Strategic Business

Plan for the Period

2022 - 2026
Contents Page No

Macroeconomic Outlook 3
History of the Bank 4
Vision & Mission 5
Goals and Objectives 6
Benefits to the Society and Country 7
Channel Optimization Strategy 8
SWOT Analysis 9
Current Position of the Bank 10
Projected Key Financial Milestones 11
Product Disbursement Plan 12
Marketing Strategy 13 - 16
Deposit Mobilization and Funding 17
Organizational Structure 18
Recruitments 19
Recovery Strategy 20
Projected Financials
Income Statement 21
Statement of Financial Position 22
Key Financial Ratios 23
Capital Augmentation Plan 24
Key Assumptions` 25
Annexure I - Strategic Action Plan 26 - 28 Page | 2
Annexure II - Implementation Initiatives 29 - 35
Snap Shot of the Economy
GDP GROWTH RATE
3.30% 4.30% 3.60%
2.30%

2018 2019 2020 2021 (f) 2022 (f)

-3.60%

Political Economic Foreign Revenue Doing Business

• Political stability in the
country .
• Ability to take pragmatic
decisions due to political
stability.
• Efforts made in the budget to
contain revenue gap will
improve Government revenue
• Import substitution policy will
benefit local industries and
SME sector
• Relatively low interest rates
enable entities to make fresh
investments
• Debt repayment risk may
remain high in 2022 owing to
scarcity of foreign exchange
• Medium term GDP Growth is
expected to be 5%%
• The lease of prime
properties and land in
Port City is expected to
attract more than USD
2 Bn. FDI in year 2022.
• The foreign remittances
are expected to grow
with the initiatives
taken by CBSL and
Tourist arrivals are
catching up with
promotional activities.
• Bi-lateral agreements
with friendly
governments is
expected to boost
foreign reserves.
• Sri Lanka ranked
doing business in 99th
place in the year
2020.(1 place up)
• It is expected that
government will
direct policy makers
to amend existing
laws to make Sri
Lanka more business
friendly.
.

Page | 3

Source: World Bank, IMF, Department of Census & Statistics Sri Lanka, Sri Lanka Tourism Development Authority – Nov 15,2019
History of the Bank
• Sri Lanka Savings Bank (SLSB) was established 0n 07th July 2006 with the primary objective of
providing relief to the depositors of the defaulted Pramuka Savings and Development Bank
(PSDB).

• Despite getting a balance sheet with a negative net worth of Rs. 2.1 Bn. SLSB settled all
liabilities of PSDB in 2017. It is pertinent to mention that SLSB is the only bank in Sri Lanka
which had successfully settled all deposit liabilities of a defunct bank .

• On September 30, 2010 National Development Trust Fund (NDTF) was merged with SLSB
enhancing the capital base of the Bank.

• Bank was allowed to commence lending activities in 2011 and since then Bank has made a
significant contribution to the rural economy, providing microfinance loans, small & medium
enterprise loans, self employment loans, leasing facilities, business loans and personal loans.

• As per a budget proposal made in 2016 SLSB was acquired by the National Savings Bank (NSB)
on 11th of October 2019 as a subsidiary.

• NSB developed a Business plan for the SLSB to operate as a subsidiary. However, due to
various reasons this plan could not be implemented.

• On 05th of January 2021, the Monetary Board of the Central Bank of Sri Lanka informed SLSB
either to sell, liquidate or merge with NSB and also to stop business activities.

Page | 4
Bank’s Vision and Mission

Vision
“To be the Most Preferred Development
Financing Bank”

Mission
Providing Development Financing to sub-sectors of the
Economy including the SME and Microfinance sectors to
uplift the entrepreneurship while encouraging the savings
habit of the people.

Page | 5
Goals and Objectives

To increase the loan portfolio from LKR 1.5 Billion to 31.4 Billion by the year
2026

Ten-fold
1 increase in Deposit Base to LKR 9.5 Billion

 To record PBT of LKR 1.37 Billion in the Year 2025

 To raise
2
LKR 5 Billion from the Capital Market through debt instruments

To maintain Capital Adequacy above regulatory minimum level

3
Introduce KPI based performance Management Culture

Position the Bank as “the most preferred lender” by 2026

4

Page | 6
Benefits to the Society and Country

Bank will continue to carryout Micro lending activities to grassroot level non
bankable clientele
1

