Sampath 2015

Read this report online
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Imagine the future.
Sampath Bank is proud to be one of Sri Lankas most future

friendly banks. For several years, weve been setting trends in
banking technologies, working through a range of social media
networks and smart-phone apps to deliver customer relevant,
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customers needs best. We maintain vibrant online and faceto-face conversations with all our customers, so were aware of
what we need to change, expand or improve each day.
The year under review has been an exciting one, where bottom
line performance and credit quality were among the industrys
best, while our increased focus on fee based banking
operations has shown remarkable results, all of which are
discussed in detail in the pages that follow.
We want to lead in our industry now and stay ahead in the
future. Our strategies are long-term and our commitment
towards corporate sustainability absolute. We believe that by
serving our stakeholders well we serve our nation well and that
remains our vision, as we look towards even greater success in
the years that lie ahead for your #FutureFriendlyBank.
SAMPATH BANK PLC Annual Report 2015
Contents
Whats in
this Report
We believe that innovative banking technologies can be a driver of peoples
success and bring massive economic and social change.
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3
Sampath Bank in 2015
4
Who we are
6
Historical Review
8
Board of Directors
18 Corporate Management
22 Chief Managers
26 Senior Management
30 Product Portfolio
32 Awards & Accolades
36 Financial Highlights
39 Non Financial Highlights
41 9LWVY[7YVSLHUK;OLTL
42 Green Recognition
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44 Chairmans Message
46 Managing Directors Review
52 Value Creation Business Model
54 Sustainability Philosophy
57 Stakeholder Management
59 Materiality Assessment
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63 GCFOs Views
69 Business Reviews
71 Personal and Branch Banking
77 Channel Management
85 Corporate Banking
91 Development Banking
97 Global Business
103 Treasury
107 Operational Support
113 Subsidiaries
117 Branch Network
125 Nostro Accounts
127 Correspondent Banks and
Exchange Companies
133 Investor Information
Corporate Citizenship
144 What Corporate Citizenship Means to Us
146 Caring for Our People
161 Supporting Our Clients
174 Informing Our Investors
What is this?
This symbol can be found across the report and draws attention to the
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most future-friendly bank
Sampath Bank PLC: No 110, Sir James Peiris Mawatha, Colombo 02, Sri Lanka. For 24/7 service,
visit http://www.sampath.lk/ Customer service. You can also call +94 (011) 2300260, (011) 2358358,
(011) 4730630, (011) 5331441, (011) 5600600.
175 Collaborating with Our Partners

178 Strengthening Our Communities
191 Preserving Our Environment
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202 Risk Management
226 Compliance Review
228 Corporate Governance
282 Board Audit Committee Report
285 Board Human Resources and
Remuneration Committee Report
287 Board Nomination Committee Report
289 Board Integrated Risk Management
Committee Report
292 Board Related Party Transactions
Review Committee Report
294 Board Credit Committee Report
296 Board Strategic Planning
Committee Report
297 Board Shareholder Relations
Committee Report
299 Board Treasury Committee Report
300 Board Marketing Committee Report
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302 Financial Calendar
303 Annual Report of the Board of
Directors on the Affairs of the Company
313 Directors Statement on Internal
Control Over Financial Reporting
315 Independent Assurance Report to the Board
of Directors of Sampath Bank PLC
316 Managing Directors and Group

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Responsibility Statement
317 Statement of Directors
Responsibility for Financial Reporting
319 Independent Auditors Report to the
Shareholders of Sampath Bank PLC
320 :[H[LTLU[VM7YV[VY3VZZ
321 Statement of Comprehensive Income
322 Statement of Financial Position
323 Statement of Cash Flow
325 Statement of Changes in Equity
327 Notes to the Financial Statements
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454 :[H[LTLU[VM7YV[VY3VZZPU<:
455 Statement of Comprehensive

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456 :[H[LTLU[VM-PUHUJPHS7VZP[PVUPU<:
457 Value Addition
458 Ten Years at a Glance
459 Quarterly Statistics
461 Capital Adequacy
468 GRI G4 Content Index
476 GRI Financial Services Sector Disclosures
477 Supplementary Sustainability Indices
478 Independent Assurance Report
479 Glossary of Financial and Banking Terms
484 Abbreviations
487 Sampath Song
488 Notice of Annual General Meeting
489 Form of Proxy
491 Stakeholder Feedback Form
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About the Company
Sampath Bank
in 2015
G4-07
Sampath Bank PLC is a public limited company incorporated in

