier DIWHU\HDUVRIVHUYLFHƶHƪUVWZRPDQLQWKH Corporate Planning for the IWS Holdings
ƪQDQFLDOLQVWLWXWLRQVDQGDVDQLQGHSHQGHQW Public Service of Sri Lanka to be appointed as a *URXSLQGLYHUVLƪHGEXVLQHVVLQWHUHVWVLQ
consultant. Holds Master of Science and Secretary to a Cabinet Ministry. telecommunications, logistics, media and
Bachelor of Science Degrees in Engineering broadcast, automobiles, aviation, warehousing,
IURP8QLYHUVLW\RI/RQGRQ $SSRLQWHGWRWKH%RDUG food & beverage processing and packaging.
30th August 2011 as an Independent, Non- 0V6HQDQD\DNHLV&11ţVRƬFLDOEXVLQHVV
$SSRLQWHGWRWKH%RDUG Executive Director. representative for Sri Lanka.
VW-DQXDU\DVDQ,QGHSHQGHQW1RQ
Executive Director and appointed as Senior 0HPEHUVKLSLQ%RDUG6XE&RPPLWWHHV $SSRLQWHGWRWKH%RDUG
'LUHFWRURQWK-DQXDU\ Chairperson of Board Related Party Appointed to the Board as an Independent,
Transactions Review Committee and Board 1RQ([HFXWLYH'LUHFWRURQVW-DQXDU\
0HPEHUVKLSLQ%RDUG6XE&RPPLWWHHV Human Resources and Remuneration
Chairman of Board Integrated Risk Committee. Member of Board Nomination 0HPEHUVKLSLQ%RDUG6XE&RPPLWWHHV
Management Committee and Board Treasury Committee, Board Strategic Planning Chairperson of the Board Nomination
Committee. Member of Board Nomination Committee, Board Credit Committee and Board Committee, Member of the Board Strategic
Committee, Board Related Party Transactions Audit Committee (up to October 2019). Planning Committee, Board Human Resources
Review Committee, Board Capital Planning and Remuneration Committee, Board
Committee, Board IT Committee and Board &XUUHQW$SSRLQWPHQWV Marketing Committee and Board IT Committee.
Human Resources and Remuneration Independent, Non-Executive Director of
Committee. 6DPSDWK%DQN3/&&KDLUSHUVRQRI2ƬFHIRU &XUUHQW$SSRLQWPHQWV
Reparations, Secretary General and CEO of the Independent, Non-Executive Director of
&XUUHQW$SSRLQWPHQWV Ceylon Chamber of Commerce, Member of Sampath Bank PLC. Director at IWS Holdings
Senior Director of Sampath Bank PLC, Non- the Sri Lanka Law Commission, Non-Executive (Private) Limited. Director at IWS Leisure
Executive Director of Hemas Pharmaceuticals Director of SLINTEC Academy, Non-Executive (Private) Limited, Scan Furniture (Private)
(Pvt) Ltd. Director of Ingame Entertainment (Pvt) Ltd. Limited. Director at RAD Productions (Private)
and Non-Executive Director of CCC-ICLP ADR Limited. Trustee - Youth Business Sri Lanka,
)RUPHU$SSRLQWPHQWV Centre (Pvt) Ltd. Ceylon Chamber of Commerce, Trustee of the
6HQLRU,QYHVWPHQW2ƬFHU*OREDO)LQDQFLDO 5D\:LMHZDUGHQH&KDULWDEOH7UXVWLQ6UL/DQND
Markets (West Africa), IFC (the private sector )RUPHU$SSRLQWPHQWV
investment arm of World Bank Group); 6HFUHWDU\WRWKH0LQLVWU\RI-XVWLFH6HFUHWDU\WR
Resident Representative for Sri Lanka the Ministry of Plan Implementation, Secretary
and Maldives, Assistant General Manager to the Ministry of Technology and Research,
(Treasury and Investment Banking) of National Member of the Public Service Commission.
Development Bank PLC, Consultant (Treasury
and Business Development) of Commercial
Bank of Ceylon PLC, Senior Risk Manager -
Citibank Sydney, Australia, Head of Treasury
and Investment Banking Citibank Brunei,
various positions including Treasurer and Head
of Public Sector Business Citibank Colombo,
and Non-Executive Director of Asian Hotel and
Properties PLC.
23
BOARD OF
DIRECTORS
Mr Ranil Pathirana Mr Rushanka Silva Mr Dilip de S Wijeyeratne

Independent, Non-Executive Director Non-Independent, Non-Executive Director Independent, Non-Executive Director
4XDOLƪFDWLRQV6NLOOV ([SHULHQFH 4XDOLƪFDWLRQV6NLOOV ([SHULHQFH 4XDOLƪFDWLRQV6NLOOV ([SHULHQFH

([WHQVLYHH[SHULHQFHLQƪQDQFHDQG Dedicated professional with a solid background An Associate Member of the Institute of
PDQDJHPHQWLQƪQDQFLDODSSDUHODQGHQHUJ\ in Management Accounting, Marketing and Chartered Accountants of Sri Lanka (ACA),
sectors. Fellow member of the Chartered Sales. An Associate Member of the Chartered Fellow Member of the Chartered Institute of
Institute of Management Accountants, ,QVWLWXWHRI0DQDJHPHQW$FFRXQWDQWV8. 0DQDJHPHQW$FFRXQWDQWV8.)&0$DQGD
8.)&0$DQGKROGVD%DFKHORURI (ACMA). Strategic and creative thinker who Graduate Member of the Australian Institute of
&RPPHUFHGHJUHHIURPWKH8QLYHUVLW\RI6UL has proven his ability to develop strong client &RPSDQ\'LUHFWRUV*$,&'$VHQLRUƪQDQFH
-D\HZDUGHQHSXUD relationships quickly and promote teamwork banking professional and a principal consultant
HƬFLHQWO\DQGDOHDGHUZLWKDULFKPL[WXUH who provides advisory services to companies
$SSRLQWHGWRWKH%RDUG of experience and successes in the business globally to expand operations within Middle
VW-DQXDU\DVD1RQ([HFXWLYH'LUHFWRU world, having completed his secondary East, Sri Lanka and Australia.
Became an Independent, Non-Executive education at Trinity College, Kandy. Holds
'LUHFWRURQVW-DQXDU\ a Masters of Business Administration from $SSRLQWHGWRWKH%RDUG
8QLYHUVLW\RI:HVWHUQ6\GQH\$XVWUDOLD$Q 13th November 2018 as a Non-Independent,
0HPEHUVKLSLQ%RDUG6XE&RPPLWWHHV DOXPQXVRI+DUYDUG%XVLQHVV6FKRRO86$ Non-Executive Director. Became an
Chairman of Board Audit Committee, Member Independent, Non-Executive Director on 08th
$SSRLQWHGWRWKH%RDUG August 2019.
of Board Strategic Planning Committee and
Board Capital Planning Committee. 1st September 2017 as a Non-Independent,
Non-Executive Director. 0HPEHUVKLSLQ%RDUG6XE&RPPLWWHHV
&XUUHQW$SSRLQWPHQWV Member of Board Audit Committee, Board
0HPEHUVKLSLQ%RDUG6XE&RPPLWWHHV Integrated Risk Management Committee,
Independent, Non-Executive Director of
Sampath Bank PLC, Chairman of Renewgen Chairman of Board Shareholder Relations Board Human Resources and Remuneration
(Pvt) Ltd., Managing Director of Hirdaramani Committee. Member of Board Credit Committee, Board Strategic Planning
International Exports (Pvt) Ltd., Director Committee, Board Strategic Planning Committee, Board Capital Planning Committee
- Hirdaramani Group of Companies, Non- Committee, Board Marketing Committee, and Board Treasury Committee.
Executive Director of Windforce (Pvt) Ltd., Board Treasury Committee and Board IT
Star Packaging (Pvt) Ltd., Alumex PLC, Odel Committee. &XUUHQW$SSRLQWPHQWV
PLC, Ambeon Capital PLC, Ceylon Hotels Independent, Non-Executive Director of
Corporation Ltd., Bera Pera Wood (Pvt) Ltd., &XUUHQW$SSRLQWPHQWV Sampath Bank PLC, Non-Executive Director
CKT Apparel (Pvt) Ltd., Ceylon Knit Trend (Pvt) Non-Independent, Non-Executive Director of of Singer (Sri Lanka) PLC, Regnis Lanka PLC,
/WG+,)DVKLRQ+ROGLQJV3YW/WGDQG8QLRQ Sampath Bank PLC. Chairman of Braybrooke Singer Industries (Ceylon) PLC and Hayleys
Residencies (Pvt) Ltd. Residential Properties (Pvt) Ltd., Braybrooke Fibre PLC.
Residential Towers (Pvt) Ltd. and Indra Hotels
)RUPHU$SSRLQWPHQWV and Resorts Kandy (Pvt) Ltd. Managing Director )RUPHU$SSRLQWPHQWV
&KLHI([HFXWLYH2ƬFHURI9DQLN%DQJODGHVK of Indra Traders (Pvt) Ltd., a Director of Indra Head of Finance and Global Market Operations
Securities, Assistant Vice President of Vanik Motor Spares (Pvt) Ltd. Non-Executive Director RI+6%&JURXS%DKUDLQRƬFHVRYHUDFDUHHU
Incorporation, Director of Hayleys MGT Knitting of Sampath Centre Limited and Siyapatha span of 20 years. Also served as a Board
PLC, Hayleys PLC and Nirmalapura Windpower Finance PLC. member of the Bahrain Asian Traders'
(Pvt) Ltd. Committee of Bahrain Chamber of Commerce.
24
Ms Aroshi Nanayakkara &XUUHQW$SSRLQWPHQWV Mr Deshal de Mel

Independent, Non-Executive Director Independent, Non-Executive Director of Independent, Non-Executive Director
Sampath Bank PLC, Director of Hela Apparel
4XDOLƪFDWLRQV6NLOOV ([SHULHQFH Holdings (Pvt) Ltd., Hela Clothing (Pvt) Ltd., 4XDOLƪFDWLRQV6NLOOV ([SHULHQFH
Holds a BSc. in Management from the Foundation Garments (Pvt) Ltd., FDN Sourcing An eminent Economist, earned a degree in
Massachusetts Institute of Technology (Pvt) Ltd. as well as the Vice Chair of the Sri Philosophy, Political Science and Economics
0,786$D06FLQ0DQDJHPHQWIURPWKH Lanka Institute of Directors, the Chair of the IURPWKH8QLYHUVLW\RI2[IRUGDQG0DVWHUV
/RQGRQ6FKRRORI(FRQRPLFV/6(8.DQG Women Directors’ Forum and Vice President of in International Political Economy from the
KROGVWKH$&0$DQG&*0$TXDOLƪFDWLRQV the Rotary Club of Colombo. London School of Economics. His publications
from the Chartered Institute of Management can be found in a number of books and
Dr Sanjiva Weerawarana
$FFRXQWDQWV&,0$8. MRXUQDOVDQGDOVRUHFRJQLVHGE\WKH:RUOG
Independent, Non-Executive Director Economic Forum as a ‘Young Global Leader’
CEO of the Global Consulting Company and in 2019.
DG\QDPLFOHDGHULQWKHƪHOGVRIVWUDWHJLF 4XDOLƪFDWLRQV6NLOOV ([SHULHQFH
planning, HR and risk management, having Holds a Ph.D. in Computer Science and $SSRLQWHGWRWKH%RDUG
gathered extensive experience throughout her currently a Director of Lanka Software Previously served on the Board of Directors of
20 plus years in prominent companies. Foundation and Sri Lanka Institute of Sampath Bank PLC as a Non-Executive Director
Nanotechnology. DQGUHMRLQHGRQWK6HSWHPEHU
Commenced her career as a corporate 2019 as an Independent, Non-Executive
EDQNHUƪUVWDW$%1$052%DQN19DQGODWHU Founder of WSO2 and served as CEO and Director.
at Deutsche Bank AG Sri Lanka. Moved from Chairman respectively.
EDQNLQJLQWR+5DQGMRLQHG(DJOH,QVXUDQFH 0HPEHUVKLSLQ%RDUG6XE&RPPLWWHHV
and handled human resource development :RUNHGLQ,%07-:DWVRQ5HVHDUFK&HQWHUDQG
Chairman of Board Marketing Committee.
DQGVWUDWHJLFSODQQLQJIRUWKHFRPSDQ\-RLQHG focused on innovations in middle-ware and
Member of Board Audit Committee, Board
the Delmege Group as Group Director Human emerging industry standards. At IBM, was one
Integrated Risk Management Committee,
Resource Development while also serving on of the founders of the Web services platform,
Board Strategic Planning Committee, Board
the Board of Delmege Interior Decor (Pvt) Ltd. and he co-authored many Web services
HR & Remuneration Committee, Board
&KLHI5LVN2ƬFHURI%UDQGL[*URXSRYHUORRNLQJ VSHFLƪFDWLRQVLQFOXGLQJ:6'/%3(/:6:6
Nomination Committee and Board Related
the functions of internal audit and compliance Addressing, WS-RF, and WS-Eventing.
Party Transactions Review Committee.
DQGƪQDOO\DVWKH&(2RI%UDQGL[+DQJHUV3YW
Ltd. In 2003, founded the Lanka Software
&XUUHQW$SSRLQWPHQWV
)RXQGDWLRQ/6)DQRQSURƪWRUJDQLVDWLRQ
$SSRLQWHGWRWKH%RDUG IRUPHGZLWKWKHREMHFWLYHRISURPRWLQJRSHQ Independent, Non-Executive Director of
source development. Sampath Bank PLC and Research Director at
30th May 2019 as a Non-Independent,
Verite Research.
Non-Executive Director and became an
,QGHSHQGHQW'LUHFWRUZLWKHƩHFWIURPWK $SSRLQWHGWRWKH%RDUG
)RUPHU$SSRLQWPHQWV
-XQH VW-XQHDVDQ,QGHSHQGHQW1RQ
Executive Director. Commission Member of the Securities &
0HPEHUVKLSLQ%RDUG6XE&RPPLWWHHV Exchange Commission (2018 - 2019). Director
0HPEHUVKLSLQ%RDUG6XE&RPPLWWHHV of Sri Lankan Airlines (2019), Sampath Bank’s
Member of Board Human Resources and
Director (2012 - 2017), Research Economist of
Remuneration Committee, Board Strategic Chairman of Board IT Committee w.e.f.
Institute of Policy Studies of Sri Lanka (2004 -
Planning Committee, Board Marketing 1st February 2020. Member of Board Strategic
2010), Economic Advisor - Ministry of Finance
Committee, Board Credit Committee, Board Planning Committee, Board Audit Committee
(2017 - 2019), Chairman and Board Member
Shareholder Relations Committee and Board and Board Integrated Risk Management
of SC Securities (Private) Ltd., Board Member
Treasury Committee. Committee.
of Centre for Poverty Analysis (CEPA) (2014
&XUUHQW$SSRLQWPHQWV - 2019), Senior Economist of Hayleys Group
Member of Board IT Committee ZLWKHƩHFWIURP
(2010 - 2017).
1st February 2020. Independent, Non-Executive Director of
Sampath Bank PLC, Lanka Software Foundation
and Sri Lanka Institute of Nanotechnology.
25
CORPORATE
MANAGEMENT
Managing Director & Senior Deputy General Managers
Left to Right
Mr Nanda Fernando - Managing Director

Mr Tharaka Ranwala - Senior Deputy General Manager - Consumer Banking
Mrs Shashi Kandambi Jassim - Senior Deputy General Manager - Corporate Banking
Mr Ajantha de Vas Gunasekara - Group Chief Financial Officer
Mr Ajith Salgado - Group Chief Information Officer
26
Deputy General Managers
Left to Right
Mr Aruna Jayasekera - Group Chief Human Resource Officer

Mr Manoj Akmeemana - Deputy General Manager - Corporate Credit
Mrs Ayodhya Iddawela Perera - Deputy General Manager - International Trade & Credit Control
Mr Thusitha Nakandala - Deputy General Manager - Branch Banking
Mr Sanath Abhayaratne - Deputy General Manager - Deposit Mobilisation
Mr Amal Kirihene - Deputy General Manager - Small & Medium Enterprise Banking
27
CORPORATE
MANAGEMENT
Assistant General Managers
Left to Right
Mr Rajendra Ranasinghe - Assistant General Manager - Inward Remittance/KPO/BNO

Mr Sanjaya Gunawardena - Assistant General Manager - Strategic Planning & Research
Mr Maheel Kuragama - Assistant General Manager - Internal Audit
Mr Prasantha De Silva - Assistant General Manager - Treasury
Mr Sisira Dabare - Group Chief Compliance Officer
Mrs Achala Wickremaratne - Group Chief Risk Officer
Mr Deepal De Silva - Assistant General Manager - Branch Banking
28
Assistant General Managers
Left to Right
Ms Dulsiri Jayasinghe - Assistant General Manager - FCBU/Corporate Finance

Mr Ananda Wijitha - Assistant General Manager - Chief Information Security Officer
Mr Pasan Manukith - Assistant General Manager - Information Technology
Mr Lasantha Senaratne - Company Secretary
Mr Senaka Hewavitharana - Chief Legal Officer
Mr Shiran Kossinna - Assistant General Manager - Recoveries
Mr Kusal De Silva - Assistant General Manager - Operations & Card Centre
29
CHIEF
MANAGERS
Mr Dushyantha Dassanayaka Mr Priam Kasturiratna Mr Chatura Rudesh Mr Nalaka Gunawardena

Chief Manager – Electronic Chief Manager – Strategic Head of Trade Services & Chief Manager – Systems Audit
Delivery Channels Planning International Operations
Mr Prasanna Mullegama Mr Janaka Jayasuriya Mrs Kumari Jayasuriya Mr Halin Hettigoda

Chief Manager – Branch Banking Chief Manager – Corporate Credit Chief Manager – Branch Banking Head of Deposit Mobilisation
Mrs Aloka Ekanayake Mr Sumie Mithrapala Mrs Champika Nanayakkara Mr Kasun Fernando
Chief Manager – Investor Chief Manager – Branch Banking Chief Manager – FCBU Chief Manager – Branch Banking
Relations
Mr Udara Suraweera Mr Lakmal Munasinghe Mr Kasun Ratnayake Mr Thushantha

Chief Manager – Operations & Chief Manager – Credit Chief Manager – Risk Sumithraarachchi
Business Process Re-engineering Administration Branches Management Chief Manager – Systems &
Procedures
30
Mr Janaka Karunaratne Mr Keshan Dabare Mr Prabodha Cooray Mrs Manoji Hettigoda

Chief Manager – Branch Banking Chief Manager – Branch Banking Head of Small & Medium Chief Manager – Small &
Enterprise Banking Medium Enterprise Banking
Mr Manjula Abeysundera Mr Asantha Punchihewa Mr Rohana Aluthgedara Mr Darshin Pathinayake

Head of Administration Chief Manager – Branch Banking Chief Manager – Digital Banking Chief Manager – Card Centre
Mr Pujitha Rajapaksa Mr Namal Gunawardena Mr Thushara Jayatunga Mrs Chryshanthi Lokuhetty

Chief Manager – Marketing Chief Manager – Corporate Credit Chief Manager – IT Electronic Chief Manager – Human
Data Processing Resources
Mr Asanka Liyanage Mrs Sachithri Fernando Mrs Gayani Jinadasa

Chief Manager – Finance Chief Manager – Planning Chief Manager – Finance
31
SENIOR
MANAGERS
Mr Prasada Gooneratne Mr Chinthake De Silva Mr Madhupriya Dissanayake Mr Bharana Jayawardena

Senior Manager – Database Senior Manager – Small & Senior Manager – Credit Control Senior Regional Manager
Administration Medium Enterprise Banking
Mr Sudath Illeperuma Mr Amila Thewarapperuma Mr Manjula Seneviratne Mr Priyanka De Silva

Senior Manager – Credit Control Head of Sales Senior Manager – Bancassurance Senior Manager – Corporate
(Region 10) Credit
Mrs Piyami Cooray Mr Chaminda Jayasinghe Mrs Muditha Liyanapathirana Mr Anura Jayakody
Senior Manager – Corporate Head of Data Governance Unit Senior Regional Manager Senior Manager – Small &
Credit Medium Enterprise Banking
32
Mr Vipula Kuruppuarachchi Mr Kithsiri Dodamgoda Mr Janaka Mohotty Mr N Jeyaseelan

Senior Regional Manager Senior Regional Manager Senior Regional Manager Senior Manager – Small &
Medium Enterprise Banking
Ms Subhashini Premachandra Mr Sudarshana Jayasekera Mr Janaka Jayawickrema Mr M H U Dhananjaya

Senior Manager – Treasury Senior Manager – Compliance Senior Manager – Network Senior Manager – Corporate
Investments Service Centre Credit
Mr Aruna Jinadasa Mr Mahinda Amarasinghe Mr Crishantha Chaminda Mr Nalin Tillekeratne

Senior Manager – Credit Control Senior Manager – Credit Senior Manager – Small & Senior Manager – Central
(Region 05) Administration Branches Medium Enterprise Banking Processing Unit
33
SENIOR
MANAGERS
Mrs Sajani Abeysekera Mr Salinda Jayawardena Mr Anton David Mr Anusha Vidanapathirana

Senior Manager – Corporate Senior Regional Manager Senior Regional Manager Senior Manager – Information
Finance Technology
Mr Sampath Kulatillake Mr Chundika Ariyawansa Mr Shamal Seneviratne Mr Nuwan Wickramanayake

Senior Regional Manager Senior Manager – Branch Senior Manager – Lending Senior Manager – Digital Banking
Support Unit Products
Ms Anjali Goonetilake Mr Suneth Hathurusinghe

Head of Customer Care Centre Senior Manager – Kiribathgoda
Super Branch
34
CHARTING OUR COURSE

WITH PRUDENCE
MANAGING OUR BUSINESS
Chairman’s Message | 36
Managing Director’s Review | 40
Our Value Creating Business Model | 44
Strategic Sustainability Framework | 46
Stakeholder Engagement | 50
CHAIRMAN’S GRI 102-14,23
MESSAGE
I am confident that today the Sampath

Bank is well prepared to confront the
challenges and take advantage of the
opportunities to build scale and grow our
core business. I emphasise that we are
driven by our desire to enhance the value
we create for our stakeholders.
PROF MALIK RANASINGHE

Chairman
Dividend Yield Total Assets
7.24 % Rs Bn
1,000
800
2018 600
6.91%
400
33bps
200
659
795
914
962
0
2016 2017 2018 2019
Dear Stakeholders
I would like to commence my message by recording our sincere
appreciation to my predecessor Mr Channa Palansuriya, who served
as the Chairman of the Board for the past three years. It was under
Mr Palansuriya's leadership that Sampath Bank achieved significant
milestones in our recent history. On behalf of the Bank and its Board of
Directors, I wish to convey our sincere gratitude for his stewardship in
steering the Bank to where it is today.
The year 2019 was a tumultuous year for our country as our economy
weakened considerably due to the chaos caused by the Easter Sunday
attacks as well as the political uncertainty surrounding the Presidential
election in November 2019. It is not surprising that the GDP growth is
expected to register at a mere 2.7% in 2019. In this volatile operating
environment, the banking and broader financial services industry
36
came under pressure as earning potential Becoming Digital to the Core Profit before Tax & Profit after Tax
declined on the back of poor advances growth, One area where we sought to improve Rs Bn
slower retail volumes and low interest rates our competitive edge was through digital
UHGXFLQJWKHQHWLQWHUHVWPDUJLQVƶHEXUGHQ 20
OHDGHUVKLSƶHNH\GULYHULQWKLVUHJDUG
RIKLJKHU13/VSURYHGWREHDPDMRUVWUHVV continues to be our digital strategy - the
IDFWRUWKDWQHJDWLYHO\DƩHFWHGWKHFRQƪGHQFH 15
ambitious programme that we embarked upon
DVZHOODVWKHSURƪWDELOLW\RIWKHVHFWRULQ a few years ago to position Sampath Bank
10
QRWMXVWDVDGLJLWDOO\HQDEOHGEDQNEXWDVWKH
It is remarkable that even in this backdrop,
EHVWƪQDQFLDOWHFKQRORJ\VROXWLRQVSURYLGHU
6DPSDWK%DQNUHFRUGHGD3URƪWEHIRUH7D[ 5
in the country. Accelerating our ongoing
3%7RI5V%QDQGD3URƪWDIWHU7D[
16.6
12.6
12.1
18.3
12.1
15.5
11.2
investments in technology, we achieved some
9.1
(PAT) of Rs 11.2 Bn in 2019. Even though both 0
NH\PLOHVWRQHVLQƶHODXQFKRI:H3D\ 2016 2017 2018 2019
PBT and PAT declined by 15.5% and 8.2%
Mobile Wallet is an example that demonstrates
UHVSHFWLYHO\FRPSDUHGWRWKHƪJXUHVUHSRUWHG Profit before Tax
our ability to leverage on digital innovation to
in 2018, I urge the stakeholders to look at these Profit after Tax
provide superior customer experience on par
ƪJXUHVLQWKHFRQWH[WRIWKHXQFHUWDLQW\ZH
with global standards.
faced in 2019.
ROE & ROA
Admittedly up to now, our technology-led
Similarly, Return on Average Assets (ROA) % %
innovations have focused predominantly on
before tax declined to 1.66% in 2019 from
serving the more tech-savvy customers. In 25 5
2.13% in 2018, while Return on Average
2019 we broadened our outlook and took
Equity (ROE) after tax dropped from 16.02% 20 4
VRPHGHƪQLWLYHDFWLRQWRGHYHORSZKDWZH
LQWRLQƶH(DUQLQJVSHU
like to call "hybrid digital solutions" targeting 15 3
Share (EPS) for 2019 was at Rs 32.84, 23.9%
customer segments traditionally seen as less 2.14 2.29
lower than the Rs 43.18 recorded in 2018. 2.13
GLJLWDOVDYY\ƶLVDSSURDFKIRUPVSDUWRIRXU 10 2
ƶHORZHUHG52(DQG(36ZDVDOVRGXHWRWKH 1.66
managed evolution programme which aims
increase in the Bank's equity base from the very 5 1
23.47
to encourage more of our customers to go

23.35
16.02
11.78
VXFFHVVIXO5LJKWV,VVXHLQ-XQH
digital, attract new customers through digital 0 0
innovations and make digital banking the norm 2016 2017 2018 2019
ƶHVHUHVXOWVYDOLGDWHRXUGHFLVLRQWR
for all Sri Lankans.
consolidate our business in 2019 to build a ROE (after income tax)
ROA (before income tax) (RHS)
PRUHUHVLOLHQW%DQNFDSDEOHRIIXOƪOOLQJLWV
Reinforcing our commitment to become
mandate to support customers, shareholders
digital to the core, we increased our reliance
and other stakeholders regardless of external
on robotics and automation to drive the the Board composition to ensure we have the
challenges which are sometimes beyond our
ongoing transformation of our internal process right balance of skills and experience to guide
control.
DUFKLWHFWXUH:HDOVRWRRNWKHƪUVWVWHSVWR the Bank's mandate and deliver sustainable
LQWURGXFHWKHXVHRIDUWLƪFLDOLQWHOOLJHQFH returns to our shareholders. A skills matrix was
Let me present an overview of the work done
and data analytics to boost our analytical developed to determine the ideal requirements
in 2019 as part of our consolidation phase.
capabilities, which will help us, as our operating for the next three years.
We analysed in great detail how the changing
environment becomes increasingly complex
landscape, especially in technology, would
and unpredictable in the near future. Based on that analysis, Ms Aroshi
impact our core business areas. We also
Nanayakkara, an HR professional and
commissioned a study to understand how Governance and Risk 'U6DQMLYD:HHUDZDUDQDIRXQGHU&KDLUPDQ
the Sampath brand ranks against our key
ƶH6DPSDWK%DQN%RDUGRI'LUHFWRUVVWDQG of WSO2 and a foremost IT professional
FRPSHWLWRUVƶHVHHƩRUWVKLJKOLJKWHGWKHEHVW
ƪUPLQLWVFRPPLWPHQWWRHQVXUHWKH%DQN
V were appointed to the Sampath Bank Board
ways to grow our core business especially in
operations are underpinned by a solid in 2019. Mr Deshal de Mel, an eminent
GLƬFXOWHFRQRPLFFOLPDWHVDQGVWUHQJWKHQ
governance framework at all times. In 2019 we (FRQRPLVWUHMRLQHGWKH%RDUGZLWKDGGHG
our competitive proposition across several
spent a considerable amount of time reviewing experience and knowledge, after his
dimensions.
37
CHAIRMAN’S
MESSAGE
Accelerating our ongoing investments in technology, we shareholders, only after exhausting all other
avenues available, to maintain the CARs within
DFKLHYHGVRPHNH\PLOHVWRQHVLQƶHODXQFKRI regulatory requirements.
WePay Mobile Wallet is an example that demonstrates our
ability to leverage on digital innovation to provide superior Focus, Going Forward
customer experience on par with global standards. Despite Sri Lankan economy performing poorly
in 2019, I am optimistic that the year 2020
would pave the way for better prospects for the
assignment in public service. With these new Total Capital (Tier I + Tier II) country in the years ahead.
DSSRLQWPHQWV,DPFRQƪGHQWWKDW\RXU%RDUG Rs Bn
of Directors is appropriately balanced and has ,DPFRQƪGHQWWKDWWRGD\WKH6DPSDWK%DQNLV
150 well prepared to confront the challenges and
the skills required to ensure that the Bank is
well governed, and that the interests of our take advantage of the opportunities to build
120
shareholders, other stakeholders will be well scale and grow our core business. I emphasise
served in the years to come. 90 that we are driven by our desire to enhance
the value we create for our stakeholders.
60 *RLQJIRUZDUGZHZLOOFRQWLQXHWRƪQHWXQH
In 2019, our cyber security risk and governance
programmes were intensively scrutinised, as our strategy to deliver exceptional results in
30
103.2
123.4
line with our targets, diversify our lending

61.3
80.9
we believed these areas required closer focus

ZLWKJOREDOƪQDQFLDOFULPHVRQWKHULVHDQG 0 approaches to enhance the robustness of
2016 2017 2018 2019
cybercriminals and hackers becoming more our asset base and focus on improving the
sophisticated. Even though Sampath Bank has resilience of our capital structure, all of which
QRWH[SHULHQFHGDQ\VLJQLƪFDQWORVVWRGDWHZH will accelerate our medium-term growth
In 2019 we continued to focus on complying
believe preventive actions are vital. WUDMHFWRU\
with the Basel III Capital Standards introduced
E\WKH&%6/ZLWKHƩHFWIURPVW-XO\7R
ƶHDSSRLQWPHQWRIDGHGLFDWHG&KLHI ensure Sampath Bank maintains the required
,QIRUPDWLRQ6HFXULW\2ƬFHU&,62WRPRQLWRU FDSLWDOEXƩHUVD%DVHO,,,&RPSOLDQW'HEHQWXUH
and report directly to the Board on matters amounting to Rs 7 Bn was issued in February
relating to information security risk was a 2019 to augment the Bank's Tier II capital
PDLQDFWLRQ8QGHUWKHSXUYLHZRIWKH&,62 OHYHOVƶLVZDVWKHWKLUGVXFFHVVIXO%DVHO,,,
a new Information Security Committee was Compliant Debenture issued by Sampath
established to address operational risks %DQNZLWKLQSDVWWKUHH\HDUV,Q-XQH
relating to information security and cybercrime, we successfully raised Rs 12.1 Bn worth of
while an Incident Response Team was formed Tier I capital through a Rights Issue. We are
to assist in the prevention of information extremely grateful to our shareholders for the
security threats that may occur as part of the FRQƪGHQFHSODFHGLQWKH%DQNHYHQGXULQJWKH
day-to-day operations. Taking a long-term view, challenging economic climate that prevailed
we developed the Information Security Strategy in 2019.
WRKHOSGHƪQHRXUSULRULWLHVDQGUHGLUHFWRXU
resources for the next three years from 2020 :LWKWKHQHZGHƪQLWLRQIRU'RPHVWLF
6DPSDWK%DQNLVSURXGWREHKRQRXUHGDVWKH
:LQQHU
to 2022. Systemically Important Banks (D-SIBs) by RIWKH%DQNLQJ6HFWRU
DQGWKH
:LQQHURI([FHOOHQFHLQ
the CBSL, Sampath Bank was no longer a WKH&RUSRUDWH*RYHUQDQFHFDWHJRU\
DWWKH3UHVWLJLRXV
Regulatory Compliance
D-SIB. As a result, by end of 2019, Sampath 1DWLRQDO%XVLQHVV([FHOOHQFH$ZDUGVKHOGDW
ƶH%DQNLQJVHFWRUKDVEHHQVXEMHFWWR Bank had healthy Capital Adequacy Ratios Hilton Colombo - organised by the National Chamber of
increasing regulatory requirements as a result (CARs), well above the minimum regulatory &RPPHUFHRI6UL/DQND
RIRQJRLQJHƩRUWVE\WKHUHJXODWRUVWRLPSURYH UHTXLUHPHQWVƶH%RDUGRI'LUHFWRUVUHLWHUDWH
VWDELOLW\RIWKHFRXQWU\
VƪQDQFLDOV\VWHP:HDW its commitment to manage the CARs prudently
Sampath Bank have remained committed to as always, and will request Tier I Capital from
strictly comply with all applicable regulations.
38
Going forward, we will Shareholders' Fund Appreciations

FRQWLQXHWRƪQHWXQH I take this opportunity to place on record my
our strategy to deliver

Rs 105.0 Bn gratitude and sincere appreciation to Team
Sampath for their admirable commitment
exceptional results in line and dedication - thank you for staying true to
with our targets, diversify WKH6DPSDWK%DQNYLVLRQHYHQLQDGLƬFXOW
our lending approaches to environment. I would also like to thank my
2018 colleagues on the Board for their tremendous
enhance the robustness of Rs 84.4 Bn support and encouragement at all times.
our asset base and focus
on improving the resilience
of our capital structure,
24 % I also take this opportunity to thank the
regulators for supporting us throughout the
year, without which our achievements would
all of which will accelerate not have been possible.
our medium-term growth
trajectory. To our shareholders, customers and all
other stakeholders, thank you very much for
FRQWLQXLQJWRZDONRXUMRXUQH\ZLWKXV,WUXVW
Board Changes served on the Board as a Non-Executive
you will be by our side in the future, to help
ƶHFRPSRVLWLRQRIRXU%RDUGFKDQJHG Director (2012 - 2017) was reappointed on
the Sampath Bank to navigate the challenging
VLJQLƪFDQWO\LQ0U&KDQQD3DODQVXUL\D 26th September 2019 as an Independent,
road ahead.
who served as the Chairman for the past three Non-Executive Director. I welcome all three
years stepped down from his position with of them to the Sampath Bank Board and
HƩHFWIURPVW$SULOƶUHHQHZ%RDUG ORRNIRUZDUGWRVLJQLƪFDQWFRQWULEXWLRQVIURP
appointments were made in 2019. them for the development of our Bank.
Ms Aroshi Nanayakkara who was appointed as
Mr Deepal Sooriyaarachchi, who served as
a Non-Independent, Non-Executive Director
Non-Independent, Non-Executive Director PROF MALIK RANASINGHE
on 30th May 2019 became an Independent
for nine years, retired from the Board Chairman
'LUHFWRUZLWKHƩHFWIURPWK-XQH
RI'LUHFWRUVZLWKHƩHFWIURPWK$XJXVW
'U6DQMLYD:HHUDZDUDQDZDVDSSRLQWHGDVDQ
ƶLVZDVLQOLQHZLWKWKH%DQNLQJ Colombo, Sri Lanka
Independent, Non-Executive Director on 1st
Act Direction No. 11 of 2007 on Corporate 13th February 2020
-XQH0U'HVKDOGH0HOZKRSUHYLRXVO\
Governance for Licensed Commercial Banks,
which states that the period of service of a
Gross Dividend & Dividend Payout Ratio Director excluding the Executive Directors is
Rs Mn % limited to nine years or until the seventieth
birthday, whichever is earlier. While thanking
5,000 45
Mr Sooriyaarachchi for his outstanding
4,000 42 services during the past nine years, I wish him
40.2 the very best for his future endeavours.
3,000 39
38.0 37.6
2,000 36.8 36
1,000 33
3,362
4,598
4,565
4,482
0 30
2016 2017 2018 2019
Gross Dividend
Dividend Payout Ratio (RHS)
39
MANAGING GRI 102-10
DIRECTOR’S REVIEW
After a rapid expansion during the

past three years, we stepped back
from the aggressive growth path we
had been pursuing and declared
2019 to be a year of consolidation
where we would focus extensively on
seven key areas.
NANDA FERNANDO
Managing Director
Gross Income Gross Advances
Rs 118.9 Bn Rs 719.6 Bn
2018 2018
Rs 115.3 Bn Rs 670.3 Bn
3 % 7 %
As a nation we entered 2019 with a great deal of optimism, which

is why it was impossible to come to terms with the cataclysmic
impact of the Easter Sunday attacks that would once again thrust
our country into dark times. As the entire country reeled in shock,
the economy took a heavy toll in the months that followed the April
21st attacks with many key sectors such as tourism, leisure and
transport facing the brunt of the impact. Furthermore given the
heightened uncertainty surrounding the November 2019 election,
it is no surprise that Sri Lanka's growth forecasts were downgraded
with GDP projected to grow by a modest 2.7% in 2019.
40
Amidst this backdrop, the demand for credit default/non-payment. New AI-based predictive ve
too fell sharply. After a rapid expansion ne
analysis software was also installed to examine
during the past three years, we stepped back the repayment patterns of existing customerss
from the aggressive growth path we had and detect early warning signals.
been pursuing and declared 2019 to be a
year of consolidation where we would focus Alternative Markets
extensively on seven key areas: Challenged by the drop in credit demand
along with our own conservative approach
Credit Quality Management towards lending, we were compelled to look
Having made a conscious decision to scale elsewhere for potential opportunities, which
back on aggressive lending activities in 2019, OHGXVWRIRFXVRQGHYHORSLQJRƩVKRUHOHQGLQJ J
in light of the weak credit demand, we then DFWLYLWLHVWKURXJKRXU)&%8VHJPHQW:H
6DPSDWK%DQNUHFRJQLVHGDV6UL/DQNDţVŢ%HVW
turned our attention towards managing credit focused largely on direct lending to large local 5HWDLO%DQNţDQGŢ%HVW&RPPHUFLDO%DQNţIRUWKHWK
quality. Taking a holistic approach, we looked corporates looking to invest overseas, which FRQVHFXWLYH\HDUDWWKHSUHVWLJLRXV:RUOG)LQDQFH
%DQNLQJ$ZDUGVE\8.EDVHG:RUOG)LQDQFH
at strengthening credit quality management enabled Sampath Bank to expand its reach in
magazine.
from both the pre-credit and post-credit the Indian subcontinent and the wider Asian
perspectives. From the pre-credit angle, the key region as well as to penetrate a number of new
SULRULW\ZDVWRLPSURYHWKHƪUVWOLQHRIGHIHQFH territories in the African region. Taking a holistic
WRHQVXUHDGHTXDWHFXVWRPHUSURƪOLQJDQG
comprehensive credit evaluation is carried out. ,QWHVWLPRQ\WRRXUHƩRUWV,DPSOHDVHGWR
approach, we looked
ƶLVZDVFRXSOHGZLWKH[WHQVLYHWUDLQLQJIRU QRWHWKDWWKH)&%8
VRƩVKRUHOHQGLQJSRUWIROLR at strengthening credit
DOOIURQWOLQHDQGDGPLQLVWUDWLYHFUHGLWRƬFHUV registered year on year growth of 8.3% in 2019. quality management
to reinforce the importance of adhering to from both the pre-
the Bank's credit policy and other protocols Digital Excellence
to safeguard loan quality. At the same time, As you may be aware, for some years now
credit and post-credit
special emphasis was placed on strengthening we have been working on the fundamental perspectives.
our credit risk management programme, premise that digitisation is the key to delivering
which led to several policy-level changes being simple, fast and convenient banking to our
of customers opting for digital solutions, we
implemented to take cognisance of internal FXVWRPHUV6LQFHZHEHJDQWKLVGLJLWDOMRXUQH\
began setting up dedicated digital banking
business developments as well as external in 2015, we have invested heavily in expanding,
DUHDVDWVHOHFWHGEUDQFKHVƶDQNVWRWKHVH
changes arising from the immediate operating redesigning and strengthening our technology
HƩRUWVZHƪQGPRUHDQGPRUHFXVWRPHUV
environment. Meanwhile we moved ahead with foundation with the aim of completely
migrating to digital channels with over 94% of
plans to revise our risk rating models to support transforming Sampath Bank's front end and
our routine transactions now being performed
compliance with SLFRS 9 requirements. Taking back end operations.
digitally. Admittedly the awards and accolades
WKHƪUVWVWHSLQWKLVUHJDUGZHVRXJKWWKH
ZHFRQWLQXHWRUHFHLYHIXUWKHUDƬUP6DPSDWK
assistance of an international expert to carry Continuing to change the way customers bank
Bank's leadership in the digital banking space.
RXWWKHPRGHOYDOLGDWLRQVWXG\ƶHƪQGLQJV ZLWKXVDQGSXUVXHWKHLUƪQDQFLDOJRDOVZH
In 2019, Sampath Bank made history by
of the study which we received in the early launched the WePay mobile wallet in 2019. As
clinching an impressive eight awards at the
part of 2019 are now in the process of being the name itself suggests, the WePay mobile
LankaPay Technnovation Awards, including the
incorporated. wallet creates a seamless digital platform that
highly-coveted ‘Most Innovative Bank of the
allows users to make payments to hundreds
Year 2019’.
We also increased the involvement of our of registered merchants across the country
risk team in the post-credit monitoring through their smart phone. We also appointed
We have continued to leverage on digital
mechanisms, by granting them the authority over 170 "MY BANK agents" and granted the
WHFKQRORJ\WRVWUHDPOLQHLQWHUQDOZRUNƫRZ
to initiate watch listing of customers. A series authority to perform routine banking services
systems and simplify our administrative
of investments were also made to beef up the with the help of a POS terminal which is
processes with the help of automation and
Recoveries Department, among them a new digitally connected to the Sampath Bank
DUWLƪFLDOLQWHOOLJHQFH6RPHRIWKHNH\LQLWLDWLYHV
delinquency monitoring system to ensure core banking system. Meanwhile, as part of
implemented in 2019 included the digitisation
proactive follow up right from initial stage of DQDJJUHVVLYHHƩRUWWRLQFUHDVHWKHQXPEHU
41
MANAGING
DIRECTOR’S REVIEW
The awards and accolades we continue to receive, NII & NIM

Rs Bn %
further affirm Sampath Bank's leadership in the digital
banking space. In 2019, Sampath Bank made history by 50 6
4.46
clinching an impressive eight awards at the LankaPay 40 4.41 5
Technnovation Awards, including the highly-coveted ‘Most 3.87 3.91
30 4
Innovative Bank of the Year 2019’.
20 3
of the customer on-boarding procedure, the FD Regrettably however, our non-performing 10 2
22.8
28.4
38.1
41.6
issuance process and the loan disbursement loan ratio increased from 3.69% recorded in
0 1
at the Central Credit Processing Unit (CCPU). 2018 to 6.37%, as customers who were thrown 2016 2017 2018 2019
These efforts along with the numerous into crisis following the Easter Sunday attacks
began defaulting or delaying repayments. Net Interest Income (NII)
initiatives implemented over the years have
Net Interest Margin (NIM) (RHS)
created more dynamic and efficient ways of A similar scenario was observed across the
working which has enabled the Bank to benefit industry causing the Banking industry NPLs to
from significant cost savings. In fact I am proud rise to 4.7% as at 31st December 2019 from Total Tier I Capital Ratio
to announce that Sampath Bank's cost-to- 3.4% at the end of 2018.
income ratio has shown healthier results in 14.22 %
2019 and 2018 by registering 36.9% and 35.9% The heavy tax burden too continued to add to
respectively, compared to 42.3% in 2017. our stress. Sampath Bank's total tax expenses
for 2019 amounted to Rs 11.1 Bn, of which
Stable Results about 20% or Rs 2.2 Bn was attributed to the
I am pleased to report that notwithstanding Debt Repayment Levy (DRL) introduced by the
2018
the challenging environment, Sampath Bank Government in the last quarter of 2018. Seeing
12.08%
registered stable results for the year ended the obvious impact on our business, I welcome
31st December 2019. The Bank's gross income
increased from Rs 115.3 Bn reported in 2018
to Rs 118.9 Bn in 2019, a growth of 3.1% driven
the proposed decision by the Government to
abolish the DRL with effect from January 2020. 214 bps
mainly by fund-based income, net gains from A culmination of these factors meant
trading and fee & commission income. The Sampath Bank's Profit before Tax (PBT) for
Bank's Net Interest Margin too improved from 2019 dropped to Rs 15.5 Bn from Rs 18.3 Bn
4.41% in 2018 to 4.46% in 2019. reported in the previous year, a decline of Capital Planning
15.5%. Profit after Tax (PAT) too declined by We continued to remain proactive in our capital
8.2% from Rs 12.1 Bn to Rs 11.2 Bn. raising activities underscoring our efforts to
strengthen the Bank's capital position in line
with the Basel III Capital Standards, which were
introduced by the CBSL with effect from 1st July
2017. Accordingly, we raised Rs 7 Bn by way of a
Basel III Compliant Debenture in February 2019,
enabling the Bank to boost its Tier II capital
position. In addition, we also added
Rs 12.1 Bn to our Tier I capital by way of a Rights
Issue in June 2019. I am indeed pleased to note
that, thanks to these efforts, Sampath Bank’s
Common Equity Tier I, Total Tier I and Total
Capital Adequacy ratios stood at 14.22%, 14.22%
Recognition of 25 years of service at Sampath Bank on the first working day of 2020. and 18.12% respectively as at 31st December
2019, well above the regulatory minimum and
also notably ahead of industry peers.
42
Further reinforcing our commitment to comply decided to take a deep dive into our business VWURQJHVW%XVLQHVVLQLWLDWLYHVPRVWHƬFLHQW
with the Basel III guidelines, our Capital and critically re-evaluate Sampath Bank's Technology and the best in-class team that will
Management Process was revamped and a readiness to face the next decade and beyond. put Sampath Bank on track to lead the way to a
three-year (2020 - 2022) Capital Management ƶHHQWLUHPRQWKRI6HSWHPEHUZDVGHGLFDWHG new era of banking in Sri Lanka.
Plan was rolled out at the end of 2019. With towards this exercise with a series of intense
this Capital Management Plan we expect to brain storming sessions and several focused Appreciations
avoid the need for any ad-hoc capital raising group sessions held with the participation To conclude, I would like to thank the millions
activities and to implement a more disciplined of corporate management and members of Sampath Bank customers across Sri Lanka
approach to support the needs of the business of the senior management teams. I too was for placing their trust in us. You remain the
over time and also take into account any personally involved in many of these sessions purpose we are driven to evolve and grow.
impeding regulatory requirements. And in which gave me a broader perspective of the Accordingly, we remain committed to our
order to ensure capital management activities areas we should focus on going forward. After "Purpose" as to "why" we exist and that is the
are carried out more holistically in the future, much introspection and active debate we reason why, we enable people manage their
the new Capital Management Plan was developed, the "Triple Transformation 2020" money.
integrated with the Internal Capital Adequacy (TT20) agenda, which marks the beginning
Assessment Process (ICAAP) as well as the RIDORQJWHUPWUDQVIRUPDWLYHMRXUQH\WR I take this opportunity to convey my sincere
Bank’s Strategic Plan. reform three core areas; Business, Technology appreciation to our Corporate Management
DQG3HRSOHƶH77DJHQGDFRPSULVHV as well as all members of Team Sampath who
Sustainability of 24 strategic levers - 13 Business-based, 6 have proven beyond doubt that they are our
For the past decade or so, our focus on Technology-based and 5 People-based levers greatest asset. A special word of thanks also
sustainability has always gone hand in hand that aim to create a solid foundation for the to Chairman and my colleagues on the Board
with our business. Staying true to our core Bank to move forward over the next three to for their steadfast support, commitment and
competencies, we continue to focus on ƪYH\HDUV conscientious stewardship of the Bank.
ƪQDQFLDOO\HPSRZHULQJFRPPXQLWLHVE\
providing them with the tools to improve Looking Ahead I would like to express my gratitude to the
WKHLUƪQDQFLDONQRZOHGJHDQGVSHDUKHDG Looking ahead, I believe the next twelve RƬFLDOVDWWKH&HQWUDO%DQNRI6UL/DQND
WKHLUMRXUQH\WRZDUGVJDLQLQJDFFHVVWR months will be a crucial period for the Sri Securities and Exchange Commission,
DƩRUGDEOHƪQDQFLDOVHUYLFHV%\WDNLQJWKLV Lankan economy. After a very challenging year, Colombo Stock Exchange, and the Ministry
strategic approach towards sustainability, it is important that the economy gradually of Finance for their corporation and support
we are looking to position Sampath Bank settles into a steady growth pace over the throughout the year.
DVDQLQFOXVLYHƪQDQFLDOLQVWLWXWLRQZLWKWKH coming months in order to set the tone for the
capacity to contribute to the socioeconomic QH[WIHZ\HDUVƶHUHFRYHU\RINH\VHFWRUVVXFK $QGƪQDOO\WRRXUOR\DOVKDUHKROGHUVDQGRWKHU
development of our country. We reinforce this as tourism and leisure will be vital in order to stakeholders - while thanking you for being
SUHPLVHWKURXJKRXUƫDJVKLS6DPSDWK6DYL\D increase economic activity and boost investor SDUWRIRXUMRXUQH\VRIDU,DVVXUH\RXWKDW
Entrepreneurship Development programme FRQƪGHQFH0RUHRYHULQWHUHVWUDWHVZLOOQHHG 6DPSDWK%DQNDLPVQRWMXVWWRPHHWEXWUDWKHU
series. In 2019 we broadened the scope of to remain on a downward trend, if a revival in exceed your expectations in the years to come.
"Sampath Saviya” programme with the intention private sector credit demand is to materialise.
RIUHDFKLQJRXWWRVSHFLƪFWDUJHWJURXSVVXFK
as MSMEs, youth entrepreneurs, war widows While it is obvious that we are not in a position
DQGSHQVLRQHUVƶHIHHGEDFNZHUHFHLYHGIURP to control the impacts arising out of the NANDA FERNANDO
the participants at these programmes is very external environment, there is a lot we can do Managing Director
encouraging which proves we are on track to to become more resilient to these forces, which
IXOƪOOLQJRXUVXVWDLQDELOLW\PDQGDWH is why I feel our decision to consolidate was Colombo, Sri Lanka
a timely move that provided the opportunity 13th February 2020
Gearing up for the Future to strengthen our own defences. And as we
With competitive and regulatory pressures roll out our TT20 programme over the next
on the rise and numerous other complexities few months, we will remain heavily focused
DƩHFWLQJRXURSHUDWLQJHQYLURQPHQWZH on shaping up the three core areas (Business,
Technology and People) to ensure we have the
43
OUR VALUE CREATING
BUSINESS MODEL
Inputs Value Creation Process
Internal Environment
Financial Capital y Market Capitalisation: Rs 61.9 Bn
y Equity Capital: Rs 105.0 Bn
Financial resources obtained from y Deposit Mobilisation
external sources and generated through y Debenture Issue: Rs 7.0 Bn
our operations, which together support Promote Financial
our business operations Inclusion
3DJH
Manufactured Capital y Asset Base: Rs 962.4 Bn Digital

Leadership
y 229 Branches Vision to be
Physical and digital infrastructure that y 423 ATMs ŢƶH*URZLQJ)RUFH
in Sri Lankan
enable our day-to-day operations y 429 Cash Deposit Machines Support National Financial Services’
y Digital Presence Development
3DJH
y Brand Equity Sustainable

Intellectual Capital Growth
y Continued Investment in
ƶHIXQGDPHQWDOFDSDELOLWLHVWKDWJLYH Business Process Re-engineering
Sampath Bank a clear competitive y Technology and Innovation
advantage
3DJH
Business Lines
y Developing Employee Capabilities
Human Capital Corporate Banking (Page 104)
y Enhancing Employee Productivity
Consumer Banking (Page 100)
y Strengthening Customer SME Banking (Page 107)
ƶHVNLOOVH[SHULHQFHRIRXUHPSOR\HHV Orientation Global Banking (Page 108)
and their ability to understand, develop y Building Employee Relations
and implement our strategy Network/Channels
y Increasing Employee
3DJH Engagement 229 Branches
Managing
Pillars of Value 423 ATMs
Creation 429 Cash Deposit Machines
Social and Relationship Capital y Engaging with Customers
Digital Channels
y Investing in Community 170 MY BANK Agents
ƶHUHODWLRQVKLSVZHGHYHORSZLWKRXU Development Corresponding Banks and
VWDNHKROGHUVIRUPXWXDOEHQHƪW y (ƩHFWLYH&RPPXQLFDWLRQ Exchange Companies
y Socially Responsive CSR Model Supporting Arm
3DJH
Operational Support
%DFN2ƬFH'HSDUWPHQWV
Customer Care Centre
Natural Capital y 6R Practices
y Responsible Lending
Making a positive contribution to the y Green Products and Services
environment in return for the natural y Environmental CSR Opportunities/Challenges
resources utilised in the course of our
operations and business activities
3DJH External Environment
44
GRI 102-7
Output for Capitals Value We Create

For Our Bank
Financial Capital y Higher Business Volumes y Increased Customer
y Increase in Captive Market Satisfaction
• PAT: Rs 11.2 Bn
Share y Enhanced Brand Equity
• ROE: 11.78%
y Lower Cost-to-income y Greater Employee
• EPS: Rs 32.84 Ratio Satisfaction
y Strong Competitive y Reputation as an Employer
Positioning of Choice
y Strong Customer Loyalty y Long Term Business
Partnerships
Manufactured Capital
For Our Investors and Shareholders
• New ATMs: 04 y Net Asset Value per Share: Rs 275.27
• New Cash Deposit Machines: 64 y Gross Dividend: Rs 4.5 Bn
y Dividend per Share: Rs 11.75

y Dividend Yield: 7.24%
y Interest Paid on Debentures: Rs 4.5 Bn
Intellectual Capital
For Our People
y Comprehensive Training Programmes
• Brand Value: Rs 25,847 Mn
y Recognition Schemes
• Brand Rating: AA+
y 0HGLFDO%HQHƪWV
y Work-life Balance Initiatives
For Our Customers

y $ƩRUGDEOHDQG&RQYHQLHQW%DQNLQJ
Human Capital
y Improved Accessibility and Connectivity
Ū 3URƪWSHU(PSOR\HH5V0Q
• Employee Retention: 98%
For Our Local Communities

y Internship Opportunities Created: 1,351
y %HQHƪFLDULHVIURP&RPPXQLW\3URMHFWV
Social and Relationship Capital
• New Products Launched: 05

• 1,134 Persons Trained under 'Sampath Saviya' For Our Environment
Entrepreneurship Development Programme y Over 94% Transactions Perform Digitally
• 170 MY BANK Agents y (OHFWULFLW\6DYLQJ+HDG2ƬFHN:K
y 5HGXFWLRQRI:DWHU8VDJH+HDG2ƬFHP3
y Published Integrated Annual Report 2019 as a Carbon
Neutral Product
Natural Capital
For the Government
• Solar Power Generation through Branch y Taxes Paid: Rs 19.0 Bn
Network: 181,936 kWh
Ū )LQDQFHRQ5HQHZDEOH(QHUJ\3URMHFWV
Rs 2.6 Bn
• Carbon Footprint of the Bank: 11,057 tCO2e
45
STRATEGIC SUSTAINABILITY
FRAMEWORK
GRI 102-31,32
We believe the key to achieving our y Encourage and support customers
YLVLRQWREHƶH*URZLQJ)RUFHLQ6UL to improve their performance in
Lankan Financial Services", is to grow a way that contributes to their
VXVWDLQDEO\IRUWKHEHQHƪWRIDOORXU business success and to society
VWDNHKROGHUVƶLVPHDQVHYDOXDWLQJ and the environment
our business holistically to take
y Terminate relationships with
into account sustainability risks and
clients that do not meet the
opportunities and integrate them into
requirements outlined in our
our business strategy and as part of
sustainability policies and/or
our daily operations through the triple
international or national legislation
bottom line approach. In doing so, our
and regulations, and that are
DLPLVWRHQVXUHZHUHPDLQSURƪWDEOH
unwilling to change the undesired
while continuing to generate a positive
practices within an agreed time
outcome that enhance Sri Lanka's
frame
social and environmental well-being.
y $YRLGOHQGLQJWRVSHFLƪFDFWLYLWLHV
In this regard, our Strategic DQGLQGXVWULHVGHƪQHGE\RXU
Sustainability Framework, takes a 360 Environmental & Social Risk
degree view of our business and seeks Management criteria
to address the direct impacts we create
y Engage with stakeholders as the
because of our own operations, as
basis for continuous improvement
well as the indirect impacts caused by
and the promotion of knowledge
our customers and service providers.
sharing
Accordingly, in our day-to-day activities,
we have committed to: y %XLOGVWDƩFDSDFLW\RQ
sustainability related matters
y Protect and respect the
SUSTAINABLE
environment, human rights and
y Communicate transparently with DEVELOPMENT
stakeholders about our vision and GOALS
labour standards
performance
y Avoid causing or contributing to
adverse social and environmental Meanwhile in order to reach a higher
impacts level of sustainability, we have aligned
RXUHƩRUWVWRJOREDOVWDQGDUGVVXFKDV
y Comply with all national laws and
the Sustainable Development Goals
regulations
(SDGs), a set of 17 goals framed under
y Integrate material sustainability WKH8QLWHG1DWLRQV$JHQGDIRU
criteria in our business decisions Sustainable Development.
and commercial activities
y Maintain products and services

that contribute to sustainable
ƶHPRVWVDOLHQWLQLWLDWLYHVWR
development of people, the showcase our commitment
environment and the economy towards achieving SDGs are
presented here.
46
GRI 413-1
2XU&RPPLWPHQW 2XU&RPPLWPHQW 2XU&RPPLWPHQW

Livelihood development ‘Wayamba Isuru’ organic farmers ‘Hope for a Life’ programme to
through 'Sampath Saviya' empowering programme. improve the standards of national
entrepreneurship development healthcare system.
programme. ‘Wewata-HHZD\DNţWDQN
0HGLFDOEHQHƪWVWRVHQLRUFLWL]HQV
restoration programme.
through 'Sanhinda Saver' account.

‘Pahe Shishyathwa’ – Grade 5 16% female representation in Ţ:HZDWD-HHZD\DNţWDQNUHVWRUDWLRQ
scholarship support programme. Corporate Management. programme to restore water
Internship programme for school 24% female representation in Senior related eco system.
leavers and undergraduates. Management (excluding corporate
management).
“Sampath Saviliya” - business loan
exclusively for women.

A leading contributor to the Internship programme: 1,351 school Continued investment on
country’s renewable energy sector leavers and undergraduates were digital platforms.
E\ƪQDQFLQJRQYDULRXVFOHDQ provided internship opportunities.
HQHUJ\SURMHFWV Investment on training: Rs 55.7 Mn.
Training hours per employee: 33.6.

ƶH%DQNLVFRPPLWWHGWRRƩHUHTXDO Provide structured housing loan 2ƩHUZLGHUDQJHRISURGXFWVDQG
opportunity for all employees and as solutions. services including advanced digital
such does not tolerate any form of Empower farming communities platforms that support customers to
unfair discrimination on the basis of through 'Wayamba Isuru', 'Wewata perform a range of banking needs at
race, gender or disability. -HHZD\DN
DQG
6DPSDWK6DYL\D
DƩRUGDEOHSULFH
ƶH%DQN
VUDWLRRIEDVLFVDODU\DWWKH programmes.
entry level for males and females is 1:1.

Invest in emission %LRGLYHUVLW\&RQVHUYDWLRQ3URMHFW Sampath Bank has zero tolerance
management and energy - Restore degraded forest patch of for bribery and corruption by any
PDQDJHPHQWSURMHFWV one hectare in Halgahawala, Opatha employee or Director.
in collaboration with Biodiversity Sri ƶH%DQNUHPDLQVYLJLODQWWRHQVXUH
Lanka. its products or services are not used
LQWKHIXUWKHUDQFHRIƪQDQFLDOFULPH
VXFKDVPRQH\ODXQGHULQJƪQDQFLQJ
of terrorism, fraud and corruption.
2XU&RPPLWPHQW
Strategic partnerships to address
the issues on climate change,
water, poverty and education.
47
STRATEGIC SUSTAINABILITY
FRAMEWORK
GRI 102-18,19,20,21,26,29,33/103-2
Sustainability Governance As part of this process, the Committee is y ƶH&RUSRUDWH6XVWDLQDELOLW\'HSDUWPHQW

A two-tier governance structure is in place required to review the policy framework (CSD) is tasked with planning and
IRUWKHHƩHFWLYH%DQNZLGHJRYHUQDQFHRI WRGHWHUPLQHLWVHƩHFWLYHQHVVLQDFKLHYLQJ LPSOHPHQWDWLRQRIVSHFLDOSURMHFWVWKDW
sustainability. WKH%DQN
VWULSOHERWWRPOLQHJRDOVƶH demonstrate the Bank’s commitment
Committee is further responsible for WRWKH6'*VƶHPDQDJHURIWKH
y ƶH&RUSRUDWH6XVWDLQDELOLW\&RPPLWWHH PRQLWRULQJVSHFLDOVXVWDLQDELOLW\SURMHFWV CSD reports directly to the Corporate
ƶHPDLQERG\SURYLGLQJRYHUVLJKWDQG undertaken by the Bank. In this regard, Sustainability Committee on the progress
exercising control over all sustainability the Committee uses a comprehensive RIVXVWDLQDELOLW\SURMHFWVXQGHUWDNHQE\
UHODWHGPDWWHUVƶH&RPPLWWHHXQGHU 3URMHFW0DQDJHPHQW3URFHVVDVVWDWHG the Bank.
the leadership of the Managing Director RQSDJHWRHQVXUHDOOVSHFLDOSURMHFWV
is primarily responsible for formulating undertaken by Sampath Bank are able
policies, standards and procedures WRJHQHUDWHDVWURQJLPSDFWIXOEHQHƪWLQ
to translate the Bank's sustainability response to critical sustainability matters
commitments at an operational level. that are a burden to the country.
Sustainability Governance Structure
Managing
Board of Directors
Director
Senior DGM - Consumer Group Chief Financial Group Chief Human Group Chief Compliance
DGM - Branch Banking
Banking 2ƬFHU 5HVRXUFH2ƬFHU 2ƬFHU
Corporate Sustainability
Department
48
3URMHFW0DQDJHPHQW3URFHVV303
GRI 413-1
,GHQWLILFDWLRQRI&RPPXQLW\*ULHYDQFHV,VVXHV&ULWLFDO&RQFHUQV%XUGHQ,VVXHV
Align to
sustainability
parameters
Re-align Re-align
Generate Facilitate
NO Sustainable Stakeholder NO
Benefits? Engagement?
YES
Decline Decline
3URMHFW(YDOXDWLRQE\WKH&RUSRUDWH6XVWDLQDELOLW\&RPPLWWHH
3URMHFW,PSOHPHQWDWLRQ0RQLWRULQJDQG6WDNHKROGHU(QJDJHPHQW
Step $VVLJQLQJD8QLW/HYHO6XVWDLQDELOLW\&RPPLWWHHFRPSULVLQJ6DPSDWKWHDPPHPEHUVFRPPXQLW\
1 leaders and customers/social (non-political) interested parties representing the area
Step Preparation of a priority list based on our study findings/observations and community members' views
2
Step $VVLJQLQJSURMHFWREMHFWLYHVNH\DFWLRQVUHVRXUFHUHTXLUHPHQWVWLPHIUDPHDQG
3 involvement of Sampath team members
Step ,PSOHPHQWLQJWKHSURMHFWLQOLQHZLWKDGHWDLOHGDFWLRQSODQDQGWLPHOLQH
4
Step &RQWLQXRXVPRQLWRULQJDQGHYDOXDWLRQRISURMHFWFUHGHQWLDOV
5
Social and Environmental

Grievance solved? NO
Impact Assessment
YES
Reporting and Record Keeping
49
STAKEHOLDER
ENGAGEMENT
GRI 102-33,40,42,43,44
We believe that The next step in our stakeholder engagement providing them with relevant, consistent
process involves designing and implementing and timely information to promote active
regularly engaging specific methods and procedures to engage participation in matters that affect them.
with our stakeholders with each group of stakeholders as well as
helps to draw on their
knowledge and insights
to inform strategic Identify
directions and inspire 1 Identify the stakeholder through internal and external
environment analysis
innovation on our part.
Stakeholder
Segment stakeholder Based on daily management Mapping
2 categories into subcategories criteria
As a mature organisation in business
for the past 30+ years, we are well
aware of the value of robust stakeholder Prioritise stakeholder According to impact and
3 subcategories influence on value creation
engagement, and understand how it
could affect our ability to achieve our
strategic objectives and mission. It is
Define Information, consultation,
why we remain committed to maintain 4 levels of engagement interaction or collaboration
open and fair communication with our
stakeholders in order to learn about their
needs, expectations and perceptions Review Evaluate existing channels Engagement
and decide how best to respond to their
5 channels for engagement and create new ones Model
material concerns. Further we believe that

regularly engaging with our stakeholders
Design the engagement The best suited to each
helps to draw on their knowledge and 6 model stakeholder subcategory
insights to inform strategic directions and
inspire innovation on our part.
Identify matters relevant to For both Sampath Bank and
Stakeholder Engagement Process 7 stakeholders the stakeholder subcategory
List of Relevant
We believe properly planning and
Matters,
handling our stakeholder engagements Risks and
That help to create value
builds trust and maximises the Identify risk and Opportunities
8 opportunities
for Sampath Bank and its
benefits gained through the process. stakeholders
As a first step, we carry out business
environment analysis to identify and Initiatives in relation to the
categorise stakeholders vis-a-vis their 9 Design action plan engagement model and Action Plan
relevant issues
connection with each business unit.
Taking cognisance of both the external
and internal environment, we have To analyse outcomes and
10 Monitor and report
report on performance
Post Review
determined that our stakeholders are
those individuals or entities who are
connected to Sampath Bank through
our products, services, operations All employees are expected to participate in stakeholder engagement activities relevant to their
or community projects. Based on day-to-day work to ensure sustainable value creation for stakeholders as well as for the Bank.
this premise, we have identified our
stakeholders to be; shareholders,
customers, employees, suppliers,
business partners, regulatory bodies and
the broader community.
50
Matters Relevant to the Our Strategic Response to Engagement Engagement

Stakeholder Stakeholder Mechanism Frequency
y Shareholder satisfaction y Maintaining a consistent Shareholder relations Periodically

Shareholders and UHJDUGLQJWKH%DQNţVƪQDQFLDO bottom line forums
Other Investors position General meetings Annually/
y Ensuring sustainable return
y Shareholder views on key on Investment (Rights Issue Periodically
Management
governance and policy 2019 was concluded) Annual Report Annually
Philosophy
matters Interim Financial Quarterly
y Engaging in greater
Ensuring long-term Statements
y Development of shareholder transparency according to
shareholder value Disclosures and Periodically
and upholding communication channels corporate governance code
announcements on
the rights of the y Return on equity and interest y Maintaining the Bank’s CSE
shareholder and gains reputation and credibility Corporate website 24 hours 7
supporting a
y Strategy and continuity y Safeguarding asset quality days
broader shareholder
y Financial performance General Regularly
constituency to
correspondence
ensure their wealth
maximisation &65SURMHFWV Regularly

y Ethical employment practices y Competitive rewards and Open-door policy Regularly

Employees y Career development EHQHƪWVWRDWWUDFWDQGUHWDLQ Employee forums Regularly
opportunities best talent in the market Employee suggestions Regularly
y Promote greater diversity schemes
y Employee communication
Management Grievance-handling Regularly
and feedback and inclusion
Philosophy
procedure
y Rewards/recognition y Develop from within through
Commitment to Employee social Regularly
training and development
create a conducive y Employee well-being committees
environment for y Encourage greater Feedback forms Annually
y Work-life balance
the employees to engagement Business unit level Regularly
develop and reach y Performance-based meetings
their potential, both Intranet 24 hours 7
incentives
professionally and days
personally y (ƩHFWLYHKDQGOLQJRI
Memorandums/Directives Regularly
grievances
Newsletters Quarterly
y Maintain high standards Training Regularly
of occupational health and Get-togethers/Events Regularly
safety Sampath Employee 24 hours 7
y Ensure employees’ welfare 1RWLƪFDWLRQ6\VWHP days
(SENS) & HR Hotline
y Foster a sense of
&65SURMHFWV Regularly
belongingness
Online groups Regularly
51
STAKEHOLDER
ENGAGEMENT

y Customer service y (ƩHFWLYHFRPSODLQW One-on-one feedback Regularly

Customers y Satisfaction on existing resolution from customers who visit
the Bank
products y Maintain service excellence
Customer surveys Periodically
Management y Brand perception and y Deliver technology-driven conducted via traditional
Philosophy reputation banking solutions or non-traditional
y Customer convenience y Continuous introduction of research techniques
8SKROGWKH
customers’ right to innovative products which Social media interactions 24 hours 7 days
y Need for innovations and
demand a stable and promote greater customer Customer complaint 24 hours 7 days
customised solutions
progressive banking convenience handling mechanism
y Communication methods ATL, BTL and digital Regularly
environment which
y (ƩHFWLYHPDUNHWLQJDQG
provides a superior y Special promotions communications
communication
service platform and Correspondence Regularly
y Timely and relevant
promotes customer y Maintaining data security SMS Alerts 24 hours 7 days
information on products and
choice/convenience and customer privacy
services Corporate Website 24 hours 7 days
y Promoting island-wide
y Customer touch-points Sampath Vishwa 24 hours 7 days
customer inclusiveness
(internet banking) portal
y &XVWRPHUEHQHƪWVDQG
y Better market share Customer Care Centre 24 hours 7 days
rewards
y Loyalty recognition
Feedback forms - paper Regularly
based/electronic
mediums

y Community capacity building y Socially-responsive Ground-level interactions Regularly

Community transformative CSR model with community leaders
y Community empowerment
E\VWDƩ
y Social welfare of communities y Transparency and
Interactions with social Regularly
governance
Management y Environmental degradation groups and volunteer
Philosophy y Community engagement organisations
y Preservation of local culture
Working in tandem y Employee volunteerism Environment grievance Regularly
with global and y Become a catalyst for handling mechanism
local mandates change Discussions with Regularly
which safeguard the Government
environment and organisations
promote community Discussion with other Regularly
empowerment organisations, community
and opinion leaders on
community development
HƩRUWV
Digital media-based Regularly
forums
52

y Developing strategic y Engaging in fair and equitable Interactions through Regularly

Suppliers and partnerships procurement the purchasing policy
Service Providers Feedback evaluations As and when
y Promoting transparent and y Supplier risk assessment
required
ethically responsible business mechanism
Management Meetings As and when
Philosophy practices y Contractual agreements required
y Continuous communication to promote sustainable Visits to supplier Periodically
Striking the right
with suppliers and service procurement ZRUNVKRSVRƬFHV
balance between
cost and quality and providers y Local sourcing Written Regularly
promoting ethical y Regular reviews on quality of communications
y Registration of multiple
and transparent goods and services (letters and e-mails)
suppliers and service providers
sourcing practices Reviews and Periodically
as a BCP measure
assessments
y Maintenance of suppliers and
service providers register
y Developing SME entrepreneurs
whilst purchasing goods which
meet the Bank's standards at a
UHDVRQDEOHFRVWWKXVHQMR\LQJ
a win-win situation for both the
Bank and the supplier

y Proper and prompt action y Compliance with regulations Policy directives/ Regularly
CBSL, CSE & Other on regulatory requirements y 5HFWLƪFDWLRQDFWLRQVRQ circulars, guidelines
Government introduced time to time and operating
supervisory concerns
Institutions Directly instructions
Related to Banking y Formulate the Bank's y On-time submission of statutory Meetings and forums Periodically
policies in line with the broad returns and statutory payments Press releases Regularly
Management REMHFWLYHVRIWKH&HQWUDO%DQN
y Response and contribution at 3HULRGLFDQGRQHRƩ Periodically/
Philosophy of Sri Lanka and Monetary
meetings/forums and to initiatives returns As and when
Ensure compliance Board required
of the regulators
with all legal 2QVLWHDQGRƩVLWH Periodically/
y Micro, small and medium
and regulatory supervision As and when
entrepreneurs lending and
requirements required
entrepreneurship development
Training programmes Regularly
y Supporting the non-conventional
renewable energy sector
y Support to maintain stability in
money and foreign exchange
markets
y Help investors to make better
investment decisions
53
STAKEHOLDER
ENGAGEMENT
Memberships of Associations GRI 102-13
Sampath Bank PLC held membership of the following industry based associations and national and international advocacy organisations with the
motive of maintaining sustainable relationships with stakeholders and contributing to betterment of the industry and nation as a whole.
Name of the Association Membership Status
ƶH$PHULFDQ&KDPEHURI&RPPHUFHLQ6UL/DQND Member
$VVRFLDWLRQRI&RPSOLDQFH2ƬFHUVRI%DQNV6UL/DQND Member
Association of Primary Dealers (APD) Member
Clearing Association of Bankers Member
CSR Lanka (Guarantee) Ltd. Member
International Chamber of Commerce – ICC Sri Lanka Member
Italian Business Council Member
Lanka Clear (Pvt) Ltd. Member
Lanka Financial Services Bureau Ltd. (LFSB) Member
/DQND6ZLIW8VHU*URXS/68* Treasurer & Assistant Treasurer
Leasing Councils of Bankers of Sri Lanka Member & Vice President
Payment Card Industry Association of Sri Lanka Member & Treasurer
Society for Worldwide Interbank Financial Telecommunication (SWIFT) Member
Sri Lanka Association of Software & Service Companies (SLASSCOM) Member
Sri Lanka Bank’s Association (Guarantee) Ltd. Member
Sri Lanka Business & Biodiversity Platform Patron Member
Sri Lanka Forex Association (SLFA) Member
ƶH(PSOR\HUV
)HGHUDWLRQRI&H\ORQ Member
ƶH$VVRFLDWLRQRI%DQNLQJ6HFWRU5LVN3URIHVVLRQDOVŠ6UL/DQND Member
ƶH&H\ORQ&KDPEHURI&RPPHUFH Patron Member
ƶH)LQDQFLDO2PEXGVPDQ6UL/DQND*XDUDQWHH/WG Member
ƶH1DWLRQDO&KDPEHURI&RPPHUFHRI6UL/DQND Member
Exporters' Association of Sri Lanka Member
National Chamber of Exporters of Sri Lanka Member
54
DOMINATING OUR INDUSTRY

WITH EXPERTISE
MANAGEMENT DISCUSSION &

ANALYSIS
Operating Environment | 56
Capital Management Reports | 59
Business Reports | 99
OPERATING
ENVIRONMENT
Among advanced economies
the weakening has been
broad based, with larger
economies such as the
United States and major
economies in the Euro
area being less affected
than other smaller Asian
advanced economies.
However, the slowdown
in activity has been even
more pronounced across
emerging markets and
half of 2019, the US economy appeared to shift Euro Area
developing economies.
to a somewhat slower pace of expansion to Growth in the Euro area is estimated to have
make adjustments for sluggish investments, slowed from 1.9 % in 2018 to 1.2% in 2019,
lower manufacturing output and escalating
Global Economy as major economies such as Germany and
trade tensions with China. Consequently, the France struggled amidst lower manufacturing
After recording a moderate growth in 2018,
US economy is estimated to have grown by output and weak external demand while Italy
the global economy further weakened in
only 2.4% in 2019, falling short of the 2.9% continued to experience a softening of private
2019 with growth expectations for the year
recorded in 2018. consumption levels.
downgraded to 3%, the slowest pace since
the global financial crisis in 2007/08. This
United Kingdom Japan
subdued growth is thought to be a culmination
The UK economy is estimated to have grown The performance of Japan's economy in 2019
of several factors; rising trade barriers; elevated
by 1.2% on par with projections, reflecting was broadly similar to 2018. The Japanese
uncertainty surrounding trade and geopolitics;
the combination of the negative impact from economy is thought to have grown by 0.9% in
macroeconomic strain in several emerging
weaker global growth and ongoing Brexit 2019 backed by strong private consumption
market economies; and structural issues such
uncertainty coupled with the positive impact and public spending, which helped to outweigh
as low productivity and aging demographics in
from higher public spending. However, the persistent weakness in the external sector.
advanced economies.
British Pound depreciated by 4% on the back of
growing concerns regarding Brexit.
Among advanced economies the weakening
has been broad based, with larger economies
such as the United States and major
GDP Growth - Sri Lanka
economies in the Euro area being less affected
%
than other smaller Asian advanced economies.
However, the slowdown in activity has been 8
even more pronounced across emerging 6.2
markets and developing economies. 6 5.3
4.5
3.7 3.9
United States 4 3.6 3.7
4.0
3.5 2.7 2.7
The US economy continued to maintain the 3.2 3.2
previous years' growth momentum in the 2
2.0 1.8
first half of 2019 buoyed by strong domestic 1.5
659
Sep-16 795
914
Jun-17 964
consumption levels. The US Dollar too showed 0

(Forecasted)
Mar-16
Mar-17
Mar-18
Mar-19
Jun-16
Dec-16
Sep-17
Dec-17
Jun-18
Sep-18
Dec-18
Jun-19
Sep-19
Dec-19
signs of strengthening. However, in the second
56
Despite being derailed by the Import Expenditure & Export Earnings ƶHJURZWKLQH[SRUWHDUQLQJVLVDWWULEXWHG
USD Bn to the favourable impact of the restoration
Easter Sunday attacks, RIWKH(8*63IDFLOLW\FRQGXFLYHH[WHUQDO
Sri Lanka's economy is 25 trade policies as well as some trade diversion
expected to rebound 20
UHVXOWLQJIURPWKH86&KLQDWUDGHWHQVLRQV
strongly and regain its
15 ƶH5XSHHZKLFKDSSUHFLDWHGE\LQ
growth momentum WKHƪUVWTXDUWHUH[SHULHQFHGVRPHSUHVVXUH
over the medium term 10 in the immediate aftermath of the Easter
supported by broad-based 5
Sunday attacks and again in the second half
and coordinated policy RI$XJXVWUHƫHFWLQJWKHLPSDFWRIKHLJKWHQHG
10.3
21.0
19.2
11.4
22.2
11.9
18.2
10.9
0 uncertainties in global markets. However,
DFWLRQƶHNH\ZRXOGEHWR 2016 2017 2018 2019 the subsequent improvement in liquidity
Nov.
implement policies that aim conditions in the domestic foreign exchange
Import Expenditure
to create macroeconomic Export Earnings PDUNHWGXHWRORZWUDGHGHƪFLWKHOSHGVWDELOLVH
VWDELOLW\LQFOXGLQJƪVFDO the exchange rate, with the Rupee appreciating
by 0.6% as at 31st December 2019.
consolidation measures DVZHOOƶHIDFWWKDWLWZDVDQHOHFWLRQ
WKDWWDUJHWLQƫDWLRQDQG year further added to the uncertainty and
Other positives for the year include the
dampened general business sentiment within
exchange rate stability, the country. Moreover, policy inconsistency and
renewal of the Extended Fund Facility of the
International Monetary Fund (IMF-EFF) upon
which would boost the ORZLQYHVWRUFRQƪGHQFHGXHWRSRRUUDWLQJV
the successful completion of the sixth review,
FRQƪGHQFHRIGRPHVWLFDV in the easing of doing business rankings
enabling the country to receive the seventh
well as foreign investors, remained the key factors responsible for the
tranche under the facility in November 2019.
GHFOLQHLQ)',LQƫRZVWRWKHFRXQWU\LQ
and encourage increased
In yet another encouraging development, the
investment in the economy. $VSHUWKHƪJXUHVDYDLODEOHWRGDWHLWDSSHDUV
Financial Action Task Force (FATF), the global
WKDWDJULFXOWXUHIRUHVWU\DQGƪVKLQJDFWLYLWLHV
policy setter on Anti-Money Laundering and
China JUHZE\DPRGHUDWHLQWKHƪUVWQLQH
Countering the Financing of Terrorism (AML/
China's economy is estimated to have grown months of 2019, compared to robust 4.3%
&)7LQ2FWREHUFRQƪUPHG6UL/DQND
V
by 6.1% in 2019, albeit at a slower pace than growth in the same period of the preceding
delisting from its Compliance Document, more
LQDVWKHHƩHFWVRIHVFDODWLQJWDULƩVDQG \HDU,QGXVWULDODFWLYLWLHVWRRVORZHGLQWKHƪUVW
FRPPRQO\LGHQWLƪHGDVťWKH*UH\/LVWŦƶH
weakening external demand began to have a QLQHPRQWKVUHJLVWHULQJDJURZWKƶH
decision was made following the determination
deeper impact on economic activity within the Services sector, which has been the engine of
that Sri Lanka has completed its Action Plan
country. growth for the past few years, reportedly grew
for the implementation of necessary AML/CFT
E\RQO\LQWKHƪUVWWKUHHTXDUWHUVRI
reforms in the future.
Sri Lankan Economy compared to the 4.4% growth recorded in the
Sri Lanka's economy is forecasted to register corresponding period in the previous year.
Outlook
a subdued growth of 2.7% for 2019 as tough
Despite being derailed by the Easter Sunday
external and internal conditions saw the ,QƫDWLRQKDYLQJVHHQVRPHYRODWLOLW\GXULQJWKH
attacks, Sri Lanka's economy is expected
country facing what is perhaps one of the most year, accelerated to 4.8% in December 2019.
to rebound strongly and regain its growth
challenging years in the post-war era. Most
On a more positive note, Sri Lanka’s momentum over the medium term supported
VLJQLƪFDQWO\WKH(DVWHU6XQGD\DWWDFNVKDG
external sector strengthened in 2019, by broad-based and coordinated policy action.
a direct impact on tourism related services
resulting in a substantial contraction in the ƶHNH\ZRXOGEHWRLPSOHPHQWSROLFLHV
activities, particularly accommodation, food
WUDGHGHƪFLWWKDQNVWRDQRWDEOHGHFOLQHLQ that aim to create macroeconomic stability,
and beverage service activities, transportation
import expenditure along with a moderate LQFOXGLQJƪVFDOFRQVROLGDWLRQPHDVXUHVWKDW
of goods and passengers including
improvement in export earnings. During WDUJHWLQƫDWLRQDQGH[FKDQJHUDWHVWDELOLW\
warehousing. In the aftermath of the attack,
WKHƪUVWHOHYHQPRQWKVRIWKH\HDULPSRUW ZKLFKZRXOGERRVWWKHFRQƪGHQFHRIGRPHVWLF
LQYHVWRUFRQƪGHQFHLQHFRQRP\KLWDQDOOWLPH
expenditure declined by 11.4% while earnings as well as foreign investors, and encourage
low and had far-reaching consequences that
from exports grew by 0.8% year-on-year. increased investment in the economy.
DƩHFWHGPRVWRWKHUVHFWRUVRIWKHHFRQRP\
57
OPERATING
ENVIRONMENT
Furthermore, it is hoped that the extension of share of demand deposits was observed with a Capital and Liquidity
WKH,0)())SURJUDPPHXQWLO-XQH6UL corresponding increase in short term savings, Banks continued to maintain capital and
Lanka's delisting from the FATF's "Grey List" particularly in three-month term deposits. OLTXLGLW\EXƩHUVZHOODERYHWKHUHJXODWRU\
and the gradual dissipation of uncertainties in Consequently, the share of current and savings minimum requirements, thereby strengthening
the political sphere once the current election deposits as a percentage of total deposits WKHVHFWRU
VUHVLOLHQFHDVDZKROHƶHEDQNLQJ
cycle is completed, would help bolster investor (CASA ratio) also declined to 31.4% as at end sector maintained adequate capital during the
FRQƪGHQFHDQGWULJJHUDUHERXQGLQ)',VRYHU December 2019, compared to 32% in 2018. year in order to absorb any adverse shocks.
the medium term. By end December 2019, the banking sector
NPL - Banking Industry
operated with a Common Equity Tier I ratio of
Banking Sector Update Rs Bn %
13.2%, Total Tier I ratio of 13.2% and a Total
ƶHEDQNLQJVHFWRUUHFRUGHGDPRGHUDWLRQ Capital ratio of 16.7%, well above the Basel III
400 6.0
in its growth momentum during 2019 as the requirements.
demand for credit plummeted due to the
300 4.7 4.5
adverse business environment in the country. Key Regulatory Developments Impacting
Year-on-year credit growth which hit 19.6% 3.4 the Sector
200 2.6 2.5 2.8 3.0
as at end 2018 took a nosedive in 2019 and
y May 2019 - Moratorium for tourism
dipped to 5.6% as at 31st December 2019. 2.0
100 1.2 1.5 sector
1.3
A circular was issued to licensed banks
142
161
263
382
$WHQG-XQHEDQNLQJVHFWRUFUHGLW
was mainly extended to the consumption, 0 0.0 enabling them to grant a moratorium
2016 2017 2018 2019
wholesale and retail trade, manufacturing, to individuals and entities, who have
Banking Industry Non-Performing Loans
infrastructure developments and agriculture, registered with the Sri Lanka Tourism
Gross NPL Ratio (RHS)
IRUHVWU\DQGƪVKLQJVHFWRUV0HDQZKLOHFUHGLW Net NPL Ratio (RHS) Development Authority or any other
JUDQWHGWRFRQVWUXFWLRQƪQDQFLDOVHUYLFHVDQG authority/agency to provide services
WRXULVPUHSRUWHGDGHFOLQHGXULQJWKHƪUVWKDOI Asset Quality relating to the tourism sector, on a case-
of 2019, seen as a direct consequence of the A marked deterioration in asset quality was by-case basis for the performing loans
economic environment prevalent at the time. observed in 2019 as NPLs increased by 45.0% (both capital and interest) till 31st March
during the year, which pushed up the NPL 2020 in respect of outstanding credit
Asset Base ratio to 4.7% by end December 2019 from facilities as at 18th April 2019.
ƶHDVVHWEDVHRIWKHEDQNLQJVHFWRUFRQWLQXHG 3.4% as at end December 2018. A rise in NPLs

y December 2019 - Introduction of a
to grow, albeit at a much slower pace ZDVREVHUYHGDFURVVDOOVHFWRUVLQƶH
framework for identifying Domestic
compared to the previous year. Total assets of NPL ratio of the agriculture sector increased
6\VWHPLFDOO\,PSRUWDQW%DQNV'6,%V
the sector expanded by 6.2% to Rs 12.5 Tn in VLJQLƪFDQWO\PDLQO\GXHWRWKHLPSDFWRIWKH
2019 compared to a growth of 14.6% in 2018. GURXJKWWKDWSUHYDLOHGGXULQJWKHƪUVWTXDUWHU As per the Banking Act Direction Nos.
of 2019, while tourism sector NPLs also shot up 10, 11 and 12 of 2019 issued by CBSL
Funding following the Easter Sunday attacks. on 20th December 2019, the criteria
IRUWKHLGHQWLƪFDWLRQRI'6,%VZDV
ƶHEDQNLQJVHFWRUH[SDQVLRQZDVODUJHO\
3URƪWDELOLW\ UHYLVHG8QGHUWKHQHZFULWHULDDPRUH
IXQGHGWKURXJKGHSRVLWVƶHGHSRVLWEDVH
ƶH%DQNLQJVHFWRUUHSRUWHGDGHFOLQHLQ complex methodology was introduced
of the banking sector grew at a rate of 7.9%
SURƪWDELOLW\LQZKLFKZDVUHƫHFWHGLQ requiring D-SIBs to maintain Higher
during the year 2019.
both the Return on Assets (ROA) before tax and Loss Absorbency (HLA) requirements as
Return on Equity (ROE) after tax which dropped VSHFLƪHGE\WKH0RQHWDU\%RDUGƶH
Meanwhile the caps on deposit interest rates
to 1.4% and 10.3%, respectively, in December SULPDU\REMHFWLYHRIWKHLPSOHPHQWDWLRQ
imposed by the CBSL in April 2019, which was
2019 from 1.8% and 13.2%, respectively, in of the D-SIBs framework is for D-SIBs
subsequently removed in September 2019,
'HFHPEHUƶH1HW,QWHUHVW0DUJLQ1,0 WRKROGKLJKHUFDSLWDOEXƩHUVDQGWR
was aimed at reducing the cost of funds of
remained unchanged at 3.6% from last year to provide incentives to reduce their systemic
banks. During the period when the deposit
this year. importance on the domestic economy.
UDWHFDSZDVLQHƩHFWDQRWDEOHGHFUHDVHLQ
58
CAPITAL MANAGEMENT
REPORTS
Financial Capital | 60
Manufactured Capital | 64
Intellectual Capital | 68
Human Capital | 72
Social and Relationship Capital | 82
Customer | 82
Community | 84
Supplier | 91
Natural Capital | 92
Capital Trade-Offs | 98
FINANCIAL
CAPITAL
Despite the challenges, Change in Accounting Standards Income Statement Analysis

the Bank's NII increased The new standard, SLFRS 16 (Leases) came Gross Income
into effect from 1st January 2019, in place of the
by Rs 3.5 Bn during the The gross income of the Bank increased to
previous Accounting Standard LKAS 17 (Leases). Rs 118.9 Bn in 2019 from Rs 115.3 Bn
period under review to In order to comply with SLFRS 16, Sampath reported in 2018, a growth of 3.1%. Fund
reach Rs 41.6 Bn as at 31st Bank was required to recognise lease liabilities based income, net gains from trading, and
December 2019. in relation to leases that had previously been fee and commission income were the main
classified as “Operating Leases”. Due to this contributors towards this achievement.
adjustment, both assets and liabilities of the
Scan this QR code for a more Bank showed an increase of Rs 4 Bn in 2019. Net Interest Income (NII)
comprehensive view of our Management In the transition from LKAS 17 to SLFRS 16,
Approach on Financial Capital Low credit growth, higher non-performing loans,
www.sampath.lk the Bank applied the ‘Modified Retrospective
Easter Sunday terrorist attacks, Presidential
Approach’. Therefore, the comparative figures
election and pressure on lending rates/interest
have not been restated in 2019.
rate caps affected the Sampath Bank's NII
Overview of Banking Industry
The financial year 2019 was perhaps one of the
toughest periods for the Sri Lankan economy
Bank’s Performance 2019
since the end of the war in 2009. The Easter
Rs Bn
Sunday attacks in April 2019 which had a direct
impact on several key sectors such as tourism, 60
leisure and travel also indirectly affected most 3.57
50 12.57
other sectors causing Sri Lanka's economy 10.03
to weaken considerably from May 2019 40

onwards. The Banking industry, the key source 20.37
30
of funding for many businesses in Sri Lanka, 41.58
20
too was affected due to this downward spiral. 11.09
The sector remained under stress due to poor 10
659
11.15
credit demand and higher non-performing 0
loans (NPLs). Banking sector NPLs grew from Net Interest Net Fee & Other Impairment Operating Taxes on FS Profit for
Income Commission Income Charge Expenses & Income Tax the Year
3.4% as at the end of 2018 to 4.7% as at 31st Income
December 2019.
60
growth during the year 2019. Despite the Consequently, the Net Interest Margin too Net Interest Income
challenges however, the Bank's NII increased improved marginally to 4.46% in 2019
by Rs 3.5 Bn during the period under review to compared to 4.41% reported in 2018. Rs 41.6 Bn
reach Rs 41.6 Bn as at 31st December 2019.
ƶLVJURZWKZDVWKHUHVXOWRIHƩHFWLYHIXQG 1RQ)XQG%DVHG,QFRPH1)%,
management strategies adopted by the Bank, Net fee and commission income, which
coupled with timely re-pricing of assets and comprises credit, trade, card, operations and
liability products right throughout the year 2019. electronic channel related fees, grew marginally
It is noteworthy to mention that the 2018
by 1.2% to Rs 10.0 Bn in 2019 from Rs 9.9 Bn in
Rs 12.1Bn worth of Tier I capital raised during Rs 38.1 Bn
2018. Growth for the year was driven by a strong
the year, enabled the Bank to release some of its increase in income generated through card and
ODUJHUKLJKFRVWGHSRVLWVƶLVKHOSHGWRUHGXFH
the cost of funds and created a positive impact
electronic channels due to higher volume of
transactions, which helped to compensate the
9 %
RQ1,,ƶHUHGXFWLRQRI655IURPWR drop in demand for fee-based activities across
ZLWKHƩHFWIURPWK1RYHPEHUIROORZHG credit-related product lines.
E\DIXUWKHUUHGXFWLRQWRZLWKHƩHFWIURPVW
March 2019 also contributed towards improving Net gains from trading activities recorded a
the NII. VLJQLƪFDQWJURZWKRIPDLQO\GXHWR
Impairment Charge
movements in forward exchange rates working
Overall interest income for the period under Stressed economic conditions that prevailed
in favour of the Bank. For the year under review,
review recorded an increase of Rs 5.6 Bn to WKURXJKRXWWKH\HDUFRQWLQXHGWRDƩHFW
net gains from trading stood at Rs 2.2 Bn
reach Rs 103.6 Bn compared to Rs 97.9 Bn EXVLQHVVFDVKƫRZVRIPDQ\EXVLQHVVHVLQ
compared to a loss of Rs 2.3 Bn recorded in
recorded in 2018 which was a moderate growth the country. As a result, the Bank experienced
2018. Meanwhile, net other operating income
of 5.8%. VLJQLƪFDQWLQFUHDVHLQFXVWRPHUGHIDXOWV
recorded a decline of 84.4% from Rs 8.0 Bn in
and delayed repayments etc. To address this
WR5V%QLQƶLVZDVGXHWRWKH
Interest Income & AWPLR issue, the Bank continued to take strategic
drop in realised exchange income following the
Rs Bn % measures such as rescheduling/restructuring
appreciation of the Sri Lankan Rupee against
existing facilities to suit the customers’ debt-
WKH86'ROODUE\5VLQLQFRPSOHWH
120 13.0 servicing capacity coupled with improvements
contrast to the depreciation of Rs 29.40
to the pre-credit evaluation and post-credit
100 12.5 recorded in 2018. Total exchange income
PRQLWRULQJSURWRFROVƶLVKHOSHGWRPDQDJH
80 12.0 which consists of net gains/losses from forward
the increasing trend in the NPL to some extent
11.6 11.6 contracts and realised exchange income,
60 11.5 towards the latter part of 2019. Nonetheless
decreased to Rs 2.8 Bn for the year 2019, from
the Bank’s NPL ratio as at 31st December 2019
40 11.2 11.0 Rs 5.5 Bn recorded during the previous year
increased to 6.37% from 3.69% recorded in
which is a decline of 49.1%.
20 10.5 10.5 ƶHEDQNLQJLQGXVWU\13/DOVRUHFRUGHG
103.6
56.5
79.6
97.9
DVLJQLƪFDQWLQFUHDVHIURPLQWR
0 10.0 Net Fee & Commission Income 4.7% as at 31st December 2019 owing to the
2016 2017 2018 2019
Rs Mn
poor performance of construction, tourism
Interest Income DQGWUDGLQJVHFWRUVZKLFKZHUHEDGO\DƩHFWHG
Average of 12 Months AWPLR (RHS) in 2019 due to a combination of factors
12,000
mentioned previously.
10,000
Interest expenses for the year too increased
slightly by 3.5% owing mainly to the new 8,000 ƶH%DQNKDVDOUHDG\VHFXUHGDVXEVWDQWLDO
debenture issue that took place in February SRUWLRQRILWVDGYDQFHSRUWIROLRZLWKƪUVWFODVV
6,000
2019 and the marginal growth in the deposit securities which in turn helped to control the
portfolio. At the end of 2019, the Bank's interest 4,000 impairment provision. Sampath Bank's total
expenses reached Rs 62.0 Bn compared to impairment charge against loans and advances
10,033
6,585
8,156
9,919
2,000
Rs 59.9 Bn recorded in 2018. for the year ended 31st December 2019
0 stood at Rs 12.0 Bn, an increase of Rs 1.5 Bn
2016 2017 2018 2019
or 13.8%. It is noteworthy to mention that
impairment charge for the fourth quarter
61
FINANCIAL
CAPITAL
showed a reduction of Rs 392.6 Mn compared Further, the cash and cash equivalents,
Tax Impact on Bank's Profit
to the corresponding period in 2018 as well as placements with banks and investment in
Rs Bn %
a reduction of Rs 611.1 Mn compared to the WUHDVXU\ELOOVDQGERQGVFODVVLƪHGXQGHU
WKLUGTXDUWHUƶH%DQNţVFRVWRIULVNKDV 15 60 ƪQDQFLDODVVHWVUHFRJQLVHGWKURXJKSURƪW
increased to 1.74% from 1.69% reported in or loss and under fair value through other
49.9
the previous year due to reasons mentioned 12 50
comprehensive income, recorded a drop
47.7
above. Further, impairment provision against 40.8 compared with 2018. On the other hand, the
RWKHUƪQDQFLDODVVHWVDQGFRPPLWPHQWV 9 44.3 41.5 40
LQYHVWPHQWLQƪQDQFLDODVVHWVFODVVLƪHGXQGHU
contingencies amounted to Rs 569.3 Mn.
6 30 amortised cost has been increased.
Operating Expenses 3 20 Right-of-use assets reported in the

12.1
12.1
11.2
6.1
9.1
Total operating expenses for 2019 was Statement of Financial Position is due to the
0 10
Rs 20.4 Bn compared to Rs 19.3 Bn recorded 2015 2016 2017 2018 2019 implementation of Sri Lanka Accounting
in 2018. Higher personnel expenses triggered 6WDQGDUG6/)56/HDVHVƶH
by annual salary increments and general price Profit after Tax
corresponding liability is booked under other
Effective Tax Rate (RHS)
hikes were the main factors that contributed liabilities.
to the increase of 5.5% in total operating
expenses. 3URƪWDELOLW\ Loan Growth
3URƪWEHIRUHLQFRPHWD[3%7IRUWKH\HDU ƶHJURVVORDQSRUWIROLRZKLFKVWRRGDW
ƶHWRWDOSHUFHQWDJHJURZWKLQRSHUDWLQJ
2019 dropped to Rs 15.5 Bn from Rs 18.3 Bn Rs 670.3 Bn as at 31st December 2018, grew
expenses remained above the total percentage
reported in the previous year, a decline of only by Rs 49.3 Bn to reach Rs 719.6 Bn as at
growth in total operating income. As a result,
15.5% owing to reasons mentioned above. VW'HFHPEHUƶLVZDVSDUWO\GXHWRWKH
the Bank’s cost-to-income ratio (excluding VAT,
3URƪWDIWHUWD[3$7WRRGHFOLQHGVOLJKWO\E\ drastic reduction in credit demand experienced
1%7DQG'5/RQƪQDQFLDOVHUYLFHVLQFUHDVHG
8.2% from Rs 12.1 Bn to Rs 11.2 Bn. in the market right throughout the year and
by 100 basis points from 35.9% reported in last
partly due to the Bank's internal decision to
year to 36.9% in 2019. However it is important
ROE and ROA maintain a cautious lending approach in the
to note that the Bank managed to restrict its
ƶHGHFOLQHLQWKH%DQNţVSHUIRUPDQFHGXULQJ interest of safeguarding credit quality.
total operating expenses to well below the
budget allocation for 2019. the period under review and increase in
average equity base owing to the Rights Issue Liabilities
Taxation LQ-XQHVDZWKH5HWXUQRQ$YHUDJH(TXLW\ Sampath Bank’s deposit base expanded by
(ROE) (after tax) declining to 11.78% in 2019 Rs 20.2 Bn during the year to reach
6DPSDWK%DQN
VWD[H[SHQVHVLQFOXGHƪQDQFLDO
from 16.02% in 2018. Return on Assets (ROA) Rs 718.3 Bn as at 31st December 2019.
VHUYLFHV9$7ƪQDQFLDOVHUYLFHV1%7GHEW
repayment levy (DRL) and income tax. Total tax before income tax for 2019 also declined ƶLVPDUJLQDOJURZWKRIZDVGXHWR
expense of the Bank stood at Rs 11.1 Bn for the to 1.66% from 2.13% predominantly due to WKHFRQVFLRXVHƩRUWVPDGHE\WKH%DQNWR
year 2019 which included DRL amounting to GHFUHDVHLQSURƪWDELOLW\ slowdown the deposit mobilisation activities and
Rs 2.2 Bn. As a result, the Bank's tax expenses also due to shedding of certain large high-cost
WDNHQDVDSHUFHQWDJHRIRSHUDWLQJSURƪWIRUWKH Balance Sheet Analysis deposits following the capital infusions and
year increased to 49.9% for 2019 compared to Total Assets extra lendable funds released from the balances
47.7% in 2018. It is noteworthy to report that the Sampath Bank’s total asset base which stood PDLQWDLQHGZLWK&%6/GXHWR655FXWVHƩHFWHG
decision by the Government to abolish the DRL at Rs 914.2 Bn as at 31st December 2018, grew E\WKHUHJXODWRUƶH%DQNUDLVHG5V%Q
ZLWKHƩHFWIURPVW-DQXDU\LVDZHOFRPH moderately to reach Rs 962.4 Bn by end of worth of Tier I capital and Rs 20.5 Bn worth of
PRYHIRUWKHHQWLUHƪQDQFLDOVHUYLFHVVHFWRU ƶLVJURZWKLQWKHDVVHWEDVHFDQ Tier II capital since last quarter 2017 in order to
be mainly attributed to the growth in net loans fall in line with Basel III regulatory requirements
and advances. LQWURGXFHGZLWKHƩHFWIURPVW-XO\$VD
UHVXOWRIWKLVPDVVLYHFDSLWDOLQMHFWLRQWKH%DQNţV
Meanwhile balances with CBSL reduced by dependability on the deposits to fund its loan
FRPSDUHGWRVW'HFHPEHUƶLV JURZWKZDVWHPSRUDULO\UHGXFHGƶLVLVHYLGHQW
ZDVPDLQO\GXHWRWKH655FXWRIHƩHFWLYH from the relatively high Advances to Deposit
from 1st March 2019. Ratio (ADR) of over 100% reported in 2019.
However the ADR is expected to stabilise at
around 95% within the next three years or so.
62
Sampath Bank’s Board of Capital Performance of the Share

Directors has recommended In 2019, the Bank remained proactive in With the performance of the Colombo Stock
LWVHƩRUWVWRVWUHQJWKHQWKHFDSLWDOEDVH ([FKDQJH&6(DƩHFWHGE\ZHDNHFRQRPLF
DƪQDOFDVKGLYLGHQGRI in compliance with the Basel III capital FRQGLWLRQVLQWKHFRXQWU\WKH$63,ƫXFWXDWHG
Rs 11.75 per share to be requirements. After two successful Basel III VLJQLƪFDQWO\LQEHWZHHQDORZRI
SDLGIRUWKHƪQDQFLDO\HDU compliant debentures and Rights Issues in DQGKLJKRIEHIRUHƪQDOO\VHWWOLQJDW
ended 31st December 2019. previous years, the Bank raised another 6,129 by the end of 2019. In this environment,
Rs 7 Bn worth of Tier II Capital by way of a 6DPSDWK%DQNţVVKDUHSULFHWRRƫXFWXDWHG
Basel III compliant debenture issue in February between a low of Rs 136.00 and a high of
It is however appropriate to mention that ,Q-XQHDPLGVWWU\LQJHFRQRPLF 5VGXULQJWKH\HDUƶH%DQN
VVKDUH
the Bank has the capacity and the required conditions in the country the Bank successfully price settled at Rs 162.40 on the last trading
infrastructure to accelerate deposit growth if raised Rs 12.1 Bn for Tier I capital through a day of 2019, a drop of Rs 72.60 or 31% from
and when the need arises within a very short successful Rights Issue. As a result, the Bank’s WKHODVWWUDGHGSULFHRI5VLQƶH
period of time. Furthermore, renewed emphasis Common Equity Tier I Capital, Total Tier I increase in the number of listed shares of the
on promoting low cost savings led to a robust Capital and Total Capital Adequacy ratios as at Bank also had an impact on share price.
8.7% CASA growth which in turn pushed up 31st December 2019 stood at 14.22%, 14.22%
the CASA ratio to 35.2% in 2019 from 33.4% DQGUHVSHFWLYHO\ƶHVHUDWLRVVWRRG Earnings per Share (EPS) for 2019 was at
recorded in 2018. well above the minimum ratios prescribed by Rs 32.84, 23.9% lower than the Rs 43.18
the Basel III capital requirements. recorded for the previous year due to the
Financial liabilities at amortised cost due to debt subdued performance tabled by the Bank in
security holders increased only marginally due Group Performance 2019 and the increase in number of shares
to redemption of 2015/2019 debenture during ƶH6DPSDWK*URXSFRQVLVWVRIIRXUIXOO\ during the year due to the new capital infusion
the month of December this year. owned subsidiaries, viz; Siyapatha Finance and capitalisation of the scrip dividend. Net
PLC, SC Securities (Pvt) Ltd., Sampath Centre asset value per share too, decreased by
ƶHLQFUHDVHUHFRUGHGLQRWKHUOLDELOLWLHV Rs 25.15 compared to 2018 and stood at
Ltd., and Sampath Information Technology
is predominantly due to the adoption of SLFRS Rs 275.27 due to above noted increase in
Solutions Ltd. However, compared to the scale
16 discussed above. New lease liabilities created number of shares.
of operations of the Bank, the results of these
due to the adoption of the above standard
four entities are not material. A brief review
exceeds Rs 4 Bn. Dividend
of their operations is given in the section on
Subsidiaries on page 114 of this Annual Report. Sampath Bank’s Board of Directors has
Total Deposits & CASA UHFRPPHQGHGDƪQDOFDVKGLYLGHQGRI5V
Rs Bn % SHUVKDUHWREHSDLGIRUWKHƪQDQFLDO\HDUHQGHG
800 50 VW'HFHPEHUVXEMHFWWRWKHDSSURYDORI
Dividend Payout Ratio
the shareholders at the Annual General Meeting
600 38.4
35.2
40 40.2 % WREHKHOGRQWK0DUFKƶHGLYLGHQG
payout ratio for the year ended 31st December
34.9
33.4 2019 is over 40%.
400 30
200 20
2018
516
630
698
718
0 10 37.6%
2016 2017 2018 2019
Total Deposits
CASA (RHS) 260 bps
63
MANUFACTURED
CAPITAL
The overall branch operating Branch Network (CDM), with an additional 64 units being
commissioned in 2019 bringing the total to
model was streamlined Sampath Bank's branch network consisting of
429 as at 31st December 2019. And to further
229 branches is the third largest among private
with a number of significant enhance the versatility of CDMs, the online
sector banks in Sri Lanka. It is also one of the
improvements being made most geographically widespread, the result real-time Bill Payments facility was activated
to rationalise the back-end of a well-planned branch investment strategy across the CDM network.
operations as well. centred on Expanding Market Reach at each

And in the interest of providing greater
location. Having made significant investments
customer convenience, we continued to
in the past to build a solid island-wide branch
leverage on advanced IT solutions to improve
Scan this QR code for a more footprint, no new branches were added to the
comprehensive view of our Management the facilities offered to branch customers. One
network in 2019. We did however continue to
Approach on Manufactured Capital of the most notable efforts in this regard was
www.sampath.lk invest in increasing the number in physical
the launch of the Slip-less Banking App at all
touch points by expanding the network
229 branches enabling customers to use the
of branch-based Cash Deposit Machines
App via tablets placed in the digital banking
area within branch premises. We also began
Our Manufactured Capital represents the Geographical Distribution
working on introducing facial recognition
physical and digital infrastructure that of the Branch Network
software to connect the Slip-less Banking App
determines our fundamental ability to reach
to a special cash deposit terminal placed at the
out to our customers. Therefore it goes without 9
9 teller counter.
saying that the growth of our business over the
13
years has largely been pivoted on expanding
14 In addition to these front end upgrades,
our Manufactured Capital.
17 the overall branch operating model was
100 streamlined with a number of significant
Since the inception we have progressively
21 improvements being made to rationalise the
increased our investment to develop our
back-end operations as well. The main focus
Manufactured Capital by focusing on two key 22
24 was to migrate to paperless processes that
areas: Channel Management and Digitisation.
Western Sabaragamuwa would improve overall efficiency and drive
Today, the ecosystems that we have created
Southern Northern down branch costs. Key initiatives included
through varied channels provide the
Central North Central the implementation of the FileNet Document
opportunity for customers to seamlessly access North Western Uva
Management System across the network to
Sampath Bank's products and services, in turn Eastern
reduce the need for maintaining physical
bringing prosperity to millions of Sri Lankans
documentation at branches, and the roll out
around the country.
of the e-mandate programme to the whole
64
GRI 102-6
Scan this QR code for a more

-DƩQD
District
9 8 comprehensive view of our Branch, ATM
8 10 and MY BANK Agent network
www.sampath.lk
Kilinochchi District
1 1 1
1
Mullaitivu
District 1 1 229
1 Branches
2
1
1
Mannar
1
2
5
3 423
District
Vavuniya
District
ATMs
Trincomalee
District 429
Cash Deposit
6 8 7 9 4 4 Machines
Anuradhapura 5
District
4
2 15 170
8 11 Polonnaruwa
District
MY BANK Agents
Puttalam
District 3 3
16 22 1 5 Batticaloa
District
5
13 20 2 6 7 Digital Banking
Kurunegala
District 3 5 5
7 Centres
Matale
10
District
Kandy District
11 5 1
Kegalle 15 24
22 2 31 Geographical Distribution
District 7 7 of MY BANK Agents
27 57 5 8 10 Ampara
56 1 8 Nuwara Eliya 6 District
Gampaha 8 56
District District
4 7 11
Colombo 5 5 6
63 166 4
District 5 11
3 21 6
Badulla 4 5
District 12
Ratnapura
151 Kalutara
District
Monaragala
District District
12
10 22 9 11 10
17
13 20 13
18 25
10 15 13 Hambantota Western Northern

12 18 10 5 District Southern Sabaragamuwa
Galle 4 5 North Western Uva
District 8 14 8 Central North Central
Matara Eastern
District
65
MANUFACTURED
CAPITAL
branch network by end December 2019.