Financial Inclusion

Poverty
2
Elevation through lending to grassroots level

Supporting to realize “Saubagya Dekma”

 Creation
3 and Enrichment of Entrepreneurship

Supporting and financing emerging MSME

4

Page | 7
 Channel Optimization Strategy

 Bank will operate 90 Kiosks / Window Banking Units in selected NSB

Branches by 2024 (2022 - 20, 2023 -30, 2024 - 40)

 Establishing 10 Kiosks / Windows in large State and other institutions from

2023 onwards

 Opening of 13 New Branches in Strategic Rural areas (where no NSB

Branches) from 2023 onwards

 Establishing CRM/ATM Machines

Page | 8
SWOT Analysis
Strengths
• Parent is a Trillion Rupee Reputed Government owned Bank

S • Experience in Microfinance
• Well Capitalized and Highly Liquid with Investments and Cash amounting to Rs
5.6Bn.
• High Capital Adequacy Ratio

Weaknesses
• Limited market Visibility and Presence
• Relatively low Loans and Advances Portfolio

W • Very High Dependency on Investment Income

• High vulnerability to Interest rate Fluctuations
• Poor customer reach
• Staff with lack of exposure to overall Banking
• Lack of Technological platforms and falls far below Industry Standards
• Poor Credit Culture and Credit Quality

O Opportunities
• Room to achieve high growth through Parent Synergy
• Opportunity to expand branch network and customer reach
• New Product development
• Ability to take on higher risk and high yielding products
• Ability to be a Niche Player by being the Corporate Lending Arm of the Paraent

T Threats
• Vulnerability to Interest Rates Fluctuations in Medium Term
• Higher Competition and Degeneration of Asset Quality in Industry
• Tightening Regulatory and capital Requirements
• Highly unionized staff Page | 9
• High Investment has to be made to be in par with peers in Technology
Current Position of the Bank ( As at 31st October 2021)

Number of Branches 4 (Borella, Matara, Mannar and Anuradhapura)

Number of Employees 106

Loans and Advances Portfolio (Gross) LKR 3.01 Billion (Net LKR 1.5 Billion)

Number of Savings & FD Accounts 27,566

Total Assets LKR 8.7 Billion

Total Equity LKR 6.8 Billion

Page | 10
Projected Key Financial Milestones (LKR Mn.)

Forecast
Budget - Budget - Budget - Budget - Budget -
for 31st
Yr 2022 Yr 2023 Yr 2024 Yr 2025 Yr 2026
Dec 2021

Loan portfolio (Net) 1,443 5,974 12,912 20,107 26,010 31,433

Deposit Base 718 1,451 3,074 5,515 7,444 9,566

Total Assets 8,634 12,108 16,216 22,942 29,829 34,594

Liabilities 1,826 2,527 6,168 12,248 18,141 21,414

Total Equity 6,808 9,581 10,048 10,694 11,688 13,179

Total operating income 597 1,024 1,516 1,956 2,566 3,631

Operating Profit 284 359 656 887 1,376 2,104

Net Profit after Tax 229 273 467 646 994 1,491
Page | 11
 (LKR Mn.)

Product Yr 2022 Yr 2023 Yr 2024 Yr 2025 Yr 2026

Corporate Credit &
SME 2,121 3,929 5,231 6,101 7,434
Leasing & Hire 2,053 3,533 4,602 5,350 6,405

Pawning 110 135 161 163 171

Micro Finance
Loans 1,135 1,249 1,373 1,476 1,495
Other Loans
(Personal/Educational and
Professional Loans) 625 985 1,242 1,412 1,680
Total 6,043 9,831 12,609 14,503 17,185

Page | 12
Marketing Plan

Products Offered Sales Channel Market Penetration Plan

• Income Generation Loans •NSB Branch windows •Below the line marketing – welfare
•Local/regional welfare
(IGL) societies, brand
societies and social
Micro • Self Employment Loans activation, sponsorships
organizations •training/awareness programs

• Passenger vehicles leasing • Branch inquiries • NSB/Vehicle seller affiliatemarketing

• Commercial vehicles leasing
Leasing • Equipment and machinery leasing
• Vehicle sellers anddealers
• NSB branch inquiries/referrals
• Cross selling for Micro and SME
clients
• Field Marketing Officer direct selling
– leaflets, pennants, banners
• Brand activation drives (partnerwith
NSB)
• Below theline marketing
• Leads from NSB Branches.

• Project loans • Branch inquiries • Below the line marketing

• Working capitalloans • Local institutions/societies • Leads from NSB
Corporat
• Invoice discounting • NSB branch inquiries/referrals • Client Awareness Programs
e/ SME • Equipment and Machinery financing • Regional chambers ofcommerce • Collaboration with Chambers and
Loans • Advisory services and other fee based • Field Marketing Officer direct selling Trade Organizations
services • Leads from NSB Branches
• Building relationship with Corporate
Clients
• Branch inquiries • Below the line marketing – welfare
Deposits • Savings deposits • Door2door collection societies, brand activation
• Fixed deposits • Mobile money agents (eZcash,
• Door2Door
• Mobile money deposits mcash) • High net worth individuals and
entities

• Crop/livestock loans • Branch inquiries

• Productivity enhancement loans • Farm organizations
Agri • Producer-private buyer loans (contract • Private buyers
farming loans) • Agriculture/veterinary field extension
• Participation in national/int’l credit lines officers
Page | 13
Brand Building Strategy

It is proposed to change the name of the Bank as “NSB Development Bank”
and the Logo of the Bank.

Corporate Level Campaigns

Advertising Campaigns

Corporate Customer Awareness Programs

NSB Branch Awareness Programs

BTL Marketing Campaigns

Collaboration with Trade Associations and Chambers

Page | 14
Bank’s guiding principles highlight the bank’s objective to
become the preferred institution for development finance, SME
and Micro credit while complementing its Parents’ portfolio with
its retail offerings
Guiding Principles of Sri Lanka Savings Bank

• Bank will focus on both the development banking market (Corporate , SME s to Sub Sectors and
1 Leasing, etc.)

Hybrid Mandate • Combined with its parent (NSB), SLSB will cover a wider range of financial products and services.
The ability of the bank to offer key products such as Corporate Loans , leasing ,SME & Micro
Finance will be a strategic win for both NSB and SLSB

• The bank will operate an efficient (low cost to income ratio) operating model by mainly focusing on
2 wholesale financing while delivering retail products in selected regions by utilizing NSB footprint .
Low cost operating
model • Utilize the NSB branch network, it is expected to open Kiosks in NSB Branches so that SLSB
could deliver its products such as Commercial/Corporate Loans leasing, SME and Micro Credit
facilities that are not serving by NSB.

Develop the MSME •Primary focus on the Corporate sector and SME sector with additional focus on growing the existing
sector Micro portfolio, Provide value added services such as capacity building, advisory services and project
based financing solutions to eventually transform into a full service to Corporate and SME Clients. .

Page | 15
Bank will offer the following products

Corporate/
Retail Corporate Investment Specialist Other

Deposit  Syndicated lending  Specialty finance  Business development

 Deposit
Savings  Treasury management  Agricultural  Business advice
 Savings
Fixed Deposits  Micro finance  Financial advice
 Fixed Deposits Project finance
Lending and Savings Renewable
 Lending
 Working capital Energy
 Mortgage  Mortgage
 SME loans Animal
 Leasing
 Leases  Term Loans
Husbandry
 Securitization Loans
 Commercial Papers
 Fixed deposits

Services
 Guarantee
 Funds transfer
 Enquiries
 Online banking

Page | 16
Deposit/Fund Raising Plan

 Mobilize deposits through SLSB Branches

 Borrow funds from NSB

 Offer competitive interest rates to attract deposits

 Issuing Debentures

 Other options to raise funds,

 Issue commercial papers
 Arrange securitization facility (Trust certificates) by using leasing
portfolio as security

Page | 17
 Sri Lanka Savings Bank
Proposed Organization Structure 2022-2024

Chairman & the Board of Directors

Board Nomination Human Resources & Board Credit Legal & Recovery Related Party Board Intergraded Board Audit
Committee Remuneration Committee Committee Committee Transaction Committee Risk Management Committee
General Manager/CEO Committee

Chief Manager Chief Chief Chief Mgr

Chief Chief
Chief Chief
(HR & Admin) Manager Chief Mgr - Chief Mgr - Manager (Legal) / Manager – Dealer Chief Mgr - Manager –
Manager – Risk Internal Audit
(Credit) Leasing, SME & Micro Finance (IT) Branch Company Finance &
marketing Operations Secretary Planning