Another key effort was the digitisation of
branch communications through the help of
Microsoft Office 365 Forms and the Yammer
platform.
ATM Network
Sampath Bank's ATM network serves as a key
customer touch-point that provides 24/7, 365
day access to a host of banking services. Over
the years the Bank has continued to invest
in growing its island-wide ATM footprint, with
special emphasis on increasing the number of
off-site ATMs. In 2019, 3 new off-site ATMs were
commissioned bringing the total network to Virtual Teller Machine greatly reduces the need for on-site branch expertise resulting in improved productivity
423 as at 31st December 2019. In line with our and greater efficiency, culminating in considerable cost savings for the Bank.
ongoing network modernisation programme

several older units were replaced with more
efficient cash re-cycler ATMs. Meanwhile 2 VTMs Marking an important Digital Channels
(Virtual Teller Machine) were commissioned
milestone in our Digital Sampath Bank is widely recognised as one of
in 2019 at our head office and Colombo super the pioneers of digital banking in Sri Lanka.
branch and steps were taken to install VTMs journey, was the launch
"SampathNet" internet banking facility was
at Wellawatte super branch, Gampaha super of the WePay, the Virtual started in 2001 and relaunched as "Sampath
branch and Kiribathgoda super branch which Wallet mobile app in Vishwa" in 2009. The Sampath Vishwa
would be functional from January 2020. Capable
mid-2019, a secure, corporate banking platform launched in 2009,
of performing almost 90% of the routine followed by Vishwa personal in 2010 are
banking transactions, the VTM greatly reduces cashless platform that
among the firsts for the local banking industry.
the need for on-site branch expertise resulting allows customers to make In the years since, we have accelerated our
in improved productivity and greater efficiency, payments without the need digital strategy which has led to numerous
culminating in considerable cost savings for the
for cash or credit cards. other initiatives such as the Sampath Bank
Bank. Meanwhile seeing the growing demand mobile app, the Sampath Corporate Payment
for the VTM at the Colombo Super branch, the System, i-gift, e-pay mobile cash, the digital
The Bank's Central Cash Department (CCD)
operating hours were extended until 8.00 p.m. loan, etc., which have all contributed towards
continues to oversee the management of the
daily. increasing the Bank's digital presence. These
ATM network, including cash management
self-service channels have revolutionised
function and 24/7 CCTV monitoring of the
money transfer and payments and given
On-Site & Off-Site ATMs off-site ATM network. The CCD's predictive
customers greater control and freedom to
cash management tool which was applied on
manage their bank accounts. Testifying to this,
a limited basis in 2018, was further refined
500 is the increase in the volume of transactions
and rolled out across the entire ATM network
performed through digital channels - over 94%
in 2019. This has enabled timely and accurate
400 of the Bank's total transaction volumes for
forecasting of the cash requirements of ATMs
94
91
82
2019 were performed through digital channels

83
300 to help optimise the cash held within the ATM,

(91% in 2018).
leading to significant reduction in the ATM
200
downtime due to cash shortages.
100
298
309
328
329
0
2016 2017 2018 2019
Off-Site ATMs
On-Site ATMs
66
Encouraged by the success achieved so far, we By embracing the agency

continued to invest in deepening our digital
presence in 2019 as well. Marking an important
model, our aim is to serve
PLOHVWRQHLQRXUGLJLWDOMRXUQH\ZDVWKHODXQFK our customers better by
of the WePay, the virtual wallet mobile app in bringing services closer
mid-2019, a secure, cashless platform that to them and also allowing
allows customers to make payments without
the need for cash or credit cards. Targeting
WKHPWREHQHƪWIURP
WKHƪYHPLOOLRQPRELOHEURDGEDQGXVHUVLQ extended banking hours,
the country at present, the WePay app is easily thus eliminating the
downloadable on any iOS or Android enabled hassle associated with
smart phone. With the WePay virtual wallet we
are looking to create a holistic digital banking
visiting the branch.
ecosystem that will give customers the ability
WRIXOƪOODOOWKHLUEDQNLQJQHHGVWKURXJKWKHLU Agency Banking
mobile device, without ever having to step into
Seeking new ways to expand Sampath Bank's
a branch.
island-wide reach, in 2019 we adopted
the Agency Banking model to support our
GHSRVLWPRELOLVDWLRQVWUDWHJ\ƶHPRGHOLV
operationalised through a network of "MY
BANK Agents" who are granted the authority to
perform routine banking services with the help
of a POS terminal provided by the Bank. MY
BANK Agents are selected by the Bank based on
their longstanding credibility in the community.
Based on this criteria, selected MY BANK Agents
are typically the owner of well-established
groceries, mini supermarkets, hardware, etc. As
at 31st December 2019, the network consisted
of 170 such MY BANK Agents. By embracing
the agency model, our aim is to serve our
customers better by bringing services closer to
:H3D\WKHYLUWXDOZDOOHWPRELOHDSSDVHFXUH WKHPDQGDOVRDOORZLQJWKHPWREHQHƪWIURP
cashless platform that allows customers to
extended banking hours, thus eliminating the
make payments without the need for cash or credit
card. hassle associated with visiting the branch.
67
INTELLECTUAL
CAPITAL
Since the inception, we have Brand Equity  Gold award for ‘Best Common ATM
Acquirer of the Year’ for recording the
worked hard to carve out Since the inception, we have worked hard to
highest acquiring volume growth per ATM
carve out a distinctly unique brand
a distinctly unique brand identity that resonates trust and leadership in comparison to the previous year
identity that resonates trust in Sri Lanka's banking industry and every  Gold award for ‘Best Bank for Retail
and leadership in Sri Lanka's activity we undertake is carefully orchestrated Payments’ in recognition of recording the
banking industry and every to convey this brand philosophy. We have highest number of interbank ‘JustPay’
pursued a robust growth strategy and sought
activity we undertake is to leverage on digital technology to earn the
issuer transactions during the year
carefully orchestrated customers' trust based on service quality

 Silver award for ‘Best Payment Application
of the Year,’ recording the highest number
to convey this brand and the differentiating experience we offer
of interbank transactions processed
philosophy. them. This strategy has served us well, as
through the Sampath Vishwa Retail
evinced by the numerous accolades that we
application
continue to receive. In 2019, the Bank was
awarded the National ICT (NBQSA) Award  Silver award for ‘Best Bank for Seamless
comprehensive view of our Management
Approach on Intellectual Capital 2019 in recognition of its outstanding product Back-end Operations’
www.sampath.lk and service offerings. Also in 2019 Sampath
Bank made history by clinching an impressive An independent brand study conducted in
8 awards at the LankaPay Technnovation 2019 by “Brand Finance Lanka” ranks Sampath
Intellectual Capital depicts the foundations on Awards. Sampath Bank was adjudged the ‘Most Bank as the strongest brand in the banking
which our business is built - our unique identity, Innovative Bank of the Year’ and the ‘Overall sector led by the highest customer equity,
our culture and core values, our systems and Winner for Excellence in Interbank Payments’ underscoring our relentless efforts to transform
processes as well as our willingness to invest (Banking Category) in addition to winning six banking with the use of digital technology.
in technology and pursue innovation to ensure coveted awards, including; The study further points out that Sampath
our business remains sustainable in the long
Bank’s brand value continues to grow as a
run.  Gold award for ‘Bank of the Year for result of a strong financial performance, which
Excellence in Customer Convenience’ in has consistently outperformed competitors.
Deepening our Intellectual Capital is therefore recognition of maintaining the highest Testifying to this, Sampath Bank was
a continuous and ongoing process which growth percentage (compared to the recognised as one of Sri Lanka’s 10 Most
is influenced by competitive pressures and previous year) for electronic fund transfers Admired Companies for the second
changes in the PESTLE (Political, Economic, via Sri Lanka Inter-bank Payment System consecutive year at the “Most Admired
Social, Technological, Legal/Regulatory and (SLIPS), Common Electronic Fund Transfer Companies of Sri Lanka 2019” awards. The
Environmental) landscape and how they affect System (CEFTS) and USD Online (for USD award is based not only financial performance
our business from time to time. payment transfers)
68
but also the brand's ability to command the programme which we had been working on Cost to Income
admiration of the nation based on the value since 2018, was fully completed with the entire %
created for stakeholders. Further the Bank customer on-boarding process including the
50
moved up to secure the 6th place in the LMD's KYC component which was migrated to the
Top 20 corporates and was ranked 5th among online platform and then rolled out across 40
Sri Lanka’s Best Performing Companies at the the branch network in mid-2019. Several
‘Business Today Top 30 Awards 2018 – 2019’. other back-end processes were also digitised 30
Meanwhile a recent survey and publication to improve the overall customer experience.
20
commissioned and conceptualised by LMD and These include; the FD issuance process, the
conducted by Nielsen found Sampath Bank to savings passbook and the loan disbursement 10
be among the Top 10 “Most Respected Entities at the Credit Control Processing Unit (CCPU).
47.8
42.3
35.9
36.9
in Sri Lanka” for the year 2019. Other notable Meanwhile as part of a broader effort to 0
2016 2017 2018 2019
achievements for 2019 included: the World increase efficiency and generate Bank-wide
Finance Banking Award, Brand Finance Most cost savings, we stepped up our process
Loved and Valued Award, BestWeb.lk Award for automation agenda to digitise a number Information Security
Most Popular Website (Banking and Finance of administrative processes. Accordingly,
sector) and two Silver Awards for “SLIM Service the voucher bundling mechanism at teller Digital technologies are fast evolving and it
Brand of the Year” and “CSR Brand of the counters, CRIB charge collection, generation is likely that the core functional areas of our
Year” at the prestigious SLIM Brand Excellence of the WHT certificates and the WHT refund business will soon depend solely on digital
Awards 2019. The winning streak continued mechanism were all automated in 2019. The technologies. However it is noteworthy that
at the National Business Excellence Awards meetings app was introduced in July 2019 to along with their numerous benefits, digital
2019, where Sampath Bank was adjudged the facilitate virtual meetings between corporate technologies will also bring in high risk due
winner in the Banking Sector and the winner management and branches, thus saving to cyber threats. To mitigate these threats,
in the "Excellence in the Corporate Governance time and cost of travel as well as improving we at Sampath bank take a holistic approach
category". efficiency and facilitating quick decision to ensure information security of the Bank.
making. To accomplish our main objective, we have
Technology and Innovation obtained the ISO 27001: 2013 (Information
Our approach to technology and innovation is Backed by the overall digitisation efforts, Security Management System) standards which
focused on three key areas; Sampath Bank's cost-to-income ratio has was re-certified for a further three-year period
shown healthier results in 2019 and 2018 from 2019 - 2022. Based on the work done for
Digitisation of workflow by registering 36.9% and 35.9% respectively, the most recent renewal cycle, we were able to
systems compared to 42.3% in 2017. obtain ISO Certification for selected number of
branches as well for the first time.
Since launching our digital transformation
strategy in 2015, we have been continuously
improving our technological platforms to make
them simple and agile, in order to help get our
products to our customers faster. At the same
time we have been using technology to simplify
our workflow systems to increase efficiency
and lower costs which will reinforce Sampath
Bank's competitive advantage. In 2018 we
achieved some key milestones by creating
digital interfaces to support the LC opening
process and the Credit Card application
process. Building on these initiatives, in 2019
we took steps towards digitising the Samachara
Senior Citizens loan product, which would
be the first traditional product to be offered Sampath Bank clinches 8 top awards at 'LankaPay Technnovation Awards 2019'.
digitally. The online customer on-boarding
69
INTELLECTUAL
CAPITAL
However with information security threats  Advance Web Application Firewall (WAF) As a leading bank in
becoming increasingly more sophisticated, installation
it was felt that a formal structured approach
Sri Lanka, ethics and
was necessary to effectively support the Bank’s
 Commissioning of a Global Server Load integrity is of paramount
Balancer to enhance availability
data assets. This led to the setting up of Bank’s important to us. Starting
Information Security Department (ISD) headed  Proxy Server and SSL implementation
with the way we conduct
by a newly-appointed “Chief Information
Security Officer” (CISO). Following the We believe employee and customer
business, which is by
appointment of the CISO, a new “Information awareness play a complementary role in our placing ethics ahead
Security Committee” (ISC) was established. information security management plan. In of results, we promote
2019, we launched an awareness campaign
The ISC is a management level committee ethical business practices
consisting of a cross functional team drawn on our websites and social media channels
from various disciplines across the Bank. As to educate our customers about cybercrime
in all aspects of our
per their terms of reference, the Information and advise them on the measures that they business operations.
Security Committee is required to discuss can take to protect themselves. Meanwhile to
operational and strategic matters relating to boil employee capacity we introduced several
information security and cybercrime, with e-learning modules on information security.
a quarterly report summarising key facts to signals that could indicate the likelihood of
be escalated to the “Board Integrated Risk default. Similarly an advanced cash forecasting
Data Analytics tool was commissioned to support the cash
Management Committee” (BIRMC). Also
under the purview of the Information Security management activities of the Central Cash
We readily acknowledge that as a bank, data Department.
Department, a new “Incident Response
is one of our key assets. However, raw data in
Team” (IRT) was set up to provide direction
itself has little value. To be meaningful, it has Ethics and Integrity GRI 102-16,17,26
and support to mitigate the risk and financial
to be put into context and to help us do that,
losses to the Bank due to possible information As a leading bank in Sri Lanka, ethics and
we have begun leveraging on the latest data
security incidents. integrity is of paramount important to us.
analytics tools and machine learning solutions.
Starting with the way we conduct business,
Taking the first tentative steps in 2019, we
Under the guidance of the CISO, an which is by placing ethics ahead of results, we
implemented AI-based predictive analytics as
Information Security Strategy was drawn promote ethical business practices in all aspects
part of our Recovery Management Programme.
up to prioritise the areas we intend to of our business operations and require that all
The tool was used to examine the behaviours
focus on over the three-year time horizon directors and employees conduct themselves in
of existing customers and detect early warning
from 2020 - 2022. To support this strategy,
we began work on developing a new data
classification framework. Taking the first
steps towards implementing the strategy, a
new “Privilege User Access Monitoring” (PAM)
mechanism was introduced for all critical
systems. In parallel we began conducting risk
based system audits covering branches and
departments periodically. We also sought the
assistance of an independent third party to
conduct Vulnerability Assessments and Web
Security Assessments on a quarterly basis to
identify and fix vulnerabilities, if there are any.
Meanwhile to ensure confidentiality, integrity
and availability of our information assets, we
took the following measures during the year.
Sampath Bank clinches Silver award for 'The Service Brand of the Year' at the prestigious SLIM Awards 2019.
70
transparent performance feedback and providing

suitable opportunities for each employee to
advance their career within the Bank.
At the same time, we advocate a culture which

prioritises the customer by understanding their
needs and expectations and ensuring we are
able to deliver fair outcomes across all stages
of the customer lifecycle. This means placing
the customer at the forefront of our strategy in
order to direct our focus towards designing and
developing responsible products and services
that are consistent with customer expectations.
In line with this approach, the existing Product
Sampath Bank clinches Silver award for 'The CSR Brand of the Year' at the prestigious SLIM Awards 2019. Policy was reviewed with several new changes
being made to bring greater clarity to the new
product development, product review and
a manner consistent with Sampath Bank's core managerial level branch staff. In parallel, a
product approval/termination processes. The
values. The Code of Conduct for all employees, special knowledge sharing session was held
new guidelines are accompanied by clear
the Code of Conduct for Key Management for Corporate Management and the Board
demarcation of roles and responsibilities in
Personnel (KMPs) and the Code of Conduct of Directors which included case studies
order to maintain more stringent control over
and Governance requirements for Board of highlighting the incidents and impact resulting
the release of new products and facilitate
Directors set the parameters for acceptable from non-compliance of these guidelines.
effective lifecycle management for existing
behaviour expected of Sampath Bank.
products. The customer complaint handling
We expect all employees to carry out their
protocol was also streamlined, with compliant
We remain firmly committed to comply with duties with honesty and integrity, ensuring
management being centralised under the
applicable laws and regulations including the best interests of the Bank. In this regard
purview of the Customer Care Centre (CCC)
new developments in the areas of anti-money we encourage them to use the Bank's
with effect from January 2019. Thereafter the
laundering, counter terrorist financing, Whistle-Blowing Procedure to report concerns
scope of the CCC was further expanded to
bribery and corruption. We have established regarding misconduct, unethical behaviour or
include proactive complaint analysis.
a comprehensive set of policies to reflect irregularities, including any violation of laws or
our commitment to combat financial crime. regulations, or internal policies, instructions or
These are reviewed regularly and updated guidelines.
as necessary and coupled with continuous
training to educate our employees. In 2019 Our ethics framework includes a high
a special training programme focusing on performance culture that drives employees to
anti-money laundering and counter terrorism take personal responsibility for becoming the very
financing regulations was conducted for best they can be. This is premised on honest and
71
HUMAN
CAPITAL
Our ability to remain Strategic Priorities Policy Framework

competitive in the long  Develop Employee Capabilities  Recruitment and Selection Policy
Enhance Employee Productivity Training and Development Policy
term will depend largely on  
 Strengthen Customer Orientation  Performance Management Policy

the strength of our Human  Build Employee Relations  Reward Management Policy
Capital. That is why we have  Promote Employee Engagement  Employee Relations Policy
made a firm commitment  Employee Transfer Policy
Industrial Relations Policy
to build a competent and a 
 Leave Administration Policy

reliable team who will drive  Employee Welfare Policy
the Bank forward regardless  Grievance Handling Policy
of external challenges.  Sports Policy

Approach on Human Capital
www.sampath.lk
We accept that as our operating environment

becomes increasingly more complex, our Overall Human
ability to remain competitive in the long term Human Capital Resources Policy
will depend largely on the strength of our Development  Provide the overall
Human Capital. That is why we have made Model direction for
a firm commitment to build a competent management of human
and a reliable team who will drive the Bank resources of the Bank
forward regardless of external challenges.
Given the scope and scale of our business, Material Topics
there are four (4) aspects that have material
 Talent Acquisition and Management
impact on the quality of our Human Capital;
 Training and Development
Talent Acquisition and Management, Training
 Employee Relations
and Development, Employee Relations and
 Employee Engagement
Employee Engagement. A comprehensive
policy framework is in place and serves as a
guideline for the management of each aspect.
72
ƶHSROLF\IUDPHZRUNWDNHVDQLQFOXVLYH To support this endeavour, we provide honest

approach based on the principle of diversity and transparent performance feedback, Key Highlights
to ensure we have the best mix of people at facilitate training and development needs y336 internal promotions to team
all levels. We provide our employees equal of each employee and provide continuous members
access to resources, opportunities and allow encouragement to enable them to advance y(ƩHFWLYHVXFFHVVLRQSODQQLQJZLWKRYHU
every employee to be part of the team and WKHLUFDUHHUZLWKLQWKH%DQN8OWLPDWHO\WKHVH RIYDFDQFLHVLQVHQLRUJUDGHVƪOOHG
contribute their best. To do so, we rely on a HƩRUWVVHHNWREXLOGDVROLG+XPDQ&DSLWDO internally
high performance driven culture, where we base that would give Sampath Bank the
y1:1 Backup Ratio for Key Managerial
expect every team member to take personal competitive edge and enable the Bank to grow
Positions
UHVSRQVLELOLW\WRDOLJQWKHLUFDUHHUREMHFWLYHV sustainably in the years ahead.
ZLWKWKDWRIWKH%DQN
VJURZWKWUDMHFWRU\ yRetention ratio of 98.0%
yZero industrial disputes
Developing Employee Capabilities

We continue to invest in our employees in order to develop their capabilities and build an agile workforce, to drive the Bank forward.
,QZHGUHZXS675,'(D\HDUDFWLRQSODQWKDWZRXOGXQGHUSLQRXUHƩRUWVWRGHYHORSHPSOR\HHFDSDELOLWLHVLQWDQGHPZLWKWKH%DQN
V
PHGLXPDQGORQJWHUPJURZWKREMHFWLYHV675,'(KDVHQDEOHGXVWRWDNHDKROLVWLFDSSURDFKEDVHGRQWKH%DQN
VFXUUHQWDQGIXWXUHQHHGV
Advocating Minimum Competency Standards
Initiative Outcome
%HQFKPDUNLQJ&RPSHWHQF\6WDQGDUGVDW2SHUDWLRQDO/HYHO3LORW3URMHFW Bank wide four (04) common behavioural

$VDƪUVWVWHSWRZDUGVHVWDEOLVKLQJPLQLPXPFRPSHWHQF\VWDQGDUGVIRURSHUDWLRQDOSRVLWLRQV FRPSHWHQFLHVZHUHLGHQWLƪHGEDVHG
based on current and future business requirements, we commenced a study in 2019 to on which a Behavioural Competency
determine the required technical and behavioural competencies for each functional area. Dictionary was developed.
%DVHGRQWKHVWXG\IRXUEHKDYLRXUDOFRPSHWHQFLHVZHUHLGHQWLƪHGUHOHYDQWWRWKHHQWLUH
Bank.
Supervisors of the relevant team members are required to rate the team members using a four
(04) level scale, in line with the behavioural examples given in the competency dictionary which
elaborates the behaviours of each competency level based on employee category.
Employees who fail to meet the minimum competency standards will be recommended for
LGHQWLƪHGWUDLQLQJƶHSURMHFWUHPDLQVLQSURJUHVVDVDWVW'HFHPEHU
Creating a Multi-disciplinary Workforce
Initiative Outcome
Multi-skilling Programme ƶH%%6IRUWKHRYHUDOOEUDQFKQHWZRUN

$QRQJRLQJLQLWLDWLYHWRLQFUHDVHWKHFURVVIXQFWLRQDOFRPSHWHQFLHVRIEUDQFKVWDƩ%%6%UDQFK improved to 2.68 in 2019 from 2.63 in
Bench Strength) is an internally developed index that measures the cross-functional abilities of 2018 and 2.58 in 2017.
EUDQFKVWDƩRQDVFDOHRIWRZLWKDVFRUHRILQGLFDWLQJDVWURQJHVWFURVVIXQFWLRQDOFDSDFLW\
ƶH%%6LVPHDVXUHGUHJXODUO\HYHU\RWKHUTXDUWHUWRLGHQWLI\DUHDVIRULPSURYHPHQWDQGWR
HQVXUHDGHTXDWHMREURWDWLRQ
,QDGGLWLRQMREURWDWLRQVQHZDVVLJQPHQWVZHUHFRQVLGHUHGIRUWHDPPHPEHUVLQVHQLRUJUDGHV 214 rotations in Executive grades and

LQ%UDQFK1HWZRUNDQG+HDG2ƬFH'HSDUWPHQWV DERYHZHUHHƩHFWHG
73
HUMAN
CAPITAL
Strengthening Support Networks
Initiative Outcome
Setting-up Sampath Training Team A total of 18 members of the Corporate

A new initiative aimed at sharing accumulated knowledge within the Bank, especially to increase Management and a further eight (8) from
the support offered to middle management and higher level employees. As part of the first phase the Senior Management were selected for
of the project, members of the corporate and senior management from various disciplines were the Sampath Training Team.
earmarked as Trainers. A series of train-the-trainer programmes were then rolled out to strengthen
their capacity as Trainers. (The programme remains in progress as at 31st December 2019).
Developing Leaders
Initiative Outcome
Sampath Leadership Academy (SLA) In 2019, a total of 833 team members were
An ongoing initiative aimed at strengthening the Bank's leadership pipeline, the SLA offers selected to attend leadership programmes.
leadership training opportunities to Junior, Middle, Executive, Senior and Corporate Management
members across the Bank to ensure that the Bank has leaders at all levels.
Executive Talent Development Programme (ETDP) In existence for the past five (05) years, the
A long standing initiative that provides an opportunity for employees from Senior Executive and ETDP has seen a total of 234 employees
above (up to Senior Manager level) to refine their leadership abilities. benefited from the initiative.
Enhancing Employee Productivity

We acknowledge that enhancing employee
productivity brings multiple benefits for the
Bank as well as employees. From the Bank's
perspective, it improves operational efficiency
and generates considerable cost savings.
For employees, it provides an opportunity to
access the benefits associated with improved
productivity such as performance based rewards
and career growth prospects etc.
Our productivity improvement programme for

2019 focused on seven key areas;
Mr Ajantha de Vas Gunasekara, the Group Chief Financial Officer of Sampath Bank, conducting a training for
Branch Managers as part of the Rapid Business Strategy (RBS) Programme.
High Performance-driven Culture
Initiative Outcome
Performance Based Bonus Scheme (PBBS) Employees were able to earn an average
The PBBS which was implemented in 2016 remains the key driver of our productivity of 3.5 months bonus in 2019 for 2018
performance in addition to customary
improvement programme. The PBBS works on a team based model that measures the
bonus.
performance of each branch/department against pre-agreed KPIs.
Digitisation
Initiative Outcome
Process Automation A total of 10 routine processes were automated

Having rolled out an ambitious digital strategy that aims to transform Sampath Bank into a in 2019. This has helped relieve our people
from performing mundane or repetitive tasks.
leading Digital Bank, many aspects of the Bank are now in the process of being redesigned
As a result, the employees made use of the
through digital technology with most of the manual processes being fully automated.
opportunity to explore more productive career
paths within the Bank in 2019.
74
Structural Improvements
Initiative Outcome
Restructuring Super Branches and Headquarters Branch A total of 118 employees were redeployed.
,QDQHƩRUWWRHQFRXUDJHPRUHFXVWRPHUVWRPLJUDWHWRGLJLWDOFKDQQHOVZHUHVWUXFWXUHGRXU ƶHEHQHƪWRIWKLVLQLWLDWLYHKDVFRQWULEXWHG
6XSHU%UDQFKRSHUDWLQJPRGHO1XPEHURIVWDƩURVWHUVZHUHUHGXFHGE\LPSURYLQJGLJLWDO towards a better work-life balance for super
infrastructure including self-service channels to serve customers 24/7. Headquarters Branch was branch employees.
also restructured introducing new digital channels.
6WDƩUHOHDVHGIURP6XSHU%UDQFKHVDQG+HDGTXDUWHUV%UDQFKZHUHWKHQIRUPHGLQWRD6SHFLDO
Task Force (STF) and trained as a dedicated unit to drive our branch support programme to assist
branches to develop their own digital customer base.
Increasing Branch Supervision ƶUHHQHZ=RQDO0DQDJHUVZHUH
ƶHH[LVWLQJEUDQFKPDQDJHPHQWVWUXFWXUHZDVUHYLVHGZLWKDPRUHVWULQJHQWRYHUVLJKWEHLQJ appointed during the year.
implemented in order to drive productivity improvement at a micro level.
Motivational Initiatives
Initiative Outcome
Salary Increment Salary increment of 10% was granted in

2019.
Housing Loans 588 new housing loans were granted in
2019.
Vehicle Loans 241 new vehicle loans were granted in
2019.
2QOLQH%HQHƪW$SSOLFDWLRQ)DFLOLW\ Since its introduction, an average of 487
$QRQOLQHEHQHƪWDSSOLFDWLRQIDFLOLW\ZDVLQWURGXFHGLQWRHQDEOHWHDPPHPEHUVVHUYLQJ RQOLQHEHQHƪWDSSOLFDWLRQVKDYHEHHQ
LQRXWVWDWLRQGLƬFXOWVWDWLRQEUDQFKHVWRDSSO\IRUWKHLUWUDYHOLQJDOORZDQFHRXWVWDWLRQGLƬFXOW processed per month.
station allowance and accommodation allowance etc. online.
Interactive Learning Tools

Initiative Outcome
/DXQFKRIQHZ/HDUQLQJ0DQDJHPHQW6\VWHP/06 ƶHXVDJHRIRQOLQHOHDUQLQJKDVFRQWLQXHG

ƶHPDLQDLPRIWKH/06LVWRHQFRXUDJHHPSOR\HHVWREHPRUHHQJDJHGLQOHDUQLQJ)ROORZLQJ to increase and recorded a 58% of total
its launch in May 2019, a series of basic learning modules were introduced through the LMS. training hours during 2019.
Presentations and handouts related to current training activities were also digitised and made
DYDLODEOHWKURXJKWKH/06$VSDUWRIWKHVHFRQGSKDVHRIWKHSURMHFWDQHZDSSEDVHGVROXWLRQLV
due to be rolled out to further strengthen this initiative.
Special Recognition
Initiative Outcome
6DPSDWK67$566SHFLDOƶDQNVDQG5HFRJQLWLRQ6FKHPH 76 team members who completed 25

A platform to recognise special talents and achievements of team members for Outstanding years’ service in the Bank during 2019
Business Performance, Outstanding Customer Service, Special Contributions/Achievements/ were felicitated with a memento and
Involvements, Professional/Academic Achievements, Sports and Related Achievements, Bank commemorative Gold Sovereigns on
wide Competitions and Long Service Awards. 01.01.2020.
In addition, another 132 team members

were recognised in February 2019 under
other categories.
75
HUMAN
CAPITAL
Special Assistance for Higher Education
Initiative Outcome
Investment in Training. Rs 55.7 Mn during the year 2019.

%DQNSURYLGHVIXOOVSRQVRUVKLSIRUEDQNLQJTXDOLƪFDWLRQV A total of Rs 21.7 Mn was paid during 2019
ƶH%DQNVSRQVRUVIRU0DVWHUV'HJUHHVDQGRWKHUSURIHVVLRQDOTXDOLƪFDWLRQVDFFHSWHGE\WKH for sponsorships for professional studies
Bank. and professional memberships.
In 2019, we launched the Rapid Business interest as well as to achieve corporate Investment in Training and
Strategy (RBS) programme, an ambitious REMHFWLYHV,QWKHLQWHUHVWRIGHYHORSLQJ Professional Studies
initiative to assist branch Network to achieve PXWXDOO\EHQHƪFLDOUHODWLRQVKLSVZLWK
business targets. RBS activities target Branch employees, the Bank’s leadership maintains Rs 77.4 Mn
1HWZRUNLQLWVHQWLUHW\DQGWKHƪUVWVHVVLRQ direct and frequent communication with SBEA.
of dynamic, action oriented RBS training was ƶHVHPHHWLQJVVHUYHDVDSODWIRUPWRGHYHORS
rolled out simultaneously across the entire positive and productive relationships. In 2019
branch network, in seven (7) locations and negotiations were conducted between the
saw the participation of 649 team members. Management and SBEA to revise the allowance Investment in
Training
In addition, there were several other training structure and as a result, the Management and
programmes conducted under RBS during the 6%($FDPHLQWRDQDJUHHPHQWWRHƩHFWWKH Rs 55.7 Mn
year. UHYLVHGDOORZDQFHVFKHPHHƩHFWLYHVW-DQXDU\ Investment in

Professional Studies
2020.
Strengthening Customer Orientation
Rs 21.7 Mn
Our customers are the reason we are in Being in business for the past 33 years, we have
business. Ensuring our people understand expanded our Employee Relations framework
WKLVDVSHFWLVYLWDOO\LPSRUWDQWƶDWLVZK\ and increased Employee Engagement activities
1,200 team members were trained in 2019 to in order to manage our multi-generational
workforce. Mechanisms such as the MD’s 'HSDUWPHQW4XL]FRPSHWLWLRQ&65SURMHFWV
strengthen customer orientation.
Desk communication initiative are used to Colours Nite, etc., are much looked forward
share vital information, business progress, events that have proven to be very successful in
Building Employee Relations and
convey the management expectations, while uniting the entire workforce under a common
Increasing Employee Engagement
MD’s Business Club is an internal blog that banner.
We readily acknowledge that Employee
serves as a platform to receive open feedback
Relations and Employee Engagement are
from team members. Similarly, our in-house ƶH+5'HSDUWPHQWSOD\VDNH\UROHLQ
both critical to the success of our business.
magazine "Sampath Sandeshaya”; is published maintaining employee relations. A key driver
Accordingly, we remain fully committed to build
quarterly to share the Bank’s clubs'/societies' in this regard is the department's HR Business
strong relationships with our people, based on
news and employees’ articles and contributions 3DUWQHULQLWLDWLYHODXQFKHGDIHZ\HDUVDJRƶH
trust and mutual respect and strive to maintain
showcasing their creative writing skills while main aim of the HR Business Partner Initiative
open and transparent communication and
extending the opportunity for the children of LVWRPDLQWDLQFORVHWLHVZLWKEUDQFKVWDƩDFURVV
promote regular engagement with our
employees to contribute. Sampath Bank's island-wide branch network.
employees.
In 2019, over 45% of the branches were visited
Team gatherings and constant under the HR Business Partner Initiative.
ƶH6DPSDWK%DQN(PSOR\HHV
$VVRFLDWLRQ
communications between management Meanwhile the HR Department's “Helping
(SBEA), which comprises over 98% of Team
and the team are some of the more formal Hands” counselling cell provides psychological
Sampath, is a key pillar of our employee
tools used in engaging the Bank's workforce, help to assist team members facing personal,
UHODWLRQVIUDPHZRUNDQGDPDMRUVWDNHKROGHULQ
while the "Yammer" social media platform family and work related challenges. In addition,
RXUEXVLQHVVƶH6%($HQJDJHVLQDOOFROOHFWLYH
launched in 2018 promote employee our 24/7 HR Hotline gives employees the
bargaining on behalf of its membership.
engagement in a more informal setting. Our opportunity to reach out to senior members
However, the need for a formal collective
$QQXDO$FWLYLW\&DOHQGDUDOVRSOD\VDPDMRU of HR Department and to obtain HR related
bargaining agreement has not arisen as both
UROHLQHQJDJLQJRXUZRUNIRUFHƶHDQQXDO assistance making HR 24/7 available for the
parties have continued working on the basis of
athletic championship meet, six-a-side cricket team.
mutual understanding to safeguard employee
tournament, Sampath Nite, Inter-Branch/
76
and further, a swimming membership was also

fully sponsored for the staff effective December
2019. We have also established the “Sampath
Emergency Notification System (SENS)” to
provide staff with information regarding
emergency rescue and relief services in the
event of a disaster.
In 2019, we undertook a series of Health

and Safety initiatives, key among them; the
Employee Health Survey which was aimed
at providing employees with individualised
medical reports with regard to their health.
We also tied up with a leading private hospital
chain to provide employees with annual
Awards Ceremony of 'Sampath Daru Daskam' and 'Rewards for Children' 2019.
health screening facilities sponsored by the
Bank. The Virtual Walk Challenge, a unique
Since 2017, the HR Department has also Retention Ratio competition was held with an intention of
encouraging employees to develop the habit
98 %
been involved in helping the Bank's transition
towards implementing a digital workplace. of exercising for the second consecutive year. A
Having rolled out an ambitious digital strategy total of 70 teams covering 350 team members
that aims to transform Sampath Bank into a participated with the top three winners being
leading Digital Bank, many of the Bank's core recognised and rewarded with cash prizes. At
processes are now being fully automated, the same time, we continued with all routine
causing repetitive/mundane job roles to 2017 & 18 health and safety programmes such as regular
become obsolete. In response, we have 98% first aid training, fire drill etc. The Bank also
adopted a broad based approach to help strengthened the security in the workplace
2015 & 16 making use of the new RFID enabled staff
employees cope with the change and to create
a productive and rewarding work environment 97% identity cards.
to ensure they remain committed to the
Bank's strategy. The HR Department works In order to strengthen employee relations
closely with business units to understand in a holistic manner, we have further
how new technology is changing the way they strengthened HR policies and procedures.
operate. These insights help to understand not only covers employees but their immediate The Grievance Handling Procedure provides
and plan for the potential impact as well as to family members as well. Furthermore, the appropriate solutions/feedback for grievances
respond to resistance. Regular and ongoing Bank provides Medical loans at concessionary of team members arising directly out of one’s
communications are a major part of this rates and has established a Cancer Fund and a employment. Further, the Whistle Blowing
agenda. A special team has been established Critical Illness Fund of Rs 25 Mn each to assist Policy serves as a channel to raise concerns
within the HR Department specifically to employees in times of need. Team members about possible frauds, improprieties in
manage such communications. These efforts are also covered under a Pension Scheme financial reporting, internal controls or other
are complemented by training, re-skilling and those who are not considered under this such matters, without fear of reprisal. The
and redeployment activities that aim to assist scheme were offered a Pension Insurance HR Policies are made available through the
employees to realign their personal goals with Scheme where the Bank provides a portion Bank's intranet and supported by regular
the Bank's long-term objectives. of the premium. The Bank provides a special communications.
Death Gratuity in the event of a death of a
Employee health and safety is seen as another team member and a Death Donation fund We have also put in place a range of initiatives
key area in managing our multi-generational is in place to provide financial assistance on to involve the families of team members. These
workforce. Employees are protected under demise of an employee or a member of their include Rewards for children of Team Sampath;
a personal accident cover providing 24/7 x immediate family including; parents, spouse, the Bank's annual rewards programme to
365-day coverage, while a comprehensive children and mother/father in-law. The Bank recognise children of employees who have
Medical Scheme covers out-patient treatments provided full sponsorship to obtain gym excelled in public examinations, sports etc.,
as well as hospitalisation costs. The scheme facilities for employees during the year 2019 and the "Daru Daskam" programme which is
77
HUMAN
CAPITAL
held every two years to provide an opportunity performance at competitive National Exams separate competitions; Art, Singing, Dancing,
for children of team members to showcase including the Year 5 Scholarship Examination, Instrumental and Speech in Sinhala, Tamil
their talents. In 2019 both initiatives were GCE Advanced Level Examination and other and English with winners being recognised
FRPELQHGLQWRRQHHYHQWƶHHYHQWZKLFK disciplines at National/International Level. under four (4) age groups; 4 - 6 years, 7 - 10
was held in October 2019 saw a total of 45 Meanwhile "Daru Daskam 2019" saw a years, 11 - 13 years and 14 - 17 years.
children being rewarded for their exceptional WRWDORIFKLOGUHQSDUWLFLSDWLQJLQƪYH
Human Capital
New Recruits 2019 Turnover 2019
GRI 401-1 GRI 401-1
New Recruits - Age Group and Gender Turnover - Age Group and Gender
Age Group Male Female Grand Total Age Group Male Female Grand Total
18-20 22 7 29 Above 55 1 - 1
21-30 56 44 100 51-55 13 12 25
31-40 1 1 2 41-50 6 5 11
41-50 2 - 2 31-40 26 26 52
Above 50 - - - 21-30 51 42 93
Grand Total 81 52 133 18-20 5 1 6
Percentage [%] 60.9 39.1 100 Grand Total 102 86 188
Percentage [%] 54.3 45.7 100
New Recruits - Province and Gender Turnover - Province and Gender

Province Male Female Grand Total Province Male Female Grand Total
Central - - - Central 2 5 7
Eastern 7 - 7 Eastern 5 3 8
North Central - - - North Central 1 1 2
North Western 2 - 2 North Western 2 1 3
Northern 2 - 2 Northern 5 1 6
Sabaragamuwa 3 - 3 Sabaragamuwa - 2 2
Southern 2 2 4 Southern 3 3 6
8YD 1 - 1 8YD 3 - 3
Western 64 50 114 Western 81 70 151
Grand Total 81 52 133 Grand Total 102 86 188
Percentage [%] 60.9 39.1 100 Percentage [%] 54.3 45.7 100
Employee Relations 2019

Return to Work and Retention Rates after Parental
0DWHUQLW\/HDYH GRI 401-3 Reasons for Turnover vs Gender
Description 2019 2018 Reason for Turnover Male Female Grand Total
Employees entitled to Maternity Leave 1,428 1,459 7R-RLQRWKHU&RPSHWLWRU

Employees obtained the Maternity Leave 101 119 Organisations 9 4 13
Employees returned to work after 7R-RLQ2WKHU2UJDQLVDWLRQV 16 10 26
Maternity Leave 100 118 Migration 33 29 62
Higher Studies 16 8 24
Employees still employed 12 months
Personal Reasons 6 17 23
after taking Maternity Leave 100 117
Retirement 13 13 26
Return to Work Rate [%] 99.0 99.2
Other 9 5 14
Retention Ratio [%] 99.0 98.3
Grand Total 102 86 188
Percentage [%] 54.3 45.7 100
78
Competency Area-wise Summary 2019

No. Competency Area Number of Training Hours
Participants
(1) Operations (Cash/Accounts Opening/Pawning/Cheques/Clearing/Credit Cards) 579 6,272

(2) Credit and Recoveries (Credit/Recovery/SME/Micro Finance) 1,521 13,562
(3) International Operations (Trade/Foreign Currency Operations) 99 684
(4) Risk and Compliance (AML) 293 2,694
(5) Finance and Accounting 224 2,088
(6) Marketing (Products/Branding) 241 1,286
(7) Human Resource Management 49 393
(8) Legal and Good Governance 43 292
(9) Other Technical Programmes (Treasury etc.) 350 3,709
(10) Orientation Programmes 859 11,760
(11) Customer Service Excellence and Selling Skills 51 296
(12) Leadership and Management (Competency Development Programmes/Strategic Management/Change Management) 833 7,644
(13) ,76NLOOV&RUH%DQNLQJ6\VWHP'LJLWDOLVDWLRQ3URMHFW0DQDJHPHQW(&RPPHUFHHWF 259 4,282
(14) &RPPXQLFDWLRQ6NLOOV%XVLQHVV:ULWLQJ(ƩHFWLYH&RPPXQLFDWLRQ 103 824
(15) Other Non-Technical Skills (Train the Trainer etc.) 265 2,619
Sub Total (excluding E-Learning and Other Online Solutions) 5.769 58,405
(16) E-Learning and Other Online Solutions (number of times participants logged into E-Learning applications) 42,687 80,444
Grand Total 48,456 138,849
Average Training Hours per Year, per Employee by Gender and Employee Category GRI 404-2,3
No. Competency Area Participants Training Hours (PSOR\HH&DWHJRU\3DUWLFLSDQWV

Management
Management
Management
Management
Management
Other Grades
Operational
Grand Total
Corporate
Executive
Female
Female
Middle
Senior
Junior
Male
Male
6WDƩ
(1) Operations (Cash/Accounts Opening/Pawning/
Cheques/Clearing/Credit cards) 359 220 3,889 2,383 1 3 7 32 76 459 1 579
(2) Credit and Recoveries (Credit/Recovery/SME/Micro
Finance) 1,080 441 9,629 3,933 7 120 302 432 182 478 - 1,521
(3) International Operations (Trade/Foreign Currency
Operations) 65 34 451 233 1 9 3 7 14 65 - 99
(4) Risk and Compliance (AML) 223 70 2,047 647 5 14 42 82 55 95 - 293
(5) Finance and Accounting 150 74 1,399 689 18 28 65 59 21 33 - 224
(6) Marketing (Products/Branding) 147 94 784 502 - - 7 83 55 96 - 241
(7) Human Resource Management 35 14 283 110 - 6 16 8 4 13 2 49
(8) Legal and Good Governance 28 15 193 99 1 4 8 20 4 6 - 43
(9) Other Technical Programmes (Treasury etc.) 256 95 2,708 1,001 15 36 42 68 67 110 12 350
(10) Orientation Programmes 524 335 7,174 4,586 - - - 28 223 596 12 859
(11) Customer Service Excellence and Selling Skills 34 17 198 98 - 1 - - - - 50 51
(12) Leadership and Management (Competency
Development Programmes/Strategic Management/
Change Management) 633 200 5,809 1,835 6 91 269 324 140 3 - 833
(13) ,76NLOOV&RUH%DQNLQJ6\VWHP'LJLWDOLVDWLRQ3URMHFW
Management/E-Commerce etc.) 171 88 2,826 1,456 3 18 22 66 76 74 - 259
(14) &RPPXQLFDWLRQ6NLOOV%XVLQHVV:ULWLQJ(ƩHFWLYH
Communication) 63 40 503 321 - - - 1 - 102 - 103
(15) Other Non-Technical Skills (Train the Trainer etc.) 188 77 1,859 760 20 41 17 20 18 105 44 265
(16) E-Learning and Other Online Solutions 29,027 13,660 54,702 25,742 427 2,561 5,976 8,964 6,830 17,075 854 42,687
Grand Total 32,983 15,473 94,455 44,394 504 2,932 6,776 10,194 7,765 19,310 975 48,456
All employees receive regular feedback on performance and career development and their level of performance is assessed on a regular basis.
79
HUMAN
CAPITAL
Average Training Hours GRI 404-1 Average Training Hours per Employee - Category-wise
Description 2019 2018 Employee Category Average Training
Hours per Employee
Average Training Hours per Employee 33.6 31.5
Average Training Hours per Female 31.1 29.1 Corporate Management 31.4
Average Training Hours per Male 34.9 32.7 Senior Management 32.3
Executive Management 28.0
Middle Management 20.2
-XQLRU0DQDJHPHQW 10.2
2SHUDWLRQDO6WDƩ 11.6
Other Grades 5.6
6DPSDWK%DQN%HQHƪW6WUXFWXUH GRI 401-2
Description Permanent Employees Contract Employees 'LƩHUHQWO\DEOHG(PSOR\HHV
3URƪW%RQXV Ơ Ơ Ơ
Salary Increment Ơ On renewal of agreement Ơ
Allowances (as applicable) Ơ Ơ Ơ
Reimbursement of Course Fees/Exam Fees Ơ - Ơ
Medical Facilities Ơ - Ơ
Holiday Bungalow Facilities Ơ Ơ Ơ
Special Non-technical Training Ơ Ơ Ơ
Special Programmes for Children of
Employees Ơ Ơ Ơ
Basic Salary and Remuneration Ratio by Gender and Employee Category GRI 405-2
Employee Category Male Female
Corporate Management 1.00 0.98

Senior Management 1.00 0.95
Executive Management 1.00 1.07
Middle Management 1.00 1.03
-XQLRU0DQDJHPHQW 1.00 1.00
2SHUDWLRQDO6WDƩ 1.00 1.07
ƶH%DQNKDVJLYHQDQHTXDORSSRUWXQLW\IRUDOOHPSOR\HHVDQGGRHVQRWWROHUDWHDQ\IRUPRIXQIDLUGLVFULPLQDWLRQRQWKHEDVLVRIUDFHJHQGHU
RUGLVDELOLW\ƶHUDWLRRIEDVLFVDODU\DWWKHHQWU\OHYHOIRUPDOHDQGIHPDOHLV+RZHYHUWKLVUDWLRPD\FKDQJHGXHWRGLƩHUHQWVHUYLFHSHULRGRI
employees in the Bank and elevation of the salary grade due to promotions.
GRI 405-1
Composition of Governance Bodies and Breakdown of Employees per Employee Category According to Gender, Age Group, Minority Group
Membership and Other Indicators of Diversity
Range Corporate Senior Executive Middle Junior Operational Other Grand
Management Management Management Management Management 6WDƩ Total
Female Male Female Male Female Male Female Male Female Male Female Male Female Male
18-20 - - - - - - - - - - 6 21 1 - 28
21-30 - - - - - - 1 6 9 17 421 1,202 45 11 1,712
31-40 - - 1 2 7 59 103 247 262 441 265 242 30 18 1,677
41-50 - 6 20 64 47 139 69 103 32 21 10 - 46 18 575
51-55 4 14 12 36 13 19 7 10 1 1 - - 16 7 140
Above 55 - 1 - 1 - - - - - - - - - - 2
Grand Total 4 21 33 103 67 217 180 366 304 480 702 1,465 138 54 4,134
Percentage [%] 16 84 24 76 24 76 33 67 39 61 32 68 72 28 -
80
Type of Employment GRI 102-8
Type of Employment 2019 2018

Female Male Grand Total Female Male Grand Total
Fixed Term Contract 48 25 73 40 27 67

Permanent 1,297 2,468 3,765 1,279 2,446 3,725
Probationers 22 16 38 31 28 59
Trainees 61 197 258 109 229 338
Grand Total 1,428 2,706 4,134 1,459 2,730 4,189
All categories indicated above are on full-time basis.
3URYLQFHZLVH6WDƩ$OORFDWLRQ GRI 102-8
Province 2019 2018

No. of Female Male Grand Total No. of Female Male Grand Total
Branches/ Branches/
Units Units
Central 23 79 189 268 23 85 188 273

Eastern 17 22 109 131 17 24 113 137
North Central 9 11 80 91 9 14 85 99
North Western 22 73 161 234 22 79 181 260
Northern 13 26 76 102 13 28 78 106
Sabaragamuwa 14 29 106 135 16 41 107 148
Southern 25 90 181 271 23 92 189 281
8YD 9 12 74 86 9 12 77 89
Western 158 1086 1729 2,815 154 1,084 1,711 2,795
Overseas Operations 1 - 1 1 1 - 1 1
Grand Total 291 1,428 2,706 4,134 287 1,459 2,730 4,189
Province-wise Employees by Type of Employment 2019 GRI 102-8
Province Fixed Term Permanent Probationers Trainees Grand Total

Contract
Central - 265 - 3 268
Eastern - 112 - 19 131
North Central - 84 - 7 91
North Western - 221 - 13 234
Northern - 96 - 6 102
Sabaragamuwa - 125 - 10 135
Southern - 257 2 12 271
8YD - 82 - 4 86
Western 73 2,522 36 184 2,815
Overseas Operations - 1 - - 1
Grand Total 73 3,765 38 258 4,134
81
SOCIAL AND
RELATIONSHIP CAPITAL
CUSTOMER
To serve our customers Technology and Innovation simply scanning the QR code assigned to the
merchant. WePay was launched in March 2019,
better by adapting to their We acknowledge that customer preferences
with over 200 merchants on-boarded as part
are unique and fast evolving and continue to
evolving needs, we now rely challenge conventional banking concepts. To of the initial effort. In 2019, we re-strengthened
on technology and innovation serve our customers better by adapting to their the agency banking model where a network of
over 170 "MY BANK agents" were appointed and
in order to transform our evolving needs, we now rely on technology and
innovation in order to transform our business granted the authority to perform routine banking
business holistically and services with the help of a POS terminal. The
holistically and to provide an unparalleled
to provide an unparalleled customer experience. POS terminal which is digitally connected to the
customer experience. Sampath Bank’s Core Banking System, enables
On the one hand, we are looking to the "MY BANK" agent to perform key banking
Scan this QR code for a more differentiate ourselves by using digital channels transactions. In this context, the agency banking
comprehensive view of our to deliver cheaper-better-faster products. model has several clear advantages; it helps us
Management Approach on to serve our customers better by bringing our
Social and Relationship Capital Our philosophy revolves around encouraging
www.sampath.lk customers to migrate to digital products banking services closer to them. It also allows
that provide quick and efficient solutions to them to benefit from extended hours and
optimise their banking experience. In this 365-day banking.
We believe the way we treat our customers regard, we continue to enhance our internet
is the key to building trust and earning their banking portal, “Sampath Vishwa” to give
respect. Through our commitment to customer both corporate and individual users a world
convenience, customer health and safety, class digital banking experience. Moreover
customer privacy, adherence to marketing and in the recent past, we have launched several
labelling regulations and effective compliant ground-breaking new products such as the
management, we are looking to reinforce the Digital loan, Sampath igift, Ustocktrade app,
promise of exceptional customer experiences all in the interest of customer convenience.
and project Sampath Bank as materially In 2019 we released the WePay mobile
different from other private banks on every wallet, another significant milestone which
front. Ultimately, our aim is to build lasting re-emphasises our commitment to customer
relationships that would support the Bank's convenience. Equipped with a seamless digital
Re-launching 'Sampath MY BANK' Agent
growth strategy in the years to come. interface the WePay mobile wallet allows
Banking Service.
users to conveniently make payments by
82
A reliable mechanism Technology remains a key catalyst in thereafter escalated to the relevant authorities
safeguarding the privacy of our customers’ for necessary action. Reporting frameworks
for customers to provide
information. In the past, we have invested were also further strengthened with a view to
their feedback is seen in state-of-the-art preventive controls and expediting routine complaint resolution and
as equally important to advanced early detection systems to safeguard minimise recurring issues.
against a potential cyber-attack. In 2019 we took
strengthening customer
some important steps to further strengthen 7RFRPSOHPHQWWKHVHHƩRUWVZHDUHLQYHVWLQJ
relations. Premised on this, our cybersecurity ecosystem in alignment heavily to imbue a customer centric mindset
we have established range with the latest international best practices, VSHFLƪFDOO\WRVWUHQJWKHQWKH%DQNZLGHVHUYLFH
of channels for customers to and have taken initiative to implement two FXOWXUHƶHVHHƩRUWVDUHFRYHUHGXQGHUWKH
PDMRUSURMHFWVFRPPLVVLRQLQJDQHZ6HFXULW\ Human Capital Section on pages 72 to 81 of
make a complaint or provide Operations Centre (SOC) and a Data Leakage this report.
feedback regarding our Prevention (DLP) System, both of which are
products or services. scheduled to be implemented in 2020. Continuous Improvement
Continuous improvement is at the core of our
For the convenience of our customers who (ƩHFWLYH&RPPXQLFDWLRQ PDQDJHPHQWVWUDWHJ\DQGUHƫHFWVRXUGHVLUH
do still visit the branch, we have invested in :HEHOLHYHHƩHFWLYHFRPPXQLFDWLRQLV to provide a world class customer experience.
creating a dedicated digital banking area at fundamental to gaining the customers trust. Each year we have progressively increased
HYHU\EUDQFKƶLVZDVGRQHDVSDUWRIDQ As such we ensure that our advertising and our investment to improve every aspect of
DJJUHVVLYHHƩRUWWRLQFUHDVHWKHQXPEHURI communication material is fully compliant our business model in order to become a
customers opting for digital solutions that are with all regulatory frameworks applicable to PRUHHƩHFWLYHDQGHƬFLHQWEDQNFDSDEOHRI
altogether more convenient, and easier to Licensed Commercial Banks in Sri Lanka. satisfying the evolving needs of our customers.
XVHƶHSURMHFWZDVLQLWLDWHGLQDQGZDV Moreover based on the principles of open and
followed by the launch of the Slip-less Banking proactive communication, we strive to provide In 2019 we initiated a product life cycle
App which was also made available in tablets our customers with additional information to PDSSLQJH[HUFLVHIRURXUH[LVWLQJSRUWIROLRƶLV
placed within these digital banking areas. help them make a more informed decision. was followed by a deep dive to understand the
0HDQZKLOHWRHQVXUHWKDWRXUFXVWRPHUVHQMR\ All promotional campaigns conducted in 2019 reasons for slow moving products and facilitate
VHDPOHVVEDQNLQJH[SHULHQFHDWWKHGLƩHUHQW were developed on this basis. corrective action to address pain points within
touch points, we continued with ongoing RXURSHUDWLRQV%DVHGRQWKHƪQGLQJVVRIDU
improvements to the ATM and Cash Deposit Promoting customer engagement is another we made changes to the Sampath Ladies
0DFKLQH&'0QHWZRUNVƶHPDLQDLPKHUH key element of our communication strategy. 1st Account, where the accounts opening
is to give our customers the opportunity to Since 2016 we have been quite aggressive in SURFHVVZDVVLPSOLƪHGƶHVWDQGDUG1RQ
do most of their banking remotely at their growing our social media presence and have Resident Foreign Currency (NRFC) account
convenience, which we hope will spearhead also invested heavily in more interactive tools was revamped and relaunched as the Personal
WKHLUMRXUQH\WRZDUGVRQOLQHEDQNLQJLQWKH such as the Chatbot, etc., all with the intention Foreign Currency (PFC) account equipped
future. of encouraging our customers to interact with with a range of value additions, while the
us more freely and regularly. In 2019 we rolled EXPAT account for migrant workers was also
Increasingly we have been using technology to out a series of focused interactive social-media UHHQJLQHHUHG)RUWKHƪUVWWLPHLQWKHKLVWRU\
simplify our processes in a bid to enhance the campaigns to drive engagement among of the Sri Lankan banking industry, Sampath
customer experience. Building on the initiatives VSHFLƪFFXVWRPHUVHJPHQWV )RUHLJQ&XUUHQF\3ULPH$FFRXQWRƩHUVDQ
undertaken over the past few years, customer DGGLWLRQDOERQXVLQWHUHVWRQ86'ROODUVDYLQJV
on-boarding including the KYC component A reliable mechanism for customers to provide
was migrated to the online platform and rolled their feedback is seen as equally important to As outlined above and in the Intellectual
out across the branch network in mid-2019. strengthening customer relations. Premised Capital, Manufactured Capital and Natural
By end-2019, the FD issuance process and on this, we have established range of channels Capital Reports on pages 68 - 71, 64 - 67 and
the loan disbursement at the Central Credit for customers to make a complaint or provide 92 - 97 respectively, we continue to take action
3URFHVVLQJ8QLW&&38ZDVFRPSOHWHO\ feedback regarding our products or services. In to improve our internal systems architecture,
digitised, while the File Net System was further 2019 the complaint management procedure policy structure and procedural frameworks
enhanced to enable LC amendments to be was streamlined to ensure all complaints are in order to be able to give our customers an
PDGHRQOLQHWKURXJK6DPSDWK9LVKZDƶHVH directed to the Customer Care Centre (CCC) for unparalleled banking experience.
HƩRUWVKDYHQRWRQO\HQDEOHGDVHDPOHVV further analysis under three main headings;
customer experience but also helped improve VHUYLFHHƬFLHQF\VWDƩUHODWHGDQGIDFLOLWLHV
WXUQDURXQGWLPHVE\DVLJQLƪFDQWPDUJLQ
83
SOCIAL AND
GRI 413-1/203-1,2
COMMUNITY
As part of our socially Aiming to make a meaningful and measurable $VWKHƪUVWVWHSZHPHDVXUHWKHVXFFHVVRIRXU
impact in the lives of economically and SURMHFWVWKURXJKDWKUHHGLPHQVLRQDOLPSDFW
responsible CSR model, socially challenged communities across the assessment.
we continue to review and country, the Bank has declared Community
y Transformation -ZKHUHEHQHƪFLDULHV
UHƪQHWKHZRUNZHGRWR Empowerment as one of its key strategic
have experienced a profound change in
ensure its relevance in the priorities.
WKHLUOLYHVGXHWRWKHSURMHFW
current socio-economic To catalyse our commitment and channel y Improvement - ZKHUHEHQHƪFLDULHVKDYH
context of our country. RXUUHVRXUFHVHƩHFWLYHO\LQRUGHUWRDFKLHYH experienced an improvement in their
our community goals, we have adopted a personal family status
Scan this QR code for a more socially responsible CSR model driven by three
comprehensive view of our
y Access -ZKHUHEHQHƪFLDULHVKDYHOHDUQW
key pillars; Entrepreneurship Development,
Management Approach on about facilities that they were previously
Social and Relationship Capital Community Capacity Building and Education
unaware of
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of these three pillars are designed to tackle
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Sampath Bank is committed to being an active grass root level issues that have persisted
to ensure Sampath Bank makes a more
and supportive member of the community through time. Moreover as part of our socially
LPSDFWIXOFRQWULEXWLRQWRWKH816XVWDLQDELOLW\
and in doing so we strive to ensure that our responsible CSR model, we continue to
Development Goals (SDGs) framed under the
investments are generating sustainable UHYLHZDQGUHƪQHWKHZRUNZHGRWRHQVXUH
8QLWHG1DWLRQV$JHQGDIRU6XVWDLQDEOH
EHQHƪWVIRUWKHFRPPXQLW\DWODUJH its relevance in the current socio-economic
Development.
context of our country.
Supporting the development of

the MSME sector
Community Education
Capacity Building for All
Improving the productivity of
grass root level organic farmers
'Hope for a Life' - Improving

national healthcare standards
Socially Serve for

Support for education Sustainable
Responsible Development
CSR Model Goals
Special assistance to war
widows
Developing youth entrepreneurs
Seeking partnerships Entrepreneurship

that promote sustainable
Development
development
84
Empower Being a strong advocate for both

entrepreneurs entrepreneurship and innovation,
Total investment for
to facilitate their our Entrepreneurship Development
2019: Rs 6.5 Mn
development programmes aim to empower people
Entrepreneurship
through business
Development to ensure they become the architects of
know-how and
Employee their own future.
financial assistance
Engagement: 179
'Sampath Saviya' SME Business Forum - Strengthen Sri Lanka's SME sector
Direct Outcome Broader Impact
The second edition of the 'Sampath Saviya' SME A total of 182 SMEs benefited  Increasing the contribution of SMEs to the country's GDP
Business Forum was held in Kandy in July 2019. from the programme
 Creating a robust business environment to support the growth
More advanced than the programme held in
of provincial economies around the country
2018, the 2019 forum comprised four distinct
sessions; leadership development, sales tactics,
psychological approaches and marketing which
was followed by an extensive panel discussion
where participants were able to clarify their
doubts and questions on developing their
businesses and starting their own businesses.
'Sampath Saviya' Women Entrepreneurship Programme - Special assistance to war widows
Direct Outcome
Reflecting the ongoing effort to promote greater financial inclusion in Sri Lanka, in 2019 the Bank A total of 40 participants benefited from the
held a special 'Sampath Saviya' programme for women entrepreneurs at Sri Lanka Sinha Regiment programme
Army Camp Ambepussa. Conducted in partnership with Sri Lanka Sinha Regiment Seva Vanitha Unit,
the programme was designed to encourage entrepreneurism among war widows. The programme
content was structured with special emphasis on following areas;
1. Inspiring to achieve life goals

2. Identify and manage own strengths and weaknesses
3. Meet challenges and grab opportunities
4. Improving leadership qualities
5. Starting an own business
85
SOCIAL AND
COMMUNITY
'Sampath Saviya' Youth Empowerment Programme - Developing youth entrepreneurs

Held in partnership with National A total of 250 participants  Developing the start-up mindset among the youth community
Chamber of Commerce and YouLead, this benefited from the programme  Reducing unemployment among the youth population
programme seeks to put Sri Lanka’s youth
on the road towards establishing their
own businesses. This specially curated
session was designed to guide participants
regarding the best approach to balance
quality and productivity with profitability
and positive returns. The session included
a psychometric test to identify participants’
career personalities based on their skills
and preferences.
'Sampath Saviya' Business Planning Sessions for Export-ready Customers - Developing Sri Lanka's export sector
Sampath Bank partnered with Sri Lanka A total of 109 participants  Increasing the contribution of MSMEs to the country's export sector
Export Development Board (EDB) to benefited from the programmes  Improving the rural economy of the Southern, Sabaragamuwa and
conduct two-day business planning North Central provinces
workshops for export-ready entrepreneurs
 Reducing national unemployment
registered with the EDB was held in
Matara, Anuradhapura, Ratnapura and
Colombo districts. Covering key areas of
business planning including financial,
marketing and operational aspects,
the sessions were aimed at assisting
export ready businesses to move to their
operation to the next level.
'Sampath Saviya' Entrepreneurship Workshops for Students of Technical Colleges -

Promoting entrepreneurship as a sustainable solution to reduce unemployment

Sampath Bank partnered with Department A total of 487 students Supporting the national vocational training agenda
of Technical Education and Training to benefited from the programmes
develop entrepreneurship skills of students
attached to technical colleges. A total of 05
such sessions were held at the technical
colleges of Kurunegala, Matara, Beliatta,
Polonnaruwa and Kegalle.
86
SME Trade Workshops - Strengthen Sri Lanka's SME sector

An ongoing initiative by the Bank's A total of 140 SMEs benefited  Increasing the contribution of SMEs to the country's GDP
Trade Services Department, SME Trade from the 02 programmes  Creating a robust business environment to support the growth of
Workshops are designed to give SMEs the provincial economies around the country
opportunity to liaise with representatives
 Reducing national unemployment
from all major trade-related regulatory
bodies such as the Export Development
Board, Sri Lanka Customs, the Department
of Inland Revenue, etc.
GRI 413-1/203-1,2
Address grass root level By investing in Community Capacity

issues by providing Building, we are looking to make a
basic infrastructure or definite contribution towards the
2019: Rs 2.4 Mn
necessities to enable prosperity of our nation.
Community
Capacity the community to
Building improve livelihoods
and living standards Employee
Engagement: 144
'Wayamba Isuru' Farmers' Market - Improving the productivity of grass root level organic farmers and ensuring the food security of the general public

The empowering project on 'Wayamba Isuru'  Developed 69 organic  Enhancing the local economy of the North Western Province
Farmers' Market was commenced as a follow farmers
 Improving the quality of life of farming communities in the
up to the capacity building programmes for
 Over 3,000 families are North Western Province
organic farmers held in 2018. A collaborative
directly benefited
effort between Sampath Bank and the  Supporting sustainable agriculture
Provincial Department of Agriculture - North
 Ensuring long-term food security
Western Province, the project aims to develop
the organic farming community in Sri Lanka as
a sustainable solution to the challenge of food
security in the country. The market is opened to
public every Wednesday and Saturday from
5.30 a.m. at the Provincial Department of
Agriculture at Dambulla Road, Kurunegala.
Given the success achieved through this effort,
the Bank signed a MOU with the Provincial
Department of Agriculture - North Western
Province, signalling the beginning of a series of
agricultural initiatives that aim to promote more 'Wayamba Isuru' Saturday Market. Social media campaign on 'Wayamba Isuru'
Programme.
sustainable organic farming at grass root level.
87
SOCIAL AND
COMMUNITY
'Hope for a Life' - Improving national healthcare standards
Broader Impact
An ongoing CSR initiative by Sampath Bank to improve standards of Aligning the country's healthcare services in line with international
national healthcare sector in Sri Lanka. The following initiatives were benchmarks
undertaken in 2019 as part of the 'Hope for a Life' project:
1. Endowment of antimicrobial patient separation curtains to the

Surgical Intensive Care Unit of the Colombo North Teaching Hospital,
Ragama. These curtains provide a sterile environment to safeguard
post-surgery patients against microbe attacks.
2. Fixing of trilingual direction and signage boards at General Hospital,

Bibile.
3. Fixing of a shelter at the patients' waiting area of Base Hospital,

Eheliyagoda.
Surgical Intensive Care Unit, Colombo North Teaching Hospital, Ragama.
GRI 413-1/203-1,2
Dissemination of We believe that access to a quality

knowledge and education will create the foundation
information at grass root for tangible socioeconomic progress
2019: Rs 79 Mn
level in order to reduce at a national level.
Education social and economic
for all inequalities and bridge
the poverty gap Employee
Engagement: 221
Grade 5 Scholarship Support Programme - Assist Grade 5 students to face their first public examination with confidence
Sampath Bank's long-standing Year 5 A large proportion of the Laying the foundation for a solid primary education in order to
scholarship support programme was population receiving access increase the percentage of students pursuing higher education
extended to a national radio in 2019, in to much-needed educational
partnership with Neth FM to enable a support
wider student audience to benefit from
the initiative. The special segment, which
offers a synopsis of the seminar series was
first aired on Neth FM on 2nd June 2019
and thereafter every Sunday from
5.00 p.m. to 6.00 p.m.
Press Campaign - Grade 5 Scholarship Support Programme.
88
'Soar Above The Rest, Intern With The Best' - Internship Programme for School Leavers and Undergraduates - Support for career development

Sampath Bank's ongoing internship A total of 1,351 school leavers  Inculcating a professional work ethics among youth
programme offers school leavers and and undergraduates were given

 Building a more disciplined work culture within the country
undergraduates the opportunity to gain internship opportunities in 2019
experience in various areas of the Bank
over a 11-month period.
'Sampath Daham Thilina' Programme - Supporting a broader educational curriculum

'Sampath Daham Thilina' is an ongoing A total of 9,250 students were Promotes good values that will lead to a disciplined society
initiative by Sampath Bank to recognise rewarded in 2019
the winners of the Dhamma School
Competitions held across the country. The
Daham Thilina initiative was first launched
by the Bank in 2000 and has since been
rewarding students excelling at circuit level.
In 2009, the programme was extended
to recognize high performers at the All
Island Dhamma School Competitions as
well. Currently the programme recognizes
winners both at a circuit level as well as
Mr Nanda Fernando, Managing Director, Sampath Bank PLC, handing
achievers at a national level. over the gift vouchers to Ms H N Kumari, Commissioner of Buddhist Affairs
(Dhamma School).
Bridging the Gap between Academia and Industry through Strategic Public-Private Partnerships (PPPs) - Phase 2 - Raising the standards of tertiary
education
Broader Impact
Phase 2 of the Bank's ongoing efforts to raise the standards of tertiary Enhancing the knowledge-based resources in the country's financial
education saw Sampath Bank sign an MOU with the Faculty of services industry
Management Studies of Rajarata University of Sri Lanka. This five year
long partnership creates a two-way knowledge sharing platform which
gives Sampath Bank access to the University's R & D and training tools
in the areas of Banking and Finance, while university students will have
access to internship opportunities in the Bank. This is the second such
PPP, the first being the MOU signed with the Faculty of Graduate Studies,
University of Sri Jayewardenepura in 2018.
Dr B A Karunaratne, Vice Chancellor, Rajarata University of Sri Lanka,

handing over the MOU to Dr Lalith Weragoda, former Assistant General
Manager - Human Resources, Sampath Bank PLC.
89
SOCIAL AND
COMMUNITY
Case Study - Special Entrepreneurship Our Response
Development Programme Series for
As a Bank, we believe that we can play
Pensioners
an important role in preventing retirees
The Challenge from becoming an economic burden to
Sri Lanka is among the growing number of the country. Taking steps to extend our
Asian nations facing the issue of an ageing flagship entrepreneur development initiative
population where the percentage of the aged 'Sampath Saviya', we launched a Special
is projected to double in the next twenty Entrepreneurship Development programme
years. Moreover given the current retirement series for pensioners. The inaugural
age of 55 years, it is likely that retirees will on programme was held in Giriulla in November Workshop for Pensioners at Giriulla.
average spend 22 years in retirement and 2019 for a group of 30 pensioners in the area.
very few retirees likely to seek post-retirement Our aim was to educate them on how they can
employment, Sri Lanka faces serious further supplement their income to support
socio-economic consequences that will place a themselves financially and thereby reduce the
severe burden on the country's resources in the economic burden on their family.
long term.
Conducted by Sampath Bank officers, the
session focused on:
1. Inculcating the entrepreneur mindset

among the target group
Workshop for Air Force Personnel at Anuradhapura.
2. Providing guidance to encourage retirees to
engage in economically productive activity
A similar programme was held for 66 Air Force

personnel nearing the retirement age. This
programme too was conducted by Sampath
Bank officers and was held at the Sri Lanka Air
Force Base Anuradhapura in December 2019.
90
SOCIAL AND
SUPPLIER
We have always More recently we have also begun extending and as well as to promote the savings culture
our efforts to promote greater financial among SMEs. At the same time, we continued
encouraged our suppliers inclusion particularly among our small scale to encourage our small scale suppliers to
to continuously collaborate local suppliers. In 2019 we revised our supplier participate in our flagship "Sampath Saviya"
on improvements. In registration guidelines and made it mandatory entrepreneur development workshops to
2019, we focused on that all potential suppliers have a Sampath receive business advice and thereby gain
Bank account in order to receive dues owed access to financial assistance to help them
integrating environmental to them by the Bank. This also ties in with our scale up their business operations.
and social criteria into our commitment to support a cashless society
initial supplier screening
procedure, which we see as
a crucial first step towards Success Story
on-boarding our suppliers

to Sampath Bank's climate
action initiatives.
comprehensive view of our
Management Approach on
Social and Relationship Capital
www.sampath.lk
Our supply chain consists mainly of suppliers

providing IT hardware, office supplies, services
including telecommunications, security
and janitorial as well as other non-specific
maintenance services. We realise that each
and every one of these suppliers play a unique
and important role in our ability to create
sustainable value over time. That is why we "I first started my furniture business in 1974. For many years I continued my business in a
remain committed to work with our suppliers small way. Then in 1989 I got the opportunity to work for Sampath Bank where I undertook
and strive to maintain active communication the partitioning work and supply the office furniture for the new Sampath Bank branch that
with all suppliers in order to build long lasting was being opened up in March 1987. Since then I have supplied furniture for another 127
relationships that will result in mutual benefit new branches opened by the Bank. Today Sampath Bank is one of my main customers.
and minimise a possible breakdown of our
supply chain. In addition to receiving their business, I have also benefited from very good credit terms
offered by the Bank, which has helped me to expand my operations and grow my business
Supplier Development beyond all my expectations. I am deeply grateful for the opportunity to work with Sampath
Our supplier development activities focus on Bank and look forward to continue our relationship in the future as well".
maturing our suppliers and service providers
to ensure they are able to grow with the Bank. K A B Fernando
We have always encouraged our suppliers to K A B Fernando Furnishers and Decorators
continuously collaborate on improvements. In Ratmalana
2019, we focused on integrating environmental
and social criteria into our initial supplier
screening procedure, which we see as a crucial
first step towards on-boarding our suppliers to
Sampath Bank's climate action initiatives.
91
NATURAL
CAPITAL
Sampath Bank
To support the global fight GRI 102-29,31
Environment and Social Management System (ESMS)
against climate change,
we take environmental
impacts into account when
conducting our business.
Direct Indirect Direct/Indirect Broader
Impact Impact Impact Impact
Approach on Natural Capital Reduce the Bank's Implement Enlist the support Contribute
www.sampath.lk environmental international of stakeholders towards national
footprint by best practices in the Bank's environmental
integrating to help mitigate environmental conservation
As a bank, the impact on the environment
environmental environmental and initiatives and protection
caused by Sampath Bank’s operations is
concerns into social risks arising initiatives
negligible. Regardless, we remain committed
day-to-day from financing
to manage even the smallest environment
activities activities
impact arising as a result of our operations, for
we believe it is key to ensuring our business
is truly sustainable. As such, Environmental
Management is deemed a material topic of
consideration for Sampath Bank. Spearheading
our journey towards becoming a truly
Resource Responsible Green Products Special
sustainable bank is our Environmental and Efficiency Lending and Services Projects
Social Management System (ESMS).
The success of the ESMS is supported by a

strong implementation framework that defines
clear lines of accountability accompanied
by specific goals to manage the Bank’s
environmental performance and drive
continuous improvement.
92
5HVRXUFH(ƬFLHQF\
Energy Management Solar Power Generation at Branches 2019
:HEHOLHYHUHVRXUFHHƬFLHQF\LVDNH\HQDEOHU
that allows the Bank to grow sustainably Branch System Saving
QRZDQGLQWKHIXWXUHIRUWKHHƬFLHQWXVHRI To position itself as a responsible energy Capacity N:K
UHVRXUFHVEULQJVPXOWLSOHEHQHƪWVLWORZHUV PDQDJHU6DPSDWK%DQNKDVUHPDLQHGƪUPO\ N:
the Bank’s environmental footprint, generates FRPPLWWHGWRSURPRWHHQHUJ\HƬFLHQF\
Colombo Super 35.0 45,781.4
cost saving that will give Sampath Bank a and reduce the use of energy at all levels of
Kalutara 32.0 42,836.6
competitive edge while also helping to address the Bank. Electricity is the primary source of
Negombo 42.2 54,012.4
the wider challenges arising as a result of energy and our consumption has been on Narahenpita 28.0 17,705.3
climate change. the rise over the years, in direct correlation Wellawatte Super 30.5 21,600.0
with our business. In response, we have been Piliyandala 39.4 Ongoing
Our main aim is to reform our bank-wide UHYLVLWLQJWKHZD\ZHZRUNDQGUHƪQLQJRXU Tissamaharama 20.0 Ongoing
operational architecture to drive resource procedures, while investing heavily in energy Anuradhapura
HƬFLHQF\WKURXJKZKLFKZHKRSHWRUDLVH HƬFLHQWWHFKQRORJ\7RGD\RYHURIWKH Super 36.5 Ongoing
the bar for the entire industry over the long branch network is equipped with power saving
term. From recycling programmes to energy LED lighting and planned to be implemented
conservation at branches, we are looking to among all branch network by next year. In year FRPSOHWHƪIWHHQEUDQFKHVE\HQGRI\HDU
change the way we think and act every day. ZHEHJDQDQDPELWLRXVSURMHFWWRFRQYHUW More recently, we have taken steps to install
Guided by our ESMS we have prioritised six our branch network to run on solar power and UHƫHFWLYHJODVVSDQHOVIRUDOOQHZO\UHIXUELVKHG
actionable areas; invested more than Rs 36 Mn during the year branch exteriors in order to minimise heat
E\FRPSOHWLQJƪYHEUDQFKHVDQGSODQWR transfer.
GRI 302-1,2,3,4
Energy Consumption
6RXUFHV5HQHZDEOH 1RQ5HQHZDEOH
Energy Water Electricity Heating Cooling Steam Solar Power
Management Management
Consumption 3,269,475 kWh
+HDG2ƬFH No No No No
Sold No No No No No
Reductions/ 246,487 kWh
Savings +HDG2ƬFH - - - 181,936 kWh
8VLQJDQ\VWDQGDUGVPHWKRGRORJ\DQGDVVXPSWLRQVXVHG 1R
Emission Awareness and
Control Training 8VLQJDQ\FRQYHUVLRQUDWHV 1R
Energy used outside of the organisation : No
2019
(QHUJ\,QWHQVLW\5DWLR+HDG2ƬFH(OHFWULFLW\FRQVXPSWLRQ
per employee per annum 2,667 kWh
Waste Strategic
Management Partnerships
93
NATURAL
CAPITAL
GRI 305-1,2,3,4,5,7
Carbon Footprint Calculation
Emission Control
$VVHVVPHQW7\SH Organisational Greenhouse Gas Assessment
Since 2013, Sampath Bank has undertaken to
$SSOLHG6WDQGDUGV ISO 14064 -1:2006
measure its carbon emissions in line with the
guidelines set out under the Greenhouse Gas Fifth assessment report (5AR) of IPCC,2006
(GHG) protocol. Quantifying the Bank's direct ƶH*UHHQKRXVH A Corporate Accounting and
and indirect impact on the environment in Gas Protocol Reporting Standard (revised edition), WRI/WBCSD
this manner is considered an important step
5HSRUWLQJ3HULRG 01.01.2019 – 31.12.2019
in taking ownership for our carbon footprint
%DVH<HDU 2018
DQGPRYLQJIRUZDUGWRZDUGVUHFRQƪUPLQJ
Sampath Bank’s carbon neutral status. Having
ƪUVWVWDUWHGRXWPHDVXULQJHPLVVLRQDWWKH Scope *+*(PLVVLRQVW&22HLQ
+HDG2ƬFHRQO\WKHSURFHVVZDVH[SDQGHGLQ
Total CO2 N 2O CH4
2017 to cover all 229 Sampath Bank branches
Emissions
as well. Accordingly, as per the GHG protocol
guidelines, we calculate and report on the Direct GHG Emissions (Scope 1) 344 343 1 -
annual basis, Scope 1 (Direct emissions) and Indirect GHG Emissions (Scope 2) 6,234 6,234 - -
Scope 2 & 3 (Indirect emissions) at our Head
Other Indirect GHG Emissions (Scope 3) 4,479 4,438 32 9
2ƬFHDQGDOOEUDQFKHVƶHHQWLUHFDUERQ
Total GHG Emissions 11,057 11,015 33 9
footprint calculation process is outsourced
GHG Emission per Employee 2.7
to RR Associates (Pvt) Ltd., an environment
services related consultancy body. 2019 2018 Reduction
Total GHG Emissions (tCO2e) 11,057 11,261 204
GRI 306-2
manual mandates and supporting documents ƶH0HHWLQJV$SSZDVLQWURGXFHGLQ-XO\

Waste Management for personal accounts and implemented to facilitate virtual meetings between corporate
the “FileNet” document transfer system to management and branches, resulting in a
Given our rapid business expansion over the allow valuation approvals, LC application and notable reduction in the volume of paper used
past decade or so, waste management, in approvals, etc. to be done online. at meetings.
particular paper and e-waste have emerged as
VLJQLƪFDQWDUHDVRIFRQFHUQ+RZHYHULQUHFHQW Savings From
times we have made considerable progress in
reducing the use of paper thanks to increased
process automation and other paperless Waste Paper Digital Products
initiatives implemented under our ongoing Paper Recycling Slip-less Banking Cash Deposit Machines
digital transformation strategy. For example,
following the launch of the Slip-less 899 Trees 129 Trees 321 Trees
banking app and the expansion of Cash
Deposit Machines network, we have seen
Oil 92,829 Litres Oil 13,329 Litres Oil 33,166 Litres
a 70% considerable reduction in the use
RISDSHUIRUPVIRUƪQDQFLDOWUDQVDFWLRQVLQ
Electricity 211,576 kWh Electricity 30,380 kWh Electricity 75,592 kWh
2019, which was one of the key contributors
to our environmental footprint. In 2019, we
Water 1,680,971 Litres Water 241,369 Litres Water 600,578 Litres
PDGHIXUWKHUSURJUHVVLQRXUMRXUQH\WRZDUGV
becoming a paperless bank. We digitised
voucher bundling register, launched the /DQGƪOOP3 /DQGƪOOP3 /DQGƪOOP3
e-Mandate initiative to prevent the retention of Reduce GHG emission by Reduce GHG emission by Reduce GHG emission by
52,894 kg of carbon equivalent 7,595 kg of carbon equivalent 18,898 kg of carbon equivalent
94
Water Discharge GRI 306-1
Water Management
2019 2018
Water usage at the Bank is minimal, as it Water discharged (Head Office) 38,844 m3 41,144 m3
is typically needed for utility and sanitary Water source Municipal Water Supply
2,300 m3
UHTXLUHPHQWRIWKHVWDƩ1RQHWKHOHVVZHKDYH
UHPDLQHGSURDFWLYHLQRXUHƩRUWVWRHQFRXUDJH Note: Being a service organisation, water is not a material aspect Reduction of water
VWDƩWRFRQWUROZDWHUXVHDQGKDYHDOVR to us. Therefore, water is used only for general purposes. usage (Head Office)
continued to invest in suitable equipment to 2019
minimise wastage.
Awareness and Training
Raising awareness among our employees on

how to battle climate change in their
day-to-day life, we believe is the key
to successful implementation of our
HQYLURQPHQWDOSURJUDPPHV$VDƪUVWVWHS
to inspire our employees to reduce their own
carbon footprint, we encourage them to adopt
the Sampath Bank Environment Pledge.
In addition, we conduct regular training on
VSHFLƪFWRSLFVZLWKWKHDLPRIGULYLQJDEURDGHU
cultural shift in favour of the environment.
Strategic Partnerships
As an initiative to set a
Over the years, Sampath Bank has sought out trend to reduce emissions
strategic partnerships to support or add value
WRLWVUHVRXUFHHƬFLHQF\DJHQGDWKHVHLQFOXGH
through employee
commuting, the Bank
y Neptune Papers (Pvt) Ltd. - Recycling
partner for paper waste conducted a ‘Virtual Walk
y ƶLQN*UHHQ3YW/WG5HF\FOLQJSDUWQHUIRU Competition’ among
e-waste employees. In 2019 the
y Cleantech (Pvt) Ltd. - Recycling partner for
challenge was to complete
e-waste
325,000 steps within 30
y RR Associates (Pvt) Ltd. - Partner for GHG
management days from Sampath Bank
y Climate Smart Initiatives (Pvt) Ltd. - Partner +HDG2ƬFHWR:LOSDWKWKX
for GHG management
95
NATURAL
CAPITAL
Responsible Lending
At Sampath Bank we recognise that our
lending activities can have an impact on the
environment and society. The Bank maintains
a special credit line dedicated to financing
small to large scale clean energy projects
that have the capacity to reduce the country's
dependence on non-renewable energy sources.
Renewable energy sector financing activities
are managed centrally at the Bank's Corporate
Finance Department by a specialised team
with sector-specific expertise. Backed by these
focused strategies, we have continued to work
towards the development of the renewable
energy sector in Sri Lanka. In testimony to The 6.5MW Mini Hydro Power Plant in Matale financed by Sampath Bank.
our efforts, the Bank recently received an

appreciation award from the Small Hydro Green Products and Services
Power Developers Association recognising Increased global attention to environmental issues have made us realise that, as a bank we are in a
Sampath Bank's contribution to the renewable position to play a broader role in creating a more environmentally conscious society. We have thus
energy sector in Sri Lanka. continued engaging our customers to enable them reduce their own environmental footprint. In this
regard we have invested heavily to develop digital products and services that would encourage our
In addition, we use sound risk management customers to embrace environmentally friendly practices as part of their day-to-day activities. Over
practices to identify, evaluate and mitigate the years, our customers have benefited from internet banking, mobile app based banking solutions,
the environmental and social impacts of our e-statements and SMS alerts, as well as some of the newer developments such as;
other lending activities. We have incorporated
environmental due diligence to support  The digital customer
our long term project financing activities. on-boarding tool
Accordingly to avoid dealing with borrowers
who have poor environmental and social  Digital access loan
risk management track records, we have  Digital area at branches
expanded our project appraisal process to
 e-receipts for Fixed Deposits
include environmental impact assessments,
proof of compliance of environmental laws and  Virtual Web Card
mitigation of other social risks, site visits, etc.
 Slip-less Banking App
Meanwhile in alignment with SDG 7  WePay digital wallet
(Affordable and Clean Energy), the retail
 Virtual Teller Machines at
lending arm offers special green loans to
individuals to promote increased investment in identified locations
solar energy among households. The Bank also
Mrs Shashi Kandambi Jassim, Senior DGM - Corporate Banking,
offers leasing facilities for low carbon emitting Sampath Bank PLC, accepting the Award of Appreciation for the Bank’s
hybrid vehicles. support extended to the sustainable development and energy security
of Sri Lanka from Dr Prathap Ramanujam, Executive Committee
Member, Small Hydro Power Developers Association.
New Renewable Energy Projects Financed
during 2019
Power No. of Capacity Loan Value
Category Projects (MW) (Rs Mn)
Hydro 04 13.7 2,038
Solar 07 6.5 638
96
Special Projects
Contribution to Biodiversity Sponsorship for the

Wildlife and Nature Conservation 'Earth Watchman'
Protection Society of Project Programme
Sri Lanka
Contribution to Wildlife and Nature Protection Society of Sri Lanka

An ongoing initiative, where for every new Sampath Bank debit card issued, the Bank has
undertaken to contribute a sum of Rs 5.00 to the Wildlife and Nature Protection Society of
6UL/DQND:136ƶHLQLWLDWLYHKDVEHHQLQSODFHIRUWKHSDVW\HDUVDQGUHƫHFWVWKH%DQN
V
long standing commitment to support the national environmental programme.
Biodiversity Conservation Project

,QLWLDWHGLQ0D\WKHSURMHFWDLPVWRVHWXSDELRGLYHUVLW\EDVHOLQHDQGDPDQDJHPHQWSODQWR
restore the degraded forest patch of one hectare in Halgahawala, Opatha and revive surrounding
HFRV\VWHPVƶH\HDUSURMHFWLVRSHUDWLRQDOLVHGWKURXJKD028EHWZHHQ6DPSDWK%DQNDQG
%LRGLYHUVLW\6UL/DQND%6/ZLWKWHFKQLFDOLQSXWVIURPWKH,QWHUQDWLRQDO8QLRQIRU&RQVHUYDWLRQRI
1DWXUH,8&1DQGWKH)RUHVW'HSDUWPHQWRI6UL/DQND
Sponsorship for the 'Earth Watchman' Programme

6RFLDO0HGLD&DPSDLJQRQ6SRQVRUVKLSWR:136
ƶH
(DUWK:DWFKPDQ
SURJUDPPHLVDQDWLRQDOLQLWLDWLYHWRSODQWWZRPLOOLRQWUHHVLVODQGZLGH
Launched to coincide with the 2019 Cricket World Cup, the initiative sought to draw on the nation’s
passion for cricket and rally the support of all Sri Lankans to play a part in replenishing the natural
resources used for the manufacture of cricket bats.
Sampath Bank was appointed the exclusive sponsor of the inaugural tree planting drive held at
WKH8QLYHUVLW\RI-DƩQDţV'HSDUWPHQWRI(QJLQHHULQJDQG$JULFXOWXUHLQ.LOLQRFKFKL7RLQDXJXUDWH
WKHSURMHFWWKHƪUVWVHWRIVDSOLQJVZHUHSODQWHGE\WKH3UHVLGHQWDQGUHSUHVHQWDWLYHVIURPWKH
0LQLVWU\RI0DKDZHOL'HYHORSPHQWDQG(QYLURQPHQW8QLYHUVLW\RI-DƩQD6DPSDWK%DQNDQG
Sri Lanka Rupavahini Corporation, while a total of 1,500 saplings were planted around the faculty
GXULQJWKHFRXUVHRIWKLVSURMHFWWRFUHDWHIRXUWUHHOLQHGJUHHQFRUULGRUV ƶH
(DUWK:DWFKPDQ
3URJUDPPHDW.LOLQRFKFKL
Success Story
ƶH6LULVDPDQSXUD3ULPDU\6FKRRODQXQGHUSULYLOHJHGVFKRROLQ(KHOL\DJRGD(GXFDWLRQDO'LYLVLRQ5DWQDSXUD'LVWULFWZDVHDUPDUNHGIRU
GHYHORSPHQWXQGHU6DPSDWK%DQNţV
6DPSDWK3DVDOD
&65SURJUDPPHLQ$VSDUWRIWKH&65SURMHFWWKH%DQNSODQWHG
5DPEXWDQ

saplings at the school premises. At the time, a student was assigned for each sapling and given the responsibility to nurture their plant and
ensures its growth. Of the 75 saplings planted, today 73 have grown into fruit bearing Rambutan trees, thus making a positive contribution to
the environment and ecosystems in the area surrounding the school.
Mr D G Senarath Dharmasena, the Principal of Sirisamanpura Primary School

ťƶDQNVWRWKHFRQWLQXRXVDVVLVWDQFHDQGHQFRXUDJHPHQWSURYLGHGE\6DPSDWK%DQNZHKDYHEHHQDEOHWRLPSURYHWKHIDFLOLWLHVRIWKHVFKRRO
which I believe is the reason for achieving the best results in Grade 5 Scholarship Examination in Eheliyagoda Educational Division for the past
four years. I am also very pleased to note that our school has been highlighted as one of the methodically developing schools in the region.”
97
CAPITAL
75$'(Ⱦ2))6
Initiatives for 2019 Impact on Capitals
y Raised Rs 7 Bn by way of a Basel III Compliant Debenture Financial Capital

in February 2019 to reinforce Tier II Capital Intellectual Capital
y 5DLVHG5V%QE\ZD\RID5LJKWV,VVXHLQ-XQH
to boost the Bank's Tier I Capital Sustainable Growth
y Advocating minimum competency standards Financial Capital
y Creating a multi-disciplinary workforce Human Capital
y Strengthening support networks Intellectual Capital
y Developing leaders Natural Capital
y 6RODUHQHUJ\PLJUDWLRQSURMHFW
y Digitisation to promote paperless processes
y Rs 2.4 Mn invested in community capacity building Financial Capital

y Rs 79 Mn invested in promoting Education for All Social and Relationship
Capital - Community
y Re-launch of the MY BANK agency banking model Financial Capital
y Rs 6.5 Mn invested in the Entrepreneurship Social and Relationship
Development programme Capital - Customer Supporting
Social and Relationship the National
Capital - Community Development
Intellectual Capital Agenda
y Contribution to the Wild Life and Nature Protection Financial Capital
Society of Sri Lanka: Rs 1.2 Mn Natural Capital
y Sponsorship for the 'Earth Watchman' Programme Intellectual Capital
Strategic Pillars
y &RPPLWPHQWWRWKH%LRGLYHUVLW\&RQVHUYDWLRQ3URMHFW
y Digitisation of the FD issuance process, the savings Social and Relationship

passbook and the loan disbursement at the Central Capital - Customer
&UHGLW3URFHVVLQJ8QLW&&38 Financial Capital
y Commissioned 64 new Cash Deposit Machines (CDMs) Manufactured Capital
y The online real-time Bill Payments facility was activated Natural Capital
Human Capital Digital Leadership
across the CDM network
y Created a dedicated digital banking area at every
branch
y Launched the Slip-less Banking App at tablets placed
within the Digital Banking Area at branches
y Launch of the Learning Management System Financial Capital
Human Capital
Natural Capital
y A special training programme focusing on Anti-Money Financial Capital Culture and Ethics
Laundering and Counter Terrorism Financing regulations Intellectual Capital
ZDVFRQGXFWHGIRUPDQDJHULDOOHYHOEUDQFKVWDƩDORQJ
with a special knowledge sharing session for Corporate
Management and the Board of Directors
98
BUSINESS REPORTS
Consumer Banking | 100
Corporate Banking | 104
SME Banking | 107
Global Banking | 108
Nostro Accounts, Correspondent Banks and Exchange Companies | 111
Treasury | 112
Operational Support | 113
Performance of Subsidiaries | 114
Investor Information | 115
CONSUMER
BANKING
ƶH%DQNOHYHUDJHGRQLWVGLJLWDOSODWIRUPVDQG Total Deposits CASA Base
superior service model to make inroads into the Rs 718.3 Bn Rs 253.2 Bn
VDYLQJVRILGHQWLƪHGVHJPHQWVVXFKDVPLOOHQQLDOV
and high net worth individuals.
2018 2018
Deposits Strategic Priorities
Rs 698.1 Bn Rs 232.8 Bn
Operating Context Sourcing low cost funds
From a macroeconomic perspective, market Not relying solely on market forces, Sampath 3% 9%
liquidity remained elevated in 2019 as the Bank focused on securing more sustainable
anticipated credit growth did not materialise sources of low-cost funding. And with the
on the back of the protracted economic KLJKLQWHUHVWUDWHHQYLURQPHQWLQWKHƪUVW
downturn which continued to dampen quarter making term deposits an overly costly Meanwhile to reach out to customers who
EXVLQHVVVHQWLPHQWVƶLVWRJHWKHUZLWKWKH source of funding, CASA growth became an appeared to be non-rate sensitive than others
CBSL's February 2019 decision to reduce the overarching priority for the Bank in 2019. ZKRH[SHFWDGGLWLRQDOEHQHƪWVWZRQHZ
SRR (Statutory Reserve Requirement) by 100 Adopting a broad-based approach to fuel CASA products - the Personal Investment Plan and
basis points to 5%, put commercial banks in growth, a series of promotional campaigns the Sampath EXPAT Account were launched
an excess liquidity situation prompting many were run concurrently for general savings and RƩHULQJDVDYLQJVEDVHGKHGJLQJVROXWLRQVWKDW
to move away from mobilising public deposits PLQRUVDYLQJVSURGXFWVƶH&XUUHQW$FFRXQW can bridge the rate gap over the long term and
which are often seen as a high cost alternative Bonanza" a special initiative to promote current RWKHUDGGLWLRQDOEHQHƪWV
WKDWEULQJVSUHVVXUHRQEDQNV
SURƪWPDUJLQV accounts was also launched in October 2019.
Performance
In an unprecedented move to help the $WWKHVDPHWLPHDFRQFHUWHGHƩRUWZDVPDGH 7HVWLI\LQJWRWKHHƩHFWLYHQHVVRIWKHDERYH
banks’ lower costs and boost margins, the to widen the CASA base by tapping into a strategies, Sampath Bank recorded the highest
CBSL stepped in to impose price controls on larger number of smaller customers around LKR CASA growth among the competitors for
deposits. Initially imposed for a period of 6 Sri Lanka. Steps taken in this regard saw the WKHƪUVWWKUHHTXDUWHUVRIƶH%DQN
V
PRQWKVZLWKHƩHFWIURPWK$SULOWKH Deposit Kiosk infrastructure being expanded savings book grew by 10.0% year on year
deposit cap was later removed prematurely in to cover the whole branch network as at 31st bolstered by healthy growth in all savings
mid-September. December 2019. However by far the most categories (General, Minor Savings and
VLJQLƪFDQWGHYHORSPHQWIRUZDVWKHUROO Senior Citizens). New customer acquisitions
out of the MY BANK - agent banking model, of 166,780 coming from regions other than
Deposit Mix
giving Sampath Bank customers across the ZHVWHUQSURYLQFHUHƫHFWVDVKLIWLQWKHWUHQGV
%
country the opportunity to make direct deposits observed in the past.
2 to their savings account via the nearest MY
5 BANK agent. ƶH%DQN
V&$6$UDWLRDOVRLPSURYHGIURP
33.4% in 2018 to 35.2% in 2019, pointing to a
Moreover as the rate gap between term GHƪQLWHLQFUHDVHLQWKH%DQN
VORZFRVWIXQGLQJ
30
deposits and savings narrowed noticeably base.
63 following the deposit cap, the Bank redoubled
LWVHƩRUWVWRGHHSHQWKHSHQHWUDWLRQLQWRQLFKH Outlook for 2020 and beyond
markets which are relatively less rate sensitive
Going forward, the Bank would likely maintain
than the mass market. In this regard, the Bank
an even stronger focus on CASA with the
leveraged on its digital platforms and superior
intention of building a stable and reliable low
Fixed Deposits Demand Deposits service model to make inroads into the savings
FRVWIXQGEDVHƶLVFDOOVIRUDFRQWLQXRXVDQG
Saving Deposits Others RILGHQWLƪHGVHJPHQWVVXFKDVPLOOHQQLDOVDQG
RQJRLQJLQYHVWPHQWLQSURGXFWGLYHUVLƪFDWLRQ
high net worth individuals.
FKDQQHOH[SDQVLRQDQGRSHUDWLRQDOHƬFLHQF\
in order to produce the best in-class CASA
value proposition in the industry at any given
time in the future.
100
Loans and Advances most notably: the increase in the grace period
Operating Context IURP\HDUVWR\HDUVƶLVZDVFRXSOHGZLWK
a wider range of repayment options being
As expected, the economic slowdown of 2018
made available to the customer. To raise public
GLGKDYHDVSLOORYHUHƩHFWFDXVLQJDQRWDEOH
DZDUHQHVVUHJDUGLQJWKHƫH[LEOHKRXVLQJORDQ
impact on the disposable income of consumers
scheme, a widespread mass media campaign
and draining the repayment capacity of
was launched. A campaign was also run for
borrowers, in turn further dampening
existing customers who have serviced their
the appetite for credit in the market. As a
loans successfully enabling to top up their loan
consequence, the demand for consumer credit
WKURXJKWKHƫH[LEOHKRXVLQJORDQVFKHPHDWD
ZKLFKLQSUHYLRXV\HDUVZDVDƩHFWHGE\WKH/79
concessionary rate.
restrictions, the excessive import duties, the
6WUDWHJLFDOO\UHSULFLQJDOOSURGXFWVLQOLQHZLWKWKH
Rupee deprecation and the high interest rate Managing Credit Quality movements in market interest rates.
environment, continued to taper even further
As the challenges in the external environment
in 2019.
continued to impinge on credit quality, all
Pawning Advances
HƩRUWVZHUHFHQWUHGRQVWUHQJWKHQLQJJURXQG
Taking action to fuel economic activity, the Rs Bn %
level customer screening and further improving
CBSL stepped in to cut policy interest rates
WKHLQWHUQDOFUHGLWHYDOXDWLRQSURFHVVƶLVZDV 40 6
in August 2019 followed by the imposition
done with the aim of weeding out potentially
of lending cap in October 2019. While these
high risk customers who are likely to be a threat 30 5
HƩRUWVGLGKDYHDSRVLWLYHHƩHFWRQWKHPDUNHW
WRSRUWIROLRTXDOLW\RYHUWKHORQJWHUP6WDƩ 4.6
resulting in a temporary revival in the appetite
WUDLQLQJZHUHDOVRLQWHQVLƪHGZLWKDVHULHV 20 4
for consumer credit in the second half of the
of special programmes dedicated to credit 3.5 3.7
year, the underlying economic status quo 3.3
evaluation and NPA management.
remained unchanged, as the issue of credit 10 3
quality continued to be a concern.
Operational Excellence
15
20
25
33
0 2
Operating in a highly competitive industry, 2016 2017 2018 2019
Strategic Priorities
Sampath Bank continues to make a conscious
In light of the aforementioned environment, Pawning Advances
HƩRUWWRDFKLHYHDOHYHORIRSHUDWLRQDO Pawning as a % of Total Advances (RHS)
Sampath Bank's loans and advances segment
excellence that would serve as a key
focused on three strategic thrust areas;
GLƩHUHQWLDWRUDPRQJSHHUV6WHSVWDNHQWR
ƶH+RXVLQJ/RDQERRNJUHZPRUHRUOHVV
Mapping Market Trends strengthen the operational backbone saw
on par with the industry, recording year-on-
the customer on-boarding process being
:LWKWKHHFRQRPLFGRZQWXUQDƩHFWLQJ year growth of 16.7% to reach Rs 44.4 Bn
fully digitised and rolled out across the whole
the appetite for consumer credit, the Bank as at 31st December 2019. Notably the
branch network. Re-engineering the process
UHGLUHFWHGLWVHƩRUWVWRVWUHDPOLQHOHQGLQJ quantum of Housing Loans granted also
architecture for Leasing and Samachara
activities with stronger emphasis promoting LQFUHDVHGVLJQLƪFDQWO\LQFRPSDUHGWR
personal loans was also fully completed
schematised lending rather than general 2018, while the average loan size appears to
in 2019, enabling a 90% reduction in the
lending. While strategically re-pricing all have decreased. Growing by 34.2% year-on-
turnaround time.
products in line with movements in market year, the Leasing book also grew on par with
interest rates, the main product silos (Leasing, industry levels. Bolstered by noticeably higher
In addition to these digitisation initiatives,
Housing and Pawning) were all reviewed and volumes in the second half of the year, the
special attention was given to develop capacity
realigned to make them more responsive Leasing portfolio touched Rs 31.9 Bn as at 31st
RIWKHVWDƩZLWKDUHJXODUWUDLQLQJWREULGJH
to the needs of the market. Consequently in December 2019.
competency gaps.
the Leasing segment, a new Insurance loan
scheme was introduced to assist the customer +RZHYHUE\IDUWKHPRVWVLJQLƪFDQWJURZWKZDV
Performance
in meeting mandatory insurance requirements. seen in the Pawning segment. Led by a robust
ƶHWRWDODGYDQFHVSRUWIROLRUHFRUGHGJURZWK
In the Housing Loan Segment, the "Sampath increase in new volumes, the Pawning portfolio
of 7.4% for the twelve months ended 31st
Sevana" housing loan scheme was revamped, also reported a growth of 33.0% year-on-year,
December 2019, with all three main product
ZLWKVHYHUDOPDMRUFKDQJHVEHLQJLQWURGXFHG well above the industry average to reach
categories recording a reasonable growth.
Rs 33.2 Bn as at 31st December 2019.
101
CONSUMER
BANKING
In light of this performance, a change was seen Strategic Priorities Having decided earlier on
in the lending mix with the Leasing, Housing
Loan, Samachara personal Loan and Pawning
One of the pioneers credited with that a technology-driven
UHYROXWLRQLVLQJWKH6UL/DQNDQƪQDQFLDOV\VWHP
segments, all increasing their contribution to approach would be the
in the late 80s by introducing the concept of
the total mix for 2019. transacting through cards, SampathCards has PRVWHƩHFWLYHZD\WR
since continued to break new ground through holistically re-engineer the
Outlook for 2020 and beyond QXPHURXVƪUVWVWKHƪUVWGHELWFDUGLQ6RXWK process architecture of the
Given that the Pawning and Housing products $VLDWKHƪUVW9LVD3ODWLQXP9LVD6LJQDWXUH
KDYHVKRZQVLJQLƪFDQWJURZWKSRWHQWLDOWKH
Card Centre, steps were
DQG9LVD,QƪQLWH&UHGLW&DUGVLQ6UL/DQNDDQG
focus for the immediate future would be to introducing Missed Call Banking for credit cards taken to systematically
increase the Bank's visibility and reach among IRUWKHƪUVWWLPHLQ6UL/DQND digitise every aspect of the
these customer segments. Service excellence Credit Card process.
ZLOOUHPDLQDNH\SLYRWLQDFKLHYLQJWKLVREMHFWLYH In light of the challenging operating conditions
Consequently, the Bank's short to medium term in 2019, the Card Centre adopted a decidedly
No. of Credit Cards
focus will be to transform every aspect of the more selective approach towards new
business using digital platforms; from vetting of customer acquisitions and instead looked to
new customers, to providing a comprehensive consolidate the business under three strategic 300,000
digital on-boarding experience and automating themes;
SURFHVVHVWRLPSURYHLQWHUQDOHƬFLHQF\WR 225,000
enable faster delivery to the customer. Customer Experience Management
Aware that the decision to limit new customer 150,000
Cards acquisitions would have an impact on the
Operating Context customer base and transaction volumes, 75,000
Card operations in Sri Lanka have been the Card Centre embarked on a massive
traditionally dominated by large banks. campaign to reduce existing customer attrition. 0
A dedicated team was carved out from within 2016 2017 2018 2019
However in recent years a variety of new
SOD\HUVLQWKHIRUPRIVPDOOHUEDQNVƪQDQFLDO the Card Centre to focus on countermeasures
services institutions and telcos have all entered to prevent customer attrition. To support the proposition that combines the best in-class
the market, making it increasingly more initiative, the assistance of the Customer Care customer experience in the market. Initiatives
competitive. Interestingly however, despite Centre was sought to reach out to inactive for 2019 include; roll out of the SABS (Sampath
WKHVWLƩFRPSHWLWLRQRYHUDOOFDUGSHQHWUDWLRQ cardholders. Automated Bill Settlement) facility and the
levels have continued to remain drastically low launch of the MasterCard Corporate Credit
primarily due to the fact that card operations Meanwhile to encourage cardholders to use
&DUGZKLFKRƩHUVDVPDUWVROXWLRQWKDW
have centred mainly in the Western Province their Sampath Card as the primary card, a
allows corporates to manage their expenses
along with a few key cities across the country. UDQJHRIDFWLYLWLHVZHUHXQGHUWDNHQWRSURMHFW
centrally. In addition, the Sampath Vishwa
SampathCards as the most versatile card
online banking portal was upgraded to create
In 2019, the demand for cards took a hit amidst a secure environment for cardholders to
a series of external challenges, most notably Credit Card Advance Portfolio
manage their Sampath Card account virtually,
the poor economic performance which caused Rs Mn
while the Sampath self-care app was also
a deterioration in disposable incomes in turn 20,000 launched giving cardholders 24/7 access
DƩHFWLQJPDLQVWUHDPVSHQGLQJSDWWHUQVƶH to various card services such as their card
uncertainty following the Easter Sunday terror balance, reward points transaction history etc.
15,000
attacks also had a notable impact on consumer In addition, several promotional campaigns
activity in Q2 and part of Q3 of 2019. were conducted throughout the year in
10,000
commemoration of the 30th anniversary of
5,000 SampathCards.
0
2016 2017 2018 2019
102
Managing Credit Quality Credit Card Usage augment the customer experience. It is hoped
Given the challenging economic environment, Rs Mn that this exercise increase cardholder loyalty
WKHLVVXHRIFUHGLWTXDOLW\HPHUJHGDVDPDMRU and pave the way for SampathCards to become
40,000
FRQFHUQSURPSWLQJZLGHVSUHDGHƩRUWVWR the most widely used card brand in Sri Lanka
streamline the recovery management process. over the long term.
30,000
$VDƪUVWVWHSWKH&DUG&HQWUHUHFRYHU\XQLW
Bancassurance
was restructured, with a portion of the recovery
20,000
management process being outsourced to Strategic Priorities
enable more stringent NPA management at a In line with our mandate to assist Sampath
10,000
micro level. Bank's borrowing customers in obtaining their
insurance requirements, the Bancassurance
Operational Excellence 0
2016 2017 2018 2019 operation adopted a multi-pronged strategy
It was felt that driving operational excellence to increase the number of conversions (from
ZLOOKHOSFXWGRZQWKHLQHƬFLHQFLHVDQGUHGXFH polices done by agents to Bancassurance
Performance
costs, enabling the creation of a more resilient policies). To raise awareness among borrowing
ƶHFDUGSRUWIROLRUHFRUGHG\HDURQ\HDU customers regarding the Bancassurance
EOXHSULQWWRULGHRXWGLƬFXOWWLPHV+DYLQJ
growth, albeit at a slower pace than in previous service, a special promotional initiative was
decided earlier on that a technology-driven
years. Transaction volumes, which showed a carried out along with the 2019 leasing quarter
DSSURDFKZRXOGEHWKHPRVWHƩHFWLYHZD\WR
GHFOLQHLQWKHƪUVWKDOIRIWKH\HDUSLFNHGXS campaign. Further four new insurance partners
holistically re-engineer the process architecture
IURPDURXQG-XO\ZLWKWRWDOWUDQVDFWLRQ were enrolled with Bancassurance Department
of the Card Centre, steps were taken to
volumes growing by 8.6% year-on-year. during the year. Extensive work also began
systematically digitise every aspect of the Credit
Card process. on restructuring the back-end administration
Furthermore the selective approach towards
of the Bancassurance operation with the aim
customer acquisition led to a decline in new
RIRƩHULQJFXVWRPHUVDVSHHGLHULQVXUDQFH
card issuances in 2019. However with customer
solution.
attrition well managed thanks to the focused
HƩRUWVE\WKH&DUG&HQWUHQRPDWHULDOLPSDFW 7DNLQJWKHƪUVWVWHSVWRGLYHUVLI\LQWRRWKHU
was seen in the card base from end December insurance streams, the unit began working
2018 to end December 2019. with its network of insurance partners to
GHYHORSFXVWRPLVHGEXQGOHGVROXWLRQVWRRƩHU
3XUVXDQWWRWKHDJJUHVVLYHHƩRUWVE\WKH&DUG
customers not only vehicle insurance but rather
Centre, NPAs too remained under control.
the full gamut of insurance services under one
roof.
In 2019, SampathCards received the Data
Integrity Award for the Greatest Positive change
Performance
in compliance for 2018, a key achievement
ƶHLQFRPHJHQHUDWHGWKURXJKWKH
WKDWSRLQWVWRWKHHƩHFWLYHRSHUDWLRQDOFRQWUROV
Bancassurance operation was marginally below
resulting from the digitisation programme.
the income reported for the last year.
Outlook for 2020 and beyond

ƶHIRFXVIRUWKHLPPHGLDWHIXWXUHZRXOGEH
Going forward the Bancassurance Department
to tap into the available opportunities to grow
will focus on growing the total insurance
PDUNHWVKDUHƶLVZRXOGFDOOIRUEURDGEDVHG
portfolio by focusing on making inroads
approach combining both market penetration
into other areas of the general insurance
and market development strategies to develop
market. Having already taken some action in
existing markets and gain access to new ones.
\HDUVRIUHYROXWLRQLVLQJWKHSD\PHQWFDUG this regard, the Bancassurance Department
LQGXVWU\LQ6UL/DQND In the medium term, a complete revamp of the
will initially focus on tapping into the Bank's
Card Centre model is likely to be undertaken
existing customers and thereafter gradually
with a view to producing a new dimension
extend its reach to the wider market in the
RIRSHUDWLRQDOHƬFLHQF\WKDWZRXOGIXUWKHU
years ahead.
103
CORPORATE
BANKING
Renewed emphasis was placed on deepening the Managing Credit Quality
penetration into high growth sectors such as agriculture In light of the tough economic environment,
post-credit monitoring was strengthened with
and trading as well as services, including healthcare,
tighter controls being implemented to ensure
education and financial services. Leveraging on the sector proactive follow up. Staff training activities
specialisation model in place, Relationship Managers were also intensified, while a new client liaison
were assigned to tap into large corporates who continue to officer was also appointed to maintain close
scrutiny regarding the external developments
demonstrate strong resilience to economic uncertainty.
affecting different sectors/clients.
Performance
Corporate Credit context, new risk appetite limits were also put
The Corporate Credit Department succeeded
Operating Context in place. The credit evaluation and approval
in recording higher lending volumes in 2019,
process was further streamlined with new
A difficult year in which the business climate bolstered by to a sizeable increase in both short
approval limits put in place.
was affected by political uncertainty and term working capital loans and long term loans.
slow economic growth. Macroeconomic Supporting high growth sectors of the The conscious decision to support mainly high
fundamentals too remained weak amidst Economy growth sectors of the economy also paid off,
ad-hoc policy directives leading to low investor as evinced by the change in the sector-wise
With most key sectors of the economy under
confidence in the economy in turn impacting lending mix for 2019, which showed a notably
pressure, a concerted effort was made to
the flow of FDIs to the country. Meanwhile higher exposure towards the trading, exports
reduce the exposure to high risk sectors such
challenged by high import duty structures, the and services sectors.
as construction and tourism. At the same time,
local business activity slowed considerably
renewed emphasis was placed on deepening
in 2019. Also given the uncertainty usually On the downside however, an overall increase
the penetration into high growth sectors
associated with an election year, general in Corporate Credit Non Performing Advances
such as agriculture and trading as well as
business sentiments remained skewed (NPAs) was reported in 2019. This was an
services, including healthcare, education and
towards a wait and see approach which threw a industry-wide problem caused by significantly
financial services. Leveraging on the sector
dampener on new investments and expansion higher NPAs recorded in ailing sectors such as
specialisation model in place, Relationship
plans. construction, tourism and manufacturing.
Managers (RMs) were assigned to tap into large
corporates who continue to demonstrate strong
And with both FDIs and local business activity Outlook for 2020 and beyond
resilience to economic uncertainty. To support
slowing down, the expected credit appetite While it is hoped that post-election era would
this strategy, new sector exposure limits and
failed to materialise, despite the best efforts by result in much needed economic stability that
single borrower limits were also imposed to
the CBSL to revive the demand for credit. would create a conductive environment to fuel
manage the risk of overexposure.
Reviewing its activities in light of the
increasingly challenging economic
environment in 2019, the Corporate Credit
Department decided to focus on three strategic
themes:
Mapping Market Trends

As many local businesses found themselves
facing liquidity problems amid the uncertain
business environment, the Corporate Credit
Department made a conscious decision to
ease away from extending short-term credit.
And with long-term lending was deemed a
more sustainable alternative in the current
Renewed emphasis was placed on deepening the penetration into high growth sectors.
104
growth across key industries, how soon such

conditions will materialise in reality remains to
EHVHHQƶHUHIRUHLQWKHLQWHULPWKH&RUSRUDWH
Credit Department will likely continue with
its prudent lending strategy with the aim of
targeting moderate growth for the next 12 - 18
months.
Corporate Finance
With the economic climate in 2019 bringing
more challenges than opportunities, the
Corporate Finance Department looked to
consolidate its activities vis-a-vis three key
priorities; %DQNIXQGHGPLQLK\GURSRZHUSURMHFWDW.XUXGXR\D(OOD:DODSDQH
Supporting high growth sectors of the

Economy Department turn its attention to address the services to complement the direct lending
FDVKƫRZQHHGVRIWKH)LQDQFLDO6HUYLFHV HƩRUWVE\WKH&RUSRUDWH)LQDQFH'HSDUWPHQW
With consolidation being the underlying theme
sector, which found itself under pressure to Providing Corporate Advisory services to
for 2019, it was felt all direct lending should
mobilise public funds following the deposit )RUHLJQ&XUUHQF\%DQNLQJ8QLW)&%8FOLHQWV
be done selectively to sectors presenting
cap imposed by the CBSL in April 2019. was also seen as another key source to boost
DPHGLXPWRORZULVNSURƪOH3UHPLVHGRQ
However in light of the questionable behaviour fee based income.
this, direct lending activities for the year
displayed by certain Financial Institutions in
were pivoted towards telecommunication
the recent past, additional risk controls were Performance
and renewable energy, two sectors that have
imposed to take note of any changes in clients’ While Corporate Finance loan book grew in
demonstrated strong resilience and have
operating environments and ensure only 2019, the exposure to the telecommunications,
recorded consistent growth regardless of
selective exposures are made to avoid credit UHQHZDEOHHQHUJ\DQGƪQDQFLDOVHUYLFH
macroeconomic challenges. Meanwhile
concentration risk. sectors were reported at 14.1%, 22.7% and
proactive measures to tap into market
44.2% respectively as at 31st December 2019
opportunities saw the Corporate Finance Managing Credit Quality UHƫHFWLQJWKHVXFFHVVRIWKHVHOHFWLYHOHQGLQJ
Taking steps to mitigate the potential impact strategy adopted by the Corporate Finance
on credit quality, the Corporate Finance Department.
Sector-wise Corporate Finance Loan Portfolio 'HSDUWPHQWUHPDLQHGƪUPLQLWVFRPPLWPHQW
% WRRƩHUEHVSRNHƪQDQFLQJVROXWLRQVWRPHHW Meanwhile the selective lending strategy
2 1 WKHVSHFLƪFQHHGVRIWKHFOLHQWƶHPDLQDLP coupled with the debt restructuring solutions
3 KHUHLVWRDOORZWKHFOLHQWWREHQHƪWIURPPRUH were responsible for the low NPAs recorded by
7
VXVWDLQDEOHFDVKƫRZPDQDJHPHQWSODQZKLFK the Corporate Finance Department in 2019.
in turn will contribute towards enhancing their
debt servicing capacity over the long term. A healthy increase in Fee Based Income was
51 QRWHGLQWKDQNVWRWKHSURDFWLYHHƩRUWVE\
36
Growing Fee Based Income the Corporate Finance Department to expand
To minimise the likely impact to the bottom its Corporate Advisory services.
line stemming from the cautious lending
Infrastructure Development strategy, the Corporate Finance Department Outlook for 2020 and beyond
Financial Services
accelerated its plans to grow Fee Based Income Based on current economic indicators and
3URIHVVLRQDO6FLHQWLƪF 7HFKQLFDO
Manufacturing mainly through Corporate Advisory Services. 6UL/DQND
VURDGPDSIRUWKHQH[WƪYH\HDUV
Construction ƶHPDLQWKUXVWLQWKLVUHJDUGZDVWRRƩHUGHEW it appears quite likely that industries such as
2WKHUV restructuring and other Corporate Advisory telecommunications, renewable energy and
105
CORPORATE
BANKING
financial services will all continue to move

in an upward growth trajectory. Leveraging
on opportunities in these three sectors will
therefore remain a major priority for Sampath
Bank's Corporate Finance Department in the
next few years. This would mean investing
in additional resources to develop new and
improved solutions in order to deepen existing
client relationships as well as to acquire new
clients over time.
Foreign Currency Banking Unit (FCBU)

In light of the stress conditions affecting
many key sectors of the economy, Sampath Glove manufacturing plant - Lalan Rubber (Private) Limited, a long-standing customer of FCBU.
Bank's Foreign Currency Banking Unit (FCBU),

tactically refreshed its strategy in 2019 to focus
Supporting High Growth Sectors of the Outlook for 2020 and beyond
predominantly on two key drivers;
Economy Operating in a highly competitive and mostly
Focus on offshore lending A deep dive into the FCBU's local lending saturated domestic market, the FCBU's future
portfolio saw the conventional lending mix direction will be largely centred on driving
With lacklustre economic environment
being revisited vis-a-vis the sector outlook for offshore lending. Encouraged by the success
beginning to have a deeper impact on local
2019, resulting in a deliberate effort to reduce achieved this far in this regard, the FCBU's
businesses, the FCBU began focusing its
the exposure to ailing sectors. At the same time medium-term strategic thrust will be to explore
attention predominantly on the offshore
renewed emphasis was placed on supporting opportunities in the South East Asian region.
lending operation. As local corporates stymied
sectors which have shown continued resilience And it is hoped that the Myanmar, where the
by the inactivity in the domestic economy
to prevailing macroeconomic challenges. Bank has a presence would prove to be a good
began moving their investments overseas, the
FCBU capitalised on the opportunity to position starting point to make to gain a foothold in the
Performance regional offshore lending market. The FCBU
itself as the main funding partner for such
offshore investments. Firming up its offshore Backed by its robust offshore lending strategy, will also look to widen its geographical footprint
trade services footprint was also seen as the FCBU's offshore lending portfolio tabled a in other emerging markets, particularly in the
another priority, which prompted the FCBU to solid increase in 2019 over the figure reported African subcontinent over the longer term.
initiate action to venture into the trade market at the end of 2018. The total lending portfolio Meanwhile the FCBU's local lending activities
in the Maldives. too registered growth of 4.2% year-on-year, with will be tempered by global trends and local
offshore lending accounting for 49% of the macroeconomic factors that would influence
Seeking out other avenues to expand the FCBU's lending mix in 2019, compared to 47% the performance of key sectors of the Sri
offshore lending book, the FCBU further in the previous year. Lankan economy.
leveraged on its track record to pursue
syndication opportunities in the region. This Meanwhile within the local lending book, a
was seen as a timely move especially with a notable increase was observed in apparel
growing number of international banks looking manufacture and the rubber exports, two
to emerging markets to raise funds. industries which have benefited from higher
global demand in 2019.
106
SME
BANKING
Seeing as how the deteriorating
PDFURHFRQRPLFVFHQDULRZDVDƩHFWLQJWKH
SME segment, the Business Support Centre
%6&ZKLFKKDQGOHVDPDMRUSRUWLRQRI
the Bank's SME portfolio was compelled
to re-examine its lending strategy. A more
conservative strategy was adopted to drive new
business based on;
Managing Credit Quality

With credit quality management being the
foremost priority for the year, the BSC took
a two-pronged approach to grow volumes.