Senior Mgr -
Snr Mgr -Recovery Senior Snr Mgr - Snr Mgr –
Audit 2
Manager- Finance Procurement 1
Snr Mgr –
Credit
information
Security
Officer 1 Mgr- Mgr-
Mgr Branch
Mgr Treasury Complian
- 01
(Corporate 1 ce 1
Credit) 3
Dty Mgr / Asst Mgr Dty Mgr / Asst
–information Mgr –Sys.Ad 2
Dpty Mgr/Asst Asst Mgr- Security Officer 1
Mgr 1 credit 5 Asst Mgr 2 Asst Mgr Asst Mgr Asst Mgr – Asst
Asst Mgr 1 D.Mgr/Asst D Mgr/ – Risk 1 Credit Mgr1
02
Mgr 07 Ast Mgr 2 Admin 1
Officer 1 Officer 3 Officer 1 Officer Officer Officer 2 Officer 1 Officer 1
Officer 2 Sys Main 09 02

SBA/B SBA / BA 1
SBA / SBA / SBA/BA BA SBA/BA 1 SBA / SBA/BA 3 SBA /
A1 SBA / BA /
BA 1 BA 1 1 NSB Kiosks BA 1 BA 1
13
90

Social Media Senior Office

Receptionist 01 Office Asst 02
Coordinator 1 Asst 1
Senior Driver/Driver 06
(Office Assistant)
SOA/OA 03
Care Taker 02
Senior Labour/Labourer 02
Page | 18
 Recruitments
Designation Yr 2022 Yr 2023 Yr 2024
Chief Risk Officer 1

Chief Manager - Corporate Credit 1

System Administrator (DM Level) 1

Information Security Officer (DM Level) 1

Manager-Credit (Corporate) 1 1

Assistant Manager - Credit 2 2

Internal Auditor (Chief Manager Level) 1

Chief Dealer 1
Chief Information Security Officer (SM
1
Level)
Head of Marketing (CM Level) 1

Chief Manager -Leasing SME and Marketing 1

Business Development Officers (BA Level) 30 40

Chief Finance Officer (Chief Manager Level) 1

Total 7 38 41 Page | 19
Page | 19
 Recovery Strategies
The Recovery Department will be strengthened with necessary
skilled staff

Each Branch and Key Products will be Centrally monitored by a

dedicated recovery officer

Recovery Emphasis will be given to recovery of large outstanding

Strategies Out of court settlements will be explored where possible by giving

interest concessions

Possible NPLs will be re-structured

Expected capital and Interest Recovery of PSDB NPLs

Actual Budgeted LKR Millions
Yr 2021- Up
Recovery Yr 2022 Yr 2023 Yr 2024 Yr 2025 Yr 2026
to October

PSDB 19.8 120 100 80 75 70

Page | 20
Summary Income Statement (LKR Mn.)

Draft Forecast
Budget - Budget - Budget - Budget - Budget - Yr
Accounts 31st for 31st
Yr 2022 Yr 2023 Yr 2024 Yr 2025 2026
Oct 2021 Dec. 2021

Gross Income
524 650 1,115 1,686 2,326 3,464 4,859

Interest income
496 577 867 1,458 2,102 3,274 4,653

Interest expenses
48 53 78 151 345 869 1,193
Total operating
income 477 597 1,024 1,516 1,956 2,566 3,631
Impairment
(charges)/reversal 94 40 (190 ) (162) (125) (86) (134)