6DPDUDQD\DNH6XSHUPDUNHW
DQ60(IXQGHGFXVWRPHURI6DPSDWK%DQN
1) promoting asset-backed lending to micro
enterprises and smaller corporates through
core lending products such as leases and
Performance Sector-wise SME Loan Portfolio
housing loans and 2) targeting mid-size
5HƫHFWLQJWKHFRQVHUYDWLYHVWDQFHRQOHQGLQJ %
corporates demonstrating a consistent 2
the overall SME banking portfolio expanded 2 1
UHSD\PHQWUHFRUGDQGVROLGFDVKƫRZVWUXFWXUH
VOLJKWO\LQIURPWKHƪJXUHUHSRUWHGLQ 2
to promote non asset-backed (working capital 6 22
2018. 6
and trade loans) lending. To complement these
VWUDWHJLHVVHYHUDOQHZVFUHHQLQJƪOWHUVZHUH 7
However thanks to the extensive focus on
added to strengthen the existing pre-credit
credit quality, NPAs were well managed and
evaluation procedure. 15
remained in line with expectations. 21
Meanwhile, a new credit control team was 16

carved from within the BSC to bring greater
Tourism Consumption
procedural control at every stage, from ƶHPDLQSULRULW\IRUWKH%6&ZRXOGEHWR Traders
Manufacturing
lead management, credit evaluation to ensure the SME book grows sustainably Infrastructure Health Care
in the years ahead. Doing so would mean Development Education
disbursement as well as recovery management.
Agriculture Others
As part of the same initiative, work also began tapping into more high quality clientele who
Construction Entertainment
on developing an app-based MIS solution display strong resilience in times of economic
WRJLYHWKH%6&
VƪHOGWHDPVUHDG\DFFHVVWR uncertainty. In order to be able to capture and
information regarding the status of facilities retain such clients, the BSC will look beyond
XQGHUWKHLUSXUYLHZƶLVZDVGRQHZLWKWKH plain vanilla lending products and focus on
aim of facilitating more proactive monitoring providing more value added business solutions
and follow up at a ground level. that will help improve the long-term growth
prospects of SMEs.
107
GLOBAL
BANKING
International Trade Services
Operating Context
2019 was a year of uncertainty for Sri Lanka's
trade sector, brought on by weak economic
activity and regulatory pressures on the local
front as well as a visible slowdown in global
trade activities. While the US-China trade
tensions too affected the course of global trade
in 2019, it opened up a host of opportunities
for certain exporters in emerging economies
such as Sri Lanka.
With the trade business under pressure, it was SME clinics, conducted as part of a social responsibility initiative to raise awareness among the SME sector.
felt a conservative growth target would be more
appropriate, leading Sampath Bank's Trade
Services Department to focus mainly on; strengthen the operational infrastructure of the Trade & Non-Trade Related TT Volumes
Trade Services Department. A new business Rs Bn
Mapping Market Trends development team was set up at the Trade
250
Having observed a distinct lack of demand Services Department and assigned to work
for import Letters of Credit (LCs) since the with the Bank's Business Support Centre (BSC) 200
Government declared a 200% cash margin to drive trade volumes in the corporate sector
as well as SMEs. This was coupled with a 100% 150
for LCs in some sectors in September 2018,
the Trade Services Department looked to increase in staff training activities. Good progress
100
consolidate its import trade business in order was made in the process digitisation initiative
to tide over the difficult times. And swiftly as well. During the year we have initiated 50
to enhance the file net system to enable LC
162
174
142
165
195
148
205
201
capitalising on the improved prospects for
amendments as a part of this process . 0
certain export industries, a focused effort was 2016 2017 2018 2019
launched to grow export trade volumes.
Empowering Communities Turnover - Trade
Turnover - Non Trade
However with the removal of the margin SME clinics, conducted as part of a social
stipulation in March 2019, efforts to promote responsibility initiative to raise awareness
LCs also resumed in earnest and were led among the SME sector also gathered Outlook for 2020 and beyond
by a massive campaign offering NIL margin momentum, with a total of two clinics held
With the operating environment likely to
LCs. Targeting mainly State sector employees across the country in 2019. These clinics are
become more and more complex in the years
who have benefited from the Government's designed to give SMEs the opportunity to liaise
ahead, it would be crucial to ensure that the
decision to recommence the issuance of with representatives from all major trade-
Trade Services business model is agile enough
vehicle permits, the NIL margin LC was related regulatory bodies such as the Export
to keep pace with the need of the market. This
designed specifically to facilitate the import of Development Board, Sri Lanka Customs, the
would mean driving internal efficiencies across
vehicles for permit holders. Department of Inland Revenue etc.
every aspect of the business to build resilience
and facilitate scalability.
Operational Excellence Performance
With the operating environment becoming It was a year of mixed fortunes for the Trade
increasingly uncertain and competitive Services Department. While the Bank's export
pressures on the rise, the Trade Services volumes reported a marginal increase, import
Department has for the past few years, been volumes declined during the year, largely due
pursuing operational excellence as the basis to the economic uncertainties. The growing
of gaining a competitive edge in the market. trend favouring open account payment such
Following up on the work done so far, some as Telegraphic Transfers (TTs) was also partly
very important steps were taken in 2019 to responsible for the lower demand for LCs.
108
Sampath Bank has seen as a timely one that will improve the Performance
BNO's readiness to handle newly released
consistently reported the international currency notes especially as
Amidst a notable decline in currency inflows
recorded from all channels - money changers,
highest currency repatriation most countries in European and Middle- the KPO and the branch network, the BNO’s
volumes among local banks, Eastern regions continue to introduce highly repatriation volumes also registered a decline
enabling the Bank to claim sophisticated bank notes with advanced for the first time in four years.
security features.
the #1 position since its
Nonetheless proactive monitoring of exchange
inception. The other major project undertaken during the rate fluctuations coupled with the renewed
year was the proposed digitisation of the BNO emphasis on cost efficiency, enabled the BNO to
back office. The project, which would see nearly maintain margins on par with the previous year.
35% of the operational functions of the BNO
Bank Notes Operations
being digitised which would greatly reduce the Outlook for 2020 and beyond
Operating Context risk of error associated with manual handling.
The outlook for the future will certainly depend
Several factors affected the volume of
on increased currency circulation in the market.
foreign currency circulation in the market in Expand Market Reach
A post-election economic revival would boost
2019, specifically the frequent fluctuations Having operated with a single Singapore-
the circulation of currency notes in the market,
in the Rupee and the 15% tax imposed by based repatriation agent for many years, in
would therefore be the key underpinning
the government in 2018 to curtail the gold 2018 Sampath Bank’s BNO in a strategic move
factor that would determine the BNO’s growth
imports. However by far the most severe decided to expand its network partners, which
prospects in the years ahead.
impact was due to the drop in tourist arrivals led to the tie up with a new repatriation agent
in the aftermath of the Easter Sunday based in Middle East. Remittances
attacks. Following the incident on 21st April
Operating Context
2019, foreign currency circulation volumes Then BNO signed up with a third repatriation
plummeted in 2Q 2019 and 3Q 2019, with only agent based in Europe, making Sampath Inward remittances from migrant workers
a slight re-bound apparent in 4Q 2019. Bank the only local bank to operate through a employed overseas remains the leading source
network of three repatriation partners. More of foreign income for the country. Having
Strategic Priorities importantly direct links to this nature also help reached a peak in 2016, Sri Lanka's foreign
reduce repatriation costs, giving Sampath Bank exchange earnings from remittances has
Characterised by a large number of players, the
a distinctive cost advantage over peers in the since been on the decline. The main reason
Bank Notes business in Sri Lanka continues
to remain highly competitive. Regardless market.
Sampath Bank has consistently reported the
highest currency repatriation volumes among
local banks, enabling the Bank to claim the #1
position since its inception. However with the
externalities outlined above affecting the entire
bank note industry, Sampath Bank’s Bank
Notes Operations (BNO) too found 2019 to be
one of the most challenging in recent times.
Taking swift action, the BNO team refocused
its efforts to enhance support infrastructure in
order to reduce costs and minimise the impact
on the bottom line.
As part of the ongoing operational
improvement programme, the BNO Katunayake Pay Office.
invested to upgrade the existing counterfeit
detection infrastructure at all branches
and at Katunayake Pay Office. The move is
109
GLOBAL
BANKING
Performance
Persistent efforts to grow volumes, enabled
the Bank to record a 12.7% increase in Inward
Remittance volumes for 2019 compared to
the figure registered in 2018. This is seen as a
commendable achievement at a time when the
country's inward remittance volumes were on
the decline.
The GCC region continued to be the main

source market. Interestingly however a higher
volumes were seen coming in from several
other territories as well, a testament to the
effectiveness of the market strategies outlined
Sampath Bank partners with Kyodai Remittance to expand money transfers from Japan. above.
for the decline is believed to be the economic took steps to expand its ground coverage in Outlook for 2020 and beyond
instability in the Middle East, also known as established source markets in the GCC region. Growing market share will remain the
the GCC region - the key source market which At the same time, measures to reduce the overarching priority for the future as well.
accounts for significant Sri Lankan migrant dependency on the GCC region, saw market However given the competitive environment
worker remittances. penetration activities aimed at making inroads and the generic nature of the inward
into emerging source markets such as South remittance service, doing so will depend on the
Inward remittances for the most part is a Korea and Japan, all countries which appear ability to show a clear service differentiation
generic service offered by all licensed banks to indicate a strong potential for growth. To that would benefit both the sender and the
and several registered financial institutions increase the ground presence in South Korea, receiver. In this regard, the Bank will look to
which constitutes the formal channel. Further Sampath Bank signed up with KEB Hana Bank, digital technology as a means of improving
adding to the competitive pressures, a growing a top-tier commercial bank in that country. service standards in order to create a clear
number of digital technology companies have However in a notable deviation from the distinction that would set Sampath Bank's
also been making an entry into the inward usual practice of seeking banking partners to inward remittances offering apart from others
remittances market in recent years. establish a ground presence in Japan, Sampath in the market.
Bank tied up with local financial technology
Strategic Priorities companies offering seamless digital solutions
Despite recording some of the highest and faster turnaround times.
volumes in the industry over the past five years,
Sampath Bank's Remittances Department Customer Experience Management
continued to take aggressive action to increase The focus on the recipient market saw ongoing
market share in 2019, via a two-pronged improvements being made to enhance service
approach: delivery. System modifications were done along
with advanced API integration to implement
Expand Market Reach the instant money transfer facility to give the
A combination of both market penetration and receiver immediate access to funds.
market development strategies were adopted
to expand the market reach in source markets
around the world. Market development
activities gathered momentum as the Bank
110
NOSTRO ACCOUNTS,
CORRESPONDENT BANKS
AND EXCHANGE COMPANIES
GRI 102-4
227
Correspondent
36 109
Nostro Exchange
Banks Accounts Companies
Scan this QR code for a more comprehensive view

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Exchange Companies
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111
TREASURY
Operating Context underpinned the Treasury's foreign exchange Performance

ƶHJHRSROLWLFDOODQGVFDSHFRQWLQXHGWR portfolio. Accordingly, Risk Appetite Limit for ƶH7UHDVXU\'HSDUWPHQWUHJLVWHUHGDVWURQJ
adversely impact global investment in 2019 Foreign Exchange Rate Risk were revised based performance in 2019, thanks to the well-
ZLWK86&KLQDWUDGHWHQVLRQVDQGWKH%UH[LW on the market movements. thought out strategies that helped to overcome
expectations among the key concerns that challenging market conditions. And with
Expanding Market Reach
DƩHFWHGFDSLWDOPDUNHWV)URPDFRXQWU\ Revenue growing by 14.6% year-on-year, the
perspective, the decision by the Central Bank In the Bank Notes Operations, the Treasury Treasury remained the largest contributor to
of Sri Lanka to cut the policy rates twice focused on maintaining Sampath Bank's the Bank's performance in the year under
within the space of few months led to some #1 position as the leading foreign currency review.
LQYHVWPHQWRXWƫRZVIURP6UL/DQNDDVKHGJH repatriator, which led to the sign up with a third
funds began seeking out more lucrative UHSDWULDWLRQ%DQNEDVHGLQ8QLWHG.LQJGRP Outlook for 2020 and beyond
investment opportunities in other emerging making Sampath Bank the only local bank to
6HYHUDOIDFWRUVZLOOOLNHO\DƩHFWWKHSURVSHFWV
market (EM) countries. Interestingly though the operate through a network of three repatriation
of local and global bond markets in the
overall impact caused by the downward rate partners.
year ahead. Recent change in the country's
DGMXVWPHQWZDVRƩVHWWRVRPHH[WHQWE\WKUHH political landscape will be a key catalyst that
FRQVHFXWLYHUDWHFXWVLPSRVHGE\86)HGHUDO
ZLOOGHWHUPLQHƪVFDODQGPRQHWDU\SROLF\
Reserve over the same period. 2QJRLQJHƩRUWVWRVWUHQJWKHQWKH7UHDVXU\
V outlook for 2020 and beyond, while the
operational framework saw a comprehensive economic impact of new tax cuts and proposed
)URPDFRXQWU\SHUVSHFWLYHWKHQHWRXWƫRZ manual for Treasury operation being concessions on advances too to be considered.
IURPJRYHUQPHQWVHFXULWLHVZDV86'0Q LQWURGXFHGWRRƩHUJUHDWHUFODULW\UHJDUGLQJ Sri Lanka's stance on Indian relations will
for the year. As a result, government securities VFRSHVRIWKHIURQWPLGGOHEDFNRƬFHVţ be another key consideration. Meanwhile
held by foreigners which at the beginning of operations. Several infrastructure upgrades ORZJOREDO*'3JURZWKDQG86&KLQDWUDGH
WKH\HDUZDV86'0QZDVGRZQWR ZHUHDOVRXQGHUWDNHQLQƶHH[LVWLQJ WHQVLRQVDQGWKHLUFDVFDGLQJHƩHFWRQ
86'0QE\HQG'HFHPEHU voice recorder facility was upgraded to cover HPHUJLQJPDUNHWVLQ$VLDZLOOEHPDMRUIDFWRUV
all areas relating to Treasury Operation and WKDWZLOOLQƫXHQFHFDSLWDOƫRZVWRDQGIURP
ƶHPRXQWLQJGHEWEXUGHQDOVRFRQWLQXHG ensure compatibility with the Disaster Recovery Sri Lanka. Given this heightened uncertainty
to be a draw-down for the country's progress. Centre, while the Reuters Market data system surrounding global bond markets, Sampath
Collectively these factors also had a serious was commissioned at the Treasury Middle Bank's Treasury Department will need to
impact on the Sri Lankan Rupee. 2ƬFH,PSURYHPHQWVZHUHPDGHWRWKHFRUH remain hyper vigilant in order to capitalise on
operating system to automate processing of opportunities as and when they do present
General business sentiments which remained high value transfers through the Real Time themselves in the coming year.
low at the start of the year, took a nosedive Gross Settlement (RTGS) process.
following the Easter terror attacks in April 2019
and prompted the CBSL to downgrade the USD/LKR Movement in 2019
Country's GDP forecasts for the year. Although Rs
the outcome of the presidential election did
lead to a slight rebound in economic activity 200
towards the end of the year, Sri Lanka ended 190

182.90 180.10 181.25 181.35
2019 with the lowest GDP among regional 179.30
180 176.18 176.45
SHHUVIRUWKHƪUVWWLPHLQVHYHQ\HDUV 179.38 182.05 181.00
175.45 176.50 176.30
170
Strategic Priorities 160
In light of the uncertain economic 150
659
795
914
Apr-19 964
environment, the underlying focus for the

140
Bank's Treasury Department was three-fold:
Nov-19
Mar-19
Dec-18
Jan-19
Feb-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Dec-19
Mapping Market Trends

A prudent strategy was adopted to realign the
ƪ[HGLQFRPHDQGVHFXULWLHVSRUWIROLRVLQOLQH
with the market, while a cautious approach
112
OPERATIONAL
SUPPORT
1HWZRUN6HUYLFHV&HQWUH16&
Sampath Bank's Network Services Centre
(NSC) provides mission critical support for the
day-to-day business of the Bank. In addition to
its primary function to facilitate inward/outward
cheque clearing, the NSC also manages
the Sampath Corporate Payment System
(SCPS) and handles daily reconciliations of
all electronic payment modes and ATMs,
e-statements, document archiving etc. NSC
also maintains central control over reporting of
all Central Bank Returns, customer statements
and printing of cheque books.
In 2019 the scope of the NSC was further

widened with bank-wide reconciliations
brought under its purview. Given the additional
workload, process automation was seen as
DNH\HQDEOHUWRGULYHLQWHUQDOHƬFLHQF\DQG
UHGXFHFRVWVƶHPDLQIRFXVIRUWKH\HDU
was to streamline the reconciliation process
using state-of-the-art RPA (Robotic Process
Automation) software, which would minimise
*LYH\RXUEXVLQHVVDERRVWRIHƬFLHQF\ZLWK6DPSDWK9LVKZD&RUSRUDWH
the risk of manual error and greatly improve
the time taken to complete the reconciliation
processes. IUDPHZRUNVDVZHOOƶH%DQNKDVLQYHVWHGLQD
Recoveries
An integral part of the back-end support new delinquency monitoring system to ensure
&HQWUDO&DVK'HSDUWPHQW&&'
infrastructure of the Bank, the Recoveries proactive follow up right from initial stage of
ƶH&HQWUDO&DVK'HSDUWPHQW&&'SOD\V default/non-payment and AI-based predictive
'HSDUWPHQWPDNHVDVLJQLƪFDQWFRQWULEXWLRQ
a vital role in managing the cash position of analysis software to examine the repayment
WRZDUGVVDIHJXDUGLQJWKH%DQN
VƪQDQFLDO
the Bank and its 229 branches and 423 ATMs patterns of existing customers and detect
position.
across the country. As the custodian of ATM early warning signals that could indicate the
network, the CCD is tasked with facilitating its likelihood of default. Reporting frameworks
ƶH\HDUZDVDSDUWLFXODUO\FKDOOHQJLQJ
cash requirements and for ensuring optimal were further strengthened with a set of
one for the Recoveries Department amidst the
HƬFLHQF\ZLWKLQUHJXODWRU\IUDPHZRUN7R dashboards put in place to record progress and
mounting burden of non-performing advances
DFKLHYHWKHVHREMHFWLYHVWKH&&'LPSOHPHQWHG provide regular feedback to all key stakeholders
13$VƶHLVVXHRIKLJKHU13$VZKLFKƪUVW
a cash forecasting tool on a limited basis in and the top management. A special training
DURVHPLGZD\LQZDVIXUWKHUPDJQLƪHG
ƶHWRROZDVIXUWKHUUHƪQHGDQGUROOHG SURJUDPPHZDVLQLWLDWHGWRHGXFDWHVWDƩ
in 2019 on the back of deteriorating economic
out across the entire ATM network in 2019 on the importance of adhering to the Bank's
FRQGLWLRQVWKDWDƩHFWHGWKHJURZWKSURVSHFWV
which has helped to maximise run time and credit policy and other protocols to safeguard
of many key sectors such as construction,
ensure optimal cash levels. loan quality. And seeing the need for greater
tourism and travel. Taking a proactive approach
to address the situation, Sampath Bank's supervisory oversight at an operational level,
A pilot run was also initiated to determine if several top level appointments were made to
Recoveries Department worked purposefully
the tool could be operationalised to facilitate further strengthen the Recoveries Department,
WRDFKLHYHWZRNH\REMHFWLYHVUHGXFLQJWKH
HƬFLHQWDQGHƩHFWLYHFDVKPDQDJHPHQWDW while additional manpower was provided to
quantum of existing NPAs and 2) curb new
branches as well. augment the capacity of the Bank's Legal team.
entrants to the NPA bucket.
Meanwhile as part of the ongoing process

While employing multiple strategies to speed
improvements at the CCD, all manual cash
up debt recovery, a series of measures were
registers were digitised enabling stricter control
taken to improve monitoring and reporting
over branch level cash management activities.
113
PERFORMANCE OF GRI 102-45
SUBSIDIARIES
Siyapatha Finance PLC
Siyapatha Finance PLC (Siyapatha) formerly
known as Sampath Leasing & Factoring
Limited, is a fully-owned subsidiary of Sampath
Bank PLC established in March 2005. The
Company’s brand presence was rejuvenated in
2013 as a new entrant to the licensed finance
company regime.
From a macroeconomic perspective, negative

credit growth, declining profitability and
an increase in non-performing loans in
the Banking and Finance sector along with
subdued economic activity following the Easter
Sunday attacks and political instability ahead of Major General (Retd) Prasanna De Silva, the Group Security Consultant overseeing the security aspects of the
the presidential election mainly contributed to construction work at Sampath Centre premises.
sluggish economic growth in 2019.
Despite sluggish macro-economic conditions, reporting date. The main asset of the Company
Even in such a challenging situation, Siyapatha
the Company managed to increase its total is the building situated in Colombo 02 which
recorded a pre-tax and post-tax profit of
income by 36.0% year-on-year in 2019 to reach will be expanded by six additional floors by end
Rs 798.5 Mn and Rs 480.2 Mn respectively
Rs 62.7 Mn, compared to Rs 46.2 Mn reported 2020 with improvements to the existing floors
for 2019. Net interest income and net fee &
in 2018. After several years of continuous as well.
commission income registered a year-on-
losses, the Company reported a net profit of
year growth of 10.4% and 11.9% respectively.
Rs 7.7 Mn in 2019. Several changes in senior Sampath Information Technology
The Company’s lending portfolio grew by
management positions contributed towards the Solutions Limited
9.7% to reach Rs 36.2 Bn as at the year end.
turnaround in performance. Sampath Information Technology Solutions
However, due to the reasons mentioned above,
the impairment charge on financial assets Limited (SITS) is another fully-owned
Sampath Centre Limited subsidiary of Sampath Bank PLC. It is a systems
increased by Rs 221.2 Mn (26.7%) compared to
the previous year. Sampath Centre Limited was established in integration company that provides end-to-
1996 as the first subsidiary of the Bank. The end integration services and consultancy
SC Securities (Private) Limited Company owns and manages the building at for business transformation. Twelve years of
No. 110, Sir James Peiris Mawatha, remarkable history has proved that SITS is one
SC Securities (Private) Limited is a fully owned
Colombo 02, which houses the Bank’s head of the best in the industry with the right set of
stock broking subsidiary of the Sampath
office. Rental income earned by leasing out the skills and the knowledge base to deliver and
Bank. The Company is a licensed member of
building space is the main source of income maintain information and communication
the Colombo Stock Exchange and has been
of the Company. At present Sampath Bank technology (ICT) infrastructure, including
operating in Sri Lanka's capital market since
occupies all eight floors of the building. managed services, software solutions,
1992.
enterprise solutions, business productivity
The Company made a pre-tax profit of solutions, financial technologies and business
2019 was a challenging year for the Sri Lankan
Rs 352 Mn for the year 2019 compared to consultancy services. The Company recorded
equity market due to political uncertainty
Rs 688 Mn in 2018, a YoY decline of 48.8%. a remarkable growth in 2019 and made a
impacting investor confidence throughout the
This decline is mainly attributable to the 63.8% pre-tax profit of Rs 69.3 Mn for the year 2019
year; starting from Easter Sunday attack in April
decrease in fair value gain on investment compared to Rs 82.4 Mn loss in 2018, an year-
to the Presidential Election in November. While
property, 4.5% reduction in rental income and on-year growth of 184%.
selling pressure from foreign investors was
a 41.4% reduction in other operating income.
evident throughout the year, active participation
Post-tax profit for the year declined to In 2019 the Company tabled highest ever post-
was seen from local investors after the
Rs 295 Mn in 2019 from the Rs 554 Mn tax profit in its history. Reflecting a complete
Presidential Election. Consequently, All Share
reported in the previous year. The total assets turnaround from the previous year, post-tax
Price Index (ASPI) gained 1.27% (76.84 points)
base of the Company increased by 11.3% from profit for 2019 reached Rs 51.4 Mn in contrast
in 2019 while S&P Index declined by 6.32%
Rs 5.9 Bn as at end 2018 to Rs 6.6 Bn by the to the loss of Rs 69.2 Mn reported in the
(198.22 points). The daily average turnover for
previous year.
2019 was Rs 716 Mn compared to Rs 834 Mn
registered in 2018.
114
INVESTOR
INFORMATION
Value Creation for Shareholders
2019 2018 Change %
Net asset value per share (Rs) 275.27 300.42 (8.37)

Group earnings per share - Basic (Rs) 34.36 44.83 (23.35)
Dividend per share (Rs) 11.75 16.25 (27.69)
Market price per share as at 31st December (Rs) 162.40 235.00 (30.89)
Dividend payout ratio (%) 40.19 37.59 6.92
Bank’s Market Capitalisation Rank Dividend per Share & Dividend Payout Ratio Earnings & Highest Market Price per Share
Rs % Rs Rs
16 20 42 60 600
40.19
13 15 38.00 38
12 12
37.59 40 400
36.85 352.2
10 335.5
10 10 34
268.7
9 245.0
20 200
7 5 30
18.75
17.20
16.25
11.75
49.3
58.7
44.8
34.4
4 0 26 0 0
2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019
Dividend per Share Earnings per Share - Group

Dividend Payout Ratio (RHS) Highest Market Price per Share - Bank (RHS)
Bank's Market Capitalisation in Comparison to CSE - as at 31st December
2019 2018 2017 2016 2015 2014
Sampath Bank's market capitalisation (Rs Mn) 61,949 66,012 68,577 46,086 42,734 39,677
Increase/(decrease) % in market capitalisation (6%) (4%) 49% 8% 8% 38%
CSE market capitalisation (Rs Mn) 2,851,313 2,839,445 2,899,291 2,745,410 2,938,000 3,104,860
As a % of CSE market capitalisation 2.17% 2.32% 2.37% 1.68% 1.45% 1.28%
Market capitalisation rank 10 9 12 12 15 17
Composition of Share Ownership - 2019

Shareholders' Fund (No. of Shareholders) Bank’s ROE & Market Interest Rates
Rs Mn % %
0.70 0.15
120,000 5.49 30
23.47 23.35
90,000 27.44
20
16.02
60,000 66.22 11.78
10
30,000
105,006
44,489
84,389
63,650
10.0
11.5
10.1
11.1
10.8
8.9
9.8
9.1
0 1-1,000 Shares 100,001-1,000,000 Shares 0

2016 2017 2018 2019 2016 2017 2018 2019
1,001-10,000 Shares Over 1,000,000 Shares
10,001-100,000 Shares Average of 12 Months Average of 12 Months
AWFDR T.B. Rate
ROE (after income tax)
115
INVESTOR
INFORMATION
Analysis of Shareholders
Resident/Non-Resident
31st December 2019 31st December 2018

No. of No. of % No. of No. of %
Shareholders Shares Shareholders Shares
Resident shareholders 21,561 303,952,514 79.68 18,843 216,548,422 77.09

Non-resident shareholders 352 77,505,471 20.32 359 64,353,826 22.91
Total 21,913 381,457,985 100.00 19,202 280,902,248 100.00
Individuals/Institutions

No. of No. of % No. of No. of %
Individuals 21,166 103,351,611 27.09 18,556 87,607,303 31.19

Institutions 747 278,106,374 72.91 646 193,294,945 68.81
Total 21,913 381,457,985 100.00 19,202 280,902,248 100.00
Composition of Share Ownership

No. of % No. of % No. of % No. of %
1 - 1,000 shares 14,510 66.22 4,136,654 1.08 12,976 67.58 3,915,751 1.39
1,001 - 10,000 shares 6,013 27.44 18,730,063 4.91 5,160 26.87 16,201,044 5.77
10,001 - 100,000 shares 1,202 5.49 30,369,477 7.97 916 4.77 22,773,359 8.10
100,001 - 1,000,000 shares 153 0.70 46,746,699 12.25 116 0.60 33,557,102 11.95
Over 1,000,000 shares 35 0.15 281,475,092 73.79 34 0.18 204,454,992 72.79
Total 21,913 100.00 381,457,985 100.00 19,202 100.00 280,902,248 100.00
Composition of Share Ownership - 2019 Share Trading - Sampath Bank PLC

Bank’s Market Capitalisation (No. of Shares) (No. of Shares Traded)
Rs Mn % Mn
1.08
80,000 4.91 60 58
7.96
60,000 45 48
73.80 12.25
38
40,000 30
20,000 15 19
46,086
68,577
66,012
61,949
0 1-1,000 Shares 100,001-1,000,000 Shares 0

2016 2017 2018 2019 2016 2017 2018 2019
1,001-10,000 Shares Over 1,000,000 Shares
10,001-100,000 Shares
116
Share Trading
Market
2019 2018 2017 2016 2015
No. of transactions 1,197,205 885,657 981,977 1,056,849 1,506,790

No. of shares traded 9,855,016,003 6,000,737,306 8,468,273,611 7,195,805,445 9,414,661,048
Value of shares traded (Rs Mn) 171,408 200,068 220,591 176,935 253,251
Bank
2019 2018 2017 2016 2015
No. of transactions 44,188 29,623 17,547 10,698 14,460

No. of shares traded 57,548,812 48,444,177 37,726,071 18,830,195 26,898,512
As a % of total shares in issue 15.09 17.25 17.37 10.64 15.61
Average daily turnover (Rs Mn) 40.32 56.75 48.94 18.77 29.22
Value of shares traded (Rs Mn) 9,757.84 13,621.11 11,793.39 4,484.95 6,982.39
Sampath Bank's Share Price Fluctuation
2019 2018 2017 2016 2015
Lowest market price (Rs) 136.00 218.00 253.50 210.00 235.20

Highest market price (Rs) 245.00 335.50 352.20 268.70 279.90
Closing price as at 31st December (Rs) 162.40 235.00 315.70 260.40 248.00
Gross Dividend Shareholding of Individuals & Institutions Price Earning Ratio as at 31st December
Rs Mn % Rs
5,000 100 400 8
4,000 80
300 5.5 5.6 6
5.4
4.9
3,000 60
66.3
65.7
68.8
72.9
200 4
2,000 40
56.06
47.35
43.18
100 2
32.84
260.40
1,000 20
315.70
235.00
162.40
3,362
4,598
4,565
4,482
33.7
34.3
31.2
27.1
0 0 0 0
2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019
Institutions Market Price per Share Earnings per Share

- Bank - Bank
Individuals
Price Earning Ratio (Times) - Bank (RHS)
117
INVESTOR
INFORMATION
Bank's Share Price Fluctuation Share Trading - Sampath Bank PLC Price to Book Value as at 31st December
Rs Mn Rs Mn Rs
400 15 5,000 400 1.5

352.20
350 335.50 1.08
12 4,000 320 1.09 1.2
300
268.70 9 3,000 240 0.78 0.9
245.00
250 0.59
253.50
6 2,000 160 0.6
200 210.00 218.00
3 1,000 80 0.3
260.40
238.94
315.70
293.02
235.00
300.42
162.40
275.27
150
136.00
100 0 0 0 0.0
2016 2017 2018 2019 2016 2017 2018 2019
Dec 15
Dec 16
Dec 17
Dec 18
Dec 19
Market Price per Share Net Asset Value per
Highest Market Price Lowest Market Price
- Bank Share - Bank
Closing Price as at 31st December Volume Traded (No. of Shares) Price to Book Value Ratio (Times) - Bank (RHS)
Turnover (RHS)
Sampath Bank PLC - Ordinary Shares

Frequency Distribution of Shareholders as at 31st December 2019
Share Range Resident Non-Resident Total

Shareholders
Shareholders
Shareholders
Shares
Shares
Shares
No. of
No. of
No. of
No. of
No. of
No. of
%
%
1-250 7,236 33.02 491,965 0.13 82 0.37 7,835 0.00 7,318 33.40 499,800 0.13
251-500 4,351 19.86 1,580,493 0.41 51 0.24 18,371 0.00 4,402 20.09 1,598,864 0.42
501-1,000 2,753 12.56 2,011,857 0.53 37 0.17 26,133 0.01 2,790 12.73 2,037,990 0.53
1,001-2,000 2,405 10.98 3,397,407 0.89 37 0.17 51,190 0.01 2,442 11.15 3,448,597 0.90
2,001-5,000 2,489 11.36 7,848,520 2.06 45 0.21 144,508 0.04 2,534 11.56 7,993,028 2.10
5,001-10,000 1,013 4.62 7,133,643 1.87 24 0.11 154,795 0.04 1,037 4.73 7,288,438 1.91
10,001-20,000 634 2.89 8,772,753 2.30 26 0.12 373,038 0.10 660 3.01 9,145,791 2.40
20,001-30,000 240 1.10 5,797,128 1.52 7 0.03 184,952 0.05 247 1.13 5,982,080 1.57
30,001-40,000 107 0.49 3,733,928 0.98 3 0.01 99,439 0.03 110 0.50 3,833,367 1.01
40,001-50,000 68 0.31 3,049,622 0.80 2 0.01 91,994 0.02 70 0.32 3,141,616 0.82
50,001-100,000 110 0.50 7,942,384 2.08 5 0.02 324,239 0.08 115 0.52 8,266,623 2.17
100,001-1,000,000 132 0.60 39,290,676 10.30 21 0.10 7,456,023 1.96 153 0.70 46,746,699 12.25
1,000,001-Over 23 0.10 212,902,138 55.81 12 0.05 68,572,954 17.98 35 0.16 281,475,092 73.79
Total 21,561 98.39 303,952,514 79.68 352 1.61 77,505,471 20.32 21,913 100.00 381,457,985 100.00
118
6DPSDWK%DQN3/&2UGLQDU\6KDUHV
Top 20 Shareholders
No. Shareholder Name 31st December 2019 31st December 2018*

No. of Shares 5DWLR No. of Shares 5DWLR
1 VALLIBEL ONE PLC 57,039,028 14.95 42,003,031 14.95

2 (03/2<((63529,'(17)81' 38,041,260 9.97 28,013,244 9.97
3 MR Y S H I SILVA ** 31,266,429 8.20 28,038,662 9.98
4 %%+0$77+(:6,17(51$7,21$/)81'60$77+(:6
$6,$*52:7+)81' 21,899,216 5.74 16,126,387 5.74
5 AYENKA HOLDINGS PRIVATE LIMITED 17,787,054 4.66 491,000 0.17
6 526(:22'397/,0,7('$&&281712 16,862,162 4.42 11,827,658 4.21
7 %%+0$77+(:6(0(5*,1*$6,$)81' 12,474,412 3.27 8,406,406 2.99
8 &,7,%$1.1(:<25.6$125*(6%$1.$&&2817 11,404,089 2.99 8,343,884 2.97
9 3+2(1,;9(1785(635,9$7(/,0,7(' 8,303,325 2.18 5,632,542 2.01
10 AKBAR BROTHERS PVT LTD A/C NO 1 8,052,041 2.11 5,593,255 1.99
11 (03/2<((675867)81'%2$5' 5,054,604 1.33 2,681,249 0.95
12 SEYLAN BANK PLC/W D N H PERERA 4,307,382 1.13 3,031,000 1.08
13 3(0%(5721$6,$123325781,7,(6)81' 4,246,166 1.11 2,899,998 1.03
14 6$03$7+%$1.3/&$&&2817126$03$7+%$1.3(16,21)81' 3,848,882 1.01 3,502,867 1.25
15 -,1$'$6$%527+(56397/7' 2,839,629 0.74 2,535,653 0.90
16 %1<06$195(0$*1$80%5(//$)81'3/& 2,689,055 0.70 2,378,973 0.85
17 025*$167$1/(<$1'&2//&5:&)5217,(50$5.(76(48,7<
0$67(5)81' 2,664,471 0.70 1,703,299 0.61
18 65,/$1.$,1685$1&(&25325$7,21/7'/,)()81' 2,546,249 0.67 171,000 0.06
19 67$7(675((7/8;(0%285*&266%7$//,$1&(%(5167(,11(;7
(0(5*,1*0$5.(760$67(5)81'6,&$96,)6&63 2,527,117 0.66 1,860,947 0.66
20 SSBT-AL MEHWAR COMMERCIAL INVESTMENTS L.L.C. 2,432,466 0.64 997,000 0.35
256,285,037 67.18 176,238,055 62.72
Total No. of shares registered 381,457,985 100.00 280,902,248 100.00

Total No. of shares unregistered - - - -
Total No. of shares issued 381,457,985 100.00 280,902,248 100.00
Shares held by Directors 612,587 0.16 35,046 0.01

Shares held by Institutions 278,106,374 72.91 193,294,945 68.81
Balance held by Others 102,739,024 26.93 87,572,257 31.18
Total No. of shares issued 381,457,985 100.00 280,902,248 100.00
No. of Public shareholders 21,902 19,191

% Shares held by Public 90.62 88.74
% Shares held by Directors and Related Parties 9.38 11.26
* Shareholding as at 31st December 2018 of the top twenty shareholders as at 31st December 2019.
** Mr Rushanka Silva, the Managing Director of Indra Traders (Pvt) Ltd., was appointed as a Non-Executive, Non-Independent Director of the Bank
ZLWKHƩHFWIURPVW6HSWHPEHU$FFRUGLQJO\WKHVKDUHKROGLQJRI0U<6+,6LOYDZKRLVWKHPDLQVKDUHKROGHURI,QGUD7UDGHUV3YW/WG
has been excluded from the public shareholding of the Bank.
As at 31st December 2019 2018
Number of public shareholders 21,902 19,191

Percentage of public holding 90.62% 88.74%
)ORDW$GMXVWHG0DUNHW&DSLWDOLVDWLRQ Rs 56 Bn Rs 59 Bn
Bank complies with the minimum public holding requirement under option 1 of the listing rules section 7.13.1 (a).
119
INVESTOR
INFORMATION
Dividend Payment Details
Year Total Dividend Cash Dividend Scrip Dividend 3URƪWIRU Dividend

Dividend Paid per Share per Share per Share the Year Payout Ratio
5V0Q 5V 5V 5V 5V0Q
1988 8.80 0.50 0.50 n/a 27 32.59%

1989 13.10 0.75 0.75 n/a 20 65.50%
1990 8.90 0.50 0.50 n/a 10 89.00%
1991 17.70 0.50 0.50 n/a 41 43.17%
1992 35.40 1.00 1.00 n/a 71 49.86%
1993 35.40 1.00 1.00 n/a 122 29.02%
1994 44.30 1.25 1.25 n/a 172 25.76%
1995 53.10 1.50 1.50 n/a 241 22.03%
1996 53.10 1.50 1.50 n/a 282 18.83%
1997 53.10 1.50 1.50 n/a 322 16.49%
1998 53.10 1.50 1.50 n/a 372 14.27%
1999 (Interim) 116.90 3.30 n/a
4.00 261 54.29%
1999 (Final) 24.80 0.70 n/a
2000 58.70 1.75 1.75 n/a 402 14.60%
2001 52.14 1.75 1.75 n/a 322 16.19%
2002 88.57 2.00 2.00 n/a 441 20.08%
2003 (Interim) 59.78
2.00 2.00 n/a 561 14.58%
2003 (Final) 21.99
2004 (Interim) 65.98
2.00 2.00 n/a 621 16.15%
2004 (Final) 34.30
2005 (Interim) 87.14
2.00 2.00 n/a 821 14.54%
2005 (Final) 32.21
2006 155.47 2.50 2.50 n/a 1,028 15.12%
2007 206.66 3.00 3.00 n/a 1,052 19.64%
2008 256.65 4.00 4.00 n/a 1,414 18.15%
2009 436.19 6.25 6.25 n/a 2,098 20.79%
2010 1,235.86 8.09 n/a 8.09 3,303 37.42%
2011 1,426.98 9.00 4.50 4.50 3,819 37.37%
2012 1,954.10 12.00 6.00 6.00 5,230 37.36%
2013 1,342.63 8.00 8.00 n/a 3,430 39.13%
2014 1,847.01 11.00 5.00 6.00 4,914 37.59%
2015 2,240.06 13.00 6.00 7.00 6,134 36.52%
2016 (Interim) 2,477.73 n/a 14.00
18.75 9,125 36.85%
2016 (Final) 884.41 4.75 n/a
2017 4,598.43 17.20 n/a 17.20 12,104 38.00%
2018 4,564.66 16.25 5.00 11.25 12,143 37.59%
2019 (Proposed) 4,482.13 11.75 11.75 n/a 11,151 40.19%
Record of Scrip Issues
Year Issue Basis/ No. of Consideration Contribution to Reason for Issue

Proportion Shares Issued per Share Stated Capital
5V 5V0Q
2010 Interim Scrip Dividend for 2010 1 for 120.74 627,596 326.00 204.6 Increase stated capital
2011 Final Scrip Dividend for 2010 1 for 43.39 3,521,294 260.00 915.5 Increase stated capital
2016 Final Scrip Dividend for 2015 1 for 36.91 4,668,414 233.44 1,089.8 Increase stated capital
2017 Interim Scrip Dividend for 2016 1 for 19.22 9,209,419 242.55 2,233.7 Increase stated capital
120
GRI 102-25
Record of Bonus Issues and Subdivisions
Year Issue Basis/Proportion No. of Reason for Issue

Shares Issued
2004 Bonus Issue 1 for 6 7,380,817 %HQHƪWWRVKDUHKROGHUV

2010 Consolidation and Subdivision 11 for 10 6,888,762 %HQHƪWWRVKDUHKROGHUV
2010 Subdivision 1 for 1 76,403,986 %HQHƪWWRVKDUHKROGHUV
Record of Rights Issues
Year Issue Basis/Proportion No. of Price Contribution to

Shares Issued per Share Stated Capital
5V 5V0Q
2005 Rights Issue 2005 1 for 3 held 17,221,907 60.00 1,033.3

Employee Share Option Plan
Capitalised Year Issue No. of Price Contribution to Reason for Issue

Shares Issued per Share Stated Capital
5V 5V0Q
2011 ESOP 2010 524,924 80.00 42.0 %HQHƪWIRUVWDƩPHPEHUV

2012 ESOP 2010 2,200,436 80.00 176.0 %HQHƪWIRUVWDƩPHPEHUV
Related Party Transactions Exceeding 10% of the Equity or 5% of the Total Assets of the Bank
'LVFORVXUHDVSHU6HFWLRQRIWKH&6(/LVWLQJ5XOHV
None of the transactions carried out by the Bank with the Related Parties have exceeded the aggregate monetary value of 10% of the shareholders’
equity of the Bank or 5% of the total assets of the Bank as at 31st December 2019.
Debenture Information
$0DUNHW9DOXHV
Debentures - 2014/2019 +LJKHVW5V /RZHVW5V /DVW7UDGHG5V

2019 2018 2019 2018 2019 2018
Fixed: 8.25% 100.00 90.28 98.03 90.00 98.03 90.28

Fixed: 8.10% n/t n/t n/t n/t n/t n/t
n/t - not traded
Debentures - 2014/2019 were redeemed on 14th December 2019.

2019 2018 2019 2018 2019 2018
Fixed: 9.90% 98.94 100.00 97.70 100.00 98.85 100.00

Floating n/t n/t n/t n/t n/t n/t
n/t - not traded
121
INVESTOR
INFORMATION

2019 2018 2019 2018 2019 2018
Fixed: 12.75% 100.00 100.50 100.00 99.00 100.00 100.00

Floating 100.00 98.50 97.50 98.50 100.00 98.50

2019 2018 2019 2018 2019 2018
Fixed: 12.50% n/t n/t n/t n/t n/t n/t

n/t - not traded

2019 2018 2019 2018 2019 2018
Fixed: 12.50% 101.52 101.64 99.51 101.64 101.52 101.64

2019 2018 2019 2018 2019 2018
Fixed: 13.90% 104.85 n/a 100.28 n/a 104.85 n/a

%,QWHUHVW5DWHV
Debentures - 2014/2019 2019 2018

Coupon Rate (ƩHFWLYH5DWH Coupon Rate (ƩHFWLYH5DWH
Fixed: 8.25% 8.25% 8.25% 8.25% 8.25%

Fixed: 8.10% 8.10% 8.26% 8.10% 8.26%
Debentures- 2014/2019 were redeemed on 14th December 2019.
Debentures - 2015/2020 2019 2018

Fixed: 9.90% 9.90% 10.15% 9.90% 10.15%

Floating * * * *
* Floating rate is equivalent to the six month Treasury Bill rate (net) plus 1.25% p.a. payable semi-annually.
Debentures - 2016/2021 2019 2018

Fixed:12.75% 12.75% 12.75% 12.75% 12.75%

Floating * * * *
*Floating rate is equivalent to the six month Treasury Bill rate (gross) plus 1.0% p.a. payable semi-annually.
Debentures - 2017/2022 2019 2018

Fixed: 12.50% 12.50% 12.89% 12.50% 12.89%
122
Debentures - 2018/2023 2019 2018

Fixed: 12.50% 12.50% 12.89% 12.50% 12.89%
Debentures - 2019/2024 2019 2018

Fixed: 13.90% 13.90% 13.90% n/a n/a

&,QWHUHVW5DWHRI&RPSDUDEOH*RYHUQPHQW6HFXULWLHV*URVV5DWHV
3 Months Treasury Bill 7.51% 9.69%

6 Months Treasury Bill 8.02% 10.02%
5 Years Treasury Bond 9.94% 11.56%
'&XUUHQW<LHOGDQG<LHOGWR0DWXULW\
Debentures - 2014/2019 Fixed Fixed

8.25% 8.10%
2019 2018 2019 2018
Current yield 8.42% 9.14% n/t n/t

Yield to maturity of last trade 12.14% 15.96% n/t n/t
n/t - not traded
Debentures - 2014/2019 were redeemed on 14th December 2019.
Debentures - 2015/2020 Fixed

Floating
9.90%
2019 2018 2019 2018
Current yield 10.27% 10.15% n/t n/t

Yield to maturity of last trade 11.19% 9.89% n/t n/t
n/t - not traded

Floating
12.75%
2019 2018 2019 2018
Current yield 12.75% 12.75% 9.86% 11.19%

Yield to maturity of last trade 12.60% 12.66% 9.63% 11.27%

12.50%
2019 2018
Current yield n/t n/t

Yield to maturity of last trade n/t n/t
n/t - not traded
123
INVESTOR
INFORMATION

12.50%
2019 2018
Current yield 12.31% 12.68%

Yield to maturity of last trade 11.96% 12.03%

13.90%
2019 2018
Current yield 13.26% n/a

Yield to maturity of last trade 12.35% n/a
(5DWLRV%DQN
2019 2018
Debt to equity ratio (%) 61.5 71.2

Interest cover (Times) 4.9 5.5
Quick asset ratio (%) 71.3 75.6
Utilisation of Funds Raised via Capital Markets

Funds Raised from Debenture Issue 2019
Objective Objective as Amount Proposed Amount % of total Amounts % of &ODULƪFDWLRQLI

number per Prospectus allocated date of allocated proceeds utilised utilisation not fully utilised
as per utilisation from against including where
Prospectus as per proceeds allocation the funds are
Prospectus invested
$ % %$
1 To increase the
loan portfolio Rs 7.0 Bn 28.08.2019 Rs 7.0 Bn 100% Rs 7.0 Bn 100% Fully utilised
2 To increase the
Tier II capital
base of the Bank Rs 7.0 Bn 31.03.2019 Rs 7.0 Bn 100% Rs 7.0 Bn 100% Fully utilised
Funds Raised from Rights Issue 2019
Objective Objective as Amount Proposed Amount % of total Amounts % of &ODULƪFDWLRQLI

number per Prospectus allocated date of allocated proceeds utilised utilisation not fully utilised
as per utilisation from against including where
Prospectus as per proceeds allocation the funds are
Prospectus invested
$ % %$
1 To increase the
CET I capital of
the Bank Rs 12.1 Bn 30.06.2019 Rs 12.1 Bn 100% Rs 12.1 Bn 100% Fully utilised
2 To increase the
loan portfolio Rs 12.1 Bn 20.12.2019 Rs 12.1 Bn 100% Rs 12.1 Bn 100% Fully utilised
Funds Raised in Previous Years

ƶHIXQGVUDLVHGYLDFDSLWDOPDUNHWVLQWKHSUHYLRXV\HDUVZHUHIXOO\XWLOLVHGIRUWKHREMHFWLYHVVWDWHGLQWKHUHOHYDQW3URVSHFWXVHV
124
PLANNING OUR WAY INTO THE

FUTURE
RISK & GOVERNANCE
Risk Management Report | 126

Compliance | 137
Corporate Governance | 138
Board Audit Committee Report | 185
Board Human Resources and Remuneration Committee Report | 188
Board Nomination Committee Report | 189
Board Integrated Risk Management Committee Report | 190
Board Related Party Transactions Review Committee Report | 192
RISK MANAGEMENT GRI 102-15,30/205-1
REPORT
Overview to maintain a high level of awareness regarding by ensuring all material risks and emerging
ULVNWRKHOSWKHPPDNHSURSHUMXGJHPHQWV risks are recognised, assessed, escalated and
Risk Management is a fundamental
and take appropriate actions based on good DGGUHVVHGLQDWLPHO\PDQQHUƶH%RDUGRI
component of Sampath Bank's Corporate
sense and ethical standards. To achieve this, Directors play a key role in establishing the
*RYHUQDQFHVWUDWHJ\ƶH%DQN
VDSSURDFK
the Board of Directors and the Corporate Bank’s risk appetite, which is generally reviewed
WR5LVN0DQDJHPHQWLVEDVHGRQWKHƶUHH
Management take proactive measures to instill annually or earlier based on the need, in order
Lines of Defence" model which aims to create to re-align the Bank's risk-taking with the
the principles of responsible risk management
a robust governance structure backed by clear statutory requirements, industry norms, strategic
among employees at all levels of the Bank.
demarcation of roles and responsibilities. EXVLQHVVREMHFWLYHVDQGFDSLWDOSODQQLQJ
ƶHVHHƩRUWVSURYLGHDIRXQGDWLRQIRU%DQN
ƶHƶUHH/LQHVRI'HIHQFHPRGHOVHHNVWR DFWLYLWLHV'HƪQLQJRIULVNDSSHWLWHLVGHWHUPLQHG
employees to develop appropriate values and
DFKLHYHWZRNH\REMHFWLYHV by the Bank’s operational policies and
ethics to guide them when addressing risks in
procedures, monitoring metrics, limit system
FUHDWHDFRKHUHQWIRXQGDWLRQIRUHƩHFWLYH their daily work.
and internal controls. It is further supported by
management and governance of material regular and ongoing communication between
Risk Management Framework
risks by applying the principles of sound VHQLRUPDQDJHPHQWDQGRSHUDWLRQDOVWDƩ
JRYHUQDQFHIRUWKHLGHQWLƪFDWLRQ Sampath Bank has invested in establishing
measurement, monitoring and controlling unsurpassed risk management architecture, Stress Testing
all material risk categories applicable to which includes an independent Risk
Stress testing is an important tool used by
the Bank and Management Department, Board-approved
the Bank as a part of its risk management
risk appetite and risk tolerance levels along
programme. It includes both sensitivity analysis
2) ensure that risk taking activities are in line ZLWKZHOOGHƪQHGULVNPDQDJHPHQWSROLFLHV
and scenario analysis as well as the Internal
with Sampath Bank's strategy and risk DQGSURFHGXUHVWRVXSSRUWHƩHFWLYH%DQNZLGH
Capital Adequacy Assessment Process (ICAAP:
appetite. management of risk. Sampath Bank's risk
DJURXSZLGHH[HUFLVHVSDQQLQJGLƩHUHQWULVN
management architecture is geared to identify
types) which is performed annually to determine
Risk Culture and mitigate emerging risks in order to maintain
the level of capital to be maintained against all
Sampath Bank is of the opinion that all satisfactory capital levels.
risks and ensure that Bank has adequate capital
employees should not merely be risk averse to support all risks.
but be willing to consciously take acceptable Risk Appetite
risks in order to grow the business. Premised ƶH%DQNţVULVNDSSHWLWHIUDPHZRUNSURYLGHV Stress tests are done for Credit, Market, Liquidity
on this, the Bank strives to foster a sound risk measurable targets and tolerance thresholds and Operational Risk categories and cover
culture where all employees remain committed WRVWUHQJWKHQHƩHFWLYHULVNPDQDJHPHQW
integrated scenarios as well, which are discussed
XQGHUHDFKVHFWLRQƶHUHVXOWVRIVWUHVVWHVWV
First Line of Second Line of ƶLUG/LQHRI DORQJZLWKWKHƪQGLQJVRIVHQVLWLYLW\DQDO\VLVDUH
submitted quarterly to the Board Integrated Risk
Defence Defence Defence
Management Committee (BIRMC) for reviewing.
ƶHUHVXOWVRIVWUHVVWHVWVDUHDOVRXVHGWR
alert the Board of Directors and the Corporate
Business Lines/Corporate Risk Management Assurance Management regarding adverse unexpected
Functions & Controls outcomes related to a broad variety of risks.
ƶLVKHOSVWKH%RDUGRI'LUHFWRUVWRDVVHVV
capital adequacy and identify potentially
Ownership for the day-to- Direction for Risk Management Providing Independent and risky portfolio segments as well as inherent
day management of risk, and Compliance facilitates REMHFWLYHDVVXUDQFHRQWKH5LVN systematic risks and develop appropriate
ensures that risks accepted high levels of risk awareness Management processes and
are within the Bank’s throughout the organisation. practices in place. contingency plans, exit strategies and
risk appetite and risk Independently monitors mitigating actions.
management policies. HƩHFWLYHLPSOHPHQWDWLRQRI5LVN
Management Framework. ƶH%DQNLQLWLDWHGWRUHYLHZWKH,&$$3SURFHVV
during December 2019. Implementation of
Business Heads/Branch Risk Management Internal/External Audit
new stress testing modules covering integrated
Managers Department Function scenario analysis and macroeconomic factors
Compliance Department will be introduced with the review process.
126
Functional Structure of the Integrated Risk Management Framework of the Bank/Group
Board of Directors
Board Integrated Risk Management

Managing Director
Committee (BIRMC)
*URXS&KLHI&RPSOLDQFH2ƬFHU &KLHI,QIRUPDWLRQ6HFXULW\2ƬFHU *URXS&KLHI5LVN2ƬFHU
AML and Regulatory Information Security ,QWHJUDWHG5LVN0DQDJHPHQW8QLW

&RPSOLDQFH8QLW Department
&UHGLW5LVN0DQDJHPHQW8QLW 0DUNHW5LVN0DQDJHPHQW8QLW 2SHUDWLRQDO5LVN0DQDJHPHQW8QLW
Credit Risk Management Function Credit Risk Review Function
Head of Risk Management - CEO - Sampath Information Manager -

Siyapatha Finance PLC CEO - SC Securities (Pvt) Ltd. Technology Solutions Ltd. Sampath Centre Ltd.
Risk Governance Committees
Board Strategic Planning

Board Audit Committee
Committee
Board Human Resources & Board Shareholder
Remuneration Committee Relations Committee
Board Nomination Committee Board Treasury Committee

Board Level
Board Integrated Risk Committees
Board Marketing Committee
Management Committee
Board Related Party
Board IT Committee
Transactions Review Committee
Board Credit Committee Board Capital Planning Committee

SAMPATH
BANK
Internal Capital Adequacy Assessment Credit Policy, Risk and Portfolio Review
Process (ICAAP) Committee Committee
Outsourcing Committee Executive Advances Committee
Procurement Committee Executive Advances Committee

Level
Sri Lanka Financial Reporting Standards Committees Asset & Liability Management
(SLFRS) Committee Committee (ALCO)
Corporate Management Committee Investment Committee
Internal Control Over Financial Reporting

IT Steering Committee
(ICOFR) Committee
Risk & Compliance Committee Information Security Committee
127
RISK MANAGEMENT
REPORT
Sampath Bank’s Board ƶH&UHGLW5LVN0DQDJHPHQW8QLW&508 y Review of Board-approved credit policies,

SOD\VDPDMRUUROHDVWKHVHFRQGOLQHRI procedures and framework based on the
of Directors is the key GHIHQFHƶH\DUHUHVSRQVLEOHIRUPRQLWRULQJ need
governing body in charge analysing, and making recommendations
of providing oversight concerning Credit Risk as well as formulating y Ensuring that there is expert scrutiny and
and executing plans in connection with matters independent approval of the credit risk
for the implementation assessment models
pertaining to Credit Risk Management.
of a suitable Credit Risk
Management strategy. Sampath Bank's approach to Credit Risk 8QGHUSLQQHGE\WKHVHSULQFLSOHVDQG
Management is based on the following key supported by the CBSL guidelines on Corporate
principles; Governance, the Integrated Risk Management
Managing Material Risks Framework for Licensed Banks as well as the
Credit Risk y Maintaining a strong culture of Basel requirements, Sampath Bank takes a
&UHGLW5LVNLVGHƪQHGDVWKHSRWHQWLDOORVVWR responsible lending as articulated in the stringent approach towards mitigating both
the Bank caused by the failure of a borrower(s) credit risk policies and the comprehensive Pre-Credit Risk and Post-Credit Risk.
to meet their payment obligations in appetite limit structure
Pre-Credit Risk Management
accordance with agreed terms and conditions.
y &RPSUHKHQVLYHO\GHƪQHGSROLFLHV
ƶH%DQNţV&UHGLW5LVNDULVHVPDLQO\DVD Managing Counterparty Credit Risk
and procedures are in place to ensure
result of the core business activities involving ƶLVDSSURDFKH[DPLQHVHDFKLQGLYLGXDO
proactive Credit Risk Management
corporate and retail loans and advances. transaction for its own merits as well as
practiced within the Bank. Risk
the customers’ ability to meet repayment
Credit Risk Management Structure and 0DQDJHPHQW8QLWHQVXUHVDGKHUHQFHWR
REOLJDWLRQV)URQWOLQHVWDƩZKRDUHWUDLQHG
Approach such policies and procedures in order to
in credit evaluation techniques, serve as the
manage Credit Risk.
Sampath Bank’s Board of Directors is the key ƪUVWOLQHRIGHIHQFHLQVFUHHQLQJDFXVWRPHUV

governing body in charge of providing oversight creditworthiness. Higher authorities are then
y Segregation of duties and delegated
for the implementation of a suitable Credit Risk required to conduct a more in-depth pre-
authority levels between loan origination,
0DQDJHPHQWVWUDWHJ\ƶH%RDUG,QWHJUDWHG credit evaluation to determine the customers'
administration and risk
Risk Management Committee (refer page creditworthiness and repayment capacity
190 of this report for more details regarding y ,GHQWLƪFDWLRQDVVHVVPHQWDQG using the internally developed borrower rating
the BIRMC) shall provide the overall direction measurement of Credit Risk clearly and scheme to demonstrate their probability of
to the Bank and make recommendations to accurately from the level of individual GHIDXOWƶHERUURZHUUDWLQJV\VWHPLVDSSOLHG
the Board of Directors on all aspects of risk facility up to the total portfolio supported to individuals and corporates to measure
PDQDJHPHQWƶHEXVLQHVVOLQHVVHUYHDV by a robust Credit Risk reporting and VSHFLƪFDVSHFWVVXFKDVWKHERUURZHUţV
WKHƪUVWOLQHRIGHIHQFHDQGWKH\DORQJZLWK portfolio management process ƪQDQFLDOSRVLWLRQFDVKƫRZVUHOHYDQW
the Credit Policy, Risk and Portfolio Review qualitative factors and debt repayment history
Committee are primarily responsible for the y Accepting and managing the Bank’s Credit
to help realistically establish their repayment
PDQDJHPHQWRI&UHGLW5LVNƶH\DUHUHTXLUHG Risk in line with the Board-approved credit
capacity for the foreseeable future. Borrower
to comply with the Bank's Credit Policy and risk appetite framework
ratings are routinely reviewed and updated
ensure adherence to all relevant credit and periodically.
y 'HƪQLQJLPSOHPHQWLQJDQGFRQWLQXDOO\
OHQGLQJVWUDWHJLHVDQGREMHFWLYHVLQRUGHUWR
reviewing the Bank's risk appetite
maintain adequate control over Credit Risk. Furthermore, independent review of credit
under actual and stressed conditions to
HƩHFWLYHO\DOLJQWRFKDQJHVLQWKHPDUNHW proposals, above a pre-approved threshold is
environment FDUULHGRXWE\WKH&UHGLW5LVN0DQDJHPHQW8QLW
128
Seven credit rating models Risk Appetite Parameters - Credit Risk

were revisited with the Credit Quality
intention of revamping 1 Gross NPA (%)
credit rating models 2
2.1 Net NPA (%)
2.2 Net NPA (%) - excluding pawning
FXUUHQWO\LQSODFHƶLVLVWR
3.1 3URYLVLRQ&RYHUVSHFLƪFSURYLVLRQRQO\
support compliance with 3 3.2 Realisable Value of Collateral in NPA Portfolio (%)
6/)56UHTXLUHPHQWVƶH 3.3 Impairment/Net NPA (%)
services of an independent 4 Provision Cover (%) - with general provision
consultant were sought 5 Open Credit Exposure/Capital Base (%)
Product-wise NPA
to carry out the risk rating
6.1 Sevana (Housing) (%)
model validation process. 6 6.2 Leasing (%)
%DVHGRQWKHƪQGLQJVRIWKH 6.3 Credit Card (%)
study, the CRMU commenced Based on SLFRS Concepts
7.1 Total Impairment/Total Advance Portfolio (%)
implementing of necessary
7.2 Pawning Impairment/Pawning Portfolio (%)
changes as required. 7
(Total Impairment - Pawning Impairment)/(Total Advances - Pawning
7.3
Advances) (%)
Based on Rating Grades (% of Total Advance Portfolio)
Risk Grade-wise Distribution of the
8.1 High Grades (A+ to B+)
Advance Portfolio
8.2 Cumulative High Grades (A+ to B+) and Standard Grades (B to C+)
%
8 8.3 Substandard Grades (C to C-)
6.6 29.0
8.4 Impaired (D)
8.5 8QUDWHG
15.3 Credit Concentration
9 Maximum Single Borrower Exposure (Individual)
10 Maximum Single Borrower Exposure (Group)
Aggregate Exposure (funded + non funded) to Large Borrowers/Total
11
49.1 Exposure (funded + non funded) (%)
Aggregate Exposure (funded + non funded) to Large Borrowers/Capital Base
12
A (High Credit Quality) (%)
B (Moderate Credit Quality) 13 Aggregate Exposure (funded only) to Large Borrowers/Capital Base (%)
C (Marginal Credit Quality)
14 Related Party Accommodation/Regulatory Capital (%)
D (Exceptionally High Credit Risk)
15 Lending to Agriculture (%)
16 Exposure Against Shares/Credit Portfolio (%)
Managing Credit Concentration Risk
17.1 Top 20 Advances/Total Advances (%)
As part of its mitigative strategy to minimise 17 17.2 Top 20 Advances (Limits)/Tier I Capital (Times)
Credit Concentration Risk, the Bank has 17.3 Top 20 Advances (Limits)/Capital Base (Times)
HVWDEOLVKHGDSSHWLWHOLPLWVWRGHƪQHORZ 18 2Ʃ6KRUH([SRVXUH7RWDO$GYDQFHV
PD[LPXPH[SRVXUHVIRUVSHFLƪFERUURZHUV 19.1 [OD + STL (Money Market)]/Total Advances (%)
VHFWRUVSURGXFWVHWFƶHVHOLPLWVDUHUHYLHZHG
19 19.2 OD/Total Advances (%)
periodically.
19.3 STL (Money Market)/Total Advances (%)
20 6HFWRUZLVH&RQFHQWUDWLRQ++,6FRUH+HUƪQGDKO+LUVFKPDQ,QGH[6FRUH
21 Product-wise Concentration (HHI Score)
129
RISK MANAGEMENT
REPORT
Stress Testing – Credit Risk Actions for 2019

Stress testing is also an important part of the Bank's credit portfolio management strategy and a
Strengthening Risk Governance
wide range of stress testing scenarios, which are listed below, are applied to determine the impact
on the Bank's credit portfolio. y Seven credit rating models were revisited
with the intention of revamping credit
rating models currently in place.
Credit Risk Stress Tests Parameters
ƶLVLVWRVXSSRUWFRPSOLDQFHZLWK
1 Credit Risk - Asset Downgrade Increasing the direct non-performing facilities over the direct 6/)56UHTXLUHPHQWVƶHVHUYLFHV
performing facilities for the entire portfolio of an independent consultant were
2 Credit Concentration Risk - Default of the Largest Borrowers by classifying the credit sought to carry out the risk rating model
Large Borrowers Default granted to them as non-performing (Substandard asset class) YDOLGDWLRQSURFHVV%DVHGRQWKHƪQGLQJV
3 Credit Concentration Risk - % increase in concentration under stress, measured as per RIWKHVWXG\WKH&508FRPPHQFHG
HHI ++,+HUƪQGDKO+LUVFKPDQ,QGH[ implementing of necessary changes as
4 Decrease in Collateral Value - % decrease in total security value of the entire portfolio required.
(Total security value)
y As part of the ongoing improvement
5 Decrease in Collateral Value - % decrease in security value (property) of the entire portfolio
programme, the Credit Policy and
(Property value) Credit Risk Management Policies
were amended and updated to take
cognisance of internal business
Post-Credit Risk Management Analysis of risk elevated industries and developments as well as external
(ƩHFWLYHZDWFKOLVWLQJSURFHVVVXSSRUWHGE\ VKDULQJWKHƪQGLQJVZLWKDOOJRYHUQDQFH changes arising from the immediate
SHULRGLFORDQUHYLHZPHFKDQLVP ERGLHVDQGEXVLQHVVXQLWV operating environment .
ƶH&UHGLW5LVN0DQDJHPHQW8QLW&508 ƶH&508LGHQWLƪHVHOHYDWHGULVNLQGXVWULHV
y New sector limits along with clear sector
maintains a comprehensive framework of Early and provides recommendations to manage any
categorisation guidelines were issued
Warning Signals (EWS) to ensure proactive adverse impact to the Bank’s credit portfolio.
in order to control Credit Concentration
monitoring. Based on this framework, the ƶLVDQDO\VLVDGGLWLRQDOO\VXSSRUWVWKH%DQN
V
Risk.
&508LVHPSRZHUHGWROLVWDQGGHOLVWZDWFK impairment assessment process.
listed customers in order to safeguard the Enhancing Risk Monitoring
credit quality of the portfolio. CRMU's Role in Impairment assessment Mechanisms
SURFHVV
y Several new post-credit monitoring
Comprehensive analysis of Advance Portfolio ƶH&508FRQGXFWVDQLQGHSHQGHQWUHYLHZ protocols were also introduced to ensure
DQG7RS%RUURZHUVRIWKH%DQN RIWKHLQGLYLGXDOO\VLJQLƪFDQWORDQLPSDLUPHQW stringent post-credit follow up with the
Top 30 borrowers' segment represents around process, by way of checking the reasonability &508EHLQJJUDQWHGWKHDXWKRULW\WR
20% of the Bank’s credit portfolio. Hence the and accuracy of the information provided by place customers on the watch list. As
&508FDUULHVRXWSHULRGLFDQDO\VLVWRPRQLWRU respective business units. SDUWRIWKHVDPHHƩRUWWKHUHFRYHU\
WKHULVNSURƪOHRIWKLVVHJPHQW)XUWKHU&508 procedure was revised with tighter
carries out a comprehensive analysis of total Credit Risk Update 2019 controls to ensure more proactive follow
DGYDQFHSRUWIROLRRIWKH%DQNƶHVHDQDO\VHV up to prevent customers reaching the
aim to align the portfolio in the right direction As was the case across the industry,
arrears category.
and eliminate the potential adverse impact of 6DPSDWK%DQN
V&UHGLW5LVN3URƪOHZDV
concentration of exposures, that will safeguard DWDVOLJKWO\HOHYDWHGOHYHOLQƶLV Improving Risk Reporting Frameworks
the Bank's bottom line. was mainly due to the challenges arising
y Revamping of the existing reports
as a result of the economic slowdown in
submitted to the Board, in the process of
5LVNDSSHWLWHOLPLWPRQLWRULQJ WKHFRXQWU\ZKLFKDƩHFWHGVHYHUDONH\
developing an automated dashboard to
Comprehensive risk appetite parameters have sectors such as the construction, transport
capture early warning signals to replace
been established in order to manage each sub and tourism. On the other hand, the
manual monitoring process.
risk category as described earlier while periodic Bank’s Credit Concentration Risk was well
monitoring is carried out and necessary managed.
6WDƩ&DSDFLW\%XLOGLQJ
recommendations are provided to control any
y ([WHQVLYHWUDLQLQJSURYLGHGWRVWDƩLQULVN
adverse impacts.
management.
130
Market Risk Managing Interest Rate Risk

Risk Appetite Parameters - Market Risk
0DUNHW5LVNLVGHƪQHGDVWKHOLNHOLKRRGRIORVV Interest Rate Risk is the risk of potential loss
in earnings that could arise from the possible 1. Foreign Exchange Rate Risk resulting from the Bank’s assets and liabilities
fall in value of investment or trading portfolios, 1.1 Net Open Position Overnight KDYLQJGLƩHUHQWUHSULFLQJFKDUDFWHULVWLFV
as a direct consequence of changes in market Limit of the Bank
variables such as interest rates, equity prices ƶH%DQN
VVWUDWHJ\LVWRPDQDJHLWVDVVHWVDQG
2. Liquidity Risk
and foreign exchange rates. liabilities and optimise Net Interest Margin
2.1 Liquid Assets Ratio
(NIM) by adequately controlling Interest Rate
Market Risk Management Structure and 2.2 Net Loans to Total Assets 5LVN7RDFKLHYHWKLVREMHFWLYH%RDUGDSSURYHG
Approach 2.3 Total Loans to Customer policies and prudential loss limits for trading
ƶH%DQN
VDSSURDFKWRPDQDJH0DUNHW Deposits book activities are in place.
Risk is based on comprehensive Market Risk 2.4 Liquid Assets to Short Term
Management Framework developed in line with Liabilities In addition, assessment of Interest Rate Risk
regulatory guidelines on Corporate Governance 2.5 Bulk Deposits to Total Deposits during internal capital calculation under
and the Integrated Risk Management Internal Capital Adequacy Assessment Process
2.6 Purchased Funds to Total Assets
Framework for Licensed Commercial Banks as (ICAAP) is done and reported to the Board
2.7 Commitments to Total Loans
well as the Basel recommendations. Sampath of Directors and to the CBSL. Stress Testing
Bank’s Market Risk Management framework and Scenario Analysis for trading book is also
is operationalised through a series of Board- Market Risk Update 2019 carried out using parameters mentioned
approved policies: the Market Risk Management above, and the results are reported to ALCO
During the year 2019, the Bank placed
Policy, ALCO Policy, Investment Policy, Liquidity and BIRMC for reviewing purposes. Further,
emphasis on further fortifying the
Management Policy, Treasury Policy and maturity gap analysis for interest rate sensitive
mechanisms in place to assess, measure
Board-approved limit framework for Market Risk assets and liabilities is carried out to determine
and monitor Foreign Exchange Rate,
Operation including Risk appetite limits. the vulnerability of assets and liabilities for
Interest Rate, Liquidity and Equity Risks.
various time bands – residual term to maturity
Accordingly, the Bank’s exposures and
ƶH%RDUGRI'LUHFWRUVDUHUHVSRQVLEOHIRU ƪ[HGUDWHRUUHVLGXDOWHUPIRUWKHLUQH[WUH
responses to movements are managed
reviewing and approving the relevant policies SULFLQJƫRDWLQJUDWH$OOH[FHSWLRQVLQLQWHUHVW
strictly within the Bank’s risk appetite to
and limit framework to govern the Bank's rate related limit monitoring are reported to the
PDLQWDLQƪQDQFLDOVWDELOLW\
trading activities and ensure their Market Risk ALCO and BIRMC on a frequent basis.
exposures are maintained within acceptable
OHYHOVƶH$VVHWDQG/LDELOLW\0DQDJHPHQW
Committee (ALCO) provides an oversight to Stress Testing Parameters for Market Risk
ensure required controls and procedures are in
Market Risk Stress Tests Parameters
place in line with the Board-approved policies
and limit framework, while the Market Risk 1 Interest Rate Risk in ƶUHHPRVWVHYHUHLPSDFWVFHQDULRVWRWKH%DQNţV(FRQRPLF
0DQDJHPHQW8QLWSOD\VDSURDFWLYHUROHLQ Banking Book - EAR and Value of Equity (EVE) and the Bank’s Earnings (EAR) due to
identifying, analysing, monitoring, measuring EVE changes in interest rates from -3.0% to +3.0%
and controlling Market Risk. As a part of their 2 Foreign Exchange Rate Impact of 5%, 10% and 15% of adverse LKR exchange rate
UROHWKH0DUNHW5LVN0DQDJHPHQW8QLWLV Risk movements, against all Foreign Currencies
required to apprise the Corporate Management 3 Equity Risk 10%, 25% and 50% impact (fall in market value) of Equity
and ALCO about adherence to prudential/risk Portfolio held by the Bank
parameters and also the aggregate total Market 4 Interest Rate Risk in Impact of 1%, 1.5% and 2% increase in Market Rates on the
Risk exposures assumed by the Bank at any Trading Book Mark to Market (MTM) gain/loss of the Government Securities
SRLQWRIWLPHƶHXQLWLVIXUWKHUUHVSRQVLEOH Trading Portfolio (in LKR)
for strengthening the risk-based culture at an
5 Liquidity Risk Stress Tests
operational level, through regular monitoring
5.1 Liquidity Risk Impact of 10%, 15% and 20% of shocks applied to deposits
and reporting of exceptions to the ALCO, BTC
maturing beyond 3 months and loans due within 3 months
and BIRMC.
5.2 Liquidity Crisis Impact of 2%, 6% and 10% fall in Liquid Liabilities on Liquid
Scenario Assets Ratio.
131
assessment of capital needs, (“the ICAAP”) Strategic Risk Management Structure and 2) to assess the Bank’s internal strengths and
DQQXDOO\ƶHUHVXOWVRIWKH,&$$3DUH Approach weaknesses in response to the market and
presented to BIRMC for review, challenge and ƶHSULPDU\PHDQVRIPDQDJLQJ6WUDWHJLF peers.
DSSURYDOƶH,&$$3ZKLFKLVUHFRPPHQGHG Risk is through a Board-approved Strategic
under the Basel III, Pillar II Supervisory Review Plan prepared annually to outline the future ƶHH[WHUQDODQDO\VLVWDNHVWKHIRUPRID
Process, describes how risks are assessed, direction of the Bank through a set of long- PESTLE analysis that considers the Political,
controlled, monitored, mitigated and reported, WHUPJRDOVREMHFWLYHVDQGSULRULWLHVDORQJ Economic, Social, Technological, Legal
and helps management determine what might with the actions needed to achieve them in (Regulatory) and Environmental aspects that
be required to maintain the Bank's solvency line with the Bank’s overall vision. It is the key are likely to have a bearing on the Bank’s ability
assuming certain stressed conditions. document used by the leadership to prioritise to achieve its Vision.
the allocation of resources, to strengthen the
Capital Risk Update 2019 Bank’s competitive position and facilitate ƶHLQWHUQDODQDO\VLVPHDQZKLOHVHHNVWR
LPSURYHGƪQDQFLDORXWFRPHV assess Sampath Bank’s current status in terms
In 2019, Sampath Bank remained well RIƪQDQFLDODQGKXPDQUHVRXUFHVLQSXWV
capitalised as the Bank took steps to ƶH6DPSDWK%DQN%RDUGRI'LUHFWRUVLVWKH operating methods or strategies (processes),
strengthen both its Tier I and Tier II capital apex body responsible for the Strategic Planning DQGUHVXOWVRURXWFRPHVRXWSXWVƶLVKHOSVWR
base. In February 2019, the Bank raised SURFHVVƶHWDVNRIIRUPXODWLQJQHZVWUDWHJLHV determine strengths and weaknesses vis-a-vis
Rs 7 Bn by way of a Basel III Compliant LVDFROODERUDWLYHHƩRUWEHWZHHQWKH6WUDWHJLF peers.
Debenture to reinforce Tier II Capital, while Planning Sub Committee and members of
the Rs 12.1 Bn raised by way of Rights Issue WKH&RUSRUDWH0DQDJHPHQW$VDƪUVWVWHSD ƶHLVVXHVHPHUJLQJIURPWKH6:27DQDO\VLV
LQ-XQHKHOSHGERRVW7LHU,&DSLWDORI broader planning cycle is considered, usually are recorded and analysed in detail by the
the Bank. three years, to determine where the Bank Strategic Planning Department, with a
DVSLUHVWREHDWWKHHQGRIWKHVSHFLƪHGSHULRG summary report containing key highlights
RIWLPHƶLVW\SHRIORQJUDQJHSODQQLQJWDNHV being presented to the Board Strategic
Actions for 2019 cognisance of the Bank’s current position as well Planning Sub Committee and the Board of
Enhancing Monitoring Mechanisms DVSURMHFWHGIXWXUHFRQGLWLRQVWRLGHQWLI\WKH 'LUHFWRUVIRUUHYLHZ%DVHGRQWKHƪQGLQJVRI
critical success factors for the Bank over the next the report, the Board will decide to revise the
ƶHVHUYLFHVRIDQLQGHSHQGHQWWKLUGSDUW\
few years. Based on the three-year planning Strategic Plan if necessary, with new strategies
ZDVVRXJKWWRUHYLHZWKHH[LVWLQJ,&$$3ƶLV
horizon, the short, medium and long term being implemented as needed in order to
was done with a view of strengthening the
strategic direction for all key operational pillars VDIHJXDUGWKH%DQNţVSHUIRUPDQFHREMHFWLYHV
process and updating the ICAAP with the
recent developments in the banking industry is set out - Key Pillars such as Advances, Deposit
Regular tracking and monitoring of the
including the ICAAP guidelines issued by the Mobilisation, Non-Fund based income, Treasury
Strategic Plan is the key to ensuring action
Central Bank of Sri Lanka (CBSL), and the Operations and Capital Management activities,
plans of individual operational units are on
Basel III Accord. as well as Cost Centres and strategically
WUDFNWRDFKLHYHWKHLUREMHFWLYHVDQGWDUJHWV
important support services such as Marketing,
Continuous engagement with employees
HR, Information Technology, Risk Management,
Strategic Risk plays an important role when assessing
Compliance, etc.
KRZHƩHFWLYHO\WKH6WUDWHJLF3ODQLVEHLQJ
6WUDWHJLF5LVNFDQEHGHƪQHGDVULVNVWKDWDƩHFW
ƶHHQYLURQPHQWDOVFDQLVQRZDQLQFUHDVLQJO\ implemented on a day to day basis. In this
or are created by the Bank’s business strategy
important aspect of the Bank's strategy regard, Senior Management is required to
DQGVWUDWHJLFREMHFWLYHV6WUDWHJLF5LVNFRXOG
development process. Environmental scans regularly engage with all employees under
also arise due to changes in the competitive
are done on a continuous and ongoing basis their purview to ensure their teams are fully
landscape or regulatory framework or
and are used both as a pre-planning and post- DOLJQHGWRWKHREMHFWLYHVVHWRXWIRUWKHLU
LQHƩHFWLYHSRVLWLRQLQJLQWKHPDFURHFRQRPLF
HYDOXDWLRQWRROƶHHQYLURQPHQWDOVFDQWDNHV respective business units. Senior Management
HQYLURQPHQWƶHIDLOXUHWRH[HFXWHVWUDWHJ\
the form of a SWOT analysis and is conducted is further required to take ownership for
DQGRUIDLOXUHWRHƩHFWLYHO\WDNHDFWLRQWR
by the Strategic Planning Department and monitoring the performance of their respective
address under-performance could also
EXVLQHVVKHDGVƶHPDLQDLPVRIWKH6:27 business units. Performance against strategy
increase the exposure to Strategic Risk.
are twofold; 1) to identify opportunities and is assessed vis-a-vis a range of customised
threats in the external environment and KPIs for each business unit. Performance
135
RISK MANAGEMENT
REPORT
ƶH%DQN
VDSSURDFKWR Managing Equity Risk requirements to further strengthen its Liquidity
5LVN0DQDJHPHQW0RGHO8VLQJWKLVFRPELQHG
manage Market Risk is Equity Risk is the impact on the Bank’s equity
approach, the Bank works to ensure adequate
portfolio due to adverse movements in stock
based on comprehensive resources are maintained at all times to meet
market prices.
Market Risk Management obligations and prevent a potential liquidity
Framework developed Board-approved policies are in place while shocks. From the governance perspective, the
the existing portfolio and mark to market responsibility for managing the Bank's Liquidity
in line with regulatory 5LVNOLHVZLWKWKH$/&2ZKLOHFOHDUO\GHƪQHG
value of the portfolio are reviewed regularly
guidelines on Corporate by the Investment Committee. Risk mitigating responsibilities ensure its management at
Governance and techniques such as routine stress testing of operational level.
the Integrated Risk the equity portfolio using various scenarios
and assessment of Equity Risk during internal ƶH7UHDVXU\'HSDUWPHQWLVUHVSRQVLEOHIRU
Management Framework maintaining the Liquid Asset Ratio above
capital calculation under ICAAP are also done.
for Licensed Commercial the Central Bank stipulated levels, while the
Banks as well as the Basel Liquidity Risk 0DUNHW5LVN0DQDJHPHQW8QLWKROGVWKH
recommendations. responsibility for daily monitoring of the Bank’s
Potential Risk arising from inability to meet
Liquid Assets Ratio. Measuring of Liquidity Risk
obligations in a timely manner as and when
LVGRQHWKURXJKVWRFNDQGƫRZDSSURDFKHV
they become due, mainly on account of
Managing Foreign Exchange Rate Risk DQGWKH0DUNHW5LVN0DQDJHPHQW8QLWLV
mismatches between the maturities of the
Foreign Exchange Rate Risk arises due to the UHTXLUHGWRPRQLWRUVLJQLƪFDQWJDSVLQPDWXULW\
Bank’s assets and liabilities.
PLVPDWFKLQDVVHWVDQGOLDELOLWLHVLQVSHFLƪF PLVPDWFKHVXQGHUDOOPDMRUFXUUHQFLHV6WUHVV
foreign currencies, where the value of such net testing is conducted by using parameters
Liquidity Risk Management Structure and
H[SRVXUHVZLOOƫXFWXDWHGXHWRH[FKDQJHUDWH Approach discussed earlier in the section. Assessment of
movements. Liquidity Risk is done during the internal capital
Sampath Bank maintains a conservative
calculation under ICAAP. All exceptions are
outlook towards managing Liquidity Risk,
Board-approved policies and limit structures reported to ALCO, BTC and BIRMC on frequent
which is governed by the Board-approved
are in place to mitigate the Foreign Exchange basis. In addition, a Liquidity Contingency
ALCO Policy, Liquidity Management Policy and
Rate Risk arising due to Net Open Positions Funding Plan is in place in the event of a
appropriate Risk Appetite Limits. More recently,
123UHODWLQJWRDOOPDMRUFXUUHQFLHV liquidity crisis.
the Bank has also adopted the Basel III liquidity
Revaluation of all NOPs are done on a daily

basis and the results are reported to the Statutory Liquid Assets Ratio - 2019
%
corporate management on an ongoing basis.
Monitoring of maturity gaps of currency-wise 35
assets and liabilities, Stress testing and VaR
30.19
calculations are in place as risk measuring and 30 28.06 28.63 28.36 28.23 28.34
26.82 26.97 27.02 26.88
mitigating techniques. In addition, assessing 25.55 26.15
of Foreign Exchange Rate Risk during internal 25 22.82 23.56

22.79
22.22 22.32 21.51
capital calculation is done under ICAAP and 23.32 22.94 23.33 21.07
22.04 22.01
reported to the Board of Directors and to the 20
20 20 20 20 20 20 20 20 20 20 20 20
CBSL. Meanwhile, a clear segregation of duties/
UHVSRQVLELOLWLHVEHWZHHQ7UHDVXU\)URQW2ƬFH 15
Nov-19
Mar-19
Jan-19
Feb-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Dec-19
0LGGOH2ƬFHDQG%DFN2ƬFHLVLQSODFHDQG
a real time monitoring software is available
to track the Foreign Exchange Rate Risk and
all exceptions are reported to ALCO, BTC and SLAR (Average) - FCBU SLAR (Average) - DBU Regulatory Requirement
BIRMC on a frequent basis.
132
Operational Risk y Lessons learned process covering

Actions for 2019
Operational Risk is the risk of losses as a y Root cause analysis
Interest Rate Risk
consequence of failed or incomplete internal
Enhancing Risk Measurement and y Review of control improvements and
processes, people related issues, system
Monitoring Procedures other actions to prevent or mitigate
disruptions or due to external events.
y Introduction of VaR calculations for the the recurrence
trading book. Operational Risk Management Structure y Risk and Control Self-Assessment (RCSA)
and Approach is carried out annually by all key business
y Introduction of Duration Gap Analysis
for the Bank’s interest earning assets ƶHSULPDU\UHVSRQVLELOLW\IRUDFKLHYLQJWKH units to determine the inherent risk
and interest bearing liabilities. RUJDQLVDWLRQDOREMHFWLYHVDQGPDQDJHPHQW associated with their respective business
of Operational Risk lies with the business/ SURFHVVHV0DWHULDOƪQGLQJVIURPDOOWKHVH
y Introduction of prudential loss limits
functional units from where risks originate. A measures are further evaluated and serve
for Present Value Basis Point (PVBP)
comprehensive set of Board-approved policies as the basis for corrective action, which
calculations.
supported by procedures and directives that may take the form of structural changes,
UHƫHFW%DQNţVYLVLRQYDOXHVDQGFRUSRUDWH procedural improvements, new policy
Foreign Exchange Rate Risk
strategy, provides guidance for risk taking implementation, etc.
Strengthening the Risk Governance activities at an operational level.
y Initiations have been taken to introduce Operational Risk Review 2019
a comprehensive manual of Treasury ƶH%RDUGRI'LUHFWRUVSURYLGHVRYHUVLJKW 1%
operations. for matters relating to operational risk (14)
6%
management, planning and implementation. (54)
y Introduction of an Internal NOP limit 7%
ƶH2SHUDWLRQDO5LVN0DQDJHPHQW8QLW (65) 34%
for Dealing Room operation.
undertakes to monitor and report on (328)
y Reviewing of the Risk Appetite Limit Operational Risk and implement plans relating 21%
framework for Foreign Exchange Rate to Operational Risk Management. As part of (200)
Risk. their duties, the Operational Risk Management

8QLWLVIXUWKHUUHTXLUHGWRVWUHQJWKHQWKHULVN 31%
y Investments were made to upgrade
culture at all levels across the Bank. (295)
the existing voice recorder facility to
6\VWHP5HTXLUHPHQW6SHFLƪFDWLRQV028
cover all operational areas relating to
In order to cover the broad range of risk types Service Level Agreements
7UHDVXU\ƶLVQHZV\VWHPLVFRPSDWLEOH 'LUHFWLYHV3URFHGXUHV
framed under Operational Risk, the Operational
to operate from the Disaster Recovery 2WKHU6LJQ2ƩV
5LVN0DQDJHPHQW8QLWKDVDGRSWHGDQXPEHU 3ROLFLHV
Centre.
of Operational Risk Management techniques 1HZ3URGXFW'HYHORSPHQWV1RQ'LVFORVXUH
y Commissioning of Reuters Market to identify, assess and mitigate Operational Agreements
Data System with a wide screen display Risks. Most notable among them are the Key
facility to enable the Market Risk Risk Indicators (KRI) used to monitor the
0DQDJHPHQW8QLWWRPRQLWRUWUDFNWKH Operational Risks. Any notable changes to the Actions for 2019
market movements on real-time basis. Key Risk Indicators are mapped in line with the Strengthening Risk Governance
approved warning and critical limits to facilitate
Liquidity Risk y Introduced/updated several Key Risk
forward-looking risk mitigation action.
Strengthening the Risk Governance Indicators and set new appetite limits
for each KRI.
y Introducing a more comprehensive In addition, the following control measures are
Contingency Funding Plan and also used to manage Operational Risk; y Ongoing procedural changes
enhancing monitoring mechanisms. to maintain tighter control over
y Spot inspections Operational Risk factors.
y Implementation of a mechanism to
monitor the accuracy of Nostro funding. y Incident reporting for lapses/losses above y ƶHH[LVWLQJ5&6$TXHVWLRQQDLUHVZHUH
approved threshold revisited and revised to capture recent
changes to the business models.
133
RISK MANAGEMENT
REPORT
Managing People Risk Given the high dependence on digital Managing Legal and Compliance Risk
ƶH5LVNWKDWWKH%DQNPD\LQFXUORVVHVGXHWR technology, the Bank's Cyber Security Risk Legal Risk is the risk arising from non-
turnover or loss of personnel, deterioration of Management Programme focused on three compliance with statutory and/or regulatory
morale, inadequate development of personnel, underlying principles; provisions, uncertainty due to legal actions or
inappropriate working schedules, inappropriate uncertainty in the applicability or interpretation
y Making it mandatory to conduct code
working and safety environment, inequality or of relevant laws or regulations applicable to
reviews and vulnerability assessments for
inequity in human resource management, or the Bank during the course of its business and
all critical systems
discriminatory conduct. other operations.
ƶH%DQN
VHƩRUWVWRPDQDJH3HRSOH5LVNLV y Ensuring strict compliance with all
Compliance Risk is the threat posed to Bank’s
governed by the Overall Human Resource regulations and best practices applicable
ƪQDQFLDORUJDQLVDWLRQDORUUHSXWDWLRQDO
Policy and supported by a framework of to licensed commercial banks in Sri Lanka
standing resulting from violations of laws,
ancillary policies, procedures and directives. regulations, codes of conduct, or Bank’s
y Raising awareness among employees and
standards of practice.
For more details on Sampath Bank's People customers
Management Framework, please refer Human
ƶH%RDUGDSSURYHG/HJDO5LVN0DQDJHPHQW
Capital Report on pages 72 to 81 and the Please refer Intellectual Capital Report on
Policy and Compliance Policy collectively
Supplementary Report (pages 6 to 9) in pages 68 to 71 and the Supplementary Report
FUHDWHVDEDQNZLGHIRXQGDWLRQIRUHƩHFWLYHO\
Sampath website. (pages 3 to 5) in Sampath website for more
mitigating Legal and Compliance Risk.
details on Sampath Bank's Cyber Security
Managing Information Technology (IT)
Management Framework.
Risk Please refer the Corporate Governance Report
IT Risk Management is the risk of disruption on pages 138 to 184 and the Compliance
associated with the use, ownership, operation Risk Appetite Parameters - Operational Risk Report on page 137 for more details on
and adoption of IT in relation to customer data, Basel Loss Event Type Category Sampath Bank's Legal and Compliance Risk
business processes and critical systems. Internal Fraud Management activities in 2019.
External Fraud
In light of Sampath Bank's aggressive digital Capital Risk
Employment Practices and Workplace Safety
transformation strategy, the focus on managing ƶHULVNRIKDYLQJLQVXƬFLHQWRULQDGHTXDWH
Clients, Products and Business Practices
,75LVNKDVEHHQLQWHQVLƪHGLQUHFHQW\HDUV internal or regulatory capital to support the
with a growing emphasis on strengthening IT Damage to Physical Assets
Bank's risk-taking activities.
governance to align with CBSL directives as well Business Disruptions and System Failures
as globally accepted best practices, in particular Execution Delivery and Process Capital Risk Management Approach
the ISO 27001 : 2013 Information Security Management
Sampath Bank maintains a well-managed
Management Standard.
capital base to cover risks inherent in the
Stress Testing Parameters of Operational Risk
business. Premised on this, the Bank's
Please refer Intellectual Capital Report on
Operational Risk Parameters capital management strategy aims to
pages 68 to 71 and the Supplementary
Stress Tests facilitate compliance with regulatory capital
Report (pages 3 to 5) in Sampath website for
requirements while maintaining healthy capital
more details on Sampath Bank's Information 1 Operational Risk - Impact to Capital
ratios in order to support business activities
Technology Management Framework. Scenario 1 Adequacy Ratio by
and maximise shareholders’ value. From a
increasing actual
Managing Cyber Security Risk compliance perspective, the Bank remains
loss value by 10%,
Cyber Security Risk refers to the risk the Bank ƪUPO\FRPPLWWHGWRFRPSO\ZLWKWKH0LQLPXP
20% and 30%
may face due to a threat of a cyber-attack or a &DSLWDO5HTXLUHPHQWVDQG%XƩHUVXQGHU
2 Operational Risk - Impact to Capital Pillar I, in line with the Basel III guidelines
data breach causing the loss of digital data and
Scenario 2 Adequacy Ratio issued by BIS (Bank for International
information.
by increasing the Settlements) and the Banking Act Directions
actual loss and of CBSL.
To further strengthen the governance of Cyber
near-miss value
Security Risk the Bank has established an
by 10%, 20% and Meanwhile to support the business needs,
Information security unit which is headed by
30% the Bank's Risk Management Department
&KLHI,QIRUPDWLRQ6HFXULW\2ƬFHU&,62
performs a comprehensive internal
134
RISK MANAGEMENT
REPORT
ƶHHQYLURQPHQWDOVFDQ Reputational Risk While the Board of Directors have the ultimate
authority in managing Reputational Risk, it
is now an increasingly ƶHULVNRISRVVLEOHGDPDJHWRWKH6DPSDWK
brand, the Bank's reputation, earnings, capital is considered a shared responsibility of all
important aspect of 6DPSDWK%DQNHPSOR\HHVƶH&RUSRUDWH
or liquidity due to the action or inaction which
the Bank's strategy could be perceived by stakeholders to be Management, under the Board’s oversight, is
development process. inappropriate, unethical or inconsistent with responsible for the formulation of policies and
procedures to control the Bank's exposure to
Environmental scans are the Bank's vision and core values.
Reputational Risk. Managing Reputational Risk
done on a continuous on a day-to-day basis is the direct responsibility
Reputational Risk Management Structure
and ongoing basis and and Approach RIDOOWKHVWDƩPHPEHUVLQEXVLQHVVIXQFWLRQDO
are used both as a A high-level Reputational Risk Management XQLWVƶHVHHƩRUWVDUHVXSSRUWHGE\5LVN
Management Department and the Compliance
pre-planning and post- Policy is in place and serves as a guideline
to holistically manage Reputational Risk. Department as well as the Marketing, Legal,
evaluation tool. Finance and Human Resources Departments.
In addition, all policies and procedures
across the Bank are formulated in alignment
dashboards are widely used across the Bank Please refer the Capital Management Reports
with the Bank's mission and core values,
to facilitate proactive monitoring of these KPIs. on pages 59 to 98, the Compliance Report
and uphold the Bank's reputation in the
ƶHUHVXOWVGHULYHGDUHWKHQWDEXODWHGDQG on page 137 and the Corporate Governance
H\HVRILWVVWDNHKROGHUVƶHVHLQFOXGHWKH
submitted to the Board Strategic Planning Report on pages 138 to 184 for more details
Bank's Communication Policy, Sustainability
Sub Committee with recommendations and RQWKHHƩRUWVPDGHLQWRVDIHJXDUGWKH
)UDPHZRUNDQG%XVLQHVV&RQWLQXLW\3ODQƶH
VXJJHVWLRQVIRUFRUUHFWLYHDFWLRQƶHGHFLVLRQ Bank's reputation.
Whistle-blowing Policy is also an important
to take corrective action lies with the Board of
tool that supports the Bank's Reputational Risk
Directors.
Management Strategy.
Please refer the Business Reports on pages
99 to 124 for more details regarding the steps
taken in 2019 to manage Strategic Risk.
136
COMPLIANCE
Compliance is seen as an integral part of

Sampath Bank’s ethical and professional
EXVLQHVVDSSURDFKƶHFRPPLWPHQW Regulatory Risk
to compliance is enforced by the Bank's interaction and assessment Governance
Compliance Department, an independent coordination programme
administrative unit responsible for ensuring
bank-wide compliance with all legal and
regulatory requirements applicable to licensed
commercial banks in Sri Lanka and entities
listed on the Colombo Stock Exchange.
Compliance
Compliance SAMPATH BANK
In carrying out this mandate, the Compliance COMPLIANCE monitoring and
technology
Department operates through an eight-point MODEL testing
compliance model that seeks to promote the
highest standards of integrity and ensure that
they are applied at all levels across the Bank.
Key Highlights for 2019

Policies,
Regulatory Interaction and Coordination Compliance Reporting and procedures, and
Proactive monitoring of regulatory training communication related controls
developments enabled the Compliance
Department to swiftly comply with all new
directives introduced in 2019, namely the
imposition/removal of the Deposit and programme, the Compliance Department Compliance Department being assigned to
/HQGLQJFDSVE\WKH&%6/DVZHOODVIXOƪOOLQJ also began working towards implementing a FDUU\RXWDSRVWƪOLQJDXGLWRIDOOUHJXODWRU\
WKH),8)LQDQFLDO,QWHOOLJHQFH8QLWGLVFORVXUH standard EWRA model in line with international GRFXPHQWVƪOHGE\YDULRXVGHSDUWPHQWV
requirements to establish the ultimate best practices. )LQDQFH/HJDO,QWHUQDO$XGLWHWFƶHDLP
EHQHƪFLDORZQHUVKLSRIFRPSDQLHV of this due diligence process is to ensure
Compliance Training SRWHQWLDOEUHDFKHVDUHLGHQWLƪHGDQGFRUUHFWHG
Governance Based on the results of the existing risk immediately to prevent a recurrence in the
In line with the new regulatory directive issued assessment programme for branches and future.
by the CBSL, the oversight structure of the departments, a series of measures were
Compliance Department was strengthened taken to focus on helping medium to high Reporting and Communication
with a member of Corporate Management risk branches/departments to improve their :LWKWKH),8RI6UL/DQNDZRUNLQJWRZDUGV
EHLQJDSSRLQWHGDVWKHKHDGZLWKHƩHFWIURP risk rating. In this regard training activities introducing a new online transaction reporting
VW-DQXDU\ ZHUHLQWHQVLƪHGWRHGXFDWHVWDƩUHJDUGLQJ system, Sampath Bank was selected as one
AML (Anti-Money Laundering) and CTF RIWKHPDMRUEDQNVWRUXQWKHSLORWSURMHFW$
Risk Assessment (Counter Terrorism Financing) regulations. special team was carved out from within the
In order to comply with the CBSL's 01 of 2018 A special training programme conducted by %DQNWROHDGWKLVSURMHFWLQFROODERUDWLRQZLWK
JXLGHOLQHVLVVXHGE\),8UHFRPPHQGLQJ ƪQDQFLDOFULPHVSHFLDOLVWVIURP( <ZDVKHOG the IT and Operations Departments.
Enterprise-Wide Risk Assessment (EWRA) for VSHFLƪFDOO\IRUPDQDJHULDOOHYHOEUDQFKVWDƩ,Q
parallel, a special knowledge sharing session Focus for the Future
licensed commercial banks, the Compliance
Department revisited the Bank’s existing risk was held for Corporate Management and the Going forward the focus would be twofold:
DVVHVVPHQWIUDPHZRUNƶHIUDPHZRUNZKLFK Board of Directors which included case studies FRQWLQXHWRƪQHWXQHH[LVWLQJV\VWHPVWR
up-to now was restricted to branches and KLJKOLJKWLQJWKHFDVHDQGHƩHFWUHVXOWLQJIURP LGHQWLI\VXVSLFLRXVWUDQVDFWLRQVHƩHFWLYHO\DQG
departments, was further expanded in 2019 non-compliance of these guidelines. promptly and 2) increase compliance training
leading to regular risk assessments being on AML/CTF and Foreign Exchange regulations
performed on the Bank's core products in the
Procedures, Policies and Controls to educate branch level/front line teams.
Consumer and Corporate segments. In an ƶH%DQNZLGHUHJXODWRU\UHSRUWLQJSURFHVV
HƩRUWWRIXUWKHUVWUHDPOLQHWKHULVNDVVHVVPHQW was further streamlined in 2019 with the
137
CORPORATE
GOVERNANCE
Dear Stakeholder industry in one of the fastest growing sectors of We are committed to
ƶH%RDUGRI'LUHFWRUVRI6DPSDWK%DQN WKHHFRQRP\ZHKDYHPDGHDFRQVFLRXVHƩRUW
to ensure that governance is integrated into
maintain high standards
PLC is pleased to present the Corporate
*RYHUQDQFH5HSRUWƶHUHSRUW our strategy and decision making processes of corporate governance
comprehensively demonstrates how the in order to safeguard the interest of all our across the business and
Board and its Committees have discharged stakeholders. ensuring values and
their governance duties during the year under behaviour are consistent
review. I believe the report provides you with 5HƫHFWLQJWKHVHLQWHQWLRQVWKH%RDUG
V
a clear and meaningful explanation of how attention in 2019 was directed predominantly with the Bank's core values.
we apply the principles of good governance towards;
enshrined in the Banking Act Direction No. 11 Declaration by the Board
1. Rolling out the Triple Transformation
of 2007 on Corporate Governance for Licensed
agenda which focuses on developing As Chairman of the Board, I declare that all the
Commercial Banks issued by the Central Bank
people, leveraging on technology and members of Sampath Bank PLC's Board of
of Sri Lanka (CBSL) and its amendments, the
streamlining processes to consolidate core Directors and all Bank personnel have followed
Code of Best Practice on Corporate Governance
business activities and thereby paving the the applicable regulatory and statutory
2017 issued by the Institute of Chartered
way for the next big growth phase for the requirements and have discharged their
Accountants of Sri Lanka (CA Sri Lanka) and
Bank. More details regarding the work duties considering the policies, procedures
complies with all other regulatory requirements
done under the Triple Transformation and standards covered by the Bank’s internal
applicable to a Licensed Commercial Bank.
agenda are discussed throughout the Codes of Conduct relevant to the Board of
2019 Annual Report, especially in the Directors, the Key Management Personnel and
ƶH6DPSDWK%DQN%RDUGRI'LUHFWRUVLVRI
business review segment from pages 99 the other personnel. I would like to encourage
the opinion that good corporate governance is
to 124. DOOVWDNHKROGHUVWRƪQGWKHWLPHWRDWWHQGRXU
fundamental to ensure proper management of
Annual General Meeting scheduled for 30th
the Bank in the interests of all our stakeholders.
2. Critically reviewing the existing March 2020. It is an excellent opportunity to
On behalf of the Board, I must reiterate that, we
governance mechanisms on an ongoing meet the Board members and engage with
are committed to maintain high standards of
basis and taking proactive steps to other Key Management Personnel to learn
corporate governance across the business and
further strengthen the Bank's corporate about the Bank’s performance for the year
ensuring values and behaviour are consistent
JRYHUQDQFHIUDPHZRUNƶHSDJHVWKDW 2019.
with the Bank's core values.
follow will provide more details regarding
ƶURXJKRXWWKH\HDUZHKDYHPDQDJHGWKH the work done in this regard.
DƩDLUVRIWKH%DQNQRWE\PHUHO\IROORZLQJ
3. Reinforcing the compliance culture.
regimented rules, but by promoting open and PROF MALIK RANASINGHE
Further details regarding the culture are
transparent discussion at all levels of the Bank. Chairman
available in the Compliance report on
Given that we operate in a highly regulated
page 137.
Colombo, Sri Lanka
13th February 2020
138
Corporate Governance Framework y Listing Rules of the Colombo Stock principles and practices are fundamental to
Sampath Bank PLC, “the Bank” is dedicated Exchange VXVWDLQDELOLW\EXVLQHVVJURZWKDQGSURƪWDELOLW\
WRHQVXUHWKHƪQDQFLDOZHOOEHLQJRIDOOLWV y Securities and Exchange Commission as well as maintaining the trust of its
stakeholders. As such, the Bank has from the of Sri Lanka Act No. 36 of 1987 and its stakeholders.
inception sought to uphold the principles amendments
of good corporate governance - fairness, ƶH5ROHRI%RDUG
y Inland Revenue Act No. 24 of 2017 and its
DFFRXQWDELOLW\LQWHJULW\DQGWUDQVSDUHQF\ƶLV amendments ƶH%RDUGRI'LUHFWRUVDUHDWWKHFRUHRIWKH
approach has been the cornerstone of the Bank’s governance structure. In line with
y 6KRSDQG2ƬFH(PSOR\HHV$FW1RRI
Bank's success for the past 30+ years. the Bank's Articles of Association, the Board
1954 and its amendments
safeguards the interest of all stakeholders of
Regulatory compliance is an integral component y Sri Lanka Accounting and Auditing the Bank, including customers, shareholders,
RIWKLVFRPPLWPHQWƶH%DQNDLPVWROHDG Standards Act No. 15 of 1995 HPSOR\HHVDQGWKHFRPPXQLW\DWODUJHƶH
by example by complying with all applicable y Foreign Exchange Act No. 12 of 2017 and Board is responsible for the implementation
legislation, regulations, standards and codes. As its regulations RIDQDGHTXDWHDQGHƩHFWLYHLQWHUQDOFRQWURO
a Licensed Commercial Bank and a public entity y All other applicable regulations mechanism as well as ensuring appropriate
listed on the Colombo Stock Exchange, the SROLFLHVDQGSURFHGXUHVƶH%RDUGDOVRVHWV
following key statutes are applicable to the Bank: Anchored by a strong commitment to always the tone for promoting the governance culture
do the right thing, the Bank has made further across the Bank through Board-approved
y Companies Act No. 7 of 2007 voluntary commitment to align with the policies, such as the Policy on Managing
following guidelines; &RQƫLFWVRI,QWHUHVWWKH:KLVWOH%ORZLQJ3ROLF\
y Banking Act No. 30 of 1988 and its
amendments the Procedure on Dealing with Related Party
y Integrated Reporting Framework issued Transactions, the Customer Charter, the Code of
y Banking Act Direction No. 11 of 2007 by the International Integrated Reporting Conduct for Employees and Key Management
on Corporate Governance for Licensed Council (IIRC) Personnel and the Code of Conduct and
Commercial Banks issued by the Central
y GRI Standards for Sustainability reporting Governance Requirements for Directors.
Bank of Sri Lanka and its amendments
issued by the Global Reporting Initiative
y Code of Best Practice on Corporate Furthermore, the Board conducts continuous
y ƶH8QLWHG1DWLRQV6XVWDLQDEOH
Governance 2017 issued by the Institute of and ongoing review of policies and procedures
Development Goals (SDGs)
Chartered Accountants of Sri Lanka with a view to strengthening the governance
y Anti-Money Laundering Laws and However, the Bank's approach towards framework in line with best practices for
Regulations and Financial Transaction corporate governance extends beyond the good corporate governance. In this regard,
Reporting Act No. 6 of 2006 and its requirement. It is integrated into the day to the Board is assisted by the Board appointed
amendments day operations at every level based on the Sub Committees and other Management
understanding that sound corporate governance Committees as well as the Secretariat
Department of the Bank.
Training and Development
Training Activities Conducted by Participants
Cyber Security 'U6DQMLYD:HHUDZDUDQD)RXQGHUIRUPHU&(2DQG&KDLUPDQ All Directors

of WSO2 (Non-Executive Director of Sampath Bank PLC)
Key aspects of IFRS 9 and 16 and its business KPMG All Directors
implications
Financial Crime Compliance Ernst & Young All Directors
Corporate Governance and Board Development Management Excellence Prof Malik Ranasinghe -
Excellence 2019 Conference (Malaysia) Chairman
Key Issue in the Sri Lankan Economy in 2020 Mr Deshal de Mel - former Economic Advisor - Ministry of All Directors
Finance (Non-Executive Director of Sampath Bank PLC)
,PSRUWDQFHRIGDWDDQGWKHMRXUQH\WRFUHDWHD Dr Priyankara Paranagama - Chief Data and Transformation All Directors
data driven culture in the organisation 2ƬFHURI6XQFRUS
Lessons learnt from failed companies ƶH6UL/DQND,QVWLWXWHRI'LUHFWRUV Prof Malik Ranasinghe,

Ms Aroshi Nanayakkara, the
Company Secretary and the
Assistant Company Secretary
139
CORPORATE
GOVERNANCE
Highlights for 2019
Strengthening the Governance Framework

Internal Policy Changes
y To comply with the CBSL's new y A cross functional “Information Security y ƶHVFRSHRIWKH%DQN
V
information security requirements, a Incident Response Team” (IRT) was Communication Policy was also further
ť&KLHI,QIRUPDWLRQ6HFXULW\2ƬFHUŦ operationalised under the supervision expanded to emphasize the need
(CISO) was appointed in March RI&,62ƶHUROHRIWKH,57LQFOXGHV IRUHƩHFWLYHFRPPXQLFDWLRQZLWKDOO
2019. A member of the Corporate managing internal and external stakeholder groups.
Management, the CISO reports communications, directing response
directly to the Managing Director/ and recovery activities, monitoring Process Improvements
&KLHI([HFXWLYH2ƬFHUƶH&,62LV the recovery progress, providing or y All shareholder communication
UHVSRQVLEOHIRUGHƪQLQJDQGGULYLQJ reallocating recovery resources and formats were revised, while increased
Bank-wide information security gathering immediate evidence related focus was given to upgrade the share
REMHFWLYHVVWUDWHJLHVDQGSROLFLHVDV to incidents etc. ledger system to facilitate more
well as for updating the Bank's cyber comprehensive services.
y A new Data Governance Policy was
security strategy and architecture to
issued in October 2019 setting out y ƶHHQWLUH&RPSDQ\6HFUHWDULDW
safeguard against potential threats.
a comprehensive data governance Department was restructured with all
ƶH&,62LVIXUWKHUUHVSRQVLEOHIRU
IUDPHZRUNZLWKFOHDUO\GHƪQHGUROHV key processes being revamped with a
WDNLQJHƩHFWLYHPHDVXUHVWRLQFUHDVH
DQGUHVSRQVLELOLWLHVIRUGLƩHUHQWSKDVHV new monitoring system introduced to
information security awareness among
in the Data Management Life Cycle. streamline the reporting and follow up
VWDƩDQGFXVWRPHUV
ƶHSROLF\KDVEHHQGHYHORSHGLQOLQH procedure relating to Board and Board
with internationally accepted best sub-committee activities.
y Following the appointment of the CISO,
practices, and covers all forms of data
the Information Security Committee y ƶH7HUPVRI5HIHUHQFHVRIVXE
dissemination to internal and external
(ISC) was set up. Chaired by the MD/ committees were revised to allow for
parties for regulatory or business
CEO, the ISC is a management level JUHDWHUƫH[LELOLW\LQFRQGXFWLQJUHJXODU
requirements and all other Data
cross functional committee that reports meetings.
Management activities and processes.
to Board Integrated Risk Management
y A series of new procedures were
Committee (BIRMC) regarding strategic y ƶH:KLVWOHEORZLQJ3ROLF\ZDV
implemented to comply with the
and operational aspects of information updated to increase the involvement of
revisions issued by the Securities &
security. the Internal Auditor (Assistant General
Exchange Commission (SEC) on Fitness
Manager - Internal Audit) in handling
and Propriety of Board of Directors and
whistle-blower cases in addition to the
Key Management Personnel.
Company Secretary.
140
GRI 102-22,24
Composition and Quality of the Board
ƶH%DQNLVOHGE\DKLJKO\FRPSHWHQWDQGGLYHUVH%RDUGZLWKWKHPDMRULW\FRQVLVWLQJRI,QGHSHQGHQW1RQ([HFXWLYH'LUHFWRUVZKRSRVVHVVDUDQJH
RIVNLOOVH[SHULHQFHDQGGLYHUVLW\ZKLFKHQVXUHVWKH%RDUGLVFROOHFWLYHO\DEOHWRGLVFKDUJHLWVUHVSRQVLELOLWLHVLQOLQHZLWKWKH%DQN
VVWUDWHJLFREMHFWLYHV
and operational framework.
Directors' Attendance at Board and Mandatory Board Sub Committee Meetings
Director &ODVVLƪFDWLRQ Board Board Audit Board HR & Board Board Board
Meetings Committee Remuneration Nomination Integrated Related Party
Committee Committee Risk Transactions
Management Review
Committee Committee
Prof Malik Ranasinghe IND/NED 21/21 12/12 09/09 04/04 - 04/05

Mr Channa Palansuriya1 NID/NED 07/07 - 02/02 02/02 - -
Mrs Saumya Amarasekera NID/NED 19/21 - 07/09 04/07 02/06 -
0U6DQMLYD6HQDQD\DNH IND/NED 21/21 - 09/09 07/07 06/06 05/05
Mr Deepal Sooriyaarachchi2 NID/NED 13/14 07/11 04/06 - 02/03 03/03
0UV'KDUD:LMD\DWLODNH IND/NED 20/21 12/14 09/09 07/07 - 05/05
Ms Annika Senanayake IND/NED 18/21 - 06/09 07/07 04/04 -
Mr Ranil Pathirana IND/NED 20/21 15/18 - - - -
Mr Rushanka Silva NID/NED 19/21 - - - - -
0U'LOLSGH6:LMH\HUDWQH IND/NED 21/21 06/06 04/04 - 03/04 -
Ms Aroshi Nanayakkara3 IND/NED 11/11 - 04/04 - - -
'U6DQMLYD:HHUDZDUDQD4 IND/NED 09/10 04/06 - - 04/04 -
Mr Deshal de Mel5 IND/NED 05/05 04/04 01/01 02/03 02/02 02/02
Mr Nanda Fernando ED 20/21 - - - 06/06 -
Total No. of Meetings 21 18 09 07 06 05
5HVLJQHGZHI 5HWLUHGZHI $SSRLQWHGZHI $SSRLQWHGZHI $SSRLQWHGZHI
Board Composition
Chairman Board Gender Representation Board of Directors’ Industry/Background

Experience
Managing
Director
8
Experience No. of
Directors*
4 Engineering 2
Deputy
Chairperson Information Technology 1
Banking 11
Total Directors Senior Independent Age Group-wise Composition Finance 7
Director Law 2
12
Chairman - 3 Marketing 1
Board Integrated 35-45
Non-Executive Directors HR Management 1
Risk Management
(NED) Committee Insurance 1
2
11 66-70 Business Administration & 5
Chairperson - Management
Executive Director Board Human Resources
and Remuneration
Public Administration 3
(ED)
Committee and $QLQGLYLGXDO'LUHFWRUPD\UHSUHVHQWPRUH
01 Board Related Party 3 than one discipline.
Transactions Review 46-55
Committee
Chairperson -
Board Nomination 4
Committee 56-65 NANDA FERNANDO
Chairman -
Board Audit Managing Director
Committee Executive Director (ED)
Non-Independent Director (NID) Colombo, Sri Lanka
Independent Director (IND)
13th February 2020
141
Legal Dept. &KLHI/HJDO2ƬFHU
Trade Services Dept. Siyapatha Finance PLC
International Operations
Dept.
DGM International
Recoveries Dept.
Trade & Credit Control

Sampath Centre Ltd
AGM Recoveries
Credit Control Unit
Bancassurance Dept.
6&6HFXULWLHV3YW/WG
Branch Network
Board of Directors - Subsidiaries

Sampath Information
Special Task Force AGM Branch Banking Technology Solutions Ltd
Credit Processing Unit
DGM Branch Banking

Lending Products Dept.
Business Support Centre
Banking
DGM SME
7UHDVXU\)URQW2ƬFH
AGM Treasury
Treasury Investments &
PDU Dept.
142
Corporate Credit Dept.
Snr DGM
Shareholders
CORPORATE
Corporate Banking
GOVERNANCE
Managing Director
DGM Corporate Credit

Corporate Finance Dept.
AGM FCBU/Corporate
Board of Directors - Bank
Governance Structure
Finance
Foreign Currency
Banking Unit

Marketing Dept.
Deposit
Mobilisation Dept.
Snr DGM
Mobilisation
DGM Deposit
Consumer Banking
Loan
Disbursement Unit
Operations & BPR Dept.
Credit Administration Dept.
Branch Support Unit AGM Operations

and Card Centre
External Auditors
Network Services Centre

Board Sub Committees
Central Cash Dept.

GRI 102-18,19,20
Card Centre
IT Electronic Data
Processing Dept.
IT Systems
Development Dept. Board Audit Committee
Electronic Banking Unit

Board HR & Remuneration
AGM IT
Introductory Information
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Data Warehouse
Group Chief
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Board Nomination Committee
Data Governance Unit
Board Integrated Risk

Remittances Dept. Management Committee
AGM Inward Remittance/ Board Related Party

Bank Notes Operations Dept. Transactions Review Committee
KPO/BNO
Managing Our Business
.DWXQD\DNH3D\2ƬFH Board Credit Committee
Customer Care Centre Board Strategic Planning

Committee
Digital Banking Unit Board Shareholder

Relations Committee
Finance Dept.
Board Treasury Committee
7UHDVXU\%DFN2ƬFH
Board Marketing Committee
Group Chief
143
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Investor Relations Dept.
Management Discussion & Analysis
Human Resources Board IT Committee

& Training Dept.
Board Capital Planning
Corporate
Governance Structure
Committee
Sustainability Dept.
+52ƬFHU
Group Chief

AGM Strategic
Strategic Planning Dept. Planning & Research
Risk & Governance
Logistics, Premises &

Engineering Depts.
Myanmar Representative
2ƬFH
Group Chief
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Risk Management Dept. & Group Chief

Financial Information
7UHDVXU\0LGGOH2ƬFH 5LVN2ƬFHU
Systems Audit Dept.

AGM Internal Audit
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Company Secretary’s
Company Secretary
2ƬFH
Chief Information
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Supplementary Information
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CORPORATE
GOVERNANCE
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ICASL Code Principle, Compliance and Implementation Complied
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A DIRECTORS
A.1 THE BOARD
A.1 (ƩHFWLYH%RDUG
ƶH%RDUGRI'LUHFWRUVFRPSULVHV7ZHOYH'LUHFWRUVRIZKRP(OHYHQDUH1RQ([HFXWLYH'LUHFWRUV 5
LQFOXGLQJWKH&KDLUPDQƶH([HFXWLYH'LUHFWRULVWKH0DQDJLQJ'LUHFWRUZKRLVDOVRDPHPEHURIWKH
&RUSRUDWH0DQDJHPHQWWRZKRPWKHGD\WRGD\UXQQLQJRIWKHRUJDQLVDWLRQKDVEHHQGHOHJDWHGƶH%RDUG
has appointed Board Sub Committees to assist in discharging their collective duties and approves policies,
governance structures and the delegation of authority to provide a conducive business environment for
HƩHFWLYHSHUIRUPDQFHRIWKH%DQNƶH%RDUGLVFORVHO\LQYROYHGLQGHYHORSLQJVWUDWHJ\DQGVHWWLQJWKHVKRUW
medium- and long-term goals of the Bank and regularly monitors performance against pre-determined Key
Performance Indicators (KPIs), which include both quantitative and qualitative measures, on a regular basis.
Attendance as a Percentage at Board Meetings During 2019
%
1. Prof Malik Ranasinghe 21/21
2. Mr Channa Palansuriyaa 07/07
100
3. Mrs Saumya Amarasekera 19/21
4. Mr Sanjiva Senanayake 21/21
80 5. Mr Deepal Sooriyaarachchib 13/14
6. Mrs Dhara Wijayatilake 20/21
60 7. Ms Annika Senanayake 18/21
8. Mr Ranil Pathirana 20/21
9. Mr Rushanka Silva 19/21
40 10. Mr Dilip de S Wijeyeratne 21/21
11. Ms Aroshi Nanayakkarac 11/11
20 12. Dr Sanjiva Weerawaranad 09/10
13. Mr Deshal de Mele 05/05
14. Mr Nanda Fernando 20/21
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Meetings Attended Meetings Not Attended a - Resigned w.e.f. 01.04.2019 b - Retired w.e.f. 05.08.2019
c - Appointed w.e.f. 30.05.2019 d - Appointed w.e.f. 01.06.2019
e - Appointed w.e.f. 26.09.2019
A.1.1 Regular Meetings

Board meetings are held monthly whilst special Board meetings are convened as the need arises. During 2019 5
the Board held 21 scheduled meetings and 06 Strategic Planning Committee meetings. In addition to the
Board, the following Board Sub Committees met regularly during the year:
1. Board Audit Committee 7. Board Strategic Planning Committee

2. Board Human Resources & Remuneration Committee 8. Board Shareholder Relations Committee
3. Board Nomination Committee 9. Board Treasury Committee
4. Board Integrated Risk Management Committee 10. Board Marketing Committee
5. Board Related Party Transactions Review Committee 11. Board IT Committee
6. Board Credit Committee 12. Board Capital Planning Committee
ƶHPHHWLQJFDOHQGDUVFKHGXOLQJDOO%RDUGDQG%RDUG6XE&RPPLWWHHPHHWLQJVIRUWKHHQVXLQJ\HDULV
prepared well in advance and circulated to all Board Members.
ƶH%RDUGPHPEHUVXVHL3DGVWRDFFHVV%RDUG3DSHUVYLDVHFXUHFRQQHFWLRQVDQGDUHDEOHWRMRLQPHHWLQJV
even through remote access, such as video conference. Details of Board Meetings, Mandatory Board Sub
Committee Meetings and attendance are given on page 141 of this report.
144

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Reference
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EFFECTIVE CONTROLS, STRENGTHENING THE SAFETY AND SOUNDNESS OF THE BANK
A.1.2 Ensure the Formulation and Implementation of Sound Business Strategy
ƶH%RDUGLVUHVSRQVLEOHIRUVHWWLQJVWUDWHJ\SROLFLHVDQGIRUPRQLWRULQJSHUIRUPDQFHDJDLQVWDJUHHGJRDOVDQG 5
KPIs. During the year, the Board held 06 Strategic Planning meetings, where the Board reviewed the progress
of the Strategic Plan 2019-2021 and re-aligned strategies based on proposals of the Corporate Management
where necessary and formulated and approved the strategy for the period 2020 to 2022.
A.1.2 ƶH%RDUGKDVDSSRLQWHGWKH&KDLUPDQRIWKH%DQNZKRLVD1RQ([HFXWLYH,QGHSHQGHQW'LUHFWRU 5
A.1.2 %RDUGLVUHVSRQVLEOHWRHQVXUHWKDWWKH&KLHI([HFXWLYH2ƬFHU&(20DQDJLQJ'LUHFWRU0'DQGWKH
Management Team possess Skills, Experience and Knowledge to Implement the Strategy
MD and Management team has the required skill, knowledge and experience in implementing the strategy 5
since they have multi-skilling with Banking, Finance, IT, Management, Marketing, HR and Audit backgrounds.
ƶH%RDUG+XPDQ5HVRXUFHVDQG5HPXQHUDWLRQ&RPPLWWHHVXSSRUWVWKH%RDUG1RPLQDWLRQ&RPPLWWHHLQ
implementing the succession strategy for Key Management Personnel (KMPs) through a continuous Talent
Mapping and Skills Development process.
A.1.2 Succession Strategy for CEO and KMPs
ƶH%RDUG1RPLQDWLRQ&RPPLWWHHLVUHVSRQVLEOHIRUDGRSWLQJDQHƩHFWLYHVXFFHVVLRQVWUDWHJ\ZLWKUHJDUG 5
to the MD and KMPs, in support of which, a Board-approved Procedure for Selection, Nomination and
Appointment of MD and KMPs is in place.
A.1.2 Approval of Budgets and Major Capital Expenditure
ƶH%RDUGLVUHVSRQVLEOHIRUUHYLHZLQJDQGDSSURYLQJPDMRUFDSLWDOH[SHQGLWXUHEXGJHWVDQGPRQLWRULQJWKH 5
DFWXDOSHUIRUPDQFHRIWKHLQGLYLGXDO6WUDWHJLF%XVLQHVV8QLWVDJDLQVWDSSURYHGEXGJHWVDQGWKHDSSURYDORI
TXDUWHUO\DQGDXGLWHGƪQDQFLDOVWDWHPHQWV
,QVXSSRUWRIUHYLHZLQJDQGDSSURYLQJPDMRUFDSLWDOH[SHQGLWXUHDIRUPDO3URFXUHPHQW3URFHGXUHLVEHLQJ
IROORZHGƶH&DSLWDO([SHQGLWXUHSURSRVHGWREHLQFXUUHGDUHƪUVWVXEPLWWHGWRWKH3URFXUHPHQW&RPPLWWHH
that has been established under the said Procurement Procedure, with whose recommendation only, the
proposed expenditure are submitted for approval by the Board.
ƶHEXGJHWVIRUWKHHQVXLQJ\HDUDUHDSSURYHGE\WKH%RDUGDORQJZLWKWKHUHYROYLQJ6WUDWHJLF3ODQIRUWKH
ensuing year. At the quarterly review of the Strategic and Budget Plan for 2019, the compliance with the cost
budgets was also reviewed.
A.1.2 Determining the Matters Expressly Reserved to the Board and those Delegated to the Management
$%RDUGDSSURYHGIRUPDOVFKHGXOHRIPDWWHUVVSHFLƪFDOO\UHVHUYHGWRWKH%RDUGIRUGHFLVLRQLVLQSODFH$ 5
formal procedure compliant with the Bank’s Memorandum and Articles of Association is followed by the Board
in delegating authority upon the Management on matters and limits deemed appropriate to be delegated
XSRQWKH0DQDJHPHQWVXEMHFWWRWKHFRQGLWLRQWKDWWKH0DQDJHPHQWUHSRUWVWRWKH%RDUGUHJXODUO\WKH
authorities exercised by them under the authorities delegated by the Board.
145
CORPORATE
GOVERNANCE
GRI 102-21,27,29,32

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Reference
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Management
Board Audit Committee reviews Internal Audit reports submitted by the Internal Audit Department and 5
monitors follow up action. Further, based on the assessment of Internal Control Over Financial Reporting
,&2)5'LUHFWRUVFRQFOXGHGWKDWWKH%DQNţV,QWHUQDO&RQWURO2YHU)LQDQFLDO5HSRUWLQJLVHƩHFWLYH$GHVFULSWLYH
account of the measures taken in this regard is contained in the Board Audit Committee Report given on pages
185 to 187.
$%RDUGDSSURYHGDQQXDOO\UHYLHZHG%XVLQHVV&RQWLQXLW\3ODQLVLQSODFH$ƪUHGULOODQGDV\VWHPGULOOZHUH 5
carried out pertaining to the year 2019 in compliance with the requirements of such Business Continuity Plan.
$QLQGHSHQGHQW5LVN0DQDJHPHQW8QLWKDVEHHQHVWDEOLVKHGKHDGHGE\WKH*URXS&KLHI5LVN2ƬFHUZKR 5
IXQFWLRQDOO\UHSRUWVWRWKH%RDUG,QWHJUDWHG5LVN0DQDJHPHQW&RPPLWWHHƶH5LVN0DQDJHPHQW8QLWLVWDVNHG
with the responsibility of assessing and mitigating various risks encountered by the Bank and the Group in
carrying out their respective businesses.
A.1.2 Ensure Compliance with Laws, Regulations and Ethical Standards
An independent Compliance function too has been established, which is headed by the Group Chief 5
&RPSOLDQFH2ƬFHUZKRIXQFWLRQDOO\UHSRUWVWRWKH%RDUG,QWHJUDWHG5LVN0DQDJHPHQW&RPPLWWHHZKLFKLV
tasked with ensuring Bank’s compliance with laws and regulations.
,QRUGHUWRHQVXUHWKDWHWKLFDOVWDQGDUGVDUHIROORZHGWKH%RDUGDSSURYHG3ROLF\RQ0DQDJLQJ&RQƫLFWVRI
5
Interest, the Whistle Blowing Policy, the Directive on Dealing with Related Party Transactions, the Customer
Charter, the Codes of Conduct for Employees, the Key Management Personnel, and the Code of Conduct and
Governance Requirements for Directors have been implemented Bank-wide and as appropriate.
A.1.2 Ensure all Stakeholder Interests are Considered in Corporate Decisions
ƶH$UWLFOHVRI$VVRFLDWLRQRIWKH%DQNUHTXLUHVWKH'LUHFWRUVWRWDNHGHFLVLRQVWDNLQJLQWRDFFRXQWWKHLQWHUHVWV 5
of customers, shareholders, employees and the community. Additionally, the Customer Charter, the Board
6KDUHKROGHU5HODWLRQV&RPPLWWHH%DQNţV+53ROLF\WKH3ROLF\RQ0DQDJLQJ&RQƫLFWVRI,QWHUHVWDVZHOODVWKH
Board Related Party Transactions Review Committee are in place in order to uphold the interests of these key
stakeholders.
A.1.2 Recognising Sustainable Business Development and Consider the Need for Adopting “Integrated Reporting”
Integrated Reporting and Recognising sustainable business development.
ƶH%RDUGRI'LUHFWRUVERWKLQGLYLGXDOO\DQGFROOHFWLYHO\FRPSO\ZLWKEHVWSUDFWLFHVRQHFRQRPLF
environmental, and social topics whilst ensuring that the interest of all shareholder groups are considered
when taking decisions.
Economic Sustainability
Please refer pages 214 to 350. 5
ƶH(QYLURQPHQW
Labour Practice
Society
Product and Service Responsibility
6WDNHKROGHU,GHQWLƪFDWLRQ(QJDJHPHQWDQG(ƩHFWLYH&RPPXQLFDWLRQ
Sustainable Reporting and Disclosure
146

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Reference
A.1.2 Ensure that the Company’s Values and Standards are set with Emphasis on Adopting Appropriate
Accounting Policies and Fostering Compliance with Financial Regulations
ƶH%RDUG$XGLW&RPPLWWHHDQGWKH%RDUGUHVSHFWLYHO\UHYLHZDQGDSSURYH%DQNţVDFFRXQWLQJSROLFLHV 5
annually or sooner if required, to ensure that they are in line with the business model of the Bank and evolving
international and local accounting standards and industry best practices.
A.1.2 Establish a Process of Monitoring and Evaluation on Strategy Implementation, Budgets, Plans and Related
Risks
ƶH7HUPVRI5HIHUHQFHRIWKH%RDUG6WUDWHJLF3ODQQLQJ&RPPLWWHHHQVXUHVWKDWWKH5HYROYLQJ6WUDWHJLF3ODQ 5
relevant for the current year is reviewed on a quarterly basis, re-aligning strategies where ever and whenever
GHHPHGQHFHVVDU\RUDSSURSULDWHƶH6WUDWHJLF3ODQZDVGXO\UHYLHZHGE\WKLV&RPPLWWHH
quarterly, in this manner.
ƶH7HUPVRI5HIHUHQFHRIWKH%RDUG,QWHJUDWHG5LVN0DQDJHPHQW&RPPLWWHHUHTXLUHVWKH5LVN0DQDJHPHQW 5
8QLWWRDQDO\VHDQGVXEPLWWRWKH%RDUGIRU%RDUGţVLQIRUPDWLRQFRQVLGHUDWLRQDQGDSSURSULDWHDFWLRQ
WKH5LVNVDULVLQJRXWRIVWUDWHJLHVSULRUWRWKH%RDUGJUDQWLQJDSSURYDOIRUWKHUHYROYLQJ6WUDWHJLF3ODQƶH
%RDUGFRQVLGHUHGWKHULVNVKLJKOLJKWHGE\WKH5LVN0DQDJHPHQW8QLWDVULVNVDULVLQJRXWRIVWUDWHJLHVSULRUWR
approving the Revolving Strategic Plan for 2020 - 2022.
A.1.2 Ensuring that a Process is Established for Corporate Reporting on Annual and Quarterly Basis
Annual Audited Financial Statements and Quarterly Financial Statements are prepared and published 5
in accordance with the formats prescribed by the supervisory and regulatory authorities and applicable
Accounting Standards.
A.1.2 )XOƪOVXFKRWKHU%RDUG)XQFWLRQVDVDUH9LWDOJLYHQWKH6FDOH1DWXUHDQG&RPSOH[LW\RIWKH%XVLQHVV
Concerned
ƶH%RDUGLVFRPPLWWHGWRIXOƪOLWVIXQFWLRQVLQOLQHZLWKWKHODZVUHJXODWLRQVDQGJRRGJRYHUQDQFHSUDFWLFHV 5
adopted by the Bank.
A.1.3 Procedure for Directors to obtain Independent Professional Advice at the Bank’s Expense
A Board-approved Policy is in place, enabling Directors to seek and obtain Independent Professional Advice. 5
As per this Policy, Independent professional advisory services were sought on matters including the
implementation of Cyber Security, SLFRS 9 and Key Issue in the Sri Lankan Economy in 2020.
A.1.4.A Directors' Access to Advice and Services, Appointment and Removal of the Company Secretary
As per the Board-approved Policy providing Directors access to Advice and Services of the Company 5
Secretary, all Directors have the opportunity to obtain the advice and services of the Company Secretary who
is responsible for ensuring follow-up of Board procedures, compliance with relevant rules and regulations,
GLUHFWLRQVDQGVWDWXWHVNHHSLQJDQGPDLQWDLQLQJPLQXWHVDQGUHOHYDQWUHFRUGVRIWKH%DQN8QGHUWKLV
procedure, during the year under review, the Company Secretary provided advice to the Board where necessary.
ƶH$UWLFOHVRI$VVRFLDWLRQRIWKH%DQNVSHFLI\WKDWWKHDSSRLQWPHQWDQGUHPRYDORIWKH&RPSDQ\6HFUHWDU\ 5
VKDOOEHE\UHVROXWLRQLQYROYLQJWKH%RDUGƶH3URFHGXUHWR6HOHFWDQG$SSRLQW&KLHI([HFXWLYH2ƬFHUDQG
Key Management Personnel (KMP) to support the discretionary power of the Board of Directors to appoint
WKH&RPSDQ\6HFUHWDU\EDVHGRQWKHUHFRPPHQGDWLRQRIWKH%RDUG1RPLQDWLRQ&RPPLWWHHƶH%DQN
acknowledges the Company Secretary as a KMP.
A.1.4.B Insurance Cover for Board of Directors and KMPs
An insurance policy is in place to cover the Board of Directors and KMPs of the Bank. 5
A.1.5 Independent Judgement
ƶH'LUHFWRUVRIWKH%DQNKDYHQRYHVWHGLQWHUHVWLQWKH%DQNţVEXVLQHVVDQGWDNHGHFLVLRQVRQPDWWHUVEHIRUH 5
WKHPXVLQJLQGHSHQGHQWMXGJHPHQWƶH%DQNţV3ROLF\RQ0DQDJLQJ&RQƫLFWVRI,QWHUHVWWKHUHYLHZRIUHOHYDQW
transactions by the Board Related Party Transactions Review Committee and adherence to the provisions of
6HFWLRQRI%DQNLQJ$FW1RRIIXUWKHUHQVXUH'LUHFWRUVţLQGHSHQGHQFHLQMXGJHPHQW
147
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Reference
A.1.6 'HGLFDWH$GHTXDWH7LPHDQG(ƩRUWWR0DWWHUVRIWKH%RDUGDQGWKH&RPSDQ\
Dates of regular Board meetings and regular Board Sub Committee meetings are scheduled well in advance 5
DQGWKHUHOHYDQWSDSHUVDUHFLUFXODWHGJHQHUDOO\VHYHQGD\VSULRUWRWKHPHHWLQJƶHUHLVSURYLVLRQWRFLUFXODWH
papers closer to the meeting on an exceptional basis.
It is estimated that Non-Executive Directors dedicated not less than 90 hours during the year under review
IRUWKHDƩDLUVRIWKH%DQNDQGLQDGGLWLRQWKRVH'LUHFWRUVZKRDUHDOVRPHPEHUVRI%RDUG6XE&RPPLWWHHV
GHGLFDWHGQRWOHVVWKDQKRXUVIRUWKHDƩDLUVRIWKH%DQNƶHDWWHQGDQFHDWPHHWLQJVRIWKH%RDUGDQGLWV
mandatory Sub Committees is given on page 141.
A.1.7 2QHƶLUGRIWKH'LUHFWRUVFDQFDOOIRUD5HVROXWLRQWREH3UHVHQWHGWRWKH%RDUGZKHUHWKH\IHHOLWLVLQWKH
Best Interest of the Company to do so
A Board-approved Procedure is in place enabling all Directors to include proposals in the Agenda. 5
A.1.8 Training for Directors
ƶH&RPSDQ\6HFUHWDU\LQFRQVXOWDWLRQZLWKWKH&KDLUPDQUHFRPPHQGV'LUHFWRUVWRDWWHQGWUDLQLQJVHVVLRQV 5
seminars. During 2019 the following areas were covered, under Training for Directors:
y Cyber security
y Key aspects of IFRS 9 & 16 and its business implications
y Presentation on Financial Crime Compliance by E & Y
y Corporate Governance and Board Development Excellence
y Key Issue in the Sri Lankan Economy in 2020
y Lessons learnt from failed companies
y ,PSRUWDQFHRIGDWDDQGWKHMRXUQH\WRFUHDWHDGDWDGULYHQFXOWXUHLQWKHRUJDQLVDWLRQ
$GGLWLRQDOO\WKH%RDUGHQFRXUDJHVNQRZOHGJHVKDULQJDPRQJVWWKH'LUHFWRUVƶH\DOVRSDUWLFLSDWHLQWKH
VHVVLRQVRUJDQLVHGE\SURIHVVLRQDOERGLHVDQG6UL/DQND,QVWLWXWHRI'LUHFWRUVƶH%RDUGEHLQJWKHKLJKHVW
JRYHUQDQFHERG\LGHQWLƪHVWKHVLJQLƪFDQFHRIGHYHORSLQJDQGHQKDQFLQJLWVFROOHFWLYHNQRZOHGJHRQ
HFRQRPLFVHQYLURQPHQWDODQGVRFLDOWRSLFVƶHDQQXDOVHOIDVVHVVPHQWE\'LUHFWRUVDOVRFRYHUVDVSHFWVRQ
training to identify training needs for Directors.
Details of Training Programmes which were carried out during the year 2019 are given on page 139 of this
report.
In addition, an initiative was taken to conduct a formal Induction Programme for the newly appointed
Directors.
A.2 ',9,6,212)5(63216,%,/,7,(6%(7:((1&+$,50$1$1'0$1$*,1*',5(&7250'
A.2 Conducting the Business of the Board Separately; to the Executive Responsibilities of the Management of
the Company
ƶHSRVLWLRQVRIWKH&KDLUPDQDQGWKH&(20'KDYHEHHQVHSDUDWHGLQOLQHZLWKEHVWSUDFWLFHVLQRUGHUWR 5
PDLQWDLQDEDODQFHRISRZHUDQGDXWKRULW\ƶH&KDLUPDQLVD1RQ([HFXWLYH'LUHFWRUZKLOHWKH&(20'LVDQ
Executive Director.
A.3 CHAIRMAN’S ROLE
A.3 Chairman’s Role in Preserving Good Corporate Governance
ƶH&KDLUPDQţVIXQFWLRQVDQGUHVSRQVLELOLWLHVZKLFKLQFOXGHDOODVSHFWVVSHFLƪHGLQWKH&RGHWKH&RQWLQXLQJ 5
Listing Requirements of the CSE and the Banking Act Direction No. 11 of 2007 on Corporate Governance for
Licensed Commercial Banks in Sri Lanka have been documented and duly approved by the Board.
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A.3.1 Conduct Board Proceedings in a Proper Manner

ƶHURXWLQH$JHQGDIRU%RDUG0HHWLQJVKDVEHHQGHYHORSHGE\WKH&KDLUPDQLQFRQVXOWDWLRQZLWKDOORWKHU 5
'LUHFWRUVLQFOXGLQJWKH&(20'DQGWKH&RPSDQ\6HFUHWDU\ƶHVHLWHPVLQFOXGHGLVFXVVLRQVRQVWUDWHJ\
the Bank’s performance, Industry Performance, Financials, status of Human Resources, Risk Management
and Compliance, Treasury update, update on Bank’s status on Cyber Security and Information on exercising
authorities delegated by the Board upon Management.
%RDUGSURFHHGLQJVDUHFRQGXFWHGDFFRUGLQJWRWKH$JHQGDƶHSDSHUVIRUGLVFXVVLRQDQGWKH$JHQGDDUH 5
generally circulated seven days prior to the meeting through uploading the same onto iPads via a secure link.
All Directors have been provided with iPads and they can access the current as well as the past Board papers
via this secure link.
ƶH&RGHRI&RQGXFWDQG*RYHUQDQFH5HTXLUHPHQWVIRU'LUHFWRUVDQGWKH7HUPVRI5HIHUHQFHRIHDFK%RDUG 5
Sub Committee spell out the Directors’ duties and responsibilities and the standard of care required from
WKHPƶHVHGRFXPHQWVWRRKDYHEHHQXSORDGHGRQWRWKHL3DGVDVť6KDUHG'RFXPHQWVŦSURYLGLQJHDV\DQG
prompt access via the said secure link to Directors.
$OO'LUHFWRUVPDNHHƩHFWLYHFRQWULEXWLRQVDWPHHWLQJVIRUWKHEHQHƪWRIWKH%DQNRƩHULQJWKHLUYLHZVFRQFHUQV 5
DQGDGYLFHIURPWKHSRLQWRIYLHZRIGLYHUVHƪHOGVDQGWKHLUUHVSHFWLYHSURIHVVLRQV
All Directors have access to Management to seek Information for discussions at Board Meetings. Board papers 5
are quite informative and any further information required by Directors are provided by the Management,
upon request. All Directors have the liberty to request inclusion of matters of concern in the Agenda, which
is supported by the Board-approved Procedure to enable Directors to include matters and proposals in the
Agenda.
Board’s composition being Eleven Non-Executive Directors and One Executive Director, the required balance 5
DQGLQGHSHQGHQFHLQMXGJHPHQWVLVHQVXUHGDQGPDLQWDLQHG
ƶH0LQXWHVRI%RDUG0HHWLQJVDQG%RDUG6XE&RPPLWWHH0HHWLQJVFDUU\YDULRXVFRQFHUQVUDLVHGDQGYLHZV 5
expressed by Directors individually in the deliberations as precisely as possible.
ƶH%RDUGLVDZDUHRILWVUHVSRQVLELOLW\WRZDUGVDOOVWDNHKROGHUVRIWKH%DQNDQGDUHLQFRQWURORIWKHDƩDLUVRI 5
the Bank.
A.4 FINANCIAL ACUMEN
A.4 $YDLODELOLW\RI)LQDQFLDO$FXPHQDQG.QRZOHGJHWRRƩHU*XLGDQFHRQ0DWWHUVRI)LQDQFH
Financial acumen has been a key attribute of the successful careers of the following Directors who have held 5
VHQLRUPDQDJHPHQWSRVLWLRQVUHODWHGWRƪQDQFHLQRWKHUOHDGLQJƪQDQFLDOLQVWLWXWLRQV
y 0U6DQMLYD6HQDQD\DNH y Mr Ranil Pathirana y Mr Rushanka Silva
y 0U'LOLSGH6:LMH\HUDWQH y Ms Aroshi Nanayakkara y Mr Deshal de Mel

A.5 BOARD BALANCE
A.5.1 1RQ([HFXWLYH'LUHFWRUVRI6XƬFLHQW&DOLEUHDQG1XPEHU
ƶH%RDUGFRPSULVHG(OHYHQ1RQ([HFXWLYH'LUHFWRUVLQFOXGLQJWKH&KDLUPDQDQGRQH([HFXWLYH'LUHFWRUZKR 5
LVWKH&(20'WKHPDMRULW\EHLQJ1RQ([HFXWLYH'LUHFWRUVDVSUHVFULEHGE\WKH&RGH
ƶH1RQ([HFXWLYH'LUHFWRUVDUHSURIHVVLRQDOVDFDGHPLFVEXVLQHVVOHDGHUVKROGLQJKDYLQJKHOGVHQLRU 5
SRVLWLRQVLQWKHLUUHVSHFWLYHƪHOGVZKRDUHGHHPHGWREHRIVXƬFLHQWDQGDSSURSULDWHFDOLEUH$VWKHPDMRULW\
RIWKH%RDUGFRPSULVHV1RQ([HFXWLYH'LUHFWRUVWKHLURSLQLRQVDQGYLHZVFDUU\VLJQLƪFDQWZHLJKWLQWKH%RDUG
decisions.
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Reference
0U6DQMLYD6HQDQD\DNHWKH6HQLRU,QGHSHQGHQW'LUHFWRURIWKH%DQNKDVVHUYHGLQNH\PDQDJHULDOSRVLWLRQV 5
LQVHYHUDOORFDODQGIRUHLJQ)LQDQFLDO,QVWLWXWLRQVLQFOXGLQJWKH,QWHUQDWLRQDO)LQDQFH&RUSRUDWLRQ,)&ƶH
Chairman holds a Doctorate in Civil Engineering Economics and another Director holds a PhD in Computer
Science. MD is a Senior Fellow Member of the Institute of Bankers of Sri Lanka (IBSL). Six Directors, including
the MD, hold Masters’ Degrees in Business Administration, Science - (Engineering) and Law respectively.
Five members hold Bachelor’s degrees in Commerce, Law and Arts (Management). One Director is a Fellow
Member and two Directors are Associate Members of the Chartered Institute of Management Accountants –
8.ZKLOVWRQH'LUHFWRULVDQ$VVRFLDWHPHPEHURIWKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI6UL/DQNDZKRLV
DOVRD)HOORZ0HPEHURIWKH&KDUWHUHG,QVWLWXWHRI0DQDJHPHQW$FFRXQWDQWVŠ8.
Executive Directors & Non-Executive Directors
11
Non-Executive Directors
Executive Directors
A.5.2 7ZRƶLUGVRIWKH1RQ([HFXWLYH'LUHFWRUVVKRXOGEH,QGHSHQGHQW
Criteria to deem a Director “Independent” 5
Nine (09) of the Non-Executive Directors of the Bank are Independent of management and free of any
business or other relationship that could materially interfere with or could reasonably be perceived to
PDWHULDOO\LQWHUIHUHZLWKWKHH[HUFLVHRIWKHLUXQIHWWHUHGDQGLQGHSHQGHQWMXGJHPHQWPHHWLQJWKHFULWHULD
of both, the Code as well as of the Banking Act Direction No. 11 of 2007 Corporate Governance for Licensed
Commercial Banks issued by the Central Bank of Sri Lanka (CBSL), and complying with the regulatory
requirement.
Independent Directors &

Non-Independent Directors
Independent Directors
Non-Independent Directors
150

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Reference
A.5.3 Independence of Non-Executive Directors

Nine (09) of the Non-Executive Directors are independent of management and free of any business or other 5
relationship that could materially interfere with or could reasonably be perceived to materially interfere with
WKHH[HUFLVHRIWKHLUXQIHWWHUHGDQGLQGHSHQGHQWMXGJHPHQW
A.5.4 Annual Declarations have been obtained from each Non-Executive Director as to the status of 5
Independence/Non-Independence for the year 2019
(32) A.5.5 Annual Evaluation of Independence
ƶH%RDUGFDUULHGRXWWKHDQQXDOHYDOXDWLRQRILQGHSHQGHQFHRIWKH'LUHFWRUVEDVHGRQWKHVXEPLVVLRQRIWKH 5
annual declarations. Based on these, the following Directors were deemed to be independent as at 31.12.2019:
y Prof Malik Ranasinghe y 0U6DQMLYD6HQDQD\DNH y 0UV'KDUD:LMD\DWLODNH
y Ms Annika Senanayake y Mr Ranil Pathirana y Ms Aroshi Nanayakkara
y Mr Deshal de Mel y 'U6DQMLYD:HHUDZDUDQD y 0U'LOLSGH6:LMH\HUDWQH
ƶHUHZHUHQR'LUHFWRUVGHHPHG,QGHSHQGHQWZKHUHDOOFULWHULDZHUHQRWPHW
A.5.6 Alternate Directors
An executive of the Company should not be appointed as an Alternate Director of the Company. 5
ƶH$OWHUQDWHWRDQ,QGHSHQGHQW'LUHFWRUVKRXOGPHHWWKHFULWHULDRILQGHSHQGHQFHDQGFRQVHTXHQWWR
the appointment of the Alternate Director, the minimum number of Independent Directors also should be
VDWLVƪHG$VWKH%RDUGDSSURYHGSROLF\WKHDSSRLQWPHQWRI$OWHUQDWH'LUHFWRUVWRUHSUHVHQW'LUHFWRUVDW
PHHWLQJVFDQEHGRQHZKHUHQHFHVVDU\VXEMHFWWRUHJXODWRU\UHTXLUHPHQWV$SSURYDOV
However, there were no alternate Directors appointed during the year 2019.
$D $SSRLQWPHQWRI6HQLRU,QGHSHQGHQW'LUHFWRU6,'
0U6DQMLYD6HQDQD\DNHKDVEHHQDSSRLQWHGDVWKH6HQLRU,QGHSHQGHQW'LUHFWRU6,'RIWKH%DQNWRVKDUHKLV 5
expertise knowledge among the Board members.
$E Meetings with the Senior Independent Director
Even though the Chairman of the Bank is Independent, the Bank has decided to retain the SID due to the 5
H[SHULHQFHDQGH[SHUWLVHKHSRVVHVVƶH6,'KHOGPHHWLQJVZLWKWKH1RQ([HFXWLYH'LUHFWRUVWZLFHGXULQJ
2019 and with the Executive Director once.
A.5.8 ƶH6,'LVDYDLODEOHIRUWKH1RQ([HFXWLYH'LUHFWRUVIRU&RQƪGHQWLDO'LVFXVVLRQVDQG3DUWLFLSDWHGDWWKH 5
Shareholders’ Meetings during the Year
A.5.9 Chairman to hold Meetings with Non-Executive Directors, without Executive Directors being Present
Chairman held two meeting with the Non-Executive Directors without the Executive Director being present 5
during the year 2019.
A.5.10 Recording of Directors’ Concerns in Board Minutes
Board Minutes are prepared in order to record any concerns of the Board as a whole or those of individual 5
'LUHFWRUVUHJDUGLQJPDWWHUVSODFHGIRUWKHLUDSSURYDOJXLGDQFHDFWLRQƶHVH0LQXWHVDUHFLUFXODWHGDQG
formally approved at the subsequent Board meeting. In the process of minuting the proceedings of a meeting,
the concerns raised by each Director is clearly recorded together with the responses of the others.
A.6 SUPPLY OF RELEVANT INFORMATION
A.6.1 Provision of Appropriate and Timely Information
ƶHPDQDJHPHQWSURYLGHVFRPSUHKHQVLYHLQIRUPDWLRQLQFOXGLQJERWKTXDQWLWDWLYHDQGTXDOLWDWLYHLQIRUPDWLRQ 5
IRUWKHPRQWKO\%RDUG0HHWLQJVJHQHUDOO\VHYHQGD\VSULRUWRWKH%RDUGPHHWLQJVƶH'LUHFWRUVDOVRKDYHIUHH
and open access to Management at all levels to obtain further information or clarify any concerns they may
have. As described above, they also have the right to seek independent professional advice at the Company’s
expense, in support of which a Board-approved Policy is in place and copies of advice obtained in this manner
are circulated to other Directors who request it.
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Reference
A.6.1 Chairman to Ensure all Directors are Properly Briefed on Issues Arising at Board Meetings
All Directors are promptly and adequately briefed on matters arising at Board meetings through 5
comprehensive Board Papers. Additionally, the relevant members of the Management team are on standby for
IXUWKHUFODULƪFDWLRQVDVPD\EHUHTXLUHGE\'LUHFWRUVRUZLOOPDNHSUHVHQWDWLRQVDW%RDUGPHHWLQJV
Any Director who was unable to attend a meeting is updated on proceedings prior to the next meeting through:
y Formally documented minutes of meetings.

y A separate document on matters arising out of minutes is prepared highlighting the items which need to
EHFRPSOHWHGDQGQHHGIROORZXSDFWLRQRIWKHSUHYLRXVPHHWLQJVƶLVLVWDNHQXSLPPHGLDWHO\DIWHU
FRQƪUPDWLRQRIPLQXWHV
y Archived minutes and Board papers accessible electronically at the convenience of the Directors.
A.6.2 Board Papers and Agenda to be Circulated Seven Days Prior to Meetings
$VGHVFULEHGDERYH%RDUGSDSHUVDUHJHQHUDOO\FLUFXODWHGVHYHQGD\VEHIRUHWKHPHHWLQJƶHUHLVSURYLVLRQ 5
for circulation of urgent papers and/or papers on highly sensitive matters with a shorter notice and also for
approval of matters by circulation, but such instances are the exception and not the rule.
Minutes of Board meetings are provided within the stipulated period wherever possible. 5
A.7 APPOINTMENTS TO THE BOARD
A.7.1 Formal and Transparent Procedure for New Appointments through an Established Nomination Committee
ƶH%RDUGKDVHVWDEOLVKHGD%RDUG1RPLQDWLRQ&RPPLWWHHZKRVH7HUPVRI5HIHUHQFHFRPSOLHVZLWKWKH 5
Specimen given in the Code and with the Banking Act Direction No. 11 of 2007 on Corporate Governance for
Licensed Commercial Banks. Membership of the Board Nomination Committee is given on page 189 of the
Annual Report. Accordingly, New Directors (both Executive and Non-Executive) are appointed by the Board
upon consideration of recommendations by the Board Nomination Committee in terms of the Board-approved
Policy on Selection, Nomination, Appointment and Election of Directors which is in place, in support of this
process.
A.7.2 Annually Assess Board Composition
ƶH%RDUGDQQXDOO\DVVHVVHVLWVFRPSRVLWLRQWRDVFHUWDLQZKHWKHUWKHFRPELQHGNQRZOHGJHVNLOODQG 5
H[SHULHQFHRIWKH%RDUGPDWFKHVWKHVWUDWHJLFGHPDQGVIDFLQJWKH%DQNDQGLVVDWLVƪHGWKDWLWPDWFKHVWKH
requirements demanded.
ƶH%RDUG1RPLQDWLRQ&RPPLWWHHFRQVLGHUVWKHRXWFRPHRIVXFKDVVHVVPHQWVZKHQDSSRLQWPHQWVWRWKH
Board are proposed.
A.7.3 Disclosure of Information to Shareholders upon Appointment of New Directors
All new appointments to the Board are communicated to the shareholders via the Colombo Stock Exchange in 5
WKH(QJOLVKODQJXDJHWRJHWKHUZLWKEULHIUHVXPHVRIVXFK'LUHFWRUV6XFKDQQRXQFHPHQWVVHWVRXWWKHƪHOGV
of such Director’s expertise, his/her directorships in other companies, the number of shares he/she holds in
the Bank, whether he/she is appointed as an Executive Director or a Non-Executive Director, and whether as an
Independent Director or as a Non-Independent Director.
ƶHDSSRLQWPHQWRIWKHIROORZLQJ'LUHFWRUVZHUHDQQRXQFHGWRWKHSXEOLFLQWKLVPDQQHU
y Ms Aroshi Nanayakkara y 'U6DQMLYD:HHUDZDUDQD y Mr Deshal de Mel
)XUWKHUWKHSURƪOHVRIWKHFXUUHQW'LUHFWRUVDUHJLYHQRQSDJHVWRLQWKLV$QQXDO5HSRUWZKLFKKDVEHHQ
translated into Sinhala as well, in keeping with the traditions of the Bank.
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A.8 RE-ELECTION
A.8 $OO'LUHFWRUVVKRXOG6XEPLWƶHPVHOYHVIRU5H(OHFWLRQDW5HJXODU,QWHUYDOV
As per the Articles of Association of the Bank, one-third of the Directors retire at each Annual General Meeting 5
DQGRƩHUWKHPVHOYHVIRUUHHOHFWLRQ6XFK'LUHFWRUVZKRUHWLUHDUHWKRVHZKRKHOGRƬFHIRUWKHORQJHVWSHULRG
VLQFHWKHLUHOHFWLRQUHDSSRLQWPHQW,QDFFRUGDQFHZLWKWKLVSURYLVLRQWKHIROORZLQJ'LUHFWRUVUHWLUHDQGRƩHU
themselves for re-election at the 34th Annual General Meeting:
y 0U6DQMLYD6HQDQD\DNH y Ms Annika Senanayake y Mr Rushanka Silva
y 0U'LOLSGH6:LMH\HUDWQH
Following Directors were re-elected at the 33rd Annual General Meeting:

y Mr Ranil Pathirana y Mr Deepal Sooriyaarachchi y Prof Malik Ranasinghe
y 0UV'KDUD:LMD\DWLODNH
A brief resume of each Director standing for re-election is provided in English and Sinhala to enable
shareholders to make an informed decision.
ƶH%RDUGDQGWKH%RDUG1RPLQDWLRQ&RPPLWWHHDUHDFWLYHO\HQJDJHGLQVXFFHVVLRQSODQQLQJIRUERWK
Executive and Non-Executive Directors to ensure that Board composition is periodically reviewed to ensure and
WKDWWKH%RDUGUHWDLQVLWVHƩHFWLYHQHVVDWDOOWLPHV
A.8.1 1RQ([HFXWLYH'LUHFWRUVDUH$SSRLQWHGIRU6SHFLƪHG7HUPV6XEMHFWWR5H(OHFWLRQ
Non-Executive Directors are appointed with approval of the Central Bank of Sri Lanka (CBSL) and stand for 5
election at the immediately succeeding Annual General Meetings in terms of Articles of Association of the Bank.
ƶLVLVLQFRPSOLDQFHZLWKWKHUHTXLUHPHQWVRIWKH&RGHDVZHOODVWKHVDLG&%6/'LUHFWLRQ1RRI
0V$URVKL1DQD\DNNDUD'U6DQMLYD:HHUDZDUDQDDQG0U'HVKDOGH0HOZKRZHUHDSSRLQWHGWRWKH%RDUG
ZHIDQGUHVSHFWLYHO\ZLOOEHVXEMHFWWRHOHFWLRQE\WKHVKDUHKROGHUVDWWKH
Annual General Meeting to be held on 30.03.2020.
A.8.2 All Directors including Chairman to be Subject to Election at First Opportunity after Appointment and Re-
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All Non-Executive Directors stand for election by shareholders at Annual General Meetings immediately 5
IROORZLQJWKHLUDSSRLQWPHQW0U'LOLSGH6:LMH\HUDWQHZKRZDVDSSRLQWHGWRWKH%RDUGGXULQJWKHODWWHUSDUW
of 2018, was elected by the shareholders at the 33rd Annual General Meeting held on 29th March 2019.
0V$URVKL1DQD\DNNDUD'U6DQMLYD:HHUDZDUDQDDQG0U'HVKDOGH0HOZKRZHUHDSSRLQWHGWRWKH%RDUGZHI
DQGUHVSHFWLYHO\WRƪOOXSFDVXDOYDFDQFLHVLQWKH%RDUGZLOOFRPHXSIRU
election by the shareholders at the Annual General Meeting to be held in 30th March 2020.
As per the Articles of Association of the Bank, one-third of the total Directors retire at each Annual General 5
0HHWLQJDQGRƩHUWKHPVHOYHVIRUUHHOHFWLRQ
A.8.3 Resignation of a Director
In the event that a Director wishes to resign from his/her position as a Director, he/she is expected to provide 5
a written communication to the Board formally tabling his/her resignation along with reasons for such
resignation. Such request would be duly tabled at the immediately succeeding Board Meeting.
During the year under review, Mr Channa Palansuriya tendered his resignation w.e.f. 01.04.2019.
A.9 APPRAISAL OF BOARD PERFORMANCE
A.9.1 Appraisal of Board Performance
Each Director of the Board annually appraises the Board’s own performance to ensure that the Board is 5
GLVFKDUJLQJLWVUHVSRQVLELOLWLHVVDWLVIDFWRULO\ƶLVSURFHVVUHTXLUHVHDFK'LUHFWRUWRƪOOD%RDUG3HUIRUPDQFH
(YDOXDWLRQ)RUPLQOLQHZLWKWKHSURYLVLRQVRIWKHUHOHYDQW6HFWLRQRIWKH&RGHƶHUHVSRQVHVDUHUHYLHZHGE\
the Company Secretary who compiles a report which is submitted for discussion at a Board Meeting.
153
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A.9.2 Appraisal of Board Sub Committees

ƶHDQQXDOVHOIDVVHVVPHQWRIWKH%RDUG6XE&RPPLWWHHVWRRIROORZVDVLPLODUSURFHVVDQGWKHUHSRUWVDUH 5
retained by the Company Secretary.
A.9.3 Process to Review Directors’ Performance at the Time of Re-Election
A Self Review process to ascertain the extent of the contribution participation and engagement of each Director 5
is followed simultaneously with the Board Performance Evaluation by the Directors.
A.9.4 Disclosure of the Method of Appraisal of the Board and Board Sub Committee Performance
As explained in A.9.1, A.9.2 and A.9.3 above 5
A.10 DISCLOSURE OF INFORMATION IN RESPECT OF DIRECTORS
Shareholders should be kept advised of relevant details in respect of Directors
A.10.1 $QQXDO5HSRUW'LVFORVHVWKH)ROORZLQJ,QIRUPDWLRQ5HODWLQJWR'LUHFWRUV
y 1DPHTXDOLƪFDWLRQVH[SHUWLVHLQUHOHYDQWIXQFWLRQDODUHDVPDWHULDOEXVLQHVVLQWHUHVWVDQGDEULHISURƪOH 5
of each Director is given on pages 20 to 25.
y Each Director’s Executive/Non-Executive and Independent/Non-Independent status is given on pages 20 5
to 25.
y Related Party Transactions are given on pages 306 to 309. 5
y Names of companies and other entities in which each Director concerned serves as a Board member are 5
given on pages 20 to 25.
y Membership of Directors in Board Mandatory Sub Committees are given on pages 185 to 192 and their 5
attendance at Board Meetings and Board Sub Committee meetings are given on page 141.
A.11 $335$,6$/2)&+,()(;(&87,9(2)),&(5&(20$1$*,1*',5(&7250'
ƶH%RDUGVKRXOGDWOHDVWDQQXDOO\DVVHVVWKHSHUIRUPDQFHRIWKH&(2
A.11.1 Set Reasonable Financial and Non-Financial Targets to be Met by the CEO/MD
ƶH%RDUGGLVFXVVHGDQGVHWƪQDQFLDODQGQRQƪQDQFLDOWDUJHWVWREHDFKLHYHGGXULQJWKH\HDUE\WKH0'ZLWK 5
UHIHUHQFHWRWKHVKRUWPHGLXPDQGORQJWHUPREMHFWLYHVRIWKH%DQNDWWKHEHJLQQLQJRIƶHWDUJHWVIRU
2020 were also set at the end of 2019.
A.11.2 Evaluate Performance of the CEO/MD with Reference to Targets
ƶHSHUIRUPDQFHHYDOXDWLRQRIWKH0'IRUZDVFDUULHGRXWE\WKH%RDUG+5 5HPXQHUDWLRQ&RPPLWWHH 5
ZLWKUHIHUHQFHWRWDUJHWVDQGJRDOVDFKLHYHGE\WKH%DQNZKLFKZHUHUHSRUWHGWRWKH%RDUGƶH%RDUG
expressed its satisfaction at the MD’s level of performance during 2018.
B DIRECTORS’ REMUNERATION
B.1 REMUNERATION PROCEDURE
B.1.1 Appointment of a Remuneration Committee
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Committee) to develop policies and recommend remuneration for the Directors and KMPs respectively for
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this Committee is substantially in compliance with Schedule C of the Code and other regulatory guidelines and
the Committee held 09 meetings during the year under review.
ƶH%RDUGIROORZVWKH%RDUGDSSURYHG5HZDUG0DQDJHPHQW3ROLF\IRU.H\0DQDJHPHQW3HUVRQQHODVZHOO
as the Board-approved Directors’ Remuneration Policy in recommending remuneration for the KMPs and
Directors for approval by the Board.
Further information regarding the Board HR & Remuneration Committee is given in the Board HR & 5
Remuneration Committee Report on page 188.
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B.1.2 & B.1.3 Remuneration Committee to Comprise Exclusively of Non-Executive Directors, of whom the Majority should
be Independent whilst the Chairperson of the Committee should be an Independent Director
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y0UV'KDUD:LMD\DWLODNH&KDLUSHUVRQ 1(',1'
y0U6DQMLYD6HQDQD\DNH 1(',1'
yMrs Saumya Amarasekera (NED/NID)
yMs Annika Senanayake (NED/IND)
y0U'LOLSGH6:LMH\HUDWQH 1(',1'
yMs Aroshi Nanayakkara (NED/IND)
yMr Deshal de Mel (NED/IND)
(NID - Non-Independent Director, IND - Independent Director, NED - Non-Executive Director)
B.1.4 Remuneration for Non-Executive Directors
Remuneration of Non-Executive Directors is determined by the Board as a whole, in accordance with the 5
Board-approved Policy on Directors’ Remuneration, in accordance with the Articles of Association of the
Company.
B.1.5 Remuneration of Executive Directors
Remuneration of Executive Directors is recommended by the Board HR & Remuneration Committee which has 5
access to professional advice from within or outside the Bank in formulating their proposals for approval by the
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ƶH%RDUGDSSURYHG5HZDUG0DQDJHPHQW3ROLF\IRU.03VZKLFKLVLQSODFHJRYHUQVWKHUHPXQHUDWLRQRIWKH
Executive Directors as well, the Executive Directors being a KMP.
B.2 THE LEVEL AND MAKEUP OF REMUNERATION
B.2.1 & B.2.2 Remuneration for Executive Directors should Attract, Retain and Motivate
Remuneration for Executive Directors designed to attract, retain and motivate them as determined by the 5
%RDUG+5 5HPXQHUDWLRQ&RPPLWWHHƶH%DQNLVVHUYHGE\RQH([HFXWLYH'LUHFWRUZKRLVWKH0DQDJLQJ
'LUHFWRU+LVUHPXQHUDWLRQFRPSULVHVDƪ[HGVDODU\FRPSRQHQWZKLFKLQFOXGHVSHUTXLVLWHVDQGDOORZDQFHVDV
well as a performance based component linked to achievement of both qualitative and quantitative aspects of
the Bank’s corporate targets and his individual targets. Board HR & Remuneration Committee considers market
practices and seeks professional advice when required in order to discharge its responsibilities with regard to
recommending on remuneration of the Executive Director.
B.2.3 Positioning Company Remuneration Levels Relative to Other Companies
ƶH%RDUG+5 5HPXQHUDWLRQ&RPPLWWHHUHYLHZVWKH%DQNţVUHPXQHUDWLRQOHYHOVLQUHODWLRQWRWKHLQGXVWU\ 5
VWDQGDUGVRIWKHFRXQWU\$VDODU\VXUYH\RIVSHFLƪFMRESRVLWLRQVKHOGE\WKH&RUSRUDWH0DQDJHPHQWDQG
WKHVWDƩDVDZKROHZDVIROORZHGWRGHWHUPLQHVDODULHVE\WKH%RDUGXSRQUHFRPPHQGDWLRQE\%RDUG+5
Remuneration Committee during the year under review.
B.2.4 Sensitivity of the Remuneration Committee to Remuneration and Employment Conditions
Board HR & Remuneration Committee is mindful of the comparative employment conditions and considers 5
the nature and extent of responsibility, the work volume and the level of performance against the targets set at
the beginning of the year when considering the team based performance based incentives.
B.2.5 Performance Related Elements of Remuneration for Executive Directors
Considering the recommendations made by the Board HR and Remuneration Committee, after much 5
deliberations, the Board-approved an extremely challenging, but transparent set of targets for the MD, who
LVWKHRQO\([HFXWLYH'LUHFWRURIWKH%DQNƶHVHWDUJHWVDUHLQWHQGHGWRHDUQWKHKLJKHVWYDOXHDGGLWLRQVWR
all stakeholders, of which, a component is directly linked to the performance related component of the MD’s
remuneration.
B.2.6 Share Option Schemes
No share option scheme was implemented or introduced during 2019. 5
155
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Reference
B.2.7 Designing Schemes of Performance Related Remuneration

A scheme of team based performance related remuneration has been in force in the Bank since 2016. 5
+RZHYHUXQGHUWKLVVFKHPHQRSHUIRUPDQFHUHODWHGUHPXQHUDWLRQLVJUDQWHGZLWKHƩHFWLQWKHUHWURVSHFW
B.2.8 Early Termination of Employment of Directors
1R&RQWUDFWIRU6HUYLFHVKDVEHHQHQWHUHGLQWRE\WKH%DQNZLWKLWV1RQ([HFXWLYH'LUHFWRUVƶHWHUPRID 5
Director (whether Executive or Non-Executive) would come to an end in the circumstances set out in the Board-
approved Procedure for Selection, Nomination and Appointment of Directors. No compensation is payable by
WKH&RPSDQ\WRLWV1RQ([HFXWLYH'LUHFWRUVRQťHDUO\GHWHUPLQDWLRQŦRIWHUPIRUDQ\UHDVRQZKDWVRHYHUƶLVLV
supported by the Board-approved Directors’ Remuneration Policy which is in place.
ƶHWHUPVRIHPSOR\PHQWRIWKH0'ZKRLVDQHPSOR\HHRIWKH%DQNDUHJRYHUQHGE\WKHWHUPVRIKLV
Contract of Employment.
B.2.9 Dealing with Early Termination
As stated in B 2.8 above, the Bank has not adopted a Policy or a practice to grant compensation to Non- 5
Executive Directors whose term is prematurely determined for any reason whatsoever. As stated previously, the
terms of employment of the MD, who is an employee of the Bank, are governed by the terms of his Contract of
Employment.
B.2.10 Levels of Remuneration for Non-Executive Directors
ƶH%RDUGDVDZKROHGHWHUPLQHVWKHOHYHOVRIUHPXQHUDWLRQIRU1RQ([HFXWLYH'LUHFWRUVWDNLQJLQWRDFFRXQW 5
the time, commitment and responsibilities of their role and market practices. Remuneration for Non-Executive
Directors does not include share option schemes. A Board-approved policy on Directors’ Remuneration is in
place, setting out the Bank’s policy and principles with regard to remuneration for the Non-Executive Directors.
B.3 DISCLOSURE OF REMUNERATION
B.3.1 Composition of Board HR & Remuneration Committee, Remuneration Policy and Disclosure of Aggregate
Remuneration Paid to Directors
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ƶHDJJUHJDWHUHPXQHUDWLRQWR([HFXWLYHDQG1RQ([HFXWLYH'LUHFWRUVDUHJLYHQLQ1RWHWRWKH)LQDQFLDO 5
Statements on page 306.
Names of the Members of the Board Human Resources & Remuneration Committee are disclosed on page 5
188 in this Annual Report.
C RELATIONS WITH SHAREHOLDERS
C.1 &216758&7,9(86(2)7+($118$/*(1(5$/0((7,1*$*0$1'&21'8&72)*(1(5$/0((7,1*6
C.1.1 Constructive Use of the AGM & other General Meetings
ƶH$QQXDO*HQHUDO0HHWLQJLVWKHPDLQIRUXPIRUFRQWDFWEHWZHHQVKDUHKROGHUVDQGWKH%RDUGƶH%DQN 5
has a history of being one of the most attended AGMs in the country. A separate Sub Committee of the Board,
Board Shareholder Relations Committee, has been established for the purpose of building up relations
ZLWKWKHVKDUHKROGHUVDQGDGGUHVVLQJWKHLUFRQFHUQVƶLV&RPPLWWHHFRQGXFWVDQRSHQIRUXPZLWKWKH
shareholders immediately following the AGM each year. In addition, the Committee met on 02 occasions in
order to follow up on the proposals submitted by shareholders at the Shareholders’ forum in 2019 as well as
those submitted from time to time during the year.
ƶH$QQXDO5HSRUWWRJHWKHUZLWKWKH1RWLFHRIWKH$*0DQGWKHRWKHUSDSHUVUHODWHGWKHUHWRDUHGXO\ 5
circulated to all shareholders, 15 working days prior to the AGM and a Sinhala version is also published each
year and dispatched to shareholders, who have requested for a Sinhala translation of the same. Shareholders
are previously requested to notify their respective language preference to receive the Annual Report.
Additionally, the Chairman’s and MD’s messages are translated into Tamil as well each year.
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C.1.2 Adoption of Separate Resolution and Count of all Proxy Votes Lodged
A separate resolution to be proposed on each substantially separate issue and particularly relating to the 5
adoption of the Annual Report of the Board of Directors (the Report) and the Accounts.
$VHSDUDWHUHVROXWLRQZDVSURSRVHGDQGDGRSWHGRQHDFKVXEVWDQWLDOO\VHSDUDWHLVVXHƶH5HSRUWDQGWKH
Accounts were adopted by separate resolutions.
All proxy votes lodged, together with the votes of shareholders present at the AGM are considered for each 5
resolution. Any votes withheld were not considered in determining the number of votes for and against each
resolution.
C.1.3 To Ensure that all Valid Proxy Appointments Received for General Meetings are Properly Recorded and
Counted
ƶH%DQNGXO\PDLQWDLQVDUHJLVWHUZKHUHWKH3UR[LHVUHFHLYHGDUHUHJLVWHUHGƶHUHJLVWHULVFORVHGDIWHUWKH 5
deadline for Proxies to be lodged as per the Notice of Meeting and the number of votes received for and
against each resolution is announced at the relevant General Meeting.
At the meeting, for adoption of each resolution, the Chairman, in addition to the details of the Proxies 5
registered, calls for a vote by show of hands followed by the announcement as to whether the resolution is
carried or not.
C.1.4 Availability of Board Sub Committee Chairperson at AGM
Board Sub Committee Chairpersons are present at the AGM as a rule, to answer any questions raised at the 5
AGM (unless prevented by ill health or due to urgent unavoidable circumstances), who will respond when
requested to do so by the Chairman.
At the AGM held on 29th March 2019, the following Chairpersons were present:
yMr Ranil Pathirana (Chairman - Board Audit Committee)
y0UV'KDUD:LMD\DWLODNH &KDLUSHUVRQ%RDUG+XPDQ5HVRXUFHV 5HPXQHUDWLRQ&RPPLWWHH
Board Related Party Transactions Review Committee)
yMs Annika Senanayake (Chairperson - Board Nomination Committee)
yProf Malik Ranasinghe (Chairman - Board Credit Committee, Board Shareholder Relations
Committee, Board IT Committee & Board Capital Planning Committee)
yMr Channa Palansuriya (Chairman - Board Strategic Planning Committee)
yMr Deepal Sooriyaarachchi (Chairman - Board Marketing Committee)
0U6DQMLYD6HQDQD\DNH&KDLUPDQ%RDUG,QWHJUDWHG5LVN0DQDJHPHQW&RPPLWWHH %RDUG7UHDVXU\
Committee, was unable to attend the AGM due to unavoidable circumstances.
C.1.5 Circulation of Notice of AGM and Related Documents to Shareholders
Notice of the AGM and related papers are circulated to shareholders at least 15 working days prior to the 5
meeting in accordance with the regulations.
C.1.5 Summary of Procedures Governing Voting at the AGM
A summary of the procedure governing voting at the AGM is provided in the Proxy Form, which is circulated to 5
shareholders 15 working days prior to the AGM.
157
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Reference
C.2 COMMUNICATION WITH SHAREHOLDERS

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C.2.1 A Channel to be Available to Reach all Shareholders of the Company for Timely Dissemination of
Information
ƶH%DQNSRVWVRQLWVZHEVLWHZZZVDPSDWKONFRSLHVRI$QQXDO5HSRUWV,QWHULP5HSRUWVDQGDOORWKHU 5
PDWHULDOLQIRUPDWLRQUHODWLQJWRWKH%DQNƶHVHDUHSRVWHGRQWKHZHEVLWHDVVRRQDVSUDFWLFDEOHDIWHUWKH\
have been released to the Colombo Stock Exchange.
All public disclosures of the Bank (immediate or otherwise) promptly reach the shareholders through the
0DUNHW$QQRXQFHPHQWVPDGHE\WKH&RPSDQ\ƶH%DQNSURYLGHVIDLUGLVFORVXUHVZLWKHPSKDVLVRQWKH
integrity, accuracy, timeliness and relevance of the information provided.
In addition, the Board has appointed a Sub Committee on Shareholder Relations tasked with identifying and
DGGUHVVLQJWKHVKDUHKROGHUVţFRQFHUQV,WLVWKHƪUVWOLVWHGFRPSDQ\LQ6UL/DQNDWRIRUPVXFKD&RPPLWWHHƶLV
Committee conducts an annual Shareholder Relations Forum to identify shareholder concerns. Additionally,
the AGM is also a key forum for contact with shareholders and the Bank has a proud history of well attended
$*0VZKHUHVKDUHKROGHUVWDNHDQDFWLYHUROHLQH[HUFLVLQJWKHLUULJKWVƶH$QQXDO5HSRUWLVWUDQVODWHGLQWR
Sinhala and the Chairman’s and MD’s messages are translated into Sinhala and Tamil as well to facilitate
further communication with shareholders.
C.2.2 Policy and Methodology for Communication with Shareholders
A Board-approved Policy on Communication is in place, in which the provisions for communicating with 5
VKDUHKROGHUVDUHVSHFLƪFDOO\DGGUHVVHG
C.2.3 Implementation of the Policy and Methodology for Communication with Shareholders
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,PSOHPHQWDWLRQ0HFKDQLVPŦLQWKHVDLG3ROLF\VSHOORXWWKHUHVSRQVLELOLWLHVRIGLƩHUHQWRƬFHUVFDWHJRULHVRI
RƬFHUVZLWKUHJDUGWRFRPPXQLFDWLRQZLWKGLƩHUHQWFDWHJRULHVRIVWDNHKROGHUV
(79) C.2.4 & C.2.6 Contact Person in Relation to Shareholder Matters
ƶH&RPSDQ\VKRXOGGLVFORVHWKHFRQWDFWSHUVRQRUVXFKFRPPXQLFDWLRQ
6KDUHKROGHUVKDYHEHHQGXO\QRWLƪHGWKDWDQ\FRPPXQLFDWLRQFRUUHVSRQGHQFHZLWKWKH%DQNVKRXOGEH 5
through the Company Secretary, though they are at liberty even to communicate directly with any of the Board
0HPEHUVƶHFRQWDFWQXPEHUVRIWKH&RPSDQ\6HFUHWDU\LVSURYLGHGLQWKH$QQXDO5HSRUWRQ,QQHU%DFN
Cover.
Additionally, shareholders may, at any time, direct questions to and request for publicly available information
IURPWKH'LUHFWRUVRUPDQDJHPHQWRIWKH%DQNƶH\PD\DOVRSURYLGHWKHLUFRPPHQWVDQGVXJJHVWLRQVWRWKH
Directors or Management through the Company Secretary.
C.2.5 Process to Make all Directors Aware of Major Issues and Concerns of Shareholders
ƶH&RPSDQ\6HFUHWDU\PDLQWDLQVDUHFRUGRIDOOFRUUHVSRQGHQFHUHFHLYHGDQGGLUHFWVDVVRRQDVSUDFWLFDEOH 5
such correspondence to the Board Shareholder Relations Committee as per its Terms of Reference, to
LQGLYLGXDO'LUHFWRUVRUWKHUHOHYDQWRƬFHUVDVDSSOLFDEOHƶHUHVSRQVHVIRUVXFKFRUUHVSRQGHQFHDUHGXO\
communicated to the shareholders by the Company Secretary, wherever necessary and/or relevant.
C.2.7 Process of Responding to Shareholder Matters
As stated in C.2.5. 5
158

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Reference
C.3 MAJOR AND MATERIAL TRANSACTIONS

Disclosures to shareholders in terms of the Companies Act and Regulations issued under the Securities and
Exchange Commission of Sri Lanka Act.
C.3.1 & C.3.2 Disclosure of Major Transactions
ƶH%DQNţVSURFHGXUHRQ'HDOLQJZLWK5HODWHG3DUW\7UDQVDFWLRQVSURYLGHVIRUPDQGDWRU\SXEOLFGLVFORVXUHRI 5
DQ\PDMRU5HODWHG3DUW\7UDQVDFWLRQRUDVHULHVRIVXFKWUDQVDFWLRQVWKH%DQNLVDERXWWRHQJDJHLQRIZKLFK
WKHYDOXHLVJUHDWHUWKDQ2QHƶLUGRIWKHDVVHWVRIWKH%DQNUHTXLULQJWKHDSSURYDORIWKHVKDUHKROGHUVE\DQ
Ordinary Resolution therefore.
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the Bank too requires approval of the shareholders by virtue of a special resolution, when the due notice to the
public would be given through market announcements.
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DƩHFWHGWKH%DQNţVQHWDVVHWEDVHZDUUDQWLQJQHLWKHUVXFKGLVFORVXUHQRUVXFKDSSURYDOE\WKHVKDUHKROGHUV
D ACCOUNTABILITY AND AUDIT
D.1 ),1$1&,$/$1'%86,1(665(3257,1*7+($118$/5(3257
$EDODQFHGDQGDQXQGHUVWDQGDEOHDVVHVVPHQWRIWKH&RPSDQ\ţVƪQDQFLDOSRVLWLRQSHUIRUPDQFHEXVLQHVV
model, governance structure, risk management, internal controls and challenges, opportunities and
prospectus to be presented.
ƶH%DQNţVSRVLWLRQDQGSURVSHFWVKDYHEHHQGLVFXVVHGLQGHWDLOLQWKHIROORZLQJVHFWLRQVRIWKLV$QQXDO5HSRUW 5
y Chairman’s Message is given on pages 36 to 39.
y Managing Director’s Review is given on pages 40 to 43.
y Management Discussion and Analysis are given on pages 55 to 124.
(84) D.1.1 Board’s Responsibility in Financial Reporting
A true and fair, balanced and understandable Financial Statements prepared in accordance with the relevant 5
accounting standards, laws and regulations are given on pages 214 to 350 in this Annual Report.
D.1.2 Interim Reports, Price-Sensitive Public Reports, Regulatory Reports and Statutory Information Requirements
Interim reports were published within 45 days of each quarter end which included information to assist 5
VKDUHKROGHUVJDLQDQXQGHUVWDQGLQJRIWKHVWDWHRIDƩDLUVRIWKH%DQN
Price sensitive information has been regularly disclosed in a precise manner to the Colombo Stock Exchange
on a timely basis.
Key Market Disclosures made on Price Sensitive Information during the Year under Review.
y Appointment of a Company Secretary on 01st February 2019

y Payment of Cash and Scrip Dividend for the year 2018 on 15th February 2019.
y Announcement of the Rights Issues 2019 on 01st March 2019.
y Resignation of the Chairman on 29th March 2019
y Appointment of a Chairman on 02nd April 2019
y Appointment of a Deputy Chairperson on 15th May 2019
y 'HDOLQJVRIVKDUHVE\WKH'LUHFWRUVRQVW-XO\
y $SSRLQWPHQWRID1HZ'LUHFWRURQWK0D\WK-XQHDQGWK6HSWHPEHU
y Retirement of a Director on 02nd August 2019
Reports required by the regulators including Central Bank of Sri Lanka, Department of Inland Revenue, 5
5HJLVWUDURI&RPSDQLHVDQG&RORPER6WRFN([FKDQJHZHUHDOOƪOHGLQDWLPHO\PDQQHULQFRPSOLDQFHZLWKWKH
UHOHYDQWVWDWXWRU\UHTXLUHPHQWVDQGWKHVHSURYLGHGVXƬFLHQWLQIRUPDWLRQIRUWKHXVHUWRREWDLQDEDODQFHG
assessment of the Bank`s operations.
159
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Records in Compliance with the Appropriate Accounting Standards
0DQDJLQJ'LUHFWRUţVDQG*URXS&KLHI)LQDQFLDO2ƬFHUţV5HVSRQVLELOLW\6WDWHPHQWLVJLYHQRQSDJHRIWKLV 5
Annual Report.
D.1.4 'HFODUDWLRQLQ$QQXDO5HSRUWRIWKH%RDUGRI'LUHFWRUVRQWKH$ƩDLUVRIWKH&RPSDQ\
ƶH$QQXDO5HSRUWRIWKH%RDUGRI'LUHFWRUVRQWKH$ƩDLUVRIWKH&RPSDQ\RQSDJHVWRFRQWDLQVWKH 5
declarations as required by the Code.
D.1.5 Responsibilities of the Board for the Preparation and Presentation of Financial Statements and Statement
by the Auditors about their Reporting Responsibilities
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statement about their reporting responsibilities are provided on pages 209 and 210 and 211 to 213 respectively.
D.1.6 Inclusion of a Management Discussion & Analysis
ƶH0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLVFRQWDLQHGLQSDJHVWRFRYHUVWKHLQIRUPDWLRQVSHFLƪHGLQWKH 5
Code which include the following:
y Business model
y Industry structure and developments
y Opportunities and threats
y Risk Management
y Internal Control Systems and their adequacy
y Governance
y Social and environmental protection activities carried out by the Company
y Financial performance
y Material developments in Human Resources, Industrial Relations and prospects for the future.
D.1.7 Notify Shareholders in case Net Assets of the Bank Fall Below 50%
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GXO\QRWLƪHGWKHVKDUHKROGHUVLQOLQHZLWKDSSOLFDEOHODZV
D.1.8 Related Party Transactions
ƶHUHLVDQDSSURYHGGRFXPHQWHGSURFHVVSURYLGLQJIRULGHQWLI\LQJDQGGHDOLQJZLWK5HODWHG3DUW\ 5
Transactions, identifying related parties and such transactions and the mechanism to ensure that no
favourable treatment is granted to said parties in order to prevent the Bank from granting favourable
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RQ0DQDJLQJ&RQƫLFWVRI,QWHUHVWLVLQSODFH$QHƩHFWLYHDQGFRPSUHKHQVLYHV\VWHPRI,QWHUQDO&RQWUROIRU
identifying, recording and disclosing related party transactions too is in place. A record of these transactions is
maintained in the Secretariat Department of the Bank and is disclosed as required.
In addition, a procedure has been issued explaining the procedure to be followed in granting accommodation
to Directors or to close relations of Directors, or to concerns in which Directors may have substantial interest.
Directors and KMPs submit declarations declaring their transactions with the Bank and the Group on a
quarterly and annual basis.
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Transactions) are disclosed in Note 46 to the Financial Statements on pages 306 to 309.
D.2 RISK MANAGEMENT AND INTERNAL CONTROL
D.2.1 Board’s Responsibility to Monitor the Company’s Risk Management and Internal Control System
ƶH%RDUGRI'LUHFWRUVLVUHVSRQVLEOHIRUWKHDGHTXDF\DQGHƩHFWLYHQHVVRIWKHLQWHUQDOFRQWUROPHFKDQLVPLQ 5
SODFHDWWKH%DQN,QFRQVLGHULQJVXFKDGHTXDF\DQGHƩHFWLYHQHVVWKH%RDUGUHFRJQLVHVWKDWWKHEXVLQHVVRI
banking requires reward to be balanced with risk on a managed basis and as such the internal control systems
are primarily designed with a view to highlight any deviations from the limits and indicators which comprise the
risk appetite of the Bank.
160

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Reference
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ƶH%RDUG,QWHJUDWHG5LVN0DQDJHPHQW&RPPLWWHHLVUHVSRQVLEOHIRUDVVHVVLQJDOOULVNVLQFOXGLQJFUHGLW 5
market, liquidity, operational and strategic risks to the Bank on a regular basis through appropriate risk
indicators and management information. Board Integrated Risk Management Committee Report is given on
pages 190 and 191.
D.2.3 Need for an Internal Audit Function
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oversight over same.
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D.2.4 5HYLHZRIWKH3URFHVVDQG(ƩHFWLYHQHVVRI5LVN0DQDJHPHQWDQG,QWHUQDO&RQWUROE\WKH$XGLW&RPPLWWHH
ƶH%RDUGLVUHVSRQVLEOHIRUIRUPXODWLQJDQGLPSOHPHQWLQJDSSURSULDWHDQGDGHTXDWH,QWHUQDO&RQWURO 5
6\VWHPVƶH%RDUG$XGLW&RPPLWWHHKDVUHVSRQVLELOLW\WRWKH%RDUGWRHQVXUHWKDWWKHV\VWHPRI,QWHUQDO
&RQWUROVDUHVXƬFLHQWDQGHƩHFWLYH$6HSDUDWH5LVN&RPPLWWHHLVWKHUHWRPRQLWRUWKHRYHUDOOULVNRIWKH%DQN
D.2.5 ƶH6WDWHPHQWRI,QWHUQDO&RQWURO
Directors’ Statement on Internal Control over Financial Reporting is given on pages 205 and 206. 5
D.3 $8',7&200,77((WKH&RPPLWWHH
D.3 BOARD AUDIT COMMITTEE
Arrangements for Selection and Application of Accounting Policies, Financial Reporting and Internal Control
Principles
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ƶHSULQFLSDOUHVSRQVLELOLWLHVRIWKH%RDUG$XGLW&RPPLWWHHLQFOXGHRYHUVLJKWRYHU)LQDQFLDO5HSRUWLQJ,QWHUQDO
&RQWUROVDQGPRQLWRULQJ$XGLWRU,QGHSHQGHQFH,WVGXWLHVLQFOXGHJDLQLQJDVVXUDQFHRQFRQWURORYHUƪQDQFLDO
SURFHVVHVLQWHJULW\RIWKH%DQNţVƪQDQFLDOUHSRUWVPRQLWRULQJSHUIRUPDQFHREMHFWLYLW\DQGLQGHSHQGHQFHRI
WKH([WHUQDO$XGLWRUVDQGUHYLHZLQJZRUNRIWKH,QWHUQDO$XGLWIXQFWLRQƶH%RDUG$XGLW&RPPLWWHH5HSRUWLV
given on pages 185 to 187 in the Annual Report.
D.3.1 Composition of the Board Audit Committee
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,QGHSHQGHQW1RQ([HFXWLYH'LUHFWRUZKRKDVFXUUHQWDQGUHOHYDQWH[SHULHQFHLQƪQDQFLDOUHSRUWLQJDQG
FRQWURO0HPEHUVDUHVHOHFWHGWRSURYLGHDEURDGVHWRIƪQDQFLDOFRPPHUFLDODQGRWKHUUHOHYDQWH[SHULHQFHWR
PHHWWKH&RPPLWWHHţVREMHFWLYHVƶH0'*URXS&KLHI)LQDQFLDO2ƬFHU$VVLVWDQW*HQHUDO0DQDJHU,QWHUQDO
Audit, Chief Manager - Systems Audit and representatives of the External Auditors are invited to attend the
PHHWLQJVƶH%RDUG$XGLW&RPPLWWHHKDVDQH[WHUQDOFRQVXOWDQWWRDGYLFHWKH&RPPLWWHHZKRDWWHQGVWKH
meetings on invitation.
D.3.2 Terms of Reference
ƶH7HUPVRI5HIHUHQFHRIWKH%RDUG$XGLW&RPPLWWHHFRPSOLHVZLWKWKH&RGHRI%HVW3UDFWLFHRQ&RUSRUDWH 5
Governance issued by the ICASL. Terms of Reference also complies with the Banking Act Direction No. 11 of
2007 on Corporate Governance for Licensed Commercial Banks issued by CBSL and relevant Colombo Stock
([FKDQJH5HJXODWLRQVƶLVGRFXPHQWLVDYDLODEOHZLWKWKH&RPSDQ\6HFUHWDU\
A Board-approved Audit Committee Charter and a Group Internal Audit Activity Charter are in place.
Review of External Audit Function and Relationship with External Auditors
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WKHLQGHSHQGHQFHDQGREMHFWLYLW\RIWKH([WHUQDO$XGLWRUVDUHQRWLPSDLUHGƶH%RDUG$XGLW&RPPLWWHHKDV
responsibility for recommending to the Board, the appointment/re-appointment of the External Auditors and
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D.3.3 Disclosures

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the following disclosures:
y ƶHFRPSRVLWLRQRIWKH%RDUG$XGLW&RPPLWWHH
y A statement regarding the independence of the Internal Audit Function
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y ƶHQDPHVRIWKHPHPEHUVRIWKH%RDUG$XGLW&RPPLWWHH
y ƶHQXPEHURIPHHWLQJVKHOGDQGWKHPHPEHUVţDWWHQGDQFHSDJH
y ƶHVFRSHDQGKRZLWVUHVSRQVLELOLWLHVDUHGLVFKDUJHG
D.4 5(/$7('3$57<75$16$&7,2165(9,(:&200,77((WKH&RPPLWWHH
ƶH%RDUGKDV(VWDEOLVKHGWKH%RDUG5HODWHG3DUW\7UDQVDFWLRQV5HYLHZ&RPPLWWHHLQ&RPSOLDQFHZLWKWKH
Listing Rules issued by the Colombo Stock Exchange
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Banking Act Direction No. 11 of 2007 issued by CBSL.
D.4.2 Composition of the Board Related Party Transactions Review Committee
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four Independent, Non-Executive Directors.
Chairperson of the Committee too is an Independent Non-Executive Director, who was appointed by the Board.
D.4.3 'XWLHVRIWKH%RDUG5HODWHG3DUW\7UDQVDFWLRQV5HYLHZ&RPPLWWHHWKH&RPPLWWHH
ƶH%RDUGDSSURYHGZULWWHQ7HUPVRI5HIHUHQFHRIWKH&RPPLWWHHDUHPDLQO\EDVHGRQWKH&RGHDQGWKH 5
Listing Rules of the Colombo Stock Exchange and its role and responsibilities are given on page 192.
A Directive has been issued for Bank-wide implementation, disseminating instructions with regard to on the
GHƪQLWLRQRI5HODWHG3DUWLHVWKHSURFHGXUHIRUGHDOLQJZLWK5HODWHG3DUW\7UDQVDFWLRQVUHSRUWLQJDSSURYDO
disclosure and reviewing requirements and responsibilities for compliance.
All Key Management Personnel of the Bank and Directors submit a Disclosure/Declaration with regard to their
respective Related Party transactions with of the Bank as per LKAS 24 at the end of each quarter.
D.5 CODE OF BUSINESS CONDUCT AND ETHICS
D.5.1 &RGHRI%XVLQHVV&RQGXFWDQG(WKLFVIRU'LUHFWRUVDQG6WDƩ
Code of Conduct and Governance Requirements, for Directors, Code of Conduct for Key Management 5
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RI,QWHUHVWDQGWKH%RDUGDSSURYHG:KLVWOH%ORZLQJ3ROLF\DUHLQSODFHƶHVDLGGRFXPHQWVFRYHUEULEHU\
DQGFRUUXSWLRQHQWHUWDLQPHQWDQGJLIWVWUDQVSDUHQWSURFXUHPHQWSUDFWLFHVFRQƪGHQWLDOLW\IDLUGHDOLQJDQG
encouraging reporting of unethical/fraudulent practices and/or behaviour.
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A process is in place for the prompt disclosure of price sensitive and material information by the 5
Company Secretary in terms of the relevant regulatory requirements. As per the Board-approved Policy on
Communication, the responsibility of making market announcements of price sensitive information lies with
the Company Secretary.
D.5.3 Policy and Process for Monitoring and Disclosure of Share Purchase
ƶH'LUHFWRUVHQJDJHGLQƪQDQFLDOUHSRUWLQJKDYHEHHQGLUHFWHGWRLQIRUPDQGGLVFORVHWRWKH&RPSDQ\ 5
Secretary of any purchases by them of shares of the Bank within 05 market days in the Colombo Stock
Exchange (CSE) as per Section 7.8 (c) of the CSE Listing Rules. Further daily share transactions are monitored
by the Company Secretary.
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the CSE Listing Rules.
162

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D.6 CORPORATE GOVERNANCE DISCLOSURES
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Governance practices in the Bank which are in compliance with:
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of Sri Lanka
y ƶH%DQNLQJ$FW'LUHFWLRQ1RRIRQ&RUSRUDWH*RYHUQDQFHIRU/LFHQVHG&RPPHUFLDO%DQNV
issued by the CBSL
y Requirements of Section 7.6 of the Listing rules of the Colombo Stock Exchange
SECTION 2 - SHAREHOLDERS
E INSTITUTIONAL INVESTORS
E.1 SHAREHOLDER VOTING 5
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ƶH%DQNţV,QVWLWXWLRQDO,QYHVWRUVDVZHOODVRWKHU,QYHVWRUVKDYHWKURXJKRXWH[HUFLVHGWKHLUYRWHV
HQWKXVLDVWLFDOO\H[SUHVVLQJWKHLUFDQGLGSUHIHUHQFHVDQGDUHHQFRXUDJHGWRH[SUHVVWKHLUYLHZVIUHHO\ƶH%DQN
has a history of active shareholder involvement and participation at general meetings.
E.1.1 Regular Structured Dialogue with Shareholders
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privileges to shareholders. Accordingly, the Committee met 02 times during the year under review.
In addition, the Bank holds a Shareholder Forum annually, immediately after the conclusion of the Bank’s
Annual General Meeting which is also a much looked forward to and well attended event by the shareholders.
ƶH&KDLUPDQRIWKH%RDUG6KDUHKROGHU5HODWLRQV&RPPLWWHHFRQYH\VWRWKH%RDUGRI'LUHFWRUVWKHFRQFHUQV
and proposals brought forward by the shareholders at these forums as well as those submitted to the Board
Shareholder Relations Committee.
E.2 EVALUATION OF GOVERNANCE DISCLOSURES
E.2 Encourage Institutional Investors to give Due Weight to Relevant Governance Arrangements
Institutional investors are kept apprised of the Bank’s governance practices through the Annual Report and 5
any new initiatives are highlighted at general meetings to ensure that due weightage is given to good corporate
governance.
F OTHER INVESTORS
F.1 INVESTING/DIVESTING DECISION
F.1 Individual Shareholders are Encouraged to do their own Analysis or Seek Independent Advice
ƶH$QQXDO5HSRUWFRQWDLQVVXƬFLHQWLQIRUPDWLRQIRUSRWHQWLDOLQYHVWRUVWRFDUU\RXWWKHLURZQDQDO\VLVƶH 5
Annual Report is published in both English and Sinhala to facilitate extended communication with the retail
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Additionally, a separate part of the Bank’s website is dedicated to Investor Relations which provides relevant
information online to all investors.
Shareholders can contact the Company Secretary for further information if required. Apart from the above,
Circulars to Shareholders issued from time to time too point out to the shareholders the importance of seeking
independent advice prior to making any particular investment.
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Reference
F.2 SHAREHOLDER VOTING

F.2 Encourage Shareholders to Participate and Vote at the AGM
It is a tradition at the Bank to encourage retail investors to participate and vote at any General Meeting of 5
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through Stakeholder Feedback Forms and Shareholder Relation Forums.
G INTERNET OF THINGS AND CYBER SECURITY
G.1 Process to Identify How the External IT Devices could Connect to the Organisation’s Network
$XWKRULVHG2ƬFHUVSHUIRUPULVNDVVHVVPHQWVWRGHWHUPLQHZKHWKHULQIRUPDWLRQSURFHVVLQJV\VWHPVUHTXLUH 5
HTXLSPHQWLGHQWLƪFDWLRQHJDWWDFKLQJLGHQWLƪHUVWKDWLQGLFDWHZKLFKQHWZRUNVWKHGHYLFHLVDOORZHGWR
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All the devices connecting/attaching to the Bank’s infrastructure are authorised by Network Access Controller
(NAC). Any device which is not authorised by NAC will not be able to access the network. Only legitimate devices
are authorised by network administrators.
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authorised modems or any other remote access solutions are strictly prohibited unless written approval has
been obtained.
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Director, tasked with determining the Bank’s sensitivity and risk appetite towards information security threats at
any given time.
G.3 Allocation of Adequate Time on the Board Meeting Agenda for Discussion on Cyber Risk Management
Board IT Committee has been formed to review and recommend the IT strategic plan, policies, expenditure 5
and budgets and IT security requirements of the Bank.
Based on the requirement, adequate time is allocated during the Board Meetings to discuss "Cyber Risk"
in detail. In addition, focused training sessions on Cyber Security were conducted to educate all the Board
Members.
Information Security Committee (ISC), the management level cross functional committee, has been formed
and reporting to Board Integrated Risk Management Committee (BIRMC) on quarterly basis, to discuss on both
strategic and operational aspects of Information Security.
G.4 ,QGHSHQGHQW3HULRGLF5HYLHZRQWKH(ƩHFWLYHQHVVRIWKH&\EHU6HFXULW\5LVN0DQDJHPHQWDQGWKH6FRSH
and the Frequency of the Review
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internal audits and an annual audit conducted by an independent third-party.
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applications and branch/department audits to ensure Information Security and Controls.
Having obtained independent opinion from a reputed International Cyber Security Consultancy Firm to study
and make recommendations to improve Cyber Security preparedness, is a further step taken by the Bank in
minimising system vulnerabilities.
G.5 Disclosure of the Process to Identify and Manage Cyber Security Risks
ƶHUHTXLUHGGLVFORVXUHLVPDGHRQSDJHVWRLQWKLV$QQXDO5HSRUW 5
164
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H.1 ESG REPORTING
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Opportunities Pertaining to ESG are Recognised, Managed, Measured and Reported
Environmental and Social Risk Management System (ESMS) is aimed at reducing the Bank’s environmental 5
IRRWSULQWƶH&RUSRUDWH6XVWDLQDELOLW\'HSDUWPHQWLVWDVNHGZLWKFRQGXFWLQJHQYLURQPHQWDOLPSDFW
assessments to comply with ESMS in order to manage the environmental risks associated with the Bank’s
business. Further, with the motive of managing the environmental footprint, the Bank is of the view that
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Sustainability Framework is given on pages 46 to 49.
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managing the social, economical, environmental topics and their impacts, call for comprehensive analysis
UHSRUWVRYHUWKHUHVSHFWLYHƪHOGVIURPERWKH[WHUQDODQGLQWHUQDOUHVRXUFHSHUVRQVWREHLQOLQHZLWKWKH
adequate due diligence, as and when required.
H.1.2 Environment Factors
Natural Capital report is given on pages 92 to 97. 5
H.1.3 Social Factors
Social and Relationship Capital report is given on pages 82 to 91. 5
H.1.4 Governance
Corporate Governance Report is given on pages 138 to 184. 5
H.1.5 Board’s Role on ESG Factors
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the ESG related areas.
165
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CBSL Principle, Compliance and Implementation Complied

Section
RESPONSIBILITIES OF THE BOARD
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LD Setting Strategic Objectives and Corporate Values
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reinforced by the Corporate Management Team.
(2) LE Overall Business Strategy including Risk Policy and Management
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Strategic Plan for the period 2019-2021 approved by the Board has been successfully implemented with
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Board. In addition, Risk Management framework and mechanisms have also been approved by the Board
in line with the Strategic Plan. Measurable goals for the Bank as a whole have been set and performance is
measured in line with these goals on a monthly and quarterly basis.
LF Risk Management
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%DQNţV5LVN3ROLFLHVGHƪQLQJWKHULVNDSSHWLWHLGHQWLI\LQJSULQFLSDOULVNVVHWWLQJJRYHUQDQFHVWUXFWXUHVDQG
LPSOHPHQWLQJV\VWHPVWRPHDVXUHPRQLWRUDQGPDQDJHWKHSULQFLSDOULVNVƶHIROORZLQJUHSRUWVSURYLGH
further insights in this regard.
y Risk Management Report on pages 126 to 136.
y Board Integrated Risk Management Committee Report on pages 190 to 191.
A mechanism/process to identify and mitigate the risks arising out of new strategies is in place at Board level.
LG Communication with all Stakeholders
A Board-approved Communication Policy is in place providing for communication with all stakeholders, 5
including depositors, creditors, shareholders and borrowers.
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y Shareholders - ƶH%RDUGKDVDSSRLQWHGD6XE&RPPLWWHHRQ6KDUHKROGHU5HODWLRQVWDVNHGZLWK
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LQLWLDWHGLQIRUPLQJVXFKD&RPPLWWHHƶLV&RPPLWWHHFRQGXFWVDQDQQXDO6KDUHKROGHU5HODWLRQV)RUXP
to identify shareholder concerns. Additionally, the AGM is also a key forum to contact shareholders and the
Bank has a proud history of well attended AGMs where shareholders take an active role in exercising their
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into Tamil as well to facilitate extended communication with shareholders.
y Customers - Customers include depositors, creditors and borrowers. A Board-approved Customer

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has been printed in all three languages and disseminated to all customer contact points of the Bank.
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information on contact details of the Bank for this purpose and also of the Financial Ombudsman, a
24-hour trilingual customer hotline to support customer queries has been established and reports of
complaints are reviewed by the relevant Board Sub Committees.
y 6WDƩ6WDƩPHPEHUVDUHJLYHQDFFHVVWRWKHPDQDJHPHQWWRYRLFHWKHLUFRQFHUQVWKURXJKWKH:KLVWOH
Blowing Policy and the Grievance Handling Procedure.
166
GRI 102-25

Section
D LH Internal Control System
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management information systems. Accordingly, the Board Audit Committee reviews Internal Audit reports
submitted by the Internal Audit Department and monitors follow up action further based on the assessment
of Internal Control Over Financial Reporting (ICOFR). Directors concluded that the Bank’s Internal Control Over
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E LH Management Information Systems
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(6) LI Key Management Personnel
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)RUHLJQ([FKDQJH&RPSOLDQFH2ƬFHUDV.H\0DQDJHPHQW3HUVRQQHOEHLQJť2ƬFHUV3HUIRUPLQJ([HFXWLYH
Functions of Licensed Commercial Banks (LCB)” as required by CBSL Guideline dated 2nd December 2015,
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respectively. All appointments of designated Key Management Personnel (KMPs) are recommended by the
Board Nomination Committee and approved by the Board.
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$UHDVRIDXWKRULW\DQGNH\UHVSRQVLELOLWLHVKDYHEHHQGHƪQHGIRU'LUHFWRUVDQG.03VWKURXJK&RGHRI&RQGXFW 5
and Governance Requirement for Directors and the relevant Position Description of the KMPs respectively.
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KMPs make regular presentations to the Board on matters under their respective purviews and are regularly 5
called in by the Board to explain matters relating to their areas when need arises.
LL $VVHVVHV(ƩHFWLYHQHVVRIRZQ*RYHUQDQFH3UDFWLFHVLQFOXGLQJ6HOHFWLRQDQG1RPLQDWLRQRI'LUHFWRUVDQG
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Selection, nomination and election of Directors are made by the Board Nomination Committee based on their 5
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to the Board during the Board meeting. A Director who has a particular interest abstains from voting in such a
situation and he/she is not counted in the quorum. A similar process is being followed for KMPs.
In addition a Procedure has been issued with regard to dealing with Related Party Transactions and on lending
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Interest applies to the Board as well as to the employees of the Bank.
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are collated by the Company Secretary and submitted to the Board for review. Matters of concern are brought to
the attention of the Board by the Company Secretary.
LM Succession Plan for Key Management Personnel
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E\WKH%RDUGLQSULQFLSOHƶHVXFFHVVLRQSODQLVLPSOHPHQWHGEDVHGRQWKH%RDUGDSSURYHG3URFHGXUHIRU
same.
LN Regular Meetings with Key Management Personnel
KMPs are called on need basis for discussions at the meetings of the Board and its Sub Committees to review 5
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at the Board Meetings and the KMPs are regularly involved in Board level discussions on the same.
167
CORPORATE
GOVERNANCE

Section
LO 5HJXODWRU\(QYLURQPHQWDQG0DLQWDLQLQJDQ(ƩHFWLYH5HODWLRQVKLSZLWK5HJXODWRU
Directors are briefed about developments in the regulatory environment at Board Meetings to ensure that their 5
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Summary report is tabled quarterly to the Board which includes CBSL returns. 5
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LP Hiring External Auditors
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Oversight of the External Auditors is carried out by the Board Audit Committee (BAC) and the Board is briefed of
any concerns in this regard if a necessity arises. To ensure greater independence of the Board Audit Committee
the independent consultant appointed to the BAC continues to provide her advice and services to this
Committee.
LL Appointment of Chairman and CEO/MD and their Functions and Responsibilities
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respective functions and responsibilities, maintaining the balance of power between the two roles.
(15) LLL Board Meetings
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WLPHVGXULQJƶH%DQNKDVPLQLPLVHGREWDLQLQJDSSURYDOYLDFLUFXODUUHVROXWLRQVDQGLWLVGRQHRQO\RQ
DQH[FHSWLRQDOEDVLVDQGVXFKUHVROXWLRQVDUHUDWLƪHGE\WKH%RDUGDWWKHVXEVHTXHQWPHHWLQJ
(16) LY Arrangements for Directors to include Proposals in the Agenda
A Board-approved procedure is in place to enable all Directors to include matters and proposals in the agenda. 5
Monthly meetings are scheduled and informed to the Board at the beginning of each calendar year to enable 5
submission of proposals in the agenda for regular meetings where such matters and proposals relate to the
promotion of business and the management of risk of the Bank.
Y Notice of Meetings
Notice of Meetings and the agenda for the Board Meetings are circulated among the Directors generally seven 5
days prior to the meeting, giving Directors adequate time to attend and submit any urgent proposals.
Additionally, Notices, Agenda and all related Board papers are uploaded through a secure link onto iPads for 5
Directors to access.
(18) YL Directors’ Attendance
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Corporate Governance for Licensed Commercial Banks. Details of the Directors’ attendance is set out on page
141.
All Directors have attended at least two-thirds of the total number of Board meetings during the year under review. 5
YLL Company Secretary
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Secretary’s primary responsibilities are to handle the secretarial services to the Board and Shareholders and
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168
GRI 102-25

Section
YLLL Directors’ Access to Advice and Services of Company Secretary
All members of the Board have the opportunity to obtain the advice and services of the Company Secretary who 5
is an Attorney-at-Law and who is responsible to the Board for follow up of Board Procedures, Compliance with
relevant Rules and Regulations, Directions and Statutes and keeping and maintaining Minutes and relevant
records of the Bank.
A Board-approved procedure to provide for this is in place.
L[ Maintenance of Board Minutes
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Board Members. Additionally, the Directors have access to the past Board papers and Minutes through the
secure electronic link via iPads.
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y A summary of data and information used by the Board in its deliberations
y ƶHPDWWHUVFRQVLGHUHGE\WKH%RDUG0HPEHUV
y ƶHIDFWƪQGLQJGLVFXVVLRQVDQGWKHLVVXHVRIFRQWHQWLRQRUGLVVHQW
y ƶHWHVWLPRQLHVDQGFRQƪUPDWLRQVRIUHOHYDQWH[HFXWLYHVZKLFKLQGLFDWHVFRPSOLDQFHZLWKWKH%RDUGţV
strategies and policies and adherence to relevant laws and regulations
y Matters regarding the risks to which the Bank is exposed and an overview of the risk management
measures adopted including reports of the Board Integrated Risk Management Committee
y ƶHGHFLVLRQVDQG%RDUGUHVROXWLRQVLQFOXGLQJUHSRUWVRIDOO%RDUG6XE&RPPLWWHHV
[L Directors’ Ability to Seek Independent Professional Advice
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DQGWKH%RDUGUHVRUWVWRVXFKDGYLFHZKHQGHHPHGQHFHVVDU\ƶH&RPSDQ\6HFUHWDU\SURYLGHGDGYLFHWRWKH
Board.
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knowledge with the Board on various matters relevant to them. In addition, Directors are able to obtain
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are coordinated by the Company Secretary. During the year under review, the Board sought independent
professional advice on several matters including on Industrial Relations.
[LL 'HDOLQJZLWK&RQƫLFWVRI,QWHUHVW
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DQGWKH%DQNLQJ$FW'LUHFWLRQ1RRIƶH%DQNPDLQWDLQVUHJLVWHUVRI'LUHFWRUVţDQG.03Vţ,QWHUHVWV
which are regularly updated which includes interests of the spouses, dependent children under 18 years of age
and their business concerns. Directors abstain from participating in the discussions, voicing their opinion or
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quorum in such instances.
[LLL Formal Schedule of Matters Reserved for Board’s Decision
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and control of the Bank is within its authority in line with regulatory codes, guidelines and international best
practices.
169
CORPORATE
GOVERNANCE

Section
(26) [LY Inform Central Bank if there are Solvency Issues Prior to Taking any Decision or Action
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if the Bank is about to become insolvent or about to suspend payments to its depositors and other creditors. If
such a situation arises, the Bank will duly inform the Director of Bank Supervision and such a situation did not
arise during the year 2019.
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with the responsibility of informing the Director of Bank Supervision and making necessary public and other
disclosures upon the occurrence of such an event.
[Y Compliance with Capital Adequacy
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TXDUWHUO\EDVLVƶH%DQNKDVGHƪQHGULVNDSSHWLWHDQGLQGXVWU\EHQFKPDUNV$VDWVW'HFHPEHUWKH
Bank was in compliance with the minimum capital requirements.
[YL Publish Corporate Governance Report in Annual Report
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pages 138 to 184.
(29) [YLL Self-Assessment of Directors
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ZKLFKDUHPDLQWDLQHGZLWKWKH&RPSDQ\6HFUHWDU\ƶHDVVHVVPHQWVDUHFRPSLOHGE\WKH&RPSDQ\6HFUHWDU\
and submitted to the Board of Directors for discussion.
BOARD COMPOSITION
L Number of Directors
As per CBSL Direction on Corporate Governance for Licensed Commercial Banks, the number of Directors should 5
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LL Period of Service of a Director
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birthday, whichever is earlier as per the Banking Act Direction No. 11 of 2007 on Corporate Governance.
Mr Deepal Sooriyaarachchi, whose tenure of service has exceeded nine years on the Board, retired w.e.f.
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Directors who reached seventy years of age during the year under review. Details of their respective tenure of
service are given on pages 20 to 25.
LLL Board Balance
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prescribed ratio of Executive Directors to Non-Executive Directors being one-third of the total.
LY Independent Non-Executive Directors
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requirement.
Y Alternate Directors
Alternate Directors are appointed based on the Board-approved policy. However, there were no alternate 5
Directors appointed during the year 2019.
(35) YL Criteria for Non-Executive Directors
Non-Executive Directors are persons with credible track record who have necessary skills and experience to 5
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Non-Executive Directors are detailed on pages 20 to 25.
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as well.
170

Section
YLL Quorum for the Board Meeting is more than 50% of Directors and more than half the Quorum to Comprise
Non-Executive Directors
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2019 evidencing compliance with the requirement.
YLLL Identify Independent Non-Executive Directors in Communications and Disclose the Categories of Directors in
Annual Report
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the names of the Chairman, Executive Directors, Non- Executive Directors and Independent Non-Executive
Directors are given on page 141 of the Corporate Governance Report.
(38) L[ Appointments to the Board
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Code of Best Practice on Corporate Governance 2017 and the Banking Act Direction No. 11 of 2007 on
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new Directors including the Executive Directors are appointed by the Board upon consideration of
recommendations by the Board Nomination Committee.
[ Election of Directors Filling Casual Vacancies
In accordance with the provisions in the Articles of Association and the CBSL Direction, Directors appointed to 5
the Board after the last AGM will stand for election by the shareholders at the very next AGM.
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30.05.2019, 01.06.2019 and 26.09.2019 respectively will stand for election by shareholders at the AGM to be
held on 30th March 2020.
[L Communication of Reasons for Removal or Resignation of Director
Resignations of Directors and the reasons for same are informed to the regulatory authorities and shareholders 5
as per CSE requirements and the requirements of the Companies Act No. 07 of 2007 together with a statement
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During the year under review, Mr Channa Palansuriya tendered his resignation w.e.f. 01.04.2019.
[LL Prohibition of Directors or Employees of a Bank becoming a Director at another Bank
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elected/nominated as a Director of another bank.
CRITERIA TO ASSESS FITNESS AND PROPRIETY OF DIRECTORS
L Age of Director should not Exceed 70 years
None of the Directors reached the age of seventy years during the year under review. 5
LL Directors should not hold Directorships of more than 20 Companies
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LLL Director or a CEO shall not be Appointed as a Director or a CEO of another Licensed Bank Operating in
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Licensed Bank.
None of the Directors were appointed to the Board during the period under review, as detailed in the provisions 5
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171
CORPORATE
GOVERNANCE

Section
MANAGEMENT FUNCTIONS DELEGATED BY THE BOARD
L All Directors to Understand and Study Delegation Arrangements
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LL Extent of Delegation should not Hinder Board’s Ability to Discharge its Functions
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behalf of the Board under the authorities delegated to them, report to the Board regularly on matters attended
to by them.
LLL Review Delegation Arrangements Periodically to Ensure Relevance to Operations of the Bank
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THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER/MANAGING DIRECTOR
L Separation of Roles
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approved by the Board.
(49) LL Non-Executive Chairman and Appointment of a Senior Independent Director
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Senior Independent Director with appropriate Terms of Reference not only to ensure the independent element
in decision making, but also to obtain his expertise and knowledge in various industries in Board decision
making.
LLL Disclosure RIWKH,GHQWLW\RIWKH&KDLUPDQDQG&(20'DQGDQ\5HODWLRQVKLSVLIDQ\DPRQJWKH%RDUG
Members
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many references to these roles throughout.
ƶHUHLVQRPDWHULDOƪQDQFLDOEXVLQHVVRUIDPLO\UHODWLRQVKLSVEHWZHHQWKH&KDLUPDQ&(20'DQGRWKHU 5
members of the Board as disclosed on pages 20 to 25 and in Note 46 to the Financial Statements given on
pages 306 to 309 as per annual declarations and the register of Directors’ Interests which is updated regularly.
LY &KDLUPDQWRD3URYLGH/HDGHUVKLSWRWKH%RDUGE(QVXUHWKDWWKH%RDUG:RUNV(ƩHFWLYHO\DQG'LVFKDUJHV
LWV5HVSRQVLELOLWLHVF(QVXUHWKDWDOO.H\DQG$SSURSULDWH,VVXHVDUH'LVFXVVHGE\WKH%RDUGLQD7LPHO\
Manner
ƶH%RDUGDSSURYHGWKHNH\UHVSRQVLELOLWLHVRIWKH&KDLUPDQDQGWKLVGRFXPHQWLQFOXGHVWKHPDWWHUVLGHQWLƪHG 5
LQUHOHYDQWJXLGHOLQHVDQGFRGHVƶHVHOIHYDOXDWLRQSURFHVVHYLGHQFHVWKDWWKH&KDLUPDQSURYLGHVOHDGHUVKLS
WRWKH%RDUGWKH%RDUGZRUNVHƩHFWLYHO\DQGGLVFKDUJHVLWVUHVSRQVLELOLWLHVDQGDOONH\DQGDSSURSULDWHLVVXHV
are discussed by the Board in a timely manner.
Y Chairman's Responsibility for Agenda
ƶH&RPSDQ\6HFUHWDU\GUDZVXSWKHDJHQGDIRUWKHPHHWLQJVLQFRQVXOWDWLRQZLWKWKH&KDLUPDQ 5
YL Ensure that Directors are Properly Briefed and Provided with Adequate Information
ƶH&KDLUPDQHQVXUHVWKDWWKH%RDUGLVDGHTXDWHO\EULHIHGDQGLQIRUPHGUHJDUGLQJWKHPDWWHUVDULVLQJDW 5
%RDUGPHHWLQJVƶHIROORZLQJSURFHGXUHVDUHLQSODFHWRHQVXUHWKLV
y Agenda and Board papers are circulated 7 days prior to Board Meetings, generally.
y 5HOHYDQWPHPEHUVRIWKH0DQDJHPHQWWHDPDUHDYDLODEOHIRUH[SODQDWLRQVDQGFODULƪFDWLRQVLIUHTXLUHG
y Management information is provided in agreed formats on a regular basis to enable Directors to assess
the performance and stability of the Bank.
172

Section
YLL Encourage Active Participation by all Directors and Lead in Acting in the Interests of the Bank
ƶH%RDUGHQFRXUDJHVDOO'LUHFWRUVWRPDNHDIXOODQGDFWLYHFRQWULEXWLRQƶLVLVHYLGHQWIURPWKHUHVSRQVHVLQ 5
the self-evaluation forms submitted by each Director at the year end.
YLLL Encourage Participation of Non-Executive Directors and Relationships between Non-Executive and Executive
Directors
11 out of the 12 members of the Board are Non-Executive Directors, creating a conducive environment for 5
active participation by the Non-Executive Directors. All Non-Executive Directors participate in Sub Committees
RIWKH%RDUGHQVXULQJIXUWKHURSSRUWXQLW\IRUDFWLYHSDUWLFLSDWLRQƶH%DQNKDVDOVRDSSRLQWHGD6HQLRU
Independent Director which further supports the participation and strengthens views of the Non-Executive
'LUHFWRUVƶH([HFXWLYHDQG1RQ([HFXWLYH'LUHFWRUVDFWLYHO\SDUWLFLSDWHDW%RDUG0HHWLQJV
L[ Refrain from Direct Supervision of Key Management Personnel and Executive Duties
ƶH&KDLUPDQGRHVQRWJHWLQYROYHGLQWKHVXSHUYLVLRQRI.03VRUDQ\RWKHUH[HFXWLYHGXWLHV 5
(57) [ (QVXUH(ƩHFWLYH&RPPXQLFDWLRQZLWK6KDUHKROGHUV
ƶH%DQNKLVWRULFDOO\KDVDFWLYHVKDUHKROGHUSDUWLFLSDWLRQDWLWV*HQHUDO0HHWLQJVDQGDWWKH6KDUHKROGHU 5
Relations Forum which is held immediately following the AGM where shareholder issues are discussed. A Board
6XE&RPPLWWHHKDVEHHQDSSRLQWHGWRHQVXUHWKDWWKHUHLVHƩHFWLYHFRPPXQLFDWLRQZLWKVKDUHKROGHUV
[L CEO/MD Functions as the Apex Executive in Charge of the Day-to-Day Operations
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%2$5'Ⱦ$332,17('&200,77((6ʁ7+(&200,77((ʄ
L Establishing Board Sub Committees, their Functions and Reporting
12 Board Sub Committees have been established by the Board with oversight by the respective Chairpersons 5
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DQGPDLQWDLQV0LQXWHVDQGUHFRUGVƶHUHSRUWVRIWKHIROORZLQJ0DQGDWRU\6XE&RPPLWWHHVDUHLQFOXGHGLQ
the Annual Report:
y Board Audit Committee on pages 185 to 187
y Board Human Resources & Remuneration Committee on page 188
y Board Nomination Committee on page 189
y Board Integrated Risk Management Committee on pages 190 to 191
y Board Related Party Transactions Review Committee on page 192
ƶH&KDLUSHUVRQVRIWKH6XE&RPPLWWHHVDUHSUHVHQWDWWKH$*0WRFODULI\DQ\PDWWHUVWKDWPD\EHUHIHUUHGWR
them by the Chairman.
LL %RDUG$XGLW&RPPLWWHH%$&
LLD &KDLUPDQWREHDQ,QGHSHQGHQW1RQ([HFXWLYH'LUHFWRUZLWK4XDOLƪFDWLRQVDQG([SHULHQFHLQ$FFRXQWDQF\
and/or Audit
ƶH&KDLUPDQRIWKH%RDUG$XGLW&RPPLWWHHLVDQ,QGHSHQGHQW1RQ([HFXWLYH'LUHFWRUZKRLVD)HOORZ 5
PHPEHURIWKH&KDUWHUHG,QVWLWXWHRI0DQDJHPHQW$FFRXQWDQWV8.
LLE Committee to Comprise Solely of Non-Executive Directors
ƶH%RDUG$XGLW&RPPLWWHHFRPSULVHVIRXUPHPEHUVDOORIZKRPDUH1RQ([HFXWLYH,QGHSHQGHQW'LUHFWRUV 5
173
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GOVERNANCE

Section
(62) LLF Functions of the Board Audit Committee
In accordance with the Terms of Reference, the Board Audit Committee has made the following 5
recommendations on matters in connection with:
y ƶHDSSRLQWPHQWRIWKH([WHUQDO$XGLWRUIRUDXGLWVHUYLFHVWREHSURYLGHGLQFRPSOLDQFHZLWKWKHUHOHYDQW
statutes;
y ƶHLPSOHPHQWDWLRQRIWKH&HQWUDO%DQNJXLGHOLQHVLVVXHGWR$XGLWRUVIURPWLPHWRWLPH
y ƶHDSSOLFDWLRQRIWKHUHOHYDQWDFFRXQWLQJVWDQGDUGVLQFOXGLQJ6/)56DQG6/)56DQG
y ƶHVHUYLFHSHULRGDXGLWIHHDQGDQ\UHVLJQDWLRQRUGLVPLVVDORIWKH$XGLWRUV
ƶH%RDUG$XGLW&RPPLWWHHHQVXUHVWKDWWKHVHUYLFHSHULRGRIWKHHQJDJHPHQWRIWKH([WHUQDO$XGLWSDUWQHU
VKDOOQRWH[FHHGƪYH\HDUVDQGWKDWWKHSDUWLFXODU$XGLWSDUWQHULVQRWUHHQJDJHGIRUWKHDXGLWEHIRUHWKHH[SLU\
of three years from the date of the completion of the previous term.
LLG 5HYLHZDQG0RQLWRU([WHUQDO$XGLWRUVţ,QGHSHQGHQFHDQG2EMHFWLYLW\DQGWKH(ƩHFWLYHQHVVRIWKH$XGLW
Processes
ƶH%RDUG$XGLW&RPPLWWHHREWDLQVUHSUHVHQWDWLRQVIURPWKH([WHUQDO$XGLWRUVRQWKHLULQGHSHQGHQFHDQGWKDW 5
the audit is carried out in accordance with the applicable standards and best practices.
(64) LLH Provision of Non-Audit Services by External Auditors
A Board-approved policy is in place approved by the Board in this regard. When such services are intended to be 5
obtained from External Auditors, prior approval is obtained from the Board Audit Committee in accordance with
regulations.
LLI Determines Scope of Audit with the External Auditors
ƶH%RDUG$XGLW&RPPLWWHHGLVFXVVHGDQGƪQDOLVHGZLWKWKH([WHUQDO$XGLWRUVWKHQDWXUHDQGVFRSHRIWKH 5
audit to ensure that it includes:
y An assessment of the Bank’s compliance with the relevant Directions in relation to Corporate Governance
and Internal Controls Over Financial Reporting;
y ƶHSUHSDUDWLRQRIƪQDQFLDOVWDWHPHQWVIRUH[WHUQDOSXUSRVHVLQDFFRUGDQFHZLWKUHOHYDQWDFFRXQWLQJ
principles and reporting obligations;