Personnel expenses
180 217 262 351 490 514 545

Other expenses
63 73 102 135 169 185 256

Profit before Tax

265 284 359 656 887 1,376 2,104

Income Tax
57 55 86 189 241 382 613

Profit After Tax

209 229 273 467 646 994 1,491
Page | 21
 Summary of Financial Position

Draft
Forecast for
Financial Position Accounts Budget - Budget - Budget - Budget - Budget -
31st Dec.
(Rs.Mn) 31st Oct Yr 2022 Yr 2023 Yr 2024 Yr 2025 Yr 2026
2021
2021
Assets
Cash and cash equivalents 71 32 173 165 115 146 277
Placemenst with Banks 4,299 4,319 3,244 894 486 1,346 965
Loans and Advances 1,544 1,443 5,974 12,912 20,107 26,010 31,433
Property, plant and equipment 898 897 931 922 913 903 891
Other assets 1,967 1,942 1,786 1,323 1,321 1,424 1,028
Total Assets 8,779 8,633 12,108 16,216 22,942 29,829 34,594
Liabilities & Equity - - - - - - -
Due to depositors 798 718 1,451 3,074 5,515 7,444 9,566
Due to other borrowers 324 312 296 2,285 6,020 10,017 11,017
Other liabilities 872 795 780 809 713 681 831
Total Liabilities 1,992 1,825 2,527 6,168 12,248 18,141 21,414
Stated capital/assigned capital 3,805 3,805 3,805 3,805 3,805 3,805 3,805
Stated capital - NSB Capital fulfilment - - 2,500 2,500 2,500 2,500 2,500
Retained Earnings & Others 2,982 3,003 3,276 3,743 4,389 5,383 6,875
Total Equity 6,787 6,808 9,581 10,048 10,694 11,688 13,179
Total Liabilities and Equity 8,779 8,633 12,108 16,216 22,942 29,829 34,594
Page | 22
 Key Financial Ratios
Budget -Yr Budget -Yr Budget - Budget - Budget - Yr Budget - Yr
Performance ratio's
2021 2022 Yr 2023 Yr 2024 2025 2026

Return on Average
3.18% 3.47% 4.63% 4.53% 5.21% 6.53%
Assets
Return on Average
3.44% 3.34% 4.76% 6.23% 8.88% 11.99%
Equity

Net Interest Margin 7.06% 8.75% 10.21% 9.62% 9.58% 11.21%

Loan Growth /Net

(Rs.Mn) (625) 4,531 6,937 7,196 5,903 5,423

Cost to Income 48.51% 35.51% 32.06% 33.70% 27.24% 22.05%

Capital Adequacy
Ratio
94.87% 102.25% 64.67% 47.94% 41.71% 39.81%

Tire I Capital (Rs.

Mn.) 5,384 8,305 8,842 9,567 10,633 12,193
Page | 23
 Capital Augmentation Plan
Presently Bank has Rs. 6.8Bn in capital funds. As per the Central Bank Direction
issued, Bank should have a minimum capital of LKR 7.5 Billion as at 31st December 2022.
The Parent will fund the gap in minimum capital required.
LKR Mn.

Yr 2021 Yr 2022 Yr 2023 Yr 2024 Yr 2025 Yr 2026

Opening Balance 6,808 9,581 10,048 10,694 11,688

Stated capital/assigned capital 3,805

Stated capital - NSB Capital fulfillment 2,500

Statutory reserve fund 265 14 23 32 50 75
OCI Reserve 88
Quoted shares sold -88
Retained earnings 3,680
Portion of the Profit Period 229 273 467 646 994 1,491

Quoted shares sold - Included in Profit 88

Transfer to Statutory reserve fund (14) (23) (32) (50) (75)

Other reserves -1,259

Closing Balance 6,808 9,581 10,048 10,694 11,688 13,179

Page | 24
 Key Assumptions
 It is expected upward adjustments in interest rates in the year 2022 and
beyond.

 Fee & Commission Income have been projected proportionately based on

disbursements of last few years which was averaging to 0.75%.
 It is assumed that a sum of LKR 100 Mn could be recovered from PSBD
recoveries in year 2022.
 Bank will recruit only 7 essential staff in 2022.
 It is assumed that Investment Portfolio will generate a yield of 9%
 Other expenses have been projected taking into consideration the fact that
Bank will operate through NSB Branches

Page | 25
 Annexure I

Implementation Initiatives Summary (1/3)

Implementation Initiatives Categories
Categories Initiative Categories Initiative

Set up Banking Units in NSB Branches

Geographic Establish underwriting process
Expansion Awareness among NSB Branches
Pilot rollout of Agri and Micro products in
New selected regions
Capabilities
Corporate Lending
Recruitment of credit evaluation officers
Deposits
Upskill staff for Corporate redit evaluation
Develop target market and lending criteria Alternative deposit mobilization channels

Strategy for client acquisition, service & retention

Portfolio monitoring and portfolio reviews Other

Participate in consortium loans with NSB Develop credit review policy and function
New
Capabilities Business Establish effective risk managementdepartment
Operations Streamline lending process
SME Lending
Establish a cross functional Project Teams Establish Refinancing Department
Design product development process
Identification of MIS requirements Identify
target markets and regions Recruit/train Field
Officers