As all audits within the group are carried out by the same External Auditor, there was no requirement to discuss
arrangements for coordinating activities with other auditors.
LLJ Review Financial Information of the Bank
ƶH%RDUG$XGLW&RPPLWWHHUHYLHZVWKHƪQDQFLDOLQIRUPDWLRQRIWKH%DQNLQRUGHUWRPRQLWRUWKHLQWHJULW\ 5
of its Financial Statements, Annual Report, Accounts and Quarterly Reports prepared for disclosure, and the
VLJQLƪFDQWƪQDQFLDOUHSRUWLQJMXGJPHQWVFRQWDLQHGWKHUHLQƶHUHYLHZIRFXVHVRQWKHIROORZLQJ
y 0DMRUMXGJHPHQWDODUHDV
y Any changes in accounting policies and practices
y 6LJQLƪFDQWDGMXVWPHQWVDULVLQJIURPWKHDXGLW
y ƶHJRLQJFRQFHUQDVVXPSWLRQ
y ƶHFRPSOLDQFHZLWKUHOHYDQWDFFRXQWLQJVWDQGDUGVDQGRWKHUOHJDOUHTXLUHPHQWV
ƶH%RDUG$XGLW&RPPLWWHHPDNHVUHFRPPHQGDWLRQVWRWKH%RDUGRQWKHDERYHRQDTXDUWHUO\EDVLV
(67) LLK Discussions with External Auditor without the Executive Management on Interim and Final Audits
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ƪQDODXGLWVZLWKWKH([WHUQDO$XGLWRUVƶLV&RPPLWWHHPHWWKH([WHUQDO$XGLWRUVLQWKHDEVHQFHRIH[HFXWLYH
management of the Bank on 02 occasions during the year 2019.
LLL Review of Management Letter and Bank’s Response
ƶH%RDUG$XGLW&RPPLWWHHKDVUHYLHZHGWKH([WHUQDO$XGLWRUVţ0DQDJHPHQW/HWWHUDQGWKH0DQDJHPHQWţV 5
responses thereto.
174

Section
(69) LLM Review of Internal Audit Function
ƶH%RDUG$XGLW&RPPLWWHHKDVRYHUVLJKWRIWKH,QWHUQDO$XGLWIXQFWLRQDQGKDVWKHIROORZLQJUHVSRQVLELOLWLHV 5
with regard to the same:
y Review of the adequacy of the scope, functions and resources of the Internal Audit Department, and
ensures that the Department has the necessary authority to carry out its work;
y Reviewing the Internal Audit programme and results of the audits and ensures that appropriate actions are
taken on the recommendations of the Internal Audit Department;

y 5HYLHZLQJDSSUDLVDOVRIWKHSHUIRUPDQFHRIWKH+HDGDQGVHQLRUVWDƩPHPEHUVRIWKH,QWHUQDO$XGLW
Department;
y 5HFRPPHQGLQJDQ\DSSRLQWPHQWRUWHUPLQDWLRQRIWKH+HDGDQGVHQLRUVWDƩPHPEHUVRIWKH,QWHUQDO
Audit Department;
y (QVXULQJWKDWWKH%RDUG$XGLW&RPPLWWHHLVDSSULVHGRIUHVLJQDWLRQVRIVHQLRUVWDƩPHPEHUVRIWKH
Internal Audit Department including the Assistant General Manager - Internal Audit, and provides an
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y Ensuring that the Internal Audit function is independent of other activities it audits and that it is performed
ZLWKLPSDUWLDOLW\SURƪFLHQF\DQGGXHSURIHVVLRQDOFDUH
(70) LLN Internal Investigations
ƶH%RDUG$XGLW&RPPLWWHHKDVUHYLHZHGWKHPDMRUƪQGLQJVRILQWHUQDOLQYHVWLJDWLRQVGXULQJWKH\HDUDQG 5
management’s responses thereto. It has also ensured that the recommendations of such investigations are
implemented.
(71) LLO Attendees at Meetings of the Board Audit Committee
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Manager - Internal Audit, Chief Manager - Systems Audit and representatives of the External Auditors usually
attend meetings. Other Board members may also attend meetings upon the invitation of the Board Audit
&RPPLWWHHƶH%RDUG$XGLW&RPPLWWHHPHWWKH([WHUQDO$XGLWRUVZLWKRXWWKH([HFXWLYH'LUHFWRUVEHLQJ
present in terms of the Corporate Governance Code.
LLP Explicit Authority, Resources and Access to Information
ƶH%RDUG$XGLW&RPPLWWHHKDV 5
y explicit authority to investigate into any matter within its terms of reference;
y the resources which it needs to do so;
y full access to information; and
y authority to obtain external professional advice and to invite outsiders with relevant experience to attend,
if necessary.
LLQ Regular Meetings
ƶH%RDUG$XGLW&RPPLWWHHKDVVFKHGXOHGUHJXODUTXDUWHUO\PHHWLQJV$GGLWLRQDOPHHWLQJVDUHVFKHGXOHG 5
ZKHQUHTXLUHG$FFRUGLQJO\WKH%RDUG$XGLW&RPPLWWHHPHWWLPHVGXULQJWKH\HDUƶLVH[FOXGHVWKH
meetings of the Board Audit Committee with the External Auditors and the meetings of the Committee with the
Internal Auditors. Members of the Board Audit Committee are served with due notice of issues to be discussed
and the conclusions in discharging its duties and responsibilities are recorded in the Minutes of the meetings
maintained by the Company Secretary.
(74) LLR Disclosures
ƶH5HSRUWRIWKH%RDUG$XGLW&RPPLWWHHLVJLYHQRQSDJHVWRƶHUHSRUWLQFOXGHVWKHIROORZLQJ 5
y Details of the activities of the Board Audit Committee
y ƶHQXPEHURI%RDUG$XGLW&RPPLWWHHPHHWLQJVKHOGLQWKH\HDU
Details of attendance of each individual Director at such meetings is given on page 141.
175
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Section
(75) LLS Maintain Minutes of Meetings
ƶH&RPSDQ\6HFUHWDU\RUKLVKHUQRPLQHHDQGLQWKHDEVHQFHRIWKH&RPSDQ\6HFUHWDU\RUKLVKHUQRPLQHH 5
the Assistant General Manager - Internal Audit or his/her nominee serves as the Secretary to the Board Audit
Committee and maintains minutes of the Board Audit Committee meetings.
(76) LLT Whistle Blowing Policy and Relationship with External Auditor
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FRQƪGHQFHUDLVHFRQFHUQVDERXWSRVVLEOHLPSURSULHWLHVLQƪQDQFLDOUHSRUWLQJLQWHUQDOFRQWURORURWKHUPDWWHUV
ƶH&RPSDQ\6HFUHWDU\IRUZDUGVDOOFRPPXQLFDWLRQVUHFHLYHGLQKLVKHURƬFHLQWKLVUHJDUGLQFOXGLQJ
anonymous communications, to the Chairman of the Board Audit Committee who addresses the issue in an
DSSURSULDWHPDQQHUƶLV3ROLF\LVDQQXDOO\UHYLHZHGE\WKH%RDUG$XGLW&RPPLWWHHDQGDSSURYHGE\WKH%RDUG
ƶH%RDUG$XGLW&RPPLWWHHLVWKHNH\UHSUHVHQWDWLYHERG\IRURYHUVHHLQJWKH%DQNţVUHODWLRQVZLWKWKH([WHUQDO 5
Auditors and meets the External Auditors on a regular basis to discharge this function.
LLL %RDUG+XPDQ5HVRXUFHVDQG5HPXQHUDWLRQ&RPPLWWHH%+5 5&
D LLLD Policy to Determine the Remuneration of Directors
A Board-approved Policy to determine the Directors’ remuneration is in place. 5
E LLLD Policy to Determine the Remuneration for CEO/MD and KMPs
$%RDUGDSSURYHG3ROLF\RQ5HZDUG0DQDJHPHQWIRU.03VLVLQSODFHƶHWHUPť5HZDUG0DQDJHPHQWŦ 5
LQFOXGHVVDODULHVDQGRWKHUVWDƩEHQHƪWVRƩHUHGE\WKH%DQNDQGWKH&(2LVFRQVLGHUHGD.03
(78) LLLE *RDOVDQG7DUJHWVIRUWKH'LUHFWRUV0'WKH&(2DQG.03V
*RDOVDQGWDUJHWVIRUWKH&(20'DQGWKH.03VIRUWKH\HDUDUHGRFXPHQWHGXQGHUWKH2EMHFWLYH6HWWLQJ 5
IRUWKH\HDUDSSURYHGE\WKH&RPPLWWHHƶH'XWLHVDQGUHVSRQVLELOLWLHVRIWKH1RQ([HFXWLYH'LUHFWRUVDUH
contained in the Bank’s Code of Conduct and the Governance Requirements for Directors and the Terms of
Reference of each Board Sub Committee approved by the Board of Directors.
LLLF Evaluation of the Performance of the CEO/MD and KMPs against the Set Targets and Goals and Determine
the Basis for Revising Remuneration
Performance evaluations of the CEO/MD and KMPs for the year ended 31st December 2019 will be reviewed by 5
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year 2019.
LLLG MD is not Present at Meetings when Matters Relating to the MD are Being Discussed
Terms of Reference of the Committee provides that the CEO/MD should not be a member of the Committee. 5
CEO/MD attends meetings of the Committee on invitation and when matters relating to him are discussed, he
is not present. CEO/MD was not present when matters relating to him were discussed during the year.
LY %RDUG1RPLQDWLRQ&RPPLWWHH%1&
D LYD Implement a Procedure to Appoint Directors
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(81b) LYD Implement a Procedure to Appoint CEO and Key Management Personnel
A Board-approved policy to select, nominate and appoint CEO/MD and KMPs is in place, which is being 5
followed.
(82) LYE Recommend the Re-election of Directors
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terms of Article 87 of the Bank’s Articles of Association taking into account, inter-alia, the performance and
contribution made by the Director concerned towards the overall discharge of the Board’s responsibilities and
the Term of service each Director has provided to the Bank since his/her appointment/re-election.
176
GRI 102-30

Section
LYF Eligibility Criteria for Appointments to Key Managerial Positions Including the CEO
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DSSRLQWPHQWRUSURPRWLRQWRNH\PDQDJHULDOSRVLWLRQVDVZHOODVWKHSRVLWLRQRI&(20'ƶH%1&FRQVLGHUV
the applicable statutes and guidelines in setting the relevant criteria.
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(84) LYG Fit and Proper Criteria for Directors, CEO and KMPs
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&%6/WRREWDLQFRQFXUUHQFHRI&%6/WKDWWKH\DUHƪWDQGSURSHUSHUVRQVWRKROGRƬFHDVVSHFLƪHGLQWKH
criteria given in Banking Act Direction No. 11 of 2007 and as set out in the statutes.
LYH Succession Plan for Retiring Directors, CEO/MD and KMPs
Board-approved policy covering Succession Planning for retiring Directors and CEO/MD is in place. In addition, 5
a procedure is in place for the Succession Planning of KMPs.
(86) LYI Committee Chairperson and Other Members
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Independent Non-Executive Directors whilst the other member is a Non-Independent Non-Executive Director.
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Y %RDUG,QWHJUDWHG5LVN0DQDJHPHQW&RPPLWWHH%,50&
YD Composition of BIRMC
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framework of authority and responsibility assigned to the BIRMC.
YE Risk Assessment of the Bank, Subsidiary Companies and Associate Companies
Credit Risk, Market Risk, Liquidity Risk, Compliance Risk and Operational Risk are assessed and the reports are 5
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UHSRUWVDUHVXEPLWWHGE\WKH5LVN0DQDJHPHQW8QLWWRWKH%,50&
ƶH%RDUGKDVDSSURYHGRQUHFRPPHQGDWLRQRI%,50&WKHSROLFLHVRQ&UHGLW5LVN0DQDJHPHQW0DUNHW5LVN
Management and Operational Risk Management which provide a framework for management and assessment
of risks. Accordingly, quarterly information on pre-established risk indicators are reviewed by the BIRMC.
ƶH%,50&KDVDSURFHVVWRDVVHVVDQGHYDOXDWHDOOULVNVRIWKH%DQNDQGWKHƪQGLQJVDQGLVVXHVDUHVXEPLWWHG
to the Board’s review and action, if any. BIRMC evaluates the risk management of Subsidiary companies both at
the Bank level and Group level.
YF 5HYLHZWKH$GHTXDF\DQG(ƩHFWLYHQHVVRI0DQDJHPHQW/HYHO&RPPLWWHHV
%,50&UHYLHZVWKHDGHTXDF\DQGWKHHƩHFWLYHQHVVRIDOOPDQDJHPHQWOHYHOFRPPLWWHHVLQFOXGLQJWKH&UHGLW 5
3ROLF\5LVNDQG3RUWIROLR5HYLHZ&RPPLWWHHDQGWKH$/&2WRDGGUHVVVSHFLƪFULVNVDQGWRPDQDJHWKRVHULVNV
ZLWKLQWKHODLGGRZQOLPLWVVSHFLƪHGE\WKH%,50&DVUHTXLUHGE\WKH'LUHFWLRQ
(90) YG &RUUHFWLYH$FWLRQWR0LWLJDWH6SHFLƪF5LVNV([FHHGLQJ3UXGHQWLDO/HYHOV
%,50&WDNHVSURPSWFRUUHFWLYHDFWLRQWRPLWLJDWHWKHHƩHFWVRIVSHFLƪFULVNVLQFDVHVXFKULVNVDUHDWOHYHOV 5
beyond the prudent risk levels decided by BIRMC based on the Bank’s policies and regulatory and supervisory
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(91) YH Frequency of Meetings
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ZKHQUHTXLUHGƶHDJHQGDFRYHUVPDWWHUVDVVHVVLQJDOODVSHFWVRIULVNPDQDJHPHQWLQFOXGLQJXSGDWHG
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177
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Section
YI 2ƬFHUV5HVSRQVLEOHIRU)DLOXUHWR,GHQWLI\6SHFLƪF5LVNVRU,PSOHPHQW&RUUHFWLYH$FWLRQ
BIRMC provides recommendation to the Board to take corrective action as directed by Director of Bank 5
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informed of such by the CEO/MD.
YJ Risk Assessment Report to Board
5LVNUHSRUWVVXPPDULVLQJVLJQLƪFDQWULVNVLIDQ\KLJKOLJKWHGDW%,50&PHHWLQJVDUHVXEPLWWHGWRWKH%RDUG 5
after each meeting by the Secretary to the committee within a week. In addition, all serious and/or urgent risk
concerns are immediately conveyed by the BIRMC Chairman to all the Board Directors.
YK Compliance Function
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and regulatory guidelines. In addition, the Compliance Department assesses the Bank’s compliance with
LQWHUQDOFRQWUROVDQGDSSURYHGSROLFLHVRQDOODUHDVRIEXVLQHVVRSHUDWLRQVƶLVIXQFWLRQLVKHDGHGE\D
GHGLFDWHG*URXS&KLHI&RPSOLDQFH2ƬFHUZKRUHSRUWVWRWKH%RDUG,QWHJUDWHG5LVN0DQDJHPHQW&RPPLWWHH
(BIRMC) and is responsible for providing the following:
y A detailed quarterly report on statutory and mandatory reporting requirements indicating the status of
compliance to the Board.
y A monthly compliance report is tabled at the BIRMC for information and necessary action.
RELATED PARTY TRANSACTIONS

L &DWHJRULHVRI5HODWHG3DUWLHVDQG$YRLGDQFHRI&RQƫLFWRI,QWHUHVW
$GXO\DSSURYHGGRFXPHQWHGSURFHVVLVLQSODFHRQLGHQWLƪFDWLRQRIDQGGHDOLQJZLWKFDWHJRULHVRI5HODWHG 5
3DUWLHVDQGWKHLUWUDQVDFWLRQVLQRUGHUIRUWKH%DQNWRDYRLGDQ\FRQƫLFWVRILQWHUHVWWKDWPD\DULVHIURPDQ\
transaction with the relevant parties.
Further, Directors and the KMPs are individually requested to declare their transactions with the Bank on a
TXDUWHUO\DQGDQQXDOEDVLVƶHDYRLGDQFHRI&RQƫLFWRI,QWHUHVWLVIXUWKHUVXSSRUWHGE\WKH%RDUGDSSURYHG
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(96) LL Related Party Transactions Covered by Direction
Related Party Transactions covered for the purpose of the above process with Directors and Key Management 5
Personnel include:
y ƶHJUDQWRIDQ\W\SHRIDFFRPPRGDWLRQDVGHƪQHGLQWKH0RQHWDU\%RDUGţV'LUHFWLRQVRQPD[LPXP
amount of accommodation pursuant to Section 47 of the Banking Act No. 30 of 1988.
y ƶHFUHDWLRQRIDQ\OLDELOLWLHVRIWKH%DQNLQWKHIRUPRIGHSRVLWVERUURZLQJVDQGLQYHVWPHQWV
y ƶHSURYLVLRQRIDQ\VHUYLFHVRIDƪQDQFLDORUQRQƪQDQFLDOQDWXUHSURYLGHGWRWKH%DQNRUUHFHLYHGIURP
the Bank.
y ƶHFUHDWLRQRUPDLQWHQDQFHRIUHSRUWLQJOLQHVDQGLQIRUPDWLRQƫRZVEHWZHHQWKH%DQNDQGDQ\5HODWHG
3DUWLHVZKLFKPD\OHDGWRWKHVKDULQJRISRWHQWLDOO\SURSULHWDU\FRQƪGHQWLDORURWKHUZLVHVHQVLWLYH
LQIRUPDWLRQWKDWPD\JLYHEHQHƪWVWRVXFK5HODWHG3DUWLHV
LLL 0RQLWRULQJRI5HODWHG3DUW\7UDQVDFWLRQV'HƪQHGDV0RUH)DYRXUDEOH7UHDWPHQW
ƶH%DQNKDVLPSOHPHQWHGDSUHYHQWLYHV\VWHPWRHQVXUHWKDWQRIDYRXUDEOHWUHDWPHQWLVRƩHUHGWR5HODWHG 5
Parties including those noted in 3(7)(i) above. Additionally, at the review of every Related Party Transaction by
the Related Party Transactions Review Committee, a detective mechanism based on comparables too takes
place.
LY Granting Accommodation to a Director or Close Relation of a Director
Principles of the Direction are followed when granting accommodations to Directors or close relations of a 5
Director.
178

Section
Y Accommodation Granted to Persons, or Concerns of Persons, or Close Relations of Persons, who
Subsequently are Appointed as Directors of the Bank
$SURFHGXUHRQPRQLWRULQJJUDQWRIVXFKDFFRPPRGDWLRQWR'LUHFWRUVDQGWKHLUUHODWHGSDUWLHVLVLQSODFHƶH 5
VDLGRSHUDWLRQDOSURFHGXUHVHWVRXWWKHGLƩHUHQWVLWXDWLRQVWKDWPD\DULVHZKHQJUDQWLQJDFFRPPRGDWLRQWR
Directors or to their close relatives or concerns in which the Directors may have substantial Interest and the
steps to be taken when an individual already have been granted accommodation subsequently becomes a
Director.
ƶH&RPSDQ\6HFUHWDU\REWDLQV5HODWHG3DUW\'LVFORVXUHVIURPDOO'LUHFWRUVRQDTXDUWHUO\EDVLVƶH 5
operational instructions issued and the Procedure on Dealing with Related Party Transactions too require any
team member engaged in relevant areas of business to act in compliance with the regulatory framework set out
in the said Directives and Statutes.
(PSOR\HHVRIWKH%DQNDUHDZDUHRIWKHUHTXLUHPHQWWRREWDLQQHFHVVDU\VHFXULW\DVGHƪQHGE\WKH0RQHWDU\ 5
Board in the relevant circumstances.
A process to monitor compliance with this regulation has been established. 5
YL )DYRXUDEOH7UHDWPHQW:DLYHURI)HHVDQGRU&RPPLVVLRQVRU$FFRPPRGDWLRQWR%DQN(PSOR\HHVRUWKHLU
Close Relations
No favourable treatment/accommodation are provided to Bank employees other than those provided under the 5
VFKHPHRIVWDƩEHQHƪWVLQWHUPVRIWKHRSHUDWLQJLQVWUXFWLRQVLVVXHGE\WKH%DQNIURPWLPHWRWLPHJRYHUQLQJ
same and the Bank’s Board-approved Policy on Reward Management for Key Management Personnel.
Employees of the Bank are informed through operational circulars to refrain from granting favourable
treatment to employees or their close relations or to any concern in which an employee or close relation has a
substantial interest except as provided in the Bank’s Operational Guidelines and Directives.
YLL Remission of Accommodation Granted to Directors Subject to Monetary Board Approval
Operational instructions have been issued specifying strict instructions to refrain from remissions of 5
accommodation granted to Directors, their close relations or to concerns in which they have a substantial
LQWHUHVWDUHEHLQJHƩHFWHGZLWKRXWDSSURYDORIWKH0RQHWDU\%RDUG
ƶHVLWXDWLRQKDVQRWDULVHQLQWKH%DQNWRGDWHDQGRSHUDWLQJLQVWUXFWLRQVDVVWDWHGDERYHKDYHEHHQLVVXHGWR
prevent non-compliance with this requirement.
DISCLOSURES
L Publish Annual and Quarterly Financial Statements
Annual audited Financial Statements and quarterly Financial Statements are prepared and published 5
in accordance with the formats prescribed by the supervisory and regulatory authorities and applicable
Accounting Standards.
LL Disclosures in Annual Report
LLD $6WDWHPHQWWRWKH(ƩHFWWKDWWKH$QQXDO$XGLWHG)LQDQFLDO6WDWHPHQWVKDYHEHHQ3UHSDUHGLQOLQHZLWK
$SSOLFDEOH$FFRXQWLQJ6WDQGDUGVDQG5HJXODWRU\5HTXLUHPHQWV,QFOXVLYHRI6SHFLƪF'LVFORVXUHV
$VWDWHPHQWWRWKLVHƩHFWLVLQFOXGHGLQWKHIROORZLQJ 5
y $QQXDO5HSRUWRIWKH%RDUGRI'LUHFWRUVRQWKH$ƩDLUVRIWKH&RPSDQ\JLYHQRQSDJHVWR
LLE Report by the Board on the Bank’s Internal Control Mechanism
ƶH$QQXDO5HSRUWLQFOXGHVWKHIROORZLQJUHSRUWVZKHUHWKH%RDUGFRQƪUPVWKDWWKHƪQDQFLDOUHSRUWLQJV\VWHP 5
KDVEHHQGHVLJQHGWRSURYLGHUHDVRQDEOHDVVXUDQFHUHJDUGLQJWKHUHOLDELOLW\RIƪQDQFLDOUHSRUWLQJDQGWKDW
WKHSUHSDUDWLRQRIƪQDQFLDOVWDWHPHQWVIRUH[WHUQDOSXUSRVHVKDVEHHQGRQHLQDFFRUGDQFHZLWKUHOHYDQW
accounting principles and regulatory requirements:
y Directors’ Statement on Internal Control over Financial Reporting given on pages 205 to 206.
179
CORPORATE
GOVERNANCE
GRI 102-25,35

Section
LLF ([WHUQDO$XGLWRU
V&HUWLƪFDWLRQRQ(ƩHFWLYHQHVVRIWKH,QWHUQDO&RQWURO0HFKDQLVP5HIHUUHGLQLLE
ƶH%RDUGKDVREWDLQHGDQDVVXUDQFHUHSRUWLVVXHGE\WKH$XGLWRUVXQGHUŢ6UL/DQND6WDQGDUGRQ$VVXUDQFH 5
(QJDJHPHQWV6/6$(ţRQWKHHƩHFWLYHQHVVRI,QWHUQDO&RQWUROV2YHU)LQDQFLDO5HSRUWLQJZKLFKLVSXEOLVKHG
on page 207.
LLG Details of Directors
Details of Directors are given on pages 20 to 25. 5
Directors’ interests in contracts with the Company are given below; (including Executive Directors)
Category Amount
Rs 000
Loans 38,231
Deposits 147,277
Credit cards 2,074
Interest income 3,468
Interest expense 14,507
Share based payments
Cash dividend 263
Scrip dividend (Number of shares) 2,150
Aggregate value of remuneration/fee paid by the Bank 126,183

3RVWHPSOR\PHQWEHQHƪWVSDLG 3,692
LLH Net Accommodation Granted to Each Category of Related Parties and as a Percentage of the Bank’s
Regulatory Capital
Related Party Transactions are given in Note No. 46 to the Financial Statements on pages 306 to 309 5
Net accommodation granted to Related Parties are given below;
Category of related party transaction As a % of Amount

regulatory capital
of the Bank Rs 000
Directors and close family members 0.04 45,746
KMPs & close family members 0.15 186,086
Subsidiaries 7.76 9,578,490
Shareholders owning material interest in the Bank - -
Concerns in which any of the Bank’s Directors or
a close relation of any of the Bank’s Directors or
any of its material shareholders has a substantial
interest 7.56 9,331,668
180

Section
LLI Aggregate Values of Remuneration Paid to, and Transactions with Key Management Personnel
Nature of transaction Amount 5

Rs 000
6KRUWWHUPHPSOR\PHQWEHQHƪWV 393,665
3RVWHPSOR\PHQWEHQHƪWV 58,340
Loans & advances including credit cards 200,230
Deposit & investments 267,259
Interest income 13,282
Interest expenses 26,248
Share based payments
Cash dividend paid 1,855
Scrip dividend paid (Number of shares) 14,936
ƶHUHPXQHUDWLRQSDLGWRDQGWUDQVDFWLRQVZLWK([HFXWLYH'LUHFWRUVDUHLQFOXGHGLQLLGDERYH
LLJ &RQƪUPDWLRQE\WKH%RDUGRQWKH$QQXDO&RUSRUDWH*RYHUQDQFH5HSRUW
%RDUGKDVFRQƪUPHGLQWKH$QQXDO5HSRUWRIWKH%RDUGRI'LUHFWRUVRQWKH$ƩDLUVRIWKH&RPSDQ\WKDWDOOWKH 5
ƪQGLQJVRIWKH)DFWXDO)LQGLQJV5HSRUWRI$XGLWRUVKDYHEHHQLQFRUSRUDWHGLQWKH%DQNţV$QQXDO&RUSRUDWH
Governance Report.
LLK 5HSRUW&RQƪUPLQJ&RPSOLDQFHZLWK3UXGHQWLDO5HTXLUHPHQWV5HJXODWLRQV/DZVDQG,QWHUQDO&RQWUROV
ƶH6WDWHPHQWRI'LUHFWRUVţ5HVSRQVLELOLW\RQ)LQDQFLDO5HSRUWLQJJLYHQRQSDJHVDQGFOHDUO\VHWVRXW 5
GHWDLOVUHJDUGLQJFRPSOLDQFHZLWKSUXGHQWLDOUHTXLUHPHQWVUHJXODWLRQVODZVDQGLQWHUQDOFRQWUROVƶHUHZHUH
no instances of material non-compliance to report on corrective action taken during the year.
LLL Measures Taken to Rectify Non-Compliant Issues
ƶHUHZHUHQRODSVHVLQYLWLQJVXSHUYLVRU\FRQFHUQVLQWKH%DQNţV5LVN0DQDJHPHQW6\VWHPRUQRQFRPSOLDQFH 5
with these directions that have been pointed out by the Director of Bank Supervision required to be disclosed
by the Bank during the year.
PROF MALIK RANASINGHE NANDA FERNANDO

Chairman Managing Director
Colombo, Sri Lanka

13th February 2020
181
CORPORATE
GOVERNANCE
GRI 102-34
Section 7.6 of the Listing Rules of the Colombo Stock Exchange

Listing Rule Disclosure Requirement Section/Reference
Reference
7.6 (i) 1DPHVRISHUVRQVZKRGXULQJWKHƪQDQFLDO\HDUZHUH'LUHFWRUVRIWKH List of Directors who served during the year under
Bank. review is given on page 141 of the Corporate
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Directors of the Bank are given on pages 20 to 25.
7.6 (ii) Principal activities of the Bank and its Subsidiaries during the year and ƶH$QQXDO5HSRUWRIWKH%RDUGRI'LUHFWRUVRQWKH
any changes therein. $ƩDLUVRIWKH&RPSDQ\RQSDJHVWRFRQWDLQV
the Principle Business Activities of the Bank and its
Subsidiaries.
7.6 (iii) ƶHQDPHVDQGWKHQXPEHURIVKDUHVKHOGE\WKHODUJHVWKROGHUVRI Investor Information on pages 115 to 124 contains
voting shares and the percentage of such shares held. the List of Top 20 Shareholders of the Bank as at 31st
December 2019.
7.6 (iv) ƶHƫRDWDGMXVWHGPDUNHWFDSLWDOLVDWLRQ Details of the Public Shareholding and the Float
$GMXVWHG0DUNHW&DSLWDOLVDWLRQLVLQFOXGHGLQWKH
Public holding percentage (%), number of public shareholders and under Investor Information on page 119.
which option the Listed Entity complies with the Minimum Public Holding
requirement.
7.6 (v) $VWDWHPHQWRIHDFK'LUHFWRUţVKROGLQJDQG&KLHI([HFXWLYH2ƬFHUţV ƶH$QQXDO5HSRUWRIWKH%RDUGRI'LUHFWRUVRQWKH
KROGLQJLQVKDUHVRIWKH%DQNDWWKHEHJLQQLQJDQGHQGRIHDFKƪQDQFLDO $ƩDLUVRIWKH&RPSDQ\RQSDJHVWRFRQWDLQV
year. WKH'LUHFWRUţVKROGLQJDQG&KLHI([HFXWLYH2ƬFHUţV
(CEO/MD) holding in shares of the Bank.
7.6 (vi) Information pertaining to material foreseeable risk factors of the Bank. ƶH5LVN0DQDJHPHQW5HSRUWRQSDJHVWR
contains the information pertaining to material
foreseeable risk factors of the Bank.
7.6 (vii) Details of material issues pertaining to employees and industrial relations During the year under review, there were no material
of the Bank. issues relating to employees and industrial relations
pertaining to the Bank. However, the Board-approved
Whistle Blowing Policy and the Communication Policy is
in place to help identify the material issues pertaining to
employees and industrial relations.
7.6 (viii) Extents, locations, valuations and the number of buildings of the Entity’s Note 29 to the Financial Statements on pages 273
land holdings and investment properties. to 280 contains the details of the Property, Plant and
Equipment of the Bank.
7.6 (ix) Number of shares representing the Bank’s Stated Capital. Note 41 to the Financial Statements on page 299
contains the details of the Stated Capital of the Bank.
7.6 (x) A distribution schedule of the number of holders in each class of equity Investor Information on pages 115 to 124 contains the
securities, and the percentage of their total holdings. Frequency Distribution of Shareholders.
7.6 (xi) Ratios and market price information: Investor Information on pages 115 to 124 contains the
(TXLW\Dividend per share, Dividend pay out, Net asset value per share, required information.
Market value per share.
'HEWInterest rate of comparable government security, Debt/equity ratio, Investor Information on pages 115 to 124 contains the
Interest cover, Quick asset ratio, Market prices & yield during the year, any required information.
changes in credit rating.
7.6 (xii) 6LJQLƪFDQWFKDQJHVLQWKH(QWLW\ţVRULWV6XEVLGLDULHVţƪ[HGDVVHWVDQGWKH Note 29 to the Financial Statements on pages 273
PDUNHWYDOXHRIODQGLIWKHYDOXHGLƩHUVVXEVWDQWLDOO\IURPWKHERRNYDOXH to 280 contains the details of the Property, Plant and
Equipment of the Bank.
182

Reference
7.6 (xiii) Details of funds raised through Public Issues, Rights Issues, and Private Investor Information on pages 115 to 124 contains the
Placements during the year. details of Rights Issues of the Bank.
ƶHUHZHUHQR3XEOLF,VVXHVDQG3ULYDWH3ODFHPHQWV
during the year.
7.6 (xiv) D,QIRUPDWLRQLQUHVSHFWRI(PSOR\HH6KDUH2SWLRQ6FKHPHV(626 Not applicable as the Bank does not have Employee
Share Option Schemes at present.
y ƶHQXPEHURIRSWLRQVJUDQWHGWRHDFKFDWHJRU\RIHPSOR\HHV
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Further details disclosed in Investor Information on
y Total number of options vested but not exercised by each category of pages 115 to 124 contains the details of the previous
HPSOR\HHVGXULQJWKHƪQDQFLDO\HDU Employee Share Option Schemes of the Bank.
y Total number of options exercised by each category of employees
DQGWKHWRWDOQXPEHURIVKDUHVDULVLQJWKHUHIURPGXULQJWKHƪQDQFLDO
year.
y 2SWLRQVFDQFHOOHGGXULQJWKHƪQDQFLDO\HDUDQGWKHUHDVRQVIRUVXFK
cancellation.
y ƶHH[HUFLVHSULFH
y $GHFODUDWLRQE\WKH'LUHFWRUVRIWKH(QWLW\FRQƪUPLQJWKDWWKH(QWLW\
or any of its Subsidiaries has not, directly or indirectly, provided funds
for the ESOS.
E,QIRUPDWLRQLQUHVSHFWRI(PSOR\HH6KDUH3XUFKDVH6FKHPHV(636 Not applicable as the Bank does not have Employee
Share Purchase Schemes.
y ƶHWRWDOQXPEHURIVKDUHVLVVXHGXQGHUWKH(636GXULQJWKH
ƪQDQFLDO\HDU
y ƶHQXPEHURIVKDUHVLVVXHGWRHDFKFDWHJRU\RIHPSOR\HHVGXULQJ
WKHƪQDQFLDO\HDU
y ƶHSULFHDWZKLFKWKHVKDUHVZHUHLVVXHGWRWKHHPSOR\HHV
y $GHFODUDWLRQE\WKH'LUHFWRUVRIWKH(QWLW\FRQƪUPLQJWKDWWKHHQWLW\
or any of its Subsidiaries has not, directly or indirectly, provided funds
for the ESPS.
7.6 (xv) Disclosures pertaining to Corporate Governance practices in terms of
Rules 7.10.3, 7.10.5 c. and 7.10.6 c. of Section 7 of the Rules.
7.10.3 Disclosures Relating to Directors Disclosures relating to Directors are included in the
D ƶH%RDUGVKDOOPDNHDGHWHUPLQDWLRQDQQXDOO\DVWRWKH $QQXDO5HSRUWRIWKH%RDUGRI'LUHFWRUVRQWKH$ƩDLUVRI
independence or non-independence of each Non-Executive Director the Company on pages 195 to 204.
based on such declaration and other information available to the
Board and shall set out in the annual report the names of Directors 3URƪOHVRI'LUHFWRUVRIWKH%DQNDUHJLYHQRQSDJHV
determined to be ‘Independent’. to 25.
b. In the event a Director does not qualify as ‘Independent’ against any

of the criteria set out below but if the Board, taking account all the
circumstances, is of the opinion that the Director is nevertheless
‘Independent’, the Board shall specify the criteria not met and the
basis for its determination in the annual report.
183
CORPORATE
GOVERNANCE

Reference
c. In addition to disclosures relating to the independence of a Director
set out above, the Board shall publish in its annual report a brief
resume of each Director on its Board which includes information on
the nature of his/her expertise in relevant functional areas.
G 8SRQDSSRLQWPHQWRIDQHZ'LUHFWRUWRLWV%RDUGWKH%DQNVKDOO Market Disclosures were made to the Colombo Stock
forthwith provide to the Exchange a brief resume of such Director for Exchange upon appointment of New Directors during
dissemination to the public. Such resume shall include information the year.
on the matters itemised in paragraphs (a), (b) and (c) above.
7.10.5 Remuneration Committee
7.10.5.c Disclosure in the Annual Report
y ƶHDQQXDOUHSRUWVKRXOGVHWRXWWKHQDPHVRI'LUHFWRUVRUSHUVRQV ƶHFRPSRVLWLRQRIWKH%RDUG+XPDQ5HVRXUFHVDQG
in the Parent Company’s committee in the case of a group company) Remuneration Committee is given on page 188.
comprising the Remuneration Committee, contain a statement of the
remuneration policy and set out the aggregate remuneration paid to ƶHDJJUHJDWHUHPXQHUDWLRQWR([HFXWLYHDQG1RQ
Executive and Non-Executive Directors. Executive Directors are given on Note 46.3.1 to the
Financial Statements on page 306.
ƶH7HUPťUHPXQHUDWLRQŦVKDOOPDNHUHIHUHQFHWRFDVKDQGDOOQRQ
FDVKEHQHƪWVZKDWVRHYHUUHFHLYHGLQFRQVLGHUDWLRQRIHPSOR\PHQW
with the Listed Entity (excluding statutory entitlements such as
Employees Provident Fund and Employees Trust Fund).
7.10.6 Audit Committee
7.10.6.c Disclosure in the Annual Report
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committee in the case of a group company) comprising the Audit on pages 185 to 187.
&RPPLWWHHVKRXOGEHGLVFORVHGLQWKHDQQXDOUHSRUWƶHFRPPLWWHH
shall make a determination of the independence of the auditors and
shall disclose the basis for such determination in the annual report.
ƶHDQQXDOUHSRUWVKDOOFRQWDLQDUHSRUWE\WKH$XGLW&RPPLWWHH ƶH&RPPLWWHHWKURXJKWKHLUDQQXDOHYDOXDWLRQ
setting out the manner of compliance by the Entity in relation to the assessed the level of independence of the External
above, during the period to which the annual report relates. Auditors.
7.6 (xvi) Related Party Transactions exceeding 10% of the Equity or 5% of the Total
Assets of the Entity as per Audited Financial Statements, whichever is
lower.
Details of investments in a Related Party and/or amounts due from a None of the transactions carried out by the Bank with
Related Party to be set out separately. Related parties have exceeded the aggregate monetary
value of 10% of the shareholders' Equity of the Bank or
ƶHGHWDLOVVKDOOLQFOXGHDVDPLQLPXPWKHGDWHRIWKHWUDQVDFWLRQWKH 5% of the Total Assets of the Bank as at 31st December
name of the Related Party, the relationship between the Entity and the 2019.
Related Party, the amount of the transaction and terms of the transaction, ƶHVDPHKDVEHHQGLVFORVHGLQWKH,QYHVWRU
the rationale for entering into the transaction. Information on pages 115 to 124.
184
BOARD AUDIT
COMMITTEE REPORT
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which was established on 10th April 1997, is and counts many years of experience in the reporting, risk management processes
appointed by and responsible to the Board Financial Services industry. and regulatory compliance.
RI'LUHFWRUVWKH%RDUGƶH&RPPLWWHH
5. Reviewing the Financial Statements
comprises four (04) Independent, Non- MEETINGS
(including quarterly interim statements)
Executive Directors as at 31st December ƶH&RPPLWWHHPHWRQHLJKWHHQRFFDVLRQV prior to publication to ensure constant
2019, who conduct Committee proceedings during the year 2019. Attendance by the and continuous compliance with statutory
in accordance with the Committee's Terms Committee members at these meetings is provisions, accounting standards and
RI5HIHUHQFHDSSURYHGE\WKH%RDUGƶH given in the table on page 141 of the Annual accounting policies.
Committee’s composition as at 31st December 5HSRUWƶH0DQDJLQJ'LUHFWRU*URXS&KLHI
2019 was: )LQDQFLDO2ƬFHU$VVLVWDQW*HQHUDO0DQDJHU 6. Reviewing Internal Audit reports and
Internal Audit, Chief Manager - Systems Audit, liaising with the Bank’s Corporate
Mr Ranil Pathirana the Consultant to the Board Audit Committee Management to ensure that precautionary
(Chairman) (IND/NED) and the External Auditors also attended these measures are taken to minimise and
meetings by invitation. 04 of these meetings control weaknesses, procedure violations,
Mr Dilip de S Wijeyeratne frauds and errors.
were held to consider and recommend to the
(IND/NED) (w.e.f. 02.05.2019)
Board of Directors, the Bank’s Quarterly and 7. Assessing the independence and
Dr Sanjiva Weerawarana Annual Financial Statements. reviewing the adequacy of the scope,
(IND/NED) (w.e.f. 01.06.2019) functions and resources of the Internal
TERMS OF REFERENCE Audit Department, including the
Mr Deshal de Mel ƶHHVWDEOLVKPHQWUROHDQGIXQFWLRQVRI appointment of the Assistant General
(IND/NED) (w.e.f. 26.09.2019) the Board Audit Committee are regulated Manager - Internal Audit and the
by the Banking Act Direction No. 11 of 2007 performance of the Head and senior
Prof Malik Ranasinghe VWDƩPHPEHUVRIWKH,QWHUQDO$XGLW
on Corporate Governance for Licensed
(IND/NED) (up to 01.06.2019) Department.
Commercial Banks issued by the Central
Bank of Sri Lanka, the Rules on Corporate
Mr Deepal Sooriyaarachchi 8. Overseeing the appointment,
Governance as per Section 7.10 of Listing Rules
(NID/NED) (up to 04.08.2019) compensation, resignation and dismissal
issued by the Colombo Stock Exchange and the
of the External Auditors, including review
Mrs Dhara Wijayatilake Code of Best Practice on Corporate Governance
of the External Audit function, its cost
(IND/NED) (up to 26.09.2019) 2017 issued by the Institute of Chartered
DQGHƩHFWLYHQHVVDQGPRQLWRULQJRIWKH
Accountants of Sri Lanka (CA Sri Lanka).
External Auditors’ independence and
,1',QGHSHQGHQW'LUHFWRU1,'1RQ,QGHSHQGHQW
to ensure that the engagement of the
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$XGLW3DUWQHUVKDOOQRWH[FHHGƪYH\HDUV
reports on its activities to the Board regularly
ZHIZLWKHƩHFWIURP and that the particular Audit Partner is
and also assists the Board in its general
not re-engaged for the audit before the
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expiry of three years from the date of the
Chartered Accountant at KPMG, serves the controls and functions relating to internal and
completion of the previous term.
Committee in the capacity of a Consultant and external audits.
is invited to attend the meetings. 5HYLHZLQJWKHHƩHFWLYHQHVVRIWKH
ROLE AND RESPONSIBILITIES Bank’s system of Internal Control Over
%ULHISURƪOHVRIWKHPHPEHUVRIWKH ƶH&RPPLWWHHLVUHVSRQVLEOHIRU Financial Reporting to provide reasonable
Committee are given on pages 20 to 25 of assurance regarding the reliability of
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WKH$QQXDO5HSRUWƶH&RPSDQ\6HFUHWDU\ ƪQDQFLDOUHSRUWLQJDQGWKHSUHSDUDWLRQ
to monitor the integrity of the Financial
or his/her nominee shall be the Secretary of Financial Statements for external
Statements of the Bank, its annual report,
to the Committee, and in the absence of purposes have been done in accordance
accounts and quarterly reports prepared
the Company Secretary or his/her nominee, with applicable accounting standards and
for disclosure.
the Chief Internal Auditor/Assistant General regulatory requirements.
Manager - Internal Audit shall act as the 2. Reporting to the Board on the quality,
10. Engaging Independent Advisors for
Secretary to the Committee. appropriateness and acceptability of the
specialised functions where it deems
Bank’s accounting policies and practices.
necessary.
ƶH&KDLUPDQRIWKH&RPPLWWHH0U5DQLO 3. Assessing the reasonableness of the
Pathirana, an Independent Non- Executive underlying assumptions for estimates
Director, is a Fellow Member of the Chartered DQGMXGJPHQWVPDGHLQSUHSDULQJWKH
Financial Statements.
185
BOARD AUDIT
COMMITTEE REPORT
ACTIVITIES IN 2019 ťƶH'LUHFWRUVţ6WDWHPHQWRI,QWHUQDO&RQWUROŦ procedures set out in Sri Lanka Related

Financial Reporting issued by the CA Sri Lanka in 2010. Services Practice Statement 4750 issued by
the CA Sri Lanka (SLRSPS 4750), to meet the
ƶH&RPPLWWHHDVSDUWRILWVUHVSRQVLELOLW\WR
ƶH%DQNţVDVVHVVPHQWZDVEDVHGRQ compliance requirement of the said Corporate
RYHUVHHWKH%DQNţVƪQDQFLDOUHSRUWLQJSURFHVV
processes documented by the respective Governance directive.
on behalf of the Board of Directors, has
process owners. For the successful
reviewed and discussed with the Management
implementation of this task, a steering ƶHLUƪQGLQJVSUHVHQWHGLQWKHLUUHSRUWGDWHG
and the External Auditors, the Quarterly
committee (Internal Control Over Financial 13th February 2020 addressed to the Board
and the Annual Financial Statements prior
Reporting Steering Committee) headed by the are consistent with the matters disclosed above
WRWKHLUUHOHDVHƶHUHYLHZLQFOXGHGWKH
*URXS&KLHI)LQDQFLDO2ƬFHUDQGFRPSULVLQJ and any inconsistencies to those reported by
quality, appropriateness and acceptability of
of relevant members of the Corporate the Board on pages 166 to 181 have not been
accounting policies and practices, the clarity of
Management and other relevant Department LGHQWLƪHG
the disclosures and the extent of compliance
Heads was formulated in 2010 with the
ZLWKƪQDQFLDOUHSRUWLQJVWDQGDUGVLQWHUPVRI
guidance of the Bank’s External Auditors (Ernst Internal Audit
Companies Act No. 7 of 2007, Banking Act No.
& Young). At present, the Assistant General
RIDQGRWKHUUHOHYDQWƪQDQFLDODQG During the year, the Board Audit Committee
Manager - Internal Audit (Chairman), Group
governance reporting requirements. FRQWLQXHGWRIXOƪOLWVPDQGDWHWRPRQLWRUDQG
&KLHI)LQDQFLDO2ƬFHU*URXS&KLHI5LVN
UHYLHZWKHVFRSHH[WHQWDQGHƩHFWLYHQHVV
2ƬFHUDQG*URXS&KLHI&RPSOLDQFH2ƬFHU
To facilitate the review, the Committee of the activities of the Bank’s Internal Audit
serves in the Internal Control Over Financial
considered reports from the Group Chief Department, including review of the progress
5HSRUWLQJ6WHHULQJ&RPPLWWHHƶH,QWHUQDO
)LQDQFLDO2ƬFHUDQGUHSRUWVIURPWKH([WHUQDO made on Audit activities and achievements
Audit Department carries out a series of walk-
Auditors on the outcome of the half-year review DJDLQVWWKH%DQNţV$XGLW3ODQƶH&RPPLWWHH
through tests to establish their adequacy of
and Annual Audit. reviewed the Internal Audit Plan and
documented processes and make appropriate
monitored its implementation through regular
recommendations where necessary.
ƶH&RPPLWWHHFORVHO\PRQLWRUHGWKH communications with the Assistant General
implementation of the Sri Lanka Accounting Manager - Internal Audit.
Based on Internal Auditors’ and External
Standard - SLFRS 16 (Leases), issued by CA Sri
Auditors’ assessments, the Board has
/DQNDZKLFKEHFDPHHƩHFWLYHIURPVW-DQXDU\ In parallel, reviews were also conducted to
concluded that, as of 31st December 2019,
2019. DVVHVVWKHHƬFLHQF\RIWKH,QWHUQDO$XGLW
the Bank’s Internal Control Over Financial
)XQFWLRQLQLWVFDSDFLW\DVWKHťƶLUGOLQH
5HSRUWLQJLVHƩHFWLYH'LUHFWRUVţ6WDWHPHQW
ƶH&RPPLWWHHDOVRFORVHO\PRQLWRUHGWKH RIGHIHQVHŦ,QLWVUROHDVWKHťƶLUGOLQHRI
on the Bank’s Internal Control Over Financial
training and awareness sessions on SLFRS 9 defense”, the Internal Audit Department is
Reporting is provided on pages 205 and 206.
(Financial Instruments) conducted by the required to conduct system audits, Branch,
ƶH%DQNţV([WHUQDO$XGLWRUVKDYHDXGLWHGWKH
management to all stakeholders including the =RQDO2ƬFHDQG+HDG2ƬFH'HSDUWPHQWVţ
HƩHFWLYHQHVVRIWKH%DQNţV,QWHUQDO&RQWURO
Board and Senior Management during 2019. audits as well as Forensic/Fraud Investigations
Over Financial Reporting and have reported
It will continuously strengthen the processes LQRUGHUWRSURYLGHDQLQGHSHQGHQWREMHFWLYH
to the Board that nothing has come to their
and controls around management information assurance and consulting services adding
attention that causes them to believe that
systems and reports required for validation value and improving the operations by bringing
WKHƪQDQFLDOUHSRUWLQJZDVLQFRQVLVWHQWZLWK
and compliance in line with SLFRS 9 and a systematic and disciplined approach to
their understanding of the processes adopted
ƪQDQFLDOVWDWHPHQWGLVFORVXUHVUHODWHGWRULVN HYDOXDWHDQGLPSURYHWKHHƩHFWLYHQHVVRI
by the Board in the review of the design and
management. the Group’s governance, risk management
HƩHFWLYHQHVVRIWKHLQWHUQDOFRQWUROV\VWHP
and internal controls. Accordingly, in 2019
RIWKH%DQNƶH([WHUQDO$XGLWRUVţ5HSRUW
Internal Control Over Financial Reporting the Internal Audit Department carried out
on the Bank’s Internal Control Over Financial
,&2)5 comprehensive audits covering all aspects
Reporting is provided on page 207.
RIWKHEXVLQHVVƶHDUHDVFRYHUHGDQGWKH
ƶH%DQNLVUHTXLUHGWRFRPSO\ZLWK6HFWLRQ
regularity of audits were dependent on the
3(8)(ii)(b) of the Banking Act Direction No. 11 of Annual Corporate Governance Report risk boundary for each section, with higher
DQGDVVHVVWKHHƩHFWLYHQHVVRI,QWHUQDO
As required by Section 3(8)(ii)(g) of the Banking ULVNDUHDVVXEMHFWWRPRUHIUHTXHQWDXGLWV
Control Over Financial Reporting as of 31st
Act Direction No. 11 of 2007, on Corporate In the year under review, the Internal Audit
December 2019.
Governance for Licensed Commercial Banks Department continued its “Root Cause
issued by the Central Bank of Sri Lanka, the Analysis” process which was introduced in
ƶH%DQNDVVHVVHGWKHHƩHFWLYHQHVVRILWV Annual Corporate Governance Report for DVDWHFKQLTXHWRH[DPLQHƪQGLQJV
Internal Control Over Financial Reporting as of LVSURYLGHGRQSDJHWRƶH of Branch/Department audits and isolate
31st December 2019 based on the criteria set External Auditors of the Bank have performed possible systemic issues to be escalated to
out in the Guidance for Directors of Banks on
the Management for corrective action of
186
GRI 102-33,34
the Internal Audit reports prepared on this 5. Met the External Auditors on two Whistle Blowing
basis. 915 Branch reports, 44 Department occasions during the year without the Bank’s Whistle Blowing Policy continued to be
UHSRUWVDQGUHSRUWVRQ=RQDO2ƬFHVZHUH Executive Directors and the Management implemented as a component of the Corporate
reviewed by the Committee during 2019, being present to ensure that there was )UDXG5LVN0DQDJHPHQW)UDPHZRUNƶH
with recommendations made to Corporate no limitation of scope in relation to the Policy allows any team member who has a
Management along with follow up action Audit and to allow for full disclosure of legitimate concern on an existing or potential
to ensure that suggestions were applied in any incidents, which could have had a “wrong doing”, by any person within the Bank,
practice. QHJDWLYHLPSDFWRQWKHHƩHFWLYHQHVVRI to come forward voluntarily, and bring such
the External Audit. It was concluded that concern to the notice of the Chairman of the
ƶH&RPPLWWHHDOVRUHYLHZHGWKHPDMRU there was no cause for concern. Board Audit Committee through the Company
ƪQGLQJVRI,QWHUQDO,QYHVWLJDWLRQVFDUULHGRXW Secretary. Concerns raised are investigated and
6. Reviewed the Non-Audit Services provided
during the year and matters reported in terms the identity of the person raising the concern is
by the External Auditors and was of the
of the Anti-Fraud Policy of the Bank. NHSWFRQƪGHQWLDO(YHQDQRQ\PRXVFRPSODLQWV
view that such services were not within
WKHFDWHJRU\RIVHUYLFHVLGHQWLƪHGDV which are covered under whistle blowing,
All Internal Audit reports were made available DUHLQYHVWLJDWHGXQGHUWKHVDLG3ROLF\ƶLV
prohibited under:
to External Auditors as well. procedure continues to be strictly monitored by
y ƶHJXLGHOLQHVLVVXHGE\WKH&HQWUDO the Committee.
ƶH&RPPLWWHHUHYLHZHGWKHUHVRXUFH Bank of Sri Lanka for External
requirements of the Internal Audit Department Auditors relating to their statutory REPORTING TO THE BOARD
and conducted performance appraisals of duties in terms of Section 39 of the
ƶH0LQXWHVRIWKH&RPPLWWHHPHHWLQJVDUH
IRUWKH+HDGDQGVHQLRUVWDƩPHPEHUV Banking Act No. 30 of 1988.
tabled at the Board meetings enabling all
RIWKH,QWHUQDO$XGLW'HSDUWPHQWƶH
y ƶH*XLGHOLQHIRU/LVWHG&RPSDQLHV Board members to have access to them.
performance evaluation of the Head and the
on Audit and Audit Committees
VHQLRUVWDƩPHPEHUVRIWKH,QWHUQDO$XGLW
issued by the Securities and PROFESSIONAL ADVICE
Department for the year 2019 will be carried
Exchange Commission of Sri Lanka. ƶH&RPPLWWHHKDVWKHDXWKRULW\WRVHHN
RXWE\WKH&RPPLWWHHGXULQJWKHƪUVWTXDUWHU
of 2020. external professional advice from time to
7. Reviewed the Letter of Representation
time on matters within its purview. During
issued to the External Auditors by the
the year, consultations were held with
External Auditors Board.
various professionals, on matters under the
With regard to the External Audit Function of 8. Reviewed the Letter of Independence Committee’s purview.
the Bank, the role played by the Committee was &RQƪUPDWLRQLVVXHGE\WKH([WHUQDO
as follows: Auditors as required by the Companies BOARD AUDIT COMMITTEE EVALUATION
$FW1RRIFRQƪUPLQJWKDWWKH\GR ƶHDQQXDOHYDOXDWLRQRIWKH&RPPLWWHHZDV
8QGHUWRRNWKHDQQXDOHYDOXDWLRQRIWKH not have any relationship or interest in the conducted by the members of the Board Audit
,QGHSHQGHQFHDQG2EMHFWLYLW\RIWKH company, which may have a bearing on Committee during the year and concluded that
([WHUQDO$XGLWRUDQGWKHHƩHFWLYHQHVVRI their independence within the meaning of LWVSHUIRUPDQFHZDVHƩHFWLYH
the audit process. the Code of Conduct and Ethics of the CA
2. Met with the External Auditors to discuss Sri Lanka. On behalf of the Board Audit Committee
their audit approach and procedure, 9. Reviewed the service period of the
including matters relating to the scope of engagement of the External Audit Partner
the audit and Auditors’ Independence. WRHQVXUHWKDWLWKDVQRWH[FHHGHGƪYH
3. Reviewed the audited Financial years.
RANIL PATHIRANA
Statements with the External Auditors who Chairman - Board Audit Committee
are responsible for expressing an opinion ƶH&RPPLWWHHKDVUHFRPPHQGHGWRWKH
on its conformity with the Sri Lanka Board, that Messrs Ernst and Young, Chartered
Colombo, Sri Lanka
Accounting Standards. $FFRXQWDQWVEHUHDSSRLQWHGIRUWKHƪQDQFLDO
13th February 2020
\HDUHQGLQJVW'HFHPEHUVXEMHFWWR
4. Reviewed the Management Letter issued the approval of shareholders at the next Annual
by the External Auditors together with General Meeting.
management responses thereto.
187
BOARD HUMAN RESOURCES
AND REMUNERATION GRI 102-35,36
COMMITTEE REPORT
ƶH%RDUG+XPDQ5HVRXUFHVDQG5HPXQHUDWLRQ REGULATIONS/RULES RELEVANT TO THE ZHUHLGHQWLƪHGLQFOXGLQJWKRVHQHFHVVDU\WR
Committee (the Committee) comprises seven (07) FUNCTIONS OF THE COMMITTEE UHVSRQGWRWKHVSHFLƪFFKDOOHQJHVIDFHGE\WKH
Non-Executive Directors. industry during the year under review.
ƶHUROHDQGIXQFWLRQVRIWKH&RPPLWWHHZHUH
ƶH&RPPLWWHHţVFRPSRVLWLRQGXULQJWKH\HDU LGHQWLƪHGDVLQSUHYLRXV\HDUVZLWKUHIHUHQFHWRWKH ƶH&RPPLWWHHUHYLHZHGDQGUHYLVHGWKH
under review was as follows: provisions of Direction No. 11 of 2007 made under Disciplinary Procedure of the Bank to ensure that
the Banking Act by the Central Bank of Sri Lanka, principles of good governance were complied with
Mrs Dhara Wijayatilake
the Mandatory Code of Corporate Governance for while also ensuring that the disciplinary regime
Chairperson (IND/NED)
Licensed Commercial Banks issued by the Central provided a fair process to deal with indiscipline.
Mr Sanjiva Senanayake Bank of Sri Lanka and section B.1.1 of the Code
(IND/NED) of Best Practice on Corporate Governance 2017 ƶH&RPPLWWHHDOVRUHYLHZHGH[LVWLQJ3ROLFLHV
issued by the Institute of Chartered Accountants of to ensure that the Bank endorses a culture that
Mrs Saumya Amarasekera
Sri Lanka. respects equality among all as articulated in the
(NID/NED)
Constitution of Sri Lanka, and respects gender
Ms Annika Senanayake SCOPE OF THE RESPONSIBILITIES equality and also has a meaningful grievance
(IND/NED) ƶHVFRSHRIWKHUHVSRQVLELOLWLHVDVVLJQHGWRWKH handling process.
Committee are as set out in the Terms of Reference
Mr Dilip de S Wijeyeratne which is as follows: :LWKUHJDUGWRFDSDFLW\EXLOGLQJRIVWDƩWKH
(IND/NED) (w.e.f. 01.06.2019) Committee monitored the implementation of
1. To determine the remuneration policies
Ms Aroshi Nanayakkara new initiatives introduced in respect of learning
VDODULHVDOORZDQFHVDQGRWKHUƪQDQFLDO
(IND/NED) (w.e.f. 01.06.2019) and development activities, including the online
payments) relating to Directors, CEO and Key
Learning Management System that replaced the
Mr Deshal de Mel Management Personnel’s [KMPs] of the Bank.
e-learning platform.
(IND/NED) (w.e.f. 26.09.2019) 2. To set goals and targets for the CEO and Key
Management Personnel. ƶH&RPPLWWHHDOVRNHSWXQGHUUHYLHZWKH
Mr Channa Palansuriya
3. To evaluate the performance of the CEO HƩHFWLYHQHVVRIWKH%DQNţVWUDLQLQJSURJUDPPHV
(NID/NED) (up to 01.04.2019)
and Key Management Personnel against set and monitored the outcome of such programmes
Mr Deepal Sooriyaarachchi targets and goals periodically and determine to ensure that the programmes were relevant
(NID/NED) (up to 04.08.2019) WKHEDVLVIRUUHYLVLQJUHPXQHUDWLRQEHQHƪWV DQGRIYDOXHƶHIRFXVZDVRQHQKDQFLQJWKH
and other payments of performance based SHUIRUPDQFHRIWKHVWDƩWRGHOLYHUDQHƬFLHQW
Prof Malik Ranasinghe
incentives. service to the clients.
(IND/NED) (up to 26.09.2019)
4. To take on any other areas and enlarge its REPORTING TO THE BOARD
,1',QGHSHQGHQW'LUHFWRU1,'1RQ,QGHSHQGHQW scope which in its view or in the Board’s view is
'LUHFWRUDQG1('1RQ([HFXWLYH'LUHFWRU desirable if it were handled by the Committee. ƶH0LQXWHVRIWKH&RPPLWWHHPHHWLQJVZHUH
ZHIZLWKHƩHFWIURP
tabled at Board meetings thereby providing the
5. To advise the KMP heading the Human
Board members with access to the deliberations of
Resources Department of the Bank with
%ULHISURƪOHVRIWKH0HPEHUVDUHJLYHQRQSDJHV the Committee.
UHJDUGWRUHYLVLRQRIVDODULHVRI%DQNVWDƩDQG
20 to 25 of the Annual Report.
RIDQ\PDMRURUJDQLVDWLRQDOFKDQJHVQHHGHG
for the Bank’s purpose.
PERFORMANCE EVALUATION OF THE
MEETINGS
COMMITTEE
During the year under review, nine (09) meetings PERFORMANCE ƶHDQQXDOHYDOXDWLRQRIWKH&RPPLWWHHZDV
ZHUHKHOGƶHDWWHQGDQFHRIWKHPHPEHUV conducted by the members of the Committee
ƶH&RPPLWWHHGLVFKDUJHGLWVUHVSRQVLELOLWLHV
at these meetings is given on page 141 of this during the year and concluded that its performance
in compliance with its TOR, for which purpose
5HSRUWƶH0DQDJLQJ'LUHFWRU0'DQGWKH WKH+XPDQ5HVRXUFHVUHODWHG3ROLFLHVWKHVWDƩ ZDVHƩHFWLYH
*URXS&KLHI+XPDQ5HVRXUFH2ƬFHUDVZHOO structure, the training programmes and Disciplinary
DVRWKHUH[HFXWLYHVWDƩDWWHQGHGPHHWLQJVE\ procedures were reviewed and revisions made as On behalf of the Board Human Resources and
invitation, to assist the Committee’s deliberations. DSSURSULDWHƶHSHUIRUPDQFHDSSUDLVDORIWKH0' Remuneration Committee
ƶH&RPSDQ\6HFUHWDU\IXQFWLRQVDVWKH6HFUHWDU\ and Key Management Personnel were completed
to the Committee and in his/her absence his/ after reviewing the targets in compliance with the
her nominee function as a Secretary to the Plan of Action of the Bank.
Committee. DHARA WIJAYATILAKE
Remuneration and salary structures were reviewed
Chairperson - Board Human Resources and
DQGƪQDOLVHG
Remuneration Committee
ƶH&RPPLWWHHNHSWWKHRUJDQLVDWLRQVWUXFWXUH
Colombo, Sri Lanka
under review, and recommended changes that
13th February 2020
188
BOARD NOMINATION
COMMITTEE REPORT GRI 102-24
ƶH%RDUG1RPLQDWLRQ&RPPLWWHHWKH TERMS OF REFERENCE reviews its own performance, constitution

Committee) comprises six (06) Non-Executive ƶHUROHDQGIXQFWLRQVRIWKH&RPPLWWHHDUH and Terms of Reference to ensure that
Directors. regulated by the Banking Act Direction No. LWLVRSHUDWLQJHƩHFWLYHO\DQGLIUHTXLUHG
11 of 2007, the Mandatory Code of Corporate recommends necessary changes.
ƶHFRPSRVLWLRQRIWKH&RPPLWWHHDVDWVW
Governance for Licensed Commercial Banks
December 2019 is: During the year under review, the Committee
issued by the Central Bank of Sri Lanka (CBSL)
has continued to focus on a progressive
and is compliant with the requirements set
Ms Annika Senanayake organisational plan in keeping with the forward
out in the Code of Best Practice on Corporate
Chairperson (IND/NED) and evolutionary momentum of the Sri Lankan
Governance 2017 issued by the Institute of
EDQNLQJLQGXVWU\ƶH&RPPLWWHHKDYLQJ
Chartered Accountants, Sri Lanka.
Prof Malik Ranasinghe considered the skills, knowledge, expertise and
(IND/NED) (w.e.f. 02.05.2019) experience, made the recommendations to the
ƶH&RPPLWWHHXQGHUWRRNWKHIROORZLQJNH\
activities in discharging its responsibilities: Board to appoint Ms Aroshi Nanayakkara,
Mr Sanjiva Senanayake
'U6DQMLYD:HHUDZDUDQDDQG0U'HVKDOGH0HO
(IND/NED)
1. Implemented a procedure to select/ as Independent, Non-Executive Directors of
appoint new directors, CEO and Key the Bank.
(IND/NED) Management Personnel.
REPORTING TO THE BOARD
2. Recommended the re-election of ƶH0LQXWHVRIWKH%RDUG1RPLQDWLRQ
current directors, taking into account the Committee meetings are tabled at Board
(NID/NED)
performance and contribution made by meetings providing all Board members access
the director concerned towards the overall to same.
Mr Deshal de Mel
discharge of the Board’s responsibilities.
(IND/NED) (w.e.f. 26.09.2019)
6HWWKHFULWHULDVXFKDVTXDOLƪFDWLRQV
PROFESSIONAL ADVICE
Mr Channa Palansuriya experience and key attributes required ƶH&RPPLWWHHKDVWKHDXWKRULW\WRVHHN
(NID/NED) (up to 01.04.2019) for eligibility to be considered for external professional advice on matters under
appointment or promotion to the post of its purview.
,1',QGHSHQGHQW'LUHFWRU1,'1RQ,QGHSHQGHQW
CEO and the Key Management Positions.
'LUHFWRUDQG1('1RQ([HFXWLYH'LUHFWRU BOARD NOMINATION COMMITTEE
4. Ensured that directors, CEO and Key
EVALUATION
ZHIZLWKHƩHFWIURP 0DQDJHPHQW3HUVRQQHODUHƪWDQGSURSHU
ƶHDQQXDOHYDOXDWLRQRIWKH&RPPLWWHHZDV
SHUVRQVWRKROGRƬFHDVVSHFLƪHGLQWKH
ƶH0DQDJLQJ'LUHFWRU0'DWWHQGVPHHWLQJV conducted by the members of the Board
FULWHULDVSHFLƪHGXQGHU6WDWXWRU\DQG
by invitation. Nomination Committee during the year and
Regulatory requirements.
FRQFOXGHGWKDWLWVSHUIRUPDQFHZDVHƩHFWLYH
%ULHISURƪOHVRIWKHPHPEHUVDUHJLYHQRQ 5. Considered and recommended from time
SDJHVWRRIWKH$QQXDO5HSRUWƶH to time, the requirements of additional/ On behalf of the Board Nomination Committee
Company Secretary shall be the Secretary of new expertise and the succession
the Committee and in his/her absence his/ arrangements for retiring directors and
her nominee shall act as Secretary to the Key Management Personnel.
Committee.
PERFORMANCE ANNIKA SENANAYAKE
MEETINGS Chairperson - Board Nomination Committee
ƶHPHPEHUVRIWKH&RPPLWWHHZRUNFORVHO\
During 2019 the Committee held seven (07) with the Board and Board HR & Remuneration
Colombo, Sri Lanka
meetings. Attendance by the Committee Committee, in reviewing the structure and skills
13th February 2020
members at each of these meetings is given in needed for a steadfast, strong and successful
the table on page 141 of the Annual Report. organisation. Further, the Committee also
189
BOARD INTEGRATED
RISK MANAGEMENT GRI 102-30
COMMITTEE REPORT
ƶH%RDUG,QWHJUDWHG5LVN0DQDJHPHQW 0DQDJHPHQWUHSUHVHQWDWLYHV 3. To take prompt corrective action to
Committee (the Committee) was established Mrs Achala Wickremaratne PLWLJDWHWKHHƩHFWVRIVSHFLƪFULVNVLQWKH
on 27th March 2008 as a Sub-Committee of the *URXS&KLHI5LVN2ƬFHU case such risks are at levels beyond the
Board of Directors (the Board) in compliance prudent levels decided by the Committee
with the Banking Act Direction No. 11 of Mr Sisira Dabare on the basis of the Bank’s policies,
2007 on Corporate Governance for Licensed *URXS&KLHI&RPSOLDQFH2ƬFHU regulatory and supervisory requirements.
Commercial Banks in Sri Lanka. A review of the
4. To assess all aspects of Risk Management
Integrated Risk Management process of the Mr Ananda Wijitha and Compliance in the Bank including
Bank has been detailed on pages 126 to 136 of
(Appointed as Chief Information Security those of the Business Continuity Plan.
the Annual Report.
2ƬFHUZHI
5. To establish a compliance function
MEMBERS KHDGHGE\DGHGLFDWHG&RPSOLDQFH2ƬFHU
Key Management Personnel (KMPs) supervising
ƶH&RPPLWWHHFRPSULVHVƪYH1RQ to assess the Bank’s compliance with the
Credit, Market, Liquidity, Operational, Strategic
Executive Directors, one (01) Executive Director laws, regulations, regulatory guidelines,
Risks and Anti-Money Laundering also
and three (03) members from the Management internal controls and approved policies on
attended meetings of the Committee, by
as given below. all areas of business operations.
invitation.
6. To recommend for Board approval, all
%RDUGUHSUHVHQWDWLYHV %ULHISURƪOHVRIWKH'LUHFWRUVUHSUHVHQWLQJ policies relating to Risk Management.
Mr Sanjiva Senanayake the Committee are given on pages 20 to 25 of
(Chairman) (IND/NED) 7. To set-up risk appetite/tolerance of the
WKH$QQXDO5HSRUWƶH&RPSDQ\6HFUHWDU\
Bank at enterprise and strategic business
functions as the Secretary to the Committee
Mrs Saumya Amarasekera unit levels.
and in his/her absence his/her nominee
(NID/NED) function as a Secretary to the Committee. 8. To maintain continued awareness of any
FKDQJHVLQWKH%DQNţVULVNSURƪOH
Mr Dilip de S Wijeyeratne MEETINGS
(IND/NED) (w.e.f. 01.06.2019) 9. To ensure that there are clear
ƶH&RPPLWWHHKHOGVL[PHHWLQJV
and independent reporting lines,
GXULQJWKH\HDUƶHDWWHQGDQFHRI
Dr Sanjiva Weerawarana responsibilities for the overall business
the Committee members at each of these
(IND/NED) (w.e.f. 01.06.2019) activities and risk management functions.
meetings is given in the table on page 141 of
the Annual Report. 10. To cultivate a pro-active risk management
Mr Deshal de Mel
culture within the Bank.
(IND/NED) (w.e.f. 26.09.2019) TERMS OF REFERENCE
11. To review periodically, the risk exposures
1. To assess all risks such as credit, market,
Mr Nanda Fernando of the Bank to be in line with the Bank’s
liquidity, operational and strategic
(ED) REMHFWLYHVEXVLQHVVVWUDWHJLHVDQGULVN
risks to the Bank on a monthly basis
appetite.
through appropriate risk indicators and
Mr Deepal Sooriyaarachchi
management information. In case of 12. To review and formulate the strategy
(NID/NED) (up to 04.08.2019)
subsidiary companies, risk management and methodology for allocation of risk/
shall be done both on a Bank basis and economic capital, including Internal
Ms Annika Senanayake
Group basis. Capital Adequacy Assessment Process
(IND/NED) (up to 26.09.2019)
(ICAAP) and recommend same for Board
7RUHYLHZWKHDGHTXDF\DQGHƩHFWLYHQHVV
approval.
1,'1RQ,QGHSHQGHQW'LUHFWRU,1',QGHSHQGHQW of all management level committees
Director, NED - Non-Executive Director and ED - 13. To ensure adequacy of tools, systems
such as Credit Policy and Risk & Portfolio
([HFXWLYH'LUHFWRU and resources for the successful
Review Committee, ALCO (Assets &
/LDELOLW\&RPPLWWHHWRDGGUHVVVSHFLƪF management of risk management and
ZHIZLWKHƩHFWIURP
risks and manage those risks within compliance function within the Bank
quantitative and qualitative risk limits DQGWRUHFRPPHQGWKHƪQDQFLDOEXGJHW
VSHFLƪHGE\WKH&RPPLWWHH for the provision of adequate tools and
systems to support the risk management
functions.
190
14. To review and approve risk related public PERFORMANCE Operational and Strategic Risk of the Bank
disclosures to be made under CBSL E\WKH&RPPLWWHH$FFRUGLQJO\LGHQWLƪHG
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directives. requirements of the proposed Data
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Protection Bill Formulated by the Ministry
15. To engage external and independent
1. Reviewed credit policy and risk of Information and Communication
reviewers for validation of risk
management policies to meet evolving Technology were addressed.
measurement methodologies and outputs
regulatory requirements by further
as and when required.
strengthening the risk-based approach. RISK APPETITE
16. To monitor controls relating to
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“Information Security” and review the clear sector categorisation guidelines areas, namely, Credit Risk, Market Risk and
progress of the “Information Security introduced. 2SHUDWLRQDO5LVNKDVEHHQGHƪQHGDQG
Committee” (ISC) on a quarterly basis. approved by the Board on the recommendation
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was improved and validated with the of the Committee. Regular reports have been
GOVERNANCE
assistance of external consultants. provided to the Committee on the actual
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of Risk at the Bank is set out in the Risk
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Management Report given on pages 126 to REPORTING TO THE BOARD
risk factors recognised for the Bank,
136 of the Annual Report. ƶH0LQXWHVRIWKH&RPPLWWHHPHHWLQJVZHUH
during the year.
tabled at Board meetings, providing access to all
ROLE AND RESPONSIBILITIES ƶH,QWHUQDO&DSLWDO$GHTXDF\$VVHVVPHQW
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Process (ICAAP) was enhanced with the
ƶH&RPPLWWHHUHFHLYHVSHULRGLFUHSRUWV submitted to the Board within a week of the
assistance of external consultants.
on the Bank’s performance against Key Board Integrated Risk Management Committee
Risk Indicators from the Risk Management 6. Developed a dashboard to capture Early meeting.
Department and Key Performance Indicators Warning Signals (EWS) to improve the risk
IURPWKH&RPSOLDQFH'HSDUWPHQWƶHUHSRUWV PRQLWRULQJPHFKDQLVPƶLVZLOOEHƪQH PROFESSIONAL ADVICE
and the relevant background information tuned and improved during the next year.
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have been reviewed in depth and necessary 7. Work commenced on developing a external professional advice on matters under
Risk Mitigation measures have been initiated behavioural scorecard for personal its purview and engaged external experts during
where necessary, in order to maintain the borrowers in order to review their the year as stated above.
Bank’s exposure to Risk within its Risk Appetite UHVSHFWLYHULVNSURƪOHVSHULRGLFDOO\
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regulatory requirements, while facilitating the parameters were improved to be in MANAGEMENT COMMITTEE
achievement of sound business results. line with new initiatives of the Financial EVALUATION
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ƶH&RPPLWWHHLVVXSSRUWHGE\WKH5LVN ƶHGDWDFOHDQVLQJSURMHFWZDV conducted by the members of the Board
Management Department, Compliance strengthened to further improve data Integrated Risk Management Committee
Department and Information Security quality. during the year and was concluded that its
Department of the Bank, headed by the SHUIRUPDQFHZDVHƩHFWLYH
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of the “Information Security Committee”
6HFXULW\2ƬFHUUHVSHFWLYHO\LQGLVFKDUJLQJLWV Management Committee
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established.
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11. Information Security Status reports
participants in the Committee meetings to view SANJIVA SENANAYAKE
submitted by the Information Security
risks unconventionally as well as to undertake Department/IT Department were Chairman - Board Integrated Risk Management
analyses going beyond the requirements of the reviewed and acknowledged. Steps Committee
Regulations. ZHUHWDNHQWRHQKDQFHWKHHƬFLHQF\
of monitoring and to mitigate/avoid Colombo, Sri Lanka
possible risks arising from the IT systems 13th February 2020
in respect of Credit, Market, Liquidity,
191
BOARD RELATED PARTY
TRANSACTIONS REVIEW
COMMITTEE REPORT
ƶH%RDUG5HODWHG3DUW\7UDQVDFWLRQV5HYLHZ ƶH&RPSDQ\6HFUHWDU\IXQFWLRQVDVWKH on Related Party Transactions to the Board
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HVWDEOLVKHGRQWK-XO\FRPSULVHVWKH her absence his/her nominee function as a Financial Statements.
following four (04) Non-Executive Directors. Secretary to the Committee.
REPORTING TO THE BOARD
Mrs Dhara Wijayatilake MEETINGS ƶH0LQXWHVRIWKHPHHWLQJVRIWKH&RPPLWWHH
Chairperson (IND/NED) 'XULQJWKH&RPPLWWHHKHOGƪYH are tabled at Board meetings enabling all
meetings. Attendance by the Committee Board members to have access to same.
Prof Malik Ranasinghe members at each of these meetings is given in
(IND/NED) the table on page 141 of the Annual Report. PROFESSIONAL ADVICE
ƶH&RPPLWWHHZDVDZDUHWKDWLWKDGDXWKRULW\
Mr Sanjiva Senanayake TERMS OF REFERENCE to seek external professional advice, but during
(IND/NED)
ƶH7HUPVRI5HIHUHQFHRIWKH&RPPLWWHHDUH the course of the year under review, such a
in line with the SEC Code and the CSE Rules need did not arise.
Mr Deshal de Mel
and are as follows:
(IND/NED) (w.e.f. 26.09.2019)
BOARD RELATED PARTY TRANSACTIONS
Mr Deepal Sooriyaarachchi 1. Developing and maintaining principles on REVIEW COMMITTEE EVALUATION
(NID/NED) (up to 04.08.2019) dealing with Related Party Transactions ƶHDQQXDOHYDOXDWLRQRIWKH&RPPLWWHHZDV
(RPTs) consistent with the provisions conducted by its members during the year
1,'1RQ,QGHSHQGHQW'LUHFWRU,1',QGHSHQGHQW of the SEC Code and the CSE Rules, for under review and it was concluded that its
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2. Reviewing all proposed Related Party
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with the provisions of the Code of Best Rules.
Practices issued by the Securities & Exchange
3. Ensuring that Procedures/Directives/
Commission of Sri Lanka (the “SEC Code”),
Guidelines are issued to compel all RPTs,
Section 9 of the Listing Rules of the Colombo DHARA WIJAYATILAKE
to be referred to the Committee for review.
Stock Exchange (the “CSE Rules”) and Section Chairperson - Board Related Party Transactions
D.4.1 of the Code of Best Practice on Corporate REVIEW FUNCTION OF THE COMMITTEE Review Committee
Governance issued by the Institute of
Review of the relevant Related Party
Chartered Accountants of Sri Lanka regarding Colombo, Sri Lanka
Transactions by the Committee takes place
the composition of the Committee. Brief 13th February 2020
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Committee has communicated its observations
to 25 of the Annual Report.
192
REALISING OUR VISION OF

VALUE
FINANCIAL INFORMATION
Financial Calendar | 194

Annual Report of the Board of Directors on the Affairs of the Company | 195
Directors’ Interest in Contracts with the Bank | 204
Directors’ Statement on Internal Control over Financial Reporting | 205
Independent Assurance Report to the Board of Directors of Sampath Bank PLC | 207
Managing Director’s and Group Chief Financial Officer’s Responsibility Statement | 208
Statement of Directors’ Responsibility for Financial Reporting | 209
Independent Auditor’s Report to the Shareholders of Sampath Bank PLC | 211
Statement of Profit or Loss | 214
Statement of Comprehensive Income | 215
Statement of Financial Position | 216
Statement of Cash Flows | 218
Statement of Changes in Equity | 220
Notes to the Financial Statements | 222
193
FINANCIAL
CALENDAR
Financial Calendar - 2019
2018 Annual Report and Audited Financial Statements signed on WK)HEUXDU\

33rd Annual General Meeting held on 29th March 2019
5VSHUVKDUH)LQDO&DVK'LYLGHQGIRUGLVWULEXWHGRQ 09th April 2019
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WK$QQXDO*HQHUDO0HHWLQJWREHKHOGRQ 30th March 2020
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Sri Lanka:
Colombo Stock Newspapers (as required by CBSL)

Exchange English Sinhala Tamil
2018 4th Quarter interim results released on WK)HEUXDU\ WK)HEUXDU\ 05th March 2019 05th March 2019
2019 1st Quarter interim results released on WK0D\ UG0D\ WK0D\ WK0D\
2019 2nd Quarter interim results released on 09th August 2019 21st August 2019 26th August 2019 26th August 2019
2019 3rd Quarter interim results released on WK1RYHPEHU VW1RYHPEHU WK1RYHPEHU WK1RYHPEHU
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Sri Lanka:
Colombo Stock Newspapers (as required by CBSL)

Exchange English Sinhala Tamil
WK4XDUWHULQWHULPUHVXOWVWREHUHOHDVHG WK)HEUXDU\ 31st March 2020 31st March 2020 31st March 2020
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ANNUAL REPORT OF THE BOARD OF

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ANNUAL REPORT OF THE
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Prof Malik Ranasinghe IND/NED ,QGHSHQGHQW'LUHFWRUVLQFH'HSXW\&KDLUPDQIURPWR

Chairman since 02.04.2019
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0U6DQMLYD6HQDQD\DNH IND/NED Independent Director since 01.01.2012, Senior Director since 26.01.2012
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0V$QQLND6HQDQD\DNH IND/NED Independent Director since 01.01.2012
Mr Ranil Pathirana IND/NED Director since 01.01.2012, Independent Director since 31.01.2015
Mr Rushanka Silva NID/NED Director since 01.09.2017
0U'LOLSGH6:LMH\HUDWQH IND/NED Director since 13.11.2018, Independent Director since 08.08.2019
0V$URVKL1DQD\DNNDUD IND/NED Director since 30.05.2019, Independent Director since 27.06.2019
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Mr Deshal de Mel IND/NED ,QGHSHQGHQW'LUHFWRUIURPWRDQGUHDSSRLQWHGVLQFH
Mr Nanda Fernando ED Managing Director since 13.09.2016
199
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Mr M A Salgado 0V$QQLND6HQDQD\DNH&KDLUSHUVRQ
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26 LIST OF DIRECTORS OF THE appointment and dates of resignation 0U6DQMLYD6HQDQD\DNH&KDLUPDQ
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26.1 Siyapatha Finance PLC UHVSRQVLELOLW\DQGDFFRXQWDELOLW\IRUWKH Mr Nanda Fernando
0U&KDQQD3DODQVXUL\D&KDLUPDQ management oversight of the Bank, has
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0U56DPDUDQD\DNH Mr Rushanka Silva
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28.7 Board Strategic Planning Committee 28.12 Board Capital Planning Committee As a practice and in terms of Corporate
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29 DIRECTORS’ MEETINGS 31 RELATED PARTY TRANSACTIONS
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28.9 Board Treasury Committee Bank has complied with the requirement
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of the Directors’ Interest in Contracts
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Mr Nanda Fernando
Name of the Director No. of Shares as at 31st No. of Shares as at 31st
28.11 Board IT Committee December 2019 December 2018
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45 CORPORATE GOVERNANCE 46 AUDITORS the meaning of the Code of Professional

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DIRECTORS’ INTEREST IN
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Company Relationship Nature of the Facility Current Balance Balance

Limit Outstanding Outstanding
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December December
2019 2018
Rs 000 Rs 000 Rs 000
Mr Nanda Fernando
Institute of Bankers of Sri Lanka Director Deposits 481 301
Repo 6,200
Access Engineering PLC ,QGHSHQGHQW1RQ([HFXWLYH'LUHFWRU Deposits 18,479 19,634
,QYHVWPHQWLQGHEHQWXUHV 303,707 303,707
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Indirect Facilities 525,000 321,014
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Deposits 9,549 9,065
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6LOYHU$LVOH3YW/WG Director Deposit 1,340
,QJDPH(QWHUWDLQPHQW3YW/WG Director /RDQ UHFHLYDEOHV 676
Deposit 8,132
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Deposits 1,216 38,300
Mr Ranil Pathirana
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6WDU3DFNDJLQJ3YW/WG 1RQ([HFXWLYH'LUHFWRU /RDQ UHFHLYDEOHV 562,700 21,669 27,824
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,QYHVWPHQWLQGHEHQWXUHV 103,074
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+HOD&ORWKLQJ3YW/WG 1RQ([HFXWLYH'LUHFWRU Deposit 4,016 n/a
/RDQ 5HFHLYDEOHV 362,700 317,362 n/a
Mr Deshal de Mel
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DIRECTORS’ STATEMENT ON INTERNAL

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206
INDEPENDENT ASSURANCE
REPORT TO THE BOARD OF
DIRECTORS OF SAMPATH BANK PLC
REPORT ON THE DIRECTOR’S OUR RESPONSIBILITIES AND The procedures performed were limited
STATEMENT ON INTERNAL CONTROL COMPLIANCE WITH SLSAE 3050 primarily to inquiries of bank personnel and
We were engaged by the Board of Directors (REVISED) the existence of documentation on a sample
of Sampath Bank PLC (“Bank”) to provide Our responsibility is to assess whether basis that supported the process adopted by
assurance on the Directors’ Statement on the Statement is both supported by the the Board of Directors.
Internal Control over Financial Reporting documentation prepared by or for directors
SLSAE 3050 (Revised) does not require us
(“Statement”) included in the annual report for and appropriately reflects the process the
to consider whether the Statement covers
the year ended 31 December 2019. directors have adopted in reviewing the design
all risks and controls or to form an opinion
and effectiveness of the internal control of the
MANAGEMENT’S RESPONSIBILITY on the effectiveness of the Bank’s risk and
Bank.
control procedures. SLSAE 3050 (Revised)
Management is responsible for the preparation
We conducted our engagement in accordance also does not require us to consider whether
and presentation of the Statement in
with Sri Lanka Standard on Assurance the processes described to deal with material
accordance with the “Guidance for Directors of
Engagements (SLSAE) 3050 (Revised), internal control aspects of any significant
Banks on the Directors’ Statement on Internal
Assurance Report for Banks on Directors’ problems disclosed in the annual report will, in
Control” issued in compliance with section 3(8)
Statement on Internal Control, issued by the fact, remedy the problems.
(ii)(b) of the Banking Act Direction No. 11 of
2007, by the Institute of Chartered Accountants institute of Charted Accountants of Sri Lanka.
The procedures selected depend on
of Sri Lanka.
This Standard required that we plan and our judgement, having regard to our
perform procedures to obtain limited understanding of the nature of the Bank, the
OUR INDEPENDENCE AND QUALITY
assurance about whether Management event or transaction in respect of which the
CONTROL
has prepared, in all material respects, the Statement has been prepared.
We have complied with the independence and
Statement on Internal Control.
other ethical requirement of the Code of Ethics We believe that the evidence we have obtained
for Professional Accountants issued by the is sufficient and appropriate to provide a basis
For purpose of this engagement, we are not
Institute of Chartered Accountants of Sri Lanka, for our conclusion.
responsible for updating or reissuing any
which is founded on fundamental principles of
reports, nor have we, in the course of this
integrity, objectivity, professional competence
engagement, performed an audit or review of
OUR CONCLUSION
and due care, confidentiality and professional Based on the procedures performed, nothing
the financial information.
behaviour. has come to our attention that causes us
SUMMARY OF WORK PERFORMED to believe that the Statement included in
The firm applies Sri Lanka Standard on
We conducted our engagement to assess the annual report is inconsistent with our
Quality Control 1 and accordingly maintains
whether the Statement is supported by the understanding of the process the Board of
a comprehensive system of quality control
documentation prepared by or for directors; Directors has adopted in the review of the
including documented policies and
and appropriately reflected the process the design and effectiveness of internal control
procedures regarding compliance with ethical
directors have adopted in reviewing the system over financial reporting of the Bank.
requirements, professional standards and
applicable legal and regulatory requirements. of internal control over financial reporting of
the Bank.
Ernst & Young
Chartered Accountants
13 February 2020
Colombo
207
MANAGING DIRECTOR’S AND
GROUP CHIEF FINANCIAL OFFICER’S
RESPONSIBILITY STATEMENT
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requirements of the following: DGRSWWKH*RLQJ&RQFHUQEDVLVLQSUHSDULQJWKH &RPPLWWHHRIWKH%DQNPHHWVSHULRGLFDOO\ZLWK
Financial Statements. the Internal Auditors and the independent
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the Institute of Chartered Accountants of ƶHHVWLPDWHVDQGMXGJPHQWVUHODWLQJWR which these auditors are performing their
Sri Lanka, the Financial Statements were made on a UHVSRQVLELOLWLHVDQGWRGLVFXVVLVVXHVUHODWLQJ
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• Sri Lanka Accounting and Auditing of transactions and that the Bank’s state of Internal Auditors have full and free access to
Standards Act No. 15 of 1995, DƩDLUVLVUHDVRQDEO\SUHVHQWHG7RHQVXUH WKHPHPEHUVRIWKH%RDUG$XGLW&RPPLWWHH
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• Banking Act No. 30 of 1988 and
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amendments thereto and Directions,
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Determinations, Orders and Guidelines
for safeguarding assets, preventing and
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of the Banking Act Direction No. 11 of 2007 on
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Central Bank of Sri Lanka, which are also in
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compliance with the disclosure requirements
2019 and that the Bank’s Internal Controls than those disclosed in Note 45.5 to
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our knowledge, the Financial Statements give AJANTHA DE VAS GUNASEKARA
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208
STATEMENT OF DIRECTORS’ RESPONSIBILITY

FOR FINANCIAL REPORTING
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is set out in the Report of the Auditors given on preparing the Financial Statements given on
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in accordance with Sri Lanka Accounting SROLFLHVKDYHEHHQVHOHFWHGDQGDSSOLHGEDVHG
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comprise of the Statement of Financial LQIRUPDWLRQUHTXLUHGE\WKH&RPSDQLHV their regular meetings and also through the
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prepared and presented in this Annual IDFHGE\WKH%DQNWKURXJKRXWWKH\HDUDQGLV
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the Financial Statements of the Bank and the 6WDWHPHQWVFRPSO\ZLWKWKHSUHVFULEHG LQFRPSOLDQFHZLWK6HFWLRQLLERI
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with the requirements of the Companies Act. Financial Statements of Licensed Commercial Commercial Banks, the Directors have
209
STATEMENT OF DIRECTORS’
RESPONSIBILITY FOR FINANCIAL
REPORTING
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the Group’s Internal Controls Over Financial functioning of these controls, resulting in
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provided on pages 205 & 206 and pages 195 future.
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page 207 of this Annual Report.
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Young.
Messrs Ernst & Young, Chartered Accountants,

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data, minutes of the Shareholders’ Meetings,
Directors’ Meetings, Board Audit Committee
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pages 211 to 213.
COMPLIANCE REPORT
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the Bank and the Group and all other known
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the Bank and the Group as at reporting date
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Financial Statements covering contingent
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on their assessment, the accounting controls
are adequate and nothing has come to their
210
INDEPENDENT AUDITOR’S REPORT

TO THE SHAREHOLDERS OF
SAMPATH BANK PLC
REPORT ON THE AUDIT OF THE BASIS FOR OPINION whole, and in forming our opinion thereon,
FINANCIAL STATEMENTS We conducted our audit in accordance with and we do not provide a separate opinion
OPINION Sri Lanka Auditing Standards ("SLAuSs"). on these matters. For each matter below, our
Our responsibilities under those standards description of how our audit addressed the
We have audited the financial statements
are further described in the Auditor’s matter is provided in that context.
of Sampath Bank PLC (the "Bank") and the
consolidated financial statements of the responsibilities for the audit of the financial
We have fulfilled the responsibilities
Bank and its subsidiaries (the "Group"), which statements section of our report. We are
described in the Auditor’s responsibilities
comprise the statement of financial position independent of the Group in accordance with
for the audit of the financial statements
as at 31 December 2019, and the statement of the Code of Ethics issued by CA Sri Lanka
section of our report, including in relation
profit or loss, the statement of comprehensive ("Code of Ethics") and we have fulfilled our
to these matters. Accordingly, our audit
income, statement of changes in equity and other ethical responsibilities in accordance
included the performance of procedures
statement of cash flows for the year then with the Code of Ethics. We believe that the
designed to respond to our assessment of
ended, and notes to the financial statements, audit evidence we have obtained is sufficient
the risks of material misstatement of the
including a summary of significant accounting and appropriate to provide a basis for our
financial statements. The results of our
policies. opinion.
audit procedures, including the procedures
KEY AUDIT MATTERS performed to address the matters below,
In our opinion, the accompanying financial
provide the basis for our audit opinion on the
statements of the Bank and the Group gives a Key audit matters are those matters that, in
accompanying financial statements.
true and fair view of the financial position of our professional judgment, were of most
the Bank and the Group as at 31 December significance in the audit of the financial
2019, and of their financial performance statements of the current period. These
and cash flows for the year then ended matters were addressed in the context of
in accordance with Sri Lanka Accounting the audit of the financial statements as a
Standards.
Key audit matter How our audit addressed the key audit matter
Impairment allowance for Loans and To assess the reasonableness of the impairment allowance, our audit procedures (among others)
Advances included the following:
Our audit considered impairment allowance • We evaluated design, implementation and operating effectiveness of controls where relevant
for loans and advances as a key audit matter.
over estimation of impairment of loans and advances, which included assessing the level of
The materiality of the reported amounts for
oversight, review and approval of impairment policies by the Board Audit Committees and
loans and advances together with impairment
management.
allowance thereof, the subjectivity associated
with management’s impairment estimation • We test-checked the underlying calculations and data related to impairment allowance.
and involvement of complex manual
calculations underpinned our basis for
considering it as a Key Audit Matter.
211
INDEPENDENT AUDITOR’S REPORT
TO THE SHAREHOLDERS OF
SAMPATH BANK PLC
Key audit matter How our audit addressed the key audit matter
As at 31 December 2019, 72% of total assets • In addition to the above, following focused procedures were performed:
of the Group consisted of loans and advances
amounting to LKR 719,046 Million (Note 25), For loans and advances individually assessed for impairment:
net of impairment allowance of LKR 32,031
• We assessed the main criteria used by the management for determining whether an
Million (Note 25.2).
impairment event had occurred, including the management estimation of impairment of
Significant estimates and assumptions used loans and advances in industries with elevated risk of credit loss;
by the management in such calculations, its
• Where impairment indicators existed, we assessed the reasonableness of management’s
sensitivities and the bases for impairment
estimated recoveries from future cash flows and collateral realisation , by comparing the
allowance are disclosed in Notes 4.4.6 and
50.2.1 (c) to 50.2.1 (e). actual recoveries against previously estimated amounts and involving where relevant our
internal specialists to determine the reasonableness of the value of the collateral held.
For loans and advances collectively assessed for impairment:
• We assessed the completeness of the underlying information in loans and advances used
in the impairment calculations by agreeing details to the Group’s source documents and
information in IT systems as well as re-performing the calculation of impairment allowance;
• We also considered reasonableness of macro-economic and other factors used by

management in their judgemental overlays for various types of loan portfolios, by comparing
them with publicly available data and their information sources.
• We assessed the adequacy of the related financial statement disclosures as set out in Note 25.
Bank’s financial reporting process and Our audit procedures included the following, amongst others
related IT systems and Controls
• We involved our internal specialized resources to understand and evaluate design and
Bank uses multiple and complex IT systems operating effectiveness of selected automated, IT dependent manual controls as implemented
in its operations. As a result, preparation and
by management over the process of generating financial statements and significant disclosures.
presentation of financial statements inclusive
of key disclosures are heavily dependent on • Test-checking of the system report generation functionalities that were deemed key to financial
various information system outputs. In order statement disclosures; source data with those of the related systems; and calculations and
to rely on the output of such system for the
categorizations performed by management to ensure accuracy and reasonability of functions
purpose of the audit, ensuring the appropriate
and procedures respectively.
design and operating effectiveness of financial
reporting related IT controls is critical. • Where we considered necessary, performing additional substantive audit procedures on
specific account reconciliations that supports significant financial statements disclosures.
The preparation and presentation of financial
statements and disclosures based on manual
or IT dependent controls over the said process
was considered by us as an area of significant
attention. In addition, as our audit approach
was based on a high degree of reliance on
financial reporting related IT controls, a
significant proportion of our audit involved
procedures in this area, and accordingly we
considered this to be a key audit matter.
OTHER INFORMATION INCLUDED IN Our opinion on the financial statements does inconsistent with the financial statements
THE 2019 ANNUAL REPORT not cover the other information and we do or our knowledge obtained in the audit or
not express any form of assurance conclusion otherwise appears to be materially misstated.
Other information consists of the information
thereon. If, based on the work we have performed, we
included in the Annual Report, other than the
conclude that there is a material misstatement
financial statements and our auditor’s report
In connection with our audit of the financial of this other information, we are required to
thereon. Management is responsible for the
statements, our responsibility is to read the report that fact. We have nothing to report in
other information.
other information and, in doing so, consider this regard.
whether the other information is materially
212
RESPONSIBILITIES OF MANAGEMENT • Identify and assess the risks of material opinion on the consolidated financial
AND THOSE CHARGED WITH misstatement of the financial statements, statements. We are responsible for the
whether due to fraud or error, design and direction, supervision and performance
GOVERNANCE FOR THE FINANCIAL
perform audit procedures responsive to of the group audit. We remain solely
STATEMENTS
those risks, and obtain audit evidence responsible for our audit opinion.
Management is responsible for the preparation that is sufficient and appropriate to
of financial statements that give a true and fair We communicate with those charged with
provide a basis for our opinion. The risk
view in accordance with Sri Lanka Accounting governance regarding, among other matters,
of not detecting a material misstatement
Standards, and for such internal control as the planned scope and timing of the audit
resulting from fraud is higher than for one
management determines is necessary to and significant audit findings, including any
resulting from error, as fraud may involve
enable the preparation of financial statements significant deficiencies in internal control that
collusion, forgery, intentional omissions,
that are free from material misstatement, we identify during our audit.
misrepresentations, or the override of
whether due to fraud or error. internal control. We also provide those charged with
governance with a statement that we have
In preparing the financial statements, • Obtain an understanding of internal control
complied with ethical requirements in
management is responsible for assessing the relevant to the audit in order to design audit
accordance with the Code of Ethics regarding
Group’s ability to continue as a going concern, procedures that are appropriate in the
independence, and to communicate with
disclosing, as applicable, matters related to circumstances, but not for the purpose of
them all relationships and other matters that
going concern and using the going concern expressing an opinion on the effectiveness
may reasonably be thought to bear on our
basis of accounting unless management either of the internal controls of the Bank and the
independence, and where applicable, related
intends to liquidate the Group or to cease Group.
safeguards.
operations, or has no realistic alternative but • Evaluate the appropriateness of accounting
to do so. From the matters communicated with those
policies used and the reasonableness
charged with governance, we determine those
of accounting estimates and related
Those charged with governance are matters that were of most significance in the
disclosures made by management.
responsible for overseeing the Bank’s and the audit of the financial statements of the current
Group’s financial reporting process. • Conclude on the appropriateness of period and are therefore the key audit matters.
management’s use of the going concern We describe these matters in our auditor’s
basis of accounting and, based on the report unless law or regulation precludes
AUDITOR’S RESPONSIBILITIES FOR audit evidence obtained, whether a public disclosure about the matter or when, in
THE AUDIT OF THE FINANCIAL material uncertainty exists related to events extremely rare circumstances, we determine
STATEMENTS or conditions that may cast significant that a matter should not be communicated in
Our objectives are to obtain reasonable doubt on the Group’s ability to continue our report because the adverse consequences
assurance about whether the financial as a going concern. If we conclude that of doing so would reasonably be expected to
statements as a whole are free from material a material uncertainty exists, we are outweigh the public interest benefits of such
misstatement, whether due to fraud or error, required to draw attention in our auditor’s communication.
and to issue an auditor’s report that includes report to the related disclosures in the
financial statements or, if such disclosures REPORT ON OTHER LEGAL AND
our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that are inadequate, to modify our opinion. REGULATORY REQUIREMENTS
an audit conducted in accordance with SLAuSs Our conclusions are based on the audit As required by section 163 (2) of the
will always detect a material misstatement evidence obtained up to the date of our Companies Act No. 07 of 2007, we have
when it exists. Misstatements can arise from auditor’s report. However, future events or obtained all the information and explanations
fraud or error and are considered material conditions may cause the Group to cease to that were required for the audit and, as far
if, individually or in the aggregate, they could continue as a going concern. as appears from our examination, proper
reasonably be expected to influence the accounting records have been kept by the
• Evaluate the overall presentation, structure
economic decisions of users taken on the basis Bank.
and content of the financial statements,
of these financial statements. including the disclosures, and whether
the financial statements represent the CA Sri Lanka membership number of the
As part of an audit in accordance with SLAuSs, underlying transactions and events in a engagement partner responsible for signing
we exercise professional judgment and manner that achieves fair presentation. this independent auditor’s report is 2199.
maintain professional skepticism throughout
the audit. We also: • Obtain sufficient appropriate audit
evidence regarding the financial
information of the entities or business 13 February 2020
activities within the Group to express an
Colombo
213
STATEMENT OF
PROFIT OR LOSS
Bank Group
For the year ended 31st December Note 2019 2018 Change 2019 2018 Change
Rs 000 Rs 000 % Rs 000 Rs 000 %
Gross income 6 118,854,549 115,310,251 3.1 125,920,522 121,883,835 3.3
Interest income 103,566,877 97,934,195 5.8 109,855,396 103,832,591 5.8

/HVV,QWHUHVWH[SHQVH 61,991,672 59,880,491 3.5 65,091,626 62,960,387 3.4
Net interest income 7 41,575,205 38,053,704 9.3 44,763,770 40,872,204 9.5
Fee & commission income 11,719,108 11,605,802 1.0 12,076,208 11,918,205 1.3
/HVV)HH FRPPLVVLRQH[SHQVH 1,686,195 1,686,995 1,687,526 1,690,598
Net fee & commission income 8 10,032,913 9,918,807 1.2 10,388,682 10,227,607 1.6
1HWJDLQORVVIURPWUDGLQJ 9 2,205,878 194.6 2,205,878 194.6

1HWJDLQRQGHUHFRJQLWLRQRIƪQDQFLDODVVHWV 10 113,670 74,378 52.8 113,670 74,378 52.8
Net other operating income 11 1,249,016 8,028,400 1,669,370 8,391,185
Total operating income 55,176,682 53,742,765 2.7 59,141,370 57,232,850 3.3
Less: Impairment charge 12 12,573,025 11,222,809 12.0 13,750,577 12,138,710 13.3

Net operating income 42,603,657 42,519,956 0.2 45,390,793 45,094,140 0.7
Less: Operating expenses

3HUVRQQHOH[SHQVHV 13 9,718,692 8,836,372 10.0 10,584,800 9,674,521 9.4
'HSUHFLDWLRQ DPRUWLVDWLRQH[SHQVHV 14 2,434,058 1,099,898 121.3 2,525,505 1,450,373 74.1
2WKHURSHUDWLQJH[SHQVHV 15 8,213,018 9,370,646 8,790,259 9,699,075
Total operating expenses 20,365,768 19,306,916 5.5 21,900,564 20,823,969 5.2
2SHUDWLQJSURƪWEHIRUHWD[HVRQƪQDQFLDO
services 22,237,889 23,213,040 23,490,229 24,270,171
/HVV7D[HVRQƪQDQFLDOVHUYLFHV
9DOXHDGGHGWD[ 4,042,368 3,811,809 6.0 4,280,529 4,037,464 6.0
1DWLRQEXLOGLQJWD[ 493,352 527,251 527,494 559,264
'HEWUHSD\PHQWOHY\ 2,203,939 523,981 320.6 2,343,821 552,078 324.5
3URƪWEHIRUHLQFRPHWD[ 15,498,230 18,349,999 16,338,385 19,121,365
/HVV,QFRPHWD[H[SHQVH 16 4,347,343 6,207,182 4,670,195 6,515,496

3URƪWIRUWKH\HDU 11,150,887 12,142,817 11,668,190 12,605,869
Attributable to:
(TXLW\KROGHUVRIWKH%DQN 11,150,887 12,142,817 11,668,190 12,605,869
1RQFRQWUROOLQJLQWHUHVW
11,150,887 12,142,817 11,668,190 12,605,869
(DUQLQJVSHUVKDUH%DVLF'LOXWHG5V 17 32.84 43.18 34.36 44.83
Dividend per share 18

'LYLGHQGSHUVKDUH*URVV5V 11.75 * 16.25
'LYLGHQGSHUVKDUH1HW5V 11.75 * 13.99
&DOFXODWHGEDVHGRQSURSRVHGGLYLGHQGZKLFKLVWREHDSSURYHGDWWKH$QQXDO*HQHUDO0HHWLQJ
ƶH1RWHVWRWKH)LQDQFLDO6WDWHPHQWVIURPSDJHVWRIRUPDQLQWHJUDOSDUWRIWKHVH)LQDQFLDO6WDWHPHQWV
214
STATEMENT OF
COMPREHENSIVE INCOME
Bank Group
For the year ended 31st December 2019 2018 Change 2019 2018 Change
Rs 000 Rs 000 % Rs 000 Rs 000 %
3URƪWIRUWKH\HDU 11,150,887 12,142,817 11,668,190 12,605,869
Other comprehensive income

,WHPVWKDWZLOOEHUHFODVVLƪHGWRSURƪWRUORVV
'HEWLQVWUXPHQWVDWIDLUYDOXHWKURXJKRWKHU
comprehensive income:
*DLQORVVDULVLQJRQUHPHDVXUHPHQW 87,713 179.9 87,713 179.9
5HFODVVLƪFDWLRQWRSURƪWRUORVV
'HIHUUHGWD[HƩHFWRQWKHDERYH 11,358 11,358
1HWRWKHUFRPSUHKHQVLYHLQFRPHWREHUHFODVVLƪHGWR
SURƪWRUORVV 51,027 148.5 51,027 148.5
,WHPVWKDWZLOOQRWEHUHFODVVLƪHGWRSURƪWRUORVV
(TXLW\LQVWUXPHQWVDWIDLUYDOXHWKURXJKRWKHU
comprehensive income:
/RVVDULVLQJRQUHPHDVXUHPHQW 24.7 24.7
([FKDQJHGLƩHUHQFHLQWUDQVODWLRQ 162,656 162,656
'HIHUUHGWD[HƩHFWRQWKHDERYH 157,078 133.9 157,078 133.9
60.9 60.9
$FWXDULDOORVVRQGHƪQHGEHQHƪWSODQV

'HIHUUHGWD[HƩHFWRQWKHDERYH 409,588 14,403 2,743.8 414,447 13,582 2,951.4

6XUSOXVIURPUHYDOXDWLRQRISURSHUW\SODQW HTXLSPHQW 811,874 100.0 1,207,274 100.0

'HIHUUHGWD[HƩHFWRQWKHDERYH
584,549 100.0 869,237 100.0
1HWRWKHUFRPSUHKHQVLYHLQFRPHQRWWREHUHFODVVLƪHG
WRSURƪWRUORVV 18.5 43.8
Other comprehensive income net of tax 30.1 53.2
Total comprehensive income for the year net of tax 10,329,324 10,966,825 11,118,823 11,431,989
Attributable to:
(TXLW\KROGHUVRIWKH%DQN 10,329,324 10,966,825 11,118,823 11,431,989
10,329,324 10,966,825 11,118,823 11,431,989
215
STATEMENT OF
FINANCIAL POSITION
Bank Group
As at 31st December Note 2019 2018 Change 2019 2018 Change
Rs 000 Rs 000 % Rs 000 Rs 000 %
ASSETS
Cash & cash equivalents 20 17,789,176 19,051,955 17,977,598 19,218,254
Balances with Central Bank of Sri Lanka 21 31,028,270 36,557,776 31,028,270 36,557,776
3ODFHPHQWVZLWKEDQNV 22 7,251,305 8,746,926 7,251,305 8,746,926
Reverse repurchase agreements 500,124 2,304,392 2,258,852 2.0
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 23 862,754 1,171,037 862,754 1,171,037
)LQDQFLDODVVHWVUHFRJQLVHGWKURXJKSURƪWRU
ORVVPHDVXUHGDWIDLUYDOXH 24 11,130,230 27,720,246 11,130,230 27,720,246
Financial assets at amortised cost
ORDQV DGYDQFHV 25 689,377,504 650,013,638 6.1 719,046,634 677,538,424 6.1
GHEW RWKHULQVWUXPHQWV 26 156,293,495 121,105,392 29.1 156,308,796 121,109,711 29.1
)LQDQFLDODVVHWVIDLUYDOXHWKURXJKRWKHU
comprehensive income 27 17,331,724 27,517,305 17,331,780 27,517,361
,QYHVWPHQWLQVXEVLGLDULHV 28 2,394,701 2,320,429 3.2
3URSHUW\SODQW HTXLSPHQW 29 8,466,366 7,917,993 6.9 15,702,051 13,601,798 15.4
,QWDQJLEOHDVVHWV 30 995,137 1,137,422 1,055,341 1,225,519
5LJKWRIXVHDVVHWV 31 4,059,219 100.0 3,208,266 100.0
&XUUHQWWD[UHFHLYDEOHV 39 46,246 23,360 98.0
'HIHUUHGWD[DVVHWV 32 3,737,512 989,343 277.8 3,738,064 989,416 277.8
Other assets 33 11,633,105 9,475,345 22.8 12,331,379 10,106,537 22.0
Total Assets 962,350,498 914,224,931 5.3 999,323,106 947,785,217 5.4
LIABILITIES
'XHWREDQNV 34 1,511,665 8,901,463 1,567,974 8,964,857
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 23 604,069 2,952,319 604,069 2,952,319
Securities sold under repurchase agreements 16,398,511 13,732,205 19.4 16,384,511 13,709,472 19.5
)LQDQFLDOOLDELOLWLHVDWDPRUWLVHGFRVW
GXHWRGHSRVLWRUV 35 717,250,492 690,378,552 3.9 730,189,642 699,661,040 4.4
GXHWRRWKHUERUURZHUV 36 55,661,729 53,335,830 4.4 67,311,166 65,101,034 3.4
GXHWRGHEWVHFXULWLHVKROGHUV 37 37,642,049 36,612,576 2.8 41,371,586 41,272,511 0.2
5HWLUHPHQWEHQHƪWREOLJDWLRQ 38 3,651,642 1,885,824 93.6 3,741,781 1,944,080 92.5
'LYLGHQGSD\DEOH 88,898 97,462 88,898 97,462
&XUUHQWWD[OLDELOLWLHV 39 7,427,315 9,540,868 7,835,445 9,682,482
'HIHUUHGWD[OLDELOLWLHV 32 1,405,568 1,536,772
2WKHUOLDELOLWLHV 40 17,108,344 12,398,522 38.0 17,365,839 12,812,534 35.5
Total Liabilities 857,344,714 829,835,621 3.3 887,866,479 857,734,563 3.5
216
Bank Group
As at 31st December Note 2019 2018 Change 2019 2018 Change
Rs 000 Rs 000 % Rs 000 Rs 000 %
EQUITY
Stated capital 41 47,622,493 32,795,952 45.2 47,622,493 32,795,952 45.2
Reserves
6WDWXWRU\UHVHUYH 42 4,040,000 3,470,000 16.4 4,204,000 3,609,000 16.5
Other reserves 43 47,236,649 42,479,716 11.2 50,205,442 45,163,821 11.2
Retained earnings 44 6,106,642 5,643,642 8.2 9,424,692 8,481,881 11.1
7RWDOHTXLW\DWWULEXWDEOHWRHTXLW\KROGHUVRIWKH
Bank 105,005,784 84,389,310 24.4 111,456,627 90,050,654 23.8
Total Equity 105,005,784 84,389,310 24.4 111,456,627 90,050,654 23.8
Total Liabilities & Equity 962,350,498 914,224,931 5.3 999,323,106 947,785,217 5.4
Commitments & contingencies 45 391,416,500 396,011,791 388,639,429 392,231,869

Net asset value per share (Rs) 275.27 300.42 292.19 320.58
,FHUWLI\WKDWWKHVH)LQDQFLDO6WDWHPHQWVDUHSUHVHQWHGLQFRPSOLDQFHZLWKWKHUHTXLUHPHQWVRIWKH&RPSDQLHV$FW1RRI
AJANTHA DE VAS GUNASEKARA

*URXS&KLHI)LQDQFLDO2ƬFHU
ƶH%RDUGRI'LUHFWRUVLVUHVSRQVLEOHIRUWKHVH)LQDQFLDO6WDWHPHQWV
$SSURYHGDQGVLJQHGIRUDQGRQEHKDOIRIWKH%RDUG
PROF MALIK RANASINGHE NANDA FERNANDO SAUMYA AMARASEKERA LASANTHA SENARATNE

Chairman Managing Director 'HSXW\&KDLUSHUVRQ &RPSDQ\6HFUHWDU\
WK)HEUXDU\
&RORPER6UL/DQND
217
STATEMENT OF
CASH FLOWS
Bank Group
For the year ended 31st December Note 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
&DVKƫRZVIURPRSHUDWLQJDFWLYLWLHV
Interest receipts 99,816,346 94,333,041 105,903,621 100,134,619
,QWHUHVWSD\PHQWV
Net commission receipts 10,016,609 9,960,781 10,372,378 10,269,581
&DVKSD\PHQWVWRHPSOR\HHV
7D[HVRQƪQDQFLDOVHUYLFHV
Receipts from other operating activities 1,043,986 7,785,830 1,531,652 8,249,233
&DVKSD\PHQWVWRRWKHURSHUDWLQJDFWLYLWLHV
2SHUDWLQJSURƪWEHIRUHFKDQJHVLQRSHUDWLQJDVVHWV OLDELOLWLHV1RWH$ 28,135,648 32,238,763 31,473,344 33,949,304
,QFUHDVHGHFUHDVHLQRSHUDWLQJDVVHWV
Balances with Central Bank of Sri Lanka 5,529,506 4,542,588 5,529,506 4,542,588
)LQDQFLDODVVHWVDWDPRUWLVHGFRVWORDQV DGYDQFHV
Other assets