Page | 26
 Annexure I
Implementation Initiatives Summary (2/3)
Implementation Initiatives Categories
Categories Initiative Categories Initiative
Leasing
 Address Remaining CBSL Concerns Increase geographic footprint
Immediate
 2 Awareness for NSB branch managers
Expand leasing portfolio
Microfinance Wholesale
Recruitment of Field Marketing Officers (FMO)
Develop a consolidated database of all PO’s Design a benefit schemes forFMO’s
Increase the funds disbursed to existing PO's Addon’s to the Leasingmodule

Micro Loans Reactivate dormant PO’s Vehicle yard for possessed vehicles
Extend
Acquisition of new PO’s Capabilities
Systems
Capacity Building of PO's and end borrowers
Secure funding at concessional rates

Microfinance Direct

Extend Determine the target market, regions, products

Capabilities Develop market entry plan and marketing plan
Systems
Facilitate IT infrastructure for remote access 13

Page | 27
Implementation Initiatives Summary (3/3)
Implementation Initiatives Categories
Categories Initiative
Information Technology
New firewall installation

Other Production Data Center servers

Disaster Recovery site
CEFTS Implementation
Connection to common ATMswitch
Core banking system maintenance, changes
Anti-Money Laundering system
Risk Management System
Other
New POS System
Purchase necessarycomputers/equipment
Implementation of new Business Analytics Tool
Launch Mobile Banking Platform

Page | 28
Implementation Initiatives Detailed Annexure 11
New Capabilities: Corporate and SME

Initiative Scope Outline Key Outputs KPI Y1 Y2 Y3 Comm

ents

Experienced officers No. of

New Recruitment (HR) Recruitment of CRO, Chief
officers 7 37 41
Dealer, CISO, System
Adminstrator,ISO,Credit Officers
& BDOs

Expand Portfolio Large portfolio

Disbursement 2,121 3,929 5,231
(SME) Corporate Credit & SME within banks risk
LKR M
Portfolio limits

Target market Focused lending

Develop target market and
(SME)
classify lending criteria (focus
approach in line with N/A 
market penetration
on smaller SME's)
and channel
optimization plan
Market Strategy Develop strategy for client
Clear guidelines and
(SME)
acquisition (branding, lead
approach
N/A 
origination), service and
retention

Provide synergetic
Consortium Loans
Arrangements with NSB to benefits to parent
while participating in
N/A   
(SME) provide consortium loans
large scale loans

Page | 29
 Annexure 11

Implementation Initiatives Detailed

Extend Capabilities Systems: Leasing
Initiative Scope Outline Key Outputs KPI Y1 Y2 Y3 Comment
s
No. of Kiosks Kiosks in
Increase footprint Increase footprint - pennants, banners at
Extended access to in NSB NSB
selected NSB branches centered around 20 30 40
(Leasing and SME)( leasing and SME Branches branches will
SLSB branches.
products cover whole
Island in
three years

Referrals/tno Number of
Awareness Awareness programs for NSB branch Higher referrals 60 120 180
of programs) referrals per
programs managers to build and maintain from NSB year
relationships branches
(Leasing)

Large portfolio
LKR Mn.
Expand Portfolio Expand leasing portfolio within banks risk
limits 2,053 3533 4,602
(Micro)

Systems Support Add on capabilities for the Leasing module Systems support

(IT)
on the system (structuring leasing for market N/A 
installment MIS System) oriented products

Page | 30
 Annexure II

Implementation Initiatives Detailed

Grow Core: Micro Wholesale (1/2)

Initiative Scope Outline Key KPI Y1 Y2 Y3 Comments

Outputs
Develop an Develop a consolidated database of all
Up-to-date Up-to-date key
engaged Partner Organizations (PO) including
database
funding status, payment history and if applicable
management N/A 
info for
(Micro) reason for disengagement etc.
decision making

Increase funds Increase the funds disbursed to existing PO’s. Focus KPI on
disbursed to determine the capacity expansion possibilitiesHigher average LKR Bn. disbursements
existing PO‟s
for PO’s and conduct capacity building to lending to PO’s Disbursed 1.13 1.25 1.37 to be in line with

(Micro) enable expansion in portfolios budgeting

Increase the
number of Increase the number of PO's engaged with Larger list of
PO's engaged No. of PO’s 3 5 15
SLSB - reactivate dormant PO’s. engaged PO’s
(Micro)

Increase the
number of Increase the number of PO's engaged with Larger list of
PO's engaged No. of PO’s 10 10 30
SLSB - Acquisition of new PO's engaged PO’s
(Micro)