,QFUHDVHGHFUHDVHLQRSHUDWLQJOLDELOLWLHV

'XHWREDQNV 3,189,074 3,189,074
5HSXUFKDVHDJUHHPHQWV 2,630,836 9,347,548 2,639,569 9,479,204
)LQDQFLDOOLDELOLWLHVDWDPRUWLVHGFRVWGXHWRGHSRVLWRUV 25,514,388 63,790,564 28,839,461 64,193,794
)LQDQFLDOOLDELOLWLHVDWDPRUWLVHGFRVWGXHWRRWKHUERUURZHUV 2,404,454 4,427,774 2,302,019 5,666,873
2WKHUOLDELOLWLHV
23,358,064 78,963,487 25,957,607 80,703,423
Net cash generated from operating activities before income tax 6,112,957 23,353,761 8,936,116 23,804,362
,QFRPHWD[SDLG 39.1
1HWFDVKXVHGLQJHQHUDWHGIURPRSHUDWLQJDFWLYLWLHV 19,207,259 19,508,064
&DVKƫRZVIURPLQYHVWLQJDFWLYLWLHV
3XUFKDVHRISURSHUW\SODQW HTXLSPHQW
3URFHHGVIURPGLVSRVDORISURSHUW\SODQW HTXLSPHQW 3,349 5,927 11,174 8,791
1HWFDVKƫRZIURPUHYHUVHUHSXUFKDVHDJUHHPHQWV 500,000 700,000 133,362
1HWFDVKƫRZIURPƪQDQFLDODVVHWV)DLUYDOXHWKURXJK3 / 16,849,090 16,849,090
1HWFDVKƫRZIURPGHEWLQVWUXPHQWVDWDPRUWLVHGFRVW
1HWFDVKƫRZIURPƪQDQFLDODVVHWV)92&, 9,720,054 48,939,843 9,720,054 48,939,843
3XUFKDVHRILQWDQJLEOHDVVHWV
'LYLGHQGUHFHLYHGIURPƪQDQFLDODVVHWV 140,150 80,407 140,391 80,647
'LYLGHQGUHFHLYHGIURPVXEVLGLDULHV 29,241
,QYHVWPHQWLQVXEVLGLDULHV
Net cash used in investing activities
&DVKƫRZVIURPƪQDQFLQJDFWLYLWLHV
3URFHHGVIURPWKHLVVXHRIGHEHQWXUHV 37.1 7,000,000 7,500,000 8,500,000 7,500,000
5HGHPSWLRQRIGHEHQWXUHV 37.1
Rights issue 41 12,104,933 12,532,052 12,104,933 12,532,052
Dividend paid
5HSD\PHQWRISULQFLSDOSRUWLRQRIOHDVHOLDELOLWLHV
1HWFDVKJHQHUDWHGIURPƪQDQFLQJDFWLYLWLHV 9,219,231 14,282,159 8,595,284 14,389,803
1HWFDVKXVHGJHQHUDWHGGXULQJWKH\HDU 1,247,089 1,082,213

Cash & cash equivalents at the beginning of the year 26,624,318 25,377,229 26,727,226 25,645,013
Cash & cash equivalents at the end of the year (Note B) 24,593,341 26,624,318 24,725,465 26,727,226
218
127(ʁ$ʄ5(&21&,/,$7,212)23(5$7,1*352),7%()25(&+$1*(6,123(5$7,1*$66(76$1'/,$%,/,7,(6
Bank Group
Rs 000 Rs 000 Rs 000 Rs 000
3URƪWEHIRUHLQFRPHWD[ 15,498,230 18,349,999 16,338,385 19,121,365

Interest income accrued on impaired loans & advances 7.1
1HWJDLQORVVIURPWUDGLQJ 9
)RUZDUGH[FKDQJHFRQWUDFWUHYDOXDWLRQJDLQORVV 2,174,253 2,174,253
1HWPDUNWRPDUNHWJDLQORVVJRYHUQPHQW HTXLW\VHFXULWLHV 162,585 162,585
Dividend income
1HWJDLQRQGHUHFRJQLWLRQRIƪQDQFLDODVVHWV 10
)LQDQFLDODVVHWV)93/
)LQDQFLDODVVHWV)92&,
'HEW RWKHULQVWUXPHQWV
Net other operating income 11
'LYLGHQGLQFRPHIURPƪQDQFLDODVVHWV)92&,
'LYLGHQGLQFRPHIURPVXEVLGLDULHV
/RVVSURƪWRQGLVSRVDORISURSHUW\SODQW HTXLSPHQW 2,206 1,706
Net impairment charge 12 12,573,025 11,222,809 13,750,577 12,138,710
3HUVRQQHOH[SHQVHV 13
3URYLVLRQIRUJUDWXLW\ SHQVLRQ 696,214 480,246 717,692 497,781
2WKHUQRQFDVKSHUVRQQHOH[SHQVHV 324,712 291,009 333,868 300,165
'HSUHFLDWLRQ DPRUWLVDWLRQH[SHQVHV 14
'HSUHFLDWLRQRISURSHUW\SODQW HTXLSPHQW 779,064 777,000 1,237,155 1,106,881
$PRUWLVDWLRQRILQWDQJLEOHDVVHWV 389,795 322,898 414,287 343,492
$PRUWLVDWLRQRIULJKWRIXVHDVVHWV 1,265,199 874,063
Accrual for interest & commission income
$FFUXDOIRULQWHUHVWH[SHQVH 2,312,170 1,642,156 2,622,019 1,548,521
2WKHUDFFUXDOV QRQFDVKLQFRPHH[SHQVH 1,445,302 696,250 2,467,293 441,826
2SHUDWLQJSURƪWEHIRUHFKDQJHVLQRSHUDWLQJDVVHWVOLDELOLWLHV 28,135,648 32,238,763 31,473,344 33,949,304
127(ʁ%ʄ5(&21&,/,$7,212)&$6+ &$6+(48,9$/(176
Bank Group
As at 31st December Note 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
/RFDOFXUUHQF\LQKDQG 20 12,502,601 11,815,990 12,652,560 11,975,847

)RUHLJQFXUUHQF\LQKDQG 20 2,742,448 3,195,258 2,742,448 3,195,258
%DODQFHVZLWKORFDOEDQNV 20 132,167 135,845 170,641 142,290
%DODQFHVZLWKIRUHLJQEDQNV 20 2,425,699 3,798,032 2,425,699 3,798,032
0RQH\DWFDOODQGVKRUWQRWLFH 20 125,030 125,030
Placements less than three months 22 7,251,916 8,749,121 7,251,916 8,749,121
8QIDYRXUDEOHEDODQFHVZLWKORFDO IRUHLJQ%DQNV 34
Cash & cash equivalents at the end of the year 24,593,341 26,624,318 24,725,465 26,727,226
219
Bank Stated Capital Statutory Other Reserves Retained Total Equity
Reserve Fund Revaluation Available for FVOCI Reserve General Earnings
Reserve Sale Reserve Reserve
(Note 41) (Note 42) (Note 43.1) (Note 43.2) (Note 43.3) (Note 44)
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Balance as at 31st December 2017 16,307,722 2,860,000 2,409,050 2,299,721 33,701,025 6,072,399 63,649,917
Impact of adopting SLFRS 9 2,299,721
Restated balance under SLFRS 9 as at 1st January 2018 16,307,722 2,860,000 2,409,050 2,299,721 33,701,025 3,946,288 61,523,806
Total comprehensive income for the year 2018
3URƪWIRUWKH\HDU 12,142,817 12,142,817
Total comprehensive income for the year 2018 12,105,781 10,966,825
Transactions with equity holders, recognised directly in equity,
contributions by and distributions to equity holders
Rights issue 12,532,052 12,532,052
Final dividend for 2017 : scrip 3,956,178
8QFODLPHGGLYLGHQGDGMXVWPHQWV 8,876 8,876
Total contributions by and distributions to equity holders 16,488,230 8,876 11,898,679
7UDQVIHUWRUHVHUYHVGXULQJWKH\HDU 610,000 5,200,000
Balance as at 31st December 2018 32,795,952 3,470,000 2,409,050 1,160,765 38,909,901 5,643,642 84,389,310
Balance as at 1st January 2019 32,795,952 3,470,000 2,409,050 1,160,765 38,909,901 5,643,642 84,389,310
220
3URƪWIRUWKH\HDU 11,150,887 11,150,887
Other comprehensive income 584,549
Total comprehensive income for the year 2019 584,549 10,097,661 10,329,324

STATEMENT OF
Rights issue 12,104,933 12,104,933

Final dividend for 2018: scrip 2,721,608
Final dividend for 2018: cash
CHANGES IN EQUITY

Total contributions by and distributions to equity holders 14,826,541 25,270 10,287,150
Balance as at 31st December 2019 47,622,493 4,040,000 2,993,599 807,879 43,435,171 6,106,642 105,005,784
Group Stated Statutory Other Reserves Retained Total Equity Non - Total Equity
Capital Reserve Revaluation Available for FVOCI General Earnings Attributable to Controlling
Fund Reserve Sale Reserve Reserve Reserve Equity Holders Interest
(Note 41) (Note 42) (Note 43.1) (Note 43.2) (Note 43.3) (Note 44) of the Bank
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Balance as at 31st December 2017 16,307,722 2,973,000 5,093,155 2,299,721 33,701,025 8,533,827 68,908,450 68,908,450
Impact of adopting SLFRS 9 2,299,721
Restated balance under SLFRS 9 as at 1st January 2018 16,307,722 2,973,000 5,093,155 2,299,721 33,701,025 6,345,363 66,719,986 66,719,986
3URƪWIRUWKH\HDU 12,605,869 12,605,869 12,605,869
Total comprehensive income for the year 2018 12,570,945 11,431,989 11,431,989

Rights issue 12,532,052 12,532,052 12,532,052
Final dividend for 2017 : scrip 3,956,178
8QFODLPHGGLYLGHQGDGMXVWPHQWV 8,876 8,876 8,876
Total contributions by and distributions to equity holders 16,488,230 8,876 11,898,679 11,898,679
Balance as at 31st December 2018 32,795,952 3,609,000 5,093,155 1,160,765 38,909,901 8,481,881 90,050,654 90,050,654
Balance as at 1st January 2019 32,795,952 3,609,000 5,093,155 1,160,765 38,909,901 8,481,881 90,050,654 90,050,654
221
3URƪWIRUWKH\HDU 11,668,190 11,668,190 11,668,190

Total comprehensive income for the year 2019 869,237 10,602,472 11,118,823 11,118,823
Rights issue 12,104,933 12,104,933 12,104,933

Final dividend for 2018: scrip 2,721,608
Final dividend for 2018: cash
Risk & Governance
8QFODLPHGGLYLGHQGDGMXVWPHQWV 25,270 25,270 25,270

Total contributions by and distributions to equity holders 14,826,541 25,270 10,287,150 10,287,150
Balance as at 31st December 2019 47,622,493 4,204,000 5,962,392 807,879 43,435,171 9,424,692 111,456,627 111,456,627
NOTES TO THE
FINANCIAL STATEMENTS
1. REPORTING ENTITY 1.3 Principal Activities and Nature of 2.2 Responsibility for Financial
1.1 General Operations Statements
6DPSDWK%DQN3/&
ƶH%DQN
LV 1.3.1 Bank ƶH%RDUGRI'LUHFWRUVLVUHVSRQVLEOH
DGRPLFLOHGSXEOLFOLPLWHGOLDELOLW\ ƶH%DQNSURYLGHVDFRPSUHKHQVLYH for the Financial Statements of
FRPSDQ\LQFRUSRUDWHGLQ6UL/DQND UDQJHRIƪQDQFLDOVHUYLFHV the Group and the Bank as per Sri
on 10th March 1986 under the encompassing accepting deposits, Lanka Accounting Standards and the
Companies Act No. 17 of 1982. FRUSRUDWHDQGUHWDLOEDQNLQJSURMHFW provisions of the Companies Act No. 7
ƪQDQFLQJWUDGHƪQDQFHWUHDVXU\DQG of 2007.
It is a Licensed Commercial Bank investment services, issuing of credit
registered under the Banking Act FDUGVDQGGHELWFDUGVRƩVKRUH 2.3 Approval of Financial Statements by
1RRI%DQNLQJ$FWDQG EDQNLQJUHVLGHQWDQGQRQUHVLGHQW Directors
DPHQGPHQWVWKHUHWRƶH%DQN IRUHLJQFXUUHQF\RSHUDWLRQVHOHFWURQLF ƶH)LQDQFLDO6WDWHPHQWVRIWKH
ZDVUHUHJLVWHUHGZLWKWKH5HJLVWUDU EDQNLQJVHUYLFHVVXFKDVWHOHSKRQH *URXSDVDWDQGIRUWKH\HDUHQGHG
General of Companies as per the EDQNLQJLQWHUQHWEDQNLQJPRELOH VW'HFHPEHUZHUHDXWKRULVHG
requirements of the Companies Act EDQNLQJDQGPRQH\UHPLWWDQFH IRULVVXHE\WKH%RDUGRI'LUHFWRUVLQ
1RRI&RPSDQLHV$FWRQ facilities, pawning, leasing, factoring, accordance with the resolution of the
28th April 2008 under the name of hire purchase, travel related services 'LUHFWRUVRQWK)HEUXDU\
6DPSDWK%DQN3/&ƶHUHJLVWHUHG and dealing in government securities
RƬFHRIWKH%DQNLVORFDWHGDW1R etc. 2.4 Basis of Measurement
6LU-DPHV3HLULV0DZDWKD&RORPER ƶH)LQDQFLDO6WDWHPHQWVRIWKH*URXS
1.3.2 Subsidiaries KDYHEHHQSUHSDUHGRQWKHKLVWRULFDO
ƶHVKDUHVRIWKH%DQNKDYHD 2ZQHUVKLSRIVXEVLGLDULHVDVRIVW FRVWEDVLVH[FHSWIRUWKHIROORZLQJ
SULPDU\OLVWLQJRQWKH&RORPER6WRFN 'HFHPEHUDQGVW'HFHPEHU material items in the Statement of
([FKDQJHƶHVWDƩVWUHQJWKRIWKH 2018 is given in Note 28 to the Financial Position:
%DQNDVDWVW'HFHPEHUZDV )LQDQFLDO6WDWHPHQWVƶHUHZHUHQR
VLJQLƪFDQWFKDQJHVLQWKHQDWXUHRI y 'HULYDWLYHƪQDQFLDOLQVWUXPHQWV
the principal activities of the Group are measured at fair value
1.2 Consolidated Financial Statements GXULQJWKHƪQDQFLDO\HDUXQGHUUHYLHZ 1RWH
ƶH&RQVROLGDWHG)LQDQFLDO
y Financial assets held at fair value
Statements of the Bank as at and for 2. BASIS OF PREPARATION
through other comprehensive
WKH\HDUHQGHGVW'HFHPEHU 2.1 Statement of Compliance LQFRPH)92&,DUHPHDVXUHGDW
FRPSULVHWKH%DQN3DUHQW&RPSDQ\
ƶH&RQVROLGDWHG)LQDQFLDO IDLUYDOXH1RWH
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Statements of the Group and the
WRDVWKH*URXSDQGLQGLYLGXDOO\DV y Financial assets recognised
Separate Financial Statements of the
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Bank, which comprise the Statement
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of Financial Position, Statement
2019 were Sampath Centre Ltd, SC
RI3URƪWRU/RVV6WDWHPHQWRI y /DQGDQGEXLOGLQJVZKLFKDUH
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Comprehensive Income, Statement measured at cost at the time
PLC and Sampath Information
RI&KDQJHVLQ(TXLW\6WDWHPHQWRI RIDFTXLVLWLRQVXEVHTXHQWO\
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Cash Flows and Notes to the Financial measured at revalued amounts,
6WDWHPHQWVKDYHEHHQSUHSDUHG which are the fair values at the
Sampath Bank PLC is the ultimate
and presented in accordance with GDWHRIUHYDOXDWLRQ1RWH
parent of the Group.
Sri Lanka Accounting Standards
y /LDELOLWLHVIRUGHƪQHGEHQHƪW
ƶH)LQDQFLDO6WDWHPHQWVRIDOO 6/)56VDQG/.$6VODLGGRZQE\WKH
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companies in the Group have a Institute of Chartered Accountants
WKHSUHVHQWYDOXHRIWKHGHƪQHG
FRPPRQƪQDQFLDO\HDUZKLFKHQGVRQ of Sri Lanka and in compliance with
EHQHƪWREOLJDWLRQOHVVWKHIDLU
VW'HFHPEHU the requirements of the Companies
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of the Financial Statements is also in
compliance with the requirements of
the Banking Act No. 30 of 1988 and
amendments thereto.
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2.5 Functional and Presentation Currency 2.8 Comparative Information DQGDVVXPSWLRQVWKDWDƩHFWWKH

ƶH)LQDQFLDO6WDWHPHQWVRIWKH ƶHFRPSDUDWLYHLQIRUPDWLRQLV application of accounting policies
Group are presented in Sri Lankan UHFODVVLƪHGZKHUHYHUQHFHVVDU\ and the reported amounts of assets,
5XSHHV5VZKLFKLVWKHFXUUHQF\RI WRFRQIRUPWRWKHFXUUHQW\HDU
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which Sampath Bank PLC operates. not restated comparative information estimates.
Financial information presented in Sri for 2018 for leases within the scope
/DQNDQ5XSHHVKDVEHHQURXQGHGWR of Sri Lanka Accounting Standards (VWLPDWHVDQGXQGHUO\LQJDVVXPSWLRQV
the nearest thousand unless indicated 6/)56/HDVHVƶHUHIRUHWKH DUHUHYLHZHGRQDQRQJRLQJEDVLV
RWKHUZLVHƶHUHZDVQRFKDQJHLQWKH comparative information for 2018 is Revisions to accounting estimates are
*URXS
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2.6 Presentation of Financial Statements presented for 2019. Reconciliation of
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UHƫHFWVWKHLUUHODWLYHOLTXLGLW\DQG is disclosed in Note 31 together with
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2.10.1 Going Concern
2.9 Statement of Cash Flow ƶH'LUHFWRUVKDYHPDGHDQ

$QDQDO\VLVRQUHFRYHU\RUVHWWOHPHQW
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within 12 months after the reporting ƶH6WDWHPHQWRI&DVK)ORZVKDV
to continue as a going concern and
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2.7 Materiality and Aggregation %RDUGLVQRWDZDUHRIDQ\PDWHULDO
gross cash receipts and gross cash
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continue as a going concern and
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or to cease operations of the Group.
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2.10.2 Impairment Losses on Loans and
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and the net amount reported in the Cash and cash equivalents include
FDVKLQKDQGEDODQFHVZLWKEDQNV ƶHPHDVXUHPHQWRILPSDLUPHQW
6WDWHPHQWRI)LQDQFLDO3RVLWLRQRQO\
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ZKHQWKHUHLVDOHJDOO\HQIRUFHDEOH
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and there is an intention to settle on
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ƶH*URXSUHYLHZVLWVLQGLYLGXDOO\
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223
NOTES TO THE
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is required in the estimation of SD\PHQWVHWF plans and the present value of
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and advances are then assessed ƶHGHWHUPLQDWLRQRIIDLUYDOXHV LIDQ\'XHWRWKHORQJWHUPQDWXUH
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into groups of assets with similar OLDELOLWLHVUHFRUGHGRQWKH6WDWHPHQW VXEMHFWWRVLJQLƪFDQWXQFHUWDLQW\$OO
risk characteristics, to determine the of Financial Position for which assumptions are reviewed at each
H[SHFWHGFUHGLWORVVRQVXFKORDQVDQG WKHUHLVQRREVHUYDEOHPDUNHWSULFH reporting date.
advances. DUHGHWHUPLQHGXVLQJDYDULHW\RI
valuation techniques that include the In determining the appropriate
ƶHH[SHFWHGFUHGLWORVV(&/ XVHRIPDWKHPDWLFDOPRGHOVƶH discount rate, management considers
calculation under SLFRS 9 requires YDOXDWLRQRIƪQDQFLDOLQVWUXPHQWVLV the interest rates of Sri Lanka
PDQDJHPHQWWRPDNHMXGJPHQWVDQG GHVFULEHGLQPRUHGHWDLOLQ1RWH JRYHUQPHQWERQGVZLWKPDWXULWLHV
estimates with regard to the following. FRUUHVSRQGLQJWRWKHH[SHFWHG
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engages independent valuation
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FRQWH[WRIDFWXDOORVVH[SHULHQFHDQG 2.10.6 Taxation IUHHKROGODQGVDQGEXLOGLQJVLQWHUPV
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discussed in detail under Note 4.4.6 to the total provision for current, ƶHGHWDLOVRIIUHHKROGODQGDQG
the Financial Statements. GHIHUUHGDQGRWKHUWD[HVGXHWRWKH EXLOGLQJVLQFOXGLQJPHWKRGVRI
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3.1 SLFRS 16 – Leases
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at contract inception, whether an
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240
6 GROSS INCOME
Bank Group
Rs 000 Rs 000 Rs 000 Rs 000
Interest income 7.1 103,566,877 97,934,195 109,855,396 103,832,591

Fee & commission income 8 11,719,108 11,605,802 12,076,208 11,918,205
1HWJDLQORVVIURPWUDGLQJ 9 2,205,878 2,205,878
1HWJDLQRQGHUHFRJQLWLRQRIƪQDQFLDODVVHWV 10 113,670 74,378 113,670 74,378
Net other operating income 11 1,249,016 8,028,400 1,669,370 8,391,185
118,854,549 115,310,251 125,920,522 121,883,835
7 NET INTEREST INCOME
ACCOUNTING POLICY
Recognition of Interest Income

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DWYDULRXVVWDJHVDQGRWKHUFKDUDFWHULVWLFVRIWKHSURGXFWOLIHF\FOHLQFOXGLQJSUHSD\PHQWVSHQDOW\LQWHUHVWDQGFKDUJHV
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SRVLWLYHRUQHJDWLYHDGMXVWPHQWWRWKHFDUU\LQJDPRXQWRIWKHDVVHWLQWKHVWDWHPHQWRIƪQDQFLDOSRVLWLRQZLWKDQLQFUHDVHRUUHGXFWLRQLQ
LQWHUHVWLQFRPHƶHDGMXVWPHQWLVVXEVHTXHQWO\DPRUWLVHGWKURXJKLQWHUHVWDQGVLPLODULQFRPHLQWKHLQFRPHVWDWHPHQW
:KHQDƪQDQFLDODVVHWEHFRPHVFUHGLWLPSDLUHGDVVHWRXWLQ1RWHDDQGLVWKHUHIRUHUHJDUGHGDVŢ6WDJHţWKH*URXSFDOFXODWHV

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QRORQJHUFUHGLWLPSDLUHGWKH*URXSUHYHUWVWRFDOFXODWLQJLQWHUHVWLQFRPHRQDJURVVEDVLV,QWHUHVWLQFRPHRQDOOWUDGLQJDVVHWVDQG
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7.1 Interest Income
Bank Group
For the year ended 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
3ODFHPHQWVZLWKEDQNV 410,315 201,789 410,315 202,772

)LQDQFLDODVVHWVUHFRJQLVHGWKURXJKSURƪWRUORVVPHDVXUHGDWIDLUYDOXH 1,422,689 2,193,623 1,422,689 2,193,623
Reverse repurchase agreements 114,039 61,413 327,568 194,788
ORDQV DGYDQFHV 85,592,680 83,493,724 91,583,056 89,247,316
GHEW RWKHULQVWUXPHQWV 11,741,559 8,024,919 11,741,963 8,025,602
,QWHUHVWLQFRPHDFFUXHGRQLPSDLUHGORDQV DGYDQFHV1RWH 2,809,924 1,325,572 2,894,134 1,335,335
)LQDQFLDODVVHWVIDLUYDOXHWKURXJKRWKHUFRPSUHKHQVLYHLQFRPH 1,475,671 2,633,155 1,475,671 2,633,155
103,566,877 97,934,195 109,855,396 103,832,591
241
NOTES TO THE
7 NET INTEREST INCOME CONTD.

7.2 Interest Expense
Bank Group
Rs 000 Rs 000 Rs 000 Rs 000
6HFXULWLHVVROGXQGHUUHSXUFKDVHDJUHHPHQWV1RWH 608,660 599,736 606,674 572,252

GXHWRGHSRVLWRUV 52,936,752 52,339,233 54,423,648 53,401,944
GXHWRRWKHUERUURZHUV 3,102,978 2,442,990 4,395,508 4,112,321
GXHWRGHEWVHFXULWLHVKROGHUV 4,722,542 4,325,580 5,296,899 4,873,870
)LQDQFHOHDVHV1RWH 620,740 172,952 368,897
61,991,672 59,880,491 65,091,626 62,960,387
Net interest income 41,575,205 38,053,704 44,763,770 40,872,204
7.3 Net Interest Income from Sri Lanka Government Securities
Bank Group
Rs 000 Rs 000 Rs 000 Rs 000
Interest income 13,634,919 12,009,537 13,848,852 12,143,595

,QWHUHVWH[SHQVH1RWH
Net interest income from government securities 13,026,259 11,409,801 13,242,178 11,571,343
8 NET FEE AND COMMISSION INCOME
ACCOUNTING POLICY
Fee Income Earned from Services that are Provided over a Certain Period of Time
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VHUYLFHIHHVFRPPLVVLRQLQFRPHDQGDVVHWPDQDJHPHQWIHHVHWF/RDQFRPPLWPHQWIHHVIRUORDQVWKDWDUHOLNHO\WREHGUDZQGRZQDQG
RWKHUFUHGLWUHODWHGIHHVDUHGHIHUUHGWRJHWKHUZLWKDQ\LQFUHPHQWDOFRVWVDQGUHFRJQLVHGDVDQDGMXVWPHQWWRWKHHƩHFWLYHLQWHUHVWUDWH
RIWKHORDQ:KHQLWLVXQOLNHO\WKDWDORDQZLOOEHGUDZQGRZQWKHORDQFRPPLWPHQWIHHVDUHUHFRJQLVHGRYHUWKHFRPPLWPHQWSHULRGRQ
DVWUDLJKWOLQHEDVLV
Fee Income from Providing Transaction Services

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Fees or components of fees that are linked to a certain performance are recognised as the related services are performed.
Expenses on Account of Customer Loyalty Program

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DUHJUDQWHGƶHIDLUYDOXHRIWKHFRQVLGHUDWLRQUHFHLYHGLQUHVSHFWRIWKHLQLWLDOVDOHLVDOORFDWHGEHWZHHQWKHDZDUGFUHGLWVDQGWKHRWKHU
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Other Fee and Commission Expense

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242
Bank Group
Rs 000 Rs 000 Rs 000 Rs 000
Fee & commission income 11,719,108 11,605,802 12,076,208 11,918,205

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Net fee & commission income 10,032,913 9,918,807 10,388,682 10,227,607
Comprising:
Loans & advances 1,679,009 1,842,523 1,990,507 2,120,986
&UHGLW GHELWFDUGV 3,308,854 3,040,138 3,308,854 3,040,138
Trade & remittances 1,971,031 2,208,479 1,971,031 2,208,479
Deposits 922,598 975,724 922,598 975,724
Guarantees 580,266 595,530 580,336 595,638
2WKHUEDQNLQJ ƪQDQFLDOVHUYLFHV 1,571,155 1,256,413 1,615,356 1,286,642
Net fee & commission income 10,032,913 9,918,807 10,388,682 10,227,607
1(7*$,1ʁ/266ʄ)52075$',1*
ACCOUNTING POLICY
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DOVRLQFOXGHVIRUHLJQH[FKDQJHGLƩHUHQFHVDULVLQJIURPGHULYDWLYHFRQWUDFWVZKLFKDUHQRWGHVLJQDWHGDVKHGJLQJLQVWUXPHQWV
Bank & Group

Rs 000 Rs 000
)RUZDUGH[FKDQJHFRQWUDFWUHYDOXDWLRQJDLQORVV
,QWHUEDQN 1,933,121
Others 106,846
1HWPDUNWRPDUNHWJDLQORVVJRYHUQPHQWVHFXULWLHV HTXLW\VHFXULWLHV 161,217
Dividend income 4,694 4,314
2,205,878
10 NET GAIN ON DERECOGNITION OF FINANCIAL ASSETS
ACCOUNTING POLICY
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Bank & Group

Rs 000 Rs 000
Recognised at:
IDLUYDOXHWKURXJKSURƪWRUORVV 94,130 63,910
IDLUYDOXHWKURXJKRWKHUFRPSUHKHQVLYHLQFRPH 16,842 6,773
DPRUWLVHGFRVW 2,698 3,695
113,670 74,378
243
NOTES TO THE
11 NET OTHER OPERATING INCOME
Bank Group
Rs 000 Rs 000 Rs 000 Rs 000
([FKDQJHLQFRPH
,QWHUEDQN 202,818 202,818
Others 549,970 8,164,328 549,970 8,166,274
'LYLGHQGLQFRPHIURPƪQDQFLDODVVHWVDW)92&, 139,183 150,058 139,424 150,298
'LYLGHQGLQFRPHIURPVXEVLGLDULHV 68,053 91,990
/RVVSURƪWRQGLVSRVDORISURSHUW\SODQW HTXLSPHQW 522 1,287
Rental & other income 291,198 120,730 778,864 572,554
1,249,016 8,028,400 1,669,370 8,391,185
11.1 ([FKDQJHLQFRPHUHSUHVHQWVERWKUHYDOXDWLRQJDLQORVVRQWKH%DQN

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Bank Group
Rs 000 Rs 000 Rs 000 Rs 000
&DVK FDVKHTXLYDOHQWV1RWH

Stage 1 10,352 10,347
Stage 2
Stage 3
10,352 10,347
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Stage 1
Stage 2
Stage 3

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Stage 1 935,090 508,571 961,567 488,948
Stage 2 3,411,479 633,018 3,427,962 658,926
Stage 3 7,667,983 9,413,501 8,781,281 10,257,962
12,014,552 10,555,090 13,170,810 11,405,836
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Stage 1 87,444 277,128 87,444 277,128
Stage 2
Stage 3 254,784 254,784
342,228 277,128 342,228 277,128
&UHGLWUHODWHGFRPPLWPHQWV FRQWLQJHQFLHV1RWH
Stage 1 117,338 159,588 117,455 159,588
Stage 2 65,906 66,065
Stage 3 49,897 252,086 49,897 252,086
233,141 395,002 233,417 395,002
,QYHVWPHQWLQVXEVLGLDULHV1RWH
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Others 14,791 63,575
12,573,025 11,222,809 13,750,577 12,138,710
244
13 PERSONNEL EXPENSES
ACCOUNTING POLICY
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245
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comprehensive income during the period in which it occurs.
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medical grounds etc.
Employees’ Provident Fund - Bank

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WRZKLFKWKH%DQNDQGHPSOR\HHVFRQWULEXWHDQGUHVSHFWLYHO\RQWKHVDODU\RIHDFKHPSOR\HH(PSOR\HHVZKRDUHPHPEHUVRI
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Unutilised Accumulated Leave

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GHWHUPLQHWKHSUHVHQWYDOXHRIVXFKEHQHƪWVƶHGLVFRXQWUDWHLVWKH\LHOGDWWKHUHSRUWLQJGDWHRQJRYHUQPHQWERQGVWKDWKDYHPDWXULW\
GDWHVDSSUR[LPDWLQJWRWKHWHUPVRIWKH%DQNţVREOLJDWLRQƶHFDOFXODWLRQLVSHUIRUPHGXVLQJWKH3URMHFWHG8QLW&UHGLWPHWKRG1HW
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XQGHUŢ3HUVRQQHOH[SHQVHVţLQWKHSHULRGLQZKLFKWKH\DULVH
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Note 38 to the Financial Statements.
Share Based Payment Transactions

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246
Bank Group
Rs 000 Rs 000 Rs 000 Rs 000
6DODULHV ERQXV 7,584,040 6,988,145 8,278,648 7,665,514

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3URYLVLRQIRUJUDWXLW\ SHQVLRQ 696,214 480,246 717,692 497,781
Others 688,602 678,210 772,379 760,549
9,718,692 8,836,372 10,584,800 9,674,521
14 DEPRECIATION AND AMORTISATION EXPENSES
ACCOUNTING POLICY
Depreciation of Property, Plant and Equipment

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VWUDLJKWOLQHEDVLVRYHUWKHSHULRGVDSSURSULDWHWRWKHHVWLPDWHGXVHIXOOLYHVEDVHGRQWKHSDWWHUQLQZKLFKWKHDVVHWţVIXWXUHHFRQRPLF
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,PSURYHPHQWVWROHDVHKROGSURSHUWLHVDUHGHSUHFLDWHGRYHUWKHVKRUWHURIWKHOHDVHWHUPDQGWKHLUXVHIXOOLYHVXQOHVVLWLVUHDVRQDEO\
FHUWDLQWKDWWKH*URXSZLOOREWDLQRZQHUVKLSE\WKHHQGRIWKHOHDVHWHUP
Freehold lands are not depreciated.
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GHUHFRJQLVHG'HSUHFLDWLRQGRHVQRWFHDVHZKHQWKHDVVHWEHFRPHVLGOHRULVUHWLUHGIURPDFWLYHXVHXQOHVVWKHDVVHWLVIXOO\GHSUHFLDWHG
Depreciation Rate per Annum

(%)
Asset Category 2019 2018
)UHHKROGEXLOGLQJV 2.50 6.67 2.00 6.67

Improvements to leasehold properties 20.00 20.00
&RPSXWHUHTXLSPHQW)UHHKROG 15.00 25.00 15.00 25.00
&RPSXWHUHTXLSPHQW/HDVHKROG 16.67 33.33
Motor vehicles 12.50 20.00 12.50 20.00
2ƬFHHTXLSPHQW 15.00 25.00 15.00 25.00
)L[WXUHV ƪWWLQJV 12.50 20.00 12.50 20.00
247
NOTES TO THE
14 DEPRECIATION AND AMORTISATION EXPENSES CONTD.
Amortisation of Intangible Assets

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DVVHWLVDYDLODEOHIRUXVHRYHUWKHEHVWHVWLPDWHRILWVXVHIXOHFRQRPLFOLIHEDVHGRQDSDWWHUQLQZKLFKWKHDVVHWţVHFRQRPLFEHQHƪWVDUH
FRQVXPHGE\WKH*URXSƶH*URXSDVVXPHVWKDWWKHUHLVQRUHVLGXDOYDOXHIRULWVLQWDQJLEOHDVVHWV
Amortisation Rate per Annum

(%)
Asset Category 2019 2018
Computer software 25.00

Licenses
Amortisation of Right-of-Use Assets

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OLIHRIWKHULJKWRIXVHDVVHWVRUWKHHQGRIWKHOHDVHWHUPƶHHVWLPDWHGXVHIXOOLYHVRIULJKWRIXVHDVVHWVDUHGHWHUPLQHGRQWKHVDPH
EDVLVDVWKRVHRISURSHUW\SODQWDQGHTXLSPHQWDQGDUHLQWKHUDQJHRIWR\HDUV
Changes in Estimates
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'XULQJWKH\HDUHQGHGVW'HFHPEHUWKH*URXSFRQGXFWHGDQRSHUDWLRQDOHƬFLHQF\UHYLHZDQGHVWLPDWHVZHUHUHYLVHG
DFFRUGLQJO\
Bank Group
Rs 000 Rs 000 Rs 000 Rs 000
'HSUHFLDWLRQRISURSHUW\SODQW HTXLSPHQW1RWH 779,064 777,000 1,237,155 1,106,881

$PRUWLVDWLRQRILQWDQJLEOHDVVHWV1RWH 389,795 322,898 414,287 343,492
$PRUWLVDWLRQRIULJKWRIXVHDVVHWV1RWH 1,265,199 874,063
2,434,058 1,099,898 2,525,505 1,450,373
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/HDVHVZKHUHDVSULRUSHULRGDPRXQWKDVQRWEHHQUHVWDWHG
15 OTHER OPERATING EXPENSES
Bank Group
Rs 000 Rs 000 Rs 000 Rs 000
'LUHFWRUV
IHHV H[SHQVHV 82,852 64,398 148,634 110,008
$XGLWRUV
UHPXQHUDWLRQ1RWH 36,087 28,156 41,759 34,861
3URIHVVLRQDO OHJDOH[SHQVHV 148,702 120,395 176,551 150,436
Deposit insurance premium 640,145 606,197 657,536 618,190
Donations 466 3,838 466 4,838
2SHUDWLQJOHDVHH[SHQVHV 89,557 1,198,933 134,417 962,122
2ƬFHDGPLQLVWUDWLRQ HVWDEOLVKPHQWH[SHQVHV 3,578,849 3,448,844 3,773,389 3,675,612
2WKHUH[SHQVHV1RWH 3,636,360 3,899,885 3,857,507 4,143,008
8,213,018 9,370,646 8,790,259 9,699,075
/HDVHVZKHUHDVSULRUSHULRGDPRXQWKDVQRWEHHQUHVWDWHG
248
15.1 Auditors' Remuneration
Bank Group
Rs 000 Rs 000 Rs 000 Rs 000
Audit fees 11,660 10,843 14,824 13,733

$XGLWUHODWHGIHHV H[SHQVHV 7,215 6,723 8,614 8,167
1RQDXGLWH[SHQVHV 17,212 10,590 18,321 12,961
36,087 28,156 41,759 34,861
15.2 2WKHUH[SHQVHVLQFOXGHDGYHUWLVLQJDQGEXVLQHVVSURPRWLRQH[SHQVHVFUHGLWFDUGUHODWHGH[SHQVHVDQGRWKHURYHUKHDGH[SHQVHVLQFXUUHG
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16 INCOME TAX EXPENSE
ACCOUNTING POLICY
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ƪQDQFLDOVWDWHPHQWVRIWKH*URXSWRSURYLGHDGGLWLRQDOGLVFORVXUHVLQWKHƪQDQFLDOVWDWHPHQWV
Current Taxation
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$FFRUGLQJO\SURYLVLRQIRUWD[DWLRQLVEDVHGRQWKHSURƪWIRUWKH\HDUDGMXVWHGIRUWD[DWLRQSXUSRVHVLQDFFRUGDQFHZLWKWKHSURYLVLRQV
RIWKH,QODQG5HYHQXH$FW1RRIDQGWKHDPHQGPHQWVWKHUHWRDWWKHUDWHVVSHFLƪHGLQ1RWH WRWKH)LQDQFLDO
Statements.
Deferred Taxation
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DJDLQVWZKLFKWKHWHPSRUDU\GLƩHUHQFHVFDQEHXWLOLVHG
249
NOTES TO THE
16 INCOME TAX EXPENSE CONTD.
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WD[DEOHSURƪWZLOOEHDYDLODEOHWRDOORZWKHGHIHUUHGWD[DVVHWWREHXWLOLVHG8QUHFRJQLVHGGHIHUUHGWD[DVVHWVDUHUHDVVHVVHGDWHDFK
UHSRUWLQJGDWHDQGDUHUHFRJQLVHGWRWKHH[WHQWWKDWLWKDVEHFRPHSUREDEOHWKDWIXWXUHWD[DEOHSURƪWZLOODOORZWKHGHIHUUHGWD[DVVHWWR
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RIFXUUHQWWD[OLDELOLWLHVUHFHLYDEOHVDQGGHIHUUHGWD[OLDELOLWLHVDVVHWVDUHJLYHQLQ1RWHDQG1RWHWRWKH)LQDQFLDO6WDWHPHQWV
UHVSHFWLYHO\
Bank Group
Rs 000 Rs 000 Rs 000 Rs 000
Current tax expense

&XUUHQWWD[EDVHGRQSURƪWIRUWKH\HDU1RWH 7,578,543 8,425,713 8,138,931 8,600,997
2YHUSURYLVLRQLQUHVSHFWRISUHYLRXV\HDUV1RWH
&XUUHQWWD[H[SHQVH 6,776,015 8,160,047 7,336,403 8,331,175
Deferred tax expense
'HIHUUHGWD[UHYHUVDO1RWH
,QFRPHWD[H[SHQVH1RWH 4,347,343 6,207,182 4,670,195 6,515,496
(ƩHFWLYHWD[UDWH
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Bank Group
% Rs 000 % Rs 000 % Rs 000 % Rs 000
3URƪWEHIRUHWD[ 15,498,230 18,349,999 16,338,385 19,121,365
7D[HƩHFWRQDFFRXQWLQJSURƪW
EHIRUHWD[ 28.0 4,339,504 28.0 5,138,000 28.0 4,574,748 28.0 5,353,982
7D[HƩHFWRQWXUQRYHUOLDEOHIRU
LQFRPHWD[ 6,355 6,652
7D[HƩHFWRQ
'LVDOORZDEOHH[SHQVHV 28.3 4,383,835 22.2 4,088,920 30.0 4,904,616 22.3 4,257,619
7D[GHGXFWLEOHH[SHQVHV
([HPSWLQFRPH
Income from other sources 1,373 1,302
(OLPLQDWLRQRISURƪWOLDEOHIRU
WXUQRYHUEDVHGWD[
7D[ORVVHV
&XUUHQWWD[EDVHGRQSURƪWIRUWKH\HDU
1RWH 48.9 7,578,543 45.9 8,425,713 49.8 8,138,931 45.0 8,600,997
Over provision in respect of previous
\HDUV1RWH
'HIHUUHGWD[UHYHUVDO1RWH
28.1 4,347,343 33.8 6,207,182 28.6 4,670,195 34.1 6,515,496
250
16.1.1 Applicable Income Tax Rates
Company 2019 2018
Sampath Bank PLC

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16.1.2 Income Tax on Sampath Centre Ltd

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17 EARNINGS PER SHARE
ACCOUNTING POLICY
ƶH*URXSSUHVHQWVEDVLFDQGGLOXWHG(DUQLQJVSHU6KDUH(36GDWDIRULWVRUGLQDU\VKDUHV%DVLF(36LVFDOFXODWHGE\GLYLGLQJWKHSURƪWRU

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SHULRG'LOXWHG(36LVGHWHUPLQHGE\DGMXVWLQJERWKWKHSURƪWDWWULEXWDEOHWRWKHRUGLQDU\HTXLW\VKDUHKROGHUVDQGWKHZHLJKWHGDYHUDJH
QXPEHURIRUGLQDU\VKDUHVRXWVWDQGLQJIRUWKHHƩHFWVRIDOOGLOXWLYHSRWHQWLDORUGLQDU\VKDUHVLIDQ\
(DUQLQJVSHU6KDUH%DVLF'LOXWHG
Bank Group
2019 2018 2019 2018
Amount used as the numerator

3URƪWDIWHUWD[IRUWKH\HDUDWWULEXWDEOHWRHTXLW\KROGHUV5V 11,150,887,227 12,142,817,150 11,668,189,861 12,605,868,595
No. of ordinary shares used as the denominator

:HLJKWHGDYHUDJHQXPEHURIRUGLQDU\VKDUHV1RWH 339,541,131 281,206,683 339,541,131 281,206,683
%DVLFGLOXWHGHDUQLQJVSHURUGLQDU\VKDUH5V 32.84 43.18 34.36 44.83
:HLJKWHG$YHUDJH1XPEHURI2UGLQDU\6KDUHVIRU%DVLF'LOXWHG(36
Bank & Group
Outstanding No. of Shares Weighted Average No. of Shares

2019 2018 2019 2018
1XPEHURIVKDUHVLQLVVXHDVDWVW-DQXDU\ 280,902,248 217,222,236 280,902,248 217,222,236

Add:
1XPEHURIVKDUHVLVVXHGGXHWRƪQDOVFULSGLYLGHQG 13,551,804 13,551,804
1XPEHURIVKDUHVLVVXHGXQGHUULJKWVLVVXH 50,128,208 38,298,867
1XPEHURIVKDUHVLVVXHGGXHWRƪQDOVFULSGLYLGHQG 11,548,874 11,548,874 11,548,874
1XPEHURIVKDUHVLVVXHGXQGHUULJKWVLVVXH 89,006,863 47,090,009 584,902
1XPEHURIVKDUHVLQLVVXHZHLJKWHGDYHUDJHQXPEHURI
VKDUHVDVDWVW'HFHPEHU 381,457,985 280,902,248 339,541,131 281,206,683
ƶHUHKDYHEHHQQRWUDQVDFWLRQVLQYROYLQJRUGLQDU\VKDUHVRUSRWHQWLDORUGLQDU\VKDUHVEHWZHHQWKHUHSRUWLQJGDWHDQGWKHGDWHRIWKH
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251
NOTES TO THE
18 DIVIDEND PAID AND PROPOSED
ACCOUNTING POLICY
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dividend in accordance with Companies Act No. 7 of 2007.
2019 2018
Gross Dividend Net Gross Dividend Net
Dividend Tax Dividend Dividend Tax Dividend
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Final dividend paid for the years 2018 & 2017

respectively
2XWRIGLYLGHQGUHFHLYHGIUHHRIWD[ 40,016 40,016 10,933 10,933
2XWRIQRUPDOSURƪW 4,524,645 633,450 3,891,195 4,587,494 642,249 3,945,245
Scrip/cash dividend paid 4,564,661 633,450 3,931,211 4,598,427 642,249 3,956,178
'LYLGHQGSHU2UGLQDU\6KDUH5V 16.25 13.99 17.20 14.80
Final dividend proposed for the years 2019

(Note 18.1) & 2018 respectively
Out of dividend received 13,574 13,574 40,016 40,016
2XWRIQRUPDOSURƪW 4,468,557 4,468,557 4,524,645 633,450 3,891,195
6FULSFDVKGLYLGHQGSD\DEOH 4,482,131 4,482,131 4,564,661 633,450 3,931,211
'LYLGHQGSHU2UGLQDU\6KDUH5V 11.75 11.75 16.25 13.99
Note 18.1
ƶH%RDUGRI'LUHFWRUVRIWKH%DQNKDVUHFRPPHQGHGWKHSD\PHQWRIDƪQDOFDVKGLYLGHQGRI5VSHUVKDUHIRUWKH\HDUHQGHGVW
'HFHPEHUDGLVWULEXWLRQRIDSSUR[LPDWHO\5V0Q
Note 18.2
,QDFFRUGDQFHZLWK6UL/DQND$FFRXQWLQJ6WDQGDUG/.$6(YHQWVDIWHUWKH5HSRUWLQJ3HULRGDERYHSURSRVHGƪQDOGLYLGHQGKDVQRWEHHQ
UHFRJQLVHGDVDOLDELOLW\DVDWWKH\HDUHQG1HFHVVDU\GLVFORVXUHVKDYHEHHQPDGHXQGHU1RWHWRWKH)LQDQFLDO6WDWHPHQWV(YHQWVDIWHU
WKHUHSRUWLQJSHULRGDVUHTXLUHGE\WKHVDLGVWDQGDUG
Note 18.3
$VSHUWKHDQQRXQFHPHQWPDGHE\WKH'HSDUWPHQWRI,QODQG5HYHQXHRQWK)HEUXDU\ZLWKKROGLQJWD[ZLOOQRWEHGHGXFWHGRQ
GLYLGHQGZLWKHƩHFWIURPVW-DQXDU\
252
19 ANALYSIS OF FINANCIAL INSTRUMENTS BY MEASUREMENT BASIS

)LQDQFLDOLQVWUXPHQWVDUHPHDVXUHGRQDQRQJRLQJEDVLVHLWKHUDWIDLUYDOXHRUDWDPRUWLVHGFRVWƶH$FFRXQWLQJ3ROLFLHVGHVFULEHKRZHDFK
FDWHJRU\RIƪQDQFLDOLQVWUXPHQWVLVPHDVXUHGDQGKRZLQFRPHDQGH[SHQVHVLQFOXGLQJIDLUYDOXHJDLQVDQGORVVHVDUHUHFRJQLVHGƶH
IROORZLQJWDEOHDQDO\VHVWKHFDUU\LQJDPRXQWVRIWKHƪQDQFLDOLQVWUXPHQWVE\FDWHJRU\DVGHƪQHGLQ6ULODQND$FFRXQWLQJ6WDQGDUG6/)56
)LQDQFLDO,QVWUXPHQWVXQGHUWKHKHDGLQJVRIWKH6WDWHPHQWRI)LQDQFLDO3RVLWLRQ
19.1 Analysis of Financial Instruments by Measurement Basis - Bank
As at 31st December 2019

Note Fair Value Amortised Fair Value Total
WKURXJK3URƪWRU Cost through Other
Loss Comprehensive
Income
Rs 000 Rs 000 Rs 000 Rs 000
Financial Assets
Cash & cash equivalents 20 17,789,176 17,789,176
Balances with Central Bank of Sri Lanka 21 31,028,270 31,028,270
3ODFHPHQWVZLWKEDQNV 22 7,251,305 7,251,305
Reverse repurchase agreements
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 23 862,754 862,754
)LQDQFLDODVVHWVUHFRJQLVHGWKURXJKSURƪWRUORVV
measured at fair value 24 11,130,230 11,130,230
ORDQV DGYDQFHV 25 689,377,504 689,377,504
GHEW RWKHULQVWUXPHQWV 26 156,293,495 156,293,495
comprehensive income 27 17,331,724 17,331,724
Other assets 7,152,067 7,152,067
Total Financial Assets 11,992,984 908,891,817 17,331,724 938,216,525
Financial Liabilities
'XHWREDQNV 34 1,511,665 1,511,665
Securities sold under repurchase agreements 16,398,511 16,398,511
GXHWRGHSRVLWRUV 35 717,250,492 717,250,492
GXHWRRWKHUERUURZHUV 36 55,661,729 55,661,729
GXHWRGHEWVHFXULWLHVKROGHUV 37 37,642,049 37,642,049
'LYLGHQGSD\DEOH 88,898 88,898
2WKHUOLDELOLWLHV 12,320,390 12,320,390
Total Financial Liabilities 604,069 840,873,734 841,477,803
253
NOTES TO THE
19 ANALYSIS OF FINANCIAL INSTRUMENTS BY MEASUREMENT BASIS CONTD.

19.2 Analysis of Financial Instruments by Measurement Basis - Bank

Loss Comprehensive
Income
Rs 000 Rs 000 Rs 000 Rs 000
Financial Assets
Reverse repurchase agreements 500,124 500,124
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 23 1,171,037 1,171,037
ORDQV DGYDQFHV 25 650,013,638 650,013,638
Other assets 5,434,982 5,434,982
'XHWREDQNV 34 8,901,463 8,901,463
Total Financial Liabilities 2,952,319 811,448,989 814,401,308
254
19.3 Analysis of Financial Instruments by Measurement Basis - Group

Loss Comprehensive
Income
Rs 000 Rs 000 Rs 000 Rs 000
Financial Assets
Reverse repurchase agreements 2,304,392 2,304,392
ORDQV DGYDQFHV 25 719,046,634 719,046,634
Other assets 7,522,839 7,522,839
'XHWREDQNV 34 1,567,974 1,567,974
Total Financial Liabilities 604,069 869,190,096 869,794,165
255
NOTES TO THE
19 ANALYSIS OF FINANCIAL INSTRUMENTS BY MEASUREMENT BASIS CONTD.

19.4 Analysis of Financial Instruments by Measurement Basis - Group

Loss Comprehensive
Income
Rs 000 Rs 000 Rs 000 Rs 000
Financial Assets
ORDQV DGYDQFHV 25 677,538,424 677,538,424
Other assets 5,845,058 5,845,058
'XHWREDQNV 34 8,964,857 8,964,857
Total Financial Liabilities 2,952,319 837,330,351 840,282,670
256
20 CASH AND CASH EQUIVALENTS
ACCOUNTING POLICY
&DVKDQGFDVKHTXLYDOHQWVFRPSULVHFDVKLQKDQGEDODQFHVZLWKEDQNVPRQH\DWFDOODQGVKRUWQRWLFHWKDWDUHVXEMHFWWRDQLQVLJQLƪFDQW
risk of changes in their value. Cash and cash equivalents are carried at amortised cost in the Statement of Financial Position.
)RUWKHSXUSRVHRIWKH6WDWHPHQWRI&DVK)ORZVFDVKDQGFDVKHTXLYDOHQWVFRQVLVWRIFDVKDQGVKRUWWHUPGHSRVLWVDVGHƪQHGDERYH
SODFHPHQWVZLWKEDQNVOHVVWKDQPRQWKV1RWHQHWRIXQIDYRXUDEOHEDODQFHVZLWKORFDO IRUHLJQEDQNV1RWH
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
/RFDOFXUUHQF\LQKDQG 12,502,601 11,815,990 12,652,560 11,975,847

)RUHLJQFXUUHQF\LQKDQG 2,742,448 3,195,258 2,742,448 3,195,258
%DODQFHVZLWKORFDOEDQNV 132,167 135,845 170,641 142,290
%DODQFHVZLWKIRUHLJQEDQNV 2,425,699 3,798,032 2,425,699 3,798,032
0RQH\DWFDOO VKRUWQRWLFH 125,030 125,030
Gross cash & cash equivalents 17,802,915 19,070,155 17,991,348 19,236,457
,PSDLUPHQWIRUH[SHFWHGFUHGLWORVVHV1RWH
Net cash & cash equivalents 17,789,176 19,051,955 17,977,598 19,218,254
20.1 Analysis of Cash and Cash Equivalents based on Exposure to Credit Risk
Bank

Stage 1 Stage 2 Stage 3 Total Total
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
%DODQFHVZLWKORFDOEDQNV 132,167 132,167 135,845

%DODQFHVZLWKIRUHLJQEDQNV 2,425,699 2,425,699 3,798,032
0RQH\DWFDOO VKRUWQRWLFH 125,030
2,557,866 2,557,866 4,058,907
,PSDLUPHQWIRUH[SHFWHGFUHGLWORVVHV
2,544,127 2,544,127 4,040,707
Group

Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
%DODQFHVZLWKORFDOEDQNV 170,641 170,641 142,290

%DODQFHVZLWKIRUHLJQEDQNV 2,425,699 2,425,699 3,798,032
0RQH\DWFDOO VKRUWQRWLFH 125,030
2,596,340 2,596,340 4,065,352
2,582,590 2,582,590 4,047,149
257
NOTES TO THE
20 CASH AND CASH EQUIVALENTS CONTD.

20.2 Impairment for expected credit losses - Cash and Cash Equivalents
Bank Group
2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
Stage 1
%DODQFHDVDWVW-DQXDU\ 18,200 7,848 18,203 7,856
1HWUHYHUVDOFKDUJHIRUWKH\HDU1RWH 10,352 10,347
$PRXQWVZULWWHQRƩGXULQJWKH\HDU
2WKHUDGMXVWPHQWVLQFOXGLQJH[FKDQJHUDWHGLƩHUHQFHV
%DODQFHDVDWVW'HFHPEHU 13,739 18,200 13,750 18,203
Total
1HWUHYHUVDOFKDUJHIRUWKH\HDU1RWH 10,352 10,347
21 BALANCES WITH CENTRAL BANK OF SRI LANKA
ACCOUNTING POLICY
$VUHTXLUHGE\WKHSURYLVLRQVRI6HFWLRQRIWKH0RQHWDU\/DZ$FWDFDVKEDODQFHLVPDLQWDLQHGZLWKWKH&HQWUDO%DQNRI6UL/DQND$V
DWVW'HFHPEHUWKHPLQLPXPFDVKUHVHUYHUHTXLUHPHQWZDVRIWKHUXSHHGHSRVLWOLDELOLWLHVƶHUHLVQRUHVHUYH
UHTXLUHPHQWIRUIRUHLJQFXUUHQF\GHSRVLWOLDELOLWLHVRIWKH'RPHVWLF%DQNLQJ8QLW'%8DQGWKHGHSRVLWOLDELOLWLHVRIWKH)RUHLJQ&XUUHQF\
%DQNLQJ8QLW)&%8
Balances with Central Bank of Sri Lanka are carried at amortised cost in the Statement of Financial Position.
Bank & Group

Rs 000 Rs 000
6WDWXWRU\UHVHUYHUHTXLUHPHQW 31,028,270 36,557,776

31,028,270 36,557,776
22 PLACEMENTS WITH BANKS

Bank & Group

Rs 000 Rs 000
Maturity less than three months

3ODFHPHQWVLQ6UL/DQND 181,364 1,831,347
3ODFHPHQWVRXWVLGH6UL/DQND 7,070,552 6,917,774
*URVVSODFHPHQWVZLWKEDQNV 7,251,916 8,749,121
1HWSODFHPHQWVZLWKEDQNV 7,251,305 8,746,926
258
22.1 Analysis of Placements with Banks based on Exposure to Credit Risk

Bank & Group

Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
3ODFHPHQWVLQ6UL/DQND 181,364 181,364 1,831,347

3ODFHPHQWVRXWVLGH6UL/DQND 7,070,552 7,070,552 6,917,774
7,251,916 7,251,916 8,749,121
7,251,305 7,251,305 8,746,926
22.2 Impairment for Expected Credit Losses - Placements with Banks
Bank Group
2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
Stage 1
1HWUHYHUVDOIRUWKH\HDU1RWH
%DODQFHDVDWVW'HFHPEHU 611 2,195 611 2,195
Total
1HWUHYHUVDOIRUWKH\HDU1RWH
%DODQFHDVDWVW'HFHPEHU 611 2,195 611 2,195
23 DERIVATIVE FINANCIAL INSTRUMENTS
ACCOUNTING POLICY
'HULYDWLYHVDUHƪQDQFLDOLQVWUXPHQWVWKDWGHULYHWKHLUYDOXHLQUHVSRQVHWRFKDQJHVLQLQWHUHVWUDWHVƪQDQFLDOLQVWUXPHQWSULFHV
FRPPRGLW\SULFHVIRUHLJQH[FKDQJHUDWHVHWF'HULYDWLYHVDUHFDWHJRULVHGDVWUDGLQJXQOHVVWKH\DUHGHVLJQDWHGDVKHGJLQJLQVWUXPHQWV
ƶHWDEOHEHORZVKRZVWKHIDLUYDOXHVRIGHULYDWLYHƪQDQFLDOLQVWUXPHQWVRIWKH%DQN*URXSUHFRUGHGDVDVVHWVRUOLDELOLWLHVWRJHWKHUZLWK
WKHLUQRWLRQDODPRXQWVƶHQRWLRQDODPRXQWVLQGLFDWHWKHYROXPHRIWUDQVDFWLRQVRXWVWDQGLQJDWWKH\HDUHQGDQGDUHLQGLFDWLYHRIQHLWKHU
the market risk nor the credit risk.
Bank & Group

Assets Liabilities Notional Assets Liabilities Notional
Amount Amount
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Forward exchange contracts

Sales 15,687 21,766 8,682,734 5,627 441,476 14,930,010
Purchases 4,712 7,730 4,535,733 41,469 6,601 5,810,937
Currency SWAPS
Sales 725,589 51,357 63,074,414 1,465 2,496,753 38,015,333
Purchases 116,766 523,216 39,755,944 1,122,476 7,489 30,077,067
862,754 604,069 116,048,825 1,171,037 2,952,319 88,833,347
259
NOTES TO THE
),1$1&,$/$66(765(&2*1,6('7+528*+352),725/266Ⱦ0($685('$7)$,59$/8(
Bank & Group

Rs 000 Rs 000
*RYHUQPHQWVHFXULWLHVWUHDVXU\ELOOV1RWH 9,039,033 27,647,228

*RYHUQPHQWVHFXULWLHVWUHDVXU\ERQGV1RWH 2,018,920
4XRWHGHTXLW\VHFXULWLHV1RWH 72,277 73,018
11,130,230 27,720,246
24.1 Government Securities - Treasury Bills

Bank & Group

Rs 000 Rs 000
Amortised cost 9,031,504 27,760,459
/RVVJDLQIURPPDUNWRPDUNHWYDOXDWLRQDVDWVW-DQXDU\ 30,117

0RYHPHQWGXULQJWKH\HDU 120,760
*DLQORVVIURPPDUNWRPDUNHWYDOXDWLRQDVDWVW'HFHPEHU 7,529
Market value 9,039,033 27,647,228
24.2 Government Securities - Treasury Bonds

Bank & Group

Rs 000 Rs 000
Amortised cost 1,973,995
*DLQORVVIURPPDUNWRPDUNHWYDOXDWLRQDVDWVW-DQXDU\

*DLQIURPPDUNWRPDUNHWYDOXDWLRQDVDWVW'HFHPEHU 44,925
Market value 2,018,920
260
24.3 Quoted Equity Securities

Bank & Group

No. of Cost of Market No. of Cost of Market
Ordinary Investment Value Ordinary Investment Value
Shares Rs 000 Rs 000 Shares Rs 000 Rs 000
Name of the company

Banks, Finance & Insurance
National Development Bank PLC 679,787 118,110 67,979 644,595 114,383 68,843
118,110 67,979 114,383 68,843
'LYHUVLƪHG+ROGLQJV
9DOOLEHO2QH3/& 245,600 6,140 4,298 245,600 6,140 4,175
6,140 4,298 6,140 4,175
Total 124,250 72,277 120,523 73,018
Loss from mark to market valuation as at 1st

-DQXDU\
0RYHPHQWGXULQJWKH\HDU
Loss from mark to market valuation as at 31st
'HFHPEHU
Market value 72,277 73,018
$QDO\VLVRI)LQDQFLDO$VVHWV5HFRJQLVHGWKURXJK3URƪWRU/RVV0HDVXUHGDW)DLU9DOXH
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
By collateralisation
Pledged as collateral 1,341,243 1,326,371
8QHQFXPEHUHG 11,130,230 26,379,003 11,130,230 26,393,875
Gross total 11,130,230 27,720,246 11,130,230 27,720,246
By currency
Sri Lankan Rupee 11,130,230 27,720,246 11,130,230 27,720,246
2WKHUFXUUHQF\
Gross total 11,130,230 27,720,246 11,130,230 27,720,246
261
NOTES TO THE
25 LOANS AND ADVANCES
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
*URVVORDQV DGYDQFHV1RWH

Stage 1 532,475,516 558,309,531 548,550,945 573,318,568
Stage 2 133,212,160 68,777,656 142,613,843 76,899,579
Stage 3 53,936,018 43,221,296 59,913,117 49,207,515
719,623,694 670,308,483 751,077,905 699,425,662
Stage 1
Stage 2
Stage 3

Net loans & advances 689,377,504 650,013,638 719,046,634 677,538,424
25.1 Analysis of Loans and Advances

25.1.1 By Product
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 % Rs 000 % Rs 000 % Rs 000 %
%LOOVRIH[FKDQJH 2,587,844 0.36 4,501,884 0.67 2,587,844 0.34 4,501,884 0.64

/HDVLQJ1RWH 31,898,575 4.43 23,768,989 3.55 61,738,905 8.22 50,124,837 7.17
+RXVLQJORDQV 44,356,362 6.16 38,000,952 5.67 44,356,362 5.91 38,000,952 5.43
([SRUWORDQV 27,413,937 3.81 24,087,418 3.59 27,413,937 3.65 24,087,418 3.44
Import loans 69,536,981 9.66 79,986,170 11.93 68,334,574 9.10 78,657,321 11.25
5HƪQDQFHORDQV 12,100,433 1.68 11,823,708 1.76 12,100,433 1.61 11,823,708 1.69
Term loans 366,018,701 50.87 322,736,035 48.15 367,489,150 48.92 324,500,862 46.40
+LUHSXUFKDVH 13,217 65,187 0.01 24,328 177,932 0.03
Loans against investment fund
DFFRXQW,)$ 109,523 0.02 203,496 0.03 109,523 0.01 203,496 0.03
Overdraft 94,788,231 13.17 100,472,890 14.99 94,645,220 12.60 100,395,874 14.35
6WDƩORDQV 8,301,356 1.15 7,222,389 1.08 8,486,523 1.13 7,370,093 1.05
Pawning 33,170,643 4.61 24,933,516 3.72 33,170,643 4.43 24,933,516 3.56
Credit cards 16,390,482 2.28 14,403,079 2.15 16,390,482 2.18 14,403,079 2.06
0RQH\PDUNHWORDQV 8,987,078 1.25 13,348,788 1.99 8,987,078 1.20 13,348,788 1.91
Factoring 3,856,292 0.54 4,546,580 0.68 4,857,674 0.65 6,497,089 0.93
Others 94,039 0.01 207,402 0.03 385,229 0.05 398,813 0.06
Gross loans & advances 719,623,694 100.00 670,308,483 100.00 751,077,905 100.00 699,425,662 100.00
262
25.1.2 By Currency
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
Sri Lankan Rupee 627,675,910 581,017,818 659,130,121 610,134,997

United States Dollar 86,364,970 84,106,682 86,364,970 84,106,682
Euro 3,881,152 3,717,801 3,881,152 3,717,801
Great Britain Pounds 1,554,603 1,354,721 1,554,603 1,354,721
Australian Dollar 138,621 99,756 138,621 99,756
Japanese Yen 5,001 6,332 5,001 6,332
Singapore Dollar 5,373 5,373
New Zealand Dollar 3,437 3,437
Gross loans & advances 719,623,694 670,308,483 751,077,905 699,425,662
25.1.3 By Product and Currency
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 % Rs 000 % Rs 000 % Rs 000 %
Local currency
%LOOVRIH[FKDQJH 463,168 0.06 1,542,158 0.23 463,168 0.06 1,542,158 0.22
Leasing 31,898,575 4.43 23,768,989 3.55 61,738,905 8.22 50,124,837 7.17
+RXVLQJORDQV 43,280,931 6.01 36,971,911 5.52 43,280,931 5.76 36,971,911 5.29
([SRUWORDQV 1,738,969 0.24 2,499,757 0.37 1,738,969 0.23 2,499,757 0.36
Import loans 65,293,369 9.07 74,195,127 11.07 64,090,962 8.53 72,866,278 10.41
5HƪQDQFHORDQV 12,100,433 1.68 11,823,708 1.76 12,100,433 1.61 11,823,708 1.69
Term loans 311,781,833 43.33 269,034,708 40.14 313,252,282 41.71 270,799,535 38.71
+LUHSXUFKDVH 13,217 65,187 0.01 24,328 177,932 0.03
Loans against investment fund
DFFRXQW,)$ 109,523 0.02 203,496 0.03 109,523 0.01 203,496 0.03
Overdraft 90,231,915 12.54 96,377,306 14.37 90,088,904 11.99 96,300,290 13.77
6WDƩORDQV 8,301,356 1.15 7,222,389 1.08 8,486,523 1.13 7,370,093 1.05
Pawning 33,170,643 4.61 24,933,516 3.72 33,170,643 4.43 24,933,516 3.56
Credit cards 16,390,482 2.28 14,403,079 2.15 16,390,482 2.18 14,403,079 2.06
0RQH\PDUNHWORDQV 8,987,078 1.25 13,348,788 1.99 8,987,078 1.20 13,348,788 1.91
Factoring 3,856,292 0.54 4,546,580 0.68 4,857,674 0.65 6,497,089 0.93
Others 58,126 0.01 81,119 0.01 349,316 0.05 272,530 0.04
6XEWRWDO 627,675,910 87.22 581,017,818 86.68 659,130,121 87.76 610,134,997 87.23
Foreign currency
%LOOVRIH[FKDQJH 2,124,676 0.30 2,959,726 0.44 2,124,676 0.28 2,959,726 0.42
+RXVLQJORDQV 1,075,431 0.15 1,029,041 0.15 1,075,431 0.14 1,029,041 0.15
([SRUWORDQV 25,674,968 3.57 21,587,661 3.23 25,674,968 3.42 21,587,661 3.09
Import loans 4,243,612 0.59 5,791,043 0.86 4,243,612 0.57 5,791,043 0.83
Term loans 54,236,868 7.54 53,701,327 8.01 54,236,868 7.22 53,701,327 7.67
Overdraft 4,556,316 0.63 4,095,584 0.61 4,556,316 0.61 4,095,584 0.59
Others 35,913 126,283 0.02 35,913 126,283 0.02
6XEWRWDO 91,947,784 12.78 89,290,665 13.32 91,947,784 12.24 89,290,665 12.77
263
NOTES TO THE
25 LOANS AND ADVANCES CONTD.

25.1.4 By Industry
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 % Rs 000 % Rs 000 % Rs 000 %
Agriculture & related

1RWH 61,140,943 8.50 47,488,091 7.08 64,196,198 8.55 49,969,317 7.14
Manufacturing 92,308,099 12.83 99,395,073 14.83 95,485,661 12.71 102,708,247 14.68
Tourism 58,573,450 8.14 53,487,897 7.98 60,290,894 8.03 54,857,332 7.84
Transport 8,472,789 1.18 9,607,062 1.43 11,114,740 1.48 11,665,409 1.67
Construction 98,213,969 13.65 84,470,200 12.60 99,413,965 13.24 86,647,909 12.39
Infrastructure 72,306,591 10.04 62,738,985 9.36 73,021,833 9.72 62,738,985 8.97
Traders 135,069,714 18.77 136,294,091 20.33 141,292,970 18.81 142,591,283 20.39
)LQDQFLDO EXVLQHVVVHUYLFHV 40,104,021 5.57 48,767,251 7.28 36,356,699 4.84 43,542,668 6.23
Other services 55,188,622 7.67 47,407,340 7.07 64,505,476 8.59 58,202,699 8.32
Consumers 98,245,496 13.65 80,652,493 12.04 105,399,469 14.03 86,501,813 12.37
25.1.4.1 $VSHUWKHUHTXLUHPHQWRI&HQWUDO%DQNRI6UL/DQND&%6/DPLQLPXPRIRIWKHORDQVDQGDGYDQFHVVKDOOEHJUDQWHGWRWKHDJULFXOWXUH

VHFWRUƶH%DQNKDVFRPSOLHGZLWKWKHVDLGUHTXLUHPHQWDVDWVW'HFHPEHUDQGVW'HFHPEHUƶHFRPSXWDWLRQPHWKRG
XVHGWRGHULYHWKHLQGXVWU\ZLVHH[SRVXUHLQ1RWHDERYHLVGLƩHUHQWIURPWKHPHWKRGXVHGIRU&%6/PLQLPXPOHQGLQJUHTXLUHPHQW
calculation to agriculture sector.
25.2 Impairment for Expected Credit Losses - Loans and Advances
Bank Group
2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
Stage 1
%DODQFHDVDWVW-DQXDU\ 2,902,999 2,394,428 2,968,819 2,479,871
1HWFKDUJHIRUWKH\HDU1RWH 935,090 508,571 961,567 488,948
:ULWHRƩGXULQJWKH\HDU
Interest income accrued on impaired loans & advances
Other movements
%DODQFHDVDWVW'HFHPEHU 3,838,089 2,902,999 3,930,386 2,968,819
Stage 2
1HWFKDUJHIRUWKH\HDU1RWH 3,411,479 633,018 3,427,962 658,926
Interest income accrued on impaired loans & advances
Other movements
Stage 3
1HWFKDUJHIRUWKH\HDU1RWH 7,667,983 9,413,501 8,781,281 10,257,962
,QWHUHVWLQFRPHDFFUXHGRQLPSDLUHGORDQV DGYDQFHV1RWH
Other movements 1,627,764 834,405 1,669,764 834,405
Total
1HWFKDUJHIRUWKH\HDU1RWH 12,014,552 10,555,090 13,170,810 11,405,836
,QWHUHVWLQFRPHDFFUXHGRQLPSDLUHGORDQV DGYDQFHV1RWH
Other movements 1,627,764 834,405 1,669,764 834,405
264
25.3 Leasing
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
7RWDOOHDVHUHQWDOVUHFHLYDEOH 39,231,807 29,182,026 78,692,348 64,372,410

Unearned lease interest income
*URVVOHDVHUHFHLYDEOH 31,898,575 23,768,989 61,738,905 50,124,837
1HWOHDVHUHFHLYDEOH 30,976,986 23,451,964 60,067,745 49,058,241
*URVVOHDVHUHFHLYDEOHZLWKLQRQH\HDU1RWH 11,887,996 9,118,789 23,871,937 18,298,137

*URVVOHDVHUHFHLYDEOHDIWHURQH\HDU1RWH 20,010,579 14,650,200 37,866,968 31,826,700
31,898,575 23,768,989 61,738,905 50,124,837
25.3.1 Lease Receivable within One Year
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
7RWDOOHDVHUHQWDOVUHFHLYDEOHZLWKLQRQH\HDUIURPUHSRUWLQJGDWH 15,547,658 11,801,842 31,845,061 24,939,717

*URVVOHDVHUHFHLYDEOHZLWKLQRQH\HDU1RWH 11,887,996 9,118,789 23,871,937 18,298,137
1HWOHDVHUHFHLYDEOHZLWKLQRQH\HDU 11,544,537 8,997,324 23,178,941 17,827,135
25.3.2 Lease Receivable after One Year
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
7RWDOOHDVHUHQWDOVUHFHLYDEOHDIWHURQH\HDUIURPUHSRUWLQJGDWH 23,684,149 17,380,184 46,847,287 39,432,693

*URVVOHDVHUHFHLYDEOHDIWHURQH\HDU1RWH 20,010,579 14,650,200 37,866,968 31,826,700
1HWOHDVHUHFHLYDEOHDIWHURQH\HDU 19,432,449 14,454,640 36,888,804 31,231,106
26 DEBT AND OTHER INSTRUMENTS
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
'HEHQWXUHVTXRWHG1RWH 1,817,149 4,809,322 1,817,149 4,809,322

Sri Lanka Development Bonds 67,297,568 54,850,893 67,297,568 54,850,893
/HDVHGEDFNHGWUXVWFHUWLƪFDWHV1RWH 6,230,535 4,729,122 6,230,535 4,729,122
*RYHUQPHQWGHEWVHFXULWLHVWUHDVXU\ELOOV 59,931,849 49,627,581 59,942,620 49,627,581
*RYHUQPHQWGHEWVHFXULWLHVWUHDVXU\ERQGV 21,909,766 7,639,618 21,914,296 7,643,937
*URVVGHEW RWKHULQVWUXPHQWV 157,186,867 121,656,536 157,202,168 121,660,855
1HWGHEW RWKHULQVWUXPHQWV 156,293,495 121,105,392 156,308,796 121,109,711
265
NOTES TO THE
26 DEBT AND OTHER INSTRUMENTS CONTD.

26.1 Debentures - Quoted
Bank & Group

Amortised Amortised
Cost Cost
Rs 000 Rs 000
Name of the company

Banks, Finance & Insurance
Alliance Finance PLC 83,876
&HQWUDO)LQDQFH&RPSDQ\3/& 49,284 217,923
Commercial Leasing & Finance PLC 495,159 495,159
DFCC Bank PLC 224,916 224,916
+RXVLQJ'HYHORSPHQW)LQDQFH&RUSRUDWLRQ%DQNRI6UL/DQND 202,793 203,095
/DQND2UL[/HDVLQJ&RPSDQ\3/& 511,342
Orient Finance PLC 400,595
3HRSOH
V/HDVLQJ )LQDQFH3/& 140,791
Singer Finance PLC 247,387 247,387
Softlogic Finance PLC 426,218
1,219,539 2,951,302
Constructions & Engineering

Access Engineering PLC 303,707 303,707
MTD Walkers PLC 254,784 262,165
558,491 565,872
'LYHUVLƪHG+ROGLQJV
$EDQV3/& 100,148
+D\OH\V3/& 507,691
+HPDV+ROGLQJV3/& 12,698
Singer Sri Lanka PLC 103,074
723,611
Others
.RWDJDOD3ODQWDWLRQV3/& 39,119 58,644
/LRQ%UHZHU\&H\ORQ3/& 509,893
39,119 568,537
1,817,149 4,809,322
266
/HDVH%DFNHG7UXVW&HUWLƪFDWHV
Bank & Group

Amortised Amortised
Cost Cost
Rs 000 Rs 000
3HRSOH
V/HDVLQJ )LQDQFH3/& 238,058
$VVRFLDWHG0RWRU)LQDQFH&RPSDQ\3/& 521,667
Senkadagala Finance PLC 493,903 827,463
LB Finance PLC 3,331,668 3,138,959
Trade Finance & Investment PLC 912,446 524,642
Richard Pieris Finance Ltd 478,528
Singer Finance PLC 492,323
6,230,535 4,729,122
26.3 Analysis of Debt and Other Instruments based on Exposure to Credit Risk
Bank

Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
'HEHQWXUHVTXRWHG 1,562,365 254,784 1,817,149 4,809,322

Sri Lanka Development Bonds 67,297,568 67,297,568 54,850,893
/HDVHGEDFNHGWUXVWFHUWLƪFDWHV 6,230,535 6,230,535 4,729,122
*RYHUQPHQWGHEWVHFXULWLHVWUHDVXU\ELOOV 59,931,849 59,931,849 49,627,581
*RYHUQPHQWGHEWVHFXULWLHVWUHDVXU\ERQGV 21,909,766 21,909,766 7,639,618
156,932,083 254,784 157,186,867 121,656,536
156,293,495 156,293,495 121,105,392
Group

Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
'HEHQWXUHVTXRWHG 1,562,365 254,784 1,817,149 4,809,322

6UL/DQNDGHYHORSPHQWERQGV 67,297,568 67,297,568 54,850,893
/HDVHGEDFNHGWUXVWFHUWLƪFDWHV 6,230,535 6,230,535 4,729,122
*RYHUQPHQWGHEWVHFXULWLHVWUHDVXU\ELOOV 59,942,620 59,942,620 49,627,581
*RYHUQPHQWGHEWVHFXULWLHVWUHDVXU\ERQGV 21,914,296 21,914,296 7,643,937
156,947,384 254,784 157,202,168 121,660,855
156,308,796 156,308,796 121,109,711
267
NOTES TO THE
26 DEBT AND OTHER INSTRUMENTS CONTD.

26.4 Impairment for Expected Credit Losses - Debt and Other Instruments at Amortised Cost
Bank & Group
2019 2018
Rs 000 Rs 000
Stage 1
%DODQFHDVDWVW-DQXDU\ 551,144 274,016
1HWFKDUJHIRUWKH\HDU1RWH 87,444 277,128
%DODQFHDVDWVW'HFHPEHU 638,588 551,144
Stage 3
%DODQFHDVDWVW-DQXDU\
1HWFKDUJHIRUWKH\HDU1RWH 254,784
%DODQFHDVDWVW'HFHPEHU 254,784
Total
1HWFKDUJHIRUWKH\HDU1RWH 342,228 277,128
26.5 Analysis of Debt and Other Instruments
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
Pledged as collateral 17,267,796 11,080,527 17,239,524 11,070,856
8QHQFXPEHUHG 139,025,699 110,024,865 139,069,272 110,038,855
156,293,495 121,105,392 156,308,796 121,109,711
By currency
Sri Lankan Rupee 88,995,927 66,254,499 89,011,228 66,258,818
2WKHUFXUUHQF\ 67,297,568 54,850,893 67,297,568 54,850,893
156,293,495 121,105,392 156,308,796 121,109,711
),1$1&,$/$66(76Ⱦ)$,59$/8(7+528*+27+(5&2035(+(16,9(,1&20(
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
*RYHUQPHQWVHFXULWLHVWUHDVXU\ELOOV1RWH 14,906,551 25,044,058 14,906,551 25,044,058

*RYHUQPHQWVHFXULWLHVWUHDVXU\ERQGV1RWH 513,973 3,796 513,973 3,796
4XRWHGHTXLW\VHFXULW\1RWH 1,871,878 2,432,869 1,871,878 2,432,869
8QTXRWHGHTXLW\VHFXULWLHV1RWH 39,322 36,582 39,378 36,638
17,331,724 27,517,305 17,331,780 27,517,361
268
27.1 Government Securities - Treasury Bills

Bank & Group

Rs 000 Rs 000
Amortised cost 14,877,322 25,084,570
/RVVJDLQIURPPDUNWRPDUNHWYDOXDWLRQDVDWVW-DQXDU\ 105,341

Market value 14,906,551 25,044,058
27.2 Government Securities - Treasury Bonds

Bank & Group

Rs 000 Rs 000
Amortised cost 512,893 3,846
/RVVJDLQIURPPDUNWRPDUNHWYDOXDWLRQDVDWVW-DQXDU\

0RYHPHQWGXULQJWKH\HDU 4,677 36,027
Market value 513,973 3,796
27.3 Quoted Equity Security

4XRWHGHTXLW\VHFXULW\UHSUHVHQWVWKHLQYHVWPHQWLQRUGLQDU\VKDUHVRI/DQND%DQJOD)LQDQFH/WGLQ%DQJODGHVK
Bank & Group
2019 2018
No. of No. of
Ordinary Ordinary
Shares Rs 000 Shares Rs 000
&RVWRIWKHLQYHVWPHQWDVDWVW-DQXDU\ 48,606,291 1,024,806 30,143,437 518,153

([FKDQJHORVVJDLQ 162,656
6FULSGLYLGHQGUHFHLYHGGXULQJWKH\HDU 3,391,136 62,963
Rights shares 15,071,718 281,034
&RVWRIWKHLQYHVWPHQWDVDWVW'HFHPEHU 48,606,291 1,016,121 48,606,291 1,024,806
*DLQIURPPDUNWRPDUNHWYDOXDWLRQDVDWVW-DQXDU\ 1,408,063 2,141,669

*DLQIURPPDUNWRPDUNHWYDOXDWLRQDVDWVW'HFHPEHU 855,757 1,408,063
Market value 1,871,878 2,432,869
269
NOTES TO THE
),1$1&,$/$66(76Ⱦ)$,59$/8(7+528*+27+(5&2035(+(16,9(,1&20(&217'
27.4 Unquoted Equity Securities

No. of Carrying Market No. of Carrying Market
Ordinary Value Value Ordinary Value Value
Shares Shares
Rs 000 Rs 000 Rs 000 Rs 000
Bank
Name of the company
LankaBangla Securities Ltd 293,485 1,189 1,189 293,485 1,199 1,199
Credit Information Bureau 1,700 170 170 1,700 170 170
SWIFT 33 12,963 12,963 33 12,963 12,963
/DQND&OHDU3YW/WG 2,000,000 20,000 20,000 2,000,000 20,000 20,000
Lanka Financial Services Bureau Ltd 500,000 5,000 5,000 225,000 2,250 2,250
/DQND5DWLQJ$JHQF\/WG 1,241,263 1,241,263
Total 39,322 39,322 36,582 36,582
Group
Name of the company
LankaBangla Securities Ltd 293,485 1,189 1,189 293,485 1,199 1,199
Credit Information Bureau 1,800 226 226 1,800 226 226
SWIFT 33 12,963 12,963 33 12,963 12,963
/DQND&OHDU3YW/WG 2,000,000 20,000 20,000 2,000,000 20,000 20,000
Lanka Financial Services Bureau Ltd 500,000 5,000 5,000 225,000 2,250 2,250
/DQND5DWLQJ$JHQF\/WG 1,241,263 1,241,263
Total 39,378 39,378 36,638 36,638
'LUHFWRUVRIWKH%DQNDVVHVVHGWKHIDLUYDOXHVRIWKHXQTXRWHGVKDUHLQYHVWPHQWVKHOGE\WKH%DQNDVDWVW'HFHPEHUDQGFRQFOXGHG
WKDWWKHFDUU\LQJYDOXHVDVDWWKDWGDWHLVDUHDVRQDEOHDSSUR[LPDWLRQRIWKHIDLUYDOXH
ƶHLQLWLDOFRVWRIWKHLQYHVWPHQWPDGHLQ/DQND5DWLQJ$JHQF\/WGDPRXQWVWR5V0Q
27.5 Analysis of Financial Assets - Fair Value through Other Comprehensive Income
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
Pledged as collateral 2,265,768 2,265,768
8QHQFXPEHUHG 17,331,724 25,251,537 17,331,780 25,251,593
17,331,724 27,517,305 17,331,780 27,517,361
By currency
Sri Lankan Rupee 15,458,657 25,083,237 15,458,713 25,083,293
2WKHUFXUUHQF\ 1,873,067 2,434,068 1,873,067 2,434,068
17,331,724 27,517,305 17,331,780 27,517,361
270
28 INVESTMENT IN SUBSIDIARIES
ACCOUNTING POLICY
6XEVLGLDULHVDUHHQWLWLHVWKDWDUHFRQWUROOHGE\WKH%DQNƶH%DQNLVSUHVXPHGWRFRQWURODQLQYHVWHHZKHQLWLVH[SRVHGRUKDVULJKWVWR
YDULDEOHUHWXUQVIURPLWVLQYROYHPHQWZLWKWKHLQYHVWHHDQGKDVWKHDELOLW\WRDƩHFWWKRVHUHWXUQVWKURXJKLWVSRZHURYHUWKHLQYHVWHH$W
each reporting date, the Bank reassesses whether it controls an investee, if facts and circumstances indicate that there are changes to one
RUPRUHHOHPHQWVRIFRQWUROPHQWLRQHGDERYH
ƶH)LQDQFLDO6WDWHPHQWVRIVXEVLGLDULHVDUHIXOO\FRQVROLGDWHGIURPWKHGDWHRQZKLFKFRQWUROLVWUDQVIHUUHGWRWKH%DQNDQGFRQWLQXHWR
EHFRQVROLGDWHGXQWLOWKHGDWHZKHQVXFKFRQWUROFHDVHVƶH)LQDQFLDO6WDWHPHQWVRIWKH%DQNţVVXEVLGLDULHVDUHSUHSDUHGIRUWKHVDPH
UHSRUWLQJ\HDUDVSHUWKH%DQNXVLQJFRQVLVWHQWDFFRXQWLQJSROLFLHV
ƶHFRVWRIDFTXLVLWLRQRIDVXEVLGLDU\LVPHDVXUHGDVWKHIDLUYDOXHRIWKHFRQVLGHUDWLRQLQFOXGLQJFRQWLQJHQWFRQVLGHUDWLRQJLYHQRQWKH
GDWHRIWUDQVIHURIWLWOHƶHDFTXLUHGLGHQWLƪDEOHDVVHWVOLDELOLWLHVDQGFRQWLQJHQWOLDELOLWLHVDUHPHDVXUHGDWWKHLUIDLUYDOXHVDWWKHGDWHRI
DFTXLVLWLRQ6XEVHTXHQWWRWKHLQLWLDOPHDVXUHPHQWWKH%DQNFRQWLQXHVWRUHFRJQLVHWKHLQYHVWPHQWVLQVXEVLGLDULHVDWFRVW
ƶHWRWDODVVHWVDQGOLDELOLWLHVRIWKHVXEVLGLDULHVDVDWWKHUHSRUWLQJGDWHDUHLQFOXGHGLQWKH&RQVROLGDWHG6WDWHPHQWRI)LQDQFLDO3RVLWLRQ
ƶHWRWDOSURƪWRUORVVIRUWKH\HDURIWKHVXEVLGLDULHVLVLQFOXGHGLQWKH&RQVROLGDWHG6WDWHPHQWRI3URƪWRU/RVVƶHQRQFRQWUROOLQJ
LQWHUHVWLVSUHVHQWHGLQWKH&RQVROLGDWHG6WDWHPHQWRI)LQDQFLDO3RVLWLRQZLWKLQHTXLW\VHSDUDWHO\IURPWKHHTXLW\DWWULEXWDEOHWRWKH
HTXLW\KROGHUVRIWKH%DQN1RQFRQWUROOLQJLQWHUHVWLQWKHSURƪWRUORVVRIWKH*URXSLVGLVFORVHGLQWKH&RQVROLGDWHG6WDWHPHQWRI
&RPSUHKHQVLYH,QFRPH7RWDOFRPSUHKHQVLYHLQFRPHLVDOORFDWHGWRWKHRZQHUVRIWKHSDUHQWDQGWRWKHQRQFRQWUROOLQJLQWHUHVWHYHQLI
WKLVUHVXOWVLQQRQFRQWUROOLQJLQWHUHVWKDYLQJDGHƪFLWEDODQFH
,QWUDJURXSEDODQFHVDQGDQ\LQFRPHDQGH[SHQVHVDULVLQJIURPLQWUDJURXSWUDQVDFWLRQVDUHHOLPLQDWHGZKHQSUHSDULQJWKH
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV8QUHDOLVHGORVVHVDUHHOLPLQDWHGLQWKHVDPHZD\DVXQUHDOLVHGJDLQVH[FHSWWKDWWKH\DUHRQO\
HOLPLQDWHGWRWKHH[WHQWWKDWWKHUHLVQRHYLGHQFHRILPSDLUPHQW
:KHQDVXEVLGLDU\LVDFTXLUHGRUVROGGXULQJWKH\HDURSHUDWLQJUHVXOWVRIVXFKVXEVLGLDU\LVLQFOXGHGIURPWKHGDWHRIDFTXLVLWLRQRUWRWKH
GDWHRIGLVSRVDO8SRQWKHORVVRIFRQWUROWKH*URXSGHUHFRJQLVHVWKHDVVHWVDQGOLDELOLWLHVRIWKHVXEVLGLDU\DQ\QRQFRQWUROOLQJLQWHUHVWV
DQGWKHRWKHUFRPSRQHQWVRIHTXLW\UHODWHGWRWKHVXEVLGLDU\$Q\VXUSOXVRUGHƪFLWDULVLQJRQWKHORVVRIFRQWUROLVUHFRJQLVHGLQWKH
6WDWHPHQWRI&KDQJHVLQ(TXLW\
,IWKH*URXSUHWDLQVDQ\LQWHUHVWLQWKHSUHYLRXVVXEVLGLDU\WKHQVXFKLQWHUHVWLVPHDVXUHGDWIDLUYDOXHDWWKHGDWHWKHFRQWUROLVORVW
6XEVHTXHQWO\LWLVDFFRXQWHGIRUDVDQHTXLW\DFFRXQWHGLQYHVWHHRULQDFFRUGDQFHZLWKWKH*URXSţVDFFRXQWLQJSROLF\IRUƪQDQFLDO
LQVWUXPHQWVGHSHQGLQJRQWKHOHYHORILQƫXHQFHUHWDLQHG
ƶH*URXSGLGQRWDFTXLUHGLVSRVHDQ\VXEVLGLDULHVGXULQJWKH\HDUHQGHGVW'HFHPEHU
ƶHUHDUHQRVLJQLƪFDQWUHVWULFWLRQVRQWKHDELOLW\RIWKHVXEVLGLDULHVWRWUDQVIHUIXQGVWRWKH%DQNLQWKHIRUPRIFDVKGLYLGHQGVRU
UHSD\PHQWRIORDQVDQGDGYDQFHV
$OOVXEVLGLDULHVRIWKH%DQNKDYHEHHQLQFRUSRUDWHGLQ6UL/DQND
271
NOTES TO THE
28 INVESTMENT IN SUBSIDIARIES CONTD.

28.1 Details of Subsidiaries
Bank

Subsidiary Principal Activities Ownership Cost Directors' Ownership Cost Directors'
Valuation Valuation
Rs 000 Rs 000 Rs 000 Rs 000
6L\DSDWKD)LQDQFH3/& Granting leasing,

hire purchase,
factoring & other
loans facilities &
accepting deposits 1,379,922 4,015,824 1,348,666 3,619,120
Sampath Centre Ltd Renting of
FRPPHUFLDOSURSHUW\ 615,833 4,929,701 579,036 4,611,026
6&6HFXULWLHV3YW/WG 6WRFNEURNLQJ 178,921 119,946 178,921 113,727
Sampath Information Software
7HFKQRORJ\6ROXWLRQV/WG development,
renting of IT
equipments
& IT resource
outsourcing &
FRQVXOWDQF\ 279,000 341,293 279,000 290,317
2,453,676 2,385,623
Impairment provision as at
VW-DQXDU\
1RWH 6,219 1,605
Impairment provision as at
VW'HFHPEHU
Net investment in
VXEVLGLDULHV 2,394,701 2,320,429
6XEVLGLDULHVDUHQRWTXRWHGLQWKH&RORPER6WRFN([FKDQJHH[FHSW6L\DSDWKD)LQDQFH3/&
ƶH'LUHFWRUV
YDOXDWLRQRILQYHVWPHQWVLQVXEVLGLDULHVKDVEHHQFDUULHGRXWRQQHWDVVHWEDVLVDVDWVW'HFHPEHUDQGDFFRUGLQJO\WKH
%DQNKDVUHFRJQLVHGDQLPSDLUPHQWUHYHUVDORI5V0QUHYHUVDORI5V0QDJDLQVWWKHLQYHVWPHQWLQ6&6HFXULWLHV3YW/WG
272
29 PROPERTY, PLANT AND EQUIPMENT
ACCOUNTING POLICY
Recognition
3URSHUW\SODQWDQGHTXLSPHQWDUHWDQJLEOHLWHPVWKDWDUHKHOGIRUXVHLQWKHSURGXFWLRQRUVXSSO\RIVHUYLFHVIRUUHQWDOWRRWKHUVRU
IRUDGPLQLVWUDWLYHSXUSRVHVDQGDUHH[SHFWHGWREHXVHGGXULQJPRUHWKDQRQHSHULRGƶH*URXSDSSOLHVWKHUHTXLUHPHQWVRIWKH6UL
/DQND$FFRXQWLQJ6WDQGDUG/.$63URSHUW\3ODQWDQG(TXLSPHQWLQDFFRXQWLQJIRUWKHVHDVVHWV3URSHUW\SODQWDQGHTXLSPHQWDUH
UHFRJQLVHGLILWLVSUREDEOHWKDWIXWXUHHFRQRPLFEHQHƪWVDVVRFLDWHGZLWKWKHDVVHWZLOOƫRZWRWKH*URXSDQGWKHFRVWRIWKHDVVHWFDQEH
UHOLDEO\PHDVXUHG
Measurement
$QLWHPRISURSHUW\SODQWDQGHTXLSPHQWWKDWTXDOLƪHVIRUUHFRJQLWLRQDVDQDVVHWLVLQLWLDOO\PHDVXUHGDWLWVFRVW&RVWLQFOXGHV
H[SHQGLWXUHWKDWLVGLUHFWO\DWWULEXWDEOHWRWKHDFTXLVLWLRQRIWKHDVVHWDQGFRVWLQFXUUHGVXEVHTXHQWO\WRDGGWRUHSODFHSDUWRIDQLWHPRI
SURSHUW\SODQW HTXLSPHQWƶHFRVWRIVHOIFRQVWUXFWHGDVVHWVLQFOXGHVWKHFRVWRIPDWHULDOVDQGGLUHFWODERXUDQ\RWKHUFRVWVGLUHFWO\
DWWULEXWDEOHWREULQJLQJWKHDVVHWWRDZRUNLQJFRQGLWLRQIRULWVLQWHQGHGXVHDQGWKHFRVWVRIGLVPDQWOLQJDQGUHPRYLQJWKHLWHPVDQG
UHVWRULQJWKHVLWHRQZKLFKWKH\DUHORFDWHG3XUFKDVHGVRIWZDUHWKDWLVLQWHJUDOWRWKHIXQFWLRQDOLW\RIWKHUHODWHGHTXLSPHQWLVFDSLWDOLVHG
DVSDUWRIFRPSXWHUHTXLSPHQW:KHQSDUWVRIDQLWHPRISURSHUW\RUHTXLSPHQWKDYHGLƩHUHQWXVHIXOOLYHVWKH\DUHDFFRXQWHGIRUDV
VHSDUDWHLWHPVPDMRUFRPSRQHQWVRISURSHUW\SODQWDQGHTXLSPHQW
Cost Model
ƶH*URXSDSSOLHVFRVWPRGHOWRSURSHUW\SODQWDQGHTXLSPHQWH[FHSWIRUIUHHKROGODQGDQGEXLOGLQJVDQGUHFRUGVDWFRVWRISXUFKDVHRU
FRQVWUXFWLRQWRJHWKHUZLWKDQ\LQFLGHQWDOH[SHQVHVWKHUHRQOHVVDFFXPXODWHGGHSUHFLDWLRQDQGDQ\DFFXPXODWHGLPSDLUPHQWORVVHV
Revaluation Model
ƶH*URXSDSSOLHVWKHUHYDOXDWLRQPRGHOWRWKHHQWLUHFODVVRIIUHHKROGODQGDQGEXLOGLQJV6XFKSURSHUWLHVDUHFDUULHGDWDUHYDOXHG
DPRXQWEHLQJWKHLUIDLUYDOXHDWWKHGDWHRIUHYDOXDWLRQOHVVDQ\VXEVHTXHQWDFFXPXODWHGGHSUHFLDWLRQDQGVXEVHTXHQWDFFXPXODWHG
LPSDLUPHQWORVVHV)UHHKROGODQGDQGEXLOGLQJVRIWKH*URXSDUHUHYDOXHGE\LQGHSHQGHQWSURIHVVLRQDOYDOXHUVHYHU\WKUHH\HDUVRUPRUH
IUHTXHQWO\LIWKHIDLUYDOXHVDUHVXEVWDQWLDOO\GLƩHUHQWIURPFDUU\LQJDPRXQWVWRHQVXUHWKDWWKHFDUU\LQJDPRXQWVGRQRWGLƩHUIURPWKH
IDLUYDOXHVDVDWWKHUHSRUWLQJGDWHƶH*URXSUHYDOXHGLWVIUHHKROGODQGDQGEXLOGLQJVDVDWVW'HFHPEHUWKHGHWDLOVRIZKLFKDUH
given in Note 29.3.
2QUHYDOXDWLRQRIDQDVVHWDQ\LQFUHDVHLQWKHFDUU\LQJDPRXQWLVUHFRJQLVHGLQŢ2WKHUFRPSUHKHQVLYHLQFRPHţDQGDFFXPXODWHGLQ
HTXLW\XQGHUUHYDOXDWLRQUHVHUYHRUXVHGWRUHYHUVHDSUHYLRXVUHYDOXDWLRQGHFUHDVHUHODWLQJWRWKHVDPHDVVHWZKLFKZDVFKDUJHGWR
WKH6WDWHPHQWRI3URƪWRU/RVV,QWKLVFLUFXPVWDQFHWKHLQFUHDVHLVUHFRJQLVHGDVLQFRPHWRWKHH[WHQWRIWKHSUHYLRXVZULWHGRZQ$Q\
GHFUHDVHLQWKHFDUU\LQJDPRXQWLVUHFRJQLVHGDVDQH[SHQVHLQWKH6WDWHPHQWRI3URƪWRU/RVVRUGHELWHGWRWKHRWKHUFRPSUHKHQVLYH
LQFRPHWRWKHH[WHQWRIDQ\FUHGLWEDODQFHH[LVWLQJLQWKHUHYDOXDWLRQUHVHUYHLQUHVSHFWRIWKDWDVVHWƶHGHFUHDVHUHFRJQLVHGLQRWKHU
FRPSUHKHQVLYHLQFRPHUHGXFHVWKHDPRXQWDFFXPXODWHGLQHTXLW\XQGHUUHYDOXDWLRQUHVHUYHV$Q\EDODQFHUHPDLQLQJLQWKHUHYDOXDWLRQ
UHVHUYHLQUHVSHFWRIDQDVVHWLVWUDQVIHUUHGGLUHFWO\WRUHWDLQHGHDUQLQJVRQUHWLUHPHQWRUGLVSRVDORIWKHDVVHW
Subsequent Cost
ƶHVXEVHTXHQWFRVWRIUHSODFLQJDFRPSRQHQWRIDQLWHPRISURSHUW\SODQWDQGHTXLSPHQWLVUHFRJQLVHGLQWKHFDUU\LQJDPRXQWRI
WKHLWHPLILWLVSUREDEOHWKDWWKHIXWXUHHFRQRPLFEHQHƪWVHPERGLHGZLWKLQWKDWSDUWZLOOƫRZWRWKH*URXSDQGLWVFRVWFDQEHUHOLDEO\
PHDVXUHGƶHFRVWVRIGD\WRGD\VHUYLFLQJRISURSHUW\SODQWDQGHTXLSPHQWDUHFKDUJHGWRWKH6WDWHPHQWRI3URƪWRU/RVVDVLQFXUUHG
273
NOTES TO THE
29 PROPERTY, PLANT AND EQUIPMENT CONTD.
Derecognition
ƶHFDUU\LQJDPRXQWRIDQLWHPRISURSHUW\SODQWDQGHTXLSPHQWLVGHUHFRJQLVHGRQGLVSRVDORUZKHQQRIXWXUHHFRQRPLFEHQHƪWV
DUHH[SHFWHGIURPLWVXVHƶHJDLQRUORVVDULVLQJIURPGHUHFRJQLWLRQRIDQLWHPRISURSHUW\SODQWDQGHTXLSPHQWLVLQFOXGHGLQWKH
6WDWHPHQWRI3URƪWRU/RVVZKHQWKHLWHPLVGHUHFRJQLVHG:KHQUHSODFHPHQWFRVWVDUHUHFRJQLVHGLQWKHFDUU\LQJDPRXQWRIDQLWHP
RISURSHUW\SODQWDQGHTXLSPHQWWKHUHPDLQLQJFDUU\LQJDPRXQWRIWKHUHSODFHGSDUWLVGHUHFRJQLVHG0DMRULQVSHFWLRQFRVWVDUH
FDSLWDOLVHG$WHDFKVXFKFDSLWDOLVDWLRQWKHUHPDLQLQJFDUU\LQJDPRXQWRIWKHSUHYLRXVFRVWRILQVSHFWLRQLVGHUHFRJQLVHG
Capital Work in Progress

ƶHVHDUHH[SHQVHVRIFDSLWDOQDWXUHGLUHFWO\LQFXUUHGLQWKHFRQVWUXFWLRQRIEXLOGLQJVPDMRUSODQWPDFKLQHU\DQGV\VWHPGHYHORSPHQW
DZDLWLQJFDSLWDOLVDWLRQ&DSLWDOZRUNLQSURJUHVVZRXOGEHWUDQVIHUUHGWRWKHUHOHYDQWDVVHWZKHQLWLVDYDLODEOHIRUXVHLHZKHQLWLVLQWKH
ORFDWLRQDQGFRQGLWLRQQHFHVVDU\IRULWWREHFDSDEOHRIRSHUDWLQJLQWKHPDQQHULQWHQGHGE\PDQDJHPHQW&DSLWDOZRUNLQSURJUHVVLV
VWDWHGDWFRVWOHVVDQ\DFFXPXODWHGLPSDLUPHQWORVVHV
Borrowing Costs
%RUURZLQJFRVWVWKDWDUHGLUHFWO\DWWULEXWDEOHWRWKHDFTXLVLWLRQFRQVWUXFWLRQRUSURGXFWLRQRIDTXDOLI\LQJDVVHWKDYHEHHQFDSLWDOLVHGDV
SDUWRIWKHFRVWRIWKHDVVHWLQDFFRUGDQFHZLWK6UL/DQND$FFRXQWLQJ6WDQGDUG/.$6%RUURZLQJ&RVWV$TXDOLI\LQJDVVHWLVDQDVVHW
ZKLFKWDNHVVXEVWDQWLDOSHULRGRIWLPHWRJHWUHDG\IRULWVLQWHQGHGXVHRUVDOH&DSLWDOLVDWLRQRIERUURZLQJFRVWVFHDVHVZKHQVXEVWDQWLDOO\
DOOWKHDFWLYLWLHVQHFHVVDU\WRSUHSDUHWKHTXDOLI\LQJDVVHWIRULWVLQWHQGHGXVHDUHFRPSOHWHG2WKHUERUURZLQJFRVWVDUHUHFRJQLVHGLQ
SURƪWRUORVVLQWKHSHULRGLQZKLFKWKH\DUHLQFXUUHGƶHUHZHUHQRFDSLWDOLVHGERUURZLQJFRVWVUHODWHGWRWKHDFTXLVLWLRQRISURSHUW\
SODQW HTXLSPHQWGXULQJWKH\HDU
5DWHVRIGHSUHFLDWLRQIRUHDFKFDWHJRU\RISURSHUW\SODQWDQGHTXLSPHQWDUHJLYHQLQ1RWH
'HSUHFLDWLRQDQG$PRUWLVDWLRQ([SHQVHV

29.1 Bank
Freehold Improvements Computer 2ƬFH Fixtures & Motor Leased 2019 2018
Land to Lease Hold Equipment Equipment Fittings Vehicles Assets Total Total
& Buildings Properties
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
&RVW9DOXDWLRQ
%DODQFHDVDWVW-DQXDU\ 5,070,736 1,189,365 3,745,796 2,173,805 305,684 220,555 595,329 13,301,270 12,109,476
Additions & improvements 88,659 30,981 530,396 157,572 54,058 2,381 864,047 1,433,832
'LVSRVDOVGXULQJWKH\HDU
:ULWWHQRƩGXULQJWKH\HDU
5HYDOXDWLRQDGMXVWPHQWRQDFFXPXODWHG
depreciation
Revaluation surplus 816,506 816,506
7UDQVIHUVDGMXVWPHQWV 1,671
&RVWYDOXDWLRQDVDWVW'HFHPEHU 5,870,275 1,213,163 4,268,038 2,299,089 354,311 214,151 14,219,027 13,301,270
Accumulated Depreciation
%DODQFHDVDWVW-DQXDU\ 64,839 1,051,730 2,074,275 1,604,532 191,084 149,047 247,770 5,383,277 4,839,534
&KDUJHIRUWKH\HDU1RWH 40,787 67,457 431,874 180,619 42,138 16,189 779,064 777,000
5HYDOXDWLRQDGMXVWPHQWRQDFFXPXODWHG
depreciation
Accumulated depreciation as at 31st
December 1,112,004 2,497,996 1,753,540 227,950 161,171 5,752,661 5,383,277
Net book value as at 31st December 2019 5,870,275 101,159 1,770,042 545,549 126,361 52,980 8,466,366
Net book value as at 31st December 2018 5,005,897 137,635 1,671,521 569,273 114,600 71,508 347,559 7,917,993
274
29.1(a) ƶHFDUU\LQJDPRXQWRI%DQN
VUHYDOXHGIUHHKROGODQGDQGEXLOGLQJVLIWKH\ZHUHFDUULHGDWFRVWOHVVDFFXPXODWHGGHSUHFLDWLRQZRXOGEHDV
follows:

Cost Accumulated Cost Less Cost Accumulated Cost Less
Depreciation Accumulated Depreciation Accumulated
Depreciation Depreciation
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Freehold lands 906,309 906,309 855,934 855,934

)UHHKROGEXLOGLQJV 1,191,359 252,083 939,276 1,153,073 223,034 930,039
Total 2,097,668 252,083 1,845,585 2,009,007 223,034 1,785,973
29.2 Group
Freehold Improvements Computer 2ƬFH Fixtures & Motor Capital 2019 2018
Land to Lease Hold Equipment Equipment Fittings Vehicles Work-in Total Total
& Buildings Properties Progress
&RVW9DOXDWLRQ
%DODQFHDVDWVW-DQXDU\ 9,454,951 1,189,365 5,284,409 2,366,424 473,734 230,508 850,834 19,850,225 18,061,451
Additions & improvements 88,659 30,981 652,224 195,683 92,019 2,381 1,105,594 2,167,541 2,119,108
5HYDOXDWLRQDGMXVWPHQWRQ
accumulated depreciation
Revaluation surplus 1,211,906 1,211,906
&RVWYDOXDWLRQDVDWVW
December 10,424,624 1,213,163 5,893,417 2,529,706 579,635 222,679 1,956,428 22,819,652 19,850,225
Accumulated Depreciation
%DODQFHDVDWVW-DQXDU\ 160,017 1,051,730 2,903,356 1,687,860 287,746 157,718 6,248,427 5,430,009
&KDUJHIRUWKH\HDU1RWH 126,057 67,457 753,888 201,214 71,813 16,726 1,237,155 1,106,881
5HYDOXDWLRQDGMXVWPHQWRQ
accumulated depreciation
Accumulated depreciation as
at 31st December 1,112,004 3,616,743 1,857,375 362,525 168,954 7,117,601 6,248,427
Net book value as at 31st
December 2019 10,424,624 101,159 2,276,674 672,331 217,110 53,725 1,956,428 15,702,051
Net book value as at 31st
December 2018 9,294,934 137,635 2,381,053 678,564 185,988 72,790 850,834 13,601,798
29.2(a) ƶHFDUU\LQJDPRXQWRI*URXS
VUHYDOXHGIUHHKROGODQGDQGEXLOGLQJVLIWKH\ZHUHFDUULHGDWFRVWOHVVDFFXPXODWHGGHSUHFLDWLRQZRXOGEHDV
follows:

Cost Accumulated Cost Less Cost Accumulated Cost Less
Depreciation Accumulated Depreciation Accumulated
Depreciation Depreciation
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Freehold lands 1,245,388 1,245,388 1,195,013 1,195,013

)UHHKROGEXLOGLQJV 1,874,658 464,270 1,410,388 1,893,980 429,488 1,464,492
Total 3,120,046 464,270 2,655,776 3,088,993 429,488 2,659,505
275
NOTES TO THE

29.3 Details of Bank's & Group's Land and Buildings Stated at Valuation
9DOXHU/RFDWLRQ Date of Method of Net Book Value Revaluation Revaluation Revaluation

Valuation Valuation before Revaluation Amount *DLQ/RVV *DLQ/RVV
Recognised in
Land Building Land Building Land Building Total 3URƪWRU OCI
Loss
Rs Mn Rs Mn Rs Mn Rs Mn Rs Mn Rs Mn Rs Mn Rs Mn Rs Mn
Bank
Valuer - P B Kalugalagedara
No. 261, Galle Road, Ratmalana 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 30.00 21.14 49.00 21.00 19.00 18.86 18.86
Valuer - C Wellappili
No. 05, Wakwella Road, Galle 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 104.88 31.36 104.88 33.41 2.05 2.05 2.05
1R$QJXUXZDWRWD5RDG+RUDQD 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 41.50 51.87 10.37 10.37 10.37
1R $+LJK/HYHO5RDG
Maharagama 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 67.30 32.91 80.76 40.23 13.46 7.32 20.78 20.78
Valuer - G M Gamage
1R0DLQ6WUHHW'HQL\D\D 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 21.90 23.79 35.04 27.15 13.14 3.36 16.50 3.36 13.14
1R+DSXJDKDZDODZDWWD
,KDODJDPD5RDG'HQL\D\D 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 0.60 1.50 0.90 0.90 0.33 0.57
1R0DLQ6WUHHW
ƶLVVDPDKDUDPD 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 17.76 31.09 27.75 41.25 9.99 10.16 20.15 20.15
Valuer - Sarath Fernando

No. 7/5, Giriulla Road, Alawwa 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 20.50 22.42 24.70 25.80 4.20 3.38 7.58 7.58
1R&RORPER5RDG*DPSDKD 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 62.00 37.84 68.00 42.00 6.00 4.16 10.16 10.16
1R$*DOOH5RDG.DOXWDUD 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 75.00 63.22 82.00 71.00 7.00 7.78 14.78 14.78
1R0DGDZDOD5RDG.DWXJDVWRWD 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 69.60 61.56 81.00 65.00 11.40 3.44 14.84 14.84
1R 1HJRPER5RDG
.XUXQHJDOD 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 130.50 89.07 187.00 102.00 56.50 12.93 69.43 69.43
No. 475, Elvitigala Mawatha,
Narahenpita 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 94.00 60.22 104.00 65.00 10.00 4.78 14.78 14.78
1R0DLQ6WUHHW1HJDPER 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 103.75 126.71 124.00 128.00 20.25 1.29 21.54 21.54
No. 371, Old Moor St,
0DVDQJDVZHHGL\D&RORPER 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 132.00 22.25 192.00 25.00 60.00 2.75 62.75 62.75
No. 373 A, Galle Road, Panadura 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 61.50 47.87 75.00 51.00 13.50 3.13 16.63 16.63
No. 85/87, Panchikawatta Road,
&RORPER 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 66.00 38.06 78.00 74.00 12.00 35.94 47.94 47.94
1RSDUW%RGLUDMD0DZDWKD
Pettah 31.12.2019 Income Basis 61.27 103.00 41.73 41.73 41.73
1R$0RUDWXZD5RDG3LOL\DQGDOD 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 65.00 32.28 75.00 42.00 10.00 9.72 19.72 19.72
1R9LFWRULD5DQJH'LJDQD
.DQG\ 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 7.00 9.85 10.00 11.80 3.00 1.95 4.95 4.95
1R1HJRPER5RDG:DWWDOD 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 89.00 37.84 106.00 43.00 17.00 5.16 22.16 1.74 20.42
No.591, Galle Road, Wellawatta 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 118.00 55.14 139.00 57.00 21.00 1.86 22.86 22.86
9DOXHU063UDWKDS&KDUWHUHG
Valuation & Consultancy (Pvt) Ltd
No. 1022, Maradana Road, Borella 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 246.80 89.49 296.16 91.29 49.36 1.80 51.16 51.16
1XZDUDZHZDNHOH0DLWKUHHSDOD
6HQDQD\DNH0Z$QXUDGKDSXUD 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 171.70 65.54 175.74 64.74 4.04 3.24 4.04
1R&URVV6WUHHW.DQG\ 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 257.00 92.11 282.70 94.33 25.70 2.22 27.92 27.92
1R+DNPDQD5RDG0DWDUD 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 173.74 37.96 185.64 37.99 11.90 0.03 11.93 11.93
276
9DOXHU/RFDWLRQ Date of Method of Net Book Value Revaluation Revaluation Revaluation

Valuation Valuation before Revaluation Amount *DLQ/RVV *DLQ/RVV
Recognised in
Land Building Land Building Land Building Total 3URƪWRU OCI
Loss
Rs Mn Rs Mn Rs Mn Rs Mn Rs Mn Rs Mn Rs Mn Rs Mn Rs Mn
Valuer - G W G Abeygunawaradana
No. 103, Dharmapala Mawatha,
+XQXSLWL\D&RORPER 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 1,492.50 65.80 1,731.30 67.20 238.80 1.40 240.20 240.20
Valuer - A A M Fathihu
1R0DLQ5RDG$WWLGL\D 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 50.38 27.08 50.76 27.29 0.38 0.21 0.59 0.59
Total - Bank 3,769.91 1,283.87 4,418.80 1,451.48 648.89 167.61 816.50 4.63 811.87
Subsidiaries
Valuer - P B Kalugalagedara
6DPSDWK&HQWUH1R6LU-DPHV
3HLULV0DZDWKD&RORPER 31.12.2019 ,QFRPHEDVLV 2,367.00 1,508.95 2,677.50 1,508.95 310.50 310.50 310.50
Valuer - C Wellappili
6L\DSDWKD)LQDQFH3/&1R
Bauddhaloka Mawatha,
&RORPER 31.12.2019 0DUNHW&RPSDUDEOH0HWKRG 283.00 367.90 84.90 84.90 84.90
Total - Group 6,419.91 2,792.82 7,464.20 2,960.43 1,044.29 167.61 1,211.90 4.63 1,207.27
,QFUHDVHLQIDLUYDOXHRI6DPSDWK&HQWUHEXLOGLQJDERYHWKHQHWERRNYDOXHLVGXHWRWKHFRQVWUXFWLRQFRVWLQFXUUHGVLQFHWKHGDWHRIWKH
ODVWYDOXDWLRQZKLFKKDVDOUHDG\EHHQDFFRXQWHGXQGHUFDSLWDOZRUNLQSURJUHVVRIWKH*URXSƶHUHIRUHWKHLQFUHDVHLQIDLUYDOXHRI
H[LVWLQJƫRRUVRI6DPSDWK&HQWUHEXLOGLQJKDVQRWEHHQFRQVLGHUHGDVDUHYDOXDWLRQJDLQDVDWVW'HFHPEHU
6L\DSDWKDEXLOGLQJLVXQGHUZRUNLQSURJUHVVDVDWVW'HFHPEHU&RVWLQFXUUHGXSWRWKHUHSRUWLQJGDWHRQWKHEXLOGLQJLVLQFOXGHG
XQGHUFDSLWDOZRUNLQSURJUHVVRIWKH*URXS
277
NOTES TO THE

29.4 Freehold Land and Buildings
Land Buildings No. of &RVW &RVW Total Accumulated 2019 As a % 2018

Location Extent Buildings Revaluation Revaluation Value Depreciation Net Book of Total Net Book
in the of Land of Building Value NBV Value
Location
Perches Sq.ft Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Bank
1 Alawwa 20.7 8,190 1 24,700 25,800 50,500 50,500 44,241
No. 7/5, Giriulla Road, Alawwa
2 Anuradhapura 40.4 8,929 1 175,740 64,735 240,475 240,475 239,336
1XZDUDZHZDNHOH
0DLWKUHHSDOD6HQDQD\DNH0Z
Anuradhapura
3 Attidiya 12.7 6,064 1 50,760 27,288 78,048 78,048
1R0DLQ5RDG$WWLGL\D
4 Borella 24.7 15,876 1 296,160 91,287 387,447 387,447 339,178
No. 1022, Maradana Road,
Borella
5 Deniyaya 17.5 5,325 1 35,040 27,155 62,195 62,195 46,338
1R0DLQ6WUHHW'HQL\D\D
6 Deniyaya 40.0 Bare Land 1,500 1,500 1,500 600
1R+DSXJDKDZDODZDWWD
,KDODJDPD5RDG'HQL\D\D
7 Dharmapala Mawatha 119.4 7,300 1 1,731,300 67,200 1,798,500 1,798,500 1,560,130
No. 103, Dharmapala Mawatha,
+XQXSLWL\D&RORPER
8 Galle 17.5 5,400 1 104,880 33,412 138,292 138,292 137,221
No. 05, Wakwella Road, Galle
9 Gampaha 25.0 5,680 1 68,000 42,000 110,000 110,000 100,866
1R&RORPER5RDG
Gampaha
10 Horana 20.8 Bare Land 51,875 51,875 51,875 41,500
No. 42, Anguruwatota Road,
+RUDQD
11 Kalutara 30.0 8,715 1 82,000 71,000 153,000 153,000 140,028
1R$*DOOH5RDG.DOXWDUD
12 Kandy Metro 25.7 17,398 1 282,700 94,331 377,031 377,031 352,395
1R&URVV6WUHHW.DQG\
13 Katugastota 23.2 7,811 1 81,000 65,000 146,000 146,000 132,828
No. 187, Madawala Road,
.DWXJDVWRWD
14 Kurunegala 37.4 16,202 1 187,000 102,000 289,000 289,000 222,370
1R 1HJRPER5RDG
.XUXQHJDOD
15 Maharagama 13.5 6,310 1 80,760 40,226 120,986 120,986 101,237
1R $+LJK/HYHO5RDG
Maharagama
16 Matara 47.6 11,431 2 185,640 37,986 223,626 223,626 213,050
1R+DNPDQD5RDG0DWDUD
278
Land Buildings No. of &RVW &RVW Total Accumulated 2019 As a % 2018

Location Extent Buildings Revaluation Revaluation Value Depreciation Net Book of Total Net Book
in the of Land of Building Value NBV Value
Location
Perches Sq.ft Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
17 Narahenpita 18.9 9,600 1 104,000 65,000 169,000 169,000 155,946
No. 475, Elvitigala Mawatha,
Narahenpita
18 Negombo 41.5 15,088 1 124,000 128,000 252,000 252,000 228,476
1R0DLQ6WUHHW1HJRPER
19 Old Moor Street 24.0 10,180 1 192,000 25,000 217,000 217,000 156,091
No. 371, Old Moor St,
0DVDQJDVZHHGL\D&RORPER
20 Panadura 27.3 6,020 1 75,000 51,000 126,000 126,000 110,875
No. 373 A, Galle Road, Panadura
21 Panchikawatta 9.8 14,680 1 78,000 74,000 152,000 152,000 99,659
No. 85/87, Panchikawatta
5RDG&RORPER
22 Pettah 5,124 1 103,000 103,000 103,000 64,070
1RSDUW%RGLUDMD
Mawatha, Pettah
23 Piliyandala 37.5 8,138 1 75,000 42,000 117,000 117,000 98,296
No. 61A, Moratuwa Road,
3LOL\DQGDOD
24 Ratmalana 10.9 5,520 1 49,000 21,000 70,000 70,000 51,740
No. 261, Galle Road, Ratmalana
25 Tissamaharama 22.2 10,815 1 27,750 41,250 69,000 69,000 49,695
1R0DLQ6WUHHW
Tissamaharama
26 Victoria Range 20.1 2,320 1 10,000 11,800 21,800 21,800 17,152
1R9LFWRULD5DQJH
'LJDQD.DQG\
27 Wattala 42.5 5,314 1 106,000 43,000 149,000 149,000 127,866
1R1HJRPER5RDG
Wattala
28 Wellawatte 21.5 7,776 1 139,000 57,000 196,000 196,000 174,713
No. 591, Galle Road, Wellawatta
Total - Bank 792.3 231,206 27 4,418,805 1,451,470 5,870,275 5,870,275 5,005,897
Subsidiaries
Sampath Centre
29 Slave Island * 157.5 220,301 1 2,677,500 1,508,948 4,186,448 4,186,448 4,006,037
No. 110, Sir James Peiris
0DZDWKD&RORPER

30 Borella 29.1 WIP 367,901 367,901 367,901 283,000
No. 534, Bauddhaloka
0DZDWKD&RORPER
Total - Group 978.9 451,507 28 7,464,206 2,960,418 10,424,624 10,424,624 9,294,934
$GGLWLRQDOƫRRUVDUHXQGHUZRUNLQSURJUHVVDVDWVW'HFHPEHU
279
NOTES TO THE

29.5(a) Improvements to Leasehold Properties
Bank & Group

Cost of Accumulated Net Book Net Book
Buildings Depreciation Value Value
Rs 000 Rs 000 Rs 000 Rs 000
\HDUV 173,309 164,330 8,979 13,702

\HDUV 705,943 639,312 66,631 72,453
$ERYH\HDUV 333,911 308,362 25,549 51,480
Total 1,213,163 1,112,004 101,159 137,635
29.5(b) Fully Depreciated Property, Plant and Equipment

$FODVVZLVHDQDO\VLVRIWKHLQLWLDOFRVWRIIXOO\GHSUHFLDWHGSURSHUW\SODQWDQGHTXLSPHQWRIWKH%DQNZKLFKDUHVWLOOLQXVHDVDWUHSRUWLQJGDWH
is as follows.
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
Asset class
Improvements to leasehold properties 948,282 839,885 948,282 839,885
Computer equipment & software 2,532,199 2,226,354 2,618,610 2,553,476
2ƬFHHTXLSPHQW 1,066,059 965,230 1,082,506 977,395
)L[WXUHV ƪWWLQJV 133,844 109,070 197,112 155,675
Motor vehicles 98,728 68,107 105,216 75,488
Total 4,779,112 4,208,646 4,951,726 4,601,919
29.5(c) Temporarily Idle Property, Plant and Equipment - Bank & Group
ƶH%DQNKROGV+RUDQDODQGZRUWKRI5V0QZLWKWKHLQWHQWLRQRIFRQVWUXFWLQJDEUDQFKLQWKHQHDUIXWXUHƶH%DQNGRHVQRWLQWHQGWR
FRQVWUXFWDEUDQFKLQWKHEDUHODQGORFDWHGLQ'HQL\D\DDVLWZDVVHYHUHO\HDUWKVOLSSHG
29.5(d) Property, Plant and Equipment Retired from Active Use - Bank & Group
ƶHUHZHUHQRSURSHUW\SODQWDQGHTXLSPHQWUHWLUHGIURPDFWLYHXVHDVDWVW'HFHPEHU1LO
29.5(e) Title Restriction on Property, Plant and Equipment - Bank & Group
ƶHUHZHUHQRUHVWULFWLRQRQWKHWLWOHRISURSHUW\SODQWDQGHTXLSPHQWDVDWVW'HFHPEHU1LO
29.5(f ) Property, Plant and Equipment Pledged as Security for Liabilities - Bank & Group
ƶHUHZHUHQRLWHPVRISURSHUW\SODQWDQGHTXLSPHQWSOHGJHGDVVHFXULWLHVIRUOLDELOLWLHV
J &RPSHQVDWLRQIURPƶLUG3DUWLHVIRU,WHPVRI3URSHUW\3ODQWDQG(TXLSPHQW%DQN *URXS

ƶHUHZHUHQRFRPSHQVDWLRQUHFHLYHGGXULQJWKH\HDUIURPWKLUGSDUWLHVIRULWHPVRISURSHUW\SODQWDQGHTXLSPHQWWKDWZHUHLPSDLUHGORVW
RUJLYHQXS1LO
280
30 INTANGIBLE ASSETS
ACCOUNTING POLICY
Recognition
$QLQWDQJLEOHDVVHWLVDQLGHQWLƪDEOHQRQPRQHWDU\DVVHWZLWKRXWSK\VLFDOVXEVWDQFHKHOGIRUXVHLQWKHSURGXFWLRQRUVXSSO\RIJRRGV
RUVHUYLFHVIRUUHQWDOWRRWKHUVRUIRUDGPLQLVWUDWLYHSXUSRVHV$QLQWDQJLEOHDVVHWLVUHFRJQLVHGLILWLVSUREDEOHWKDWWKHIXWXUHHFRQRPLF
EHQHƪWVWKDWDUHDWWULEXWDEOHWRWKHDVVHWZLOOƫRZWRWKHHQWLW\DQGWKHFRVWRIWKHDVVHWFDQEHPHDVXUHGUHOLDEO\$QLQWDQJLEOHDVVHWLV
LQLWLDOO\PHDVXUHGDWFRVW([SHQGLWXUHLQFXUUHGRQDQLQWDQJLEOHLWHPWKDWZDVLQLWLDOO\UHFRJQLVHGDVDQH[SHQVHE\WKH*URXSLQSUHYLRXV
DQQXDO)LQDQFLDO6WDWHPHQWVRULQWHULP)LQDQFLDO6WDWHPHQWVDUHQRWUHFRJQLVHGDVSDUWRIWKHFRVWRIDQLQWDQJLEOHDVVHWDWDODWHUGDWH
Computer Software
&RVWRISXUFKDVHGOLFHQVHVDQGDOOFRPSXWHUVRIWZDUHFRVWVLQFXUUHGOLFHQVHGIRUXVHE\WKH*URXSZKLFKDUHQRWLQWHJUDOO\UHODWHG
WRDVVRFLDWHGKDUGZDUHZKLFKFDQEHFOHDUO\LGHQWLƪHGUHOLDEO\PHDVXUHGDQGLWţVSUREDEOHWKDWWKH\ZLOOOHDGWRIXWXUHHFRQRPLF
EHQHƪWVDUHLQFOXGHGLQWKH6WDWHPHQWRI)LQDQFLDO3RVLWLRQXQGHUWKHFDWHJRU\Ţ,QWDQJLEOHDVVHWVţDQGFDUULHGDWFRVWOHVVDFFXPXODWHG
DPRUWLVDWLRQDQGDQ\DFFXPXODWHGLPSDLUPHQWORVVHV
Goodwill
*RRGZLOOLIDQ\WKDWDULVHVXSRQWKHDFTXLVLWLRQRIVXEVLGLDULHVLVLQFOXGHGLQLQWDQJLEOHDVVHWV*RRGZLOOLVPHDVXUHGDWLQLWLDOUHFRJQLWLRQ
in accordance with Note 4.2.
Subsequent Expenditure
([SHQGLWXUHLQFXUUHGRQVRIWZDUHLVFDSLWDOLVHGRQO\ZKHQLWLVSUREDEOHWKDWWKLVH[SHQGLWXUHZLOOHQDEOHWKHDVVHWWRJHQHUDWHIXWXUH
HFRQRPLFEHQHƪWVLQH[FHVVRILWVRULJLQDOO\DVVHVVHGVWDQGDUGRISHUIRUPDQFHDQGWKLVH[SHQGLWXUHFDQEHPHDVXUHGDQGDWWULEXWHGWR
WKHDVVHWUHOLDEO\$OORWKHUH[SHQGLWXUHLVH[SHQVHGDVLQFXUUHG
Goodwill is measured at cost less accumulated impairment losses.
Derecognition of Intangible Assets

ƶHFDUU\LQJDPRXQWRIDQLWHPRILQWDQJLEOHDVVHWLVGHUHFRJQLVHGRQGLVSRVDORUZKHQQRIXWXUHHFRQRPLFEHQHƪWVDUHH[SHFWHGIURP
LWVXVHƶHJDLQRUORVVDULVLQJIURPGHUHFRJQLWLRQRIDQLWHPRILQWDQJLEOHDVVHWLVLQFOXGHGLQWKH6WDWHPHQWRI3URƪWRU/RVVZKHQWKH
item is derecognised.
ƶHUHZHUHQRUHVWULFWLRQVRQWKHWLWOHRIWKHLQWDQJLEOHDVVHWVDVDWWKHUHSRUWLQJGDWH)XUWKHUWKHUHZHUHQRLWHPVSOHGJHGDVVHFXULWLHV
IRUOLDELOLWLHV
,QWDQJLEOHDVVHWVRIWKH%DQNDVDWVW'HFHPEHURQO\LQFOXGHFRPSXWHUVRIWZDUHDQGFRVWRIOLFHQVHV5DWHVRIDPRUWLVDWLRQIRU
computer software and licenses are given in Note 14,
'HSUHFLDWLRQDQG$PRUWLVDWLRQ([SHQVHV
.
Bank Group
2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
Cost
Additions & improvements 247,510 516,985 248,674 609,189
'LVSRVDOZULWHRƩGXULQJWKH\HDU
Cost as at 31st December 2,833,784 2,586,274 3,043,032 2,806,758
Accumulated Amortisation
&KDUJHIRUWKH\HDU1RWH 389,795 322,898 414,287 343,492
,PSDLUPHQWIRUWKH\HDU 33,371
'LVSRVDOZULWHRƩGXULQJWKH\HDU
Accumulated amortisation as at 31st December 1,838,647 1,448,852 1,987,691 1,581,239
Net book value as at 31st December 995,137 1,137,422 1,055,341 1,225,519
281
NOTES TO THE
5,*+7Ⱦ2)Ⱦ86($66(76
6HWRXWEHORZDUHWKHFDUU\LQJDPRXQWVRIULJKWRIXVHDVVHWVUHFRJQLVHGDQGWKHPRYHPHQWVGXULQJWKH\HDU
Bank Group
Rs 000 Rs 000
Cost
%DODQFHDVDWVW-DQXDU\ 595,329
(ƩHFWRIDGRSWLRQRI6/)56DVDWVW-DQXDU\ 4,106,217 3,071,919
5HVWDWHGEDODQFHDVDWVW-DQXDU\ 4,701,546 3,071,919
Additions & improvements 870,642 1,010,410
&RVWDVDWVW'HFHPEHU 5,572,188 4,082,329
Accumulated Amortisation
%DODQFHDVDWVW-DQXDU\ 247,770
(ƩHFWRIDGRSWLRQRI6/)56DVDWVW-DQXDU\
5HVWDWHGEDODQFHDVDWVW-DQXDU\ 247,770
&KDUJHIRUWKH\HDU1RWH 1,265,199 874,063
$FFXPXODWHGDPRUWLVDWLRQDVDWVW'HFHPEHU 1,512,969 874,063
1HWERRNYDOXHDVDWVW'HFHPEHU 4,059,219 3,208,266
1HWERRNYDOXHRIOHDVHGDVVHWVSUHVHQWHGXQGHU1RWH3URSHUW\3ODQWDQG(TXLSPHQWDVDWVW'HFHPEHUKDVEHHQWUDQVIHUUHG
WR5LJKWRI8VHDVVHWVZLWKWKHDGRSWLRQRI6/)56/HDVHZLWKHƩHFWIURPVW-DQXDU\3ULRUSHULRGDPRXQWKDVQRWEHHQ
restated.
31.1 Lease Liability

6HWRXWEHORZDUHWKHFDUU\LQJDPRXQWVRIOHDVHOLDELOLWLHVLQFOXGHGXQGHU2WKHU/LDELOLWLHVLQ1RWHDQGWKHPRYHPHQWVGXULQJWKH\HDU
Bank Group
2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000

(ƩHFWRIDGRSWLRQRI6/)56DVDWVW-DQXDU\ 4,155,721 3,183,239
5HVWDWHGEDODQFHDVDWVW-DQXDU\ 4,595,709 436,478 3,183,239
Additions 870,642 111,154 1,010,410
$FFUHWLRQRILQWHUHVW1RWH 620,740 172,952 368,897
3D\PHQWV
%DODQFHDVDWVW'HFHPEHU1RWH 4,423,702 439,988 3,449,043
/HDVHVZKHUHDVSULRUSHULRGDPRXQWKDVQRWEHHQUHVWDWHG5HFRQFLOLDWLRQRIWKHOHDVHOLDELOLW\DVDWVW'HFHPEHUWRWKH
RSHQLQJOHDVHOLDELOLW\DVDWVW-DQXDU\LVJLYHQLQ1RWH
31.1.1 Maturity Analysis of Lease Liability
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
/HVVWKDQ\HDU 1,737,036 169,705 1,252,358

WR\HDUV 2,327,645 270,283 1,772,422
0RUHWKDQ\HDUV 359,021 424,263
4,423,702 439,988 3,449,043
282
31.1.2 Reconciliation of Lease Liabilities as at 1st January 2019 to the Operating Lease Commitments as at 31st December 2018
Bank Group
Rs 000 Rs 000
2SHUDWLQJOHDVHFRPPLWPHQWVDVDWVW'HFHPEHU1RWH 5,659,277 4,507,341
'LVFRXQWHGRSHUDWLQJOHDVHFRPPLWPHQWVDVDWVW-DQXDU\ 4,218,307 3,245,825

Less:
&RPPLWPHQWVUHODWLQJWRVKRUWWHUPOHDVHV
&RPPLWPHQWVUHODWLQJWROHDVHVRIORZYDOXH
/HDVHOLDELOLWLHVDVDWVW-DQXDU\UHFRJQLVHGXQGHU6/)561RWH 4,155,721 3,183,239
/HDVHOLDELOLWLHVDVDWVW-DQXDU\DOUHDG\UHFRJQLVHGXQGHU/.$61RWH 439,988
7RWDOOHDVHOLDELOLWLHVDVDWVW-DQXDU\ 4,595,709 3,183,239
ƶHSUHVHQWYDOXHRIRSHUDWLQJOHDVHFRPPLWPHQWVDVDWVW-DQXDU\KDVEHHQFDOFXODWHGXVLQJZHLJKWHGDYHUDJHLQFUHPHQWDO
ERUURZLQJUDWHVRIDQGIRUWKH%DQNDQGWKHVXEVLGLDU\6L\DSDWKD)LQDQFH3/&UHVSHFWLYHO\2WKHUVXEVLGLDU\FRPSDQLHV
GRQRWKDYHDPDWHULDOLPSDFWIURPWKHDGRSWLRQRI6/)56DVDWVW-DQXDU\
/HDVHVRIORZYDOXHLQFOXGHOHDVHRIPRWRUYHKLFOHVZKHUHWKH%DQNDFWVDVWKHOHVVHH6/)56KDGQRWEHHQDSSOLHGWRWKHVH
FRQWUDFWVVLQFHWKHUHLVQRPDWHULDOLPSDFWRQWKHƪQDQFLDOVWDWHPHQWV
6HQVLWLYLW\RI5LJKWRI8VH$VVHWV/HDVH/LDELOLW\WR.H\$VVXPSWLRQV
31.2.1 Sensitivity to Discount Rates
LQFUHDVHGHFUHDVHLQGLVFRXQWUDWHDVDWVW'HFHPEHUZRXOGKDYHGHFUHDVHGLQFUHDVHGWKHOHDVHOLDELOLW\E\DSSUR[LPDWHO\
5V0QZLWKDVLPLODUGHFUHDVHLQFUHDVHLQWKHULJKWRIXVHDVVHW+DGWKH%DQNGHFUHDVHGLQFUHDVHGWKHGLVFRXQWUDWHE\WKH%DQN
V
SURƪWEHIRUHWD[IRUWKH\HDUZRXOGKDYHLQFUHDVHGGHFUHDVHGE\DSSUR[LPDWHO\5V0Q
31.2.2 Sensitivity to Lease Term

+DGWKHOHDVHWHUPRIDOOH[LVWLQJOHDVHDJUHHPHQWVEHHQLQFUHDVHGE\IXUWKHURQH\HDUOHDVHOLDELOLW\RIWKH%DQNDVDWVW'HFHPEHU
ZRXOGKDYHLQFUHDVHGE\5V0QZLWKDVLPLODULQFUHDVHLQWKHULJKWRIXVHDVVHWV)XUWKHUWKLVZRXOGUHGXFHWKHSURƪWEHIRUHWD[RIWKH
%DQNE\5V0Q
ƶHDERYHVHQVLWLYLWLHVDUHJLYHQRQO\IRUWKH%DQNVLQFHWKHVXEVLGLDU\OHDVHVGRQRKDYHDPDWHULDOLPSDFWRQWKHƪQDQFLDOVWDWHPHQWVRIWKH
Group.
283
NOTES TO THE
'()(55('7$;ʁ$66(76ʄ/,$%,/,7,(6
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
Recognised under assets

5HFRJQLVHGXQGHUOLDELOLWLHV 1,405,568 1,536,772
547,356
1HWGHIHUUHGWD[DVVHWVOLDELOLWLHVRIRQHHQWLW\FDQQRWEHVHWRƩDJDLQVWDQRWKHUHQWLW\

VOLDELOLWLHVDVVHWVVLQFHWKHUHLVQROHJDOO\
HQIRUFHDEOHULJKWWRVHWRƩƶHUHIRUHQHWGHIHUUHGWD[DVVHWVDQGOLDELOLWLHVRIGLƩHUHQWHQWLWLHVDUHVHSDUDWHO\UHFRJQLVHGLQWKH6WDWHPHQWRI
Financial Position.
0RYHPHQWLQ'HIHUUHG7D[/LDELOLWLHV$VVHWV

Bank
Accelerated Depreciation for Provision for Revaluation Retirement Tax Losses *DLQ/RVV Others Total
Tax Purposes Loan Losses on Land & %HQHƪW on Leasing on FVOCI
Property, Leased Assets Buildings Obligation Operation Assets
Plant &
Equipment
%DODQFHDVDWVW-DQXDU\ 406,301 1,019,711 936,855 1,353,339

Impact of adoption of SLFRS 9
$GMXVWHGEDODQFHDVDW
VW-DQXDU\ 406,301 1,019,711 936,855 526,518
3URƪWRUORVV1RWH 64,385 143,346
Other comprehensive income 451,407 437,004

3URƪWRUORVV1RWH 29,102
%DODQFHDVDWVW'HFHPEHU 499,788 519,397 1,164,180 314,173
Group
Accelerated Depreciation for Provision for Revaluation Retirement Tax Losses *DLQ/RVV Others Total
Tax Purposes Loan Losses on Land & %HQHƪW on Leasing on FVOCI
Property, Leased Assets Buildings Obligation Operation Assets
Plant &
Equipment
%DODQFHDVDWVW-DQXDU\ 443,245 2,100,936 1,980,671 2,776,280

Impact of adoption of SLFRS 9
$GMXVWHGEDODQFHDVDWVW-DQXDU\
2018 443,245 2,100,936 1,980,671 1,925,210
3URƪWRUORVV1RWH 3,619 833,265
Other comprehensive income 451,407 437,825
%DODQFHDVDWVW'HFHPEHU 446,864 1,438,510 1,980,671 451,407 547,356
%DODQFHDVDWVW-DQXDU\ 446,864 1,438,510 1,980,671 451,407 547,356
3URƪWRUORVV1RWH 37,825
%DODQFHDVDWVW'HFHPEHU 420,174 912,277 2,318,708 314,173
284
33 OTHER ASSETS
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
3UHSDLGH[SHQVHV 717,603 674,810 795,943 746,404

5HLPEXUVHPHQWXQGHUVSHFLDOVHQLRUFLWL]HQGHSRVLWVFKHPH 4,954,403 3,263,769 4,954,403 3,263,769
2WKHUGHEWRUV 2,541,680 2,378,672 3,120,332 2,967,072
3UHSDLGVWDƩFRVW1RWH 3,328,078 2,968,127 3,346,470 2,991,843
5HIXQGDEOHGHSRVLWV 12,270 96,955 35,160 44,437
&RPPLVVLRQUHFHLYDEOHRQƪQDQFLDOJXDUDQWHHV1RWH 79,071 93,012 79,071 93,012
11,633,105 9,475,345 12,331,379 10,106,537
ƶH0RYHPHQWLQWKH3UH3DLG6WDƩ&RVW
Bank Group
2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000

$GG$GMXVWPHQWIRUQHZJUDQWVQHWRIVHWWOHPHQWV 665,567 807,883 669,399 827,518
&KDUJHWRSHUVRQQHOH[SHQVHV
33.2 Commission Receivable on Financial Guarantees

Bank & Group
2019 2018
Rs 000 Rs 000

Interest income 7,376 8,458
Commission received
34 DUE TO BANKS
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
Local Currency Deposits

Demand deposits 80,587 30,906 80,587 30,906
Savings deposits 568 550 568 550
Term deposits 6,630,968 6,630,968
7RWDOORFDOFXUUHQF\GHSRVLWV 81,155 6,662,424 81,155 6,662,424
Foreign Currency Deposits

Demand deposits 969,020 1,044,081 969,020 1,044,081
7RWDOIRUHLJQFXUUHQF\GHSRVLWV 969,020 1,044,081 969,020 1,044,081
Total deposits 1,050,175 7,706,505 1,050,175 7,706,505
8QIDYRXUDEOHEDODQFHVZLWKORFDO IRUHLJQEDQNV 461,490 1,194,958 517,799 1,258,352

1,511,665 8,901,463 1,567,974 8,964,857
285
NOTES TO THE
35 DUE TO DEPOSITORS
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
Local Currency Deposits

Demand deposits 31,425,842 29,654,671 31,415,117 29,647,570
Saving deposits 193,430,471 174,415,928 193,430,628 174,199,790
Call deposits 65,370 138,441 65,370 138,441
Term deposits 404,651,874 395,594,414 417,601,592 405,100,141
&HUWLƪFDWHVRIGHSRVLWV 13,039,590 15,860,591 13,039,590 15,860,591
Margin deposits 1,037,075 2,730,520 1,037,075 2,730,520
7RWDOORFDOFXUUHQF\GHSRVLWV 643,650,222 618,394,565 656,589,372 627,677,053
Foreign Currency Deposits

Demand deposits 3,611,703 4,688,043 3,611,703 4,688,043
Saving deposits 23,671,412 23,004,614 23,671,412 23,004,614
Term deposits 46,020,700 44,168,021 46,020,700 44,168,021
Margin deposits 296,455 123,309 296,455 123,309
7RWDOIRUHLJQFXUUHQF\GHSRVLWV 73,600,270 71,983,987 73,600,270 71,983,987
Total deposits 717,250,492 690,378,552 730,189,642 699,661,040
35.1 Analysis of Due to Depositors

35.1.1 By Product
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
Demand deposits 35,037,545 34,342,714 35,026,820 34,335,613

Saving deposits 217,101,883 197,420,542 217,102,040 197,204,404
Call deposits 65,370 138,441 65,370 138,441
Term deposits 450,672,574 439,762,435 463,622,292 449,268,162
&HUWLƪFDWHVRIGHSRVLWV 13,039,590 15,860,591 13,039,590 15,860,591
Margin deposits 1,333,530 2,853,829 1,333,530 2,853,829
Total deposits 717,250,492 690,378,552 730,189,642 699,661,040
35.1.2 By Currency
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
Sri Lankan Rupee 643,650,222 618,394,565 656,589,372 627,677,053

United States Dollar 67,289,186 62,188,799 67,289,186 62,188,799
Euro 1,401,722 5,177,419 1,401,722 5,177,419
Great Britain Pounds 2,123,935 2,246,791 2,123,935 2,246,791
Australian Dollar 1,726,061 1,605,785 1,726,061 1,605,785
Japanese Yen 229,896 249,853 229,896 249,853
New Zealand Dollar 398,037 28,176 398,037 28,176
Singapore Dollar 109,710 106,106 109,710 106,106
Others 321,723 381,058 321,723 381,058
Total deposits 717,250,492 690,378,552 730,189,642 699,661,040
286
35.1.3 Current Accounts and Savings Accounts (CASA)
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
CASA
/RFDOFXUUHQF\GHSRVLWV 224,937,468 204,102,055 224,926,900 203,878,816
)RUHLJQFXUUHQF\GHSRVLWV 28,252,135 28,736,738 28,252,135 28,736,738
253,189,603 232,838,793 253,179,035 232,615,554
Total Deposits
Due to other customers 717,250,492 690,378,552 730,189,642 699,661,040
'XHWREDQNV'HPDQGVDYLQJV WHUPGHSRVLWV1RWH 1,050,175 7,706,505 1,050,175 7,706,505
718,300,667 698,085,057 731,239,817 707,367,545
&$6$DVDSHUFHQWDJHRIWRWDOGHSRVLWV 35.2 33.4 34.6 32.9
36 DUE TO OTHER BORROWERS
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
&DOOERUURZLQJV 4,208,565 1,154,953 4,208,565 1,154,953

7HUPERUURZLQJV 5,101,507 11,649,437 16,866,711
)RUHLJQFXUUHQF\ERUURZLQJV 46,277,417 42,450,919 46,277,417 42,450,919
5HƪQDQFHERUURZLQJV 5,175,747 4,628,451 5,175,747 4,628,451
55,661,729 53,335,830 67,311,166 65,101,034
ƶH%DQN*URXSKDVQRWKDGDQ\GHIDXOWRISULQFLSDODQGLQWHUHVWZLWKUHJDUGWRDQ\OLDELOLW\GXULQJDQG
37 DUE TO DEBT SECURITIES HOLDERS
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
5HGHHPDEOHGHEHQWXUHV1RWH 35,115,290 34,297,696 38,844,827 38,957,631

/RQJWHUPERQG1RWH 2,526,759 2,314,880 2,526,759 2,314,880
Total 37,642,049 36,612,576 41,371,586 41,272,511
'XHZLWKLQ\HDU 8,615,290 7,797,696 8,766,817 10,379,621

'XHDIWHU\HDU 29,026,759 28,814,880 32,604,769 30,892,890
Total 37,642,049 36,612,576 41,371,586 41,272,511
6HQLRUGHEW 1,119,077 2,593,233

6XERUGLQDWHGGHEW 37,642,049 36,612,576 40,252,509 38,679,278
Total 37,642,049 36,612,576 41,371,586 41,272,511
287
NOTES TO THE
37 DUE TO DEBT SECURITIES HOLDERS CONTD.

37.1 Redeemable Debentures
Bank Group
2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000

'HEHQWXUHVLVVXHG 7,000,000 7,500,000 8,500,000 7,500,000
'HEHQWXUHVUHGHHPHG
34,297,696 34,032,803 38,035,641 38,692,070
,QWHUHVWDFFUXHGGXULQJWKH\HDU 4,510,663 4,131,467 5,085,020 4,679,757
Interest paid
Amortised Cost
Details of Debentures Issued Note No. of Face Value 2019 2018
Debentures
Rs 000 Rs 000 Rs 000
Debentures issued by the Bank

'HEHQWXUHVLVVXHGLQ 37.1.1 70,000,000 7,000,000 7,000,000
'HEHQWXUHVLVVXHGLQ 37.1.2 70,000,000 7,000,000 7,083,234 7,083,957
7RWDOGHEHQWXUHVLVVXHGE\WKH%DQN 35,115,290 34,297,696
Debentures issued by the Subsidiary,

7RWDOGHEHQWXUHLVVXHGE\WKH6XEVLGLDU\ 3,729,537 4,659,935
7RWDOGHEHQWXUHVLVVXHGE\WKH*URXS 38,844,827 38,957,631
288
Debentures Issued by the Bank :

37.1.1 Debentures Issued in 2014
5DWHGXQVHFXUHGVXERUGLQDWHGUHGHHPDEOH\HDUGHEHQWXUHVRI5VHDFKLVVXHGLQƶHGHEHQWXUHVDUHTXRWHGRQWKH&RORPER
6WRFN([FKDQJH
Amortised Cost
No. of Face Value 2019 2018 Allotment Maturity Rate of Interest
Debentures Date Date
Rs 000 Rs 000 Rs 000
31,765,500 3,176,550 3,176,550 'HF 'HF )L[HGSHUDQQXP

SD\DEOHDQQXDOO\
38,234,500 3,823,450 3,823,450 'HF 'HF )L[HGSHUDQQXP
SD\DEOHVHPLDQQXDOO\
70,000,000 7,000,000 7,000,000
ƶH%DQNKDVUHGHHPHGWKHDERYHGHEHQWXUHRQWK'HFHPEHU

6WRFN([FKDQJH
Amortised Cost
Rs 000 Rs 000 Rs 000
67,412,700 6,741,270 6,821,722 6,821,722 1RY 1RY )L[HGSHUDQQXP

SD\DEOHVHPLDQQXDOO\
2,587,300 258,730 261,512 262,235 1RY 1RY Floating rate is equivalent to
WKHVL[PRQWKVWUHDVXU\ELOO
UDWHQHWSOXVSHU
DQQXPSD\DEOHVHPLDQQXDOO\
70,000,000 7,000,000 7,083,234 7,083,957

6WRFN([FKDQJH
Amortised Cost
Rs 000 Rs 000 Rs 000
59,526,500 5,952,650 6,378,917 6,378,917 -XQ -XQ )L[HGSHUDQQXP

SD\DEOHDQQXDOO\
473,500 47,350 47,595 47,664 -XQ -XQ Floating rate is equivalent
WRWKHVL[PRQWKVWUHDVXU\
ELOOUDWHJURVVSOXVSHU
DQQXPSD\DEOHVHPLDQQXDOO\
60,000,000 6,000,000 6,426,512 6,426,581
289
NOTES TO THE

%DVHO,,,&RPSOLDQW7LHU,,OLVWHGUDWHGXQVHFXUHGVXERUGLQDWHGUHGHHPDEOH\HDUGHEHQWXUHVZLWKDQRQYLDELOLW\FRQYHUVLRQDWDSDU
YDOXHRI5VHDFKLVVXHGLQƶHGHEHQWXUHVDUHTXRWHGRQWKH&RORPER6WRFN([FKDQJH
Amortised Cost
Rs 000 Rs 000 Rs 000
60,000,000 6,000,000 6,022,603 6,022,603 'HF 'HF )L[HGSHUDQQXPSD\DEOH

VHPLDQQXDOO\
60,000,000 6,000,000 6,022,603 6,022,603

Amortised Cost
Rs 000 Rs 000 Rs 000
75,000,000 7,500,000 7,764,555 7,764,555 0DU 0DU )L[HGSHUDQQXPSD\DEOH

VHPLDQQXDOO\
75,000,000 7,500,000 7,764,555 7,764,555

Amortised Cost
Rs 000 Rs 000 Rs 000
70,000,000 7,000,000 7,818,386 )HE )HE )L[HGSHUDQQXPSD\DEOH

DQQXDOO\
70,000,000 7,000,000 7,818,386
290
Debentures Issued by the Subsidiary, Siyapatha Finance PLC:

6WRFN([FKDQJH
Amortised Cost
Rs 000 Rs 000 Rs 000
10,000,000 1,000,000 1,036,223 'HF 'HF )L[HGSHUDQQXPSD\DEOH

DQQXDOO\
10,000,000 1,000,000 1,036,223
6L\DSDWKD)LQDQFH3/&KDVUHGHHPHGWKHDERYHGHEHQWXUHVRQWK'HFHPEHU

5DWHGXQVHFXUHGVHQLRUWUDQVIHUDEOHIXOO\SDLGUHGHHPDEOH\HDUDQG\HDUGHEHQWXUHVRI5VHDFKLVVXHGLQƶHGHEHQWXUHVDUH
TXRWHGRQWKH&RORPER6WRFN([FKDQJH
Amortised Cost
Rs 000 Rs 000 Rs 000
14,219,900 1,421,990 1,474,156 6HS 6HS )L[HGSHUDQQXPSD\DEOH

DQQXDOO\
10,780,100 1,078,010 1,119,077 1,119,077 6HS 6HS )L[HGSHUDQQXPSD\DEOH
DQQXDOO\
25,000,000 2,500,000 1,119,077 2,593,233
6L\DSDWKD)LQDQFH3/&KDVUHGHHPHGWKH\HDUGHEHQWXUHVDPRXQWLQJWR5V0QRQWK6HSWHPEHU

5DWHGXQVHFXUHGVXERUGLQDWHGWUDQVIHUDEOHIXOO\SDLGUHGHHPDEOH\HDUGHEHQWXUHVRI5VHDFKLVVXHGLQƶHGHEHQWXUHVDUH
TXRWHGRQWKH&RORPER6WRFN([FKDQJH
Amortised Cost
Rs 000 Rs 000 Rs 000
10,000,000 1,000,000 1,030,479 1,030,479 2FW 2FW )L[HGSHUDQQXPSD\DEOH

DQQXDOO\
10,000,000 1,000,000 1,030,479 1,030,479

6WRFN([FKDQJH
Amortised Cost
Rs 000 Rs 000 Rs 000
15,000,000 1,500,000 1,579,981 $XJ $XJ )L[HGSHUDQQXP

SD\DEOHDQQXDOO\
15,000,000 1,500,000 1,579,981
291
NOTES TO THE

37.2 Long Term Bond
Bank & Group
ƶH%DQNKDVLVVXHGDUHGHHPDEOH]HURFRXSRQERQGLQZLWKDUHGHPSWLRQYDOXHRI5V0QZKLFKZLOOEHPDWXUHGRQ
1st August 2023.
2019 2018
Rs 000 Rs 000
%DODQFHDVDWVW-DQXDU\ 2,314,880 2,120,767

Interest accrued 211,879 194,113
%DODQFHDVDWVW'HFHPEHU 2,526,759 2,314,880
38 RETIREMENT BENEFIT OBLIGATION
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
3URYLVLRQIRUJUDWXLW\1RWH 1,199,928 734,664 1,290,067 792,920

/HDYHDFFUXDOSODQ1RWH 236,628 221,134 236,628 221,134
(3),QWHUHVWJXDUDQWHHSODQ1RWH 117,105 92,254 117,105 92,254
/LDELOLW\IRUSHQVLRQIXQG 2,097,981 837,772 2,097,981 837,772
3,651,642 1,885,824 3,741,781 1,944,080
38.1 Provision for Gratuity

Liability Recognised in the Statement of Financial Position
Bank Group
2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000

3URYLVLRQPDGHGXULQJWKH\HDU1RWH 515,163 169,410 553,992 184,012
1,249,827 788,049 1,346,912 853,460
%HQHƪWVSDLGIURPWKHSODQ
%DODQFHDVDWVW'HFHPEHU1RWH 1,199,928 734,664 1,290,067 792,920
292
38.1.1 Provision made during the year

$PRXQWV5HFRJQLVHGLQ3URƪWRU/RVV
Bank Group
Rs 000 Rs 000 Rs 000 Rs 000
Current service cost 118,626 68,233 133,053 79,734

,QWHUHVWH[SHQVHV 89,556 63,658 96,607 69,692
7RWDODPRXQWUHFRJQLVHGLQSURƪWRUORVV 208,182 131,891 229,660 149,426
Amounts Recognised in OCI
Bank Group
Rs 000 Rs 000 Rs 000 Rs 000
$FWXDULDOORVVJDLQGXHWRFKDQJHVLQDVVXPSWLRQV

)LQDQFLDODVVXPSWLRQV 101,789 115,845
'HPRJUDSKLFDVVXPSWLRQV 3,331
$FWXDULDOH[SHULHQFHORVVDULVLQJGXULQJWKH\HDU 205,192 68,054 208,487 69,122
Total actuarial loss recognised in OCI 306,981 37,519 324,332 34,586
3URYLVLRQPDGHGXULQJWKH\HDU 515,163 169,410 553,992 184,012
6LJQLƪFDQWDVVXPSWLRQVXVHGIRUWKHDFWXDULDOYDOXDWLRQDUHJLYHQLQ1RWH
0RYHPHQWRI'HƪQHG%HQHƪW2EOLJDWLRQGXULQJWKH\HDU
Bank Group
2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000

Current service cost 118,626 68,233 133,053 79,734
,QWHUHVWH[SHQVHV 89,556 63,658 96,607 69,692
%HQHƪWVSDLGIURPWKHSODQ
)LQDQFLDODVVXPSWLRQV 101,789 115,845
'HPRJUDSKLFDVVXPSWLRQV 3,331
$FWXDULDOH[SHULHQFHORVV 205,192 68,054 208,487 69,122
%DODQFHDVDWVW'HFHPEHU 1,199,928 734,664 1,290,067 792,920
$Q$FWXDULDOYDOXDWLRQRIWKHJUDWXLW\OLDELOLW\RIWKH%DQNZDVFDUULHGRXWDVDWVW'HFHPEHUE\0U3L\DO6*RRQHWLOOHNH)HOORZRI
6RFLHW\RI$FWXDULHV86$RI0HVVUV3L\DO6*RRQHWLOOHNH $VVRFLDWHVDƪUPRISURIHVVLRQDODFWXDULHVƶHYDOXDWLRQPHWKRGXVHGE\WKH
DFWXDU\WRYDOXHWKH)XQGLVWKH3URMHFWHG8QLW&UHGLW0HWKRGUHFRPPHQGHGE\6UL/DQND$FFRXQWLQJ6WDQGDUG/.$6(PSOR\HH
%HQHƪWV
293
NOTES TO THE
38 RETIREMENT BENEFIT OBLIGATION CONTD.

38.1.3 Actuarial Assumptions - Bank
Financial assumptions
Discount rate
)XWXUHVDODU\LQFUHPHQWUDWH
Demographic assumptions
RP 2000 RP 2000
0RUWDOLW\ 0RUWDOLW\7DEOH 0RUWDOLW\7DEOH
Retirement age \HDUV \HDUV
([SHFWHGDYHUDJHIXWXUHZRUNLQJOLIHRIWKHDFWLYHSDUWLFLSDQWVLV\HDUV
38.1.4 Sensitivity of Assumptions Employed in Gratuity Valuation - Bank

5HDVRQDEO\SRVVLEOHFKDQJHVDWWKHUHSRUWLQJGDWHWRRQHRIWKHVLJQLƪFDQWDFWXDULDODVVXPSWLRQVKROGLQJRWKHUDVVXPSWLRQVFRQVWDQW
ZRXOGKDYHDƩHFWHGWKHJUDWXLW\OLDELOLW\6WDWHPHQWRI&RPSUHKHQVLYH,QFRPHE\WKHDPRXQWVVKRZQEHORZ
,QFUHDVH'HFUHDVH ,QFUHDVH'HFUHDVH 2019 2018

in Discount Rate in Salary Increment 6HQVLWLYLW\(ƩHFW 6HQVLWLYLW\(ƩHFWRQ 6HQVLWLYLW\(ƩHFW 6HQVLWLYLW\(ƩHFWRQ
Rate on Comprehensive Gratuity Liability on Comprehensive Gratuity Liability
Income Statement ,QFUHDVH'HFUHDVH Income Statement ,QFUHDVH'HFUHDVH
,QFUHDVH'HFUHDVH in Liability ,QFUHDVH'HFUHDVH in Liability
in Comprehensive in Comprehensive
Income for the Year Income for the Year
Rs Mn Rs Mn Rs Mn Rs Mn
113.5 77.9

135.0 92.9
131.6 91.1
113.0 77.9
$OOVXEVLGLDULHVRIWKH*URXSFDUU\RXWDFWXDULDOYDOXDWLRQVWRDVFHUWDLQWKHLUUHVSHFWLYHJUDWXLW\OLDELOLWLHV+RZHYHUDVVXPSWLRQVDQGWKH
VHQVLWLYLW\RIWKHDVVXPSWLRQVKDYHEHHQJLYHQRQO\IRUWKHJUDWXLW\IXQGRIWKH%DQNVLQFHVXEVLGLDU\JUDWXLW\OLDELOLWLHVGRQRWKDYHDPDWHULDO
impact on the Group Financial Statements.
38.2 Leave Accrual Plan

38.2.1 Liability Recognised in the Statement of Financial Position
Bank & Group
2019 2018
Rs 000 Rs 000

3URYLVLRQPDGHGXULQJWKH\HDU 15,494 24,155
294
38.3 EPF Interest Guarantee Plan

(PSOR\HHVţ3URYLGHQW)XQG(3)LVDQDSSURYHGSULYDWHSURYLGHQWIXQGZKLFKKDVEHHQVHWXSWRPHHWWKHSURYLGHQWIXQGOLDELOLWLHVRIWKH
%DQNWRZKLFKWKH%DQNDQGHPSOR\HHVFRQWULEXWHDQGUHVSHFWLYHO\RQWKHVDODU\RIHDFKHPSOR\HH(PSOR\HHVZKRDUHPHPEHUVRI
WKHIXQGDUHHQWLWOHGWRUHFHLYHLQWHUHVWDWDJXDUDQWHHGUDWHRI1DWLRQDO6DYLQJV%DQN
VRQH\HDUƪ[HGGHSRVLWUDWHQHWRILQFRPHWD[RQWKHLU
EDODQFHHYHQLIWKHIXQGHDUQVDORZHUUHWXUQIURPLWVLQYHVWPHQWLQDJLYHQƪQDQFLDO\HDU$VSHU6HFWLRQRIWKH(3)&RQVWLWXWLRQWKH%DQN
VKDOOFRQWULEXWHDQ\VKRUWIDOOLQWKHUHYHQXHDFFRXQWRIWKHIXQGDIWHUSD\PHQWRILQWHUHVWDWWKHVDLGUDWHDQGRWKHUFRVWRIDGPLQLVWHULQJ
WKHIXQGƶXVWKH%DQN
VREOLJDWLRQWR(3)LVQRWOLPLWHGWRFRQWULEXWLRQUHIHUUHGWRDERYHDQGDFFRUGLQJO\WKHIXQGZDVWUHDWHGDVD
GHƪQHGEHQHƪWOLDELOLW\DVSHU6UL/DQND$FFRXQWLQJ6WDQGDUG/.$6(PSOR\HH%HQHƪWV$QDFWXDULDOYDOXDWLRQZDVFDUULHGRXWE\
0U3L\DO6*RRQHWLOOHNH)HOORZRI6RFLHW\RI$FWXDULHV86$RI0HVVUV3L\DO6*RRQHWLOOHNH $VVRFLDWHVDƪUPRISURIHVVLRQDODFWXDULHVWR
YDOXHWKH%DQN
VDGGLWLRQDOREOLJDWLRQDULVLQJIURP6HFWLRQRIWKH(3)FRQVWLWXWLRQDVDWVW'HFHPEHU
38.3.1 Net Liability Recognised in the Statement of Financial Position

Bank & Group

Rs 000 Rs 000
)XQGREOLJDWLRQDVDWVW'HFHPEHU 12,874,208 11,695,490

)DLUYDOXHRISODQDVVHWVDVDWVW'HFHPEHU
1HWOLDELOLW\UHFRJQLVHGLQWKH6WDWHPHQWRI)LQDQFLDO3RVLWLRQ1RWH 117,105 92,254
Bank & Group

Rs 000 Rs 000
Current service cost 7,850 7,720

,QWHUHVWH[SHQVHRQGHƪQHGEHQHƪWOLDELOLW\ 11,246 10,484
7RWDODPRXQWUHFRJQLVHGLQSURƪWRUORVV 19,096 18,204
38.3.3 Amounts Recognised in OCI

Bank & Group

Rs 000 Rs 000

Financial assumptions 15,951
$FWXDULDOJDLQGXHWRH[SHULHQFHDGMXVWPHQWV
Total amount recognised in OCI 5,755
38.3.4 Movement of the Net Liability Recognised in the Statement of Financial Position
Bank & Group
2019 2018
Rs 000 Rs 000

Current service cost and interest cost 19,096 18,204
$FWXDULDOORVVJDLQ 5,755
295
NOTES TO THE

38.3.5 Actuarial Assumptions - Bank
2019 2018
Discount rate
Return from EPF investments
/RQJWHUPJXDUDQWHHG(3)LQWHUHVWUDWHQHWRIWD[
0RUWDOLW\ RP 2000 RP 2000
0RUWDOLW\7DEOH 0RUWDOLW\7DEOH
([SHFWHGDYHUDJHIXWXUHZRUNLQJOLIHRIWKHDFWLYHSDUWLFLSDQWVLV\HDUV
38.3.6 Sensitivity of Assumptions Employed in EPF Interest Guarantee Plan Valuation

5HDVRQDEO\SRVVLEOHFKDQJHVDWWKHUHSRUWLQJGDWHWRRQHRIWKHVLJQLƪFDQWDFWXDULDODVVXPSWLRQVKROGLQJRWKHUDVVXPSWLRQVFRQVWDQW
ZRXOGKDYHDƩHFWHGWKH(3)LQWHUHVWJXDUDQWHHOLDELOLW\6WDWHPHQWRI&RPSUHKHQVLYH,QFRPHE\WKHDPRXQWVVKRZQEHORZ
,QFUHDVH'HFUHDVH ,QFUHDVH'HFUHDVH 2019 2018

in Discount Rate in Salary Increment 6HQVLWLYLW\(ƩHFW 6HQVLWLYLW\(ƩHFW 6HQVLWLYLW\(ƩHFW 6HQVLWLYLW\(ƩHFW
Rate on Comprehensive on Employment on Comprehensive on Employment
Income Statement %HQHƪW2EOLJDWLRQ Income Statement %HQHƪW2EOLJDWLRQ
,QFUHDVH'HFUHDVH ,QFUHDVH'HFUHDVH ,QFUHDVH'HFUHDVH ,QFUHDVH'HFUHDVH
in Comprehensive in Liability in Comprehensive in Liability
11.2 8.7

13.1 10.0
2.3 1.7
2.2 1.6
38.4 Pension Fund

38.4.1 Net Liability Recognised in the Statement of Financial Position
Bank & Group

Rs 000 Rs 000
3UHVHQWYDOXHRIIXQGHGREOLJDWLRQVDVDWVW'HFHPEHU1RWH 9,216,234 7,467,660

)DLUYDOXHRISODQDVVHWVDVDWVW'HFHPEHU1RWH
Funded status 2,097,981 837,772
3UHVHQWYDOXHRIXQIXQGHGEHQHƪWREOLJDWLRQ
1HWOLDELOLW\UHFRJQLVHGLQWKH6WDWHPHQWRI)LQDQFLDO3RVLWLRQ 2,097,981 837,772
Bank & Group

Rs 000 Rs 000

1HWLQWHUHVWH[SHQVHRQWKHQHWGHƪQHGEHQHƪWOLDELOLW\ 118,476 82,737
Past service cost 89,173
7RWDODPRXQWUHFRJQLVHGLQSURƪWRUORVV 488,032 348,355
296
38.4.3 Amounts Recognised in OCI

Bank & Group

Rs 000 Rs 000

)LQDQFLDODVVXPSWLRQV 721,126
'HPRJUDSKLFDVVXPSWLRQV
$FWXDULDOJDLQORVVGXHWRH[SHULHQFHDGMXVWPHQWV 363,161
Actuarial loss from plan assets 477,639 400,617
Total amount recognised in OCI 1,150,078 41,760
'HƪQHG%HQHƪW2EOLJDWLRQ5HFRQFLOLDWLRQ
Bank & Group
2019 2018
Rs 000 Rs 000
'HƪQHGEHQHƪWREOLJDWLRQDVDWVW-DQXDU\ 7,467,660 6,986,957

Interest cost 925,243 755,989
Past service cost 89,173
$FWXDOEHQHƪWVSDLGIURPWKHSODQ
)LQDQFLDODVVXPSWLRQV 721,126
'HPRJUDSKLFDVVXPSWLRQV
$FWXDULDOJDLQORVVGXHWRH[SHULHQFHDGMXVWPHQWV 363,161
'HƪQHGEHQHƪWREOLJDWLRQDVDWVW'HFHPEHU 9,216,234 7,467,660
38.4.5 Fair Value of Plan Assets Reconciliation

Bank & Group
2019 2018
Rs 000 Rs 000
)DLUYDOXHRISODQDVVHWVDVDWVW-DQXDU\ 6,629,888 6,320,907

Interest income on plan assets 806,767 673,252
$FWXDOHPSOR\HUFRQWULEXWLRQV 377,901 218,393
$FWXDOEHQHƪWVSDLGIURPSODQ
Actuarial loss from plan assets
)DLUYDOXHRISODQDVVHWV1RWHD 7,118,253 6,629,888
$QDFWXDULDOYDOXDWLRQRIWKH3HQVLRQ)XQGZDVFDUULHGRXWDVDWVW'HFHPEHUE\0U3L\DO6*RRQHWLOOHNH)HOORZRI6RFLHW\$FWXDULHV
86$RI0HVVUV3L\DO6*RRQHWLOOHNH $VVRFLDWHVDƪUPRISURIHVVLRQDODFWXDULHVƶHYDOXDWLRQPHWKRGXVHGE\WKHDFWXDU\WRYDOXHWKH
)XQGLVWKH3URMHFWHG8QLW&UHGLW0HWKRGUHFRPPHQGHGE\6UL/DQND$FFRXQWLQJ6WDQGDUG/.$6(PSOR\HH%HQHƪWV
38.4.5(a) Fair Value of Plan Assets Consists of the Following

Rs 000 Rs 000
(TXLW\VHFXULWLHV GHEHQWXUHV 840,058 1,513,403

Government securities 14,066
Term deposits 5,508,537 4,862,824
Others 769,658 239,595
Fair value of plan assets 7,118,253 6,629,888
297
NOTES TO THE

38.4.6 Actuarial Assumptions
Bank & Group
Discount rate
([SHFWHGUHWXUQRQDVVHWV
0RUWDOLW\ 530RUWDOLW\7DEOH 530RUWDOLW\7DEOH
Retirement age Normal retirement age Normal retirement age
or age on valuation or age on valuation
date, if greater date, if greater
y([SHFWHGDYHUDJHIXWXUHOLIHRIWKHDFWLYHDQGUHWLUHGSDUWLFLSDQWVLV\HDUV
38.4.7 Sensitivity of Assumptions Employed in Pension Fund Valuation

5HDVRQDEO\SRVVLEOHFKDQJHVDWWKHUHSRUWLQJGDWHWRRQHRIWKHVLJQLƪFDQWDFWXDULDODVVXPSWLRQVKROGLQJRWKHUDVVXPSWLRQVFRQVWDQWZRXOGKDYH
DƩHFWHGWKHQHWSHQVLRQOLDELOLW\6WDWHPHQWRI&RPSUHKHQVLYH,QFRPHE\WKHDPRXQWVVKRZQEHORZ
,QFUHDVH ,QFUHDVH 2019 2018

(Decrease) in (Decrease) in 6HQVLWLYLW\(ƩHFW 6HQVLWLYLW\(ƩHFWRQ 6HQVLWLYLW\(ƩHFW 6HQVLWLYLW\(ƩHFWRQ
Discount Rate Salary Increment on Statement of (PSOR\PHQW%HQHƪW on Statement of (PSOR\PHQW%HQHƪW
Rate Comprehensive Obligation Comprehensive Obligation
Income ,QFUHDVH'HFUHDVH Income ,QFUHDVH'HFUHDVH
,QFUHDVH'HFUHDVH in Net Pension Liability ,QFUHDVH'HFUHDVH in Net Pension
in Comprehensive in Comprehensive Liability
890.7 718.0

1,051.6 832.3
411.1 365.7
383.1 349.4
&855(177$;/,$%,/,7,(6ʁ5(&(,9$%/(6ʄ
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
&XUUHQWWD[OLDELOLWLHV 7,427,315 9,540,868 7,835,445 9,682,482

&XUUHQWWD[UHFHLYDEOHV
1HWFXUUHQWWD[OLDELOLW\1RWH 7,427,315 9,540,868 7,789,199 9,659,122
298
&XUUHQW7D[/LDELOLWLHV5HFHLYDEOHV
Bank Group
2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000

&XUUHQWWD[EDVHGRQSURƪWIRUWKH\HDU1RWH 7,578,543 8,425,713 8,138,931 8,600,997
2YHUSURYLVLRQLQUHVSHFWRISUHYLRXV\HDUV1RWH
3D\PHQWRIWD[
40 OTHER LIABILITIES
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
Deposit insurance premium 163,636 156,110 165,149 157,160

Deferred income 572,978 610,600 572,978 620,233
/HDVHOLDELOLW\1RWH 4,423,702 439,988 3,449,043
%LOOVSD\DEOH 1,431,144 1,277,841 1,431,144 1,277,841
Items in transit 1,195,769 950,638 1,195,769 950,638
$FFUXHGH[SHQVHV 3,256,959 2,780,635 3,277,486 2,951,523
,PSDLUPHQWSURYLVLRQIRUH[SHFWHGFUHGLWORVVHVFUHGLWUHODWHG
FRPPLWPHQWV FRQWLQJHQFLHV1RWH 1,417,228 1,184,087 1,417,504 1,184,087
2WKHUSD\DEOH 4,646,928 4,998,623 5,856,766 5,671,052
17,108,344 12,398,522 17,365,839 12,812,534
41 STATED CAPITAL
Bank & Group
2019 2018
Rs 000 Rs 000

Rights issue 12,104,933 12,532,052
Scrip dividend 2,721,608 3,956,178
Rights, preferences and restrictions of classes of capital

ƶHKROGHUVRIRUGLQDU\VKDUHVKDYHWKHULJKWWRUHFHLYHGLYLGHQGDVGHFODUHGIURPWLPHWRWLPHDQGDUHHQWLWOHGWRRQHYRWHSHUVKDUHDWWKH
Annual General Meeting of the Bank.
41.1 Reconciliation of Number of Shares

Bank & Group
2019 2018
2UGLQDU\VKDUHVDVDWVW-DQXDU\ 280,902,248 217,222,236

1XPEHURIVKDUHVLVVXHGXQGHUULJKWVLVVXH 89,006,863 50,128,208
1XPEHURIVKDUHVLVVXHGGXHWRƪQDOVFULSGLYLGHQG UHVSHFWLYHO\ 11,548,874 13,551,804
2UGLQDU\VKDUHVDVDWVW'HFHPEHU 381,457,985 280,902,248
299
NOTES TO THE
42 STATUTORY RESERVE FUND
Bank Group
2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000

7UDQVIHUGXULQJWKH\HDU 570,000 610,000 595,000 636,000
ƶHVWDWXWRU\UHVHUYHIXQGLVPDLQWDLQHGDVUHTXLUHGE\WKH6HFWLRQRIWKH%DQNLQJ$FW1RRI$VXPHTXLYDOHQWWRQRWOHVV
WKDQRIWKHSURƪWDIWHUWD[EHIRUHDQ\GLYLGHQGLVGHFODUHGRUDQ\SURƪWVDUHWUDQVIHUUHGWRHOVHZKHUHVKRXOGEHWUDQVIHUUHGWRDERYH
UHVHUYHXQWLOWKHUHVHUYHLVHTXDOWRRIWKH%DQN
VVWDWHGFDSLWDOƶHUHDIWHUDIXUWKHUVXPHTXLYDOHQWWRRIVXFKSURƪWVVKRXOGEH
WUDQVIHUUHGWRWKHVWDWXWRU\UHVHUYHIXQGXQWLOWKHDPRXQWRIWKHVDLGUHVHUYHIXQGLVHTXDOWRWKHVWDWHGFDSLWDORIWKH%DQN
ƶH%DQN
VVXEVLGLDU\6L\DSDWKD)LQDQFH3/&WRRWUDQVIHUVRILWVSURƪWDIWHUWD[WRWKH6WDWXWRU\5HVHUYH)XQGDVUHTXLUHGE\WKH)LQDQFH
&RPSDQLHV&DSLWDO)XQGV'LUHFWLRQ1RRI
43 OTHER RESERVES
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
5HYDOXDWLRQUHVHUYH1RWH 2,993,599 2,409,050 5,962,392 5,093,155

Fair value through other comprehensive income reserve
1RWH 807,879 1,160,765 807,879 1,160,765
*HQHUDOUHVHUYH1RWH 43,435,171 38,909,901 43,435,171 38,909,901
47,236,649 42,479,716 50,205,442 45,163,821
43.1 Revaluation Reserve
Bank Group
2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000

Revaluation surplus 811,874 1,207,274
'HIHUUHGWD[HƩHFWRQUHYDOXDWLRQVXUSOXV
43.2 Fair Value through Other Comprehensive Income Reserve

Bank & Group
2019 2018
Rs 000 Rs 000

*DLQORVVRQUHPHDVXUHPHQWGHEWLQVWUXPHQWVDW)92&, 87,713
5HFODVVLƪFDWLRQWRSURƪWRUORVVGHEWLQVWUXPHQWVDW)92&,
/RVVRQUHPHDVXUHPHQWHTXLW\LQVWUXPHQWDW)92&,
([FKDQJHGLƩHUHQFHVHTXLW\LQVWUXPHQWVDW)92&, 162,656
'HIHUUHGWD[HƩHFWRQDERYH 137,234
%DODQFHDVDWVW'HFHPEHU 807,879 1,160,765
300
43.3 General Reserve

ƶH%RDUGRI'LUHFWRUVGHFLGHVWKHDPRXQWWREHWUDQVIHUUHGWRJHQHUDOUHVHUYHIURPUHWDLQHGHDUQLQJVDIWHUUHWDLQLQJDVXEVWDQWLDODPRXQW
WRSD\SURSRVHGGLYLGHQGƶHSXUSRVHRIVHWWLQJXSWKHJHQHUDOUHVHUYHLVWRPHHWWKHSRWHQWLDOIXWXUHXQNQRZQFRPPLWPHQWV
Bank & Group
2019 2018
Rs 000 Rs 000

7UDQVIHUGXULQJWKH\HDU 4,500,000 5,200,000
44 RETAINED EARNINGS
Bank Group
2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000

Impact of adopting SLFRS 9 on opening retained earnings
5HVWDWHGEDODQFHXQGHU6/)56DVDWVW-DQXDU\ 5,643,642 3,946,288 8,481,881 6,345,363
3URƪWIRUWKH\HDU 11,150,887 12,142,817 11,668,190 12,605,869
'HIHUUHGWD[HƩHFW 409,588 14,403 414,447 13,582
Final dividend for 2017 : Scrip
Final dividend for 2018 : Scrip
Final dividend for 2018 : Cash
7UDQVIHUVWRUHVHUYHVGXULQJWKH\HDU
301
NOTES TO THE
45 COMMITMENTS AND CONTINGENCIES
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
Credit related commitments & contingencies

8QGUDZQGLUHFWFUHGLWIDFLOLWLHV 149,635,468 168,175,885 145,568,721 164,629,612
8QGUDZQLQGLUHFWFUHGLWIDFLOLWLHV 45,464,712 46,523,763 45,464,712 46,523,763
Acceptances 14,169,804 17,473,251 14,169,804 17,473,251
'RFXPHQWDU\FUHGLW 17,335,325 17,586,545 17,335,325 17,586,545
Guarantees 49,134,959 52,375,427 49,140,159 52,377,627
275,740,268 302,134,871 271,678,721 298,590,798
Other commitments & contingencies

&DSLWDOFRPPLWPHQWV1RWH 998,348 568,383 2,283,100 1,484,470
2SHUDWLQJOHDVHFRPPLWPHQWVDVOHVVHH1RWH 46,287 5,659,277 46,287 4,507,341
)RUZDUGH[FKDQJHFRQWUDFWV 13,218,467 20,740,947 13,218,467 20,740,947
&XUUHQF\6:$3V 102,830,358 68,092,400 102,830,358 68,092,400
117,093,460 95,061,007 118,378,212 94,825,158
Total gross commitments & contingencies 392,833,728 397,195,878 390,056,933 393,415,956

,PSDLUPHQWIRUH[SHFWHGFUHGLWORVVHVFUHGLWUHODWHGFRPPLWPHQWV
FRQWLQJHQFLHV1RWH
&RPPLWPHQWV FRQWLQJHQFLHVQHWRILPSDLUPHQWIRUH[SHFWHG
credit losses 391,416,500 396,011,791 388,639,429 392,231,869
45.1 Analysis of Credit Related Commitments and Contingencies based on the Exposure to Credit Risk
Bank

Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
8QGUDZQGLUHFWFUHGLWIDFLOLWLHV 139,207,771 9,645,331 782,366 149,635,468 168,175,885

8QGUDZQLQGLUHFWFUHGLWIDFLOLWLHV 38,762,823 6,564,389 137,500 45,464,712 46,523,763
Acceptances 10,903,440 3,266,364 14,169,804 17,473,251
'RFXPHQWDU\FUHGLW 16,376,063 959,262 17,335,325 17,586,545
Guarantees 41,667,165 6,138,420 1,329,374 49,134,959 52,375,427
Gross credit related commitments &
contingencies 246,917,262 26,573,766 2,249,240 275,740,268 302,134,871
Net credit related commitments & contingencies 246,141,398 26,276,643 1,904,999 274,323,040 300,950,784
302
Group

Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
8QGUDZQGLUHFWFUHGLWIDFLOLWLHV 135,137,757 9,648,598 782,366 145,568,721 164,629,612

8QGUDZQLQGLUHFWFUHGLWIDFLOLWLHV 38,762,823 6,564,389 137,500 45,464,712 46,523,763
Acceptances 10,903,440 3,266,364 14,169,804 17,473,251
'RFXPHQWDU\FUHGLW 16,376,063 959,262 17,335,325 17,586,545
Guarantees 41,672,365 6,138,420 1,329,374 49,140,159 52,377,627
Gross credit related commitments &
contingencies 242,852,448 26,577,033 2,249,240 271,678,721 298,590,798
Net credit related commitments & contingencies 242,076,467 26,279,751 1,904,999 270,261,217 297,406,711
45.2 Impairment for Expected Credit Losses - Credit Related Commitments and Contingencies
Bank Group
2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
Stage 1
Stage 2
1HWFKDUJHUHYHUVDOIRUWKH\HDU1RWH 65,906 66,065
Stage 3
Total
%DODQFHDVDWVW-DQXDU\ 1,184,087 789,085 1,184,087 789,085
303
NOTES TO THE
45 COMMITMENTS AND CONTINGENCIES CONTD.

45.3 Capital Commitments
&DSLWDOH[SHQGLWXUHDSSURYHGE\WKH%RDUGRI'LUHFWRUVIRUZKLFKSURYLVLRQVKDYHQRWEHHQPDGHLQWKHDFFRXQWVDUHGHWDLOHGEHORZ
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
Approved & contracted for 18,256 90,255 1,303,008 1,213,105

$SSURYHGEXWQRWFRQWUDFWHGIRU 980,092 478,128 980,092 271,365
998,348 568,383 2,283,100 1,484,470
45.4 Operating Lease Commitments - As Lessee
Bank Group
As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
/HVVWKDQ\HDU 46,287 1,227,552 46,287 1,078,880

\HDUV 3,409,638 2,261,299
0RUHWKDQ\HDUV 1,022,087 1,167,162
46,287 5,659,277 46,287 4,507,341
45.5 Other Contingent Liabilities

45.5.1 Litigation against the Bank
/LWLJDWLRQLVDFRPPRQRFFXUUHQFHLQWKHEDQNLQJLQGXVWU\GXHWRWKHQDWXUHRIWKHEXVLQHVVXQGHUWDNHQƶH%DQNKDVIRUPDOFRQWUROVDQG
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unresolved legal claims.
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D &DVH1R'05
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MXGJPHQWWRWKH&LYLO$SSHOODWH&RXUWV$SSHDOLVSHQGLQJ
E&DVH1R'05
ƶH3ODLQWLƩKDVDOOHJHGO\LQVWLWXWHGWKLVDFWLRQDJDLQVWWKH%DQNFODLPLQJDVXPRI5V0QDVGDPDJHVRQWKHEDVLVWKDWWKH%DQNKDV
LOOHJDOO\KDQGHGRYHUWKH&HUWLƪFDWHRI5HJLVWUDWLRQSHUWDLQLQJWRWKHYHKLFOHOHDVHGXQGHUWKH/HDVH$JUHHPHQW1R/6%/.XOLWR
WKHVSRXVHDQGWKHFRQVHQWOHWWHUJLYHQE\WKHVSRXVHLVFKDOOHQJHGLQ&RXUWVƶHMXGJHPHQWZDVGHOLYHUHGLQIDYRXURIWKH%DQNRQWK
)HEUXDU\
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F &DVH1R'05
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LQWHUHVWLQUHVSHFWRIWKHKRXVLQJORDQREWDLQHGE\KLPDQGKHVXƩHUHGGDPDJHVDVDUHVXOWRIWKDW+RZHYHUWKHOHWWHURIRƩHUFRQƪUPV
that the Bank has the right to increase the rate of interest.
G &DVH1R05
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&RXUWGLVPLVVHGWKH3ODLQWLƩ
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304
H '&&RORPER&DVH1R
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XQGHUWKHSURYLVLRQVRI$FW1RRIƶRXJKWKHFODLPLVODUJHWKHEDVLVRIWKHFDVHLVQRWIDYRXUDEOHWRWKH3ODLQWLƩVLQFHWKH%DQN
has acted all the time as per the provisions of law.
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FUHGLWEDODQFHRI5VDQGDVDUHVXOWWZRFKHTXHVLVVXHGE\KLPJRWUHWXUQHG
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2YHU5V0QLVGXHWRWKH%DQNIURPWKHVDLGFXVWRPHURQDFKDUJHEDFNFUHDWHGWKURXJKWKHSD\PHQWJDWHZD\ZKLFKZDVXWLOLVHGE\
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45.5.2 Litigation on Employment and Industrial Relations

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2019.
45.5.3 Litigation against the Group

2WKHUWKDQWKRVHGLVFORVHGDERYHWKHUHLVQRFDVHƪOHGDJDLQVWWKH*URXSZKLFKZRXOGKDYHPDWHULDOLPSDFWRQWKHƪQDQFLDOSRVLWLRQRIWKH
Group.
305
NOTES TO THE
46 RELATED PARTY DISCLOSURES

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46.1 Terms and Conditions

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46.2 Parent and Ultimate Controlling Party

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46.3 Transactions with Key Management Personnel (KMP)

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DQGUHVSRQVLELOLW\IRUSODQQLQJGLUHFWLQJDQGFRQWUROOLQJWKHDFWLYLWLHVRIWKHHQWLW\$FFRUGLQJWRWKHDERYHGHƪQLWLRQDSHUVRQFDQQRWEH
FRQVLGHUHGDVD.03XQOHVVVXFKSHUVRQKDVERWKWKHDXWKRULW\DQGUHVSRQVLELOLW\WRFDUU\RXWDOOWKHWKUHHDFWLYLWLHVPHQWLRQHGLQWKHDERYH
GHƪQLWLRQLHSODQQLQJGLUHFWLQJDQGFRQWUROOLQJWKHDFWLYLWLHVRIWKHHQWLW\
$FFRUGLQJO\WKH%RDUGRI'LUHFWRUVRIWKH%DQNDUHFRQVLGHUHGDV.03RIWKH%DQNDQGWKH*URXS
46.3.1 Compensation to KMP
Bank Group
Rs 000 Rs 000 Rs 000 Rs 000
6KRUWWHUPHPSOR\PHQWEHQHƪWV
'LUHFWRUV
IHHV H[SHQVHV 82,852 64,398 87,767 72,457
6KRUWWHUPEHQHƪWV 43,331 44,352 43,331 44,352
3RVWHPSOR\PHQWEHQHƪWV 3,692 3,356 3,692 3,356
Total 129,875 112,106 134,790 120,165
,QDGGLWLRQWRWKHDERYHWKH%DQNKDVDOVRSDLGQRQFDVKEHQHƪWVVXFKDVIXHOPHGLFDOEHQHƪWVWR.03ZKRDUHHPSOR\HHVRIWKH%DQNLQ
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306
46.3.2 Transactions with KMP and their Close Family Members (CFMs)
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WKHHQWLW\ƶH\PD\LQFOXGH.03ţVVSRXVHFKLOGUHQGRPHVWLFSDUWQHUFKLOGUHQRIWKH.03ţVVSRXVHGRPHVWLFSDUWQHUDQGGHSHQGHQWVRIWKH
.03.03
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Limit Closing Average Limit Closing Average
Balance Balance Balance Balance
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Loans & advances 39,600 38,231 25,546 4,000 12,831

Credit cards 7,920 2,074 1,664 7,575 1,314 1,225
Deposits 147,277 247,963 279,515 280,748

Rs 000 Rs 000
Interest & other income 3,468 2,333

,QWHUHVWH[SHQVHV 14,507 25,940
Cash dividend paid 263
6FULSGLYLGHQGSDLG1XPEHURIVKDUHV 2,150 2,501
1RORVVHVKDYHEHHQUHFRUGHGDJDLQVWORDQEDODQFHVRXWVWDQGLQJZLWK.03GXULQJWKHSHULRGDQGQRVSHFLƪFSURYLVLRQVKDYHEHHQPDGH
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46.4 Transactions with Subsidiaries

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2019 2018
Subsidiary Company 1DWXUHRI)DFLOLW\7UDQVDFWLRQ Average 31st December Average 31st December
Rs 000 Rs 000 Rs 000 Rs 000
Siyapatha Finance PLC As at

Loans & advances 5,226,972 6,231,815 3,305,329 5,278,669
Deposits 10,050 6,247 917 1,660
2WKHUOLDELOLWLHV 8,269 223,376 10,586
Commitment & contingencies 4,000
For the year ended
'LYLGHQGLQFRPH*URVV 36,344 69,721
Income & fees received 827,795 422,706
([SHQVHV IHHVSDLG 4,411 23,749
Sampath Centre Ltd As at
Loans & advances 480,967 601,381 60,092 300,460
Other assets 62,754 62,754 62,896 63,192
Deposits 301,128 156,077 364,669 349,413
2WKHUOLDELOLWLHV 48,703 41,331 79,762 48,485
For the year ended
'LYLGHQGLQFRPH*URVV 42,788 34,001
Income & fees received 75,298
307
NOTES TO THE
46 RELATED PARTY DISCLOSURES CONTD.
2019 2018
Subsidiary Company 1DWXUHRI)DFLOLW\7UDQVDFWLRQ Average 31st December Average 31st December
Rs 000 Rs 000 Rs 000 Rs 000
S C Securities (Pvt) Ltd As at

Loans & advances 28,829 38,619 18,683 48,968
Deposits 18,548 14,891 31,163 38,709
Other assets 40 12 62
Commitment & contingencies 1,750 1,750 1,750 1,750
For the year ended
Sampath Information As at
Technology Solutions Ltd Loans & advances 233,234 161,821 368,214 304,502
Deposits 15,546 112 6,064 4,501
Commitment & contingencies 22,941 2,781 15,088 7,285
For the year ended
([SHQVHV IHHVSDLG
H[FOXGLQJUHLPEXUVHPHQWRI
H[SHQVHV 315,195 240,373
Purchase of computer
hardware &
software 78,873 50,305
ƶH'LUHFWRUV
YDOXDWLRQRILQYHVWPHQWVLQVXEVLGLDULHVKDVEHHQFDUULHGRXWRQQHWDVVHWEDVLVDVDWVW'HFHPEHU'XULQJWKH\HDUWKH
%DQNUHYHUVHG5V0QIURPWKHFXPXODWLYHSURYLVLRQPDGHDVDWVW'HFHPEHU5V0QDJDLQVWWKHLQYHVWPHQWLQ6&6HFXULWLHV
3YW/WG([FHSWIRU6&6HFXULWLHV3YW/WGQRVSHFLƪFSURYLVLRQKDVEHHQPDGHXQGHULPSDLUPHQWORVVHVDJDLQVWEDODQFHVZLWKVXEVLGLDULHV
as at the reporting date.
46.5 Transactions with Other Related Parties

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Average Closing Average Closing
Rs 000 Rs 000 Rs 000 Rs 000
Loans & advances 6,367 5,529 1,951

'RFXPHQWDU\FUHGLWV 666,250 887,500 20,566
Deposits 473,029 296,923 329,617 481,820

Rs 000 Rs 000
Interest & other income 755 797

,QWHUHVWH[SHQVH 16,654 6,550
Cash dividend 2
6FULSGLYLGHQGSDLG1XPEHURIVKDUHV 13 15
1RORVVHVKDYHEHHQUHFRUGHGDJDLQVWORDQEDODQFHVRXWVWDQGLQJZLWKWKHHQWLWLHVFRQWUROOHGMRLQWO\FRQWUROOHGE\.03&)0VRI.03GXULQJ
WKHSHULRGDQGQRVSHFLƪFSURYLVLRQVKDYHEHHQPDGHXQGHULPSDLUPHQWORVVHVDJDLQVWVXFKEDODQFHVDVDWWKHUHSRUWLQJGDWH
308
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2019 2018
Name of the Post Employment Nature of Transactions Average 31st December Average 31st December
%HQHƪW3ODQ Balance Balance Balance Balance
Rs 000 Rs 000 Rs 000 Rs 000
Sampath Bank Employees' As at

Provident Fund Deposits 1,861,742 2,183,098 2,807,892 2,911,005
'HEHQWXUHV 911,796 376,200 670,071 671,582
,QWHUHVWSD\DEOH 113,087 84,638 114,525 197,391
For the year ended
,QWHUHVWH[SHQVHV 294,391 385,229
Sampath Bank Employees' As at

Pension Fund* Deposits 1,244,211 1,436,992 1,912,304 1,547,079
'HEHQWXUHV 615,700 155,000 589,400 589,400
Investment in Sampath Bank
6KDUHVPDUNHWYDOXH 646,073 625,058 952,163 823,174
Investment in repo 8,917 74,869 14,000
,QWHUHVWSD\DEOH 90,028 51,291 97,767 109,784
1HWOLDELOLW\LQWKH%DQN
V
Financial Statements
1RWH 1,467,877 2,097,981 676,886 837,772
For the year ended
'LYLGHQGSDLG&DVK*URVV 17,514
6FULSGLYLGHQG1XPEHURI
VKDUHV 144,015 168,991
ƶHIXQGVXEVFULEHGIRUWKH5LJKWVLVVXHVRIWKH%DQNGXULQJWKH\HDUVHQGHGVW'HFHPEHU $FFRUGLQJO\DQG
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309
NOTES TO THE
47 SEGMENT INFORMATION
ACCOUNTING POLICY
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y Banking
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are not allocated to operating segments.
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parties.
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2019 or 2018.
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310
Banking Leasing, Hire purchase & 'HDOLQJ,QYHVWPHQW Other (OLPLQDWLRQV8QDOORFDWHG Total
Factoring
For the year ended 31st December 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Net interest income 34,232,485 31,824,006 4,446,222 3,951,054 6,085,063 5,097,144 44,763,770 40,872,204
Dividend income 144,118 154,612 144,118 154,612

Net fee & commission income 9,836,331 9,767,212 506,288 429,353 46,063 31,042 10,388,682 10,227,607
)RUHLJQH[FKDQJHSURƪW 315,745 2,493,351 2,477,010 2,997,496 1,946 2,792,755 5,492,793
Other income 284,460 120,726 378,484 288,648 286,655 102,446 161,510 1,052,045 485,634
7RWDOUHYHQXHIURPH[WHUQDOFXVWRPHUV 44,669,021 44,205,295 5,330,994 4,669,055 9,038,909 8,195,044 102,446 163,456 59,141,370 57,232,850
Inter segment revenue 190,264 163,167 630,440 570,984
Total operating income 44,859,285 44,368,462 5,330,994 4,669,055 9,038,909 8,195,044 732,886 734,440 59,141,370 57,232,850
Less: Impairment charge 11,637,084 10,763,354 1,761,106 1,034,653 342,228 277,128 10,159 63,575 13,750,577 12,138,710
Net operating income 33,222,201 33,605,108 3,569,888 3,634,402 8,696,681 7,917,916 722,727 670,865 45,390,793 45,094,140

/HVV7RWDORSHUDWLQJH[SHQVHV 17,389,319 16,660,145 1,535,285 1,792,286 3,107,927 2,418,911 603,387 581,450 21,900,564 20,823,969
Segment result 15,832,882 16,944,963 2,034,603 1,842,116 5,588,754 5,499,005 119,340 89,415 23,490,229 24,270,171
/HVV7D[HVRQƪQDQFLDOVHUYLFHV 7,151,844 5,148,806
/HVV,QFRPHWD[H[SHQVH 4,670,195 6,515,496
3URƪWIRUWKH\HDU 11,668,190 12,605,869
Non controlling interest
3URƪWDWWULEXWDEOHWRHTXLW\KROGHUVRIWKH
Bank 11,668,190 12,605,869
311
As at 31st December 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018
Segment assets 711,302,863 675,846,736 71,937,549 59,710,978 193,134,924 186,956,649 7,103,347 6,512,334 972,072,427 919,677,848
Unallocated assets 27,250,679 28,107,369 27,250,679 28,107,369
Total assets 711,302,863 675,846,736 71,937,549 59,710,978 193,134,924 186,956,649 7,103,347 6,512,334 15,844,423 18,758,520 999,323,106 947,785,217

6HJPHQWOLDELOLWLHV 556,594,154 545,258,082 79,480,577 64,830,770 257,304,814 252,461,666 2,500,092 2,212,464 887,866,479 857,734,563
Risk & Governance
8QDOORFDWHGOLDELOLWLHV
Total liabilities 556,594,154 545,258,082 79,480,577 64,830,770 257,304,814 252,461,666 2,500,092 2,212,464 887,866,479 857,734,563
For the year ended 31st December 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018
&DVKƫRZVIURPRSHUDWLQJDFWLYLWLHV 19,207,259 5,417,305 501,407 402,920 4,915,836 19,508,064
&DVKƫRZVIURPLQYHVWLQJDFWLYLWLHV 22,518
&DVKƫRZVIURPƪQDQFLQJDFWLYLWLHV 9,219,231 14,282,159 5,678,399 250,537 8,595,284 14,389,803
&DSLWDOH[SHQGLWXUH
NOTES TO THE
48 EVENTS AFTER THE REPORTING PERIOD
ACCOUNTING POLICY
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the Financial Statements are authorised for issue.
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48.1 Bank
48.1.1 Proposed Dividend
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48.1.2 New Amendments to Income Tax Law Announced by the Government

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income.
49 FAIR VALUE OF ASSETS AND LIABILITIES

49.1 Assets & Liabilities Recorded at Fair Value
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Derivatives - Assets & Liabilities

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Financial Assets - Fair Value through Other Comprehensive Income

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XVLQJWKH\LHOGFXUYHSXEOLVKHGE\WKH&HQWUDO%DQNRI6UL/DQND4XRWHGHTXLW\VHFXULWLHVDUHYDOXHGXVLQJTXRWHGPDUNHWSULFHVLQWKHDFWLYH
markets as at the reporting date.
312
Trading Assets Measured at Fair Value

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as at the reporting date.
Property, Plant & Equipment

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49.2 Valuation Model

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E\WKHYDOXHUVDUHEDVHGRQDFWLYHPDUNHWSULFHVVLJQLƪFDQWO\DGMXVWHGIRUGLƩHUHQFHLQWKHQDWXUHORFDWLRQRUFRQGLWLRQRIWKHVSHFLƪF
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49.3 Valuation Framework

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y 3HULRGLFDWOHDVWDQQXDOO\UHYLHZLQJRIIDLUYDOXHPHDVXUHPHQWPRGHOVDJDLQVWFKDQJHVLQPDUNHWFRQGLWLRQVVLJQLƪFDQWMXGJPHQWVDQG
assumptions.
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49.4 Assets & Liabilities Measured at Fair Value - Fair Value Hierarchy
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313
49 FAIR VALUE OF ASSETS AND LIABILITIES CONTD.
49.4.1 Assets & Liabilities Measured at Fair Value - Fair Value Hierarchy
Bank

Fair Value Measurement Using Fair Value Measurement Using
Date of Quoted Prices in 6LJQLƪFDQW 6LJQLƪFDQW Total Quoted Prices in 6LJQLƪFDQW 6LJQLƪFDQW Total
Valuation Active Markets Observable Unobservable Active Markets Observable Unobservable
Inputs Inputs Inputs Inputs
(Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3)
Financial assets measured at fair value

'HULYDWLYHƪQDQFLDOLQVWUXPHQWV VW'HFHPEHU
&XUUHQF\6:$3V 842,355 842,355 1,123,941 1,123,941
)RUZDUGH[FKDQJHFRQWUDFWV 20,399 20,399 47,096 47,096
Sub Total 862,754 862,754 1,171,037 1,171,037
)LQDQFLDODVVHWVIDLUYDOXHWKURXJKSURƪWRUORVV VW'HFHPEHU
Government securities 11,057,953 11,057,953 27,647,228 27,647,228
4XRWHGHTXLW\VHFXULWLHV 72,277 72,277 73,018 73,018
Sub Total 11,130,230 11,130,230 27,720,246 27,720,246
Financial assets - fair value through other

comprehensive income VW'HFHPEHU
314
4XRWHGHTXLW\VHFXULW\ 1,871,878 1,871,878 2,432,869 2,432,869
8QTXRWHGHTXLW\VHFXULWLHV 39,322 39,322 36,582 36,582
Sub Total 17,292,402 39,322 17,331,724 27,480,723 36,582 27,517,305
NOTES TO THE
7RWDOƪQDQFLDODVVHWVPHDVXUHGDWIDLUYDOXH 28,422,632 862,754 39,322 29,324,708 55,200,969 1,171,037 36,582 56,408,588
1RQƪQDQFLDODVVHWVPHDVXUHGDWIDLUYDOXH VW'HFHPEHU

)UHHKROGODQG EXLOGLQJVLQFOXGHGXQGHUSURSHUW\SODQW
HTXLSPHQW 5,870,275 5,870,275 5,005,897 5,005,897
7RWDOQRQƪQDQFLDODVVHWVPHDVXUHGDWIDLUYDOXH 5,870,275 5,870,275 5,005,897 5,005,897
Financial liabilities measured at fair value

&XUUHQF\6:$3V 574,573 574,573 2,504,242 2,504,242
7RWDOƪQDQFLDOOLDELOLWLHVPHDVXUHGDWIDLUYDOXH 604,069 604,069 2,952,319 2,952,319
ƶHUHZHUHQRPDWHULDOWUDQVIHUVEHWZHHQOHYHOVRIIDLUYDOXHKLHUDUFK\GXULQJDQG
49.4.2 Assets & Liabilities Measured at Fair Value - Fair Value Hierarchy
Group

Fair Value Measurement Using Fair Value Measurement Using
Date of Quoted Prices in 6LJQLƪFDQW 6LJQLƪFDQW Total Quoted Prices in 6LJQLƪFDQW 6LJQLƪFDQW Total
Valuation Active Markets Observable Unobservable Active Markets Observable Unobservable
Inputs Inputs Inputs Inputs
(Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3)

Financial assets measured at fair value

&XUUHQF\6:$3V 842,355 842,355 1,123,941 1,123,941
Sub Total 862,754 862,754 1,171,037 1,171,037
)LQDQFLDODVVHWVIDLUYDOXHWKURXJKSURƪWRUORVV VW'HFHPEHU
4XRWHGHTXLW\VHFXULWLHV 72,277 72,277 73,018 73,018
Sub Total 11,130,230 11,130,230 27,720,246 27,720,246
Financial assets - fair value through other

comprehensive income VW'HFHPEHU
4XRWHGHTXLW\VHFXULW\ 1,871,878 1,871,878 2,432,869 2,432,869
8QTXRWHGHTXLW\VHFXULWLHV 39,378 39,378 36,638 36,638
315
Sub Total 17,292,402 39,378 17,331,780 27,480,723 36,638 27,517,361
7RWDOƪQDQFLDODVVHWVPHDVXUHGDWIDLUYDOXH 28,422,632 862,754 39,378 29,324,764 55,200,969 1,171,037 36,638 56,408,644
1RQƪQDQFLDODVVHWVPHDVXUHGDWIDLUYDOXH VW'HFHPEHU
)UHHKROGODQG EXLOGLQJVLQFOXGHGXQGHUSURSHUW\SODQW
HTXLSPHQW 10,424,624 10,424,624 9,294,934 9,294,934

7RWDOQRQƪQDQFLDODVVHWVPHDVXUHGDWIDLU
value 10,424,624 10,424,624 9,294,934 9,294,934
Risk & Governance
Financial liabilities measured at fair value

&XUUHQF\6:$3V 574,573 574,573 2,504,242 2,504,242
7RWDOƪQDQFLDOOLDELOLWLHVPHDVXUHGDWIDLUYDOXH 604,069 604,069 2,952,319 2,952,319
ƶHUHZHUHQRPDWHULDOWUDQVIHUVEHWZHHQOHYHOVRIIDLUYDOXHKLHUDUFK\GXULQJDQG
NOTES TO THE

49.5 Level 3 Fair Value Measurement
49.5.1 Reconciliation
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IDLUYDOXHKLHUDUFK\
Bank Group
Assets Measured at Level 3 Assets Measured at Level 3
Unquoted Freehold Land Unquoted Freehold Land
Equity and Buildings Equity and Buildings
Securities Securities
Rs 000 Rs 000 Rs 000 Rs 000
%DODQFHDVDWVW-DQXDU\ 30,608 4,901,678 30,664 9,275,878

Additions 6,407 16,520 6,407 16,625
Disposals/deductions
7RWDOJDLQORVVUHFRJQLVHGLQSURƪWRUORVV
'HSUHFLDWLRQRIEXLOGLQJV
7UDQVIHUVDQGRWKHUDGMXVWPHQWV 192 124,760 192 124,760
%DODQFHDVDWVW'HFHPEHU 36,582 5,005,897 36,638 9,294,934
Additions 2,750 88,659 2,750 88,659
Revaluation surplus credited to revaluation reserve 811,874 1,207,274
7RWDOJDLQORVVUHFRJQLVHGLQSURƪWRUORVV
5HYHUVDORILPSDLUPHQWFKDUJHIRUWKH\HDU1RWH 4,632 4,632
'HSUHFLDWLRQRIEXLOGLQJV
7UDQVIHUVDQGRWKHUDGMXVWPHQWV
%DODQFHDVDWVW'HFHPEHU 39,322 5,870,275 39,378 10,424,624
316
49.5.2 Unobservable Inputs Used In Measuring Fair Value

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Assets Measured at Level 3

Type of Asset Bank Group Valuation 6LJQLƪFDQW Weighted Fair Value
Fair Value as at Fair Value as at Technique Unobservable Average Range Measurement
31st December 31st December Inputs of Estimates for Sensitivity to
2019 2019 Unobservable Unobservable
Inputs Inputs
Rs 000 Rs 000
Property, plant &

equipment
)UHHKROGODQGV 4,418,805 7,464,206 Market Estimated price 5V *
FRPSDUDEOH per perch 17,000,000
method
)UHHKROGEXLOGLQJV 1,451,470 2,960,418 Market Estimated price 5V *

FRPSDUDEOH per sq.ft 20,102
method
,QFRPHEDVLV Estimated rental
value per sq.ft
Bank 5V
6XEVLGLDU\ 5V
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rental growth
Bank *
6XEVLGLDU\ *
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317
NOTES TO THE

49.6 Fair Value of Financial Assets and Liabilities Carried at Amortised Cost
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Assets of which Fair Value Approximates Carrying Value

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Fixed Rate Financial Instruments

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Variable Rate Financial Instruments

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instruments.
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318
Bank Group
Fair Value Carrying Fair Value Carrying
Value Value
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Financial Assets
loans & advances 690,192,102 690,192,102 689,377,504 720,992,710 720,992,710 719,046,634
GHEW RWKHULQVWUXPHQWV 157,195,901 157,195,901 156,293,495 157,210,841 157,210,841 156,308,796
847,388,003 847,388,003 845,670,999 878,203,551 878,203,551 875,355,430
GXHWRGHSRVLWRUVƪ[HG FHUWLƪFDWHRIGHSRVLWV 464,406,797 464,406,797 463,712,164 477,384,710 477,384,710 476,661,882
GXHWRRWKHUERUURZHUV 55,664,651 55,664,651 55,661,729 67,322,809 67,322,809 67,311,166
GXHWRGHEWVHFXULWLHVKROGHUV 38,543,541 38,543,541 37,642,049 42,300,404 42,300,404 41,371,586
558,614,989 558,614,989 557,015,942 587,007,923 587,007,923 585,344,634
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319
Assets Liabilities
Cash & cash equivalents 'XHWREDQNV

Balances with Central Bank of Sri Lanka Securities sold under repurchase agreements

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Risk & Governance
Reverse repurchase agreements 'LYLGHQGSD\DEOH

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Bank Group
Fair Value Carrying Fair Value Carrying
Value Value
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Financial assets
loans & advances 647,174,527 647,174,527 650,013,638 675,921,253 675,921,253 677,538,424
768,993,230 768,993,230 771,119,030 797,744,492 797,744,492 798,648,135
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deposits 455,670,889 455,670,889 455,623,026 465,496,559 465,496,559 465,128,753
544,619,707 544,619,707 545,571,432 570,294,762 570,294,762 571,502,298
320
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NOTES TO THE
Assets Liabilities

Cash & cash equivalents 'XHWREDQNV
Balances with Central Bank of Sri Lanka Securities sold under repurchase agreements
3ODFHPHQWVZLWKEDQNV Savings, demand, call & margin deposits
Reverse repurchase agreements 'LYLGHQGSD\DEOH
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50 RISK MANAGEMENT
50.1 Introduction
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Page No
50.2 Credit Risk 322

$VVHVVPHQWRI([SHFWHG&UHGLW/RVVHV 322
&UHGLWŠUHODWHG&RPPLWPHQWV5LVNV 325
50.2.3 Collateral and Other Credit Enhancements 326
$QDO\VLVRI5LVN&RQFHQWUDWLRQ 329
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,QGXVWU\$QDO\VLV 331
50.2.5 Commitments and Contingencies 333
50.3 Liquidity Risk and Funding Management 333

6WDWXWRU\/LTXLG$VVHWV5DWLR6/$5 333
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$QDO\VLVRI)LQDQFLDO$VVHWVDQG/LDELOLWLHVE\5HPDLQLQJ&RQWUDFWXDO0DWXULWLHV 334
50.3.4 Remaining Contractual Maturities of Commitments and Contingencies 338
50.4 Market Risk 340

50.4.1 Interest Rate Risk 340
&XUUHQF\5LVN 345
(TXLW\3ULFH5LVN 346
50.5 Operational Risk 346

50.6 Capital Management 346
Risk Management Framework

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Integrated Risk Management Unit

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321
NOTES TO THE
50 RISK MANAGEMENT CONTD.
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Risk Measurement and Reporting

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Risk Mitigation
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50.2 Credit Risk

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credit risk.
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50.2.1 Assessment of Expected Credit Losses

50.2.1(a) Analysis of the total impairment for expected credit losses is as follows.
Bank

Note Stage 1 Stage 2 Stage 3 Total Total
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Cash & cash equivalents 20.2 13,739 13,739 18,200

3ODFHPHQWVZLWKEDQNV 22.2 611 611 2,195
ORDQV DGYDQFHV 25.2 3,838,089 5,516,738 20,891,363 30,246,190 20,294,845
GHEW RWKHULQVWUXPHQWV 26.4 638,588 254,784 893,372 551,144
Credit related commitments &
contingencies 45.2 775,864 297,123 344,241 1,417,228 1,184,087
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losses 5,266,891 5,813,861 21,490,388 32,571,140 22,050,471
322
Group

Note Stage 1 Stage 2 Stage 3 Total Total
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Cash & cash equivalents 20.2 13,750 13,750 18,203

3ODFHPHQWVZLWKEDQNV 22.2 611 611 2,195
ORDQV DGYDQFHV 25.2 3,930,386 5,642,568 22,458,317 32,031,271 21,887,238
GHEW RWKHULQVWUXPHQWV 26.4 638,588 254,784 893,372 551,144
Credit related commitments &
contingencies 45.2 775,981 297,282 344,241 1,417,504 1,184,087
7RWDODOORZDQFHIRUH[SHFWHGFUHGLW
losses 5,359,316 5,939,850 23,057,342 34,356,508 23,642,867
50.2.1(b) Movement of the total allowance for expected credit losses during the period
Bank Group
Rs 000 Rs 000 Rs 000 Rs 000

1HWFKDUJHIRUWKH\HDU 12,583,876 11,224,414 13,740,418 12,075,135
:ULWHRƩGXULQJWKH\HDU 25.2
Interest income accrued on impaired loans & advances 7.1
Other movements 25.2 1,627,764 834,405 1,669,764 834,405
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50.2.1(d) Sensitivity Analysis: Impact of staging of loans on collective impairment

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323
NOTES TO THE

50.2.1(e) Sensitivity Analysis: Impact on collective impairment due to changes in forward looking information
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50.2.1(f ) Loans past due but not impaired

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Bank Group
31 - 60 Days 61 - 90 Days Total 31 - 60 Days 61 - 90 Days Total
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Term loans 92,122,976 145,164 92,268,140 93,404,000 288,087 93,692,087

Overdraft 11,083,219 659,282 11,742,501 11,083,219 659,282 11,742,501
Import loans 10,449,999 127,184 10,577,183 10,449,999 127,184 10,577,183
Others 18,101,859 522,477 18,624,336 22,361,817 4,240,255 26,602,072
131,758,053 1,454,107 133,212,160 137,299,035 5,314,808 142,613,843
Bank Group
31 - 60 Days 61 - 90 Days Total 31 - 60 Days 61 - 90 Days Total
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Term loans 41,662,125 178,932 41,841,057 42,759,083 364,389 43,123,472

Overdraft 11,240,904 1,203,284 12,444,188 11,240,904 1,203,284 12,444,188
Import loans 4,251,171 411,663 4,662,834 4,251,171 411,663 4,662,834
Others 8,742,978 1,086,599 9,829,577 12,779,192 3,889,893 16,669,085
65,897,178 2,880,478 68,777,656 71,030,350 5,869,229 76,899,579
324
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Amortised Cost Impairment for ECL Net Carrying

Stage 2 Stage 3 Total Stage 2 Stage 3 Total Value
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Bank 65,927,802 12,552,441 78,480,243 2,316,132 4,073,140 6,389,272 72,090,971
Group 66,245,290 13,212,104 79,457,394 2,319,881 4,142,614 6,462,495 72,994,899
Amortised Cost Impairment for ECL Net Carrying

Stage 2 Stage 3 Total Stage 2 Stage 3 Total Value
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Bank 27,993,295 4,617,556 32,610,851 807,386 1,769,089 2,576,475 30,034,376
Group 28,256,539 5,125,887 33,382,426 810,682 1,869,258 2,679,940 30,702,486
50.2.2 Credit–related Commitments Risks

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325
NOTES TO THE

50.2.3 Collateral and Other Credit Enhancements
50.2.3(a) Net exposure to credit risk
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For commercial lending: FKDUJHVRYHUUHDOHVWDWHSURSHUWLHVLQYHQWRU\DQGWUDGHUHFHLYDEOHVVKDUHVHWF
For retail lending: mortgages over residential properties, motor vehicles, gold etc.
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Bank

Note Maximum Net Exposure Maximum Net Exposure
Exposure to Exposure to
Credit Risk Credit Risk
Rs 000 Rs 000 Rs 000 Rs 000
Financial Assets
Reverse repurchase agreements 500,124
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 23 862,754 862,754 1,171,037 1,171,037
measured at fair value 24 11,130,230 11,130,230 27,720,246 27,720,246
ORDQV DGYDQFHV 25 719,623,694 266,096,658 670,308,483 287,181,111
GHEW RWKHULQVWUXPHQWV 26 157,186,867 150,659,660 121,656,536 116,496,094
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income 27 17,331,724 17,331,724 27,517,305 27,517,305
Other assets 7,152,067 7,152,067 5,434,982 5,434,982
938,342,167 463,042,875 882,127,989 478,328,803
326
Group

Note Maximum Net Exposure Maximum Net Exposure
Exposure to Exposure to
Credit Risk Credit Risk
Rs 000 Rs 000 Rs 000 Rs 000
Financial Assets
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 23 862,754 862,754 1,171,037 1,171,037
measured at fair value 24 11,130,230 11,130,230 27,720,246 27,720,246
ORDQV DGYDQFHV 25 751,077,905 266,834,878 699,425,662 284,187,420
GHEW RWKHULQVWUXPHQWV 26 157,202,168 150,674,961 121,660,855 116,500,413
)LQDQFLDODVVHWVIDLUYDOXHWKURXJKRWKHUFRPSUHKHQVLYH
income 27 17,331,780 17,331,780 27,517,361 27,517,361
Other assets 7,522,839 7,522,839 5,845,058 5,845,058
972,675,332 464,205,698 913,584,649 475,756,008
$SSUR[LPDWHO\DQGRIWKHORDQV DGYDQFHVRIWKH%DQN*URXSDUHVHFXUHGDJDLQVWLPPRYDEOHSURSHUW\DQGFDVKGHSRVLWV
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327
NOTES TO THE

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ƶHDPRXQWRIWKHƪQDQFLDOFROODWHUDOUHFHLYHGRUSOHGJHGVXEMHFWWRQHWWLQJDUUDQJHPHQWVEXWQRWTXDOLƪHGIRURƩVHWWLQJDUHGLVFORVHGEHORZ
Bank

Gross Amount Net Gross Amount Net
Amount Subject to Amount Amount Subject to Amount
Netting but do Netting but do
not Qualify for not Qualify for
2ƩVHWWLQJ 2ƩVHWWLQJ
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Financial Assets
Loans & advances 52,485,553 39,834,185 12,651,368 58,642,583 42,629,826 16,012,757
Securities sold under repurchase
agreements 16,398,511 16,398,511 13,732,205 13,732,205
Group

Gross Amount Net Gross Amount Net
Amount Subject to Amount Amount Subject to Amount
Netting but do Netting but do
not Qualify for not Qualify for
2ƩVHWWLQJ 2ƩVHWWLQJ
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Financial Assets
Loans & advances 52,933,868 40,057,681 12,876,187 59,916,005 43,125,497 16,790,508
agreements 16,384,511 16,384,511 13,709,472 13,709,472
328
50.2.4 Analysis of Risk Concentration

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50.2.4.1 Geographical Distribution

(a) Bank

Sri Lanka Overseas Total Sri Lanka Overseas Total
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Financial Assets
Cash & cash equivalents 15,377,204 2,411,972 17,789,176 15,271,319 3,780,636 19,051,955
3ODFHPHQWVZLWKEDQNV 181,020 7,070,285 7,251,305 1,831,313 6,915,613 8,746,926
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 799,506 63,248 862,754 1,144,244 26,793 1,171,037
ORVVPHDVXUHGDWIDLUYDOXH 11,130,230 11,130,230 27,720,246 27,720,246
ORDQV DGYDQFHV 665,140,860 24,236,644 689,377,504 630,110,241 19,903,397 650,013,638
comprehensive income 15,458,658 1,873,066 17,331,724 25,083,237 2,434,068 27,517,305
Other assets 6,238,357 913,710 7,152,067 4,702,420 732,562 5,434,982
Total 901,647,600 36,568,925 938,216,525 864,026,312 33,793,069 897,819,381
3URYLQFLDOEUHDNGRZQIRUORDQV DGYDQFHVZLWKLQ6UL/DQND
Province Bank
2019 2018
Rs 000 Rs 000
Central 44,213,075 41,472,098

Eastern 13,459,293 11,941,418
North Central 14,087,045 12,553,310
North Western 32,402,105 30,036,105
Northern 12,291,936 11,326,442
6DEDUDJDPXZD 14,355,439 13,090,474
Southern 29,979,357 29,986,943
Uva 12,031,380 12,036,745
Western 492,321,230 467,666,706
Total 665,140,860 630,110,241
329
NOTES TO THE

(b) Group

Sri Lanka Overseas Total Sri Lanka Overseas Total
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Financial Assets
Cash & cash equivalents 15,565,626 2,411,972 17,977,598 15,437,619 3,780,635 19,218,254
3ODFHPHQWVZLWKEDQNV 181,020 7,070,285 7,251,305 1,831,312 6,915,614 8,746,926
Reverse repurchase agreements 2,304,392 2,304,392 2,258,852 2,258,852
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 799,506 63,248 862,754 1,144,244 26,793 1,171,037
Financial assets recognised through
SURƪWRUORVVPHDVXUHGDWIDLUYDOXH 11,130,230 11,130,230 27,720,246 27,720,246
ORDQV DGYDQFHV 694,809,990 24,236,644 719,046,634 657,635,027 19,903,397 677,538,424
Other assets 6,609,129 913,710 7,522,839 5,112,496 732,562 5,845,058
Total 934,195,673 36,568,925 970,764,598 893,890,576 33,793,069 927,683,645
3URYLQFLDOEUHDNGRZQIRUORDQV DGYDQFHVZLWKLQ6UL/DQND
Province Group
2019 2018
Rs 000 Rs 000
Central 48,891,794 45,370,910

Eastern 16,695,317 14,769,208
North Central 15,517,479 13,799,480
North Western 36,291,525 33,375,556
Northern 12,855,557 11,648,448
6DEDUDJDPXZD 16,483,770 14,929,307
Southern 32,685,480 32,324,661
Uva 12,448,131 12,424,645
Western 502,940,937 478,992,812
Total 694,809,990 657,635,027
330
50.2.4.2 Industry Analysis
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(a) Bank - as at 31st December 2019
Agriculture Manufacturing Tourism Transport Construction Infrastructure Traders Banks, Other Consumers Total
& Related Financial Services
& Business
Services
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Financial Assets
Cash & cash equivalents 17,789,176 17,789,176
Balances with Central Bank of Sri Lanka 31,028,270 31,028,270
3ODFHPHQWVZLWKEDQNV 7,251,305 7,251,305

'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 108 11,575 851,071 862,754
SURƪWRUORVVPHDVXUHGDWIDLUYDOXH 11,125,932 4,298 11,130,230
ORDQV DGYDQFHV 57,887,707 87,260,770 56,229,089 8,084,516 92,692,670 67,915,424 129,473,314 39,821,490 53,955,758 96,056,766 689,377,504
GHEW RWKHULQVWUXPHQWV 24,258 303,678 155,965,559 156,293,495
)LQDQFLDODVVHWVIDLUYDOXHWKURXJK
other comprehensive income 17,292,402 39,322 17,331,724
Other assets 18,115 6,480,548 653,404 7,152,067
331
Total 57,912,073 87,260,770 56,247,204 8,084,516 92,996,348 67,915,424 129,484,889 287,605,753 54,652,782 96,056,766 938,216,525
(b) Bank - as at 31st December 2018
Agriculture Manufacturing Tourism Transport Construction Traders Banks, Government Other Consumers Total
& Related & Financial Services
Infrastructure & Business

Services
Risk & Governance
Financial Assets
3,173 2,904 1,164,960 1,171,037
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV
SURƪWRUORVVPHDVXUHGDWIDLUYDOXH 68,842 27,647,229 4,175 27,720,246
ORDQV DGYDQFHV 45,313,839 95,357,748 51,875,386 9,335,349 127,198,190 132,211,060 48,123,256 15,535,474 46,223,825 78,839,511 650,013,638
GHEW RWKHULQVWUXPHQWV 32,709 509,847 547,047 723,486 7,671,829 111,620,474 121,105,392
other comprehensive income 2,432,869 25,047,854 36,582 27,517,305
Other assets 1,111,608 3,263,769 1,059,605 5,434,982
Total 45,349,721 95,867,595 51,875,386 9,335,349 127,745,237 132,937,450 88,872,369 219,672,576 47,324,187 78,839,511 897,819,381
(c) Group - as at 31st December 2019
Agriculture Manufacturing Tourism Transport Construction Infrastructure Traders Banks, Other Consumers Total
& Related Financial Services
& Business
Services
Financial Assets
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 108 11,575 851,071 862,754
SURƪWRUORVVPHDVXUHGDWIDLUYDOXH 11,125,932 4,298 11,130,230
ORDQV DGYDQFHV 60,743,922 90,194,990 57,899,871 10,524,834 93,768,282 68,564,134 135,104,664 35,586,002 63,273,468 103,386,467 719,046,634
GHEW RWKHULQVWUXPHQWV 24,258 303,678 155,980,860 156,308,796
other comprehensive income 17,292,402 39,378 17,331,780
Other assets 18,115 6,480,548 1,024,176 7,522,839
Total 60,768,288 90,194,990 57,917,986 10,524,834 94,071,960 68,564,134 135,116,239 285,878,380 64,341,320 103,386,467 970,764,598
332
(d) Group - as at 31st December 2018
Agriculture Manufacturing Tourism Transport Construction Traders Banks, Government Other Consumers Total
NOTES TO THE
& Related & Financial Services

Infrastructure & Business
Services

Financial Assets
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 3,173 2,904 1,164,960 1,171,037
SURƪWRUORVVPHDVXUHGDWIDLUYDOXH 68,843 27,647,228 4,175 27,720,246
ORDQV DGYDQFHV 47,590,916 98,395,031 53,192,075 11,333,301 129,175,840 138,113,567 42,901,415 15,535,474 56,719,158 84,581,647 677,538,424
GHEW RWKHULQVWUXPHQWV 32,709 509,847 547,047 723,486 7,671,829 111,624,793 121,109,711
other comprehensive income 2,432,869 25,047,854 36,638 27,517,361
Other assets 1,110,864 3,263,769 1,470,425 5,845,058
Total 47,626,798 98,904,878 53,192,075 11,333,301 129,722,887 138,839,957 85,574,812 219,676,894 58,230,396 84,581,647 927,683,645
50.2.5 Commitments and Contingencies

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50.3 Liquidity Risk and Funding Management

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50.3.1 Statutory Liquid Assets Ratio (SLAR)
For the month of December 2019 2018

% %
'RPHVWLF%DQNLQJ8QLW'%8 21.51 21.50

2Ʃ6KRUH%DQNLQJ8QLW2%8 26.88 25.78
50.3.2 Loans and Advances to Deposits (due to banks and due to depositors) Ratio
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which compares loans & advances to deposits.
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333
NOTES TO THE

50.3.3 Analysis of Financial Assets and Liabilities by Remaining Contractual Maturities
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DWVW'HFHPEHU5HSD\PHQWVZKLFKDUHVXEMHFWWRQRWLFHDUHWUHDWHGDVLIQRWLFHZHUHWREHJLYHQLPPHGLDWHO\+RZHYHUWKH%DQN
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Contractual Maturities of Undiscounted Cash Flows of Financial Assets and Financial Liabilities
Up to 3 3 - 12 Months 1 - 3 Years 3 - 5 Years Over 5 Years Total

Months
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Financial Assets
Balances with Central Bank of Sri Lanka 17,217,351 10,978,151 1,180,284 1,245,035 407,449 31,028,270
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 673,590 189,164 862,754
ORVVPHDVXUHGDWIDLUYDOXH 11,130,230 11,130,230
ORDQV DGYDQFHV 240,861,859 160,220,714 201,872,132 117,739,946 137,286,226 857,980,877
comprehensive income 939,779 14,476,827 3,918 1,911,200 17,331,724
Other assets 2,220,994 4,800,144 47,036 24,938 74,017 7,167,129
Total Financial Assets 331,320,304 245,793,002 255,008,921 148,662,021 147,588,300 1,128,372,548
'XHWREDQNV 1,511,665 1,511,665
Securities sold under repurchase agreements 15,998,318 432,440 16,430,758
GXHWRGHSRVLWRUV 409,061,675 262,934,951 28,983,851 31,961,664 8,556,967 741,499,108
GXHWRGHEWVHFXULWLHVKROGHUV 2,138,579 9,883,070 18,084,196 19,467,715 49,573,560
2WKHUOLDELOLWLHV 5,859,297 3,415,754 2,735,603 871,128 1,190,900 14,072,682
7RWDO)LQDQFLDO/LDELOLWLHV 449,914,229 289,805,948 71,214,352 58,354,792 16,416,741 885,706,062
7RWDO1HW)LQDQFLDO$VVHWV/LDELOLWLHV 183,794,569 90,307,229 131,171,559 242,666,486
334