Page | 31
 Annexure 1i

Implementation Initiatives Detailed

Grow Core: Micro Wholesale (2/2)

Initiative Scope Outline Key Outputs KPI Y1 Y2 Y3 Comments

Capacity Capacity building/ and self

building of PO‟s Higher capacity of
improvement, entrepreneurship No. of
lending for PO’s 2 5 15
(Micro) programs for PO's and End events
and better NPL
borrowers on client management and
ratios
cash flow management

Secure funding at concessional rates

Secure Funding Additional funding
from international and national Secure
(Micro) donors. Leverage on the relationships
to disburse as
wholesale micro
funds  
with POs.

Page | 32
 Annexure 11

Implementation Initiatives Detailed

Extend Capabilities Systems: Micro Direct

Initiative Scope Outline Key Outputs KPI Y1 Y2 Y3 Comments

Recruit field officer/Business development Canvass Leasing LKR 100- 120 mn

Recruit field loan portfolio per
officer officers for NSB Kiosks. and SME Loans No. of FO’s
30 40 FO and fee
from NSB clientele. based services
(HR)

Determine the Determine the target market, target regions Income

List of services and
target market and loan products to be offered in the micro
products
N/A  generating
activities only
(Micro) space

Enable IT Enable IT infrastructure and solutions for Full remote access No of POS
infrastructure remote access/field officers through Mobile to client and other Machines 20 30 40
(IT) Banking System data

CBSL Aligned with


Approval Get approval from central bank for the
regulatory N/A
proposed market entry plan
(IT) requirements

Page | 33
 Annexure 11

Implementation Initiatives Detailed

Business Operations: Information Technology (1/2)

Initiative Scope Outline Key Outputs KPI Y1 Y2 Y3 Comments

Firewall System

(IT) New firewall installation Information security N/A 

Production Production datacenter setup by

purchasing high end servers and by
datacenter
clustering and virtualization create the N/A 
(IT)
required Virtual Machines for Bank
requirement of servers.
Disaster DR Site setup by purchasing new
recovery site
servers, cluster them and create Data backup N/A 
(IT) virtualized environment and sync with
the primary.
CEFTS Real time funds
(IT)
CEFTS, LANKA QR implementation
transfer
N/A 
ATM Switch Connecting to Common ATM switch of Access to ATM network 
N/A
(IT) Lanka Clear

Core banking
System
Core banking system maintenance.
Core banking 
Procure a new Core banking system system N/A
(IT) which fulfill the Bank requirements or
connect with NSB Core Banking system.

Page | 34
 Annexure 11

Implementation Initiatives Detailed

Business Operations: Information Technology (2/2)

Initiative Scope Outline Key KPI Y1 Y2 Y3 Comments

Outputs
RM System Risk
management
(IT)
Risk Management system
department
N/A

infrastructure

AML Efficient

(IT)
Set up Anti-Money Laundering
system.
adherence to
AML
N/A

requirements

Computer for staff Computers and laptops for existing Up to date

N/A
staff machinery
(IT)
Accounting system
Purchase accounting system for Efficient finance 
N/A
(IT) finance department function

Page | 35
 Annexure 11

Implementation Initiatives Detailed

Business Operations: Other

Initiative Scope Outline Key Outputs KPI Y1 Y2 Y3 Comments

DOA Delegation of Authority across all Defined roles and

(HR) business functions responsibilities
N/A 
Periodic assessment
Credit review function
Develop credit review policy and of portfolios to
(Operations) function in line with industry norms manage risk N/A 
Risk Management Consider credit,
operational,

Monitor, measure, and
(Operations) Establish risk management manage risks N/A liquidity, market
department risks

Streamline Lending
Streamline lending process Minimize time to
(Operations) (Eliminate replicative functions) disburse loans Weeks 2 1

Supervisory Coordinate with

Regulatory compliance respective
Concerns
Address concerns highlighted by the N/A  depts. to adhere
(Compliance) regulator to requirements
Implement a Security Operational Regulatory Compliance N/A
Security Operations
Center to the Bank
Center (SOC) 
Recruit experienced IT Security Regulatory Compliance N/A
Recruit CISO and
expert as CISO and strengthen the
strengthen the IT
Security Team
IT Security team 
Replace the existing cameras and Regulatory Compliance N/A
Security Camera Page | 36
implement central monitoring system
System
for all branches 
Thank You !