Months
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Financial Assets
Balances with Central Bank of Sri Lanka 20,181,962 13,586,582 997,728 1,357,820 433,684 36,557,776
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 988,372 182,665 1,171,037
ORDQV DGYDQFHV 276,075,927 135,833,891 176,616,160 113,738,534 100,132,188 802,396,700
GHEW RWKHULQVWUXPHQWV 21,880,528 48,662,322 40,006,291 24,106,371 134,655,512
comprehensive income 12,731,631 12,312,540 3,683 2,469,451 27,517,305
Other assets 2,167,660 3,044,980 45,828 48,917 150,046 5,457,431
'XHWREDQNV 8,538,313 454,827 8,993,140
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 1,321,472 1,630,847 2,952,319
GXHWRGHEWVHFXULWLHVKROGHUV 467,466 10,228,380 18,601,432 19,112,717 48,409,995
2WKHUOLDELOLWLHV 5,334,106 2,425,542 557,970 100,449 291,815 8,709,882
335
NOTES TO THE


Months
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Financial Assets
Balances with Central Bank of Sri Lanka 17,217,352 10,978,151 1,180,284 1,245,035 407,448 31,028,270
Reverse repurchase agreements 743,966 1,674,996 2,418,962
ORDQV DGYDQFHV 250,342,779 171,240,639 217,308,090 121,971,034 137,365,363 898,227,905
comprehensive income 939,779 14,476,827 3,918 1,911,256 17,331,780
Other assets 2,600,814 4,846,241 47,089 24,938 74,017 7,593,099
'XHWREDQNV 1,567,974 1,567,974
2WKHUOLDELOLWLHV 6,377,387 2,871,835 1,656,204 905,346 1,256,147 13,066,919
336

Months
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Financial Assets
Balances with Central Bank of Sri Lanka 20,181,963 13,586,582 997,728 1,357,820 433,683 36,557,776
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 988,372 182,665 1,171,037
ORDQV DGYDQFHV 281,607,195 147,334,406 191,430,172 119,701,667 100,248,079 840,321,519
comprehensive income 12,731,631 12,312,540 3,683 2,469,507 27,517,361
Other assets 2,385,333 3,289,898 45,898 48,917 149,983 5,920,029
'XHWREDQNV 8,601,707 454,827 9,056,534
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 1,321,473 1,630,846 2,952,319
2WKHUOLDELOLWLHV 5,832,792 2,210,444 153,864 35,058 291,817 8,523,975
337
NOTES TO THE

50.3.4 Remaining Contractual Maturities of Commitments and Contingencies
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On Demand Less than 3 3 to 12 1 to 5 Years Over 5 Years Total

Months Months
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000

Undrawn direct credit facilities 149,635,468 149,635,468
Undrawn indirect credit facilities 45,464,712 45,464,712
Acceptances 26,319 10,239,789 3,882,260 21,436 14,169,804
'RFXPHQWDU\FUHGLW 867,865 10,906,606 5,379,313 181,541 17,335,325
Guarantees 2,507,284 10,478,464 23,702,507 12,431,444 15,260 49,134,959
198,501,648 31,624,859 32,964,080 12,634,421 15,260 275,740,268

Capital commitments 998,348 998,348
2SHUDWLQJOHDVHFRPPLWPHQWVDVOHVVHH 19,422 26,865 46,287
)RUZDUGH[FKDQJHFRQWUDFWV 78,813,708 37,235,117 116,048,825
998,348 78,833,130 37,261,982 117,093,460
Total gross commitments & contingencies 199,499,996 110,457,989 70,226,062 12,634,421 15,260 392,833,728
,PSDLUPHQWIRUH[SHFWHGFUHGLWORVVHVFUHGLW
related commitments & contingencies
Commitments & contingencies net of
LPSDLUPHQWIRUH[SHFWHGFUHGLWORVVHV 198,479,753 110,295,446 70,056,636 12,569,484 15,181 391,416,500

Months Months
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000

Acceptances 239,502 10,779,531 6,425,568 28,650 17,473,251
'RFXPHQWDU\FUHGLW 1,648,704 14,042,761 1,851,274 43,806 17,586,545
Guarantees 7,884,615 10,229,833 18,285,953 15,972,562 2,464 52,375,427
224,472,469 35,052,125 26,562,795 16,045,018 2,464 302,134,871

Capital commitments 568,383 568,383
2SHUDWLQJOHDVHFRPPLWPHQWVDVOHVVHH 327,906 899,646 3,409,639 1,022,086 5,659,277
568,383 64,543,181 25,517,718 3,409,639 1,022,086 95,061,007
Total gross commitments & contingencies 225,040,852 99,595,306 52,080,513 19,454,657 1,024,550 397,195,878
LPSDLUPHQWIRUH[SHFWHGFUHGLWORVVHV 224,161,130 99,457,934 51,976,412 19,391,775 1,024,540 396,011,791
338

Months Months
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000

Acceptances 26,319 10,239,789 3,882,260 21,436 14,169,804
'RFXPHQWDU\FUHGLW 867,865 10,906,606 5,379,313 181,541 17,335,325
Guarantees 2,507,284 10,478,464 23,707,707 12,431,444 15,260 49,140,159
194,434,901 31,624,859 32,969,280 12,634,421 15,260 271,678,721

Capital commitments 998,348 484,512 800,240 2,283,100
2SHUDWLQJOHDVHFRPPLWPHQWVDVOHVVHH 19,422 26,865 46,287
998,348 79,317,642 38,062,222 118,378,212
Total gross commitments & contingencies 195,433,249 110,942,501 71,031,502 12,634,421 15,260 390,056,933
LPSDLUPHQWIRUH[SHFWHGFUHGLWORVVHV 194,418,770 110,777,496 70,859,482 12,568,500 15,181 388,639,429

Months Months
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000

Acceptances 239,502 10,779,531 6,425,568 28,650 17,473,251
'RFXPHQWDU\FUHGLW 1,648,704 14,042,761 1,851,274 43,806 17,586,545
Guarantees 7,884,615 10,232,033 18,285,953 15,972,562 2,464 52,377,627
220,926,196 35,054,325 26,562,795 16,045,018 2,464 298,590,798

Capital commitments 425,343 675 1,058,452 1,484,470
2SHUDWLQJOHDVHFRPPLWPHQWVDVOHVVHH 86,220 335,715 656,945 2,261,299 1,167,162 4,507,341
511,563 64,551,665 26,333,469 2,261,299 1,167,162 94,825,158
Total gross commitments & contingencies 221,437,759 99,605,990 52,896,264 18,306,317 1,169,626 393,415,956
LPSDLUPHQWIRUH[SHFWHGFUHGLWORVVHV 220,558,037 99,468,618 52,792,163 18,243,435 1,169,616 392,231,869
339
NOTES TO THE

50.4 Market Risk
0DUNHWULVNLVWKHULVNWKDWWKHIDLUYDOXHRUIXWXUHFDVKƫRZVRIƪQDQFLDOLQVWUXPHQWVZLOOƫXFWXDWHGXHWRFKDQJHVLQPDUNHWYDULDEOHVVXFKDV
LQWHUHVWUDWHVIRUHLJQH[FKDQJHUDWHVFRPPRGLW\SULFHVDQGHTXLW\SULFHVƶH%DQNFODVVLƪHVH[SRVXUHVWRPDUNHWULVNLQWRHLWKHUWUDGLQJRU
QRQŠWUDGLQJSRUWIROLRVDQGPDQDJHVHDFKRIWKRVHSRUWIROLRVVHSDUDWHO\
50.4.1 Interest Rate Risk

,QWHUHVWUDWHULVNDULVHVIURPWKHSRVVLELOLW\WKDWFKDQJHVLQLQWHUHVWUDWHVZLOODƩHFWIXWXUHFDVKƫRZVRUWKHIDLUYDOXHVRIƪQDQFLDOLQVWUXPHQWV
ƶH%DQNţVSROLF\LVWRFRQWLQXRXVO\PRQLWRUSRVLWLRQVRQDGDLO\EDVLVDQGSHULRGLFLQWHUHVWUHSULFLQJVWUDWHJLHVDUHXVHGWRHQVXUHSRVLWLRQV
are maintained within prudential levels.
ƶHIROORZLQJWDEOHVGHPRQVWUDWHWKHVHQVLWLYLW\RIWKH%DQN
V6WDWHPHQWRI3URƪWRU/RVVIRUWKH\HDUHQGHGVW'HFHPEHUDQGVW
'HFHPEHUWRDUHDVRQDEOHSRVVLEOHFKDQJHLQLQWHUHVWUDWHVZLWKDOORWKHUYDULDEOHVKHOGFRQVWDQW
Rate Sensitive Assets (RSA) & Rate Sensitive Liabilities (RSL)

Rs 000 Rs 000
5DWH6HQVLWLYH$VVHWV56$ 650,356,608 661,890,806

5DWH6HQVLWLYH/LDELOLWLHV56/ 731,689,896 710,882,699
*$356$56/
,PSDFWRQ6WDWHPHQWRI3URƪWRU/RVVGXHWR,QWHUHVW5DWH6KRFNV

Rs 000 Rs 000
Interest Rate Shock

95,239
190,478
31,834
63,668
ƶHDERYHFRPSXWDWLRQLVEDVHGRQWKHUDWHVHQVLWLYHDVVHWVDQGOLDELOLWLHVZKLFKDUHPDWXUHGRUUHSULFHGZLWKLQRQH\HDU
Interest Rate Sensitivity Analysis

ƶHWDEOHVEHORZDQDO\VHWKH%DQNţVLQWHUHVWUDWHULVNH[SRVXUHRQƪQDQFLDODVVHWVDQGOLDELOLWLHVƶH%DQNţVDVVHWVDQGOLDELOLWLHVDUHLQFOXGHG
DWFDUU\LQJDPRXQWDQGFDWHJRULVHGE\WKHHDUOLHURIFRQWUDFWXDOUHŠSULFLQJRUPDWXULW\GDWHV
340
Up to 3 3 - 12 1-3 Years 3 - 5 Years Over 5 Years Non Interest Total

Months Months Sensitive
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Financial Assets
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 862,754 862,754
)LQDQFLDODVVHWVUHFRJQLVHGWKURXJKSURƪWRUORVVPHDVXUHGDWIDLUYDOXH 11,057,953 72,277 11,130,230
ORDQV DGYDQFHV 388,718,216 95,336,964 77,237,114 48,861,265 78,813,535 410,410 689,377,504

)LQDQFLDODVVHWVIDLUYDOXHWKURXJKRWKHUFRPSUHKHQVLYHLQFRPH 939,779 14,476,827 3,918 1,911,200 17,331,724
Other assets 7,152,067 7,152,067
Total Financial Assets 469,221,123 181,135,485 85,446,181 60,578,155 82,609,427 59,226,154 938,216,525
'XHWREDQNV 568 1,511,097 1,511,665
341

GXHWRRWKHUERUURZHUV 42,525,609 8,715,725 1,401,847 188,296 2,830,252 55,661,729

7RWDO)LQDQFLDO/LDELOLWLHV 453,053,374 278,636,522 27,869,120 28,181,125 2,830,252 50,907,410 841,477,803
Risk & Governance
,QWHUHVW5DWH6HQVLWLYLW\*DS 16,167,749 57,577,061 32,397,030 79,779,175 8,318,744 96,738,722

Up to 3 3 - 12 Months 1-3 Years 3 - 5 Years Over 5 Years Non Interest Total

Months Sensitive
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Financial Assets
Cash & cash equivalents 124,373 18,927,582 19,051,955
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 1,171,037 1,171,037
ORDQV DGYDQFHV 408,063,477 82,304,987 60,130,080 39,954,149 59,365,762 195,183 650,013,638
)LQDQFLDODVVHWVIDLUYDOXHWKURXJKRWKHUFRPSUHKHQVLYHLQFRPH 12,731,631 12,312,540 3,683 2,469,451 27,517,305
Other assets 5,434,982 5,434,982
'XHWREDQNV 6,199,539 431,981 2,269,943 8,901,463
342
GXHWRGHSRVLWRUV 365,788,158 267,529,387 9,157,558 10,698,825 2,468 37,202,156 690,378,552
NOTES TO THE
GXHWRRWKHUERUURZHUV 31,827,820 17,269,833 2,035,669 382,716 1,806,237 13,555 53,335,830



Up to 3 3 - 12 Months 1-3 Years 3 - 5 Years Over 5 Years Non Interest Total

Months Sensitive
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Financial Assets
Reverse repurchase agreements 742,787 1,561,605 2,304,392
ORDQV DGYDQFHV 394,249,514 102,782,185 89,256,722 53,464,090 78,883,713 410,410 719,046,634

)LQDQFLDODVVHWVIDLUYDOXHWKURXJKRWKHUFRPSUHKHQVLYHLQFRPH 939,779 14,476,827 3,918 1,911,256 17,331,780
Other assets 7,522,839 7,522,839
'XHWREDQNV 56,877 1,511,097 1,567,974
343
GXHWRGHSRVLWRUV 397,362,075 268,840,496 15,906,907 11,707,381 552 36,372,231 730,189,642

GXHWRRWKHUERUURZHUV 53,635,534 9,150,818 1,506,266 188,296 2,830,252 67,311,166

Risk & Governance

Up to 3 3 - 12 1-3 Years 3 - 5 Years Over 5 Years Non Interest Total

Months Months Sensitive
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Financial Assets
Cash & cash equivalents 124,373 19,093,881 19,218,254
ORDQV DGYDQFHV 411,498,027 90,487,753 70,870,248 45,016,139 59,471,074 195,183 677,538,424
)LQDQFLDODVVHWVIDLUYDOXHWKURXJKRWKHUFRPSUHKHQVLYHLQFRPH 12,731,630 12,312,541 3,683 2,469,507 27,517,361
Other assets 5,845,058 5,845,058
'XHWREDQNV 6,262,932 431,981 2,269,944 8,964,857
344
GXHWRGHSRVLWRUV 368,529,368 271,653,969 10,550,598 11,729,563 2,483 37,195,059 699,661,040
NOTES TO THE
GXHWRRWKHUERUURZHUV 41,410,437 15,645,730 4,764,349 1,460,726 1,806,237 13,555 65,101,034



50.4.2 Currency Risk

&XUUHQF\ULVNDULVHVDVDUHVXOWRIƫXFWXDWLRQVLQWKHYDOXHRIDƪQDQFLDOLQVWUXPHQWGXHWRFKDQJHVLQIRUHLJQH[FKDQJHUDWHVƶH%DQNţV
%RDUGKDVVHWOLPLWVRQSRVLWLRQVE\FXUUHQF\,QDFFRUGDQFHZLWKWKH%DQNţVSROLF\SRVLWLRQVDUHPRQLWRUHGRQDGDLO\EDVLVDQGKHGJLQJ
VWUDWHJLHVDUHXVHGWRHQVXUHSRVLWLRQVDUHPDLQWDLQHGZLWKLQHVWDEOLVKHGOLPLWV
ƶHWDEOHVEHORZLQGLFDWHWKHFXUUHQFLHVWRZKLFKWKH%DQNKDGVLJQLƪFDQWH[SRVXUHVDVDWVW'HFHPEHUDQGVW'HFHPEHU
DQGWKHHƩHFWWRWKHJDLQVORVVHVLQFDVHRIDPDUNHWH[FKDQJHUDWHVLQFUHDVHGHFUHDVHE\DQGƶHDQDO\VLVFDOFXODWHVWKHHƩHFW
RIDUHDVRQDEO\SRVVLEOHPRYHPHQWRIWKHFXUUHQF\UDWHDJDLQVWWKH/.5ZLWKDOORWKHUYDULDEOHVKHOGFRQVWDQWRQWKH6WDWHPHQWRI3URƪWRU
/RVVGXHWRWKHIDLUYDOXHRIFXUUHQF\VHQVLWLYHQRQWUDGLQJƪQDQFLDODVVHWVDQGOLDELOLWLHVDQGHTXLW\GXHWRFKDQJHLQIDLUYDOXHRIFXUUHQF\
VZDSVDQGIRUZDUGH[FKDQJHFRQWUDFWVXVHGDVFDVKƫRZKHGJHV$QHJDWLYHDPRXQWLQWKH,PSDFWRQ6WDWHPHQWRI3URƪWRU/RVVFROXPQ
RIWKHWDEOHUHƫHFWVDSRWHQWLDOQHWUHGXFWLRQLQ6WDWHPHQWRI3URƪWRU/RVVRUHTXLW\ZKLOHDSRVLWLYHDPRXQWUHƫHFWVDQHWSRWHQWLDOLQFUHDVH
Foreign Exchange Position as at 31st December 2019 2018

Net Overall Net Overall Net Overall Net Overall
Long Short Long Short
Rs 000 Rs 000 Rs 000 Rs 000
Currency
USD 586,259 1,493,221
GBP 17,721 34,666
EUR 14,772 75,657
JPY 2,671 10,639
AUD 12,152 1,279
CAD 1,233 8,181
&+) 1,000 42,423
SGD 11,478 12,246
+.' 1,882 6,750
6XE7RWDO 615,675 33,493 1,564,100 120,962
Other Currencies 59,625 55,273
Grand Total 675,300 33,493 1,619,373 120,962
+LJKHURI/RQJRU6KRUW 675,300 1,619,373
2019 2018
,PSDFWRQ6WDWHPHQWRI3URƪWRU/RVVGXHWR([FKDQJH5DWH Net Open Impact on Net Open Impact on
Shocks Position Statement of Position Statement of
(after Rate 3URƪWRU/RVV (after Rate 3URƪWRU/RVV
Shocks) for the period Shocks) for the period
ended ended
31st December 31st December
Rs 000 Rs 000 Rs 000 Rs 000
709,065 33,765 1,700,342 80,969

742,830 67,530 1,781,311 161,938
641,535 1,538,405
607,770 1,457,436
345
NOTES TO THE

50.4.3 Equity Price Risk
(TXLW\SULFHULVNLVWKHULVNWKDWWKHIDLUYDOXHRIHTXLWLHVGHFUHDVHVDVDUHVXOWRIFKDQJHVLQWKHOHYHORIHTXLW\LQGLFHVDQGLQGLYLGXDOVWRFNV
,QYHVWPHQW&RPPLWWHHUHYLHZVDQGDSSURYHVDOOHTXLW\LQYHVWPHQWGHFLVLRQV)XUWKHUWKHPDUNHWYDOXHRIWKH%DQN
VHTXLW\SRUWIROLRDVDW
VW'HFHPEHULV5V5V
50.5 Operational Risk

2SHUDWLRQDOULVNLVWKHULVNRIORVVHVDULVLQJIURPIDLOHGLQWHUQDOSURFHVVHVV\VWHPVIDLOXUHKXPDQHUURUIUDXGRUH[WHUQDOHYHQWV:KHQ
FRQWUROVIDLOWRSHUIRUPRSHUDWLRQDOULVNVFDQFDXVHGDPDJHWRUHSXWDWLRQKDYHOHJDORUUHJXODWRU\LPSOLFDWLRQVRUOHDGWRƪQDQFLDOORVV
Strategic and Reputational Risks are not covered in Operational Risk.
2SHUDWLRQDO5LVNVRIWKH%DQNDUHPLWLJDWHGDQGPDQDJHGWKURXJKD%RDUGDSSURYHG2SHUDWLRQDO5LVN0DQDJHPHQW3ROLF\FRQWUROIUDPHZRUN
which consists of monitoring and responding to potential risks such as segregation of duties, access, authorisation and reconciliation
SURFHGXUHVVWDƩHGXFDWLRQDQGDVVHVVPHQWSURFHVVHV%XVLQHVV&RQWLQXLW\3ODQQLQJHWF2SHUDWLRQDO5LVN0DQDJHPHQW8QLWUHSRUWVWR
*URXS&KLHI5LVN2ƬFHUDQGWKH%RDUG,QWHJUDWHG5LVN0DQDJHPHQW&RPPLWWHHZKLFKPDLQWDLQVDKLJKOHYHORYHUDOOVXSHUYLVLRQRIPDQDJLQJ
Operational Risks of the Bank.
50.6 Capital Management

ƶH%DQN
VFDSLWDOPDQDJHPHQWREMHFWLYHVFDQEHVXPPDULVHGDVIROORZV
y 0DLQWDLQVXƬFLHQWFDSLWDOWRPHHWPLQLPXPUHJXODWRU\FDSLWDOUHTXLUHPHQWV
y +ROGVXƬFLHQWFDSLWDOWRVXSSRUWWKH%DQN
VULVNDSSHWLWH
y 3URYLGHDGGLWLRQDOFDSLWDOWREXVLQHVVVHJPHQWVRIWKH%DQNWRDFKLHYHWKHRYHUDOOVWUDWHJLFREMHFWLYHV
y 3URYLGHDFXVKLRQRUEXƩHULQDEVRUELQJSRWHQWLDOORVVHVDULVLQJIURPYDULRXVULVNVDQGVDIHJXDUGLQJWKHGHSRVLWRUV
IXQGV
Regulatory Capital
ƶH%DQNPDQDJHVLWVFDSLWDOFRQVLGHULQJWKHUHJXODWRU\FDSLWDOUHTXLUHPHQWVƶH&HQWUDO%DQNRI6UL/DQND&%6/VHWVDQGPRQLWRUVFDSLWDO
UHTXLUHPHQWVIRUOLFHQVHGFRPPHUFLDOEDQNVLQ6UL/DQNDEDVHGRQWKH%DVHOIUDPHZRUN$FFRUGLQJO\WKH%DQNQHHGVWRPDLQWDLQPLQLPXP
7LHU,FDSLWDODGHTXDF\UDWLRLQFOXGLQJFDSLWDOEXƩHUVRIDQGPLQLPXPWRWDOFDSLWDODGHTXDF\UDWLRRIDVDWVW'HFHPEHU
ƶH%DQNKDVDOZD\VPDLQWDLQHGWKH&DSLWDO$GHTXDF\5DWLRDERYHWKHPLQLPXPUHJXODWRU\UHTXLUHPHQWV
346
51 MATURITY ANALYSIS
(a) Bank

Within 12 After 12 Total Within 12 After 12 Total
Months Months Months Months
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Assets
Cash & cash equivalents 17,789,176 17,789,176 19,051,955 19,051,955
Balances with Central Bank of Sri Lanka 28,195,503 2,832,767 31,028,270 33,768,543 2,789,233 36,557,776
3ODFHPHQWVZLWKEDQNV 7,251,305 7,251,305 8,746,926 8,746,926
ORDQV DGYDQFHV 349,940,360 339,437,144 689,377,504 359,034,760 290,978,878 650,013,638
,QYHVWPHQWLQVXEVLGLDULHV 2,394,701 2,394,701 2,320,429 2,320,429
3URSHUW\SODQW HTXLSPHQW 8,466,366 8,466,366 7,917,993 7,917,993
,QWDQJLEOHDVVHWV 995,137 995,137 1,137,422 1,137,422
5LJKWRIXVHDVVHWV 1,300,324 2,758,895 4,059,219
&XUUHQWWD[UHFHLYDEOHV
'HIHUUHGWD[DVVHWV 3,737,512 3,737,512 989,343 989,343
Other assets 8,184,077 3,449,028 11,633,105 6,010,088 3,465,257 9,475,345
Total Assets 522,203,481 440,147,017 962,350,498 546,419,845 367,805,086 914,224,931
Liabilities
'XHWREDQNV 1,511,665 1,511,665 8,901,463 8,901,463
agreements 16,398,511 16,398,511 13,732,205 13,732,205
5HWLUHPHQWEHQHƪWREOLJDWLRQ 3,651,642 3,651,642 1,885,824 1,885,824
'LYLGHQGSD\DEOH 88,898 88,898 97,462 97,462
'HIHUUHGWD[OLDELOLWLHV
2WKHUOLDELOLWLHV 13,972,756 3,135,588 17,108,344 11,509,255 889,267 12,398,522
7RWDO/LDELOLWLHV 731,623,195 125,721,519 857,344,714 722,415,324 107,420,297 829,835,621
0DWXULW\*DS 314,425,498 105,005,784 260,384,789 84,389,310
Cumulative Gap 105,005,784 84,389,310
347
NOTES TO THE
51 MATURITY ANALYSIS CONTD.

(b) Group

Within 12 After 12 Total Within 12 After 12 Total
Months Months Months Months
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Assets
Cash & cash equivalents 17,977,598 17,977,598 19,218,254 19,218,254
Balances with Central Bank of Sri Lanka 28,195,503 2,832,767 31,028,270 33,768,543 2,789,233 36,557,776
3ODFHPHQWVZLWKEDQNV 7,251,305 7,251,305 8,746,926 8,746,926
Reverse repurchase agreements 2,304,392 2,304,392 2,258,852 2,258,852
ORDQV DGYDQFHV 365,305,506 353,741,128 719,046,634 370,807,810 306,730,614 677,538,424
,QYHVWPHQWLQVXEVLGLDULHV
3URSHUW\SODQW HTXLSPHQW 15,702,051 15,702,051 13,601,798 13,601,798
,QWDQJLEOHDVVHWV 1,055,341 1,055,341 1,225,519 1,225,519
5LJKWRIXVHDVVHWV 915,970 2,292,296 3,208,266
&XUUHQWWD[UHFHLYDEOHV 46,246 46,246 23,360 23,360
'HIHUUHGWD[DVVHWV 3,738,064 3,738,064 989,416 989,416
Other assets 8,718,272 3,613,107 12,331,379 6,615,637 3,490,900 10,106,537
Total Assets 540,268,299 459,054,807 999,323,106 560,746,831 387,038,386 947,785,217
Liabilities
'XHWREDQNV 1,567,974 1,567,974 8,964,857 8,964,857
agreements 16,384,511 16,384,511 13,709,472 13,709,472
5HWLUHPHQWEHQHƪWREOLJDWLRQ 3,741,781 3,741,781 1,944,080 1,944,080
'LYLGHQGSD\DEOH 88,898 88,898 97,462 97,462
'HIHUUHGWD[OLDELOLWLHV 1,405,568 1,405,568 1,536,772 1,536,772
2WKHUOLDELOLWLHV 14,656,052 2,709,787 17,365,839 11,906,325 906,209 12,812,534
7RWDO/LDELOLWLHV 750,508,590 137,357,889 887,866,479 737,966,772 119,767,791 857,734,563
0DWXULW\*DS 321,696,918 111,456,627 267,270,595 90,050,654
Cumulative Gap 111,456,627 90,050,654
348
52 RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES
Bank Group
Debentures Finance Lease Debentures Finance Lease
Liability Liability
(Note 37.1) (Note 31.1) (Note 37.1) (Note 31.1)
Rs 000 Rs 000 Rs 000 Rs 000
%DODQFHDVDWVW-DQXDU\ 31,532,803 436,478 36,192,070

3URFHHGVIURPWKHLVVXHRIGHEHQWXUHV 7,500,000 7,500,000
5HGHPSWLRQRIGHEHQWXUHV
Non cash changes
$GGLWLRQVGXULQJWKH\HDU 111,154
1HWDFFUXDOIRULQWHUHVWH[SHQVH 264,893 265,561
%DODQFHDVDWVW'HFHPEHU 34,297,696 439,988 38,957,631
%DODQFHDVDWVW-DQXDU\ 34,297,696 439,988 38,957,631

3URFHHGVIURPWKHLVVXHRIGHEHQWXUHV 7,000,000 8,500,000
5HGHPSWLRQRIGHEHQWXUHV
Non cash changes
5HFRJQLWLRQRIOHDVHOLDELOLWLHVGXHWRWUDQVLWLRQWR6/)56 4,155,721 3,183,239
$GGLWLRQVGXULQJWKH\HDU 870,642 1,010,410
1HWDFFUXDOIRULQWHUHVWH[SHQVH 817,594 809,186
53 COMPARATIVE INFORMATION
ƶHFRPSDUDWLYHLQIRUPDWLRQLVUHFODVVLƪHGUHVWDWHGZKHUHYHUQHFHVVDU\WRFRQIRUPWRWKHFXUUHQW\HDU
VSUHVHQWDWLRQDQGGHWDLOVDUHJLYHQ
EHORZ
6WDWHPHQWRI3URƪWRU/RVV&RPSUHKHQVLYH,QFRPH
ƶHIROORZLQJOLQHLWHPVLQWKH6WDWHPHQWRI3URƪWRU/RVVIRUWKH\HDUHQGHGVW'HFHPEHUZHUHUHFODVVLƪHGWRFRQIRUPWRWKHFXUUHQW
\HDU
VSUHVHQWDWLRQ
For the year ended 31st December 2018 Bank Group

Note 5HFODVVLƪHG As Reported in 5HFODVVLƪHG As Reported in
2018 2018
Rs 000 Rs 000 Rs 000 Rs 000
1HWWUDGLQJORVVJDLQ 53.1.1

1HWJDLQRQGHUHFRJQLWLRQRIƪQDQFLDODVVHWV 53.1.1 & 53.1.2 74,378 74,378
1HWJDLQRQƪQDQFLDODVVHWV 53.1.2 160,526 160,766
Net other operating income 53.1.2 8,028,400 7,878,342 8,391,185 8,240,887
'HSUHFLDWLRQ DPRUWLVDWLRQH[SHQVHV 53.1.3 1,099,898 1,450,373

2WKHURSHUDWLQJH[SHQVHV 53.1.3 9,370,646 10,470,544 9,699,075 11,149,448
349
NOTES TO THE
53 COMPARATIVE INFORMATION CONTD.

53.1.1 1HWJDLQRQGHUHFRJQLWLRQRIƪQDQFLDODVVHWVDWIDLUYDOXHWKURXJKSURƪWRUORVV%DQN*URXS5V0QUHSRUWHGXQGHU1HWWUDGLQJ
ORVVJDLQLQWKHDQQXDOUHSRUWKDVEHHQUHSRUWHGXQGHU1RWH1HWJDLQRQGHUHFRJQLWLRQRIƪQDQFLDODVVHWVLQWKHDQQXDO
report.
53.1.2 'LYLGHQGLQFRPHIURPƪQDQFLDODVVHWV)92&,%DQN5V0Q*URXS5V0QDQG1HWJDLQRQGHUHFRJQLWLRQRIƪQDQFLDODVVHWV

DWDPRUWLVHGFRVW)92&,%DQN*URXS5V0QUHSRUWHGXQGHU1HWJDLQRQƪQDQFLDODVVHWVLQWKHDQQXDOUHSRUWKDVEHHQ
GLVFORVHGXQGHU1RWH1HWRWKHURSHUDWLQJLQFRPHDQG1RWH1HWJDLQRQGHUHFRJQLWLRQRIƪQDQFLDODVVHWVUHVSHFWLYHO\LQWKH
2019 annual report.
53.1.3 'HSUHFLDWLRQRISURSHUW\SODQWDQGHTXLSPHQW%DQN5V0Q*URXS5V0QDQGDPRUWLVDWLRQRILQWDQJLEOHDVVHWV

%DQN5V0Q*URXS5V0QUHSRUWHGXQGHU2WKHURSHUDWLQJH[SHQVHVLQWKHDQQXDOUHSRUWKDYHEHHQGLVFORVHGXQGHU
1RWH'HSUHFLDWLRQDQGDPRUWLVDWLRQH[SHQVHVLQWKHDQQXDOUHSRUW
53.2 Statement of Financial Position

ƶHIROORZLQJOLQHLWHPVLQWKH6WDWHPHQWRI)LQDQFLDO3RVLWLRQDVDWVW'HFHPEHUZHUHUHFODVVLƪHGUHVWDWHGWRFRQIRUPWRWKH
FXUUHQW\HDU
VSUHVHQWDWLRQ
As at 31st December 2018 Bank Group

Note 5HFODVVLƪHG As Reported in 5HFODVVLƪHG As Reported in
Restated 2018 Restated 2018
Rs 000 Rs 000 Rs 000 Rs 000
Assets
/RDQVWR UHFHLYDEOHVIURPEDQNV 53.2.1 1,644,405 1,644,405
/RDQVWR UHFHLYDEOHVIURPRWKHUFXVWRPHUV 53.2.1 648,369,233 675,894,019
Loans and advances 53.2.1 650,013,638 677,538,424
Liabilities
'XHWRRWKHUERUURZHUV 53.2.2 53,335,830 65,101,034
'XHWRGHEWVHFXULWLHVKROGHUV 53.2.3 36,612,576 41,272,511
'HEWLVVXHG RWKHUERUURZHGIXQGV 53.2.2 & 53.2.3 89,948,406 106,373,545
Commitments & contingencies 53.3.4 396,011,791 394,293,261 392,231,869 390,900,220
53.2.1 /RDQVWR UHFHLYDEOHVIURPEDQNV%DQN*URXS5V0QDQGORDQVWR UHFHLYDEOHVIURPRWKHUFXVWRPHUV%DQN5V0Q

*URXS5V0QUHSRUWHGVHSDUDWHO\LQWKHDQQXDOUHSRUWKDYHEHHQUHSRUWHGXQGHU1RWH/RDQVDQGDGYDQFHVLQWKH
2019 annual report.
53.2.2 &DOOWHUPUHƪQDQFHDQGIRUHLJQERUURZLQJV%DQN5V0Q*URXS5V0QUHSRUWHGXQGHU'HEWLVVXHG RWKHUERUURZHG

IXQGVLQWKHDQQXDOUHSRUWKDYHEHHQSUHVHQWHGXQGHU1RWH'XHWRRWKHUERUURZHUVLQWKHDQQXDOUHSRUW
53.2.3 'HEHQWXUHV%DQN5V0Q*URXS5V0QDQGWKHORQJWHUPERQG%DQN*URXS5V0QUHSRUWHGXQGHU'HEWLVVXHG

RWKHUERUURZHGIXQGVLQWKHDQQXDOUHSRUWKDYHEHHQSUHVHQWHGXQGHU1RWH'XHWRGHEWVHFXULWLHVKROGHUVLQWKH
annual report.
53.2.4 ƶH*URXSUHFWLƪHGWKHXQGHUVWDWHPHQW%DQN5V0Q*URXS5V0QRIWKHEDODQFHUHSRUWHGDV&RPPLWPHQWV

FRQWLQJHQFLHVLQWKHDQQXDOUHSRUWLQ
350
DELIGHTING OUR
STAKEHOLDERS WITH RESULTS
SUPPLEMENTARY INFORMATION
Statement of Profit or Loss in US$ | 352

Statement of Comprehensive Income in US$ | 353
Statement of Financial Position in US$ | 354
Economic Value Addition | 355
Ten Years at a Glance | 356
Quarterly Statistics | 357
Capital Adequacy | 359
Basel III Disclosure Requirements | 360
GRI Content Index | 370
Independent Assurance Report to the Shareholders of Sampath Bank PLC | 376
Glossary of Financial and Banking Terms | 377
Notice of Annual General Meeting | 381
Notes | 382
Stakeholder Feedback Form | 383
351
STATEMENT OF
PROFIT OR LOSS IN US$
Bank Group
US$ 000 US$ 000 US$ 000 US$ 000
Gross income 655,387 630,455 694,352 666,395
Interest income 571,088 535,452 605,765 567,701

/HVV,QWHUHVWH[SHQVH 341,834 327,395 358,928 344,234
Net interest income 229,254 208,057 246,837 223,467
Fee & commission income 64,621 63,454 66,591 65,162

/HVV)HH FRPPLVVLRQH[SHQVH 9,298 9,224 9,305 9,243
Net fee & commission income 55,323 54,230 57,286 55,919
1HWJDLQORVVIURPWUDGLQJ 12,164 12,164

1HWJDLQRQGHUHFRJQLWLRQRIƪQDQFLDODVVHWV 627 407 627 407
Net other operating income 6,887 43,895 9,205 45,878
Total operating income 304,255 293,836 326,119 312,918
Less: Impairment charge 69,330 61,360 75,823 66,368

Net operating income 234,925 232,476 250,296 246,550
Less: Operating expenses

3HUVRQQHOH[SHQVHV 53,591 48,313 58,367 52,895
'HSUHFLDWLRQDQGDPRUWLVDWLRQH[SHQVHV 13,422 6,013 13,926 7,930
2WKHURSHUDWLQJH[SHQVHV 45,288 51,234 48,471 53,029
Total operating expenses 112,301 105,560 120,764 113,854
2SHUDWLQJSURƪWEHIRUHWD[HVRQƪQDQFLDOVHUYLFHV 122,624 126,916 129,532 132,696
/HVV7D[HVRQƪQDQFLDOVHUYLFHV
9DOXHDGGHGWD[ 22,290 20,841 23,604 22,075
1DWLRQEXLOGLQJWD[ 2,720 2,883 2,909 3,058
'HEWUHSD\PHQWOHY\ 12,153 2,865 12,924 3,018
3URƪWEHIRUHLQFRPHWD[ 85,461 100,327 90,095 104,545
/HVV,QFRPHWD[H[SHQVH 23,972 33,938 25,753 35,623

3URƪWIRUWKH\HDU 61,489 66,389 64,342 68,922
Attributable to:
(TXLW\KROGHUVRIWKH%DQN 61,489 66,389 64,342 68,922
61,489 66,389 64,342 68,922
(DUQLQJVSHUVKDUH%DVLF'LOXWHG86 0.18 0.24 0.19 0.26
Dividend per share

'LYLGHQGSHUVKDUH*URVV86 0.06* 0.09
'LYLGHQGSHUVKDUH1HW86 0.06* 0.08
([FKDQJHUDWHRI86ZDV5VDVDWVW'HFHPEHU5VDVDWVW'HFHPEHU
&DOFXODWHGEDVHGRQSURSRVHGGLYLGHQGZKLFKLVWREHDSSURYHGDWWKH$QQXDO*HQHUDO0HHWLQJ
352
,QWURGXFWRU\,QIRUPDWLRQ Managing Our Business 0DQDJHPHQW'LVFXVVLRQ $QDO\VLV Risk & Governance Financial Information Supplementary Information
STATEMENT OF
COMPREHENSIVE INCOME IN US$
Bank Group
US$ 000 US$ 000 US$ 000 US$ 000
3URƪWIRUWKH\HDU 61,489 66,389 64,342 68,922

,WHPVWKDWZLOOEHUHFODVVLƪHGWRSURƪWRUORVV
'HEWLQVWUXPHQWVDWIDLUYDOXHWKURXJKRWKHUFRPSUHKHQVLYHLQFRPH
*DLQORVVDULVLQJRQUHPHDVXUHPHQW 484 484
'HIHUUHGWD[HƩHFWRQWKHDERYH 62 62
1HWRWKHUFRPSUHKHQVLYHLQFRPHWREHUHFODVVLƪHGWRSURƪWRUORVV 282 282
,WHPVWKDWZLOOQRWEHUHFODVVLƪHGWRSURƪWRUORVV
(TXLW\LQVWUXPHQWVDWIDLUYDOXHWKURXJKRWKHUFRPSUHKHQVLYHLQFRPH
/RVVDULVLQJRQUHPHDVXUHPHQW
([FKDQJHGLƩHUHQFHLQWUDQVODWLRQ 889 889
'HIHUUHGWD[HƩHFWRQWKHDERYH 866 866


'HIHUUHGWD[HƩHFWRQWKHDERYH 2,259 79 2,285 74

6XUSOXVIURPUHYDOXDWLRQRISURSHUW\SODQW HTXLSPHQW 4,477 6,657

'HIHUUHGWD[HƩHFWRQWKHDERYH
3,223 4,793
1HWRWKHUFRPSUHKHQVLYHLQFRPHQRWWREHUHFODVVLƪHGWRSURƪWRUORVV
Other comprehensive income net of tax

Total comprehensive income for the year net of tax 56,959 59,960 61,312 62,504
Attributable to:
(TXLW\KROGHUVRIWKH%DQN 56,959 59,960 61,312 62,504
56,959 59,960 61,312 62,504
353
STATEMENT OF
FINANCIAL POSITION IN US$
Bank Group
As at 31st December 2019 2018 2019 2018
US$ 000 US$ 000 US$ 000 US$ 000
ASSETS
Cash & cash equivalents 98,093 104,166 99,132 105,075
Balances with Central Bank of Sri Lanka 171,096 199,878 171,096 199,878
3ODFHPHQWVZLWKEDQNV 39,985 47,824 39,985 47,824
Reverse repurchase agreements 2,734 12,707 12,350
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 4,757 6,403 4,757 6,403
)LQDQFLDODVVHWVUHFRJQLVHGWKURXJKSURƪWRUORVVPHDVXUHGDWIDLUYDOXH 61,374 151,560 61,374 151,560
ORDQV DGYDQFHV 3,801,365 3,553,929 3,964,966 3,704,420
GHEW RWKHULQVWUXPHQWV 861,834 662,140 861,918 662,164
)LQDQFLDODVVHWVIDLUYDOXHWKURXJKRWKHUFRPSUHKHQVLYHLQFRPH 95,571 150,450 95,571 150,450
,QYHVWPHQWLQVXEVLGLDULHV 13,205 12,687
3URSHUW\SODQW HTXLSPHQW 46,685 43,291 86,584 74,367
,QWDQJLEOHDVVHWV 5,487 6,219 5,819 6,700
5LJKWRIXVHDVVHWV 22,383 17,691
&XUUHQWWD[UHFHLYDEOHV 255 128
'HIHUUHGWD[DVVHWV 20,609 5,409 20,613 5,410
Other assets 64,148 51,806 67,999 55,257
Total Assets 5,306,592 4,998,496 5,510,467 5,181,986
LIABILITIES
'XHWREDQNV 8,336 48,668 8,646 49,015
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 3,331 16,142 3,331 16,142
Securities sold under repurchase agreements 90,425 75,080 90,347 74,956
GXHWRGHSRVLWRUV 3,955,062 3,774,623 4,026,411 3,825,375
GXHWRRWKHUERUURZHUV 306,930 291,612 371,167 355,938
GXHWRGHEWVHFXULWLHVKROGHUV 207,566 200,178 228,131 225,656
5HWLUHPHQWEHQHƪWREOLJDWLRQ 20,136 10,311 20,633 10,629
'LYLGHQGSD\DEOH 490 533 490 533
&XUUHQWWD[OLDELOLWLHV 40,956 52,164 43,208 52,939
'HIHUUHGWD[OLDELOLWLHV 7,751 8,402
Total Liabilities 4,727,570 4,537,100 4,895,874 4,689,637
EQUITY
Stated capital 262,600 179,311 262,600 179,311
Reserves
6WDWXWRU\UHVHUYH 22,277 18,972 23,182 19,732
Other reserves 260,472 232,257 276,843 246,932
Retained earnings 33,673 30,856 51,968 46,374
7RWDOHTXLW\DWWULEXWDEOHWRHTXLW\KROGHUVRIWKH%DQN 579,022 461,396 614,593 492,349
Total Equity 579,022 461,396 614,593 492,349
Total Liabilities & Equity 5,306,592 4,998,496 5,510,467 5,181,986
Commitments & contingencies 2,158,348 2,165,182 2,143,035 2,144,515

Net asset value per share (US$) 1.52 1.64 1.61 1.75
354
ECONOMIC VALUE
ADDITION
(&2120,&9$/8($'',7,21Ⱦ%$1.
ƶHHFRQRPLFYDOXHFUHDWHGE\WKH%DQNWRLWVVKDUHKROGHUVGXULQJWKH\HDULVUHƫHFWHGLQWKHEHORZDQDO\VLV

Rs Mn Rs Mn
$YHUDJHVKDUHKROGHUV
IXQGV 94,698 74,020
Impairment provision 32,571 22,050
127,269 96,070
3URƪWDWWULEXWDEOHWRVKDUHKROGHUV 11,151 12,143

Impairment charge 12,573 11,223
$PRXQWVZULWWHQRƩORDQV RWKHUORVVHV
22,843 23,087
(FRQRPLFFRVWPRQWKVDYHUDJH7UHDVXU\%LOOUDWHSOXVULVNSUHPLXP

Economic cost 14,142 11,313
Economic value addition 8,701 11,774
',5(&7(&2120,&9$/8(*(1(5$7(' ',675,%87('Ⱦ%$1.
,QIRUPDWLRQRQWKHFUHDWLRQDQGGLVWULEXWLRQRIHFRQRPLFYDOXHSURYLGHVDEDVLFLQGLFDWLRQRIKRZWKH%DQNKDVFUHDWHGZHDOWKIRUVWDNHKROGHUV
Rs Mn Rs Mn
Direct Economic Value Generated

Interest income 103,567 97,934
([FKDQJHLQFRPH 2,793 5,491
Commission income 11,719 11,606
Investment income 326 321
Other income 289 121
118,694 115,473
Economic Value Distributed

To Depositors and Lenders
57,269 55,555
Operating Costs
Depreciation & amortisation 2,434 1,100
)HH FRPPLVVLRQH[SHQVH 1,686 1,687
2WKHURSHUDWLQJH[SHQVH 8,111 9,227
12,231 12,014
To Employees
Salaries 6,578 5,953
2WKHUEHQHƪWV 3,140 2,883
9,718 8,836
Payments to Government
,QFRPHWD[H[SHQVH 6,776 8,160
7D[HVRQƪQDQFLDOVHUYLFHV 6,740 4,863
&URSLQVXUDQFHOHY\ 92 113
13,608 13,136
To Community
6RFLDOUHVSRQVLELOLW\SURMHFWV 9 27
Donations 1 4
10 31
Payments to Providers of Capital

,QWHUHVWWRGHEWVHFXULWLHVKROGHUV 4,723 4,326
Dividend to shareholders 4,482 4,565
9,205 8,891
(FRQRPLFYDOXHGLVWULEXWHG 102,041 98,462

(FRQRPLFYDOXHUHWDLQHGDIWHUSD\PHQWRIGLYLGHQGWRVKDUHKROGHUV 16,653 17,011
118,694 115,473
355
TEN YEARS AT A
GLANCE
SLAS SLFRS
For the year ended 31st December 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Operating Results (Rs Mn)

Gross income 24,333 27,577 38,796 47,509 44,597 47,032 67,585 92,590 115,310 118,855
Interest income 18,477 21,111 31,882 41,892 38,059 37,944 56,529 79,625 97,934 103,567
,QWHUHVWH[SHQVHV 9,953 12,168 20,269 26,556 22,335 20,542 33,776 51,261 59,880 61,992
Net interest income 8,525 8,943 11,613 15,336 15,724 17,402 22,754 28,363 38,054 41,575
([FKDQJHLQFRPH 498 837 2,154 520 1,283 2,466 2,589 3,132 5,491 2,793
Other income 5,357 4,792 4,105 4,901 4,387 5,421 7,002 8,484 10,198 10,809
Total operating income 14,380 14,572 17,872 20,757 21,394 25,288 32,344 39,979 53,743 55,177
2SHUDWLQJH[SHQVHV 6,320 8,059 9,248 10,634 11,729 13,339 15,471 16,918 19,307 20,366
Impairment charge 1,944 618 65 4,736 1,401 944 1,460 2,376 11,223 12,573
3URƪWEHIRUHLQFRPHWD[ 4,502 4,994 7,401 4,491 6,727 9,101 12,600 16,606 18,350 15,498
,QFRPHWD[H[SHQVH 1,199 1,606 2,170 1,061 1,813 2,967 3,475 4,502 6,207 4,347
3URƪWDIWHUWD[ 3,303 3,388 5,231 3,430 4,914 6,134 9,125 12,104 12,143 11,151
SLFRS
As at 31st December 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Assets (Rs Mn)

Cash & cash equivalents including placements 6,048 16,073 19,220 10,094 13,348 18,781 25,814 25,494 27,799 25,040
Net loans & advances 124,067 170,123 209,000 260,040 302,370 377,348 458,831 562,884 650,014 689,378
Other interest earning assets 39,007 36,233 51,035 81,599 85,828 95,025 124,127 145,371 174,300 182,772
,QYHVWPHQWLQDVVRFLDWHV VXEVLGLDULHV 992 1,055 1,060 1,060 1,060 1,080 1,228 1,356 2,320 2,395
3URSHUW\SODQW HTXLSPHQW 4,278 4,528 4,560 5,135 5,142 5,313 5,972 7,270 7,918 8,466
Other assets 16,922 19,646 24,535 24,114 24,278 27,730 42,540 52,727 51,874 54,299
Total assets 191,314 247,658 309,410 382,042 432,026 525,277 658,512 795,102 914,225 962,350
Liabilities (Rs Mn)

'XHWREDQNV GXHWRGHSRVLWRUV 153,310 195,900 243,575 302,429 341,946 409,411 516,273 630,442 698,085 718,301
'HEWVHFXULWLHVKROGHUVERUURZLQJVIURPEDQNVDQGRWKHUV 8,702 20,225 29,206 39,194 36,846 57,347 72,446 76,215 91,143 93,765
2WKHUOLDELOLWLHV 8,311 10,189 10,985 12,000 22,322 23,394 25,304 24,795 40,608 45,279
7RWDOOLDELOLWLHV 170,323 226,314 283,766 353,623 401,114 490,152 614,023 731,452 829,836 857,345
Shareholders' Fund (Rs Mn)

Stated capital 1,786 2,744 3,564 4,460 4,470 5,381 6,471 16,308 32,796 47,622
Reserves 19,204 18,600 22,080 23,958 26,442 29,744 38,018 47,342 51,593 57,384
Investor Information
'LYLGHQGSDLGSURSRVHG5V0Q 1,235.8 1,427.0 1,954.1 1,342.6 1,847.0 2,240.0 3,362.1 4,598.4 4,564.7 4,482.1
'LYLGHQGFRYHUWLPHV 2.7 2.4 2.6 2.6 2.6 2.7 2.7 2.6 2.7 2.5
1HWDVVHWYDOXHSHUVKDUH5V 131.18 129.00 152.96 169.37 179.39 198.47 238.94 293.02 300.42 275.27
0DUNHWSULFHSHUVKDUH5V+LJK 550.00 307.00 216.00 242.00 252.00 279.90 268.70 352.20 335.50 245.00
0DUNHWSULFHSHUVKDUH5V/RZ 201.00 191.00 148.50 161.60 164.20 235.20 210.00 253.50 218.00 136.00
0DUNHWSULFHDVDWVW'HFHPEHU5V 271.90 195.00 200.50 171.90 236.30 248.00 260.40 315.70 235.00 162.40
Other Information
([FKDQJHUDWH86' 110.95 113.90 127.65 130.75 131.20 144.20 150.00 153.50 182.90 181.35
1XPEHURIVWDƩDVDWVW'HFHPEHU 2,688 3,230 3,455 3,688 4,000 3,993 3,960 4,011 4,189 4,134
1XPEHURIEUDQFKHVDVDWVW'HFHPEHU 171 206 209 212 220 225 229 229 229 229
1XPEHURIDXWRPDWHGWHOOHUPDFKLQHVDVDWVW 'HFHPEHU 222 255 264 274 326 370 381 391 419 423
1XPEHURIFDVKGHSRVLWPDFKLQHVDVDWVW 'HFHPEHU nil nil nil nil 02 40 108 183 365 429
1XPEHURI0<%$1.DJHQWVDVDWVW 'HFHPEHU nil nil nil nil nil nil nil nil nil 170
Ratios
*URZWKLQLQFRPH 13.3 40.7 22.5 5.5 43.7 37.0 24.5 3.1
&RVWWRLQFRPHUDWLRZLWK9$71%7 '5/RQ
ƪQDQFLDOVHUYLFHV 55.8 61.5 58.2 55.5 62.0 60.3 56.5 52.5 45.0 49.1
&RVWWRLQFRPHUDWLRZLWKRXW9$71%7 '5/RQ
ƪQDQFLDOVHUYLFHV 44.0 55.3 51.7 51.2 54.8 52.7 47.8 42.3 35.9 36.9
*URZWKLQGHSRVLWV 19.4 27.8 24.3 24.2 13.1 19.7 26.1 22.1 10.7 2.9
*URZWKLQQHWORDQVDQGDGYDQFHV 30.3 37.1 22.9 24.4 16.3 24.8 21.6 22.7 15.5 6.1
'LYLGHQGSHUVKDUH5V 8.09 9.00 12.00 8.00 11.00 13.00 18.75 17.20 16.25 11.75
5HWXUQRQDYHUDJHDVVHWVEHIRUHWD[ 2.64 2.60 2.66 1.29 1.69 1.90 2.14 2.29 2.13 1.66
5HWXUQRQDYHUDJHDVVHWVDIWHUWD[ 1.94 1.55 1.88 0.98 1.23 1.28 1.55 1.67 1.41 1.20
5HWXUQRQDYHUDJHHTXLW\DIWHUWD[ 24.59 16.17 22.26 12.88 16.35 18.42 23.47 23.35 16.02 11.78
3URSHUW\SODQW HTXLSPHQWWRVKDUHKROGHUV
IXQG 20.4 21.2 17.8 18.1 16.6 15.1 13.4 11.4 9.4 8.1
7RWDODVVHWVWRVKDUHKROGHUV
IXQG7LPHV 9.1 11.6 12.1 13.4 14.0 15.0 14.8 12.5 10.8 9.2
Liquid Assets Ratio

'RPHVWLF%DQNLQJ8QLW 25.9 22.8 21.5 27.2 24.4 21.8 21.2 22.2 21.5 21.5
2Ʃ6KRUH%DQNLQJ8QLW 36.8 58.4 23.7 30.4 23.8 27.2 33.4 24.9 25.8 26.9
$VVSHFLƪHGLQ%DQNLQJ$FW1RRI
DQ\VXEVHTXHQWDPHQGPHQWVWKHUHWR
Capital Adequacy Ratios Basel II Basel II Basel II Basel II Basel II Basel II Basel II Basel III Basel III Basel III
&RPPRQHTXLW\7LHU, n/a n/a n/a n/a n/a n/a n/a 10.26 12.08 14.22
7RWDO7LHU, 10.71 10.24 11.80 10.08 8.83 7.90 8.31 10.26 12.08 14.22
7RWDOFDSLWDO7LHU,7LHU,, 12.91 11.45 13.61 14.22 13.62 12.26 12.87 14.41 15.73 18.12
QDQRWDSSOLFDEOH
356
As at 2019 2018*
31st 30th 30th 31st 31st 30th 30th 31st
December September June March December September June March
Rs Mn Rs Mn Rs Mn Rs Mn Rs Mn Rs Mn Rs Mn Rs Mn
Statement of Financial Position

,QWURGXFWRU\,QIRUPDWLRQ
Total assets 962,350 951,996 925,715 911,094 914,225 887,491 862,210 843,396
)LQDQFLDODVVHWVDWDPRUWLVHGFRVWORDQVDQGDGYDQFHV 689,378 680,238 659,726 652,291 650,014 628,254 614,679 601,715
)LQDQFLDOOLDELOLWLHVDWDPRUWLVHGFRVWGXHWRGHSRVLWRUV 717,250 708,310 696,124 695,561 690,379 671,352 670,468 643,731
7RWDOHTXLW\ 105,006 100,489 98,609 84,634 84,389 80,970 78,371 62,700
2019 2018*
For the quarter ended 31st 30th 30th 31st 31st 30th 30th 31st

Rs Mn Rs Mn Rs Mn Rs Mn Rs Mn Rs Mn Rs Mn Rs Mn
6WDWHPHQWRI3URƪWRU/RVV
Net interest income 10,793 10,980 9,578 10,224 10,901 9,499 9,355 8,299
Net fee & commission income 2,730 2,634 2,393 2,276 2,638 2,568 2,412 2,302
1HWJDLQORVVIURPWUDGLQJ 494 671 1,496
1HWJDLQORVVRQGHUHFRJQLWLRQRIƪQDQFLDODVVHWV 52 26 23 13 6 59 12
357
Net other operating income 207 1,685 394 2,657 2,852 1,124 1,394
0DQDJHPHQW'LVFXVVLRQ $QDO\VLV
Total operating income 14,276 14,869 13,059 12,972 15,363 13,683 12,868 11,829
Less : Impairment charge 2,244 3,087 3,767 3,475 2,757 4,172 2,233 2,061
Net operating income 12,032 11,782 9,292 9,497 12,606 9,511 10,635 9,768
/HVV7RWDORSHUDWLQJH[SHQVHV 5,024 5,232 4,971 5,137 5,233 4,602 4,799 4,673
STATISTICS
QUARTERLY
7D[HVRQƪQDQFLDOVHUYLFHV 1,945 1,901 1,402 1,493 1,662 995 1,160 1,047

,QFRPHWD[H[SHQVHV 439 2,218 985 705 2,100 1,388 1,425 1,294
Risk & Governance
3URƪWIRUWKHSHULRG 4,624 2,431 1,934 2,162 3,612 2,526 3,251 2,754

Other comprehensive income for the period 72
Total comprehensive income for the period 4,504 1,880 1,870 2,075 3,412 2,598 3,139 1,818
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Financial Information Supplementary Information
2019 2018
For the quarter ended 31st 30th 30th 31st 31st 30th 30th 31st
Market price per share (Rs)

+LJKHVW 176.90 184.50 174.90 245.00 247.00 304.90 320.00 355.50
Lowest 152.30 140.00 136.00 174.50 218.00 236.30 294.00 289.00
Closing 162.40 153.00 139.20 180.10 235.00 239.90 303.10 300.00
2019 2018*
As at 31st 30th 30th 31st 31st 30th 30th 31st
3URƪWDELOLW\
,QWHUHVWPDUJLQ 4.46 4.45 4.35 4.54 4.41 4.29 4.27 4.11
5HWXUQRQDVVHWVEHIRUHWD[ 1.66 1.51 1.27 1.27 2.13 2.00 2.11 2.00
5HWXUQRQHTXLW\DIWHUWD[ 11.78 9.67 9.26 10.38 16.02 15.97 17.75 17.68
Basel III
&RPPRQ(TXLW\7LHU&DSLWDO5DWLR 14.22 13.57 14.00 11.72 12.08 11.88 12.25 9.48
7LHU&DSLWDO5DWLR 14.22 13.57 14.00 11.72 12.08 11.88 12.25 9.48
7RWDO&DSLWDO5DWLR 18.12 17.73 18.10 16.19 15.73 15.92 16.70 14.42
358
Leverage Ratio (%) 8.12 7.91 8.32 7.04 n/a n/a n/a n/a
STATISTICS
QUARTERLY
Assets Quality
*URVV13$UDWLR 6.37 6.03 5.66 4.87 3.69 4.25 2.96 1.95

1HW13$UDWLR 4.53 4.32 4.01 3.42 2.39 3.12 1.97 1.02
Regulatory Liquidity
'RPHVWLF%DQNLQJ8QLW 21.51 22.32 22.94 22.82 21.50 21.17 21.64 21.18
2Ʃ6KRUH%DQNLQJ8QLW 26.88 28.34 28.23 28.36 25.78 24.28 29.39 28.76
/LTXLGLW\&RYHUDJH5DWLR5XSHH
0LQLPXP5HTXLUHPHQW 177.29 153.03 166.82 162.35 125.03 122.20 157.98 127.65
/LTXLGLW\&RYHUDJH5DWLR$OO&XUUHQF\
0LQLPXP5HTXLUHPHQW 149.17 115.26 129.10 138.11 125.42 100.08 119.45 100.01
1HW6WDEOH)XQGLQJ5DWLR
0LQLPXP5HTXLUHPHQW 126.80 128.09 130.32 128.14 n/a n/a n/a n/a
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As at 31st December 2019 2018 2019 2018
Regulatory Capital (Rs 000)

&RPPRQ(TXLW\7LHU,&DSLWDO 96,794,652 79,238,528 101,088,754 84,151,213
Total Tier I Capital 96,794,652 79,238,528 101,088,754 84,151,213
Total Capital 123,364,882 103,161,168 127,814,196 108,866,759
Regulatory Capital Ratios (%)

&RPPRQ(TXLW\7LHU,&DSLWDO5DWLR
PLQLPXPUHTXLUHPHQW 14.22 12.08 14.05 12.13
Total Tier I Capital Ratio
Total Capital Ratio
/HYHUDJH5DWLRPLQLPXPUHTXLUHPHQW 8.12 n/a 8.24 n/a
Regulatory Liquidity
6WDWXWRU\/LTXLG$VVHWV5V%DQN 181,901,984 173,516,297 n/a n/a
6WDWXWRU\/LTXLG$VVHWV5DWLRPLQLPXPUHTXLUHPHQW
'RPHVWLF%DQNLQJ8QLW 21.51 21.50 n/a n/a
2Ʃ6KRUH%DQNLQJ8QLW 26.88 25.78 n/a n/a
7RWDO6WRFNRI+LJK4XDOLW\/LTXLG$VVHWV5V 106,699,495 111,973,104 n/a n/a
/LTXLGLW\&RYHUDJH5DWLR5XSHH
PLQLPXPUHTXLUHPHQW 177.29 125.03 n/a n/a
/LTXLGLW\&RYHUDJH5DWLR$OOFXUUHQF\
PLQLPXPUHTXLUHPHQW 149.17 125.42 n/a n/a
1HW6WDEOH)XQGLQJ5DWLRPLQLPXPUHTXLUHPHQW 126.80 n/a n/a n/a
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As at 31st December 2019 2018 2019 2018
Rs 000 Rs 000 Rs 000 Rs 000
Common Equity Tier I (CET I) Capital after adjustments 96,794,652 79,238,528 101,088,754 84,151,213
Common Equity Tier I (CET I) Capital 102,066,829 82,227,786 105,975,625 85,647,360
Stated capital 47,622,493 32,795,952 47,622,493 32,795,952
6WDWXWRU\UHVHUYHV 4,040,000 3,470,000 4,204,000 3,609,000
3XEOLVKHGUHWDLQHGHDUQLQJV$FFXPXODWHGUHWDLQHGORVVHV 6,854,126 6,922,653 10,598,922 10,203,227
3XEOLVKHGDFFXPXODWHGRWKHUFRPSUHKHQVLYHLQFRPH2&, 115,039 129,280 115,039 129,280
General and other disclosed reserves 43,435,171 38,909,901 43,435,171 38,909,901
8QSXEOLVKHGFXUUHQW\HDU
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2UGLQDU\VKDUHVLVVXHGE\FRQVROLGDWHGEDQNLQJDQGƪQDQFLDOVXEVLGLDULHVRIWKH
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Total adjustments to CET I Capital 5,272,177 2,989,258 4,886,871 1,496,147
*RRGZLOOQHW
,QWDQJLEOHDVVHWVQHW 995,137 1,137,422 1,055,341 1,225,519
'HIHUUHGWD[DVVHWVQHW 3,737,512 989,343 3,738,064
2WKHUV,QYHVWPHQWVLQWKHFDSLWDORIEDQNLQJ ƪQDQFLDOLQVWLWXWLRQV 539,528 862,493 93,466 270,628
Additional Tier I (AT I) Capital after adjustments
Additional Tier I (AT I) Capital
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Total adjustments to AT I Capital
Investment in own shares
Others
Tier II Capital after adjustments 26,570,230 23,922,640 26,725,442 24,715,546
Tier II Capital 26,570,230 23,922,640 26,725,442 24,715,546
4XDOLI\LQJ7LHU,,FDSLWDOLQVWUXPHQWV 19,520,068 20,574,135 19,520,068 21,367,041
Revaluation gains 453,703 453,703 453,703 453,703
6WDJH RIVWDJHLPSDLUPHQWSURYLVLRQORDQORVVSURYLVLRQ 6,596,459 2,894,802 6,751,671 2,894,802
,QVWUXPHQWVLVVXHGE\FRQVROLGDWHGEDQNLQJDQGƪQDQFLDOVXEVLGLDULHVRIWKH
Total adjustments to Tier II
Investment in own shares
Others
CET I Capital 96,794,652 79,238,528 101,088,754 84,151,213
Total Tier I Capital 96,794,652 79,238,528 101,088,754 84,151,213
Total Capital 123,364,882 103,161,168 127,814,196 108,866,759
Total Risk Weighted Assets (RWA) 680,832,728 655,869,274 719,621,652 693,801,164

5:$VIRU&UHGLW5LVNUHIHUWDEOH1R 641,795,888 622,589,204 675,810,628 656,982,044
5:$VIRU2SHUDWLRQDO5LVNUHIHUWDEOH1R 35,042,008 28,669,934 39,816,192 32,208,984
5:$VIRU0DUNHW5LVNUHIHUWDEOH1R 3,994,832 4,610,136 3,994,832 4,610,136
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Total Tier I Capital Ratio (%) 14.22 12.08 14.05 12.13
7RWDO&DSLWDO5DWLRLQFOXGLQJ&DSLWDO&RQVHUYDWLRQ%XƩHU&RXQWHUF\FOLFDO
&DSLWDO%XƩHU +/$UHTXLUHPHQWRQ'6,%V 18.12 15.73 17.76 15.69
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5,6.0,7,*$7,21ʁ&50ʄ())(&76
Exposures before Credit Exposures post CCF and CRM RWA and RWA density
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CRM
Asset Class On-balance 2ƩEDODQFH On-balance 2ƩEDODQFH RWA RWA density
sheet amount sheet amount sheet amount sheet amount
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 (%)
Claims on central government and CBSL 185,005,868 185,005,868 13,338,915 7
&ODLPVRQSXEOLFVHFWRUHQWLWLHV 16,976,659 6,060,054 2,239,721 5,721,219 6,748,384 85
&ODLPVRQEDQNVH[SRVXUHV 14,908,741 442,871 14,908,741 442,871 6,828,372 44
&ODLPVRQƪQDQFLDOLQVWLWXWLRQV 33,096,142 1,294,040 33,096,142 1,148,935 19,087,438 56
Claims on corporates 381,660,451 378,885,715 355,717,261 45,563,081 381,495,076 95
Retail claims 194,888,915 6,151,048 179,678,088 3,542,329 127,921,669 70
&ODLPVVHFXUHGE\UHVLGHQWLDOSURSHUW\ 50,335,879 50,335,879 39,615,557 79
1RQSHUIRUPLQJDVVHWV 28,527,621 28,527,621 32,732,835 115
+LJKHUULVNFDWHJRULHV 973,342 973,342 2,433,354 250
Cash items and other assets 26,940,005 26,940,005 11,594,288 43
933,313,623 392,833,728 877,422,668 56,418,435 641,795,888 69
7$%/(Ⱦʁ%ʄ*5283&5(',75,6.$6$767'(&(0%(581'(567$1'$5',6('$3352$&+Ȋ&5(',75,6.(;32685(6$1'
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Asset Class On-balance 2ƩEDODQFH On-balance 2ƩEDODQFH RWA RWA density
sheet amount sheet amount sheet amount sheet amount
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 (%)
Claims on central government and CBSL 187,325,561 187,325,561 13,338,915 7
&ODLPVRQSXEOLFVHFWRUHQWLWLHV 16,976,659 6,060,054 2,239,721 5,721,219 6,748,384 85
&ODLPVRQEDQNVH[SRVXUHV 14,949,581 442,871 14,949,581 442,871 6,837,251 44
&ODLPVRQƪQDQFLDOLQVWLWXWLRQV 26,900,441 1,294,040 26,900,441 1,148,935 16,007,645 57
Claims on corporates 380,390,575 376,108,920 354,298,664 45,563,081 380,076,478 95
Retail claims 229,109,793 6,151,048 213,898,967 3,542,329 157,154,132 72
&ODLPVVHFXUHGE\UHVLGHQWLDOSURSHUW\ 50,335,879 50,335,879 39,615,557 79
1RQSHUIRUPLQJDVVHWV 31,151,932 31,151,932 36,457,558 117
+LJKHUULVNFDWHJRULHV 0
Cash items and other assets 35,070,378 35,070,378 19,574,708 56
972,210,799 390,056,933 916,171,124 56,418,435 675,810,628 69
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RISK WEIGHTS
Risk Weight 0% 20% 50% 60% 75% 100% 150% >150% Total credit
exposures
Asset Class amount
Claims on central government and CBSL 118,311,294 66,694,574 185,005,868
&ODLPVRQSXEOLFVHFWRUHQWLWLHV 1,515,695 6,445,245 7,960,940
&ODLPVRQEDQNVH[SRVXUHV 8,580,624 3,317,481 3,453,507 15,351,612
&ODLPVRQƪQDQFLDOLQVWLWXWLRQV 30,315,277 3,929,800 34,245,077
Claims on corporates 16,330,556 14,504,979 369,381,472 1,063,335 401,280,342
Retail claims 25,190,875 7,979,768 8,622,437 81,100,339 60,326,998 183,220,417
&ODLPVVHFXUHGE\UHVLGHQWLDOSURSHUW\ 21,440,645 28,895,234 50,335,879
1RQSHUIRUPLQJDVVHWV 960,640 18,195,912 9,371,069 28,527,621
+LJKHUULVNFDWHJRULHV 973,342 973,342
Cash items and other assets 15,245,049 125,835 11,569,121 26,940,005
158,747,218 101,227,052 70,539,022 8,622,437 81,100,339 502,197,289 10,434,404 973,342 933,841,103
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RISK WEIGHTS
Risk Weight 0% 20% 50% 60% 75% 100% 150% >150% Total credit
exposures
Asset Class amount

Risk & Governance
Claims on central government and CBSL 120,630,987 66,694,574 187,325,561
&ODLPVRQSXEOLFVHFWRUHQWLWLHV 1,515,695 6,445,245 7,960,940
&ODLPVRQEDQNVH[SRVXUHV 8,619,098 3,319,847 3,453,507 15,392,452
&ODLPVRQƪQDQFLDOLQVWLWXWLRQV 24,083,463 3,965,913 28,049,376
Claims on corporates 16,330,556 14,504,979 367,962,875 1,063,335 399,861,745
Retail claims 30,050,113 8,141,239 8,622,437 81,100,339 89,527,168 217,441,296
&ODLPVVHFXUHGE\UHVLGHQWLDOSURSHUW\ 21,440,645 28,895,234 50,335,879
1RQSHUIRUPLQJDVVHWV 960,640 18,619,400 11,571,892 31,151,932
+LJKHUULVNFDWHJRULHV
Cash items and other assets 15,395,002 125,835 19,549,541 35,070,378
166,076,102 101,426,997 64,309,574 8,622,437 81,100,339 538,418,883 12,635,227 972,589,559
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Capital charge Fixed factor *URVVLQFRPH$YHUDJHORDQV DGYDQFHV Capital charge Fixed factor *URVVLQFRPH$YHUDJHORDQV DGYDQFHV
Business lines factor 1st Year 2nd Year 3rd Year factor 1st Year 2nd Year 3rd Year
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
ƶH$OWHUQDWLYH6WDQGDUGLVHG$SSURDFK
&RUSRUDWHƪQDQFH 2,145,909 3,089,486 3,803,781 2,145,909 3,089,486 3,803,781
Trading and sales 4,194,220 5,350,074 5,622,260 6,687,182 8,839,142 9,586,448
3D\PHQWDQGVHWWOHPHQW 2,793 4,603 6,979 2,793 4,603 6,979
$JHQF\VHUYLFHV 6,177 5,290 6,236 6,177 5,290 6,236
Asset management
5HWDLOEURNHUDJH
5HWDLOEDQNLQJ 233,051,857 280,851,368 317,715,364 233,051,857 280,851,368 317,715,364
&RPPHUFLDOEDQNLQJ 202,489,014 251,660,060 303,191,434 202,489,014 251,660,060 303,191,434
&DSLWDOFKDUJHIRU2SHUDWLRQDO5LVN5V 4,380,251 4,977,024

5LVN:HLJKWHG$PRXQWIRU2SHUDWLRQDO5LVN5V 35,042,008 39,816,192
7$%/(Ⱦ0$5.(75,6.$6$767'(&(0%(581'(567$1'$5',6('0($685(0(170(7+2'
364
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BASEL III
Rs 000 Rs 000
D &DSLWDOFKDUJHIRULQWHUHVWUDWHULVN 396,487 396,487

&$3,7$/$'(48$&<Ⱦ
General interest rate risk 396,487 396,487

Net long or short position 396,487 396,487
6SHFLƪFLQWHUHVWUDWHULVN

E &DSLWDOFKDUJHIRUHTXLW\ 15,350 15,350
*HQHUDOHTXLW\ULVN 9,035 9,035
6SHFLƪFHTXLW\ULVN 6,315 6,315
F &DSLWDOFKDUJHIRUIRUHLJQH[FKDQJH JROG 87,517 87,517
G &DSLWDOFKDUJHIRU0DUNHW5LVNDEF 499,354 499,354
5LVN:HLJKWHG$PRXQWIRU0DUNHW5LVNG 3,994,832 3,994,832
SUMMARY DISCUSSION ON ADEQUACY/ Capital Management Process Moving Forward

MEETING CURRENT AND FUTURE CAPITAL ,QRUGHUWRFRPSO\ZLWKWKHQHZ Moving forward with the Capital Management
REQUIREMENTS Basel III guidelines, Sampath Bank’s Capital 3ODQWKH%DQNZLOOH[HFXWHVSHFLƪFPHGLXP
Overview Management Process was revamped and the term and long term strategies to improve
+DYLQJXQGHUVWRRGWKDWSURSHUť&DSLWDO WKUHH\HDU&DSLWDO0DQDJHPHQW FDSLWDODGHTXDF\UDWLRVLQOLQHZLWK%DVHO,,,
0DQDJHPHQWŦLVYLWDOLQHQVXULQJWKHORQJ Plan was rolled out at the end of 2019. PLQLPXPUHJXODWRU\UHTXLUHPHQWV,QDGGLWLRQ
WHUPVWDELOLW\RIWKHEXVLQHVV6DPSDWK%DQN QHFHVVDU\DFWLRQVKDYHEHHQLGHQWLƪHGDQG
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LQWHJUDWHGZLWKWKH,QWHUQDO&DSLWDO$GHTXDF\ optimize the Risk Weighted Assets for the
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$VVHVVPHQW3URFHVV,&$$3DVZHOODVWKH purpose of improving the capital allocation of
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Bank’s Strategic Plan. the Bank.
minimum requirements.
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Increasing competition and growing market
Management Plan comes under the purview of
FRPSOH[LW\LQUHFHQWWLPHVKDYHFDOOHGIRU
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VWULFWHUUHJXODWRU\UHTXLUHPHQWVWREULQJ
FRQVLVWVRIWKHPRVWVHQLRUDQGH[SHULHQFHG
greater focus on the Capital Management
Directors of the Bank.
IXQFWLRQƶH%DVHO,,,&DSLWDO6WDQGDUGV
LQWURGXFHGE\WKH&%6/KDVSURYLGHGVWULQJHQW
3URDFWLYHHƩRUWVWRFRPSO\ZLWKWKH
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Basel III regulations saw the Bank increases
FRQVLVWHQF\DQGWKHWUDQVSDUHQF\RIWKHLU
LWVFDSLWDOOHYHOVE\LVVXLQJ%DVHO,,,FRPSOLDQW
ť&DSLWDOŦWKURXJKWKHLQWURGXFWLRQRIQHZ
instruments such as;
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capital instruments. amounting to Rs 7 Bn with the
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2019.
y ƶH5LJKWV,VVXHWKDWUDLVHG5V%Q
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365
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7$%/(Ⱦ%$6(/,,,/,48,',7<&29(5$*(5$7,2Ⱦ$//&855(1&<

Total Total Total Total
un-weighted weighted un-weighted weighted
value value value value
Rs 000 Rs 000 Rs 000 Rs 000
Total Stock of High-Quality Liquid Assets (HQLA) 106,851,644 106,699,495 112,552,036 111,973,104
Level 1 assets 106,547,346 106,547,346 111,035,561 111,035,561
Level 2A assets 512,300 435,455
Level 2B assets 304,298 152,149 1,004,175 502,088
7RWDO&DVK2XWƫRZV 932,849,280 166,899,495 906,411,402 183,185,755

Deposits 574,364,977 57,436,498 539,526,007 53,952,601
Unsecured wholesale funding 133,794,087 62,300,138 145,750,594 82,902,899
Secured funding transactions 15,918,686 13,412,901
8QGUDZQSRUWLRQRIFRPPLWWHGLUUHYRFDEOHIDFLOLWLHVDQGRWKHUFRQWLQJHQW
IXQGLQJREOLJDWLRQV 167,941,799 6,333,128 168,140,031 6,748,386
Additional requirements 40,829,731 40,829,731 39,581,869 39,581,869
7RWDO&DVK,QƫRZV 101,312,900 95,372,870 101,578,762 93,905,610

Maturing secured lending transactions
EDFNHGE\FROODWHUDO 42,578,990 42,283,120 36,698,629 35,944,875
Committed facilities
2WKHULQƫRZVE\FRXQWHUSDUW\ZKLFKDUHPDWXULQJZLWKLQGD\V 15,722,343 12,498,293 21,572,430 18,449,004
Operational deposits 2,420,110 3,795,972
2WKHUFDVKLQƫRZV 40,591,457 40,591,457 39,511,731 39,511,731
7RWDO1HW&DVK2XWƫRZV 831,536,380 71,526,625 804,832,640 89,280,145

/LTXLGLW\&RYHUDJH5DWLR6WRFNRI+LJK4XDOLW\/LTXLG$VVHWV7RWDO
1HW&DVK2XWƫRZV 149.17 125.42
7$%/(Ⱦ%$6(/,,,/(9(5$*(5$7,2$6$767'(&(0%(5
Item Bank Group

Rs 000 Rs 000
Total Tier I Capital 96,794,652 101,088,754

Total exposure 1,192,517,789 1,227,340,871
2QEDODQFHVKHHWH[SRVXUHH[FOXGLQJGHULYDWLYHVDQGVHFXULWLHVƪQDQFLQJWUDQVDFWLRQV
EXWLQFOXGLQJFROODWHUDO 957,078,321 992,131,842
'HULYDWLYHH[SRVXUH 164,074,213 164,074,213
6HFXULWLHVƪQDQFLQJWUDQVDFWLRQH[SRVXUH 17,267,796 17,037,357
2WKHURƩEDODQFHVKHHWH[SRVXUH 54,097,459 54,097,459
%DVHO,,,/HYHUDJH5DWLR7RWDO7LHU,FDSLWDO7RWDOH[SRVXUH
366
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Capital instruments issued by the Bank
Description of the capital instrument 2015-2020 2016-2021 2017-2022 2018-2023 2019-2024

Listed Rated Unsecured Subordinated Listed Rated Unsecured Subordinated Basel III Tier II compliant Listed Basel III Tier II compliant Listed Basel III Tier II compliant Listed
Redeemable Debentures Redeemable Debentures Rated Unsecured Subordinated Rated Unsecured Subordinated Rated Unsecured Subordinated
Redeemable Debentures Redeemable Debentures Redeemable Debentures
Issuer Sampath Bank PLC Sampath Bank PLC Sampath Bank PLC Sampath Bank PLC Sampath Bank PLC
8QLTXHLGHQWLƪHU '/.' '/.' '/.' '/.' '/.'
'/.' '/.'
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Original date of issuance WK1RYHPEHU 10th June 2016 VW'HFHPEHU 20th March 2018 WK)HEUXDU\
3DUYDOXHRILQVWUXPHQWSHUGHEHQWXUH 5V 5V 5V 5V 5V
Perpetual or dated Dated Dated Dated Dated Dated

2ULJLQDOPDWXULW\GDWHLIDSSOLFDEOH WK1RYHPEHU 10th June 2021 VW'HFHPEHU 20th March 2023 WK)HEUXDU\
$PRXQWUHFRJQLVHGLQUHJXODWRU\FDSLWDO
LQ5VDVDWWKHUHSRUWLQJGDWH 1,400,000 1,800,000 3,600,000 4,875,000 5,950,000
$FFRXQWLQJFODVVLƪFDWLRQ(TXLW\/LDELOLW\ /LDELOLW\ /LDELOLW\ /LDELOLW\ /LDELOLW\ /LDELOLW\
Issuer call subject to prior supervisory approval
Optional call date, contingent call dates and
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1RQFXPXODWLYHRUFXPXODWLYH Cumulative Cumulative Cumulative Cumulative Cumulative
Convertible or Non-convertible 1RQ&RQYHUWLEOH 1RQ&RQYHUWLEOH &RQYHUWLEOH &RQYHUWLEOH &RQYHUWLEOH

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FRPSDQ\ZLWKRXWDQ\UHTXLUHPHQWRIDSSURYDOE\WKHGHEHQWXUHKROGHUVLQFRPSOLDQFHZLWK%DVHO,,,UHTXLUHPHQWV8SRQWKHRFFXUUHQFHRIDWULJJHUHYHQWWKHRXWVWDQGLQJEDODQFHRIWKHGHEHQWXUHVLQFOXGLQJWKH
WRWDOSDUYDOXHRIWKHGHEHQWXUHVDQGGHEHQWXUH,QWHUHVWDFFUXHGDQGXQSDLGDVDWWKDWGDWHZLOOEHSHUPDQHQWO\FRQYHUWHGWRRUGLQDU\YRWLQJVKDUHVDWWKHFRQYHUVLRQSULFH
ƶHFRQYHUVLRQUDWHZLOOEHEDVHGRQWKHVLPSOHDYHUDJHRIWKHGDLO\9ROXPH:HLJKWHG$YHUDJH3ULFH9:$3RIDQRUGLQDU\YRWLQJVKDUHDVSXEOLVKHGE\WKH&RORPER6WRFN([FKDQJHGXULQJWKHWKUHHPRQWKV

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Item Carrying values Carrying values Subject to credit Subject to Not subject
as reported under scope risk framework market risk to capital
in published of regulatory framework requirements
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statements deduction from
capital
Rs 000 Rs 000 Rs 000 Rs 000 Rs 000
Assets 962,350,498 967,442,939 933,523,799 26,485,899 9,833,838

Cash & cash equivalents 17,789,176 17,802,915 17,802,915
Balances with Central Bank of Sri Lanka 31,028,270 31,028,270 31,028,270
3ODFHPHQWVZLWKEDQNV 7,251,305 7,251,657 7,251,657
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 862,754
measured at fair value 11,130,230 11,073,241 11,073,241
ORDQV DGYDQFHV 689,377,504 705,820,821 701,608,875 4,611,662
GHEW RWKHULQVWUXPHQWV 156,293,495 155,288,767 154,685,772
comprehensive income 17,331,724 16,468,101 923,496 15,412,658 131,947
,QYHVWPHQWLQVXEVLGLDULHV 2,394,701 1,997,755 1,590,175 407,580
3URSHUW\SODQW HTXLSPHQW 8,466,366 8,744,524 8,744,524
,QWDQJLEOHDVVHWV 995,137 995,137 995,137
5LJKWRIXVHDVVHWV 4,059,219
'HIHUUHGWD[DVVHWV 3,737,512 1,083,636 3,737,512
Other assets 11,633,105 9,888,115 9,888,115
Liabilities 857,344,714 852,422,058

'XHWREDQNV 1,511,665
'HULYDWLYHƪQDQFLDOLQVWUXPHQWV 604,069
GXHWRGHSRVLWRUV 717,250,492 700,251,483
GXHWRRWKHUERUURZHUV 55,661,729 55,174,934
GXHWRGHEWVHFXULWLHVKROGHUV 37,642,049 36,026,759
5HWLUHPHQWEHQHƪWREOLJDWLRQ 3,651,642 2,264,409
&XUUHQWWD[OLDELOLWLHV 7,427,315 11,832,723
'HIHUUHGWD[OLDELOLWLHV
7RWDOJURVVRƩEDODQFHVKHHWOLDELOLWLHV 392,833,728 392,833,728 392,833,728

Guarantees 49,134,959 49,134,959 49,134,959
'RFXPHQWDU\FUHGLW 17,335,325 17,335,325 17,335,325
Acceptance 14,169,804 14,169,804 14,169,804
Other contingent items 116,048,825 116,048,825 116,048,825
Commitment for unutilised facilities 195,100,180 195,100,180 195,100,180
Other commitments 1,044,635 1,044,635 1,044,635
Shareholders' equity 105,005,784 115,020,881

Stated capital 47,622,493 47,622,493
RIZKLFK$PRXQW(OLJLEOHIRU&(7, 47,622,493 47,622,493
RIZKLFKDPRXQWHOLJLEOHIRU$7,
Retained earnings 6,106,642 22,211,678
Accumulated other comprehensive income 807,879
Other reserves 50,468,770 45,186,710
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D )XQGVGHSRVLWHGZLWKRUOHQWWRRWKHUƪQDQFLDOLQVWLWXWLRQV 32,016,013
L)XQGVGHSRVLWHG 9,848,256
LL/HQGLQJ 22,167,757
E +ROGLQJVRIVHFXULWLHVLVVXHGE\RWKHUƪQDQFLDOLQVWLWXWLRQV 9,429,309
F 1HWSRVLWLYHFXUUHQWH[SRVXUHRIVHFXULWLHVƪQDQFLQJWUDQVDFWLRQV6)7VZLWKRWKHUƪQDQFLDOLQVWLWXWLRQV 869,285
G 2YHUWKHFRXQWHU27&GHULYDWLYHVZLWKRWKHUƪQDQFLDOLQVWLWXWLRQVWKDWKDYHDQHWSRVLWLYHPDUNWRPDUNHWYDOXH 1,628,399
,QWUDƪQDQFLDOV\VWHPDVVHWV 43,943,006
6HFWLRQ,QWUDƪQDQFLDOV\VWHPOLDELOLWLHV
D )XQGVGHSRVLWHGE\RUERUURZHGIURPRWKHUƪQDQFLDOLQVWLWXWLRQV 73,560,681
L)XQGVGHSRVLWHG 5,731,716
LL%RUURZLQJV 67,828,965
E 1HWQHJDWLYHFXUUHQWH[SRVXUHRIVHFXULWLHVƪQDQFLQJWUDQVDFWLRQVZLWKRWKHUƪQDQFLDOLQVWLWXWLRQV 230,439
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Section 4 - Securities outstanding

Securities outstanding 38,844,827
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Section 5 - Payments made in the reporting year (excluding intra-group payments)
3D\PHQWVDFWLYLW\ 3,513,862,342
Section 6 - Assets under custody

$VVHWVXQGHUFXVWRG\ 3,500,000
Section 7 - Underwritten transactions in debt and equity markets

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Section 8 - Trading volume

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Complexity Indicators
Section 9 - Notional amount of over the counter (OTC) derivatives
OTC derivatives 116,048,825
Section 10 - Level 2 assets

Level 2 assets 304,298
6HFWLRQ)LQDQFLDODVVHWVUHFRJQLVHGWKURXJKSURƪWRUORVVPHDVXUHGDWIDLUYDOXHDQGƪQDQFLDODVVHWVIDLUYDOXH
through other comprehensive income
D 'HEWLQVWUXPHQWV 26,478,477
E (TXLW\LQVWUXPHQWV 1,983,533
c. Derivatives 862,754
Section 12 - Cross jurisdictional liabilities

&URVVMXULVGLFWLRQDOOLDELOLWLHVH[FOXGLQJGHULYDWLYHVDQGLQWUDJURXSOLDELOLWLHV 39,390,262
Section 13 - Cross jurisdictional claims

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GRI 102: GENERAL DISCLOSURES
GRI General Disclosures 3DJHQXPEHUVDQGRU85/V Remarks
1. Organisational Profile
Name of the organisation 17, Inner Back Cover
$FWLYLWLHVEUDQGVSURGXFWVDQGVHUYLFHV
Location of headquarters Inner Back Cover
Location of operations 111
Ownership and legal form Inner Back Cover
Markets served 65
Scale of the organisation 11,13,45
,QIRUPDWLRQRQRWKHUHPSOR\HHVDQGRWKHUZRUNHUV 81
6XSSO\FKDLQ Procurement Practices
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2. Strategy
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4. Governance
Governance structure
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environmental and social topics
Consulting stakeholders on economic, environmental 48,146,158,166
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committees
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Nominating and selecting the highest governance 141,152,189
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Conflicts of interest 121,160,162,167,169,178,180
5ROHRIKLJKHVWJRYHUQDQFHERG\LQVHWWLQJSXUSRVH
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Measures taken to develop and enhance the 146,148,152,165 In addition to the measures taken
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economic, environmental and social topics knowledge of its highest governing
Processes and actions taken in response to evaluation ERG\RQHFRQRPLFHQYLURQPHQWDO
RIWKHSHUIRUPDQFHRIWKHKLJKHVWJRYHUQDQFHERG\ţV and social topics further steps will
in respect to governance of performance economic, EHWDNHQLQWLPHWRIDFWRUWKHVDLG
environmental and social topics concerns, when evaluating the overall
performance of the Board parallel to
the aforesaid continuous knowledge
enhancement process.
,GHQWLI\LQJDQGPDQDJLQJHFRQRPLFHQYLURQPHQWDO 48,92,146,165
and social impacts
370
GRI General Disclosures 3DJHQXPEHUVDQGRU85/V Remarks

Effectiveness of risk management processes

Review of economic, environmental, and social topics Board takes it to consideration the
economic, social and environmental
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committee meetings.
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reporting
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through Whistle Blowing. Immediate
actions were taken to conduct
inquiries covering the areas/issues
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Remuneration policies
Process for determining remuneration
Stakeholders’ involvement in remuneration *
Annual total compensation ratio of highest paid *
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List of stakeholder groups
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6. Reporting practice
Entities included in the consolidated financial 114
statements
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List of material topics
Restatements of information 5 There are no restatements in
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Date of most recent report 4
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Economic Topics
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retirement plans
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GRI 202: Market Presence
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compared to local minimum wage Please use the QR code in Page No. LPSRVHGRQEDQNLQJVHFWRU+RZHYHU
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higher than the national minimum
wage rate.
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Environmental Topics
GRI 302: Energy
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performance and career development reviews
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375
INDEPENDENT ASSURANCE
REPORT TO THE SHAREHOLDERS
OF SAMPATH BANK PLC
Independent Assurance Report to Sampath might be identified in a reasonable assurance  Reconciling and agreeing the data on
Bank PLC on the Sustainability Reporting engagement. Accordingly, we do not express financial performance are properly
Criteria Presented in the Integrated Annual an opinion providing reasonable assurance. derived from the Company’s audited
Report - 2019 financial statements for the year ended
MANAGEMENT OF THE COMPANY’S 31 December 2019.
INTRODUCTION AND SCOPE OF THE RESPONSIBILITY FOR THE REPORT
 Comparison of the content of the Report
ENGAGEMENT The management of the Company is against the criteria for a Global Reporting
The management of Sampath Bank PLC responsible for the preparation of the self- Initiative, GRI Standards: ‘In accordance’ –
(“the Company”) engaged us to provide an declaration, the information and statements Comprehensive guidelines.
independent assurance on the following contained within the Report, and for
elements of the sustainability reporting criteria maintaining adequate records and internal Our procedures did not include testing
presented in the annual report- 2019 (“the controls that are designed to support the electronic systems used to collect and
Report”). sustainability reporting process in line with the aggregate the information.
GRI Sustainability Reporting Guidelines.
 Reasonable assurance on the information LIMITATIONS AND CONSIDERATIONS
on financial performance as specified on ERNST & YOUNG’S RESPONSIBILITY
Environmental and social performance data
page 355 of the Report. Our responsibility is to express a conclusion are subject to inherent limitations given their
 Limited assurance on other information as to whether we have become aware of nature and the methods used for determining,
presented in the Report, prepared in any matter that causes us to believe that the calculating and estimating such data.
accordance with the requirements of the Report is not prepared in accordance with
Global Reporting Initiative GRI Standards: the requirements of the Global Reporting CONCLUSION
‘In accordance’ – Comprehensive Initiative, GRI Standards: ‘In accordance’ -
Comprehensive guidelines. This report is made Based on the procedures performed, as
guidelines. described above, we conclude that;
solely to the Company in accordance with our
BASIS OF OUR WORK AND LEVEL OF engagement letter dated 13 October 2019.
We disclaim any assumption of responsibility  The information on financial performance
ASSURANCE as specified on page 355 of the Report
for any reliance on this report to any person
We performed our procedures to provide other than the Company or for any purpose are properly derived from the audited
limited assurance in accordance with Sri other than that for which it was prepared. financial statements of the Company for
Lanka Standard on Assurance Engagements In conducting our engagement, we have the year ended 31 December 2019.
(SLSAE 3000): ‘Assurance Engagements Other complied with the independence requirements  Nothing has come to our attention
than Audits or Reviews of Historical Financial of the Code for Ethics for Professional that causes us to believe that other
Information’, issued by the Institute of Accountants issued by the CASL. information presented in the Report
Chartered Accountants of Sri Lanka (“CASL”).
are not fairly presented, in all material
KEY ASSURANCE PROCEDURES respects, in accordance with the
The evaluation criteria used for this limited
We planned and performed our procedures Company’s sustainability practices
assurance engagement are based on the
to obtain the information and explanations and policies some of which are
Sustainability Reporting Guidelines (“GRI
considered necessary to provide sufficient derived from Sustainability Reporting
Guidelines”) and related information in
evidence to support our limited assurance Guideline, GRI Standards- ‘In accordance’
particular, the requirements to achieve GRI
conclusions. Key assurance procedures Comprehensive.
Standards ‘In accordance’ - Comprehensive
guideline publication, publicly available at included:
GRI’s global website at “www.globalreporting.
org”.  Interviewing relevant the company’s
personnel to understand the process Ernst & Young
Our engagement provides limited assurance for collection, analysis, aggregation and Chartered Accountants
as well as reasonable assurance. A limited presentation of data.
assurance engagement is substantially 13 February 2020
 Reviewing and validation of the
less in scope than a reasonable assurance Colombo
information contained in the Report.
engagement conducted in accordance with
SLSAE-3000 and consequently does not  Checking the calculations performed by
enable to obtain assurance that we would the Company on a sample basis through
become aware of all significant matters that recalculation.
376
GLOSSARY OF FINANCIAL
AND BANKING TERMS
A Average Weighted Prime Lending Rate (AWPLR) Common Equity Tier I (CET I) Capital
Acceptances $:3/5LVFDOFXODWHGE\WKH&HQWUDO%DQNZHHNO\ Consists of stated capital, other capital and revenue
ƶHVLJQDWXUHRQD%LOORI([FKDQJHLQGLFDWHVWKDWWKH EDVHGRQFRPPHUFLDOEDQNVţOHQGLQJUDWHVRƩHUHGWR reserves. CET I is the element of capital which has the
person on whom it is drawn accepts the conditions their prime customers during the week. KLJKHVWTXDOLW\DQGWKHPRVWHƩHFWLYHLQDEVRUELQJ
RIWKH%LOO,QRWKHUZRUGVD%LOORI([FKDQJHWKDWKDV losses.
B
EHHQDFFHSWHG Commitments
Basel II
Accounting Policies ƶHFDSLWDODGHTXDF\IUDPHZRUNLVVXHGE\WKH%DVHO &UHGLWIDFLOLWLHVDSSURYHGEXWQRW\HWXWLOLVHGE\WKH
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presenting Financial Statements. Measurement and Capital Standards’. &RQVROLGDWHGƪQDQFLDOVWDWHPHQWVDUHWKHƪQDQFLDO
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Actuarial Assumptions Bills sent for Collection Contingencies

$QHQWLW\ţVXQELDVHGDQGPXWXDOO\FRPSDWLEOHEHVW $ELOORIH[FKDQJHGUDZQE\DQH[SRUWHUXVXDOO\DWD A condition or situation, the ultimate outcome
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that will determine the ultimate cost of providing H[SRUWHUWRKLVEDQNZLWKDUHTXHVWWRFROOHFWWKH WKHRFFXUUHQFHRUQRQRFFXUUHQFHRIRQHRUPRUH
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Additional Tier I (AT I) Capital C Contract

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Capital Adequacy Ratio
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ƶHSHUFHQWDJHRIULVNDGMXVWHGDVVHWVVXSSRUWHG
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RIDQLQWDQJLEOHDVVHWRYHULWVXVHIXOOLIH ORFDOUHTXLUHPHQWVE\WKH&HQWUDO%DQNRI6UL/DQND LQYROYHPHQWZLWKWKHLQYHVWHHDQGKDVWKHDELOLW\
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Amortised Cost &DSLWDO&RQVHUYDWLRQ%XƩHU&&%
investee.
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OLDELOLW\LVWKHDPRXQWDWZKLFKWKHƪQDQFLDODVVHWRU EXƩHUVRXWVLGHSHULRGVRIVWUHVVZKLFKFDQEHGUDZQ Corporate Governance
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PLQXVSULQFLSDOUHSD\PHQWVSOXVRUPLQXVWKH ,WLVFRQFHUQHGZLWKWKHZD\LQZKLFKSRZHULV
Cash Equivalents
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IRULPSDLUPHQWRUXQFROOHFWDELOLW\ $EDQNLQDIRUHLJQFRXQWU\WKDWRƩHUVEDQNLQJ
Cash Flows
Asset and Liability Committee (ALCO) IDFLOLWLHVWRWKHFXVWRPHUVRIDEDQNLQDQRWKHU
&DVKƫRZVDUHLQƫRZVDQGRXWƫRZVRIFDVKDQGFDVK
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equivalents.
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$PHWKRGRIDFFRXQWLQJZKHUHE\WKHLQYHVWPHQW
monitor and approve practices relating to risk due Also known as portfolio impairment provisions.
LVUHFRUGHGDWFRVWƶH,QFRPH6WDWHPHQWUHƫHFWV
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date of acquisition.
allocations. LGHQWLƪHGDWWKHUHSRUWLQJGDWH7\SLFDOO\DVVHWVZLWKLQ
WKHFRQVXPHUEDQNLQJEXVLQHVVKRXVLQJSHUVRQDO &RVW3XVK,QƫDWLRQ
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HQWLW\VXFKDVDSDUWQHUVKLSRYHUZKLFKWKHLQYHVWRU
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VXEVLGLDU\QRUDQLQWHUHVWLQDMRLQWYHQWXUH $QXQVHFXUHGVKRUWWHUPGHEWLQVWUXPHQWLVVXHGE\ 2SHUDWLQJH[SHQVHVH[FOXGLQJLPSDLUPHQWFKDUJH
DFRUSRUDWLRQW\SLFDOO\IRUWKHƪQDQFLQJRIDFFRXQWV for loans and other losses as a percentage of total
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$:'5LVFDOFXODWHGE\WKH&HQWUDO%DQNPRQWKO\ OLDELOLWLHVƶHGHEWLVXVXDOO\LVVXHGDWDGLVFRXQW
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the corresponding interest rates. REOLJDWLRQVRUREVWUXFWVWKHUHPLWWDQFHRIIXQGVE\
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377
GLOSSARY OF FINANCIAL AND
BANKING TERMS
Credit Rating Dividend Cover Expected Credit Losses (ECLs)

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No. 93 of the Articles of Association of the
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Chartered Accountants as Auditors of the
2. To receive and consider the Statement of
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Auditors thereon.
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Meeting as a Director in terms of Article
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as a Director in terms of Article No. 87 of
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6LU-DPHV3HLULV0DZDWKD&RORPER not less than forty eight (48) hours beforeWKHWLPHƪ[HGIRUKROGLQJRIWKH0HHWLQJDQG
no registration of Proxies will be accommodated at the venue on the date of the Annual General Meeting.
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381
FORM OF PROXY
THIRTY FOURTH ANNUAL GENERAL MEETING
Sampath Bank PLC
110, Sir James Peiris Mawatha,
Colombo 02.
I/We,...............................................................................................................................................................................................................................................................................................................
bearing NIC No. ..............................................................................................................of.........................................................................................................................................................................
being a member/members of Sampath Bank PLC (the Company) hereby appoint Mr/Mrs/Miss/Ven/Rev............................................................................................
..............................................................................................................................................................................….............................................................................................…....................................
bearing NIC No. ................................................................................................of.......................................................................................................................................................................................
................................................................................................................................................................................................................................................................................................whom failing:
1 Prof Malik Ranasinghe failing him 7 Mr Rushanka Silva failing him

2 Mrs Saumya Amarasekera failing her 8 Mr Dilip de S Wijeyeratne failing him
3 Mr Sanjiva Senanayake failing him 9 Ms Aroshi Nanayakkara failing her
4 Mrs Dhara Wijayatilake failing her 10 Dr Sanjiva Weerawarana failing him
5 Ms Annika Senanayake failing her 11 Mr Deshal de Mel failing him
6 Mr Ranil Pathirana failing him 12 Mr Nanda Fernando
DVP\RXUSUR[\WRDWWHQGDQGYRWHRQDVKRZRIKDQGVRURQDSROOIRUPHXVRQP\RXUEHKDOIDWWKHƶLUW\)RXUWK$QQXDO*HQHUDO0HHWLQJRI
WKH&RPSDQ\WREHKHOGDWWKH%DOPRUDOƶH.LQJVEXU\1R-DQDGKLSDWKL0DZDWKD&RORPERRQWK0DUFKDWDPDQGDWDQ\
adjournment thereof.
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FOR AGAINST
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2. 7RUHFHLYHDQGFRQVLGHUWKH6WDWHPHQWRI$XGLWHG$FFRXQWVIRUWKH\HDUHQGHGVW'HFHPEHUZLWKWKH
Report of the Auditors thereon.
3. 7RDSSURYHWKH&DVKGLYLGHQGUHFRPPHQGHGE\WKH%RDUGRI'LUHFWRUVRI5VSHUVKDUHDVWKHƪUVWDQGƪQDO
GLYLGHQGIRUWKHƪQDQFLDO\HDUVHWRXWLQWKH1RWLFHFRQYHQLQJWKHPHHWLQJ
4. 7RHOHFW0V$URVKL1DQD\DNNDUDZKRZDVDSSRLQWHGWRWKH%RDUGWRƪOOXSDFDVXDOYDFDQF\LQWKH%RDUGLQWHUPV
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5. 7RHOHFW'U6DQMLYD:HHUDZDUDQDZKRZDVDSSRLQWHGWRWKH%RDUGWRƪOOXSDFDVXDOYDFDQF\LQWKH%RDUGLQWHUPV
6. 7RHOHFW0U'HVKDOGH0HOZKRZDVDSSRLQWHGWRWKH%RDUGWRƪOOXSDFDVXDOYDFDQF\LQWKH%RDUGLQWHUPVRI
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7. 7RUHHOHFW0U6DQMLYD6HQDQD\DNHZKRUHWLUHVE\URWDWLRQDWWKH$QQXDO*HQHUDO0HHWLQJDVD'LUHFWRULQWHUPVRI
8. 7RUHHOHFW0V$QQLND6HQDQD\DNHZKRUHWLUHVE\URWDWLRQDWWKH$QQXDO*HQHUDO0HHWLQJDVD'LUHFWRULQWHUPVRI
9. 7RUHHOHFW0U5XVKDQND6LOYDZKRUHWLUHVE\URWDWLRQDWWKH$QQXDO*HQHUDO0HHWLQJDVD'LUHFWRULQWHUPVRI
10. 7RUHHOHFW0U'LOLSGH6:LMH\HUDWQHZKRUHWLUHVE\URWDWLRQDWWKH$QQXDO*HQHUDO0HHWLQJDVD'LUHFWRULQWHUPV
11. 7RDSSURYHWKHGRQDWLRQVDQGFRQWULEXWLRQVPDGHE\WKH'LUHFWRUVGXULQJWKH\HDUXQGHUUHYLHZ
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Signed on this …………………………………day of …………………………………. 2020
Signature ……………………………………………………… NIC/PP/Co. Reg. No. of Shareholder/s ………………………… ………………………………………
Note: 1. Proxy need not be a member of the Company

,QVWUXFWLRQVUHJDUGLQJFRPSOHWLRQRI3UR[\DUHJLYHQLQQH[WSDJH
Sampath Bank PLC Annual Report 2019

INSTRUCTIONS AS TO COMPLETION
.LQGO\SHUIHFWWKHIRUPRI3UR[\DIWHUƪOOLQJLQOHJLEO\\RXUIXOOQDPHDQGDGGUHVVDQGE\VLJQLQJLQWKHVSDFHSURYLGHG
ƶHFRPSOHWHGIRUPRI3UR[\VKRXOGEHGHSRVLWHGDWWKH5HJLVWHUHG2ƬFH6HFUHWDULDW'HSDUWPHQWRIWKH&RPSDQ\DW1R

6LU-DPHV3HLULV0DZDWKD&RORPERnot less than 48 hours before,WKHDSSRLQWHGWLPHIRUKROGLQJWKH$QQXDO*HQHUDO
Meeting and no registration of Proxies will be accommodated at the venue on the date of the Annual General Meeting.
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WKHUHOHYDQWGHWDLOVLQWKHVSDFHSURYLGHGEHIRUHQDPHVRIWKH%RDUGRI'LUHFWRUVRQWKH3UR[\)RUP
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RIWKH&RPSDQ\RURIDQ\FODVVRIPHPEHUVRIWKH&RPSDQ\DQGWKHSHUVRQVRDXWKRULVHGVKDOOEHHQWLWOHGWRH[HUFLVHWKHVDPH
SRZHUVRQEHKDOIRIVXFKFRUSRUDWLRQDVWKHFRUSRUDWLRQFRXOGH[HUFLVHLILWZHUHDQLQGLYLGXDOPHPEHURIWKH&RPSDQ\Ŧ
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registration.
Name of Shareholder : ………………………………………………………………………………………….…………………
NIC No./Passport No./Co. Reg No. of Shareholder : ………………………………………………………………………………………….…………………
0HPEHUVKLS1R6KDUH&HUWLƪFDWH1R ūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūū
&'6$&1R>LIDSSOLFDEOH@ ūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūūū
No. of Shares : ………………………………………………………………………………………….…………………
Name of Proxy holder : ………………………………………………………………………………………….…………………
NIC No./Passport No. of Proxy holder : ………………………………………………………………………………………….…………………
6DPSDWK%DQN3/&$QQXDO5HSRUW
NOTES
382
STAKEHOLDER
FEEDBACK FORM
7RUHTXHVWLQIRUPDWLRQRUVXEPLWDFRPPHQWTXHU\WRWKH%DQNSOHDVHFRPSOHWHWKHIROORZLQJDQGUHWXUQWKLVSDJHWR
COMPANY SECRETARY,
Sampath Bank PLC,
No. 110, Sir James Peiris Mawatha,
&RORPER6UL/DQND
HPDLOFRPSDQ\BVHFUHWDU\#VDPSDWKON
Tel : +94 11 4730652/420/548
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Investor Student
Customer Journalist
Supplier NGO
Service Provider Special Interest Group
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RATE YOUR OVERALL IMPRESSION OF THIS REPORT IN TERMS OF:
Excellent Good Fair Poor

CONTENT AND SCOPE
Informative
Transparent
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Comprehensive
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383
STAKEHOLDER
FEEDBACK FORM
COMMENTS/QUERIES/SUGGESTIONS
..............................................................................................................................................................................................................................................................................................................................
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TICK THE APPROPRIATE BOX Yes No
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YOUR DETAILS
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CONTACT NUMBERS
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384
CORPORATE
INFORMATION
NAME OF COMPANY STOCK EXCHANGE LISTINGS Mr Rushanka Silva
Sampath Bank PLC 381,457,985 Ordinary Shares Non-Independent, Non-Executive Director
LEGAL FORM 70,000,000 Listed Rated Unsecured Mr Dilip de S Wijeyeratne

Subordinated Redeemable Debentures of Independent, Non-Executive Director
A Public Limited Liability Company
incorporated in Sri Lanka on 10th March 1986 Rs 100/- each - 2015/2020 Ms Aroshi Nanayakkara
under the Companies Act No. 17 of 1982 60,000,000 Listed Rated Unsecured Independent, Non-Executive Director
and listed on the Colombo Stock Exchange, Subordinated Redeemable Debentures of Dr Sanjiva Weerawarana
re-registered on 28th April 2008 under the Rs 100/- each - 2016/2021 Independent, Non-Executive Director
Companies Act No. 7 of 2007. A Licensed
Commercial Bank under the Banking 60,000,000 Basel III Compliant - Tier II Listed Mr Deshal de Mel
Act No. 30 of 1988. Rated Unsecured Subordinated Redeemable Independent, Non-Executive Director
Debentures with a Non-Viability Conversion of
COMPANY REGISTRATION NUMBER Rs 100/- each - 2017/2022 Mr Nanda Fernando
PQ 144 Managing Director
75,000,000 Basel III Compliant - Tier II Listed
HEAD OFFICE & REGISTERED OFFICE Rated Unsecured Subordinated Redeemable SUBSIDIARY COMPANIES
No.110, Sir James Peiris Mawatha, Debentures with a Non-Viability Conversion of Name of the Holding Nature of
Colombo 02, Sri Lanka Rs 100/- each - 2018/2023 Company % Business
TELEPHONE 70,000,000 Basel III Compliant - Tier II Listed Sampath 100.00 Renting of
Rated Unsecured Subordinated Redeemable Centre Ltd commercial
+94 (011) 2300260
Debentures with a Non-Viability Conversion of property
+94 (011) 2358358 SC Securities 100.00 Stock broking
Rs 100/- each - 2019/2024
+94 (011) 4730630 (Pvt) Ltd
+94 (011) 5331441 VAT REGISTRATION NUMBER Siyapatha 100.00 Granting leasing,
134001194 - 7000 Finance PLC hire purchase,
+94 (011) 5600600
factoring & other
FAX CREDIT RATING loan facilities &
+94 (011) 2303085 Fitch Rating: Fitch Rating Lanka Limited has accepting deposits
DƬUPHG1DWLRQDO/RQJ7HUP5DWLQJRI$OND Sampath 100.00 Software
SWIFT CODE Information development,
with stable outlook to Sampath Bank PLC
BSAMLKLX Technology renting of IT
Moody’s Rating: Moody’s Investors Service has Solutions Ltd equipment,
(Ⱦ0$,/ assigned a Foreign Currency Issuer Rating of IT resource
oper.mgr@sampath.lk B2 with stable outlook outsourcing and
info@sampath.lk BOARD OF DIRECTORS consultancy
WEB PAGE Prof Malik Ranasinghe
FOR INVESTOR RELATIONS AND
www.sampath.lk Chairman/Independent, Non-Executive
CLARIFICATIONS ON THE REPORT,
Director
AUDITORS PLEASE CONTACT
Mrs Saumya Amarasekera ƶH&RPSDQ\6HFUHWDU\
Messrs Ernst & Young
Deputy Chairperson/Non-Independent, Non- Sampath Bank PLC,
Chartered Accountants
Executive Director No. 110, Sir James Peiris Mawatha,
LAWYERS Mr Sanjiva Senanayake Colombo 02, Sri Lanka
Messrs Nithya Partners Senior Independent Director, E-mail: company_secretary@sampath.lk
Attorneys-at-Law Non-Executive Director Tel: +94 (011) 4730652/420/548
COMPANY SECRETARY Mrs Dhara Wijayatilake

Independent, Non-Executive Director
Mr Lasantha Senaratne
Attorney-at-Law Ms Annika Senanayake
Independent, Non-Executive Director
ASSISTANT COMPANY SECRETARY
Mr Muditha Walpola Mr Ranil Pathirana
Attorney-at-Law Independent, Non-Executive Director
Photography by Taprobane Street, Jayaranga Mayadunne & Bhagya Abhisheka

Ar 2019

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IN THE RIGHT DIRECTION

About this Report | 4

INTRODUCTORY INFORMATION MANAGING OUR BUSINESS MANAGEMENT DISCUSSION &

Our Vision and Values | 16 Chairman’s Message | 36 Operating Environment | 56

Governance, Compliance and Risk Reporting

website: http://www.sampath.lk • Listing Rules of the Colombo Stock Exchange (CSE)

Our Progress in Sustainability Reporting GRI102-51

2011 2012 2013 2014 - 2016 2017 - 2019

Stand-alone Report Incorporated in Stand-alone Report Integrated Report Integrated Report

Our Materiality Process Material Topics

our strategy to ensure each matter is managed

Low Medium High

Relevance to the Bank

Product research to help develop

Material Topic Why is it Material? Topic GRI Management Approach Management

Strengthening the governance

Material Topic Why is it Material? Topic GRI Management Approach Management

Total Assets CASA % Total Taxes Paid to the Government

Rs 962.4 Bn 35.2 % Rs 19.0 Bn

$VVHWV /LDELOLWLHV 5V0Q

Financial Goals and Achievements - Bank

"Our commitment to social and environmental sustainability Rs 2.6 Bn

Manufactured Investment in building, plant and equipment Rs Mn 864 1,434

1XPEHURI%HQHƪFLDULHV Electricity Saving through

No. of Persons Trained under ‘Sampath

3,000 500 1,200

Male Total ATMs No. of Branches

Sampath Bank PLC Annual Report 2019:

As part of the ongoing commitment to achieving a Net Zero Carbon Footprint,

KEEPING OUR SENSE OF

Our Vision and Values | 16

Create a learning Encourage Monitor and

ABOUT THE GRI 102-1,2

the reputation as one of (TXDOHPSKDVLVRQVWURQJFRQVLVWHQWƪQDQFLDOUHVXOWVKDYHHQDEOHG6DPSDWK%DQNWR

Current Accounts  Sampath General Current Account

Savings  Regular Savings  X-SET

 Regular Deposits  Fixed Deposits

 Sampath Samachara Loan

Pawning  Sampath Randiriya

Agent Banking  MY BANK

Gift Vouchers  Sampath Thilina  Sampath Visa Credit Cards

Treasury The key objective of WePay is to convert all cash-based

Forward Exchange Contract Treasury Bonds

Prof Malik Ranasinghe - Chairman

Mr Rushanka Silva - Director

Prof Malik Ranasinghe )RUPHU$SSRLQWPHQWV )RUPHU$SSRLQWPHQWV

Mr Sanjiva Senanayake Mrs Dhara Wijayatilake Ms Annika Senanayake

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Mr Ranil Pathirana Mr Rushanka Silva Mr Dilip de S Wijeyeratne

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Ms Aroshi Nanayakkara &XUUHQW$SSRLQWPHQWV Mr Deshal de Mel

Managing Director & Senior Deputy General Managers

Mr Nanda Fernando - Managing Director

Deputy General Managers

Mr Aruna Jayasekera - Group Chief Human Resource Officer

Assistant General Managers

Mr Rajendra Ranasinghe - Assistant General Manager - Inward Remittance/KPO/BNO

Assistant General Managers

Ms Dulsiri Jayasinghe - Assistant General Manager - FCBU/Corporate Finance

Mr Dushyantha Dassanayaka Mr Priam Kasturiratna Mr Chatura Rudesh Mr Nalaka Gunawardena

Mr Prasanna Mullegama Mr Janaka Jayasuriya Mrs Kumari Jayasuriya Mr Halin Hettigoda

Mr Udara Suraweera Mr Lakmal Munasinghe Mr Kasun Ratnayake Mr Thushantha

Mr Janaka Karunaratne Mr Keshan Dabare Mr Prabodha Cooray Mrs Manoji Hettigoda

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Prof Malik Ranasinghe )RUPHU$SSRLQWPHQWV )RUPHU$SSRLQWPHQWV

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Ms Aroshi Nanayakkara &XUUHQW$SSRLQWPHQWV Mr Deshal de Mel

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