Sri Lanka on 10th March1986, under the Companies Act No. 17 of
1982 and listed on the main board of the Colombo Stock Exchange.
It was originally incorporated as The Investment and Credit Bank
Ltd in 1986, with Mr N U Jayawardena as the Chairman. The Bank
was registered as a licensed commercial bank under the Banking
Act No. 30 of 1988. Sampath Bank PLC was re-registered on 28th
April 2008, as mandated by The Companies Act No. 7 of 2007.
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NEW CUSTOMERS
Ranked as one of the top-tier banks in the country, Sampath Bank

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2015. Only the 3rd private sector commercial bank to achieve this
status, Sampath Bank stands proud as the youngest bank to have
reached this landmark. As at 31st December 2015, Sampath Bank
PLC recorded a market capitalization value Rs 42,734 Mn, with a
base of 17,515 shareholders.
Since the inception, Sampath Bank PLC has built a name as one
of the most forward-thinking banks in Sri Lanka. Being a fully
computerized Bank, right from the beginning, Sampath Bank
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provide the customer with seamless connectivity in a multi-channel
environment. Over the years, the bank has successfully combined
traditional Sri Lankan values with state-of-the-art innovations to
offer a truly indigenous, yet progressive banking proposition to the
citizens of Sri Lanka.
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the business model, the London-based Financial Times, presented
Sampath Bank PLC with the globally-acclaimed Banker Award
and the title of Sri Lankas Bank of the Year for 2015.
In recognition of strategic efforts to become a truly sustainable
bank, Sampath Bank was awarded the highly coveted Overall
Best Corporate Citizen of 2015 prize, at the Best Corporate
Citizen Sustainability Awards presented by the Ceylon Chamber of
Commerce of Sri Lanka.
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e-Banking
Sampath Bank PLCs e-banking
proposition is a vibrant
offering that brings forth a
new dimension to Sri Lankas
banking industry. It provides a
safe, secure and convenient way
for individuals and businesses
to bank from anywhere and at
anytime.
Simply put, it is a class apart.
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Who we are
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Details of Subsidiaries as of 31st December 2015 are tabulated below.
Subsidiary
Principal Activities
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Renting of Commercial Property
Ownership as at 31st
December 2015
97.14%
Names of Board of Directors

Mr I W Senanayake
Chairman
Mr S G Wijesinha
Director
Mr S P Kannangara
Director
Mr Wije Dambawinne (resigned w.e.f. 12.10.2015)
Director
Mr D Ihalalanda (appointed w.e.f. 03.12.2015)
Director
Mr R Silva (appointed w.e.f. 03.12.2015)
Director
Subsidiary
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Share Broking
December 2015
100.00%

Mr D J Gunaratne
Chairman
Mr N H K Fernando
CEO / Director
Dr S Kelegama
Director
Mr Deshal De Mel
Director
Mr Aravinda Perera
Director
Mr M N R Fernando
Director
Subsidiary
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Leasing, Factoring, Pawning and Accepting

Deposits

Mr Channa Palansuriya
Chairman
Mr M A Abeynaike
Deputy Chairman
Mr S G Wijesinha
Director
Mr P M A Sirimane
Director
Dr H S D Soysa
Director
Mr W M P L De Alwis
Director
Mr Aravinda Perera
Director
Mr Ranjith Samaranayake
Director
Mr Tharaka Ranwala (appointed w.e.f. 28.07.2015)
Director
December 2015
100.00%
December 2015
Subsidiary
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Developing Software Solutions and

Maintenance of Hardware
100%

Mr L J K Hettiaratchi
Chairman
Mr D J Gunaratne
Director
Mr M V Indrasoma
Director
Mr K M S P Herath (retired w.e.f. 03.08.2015)
Director
Mr M A Salgado (appointed w.e.f. 30.07.2015)
Director
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Sampath Bank PLC represents several national and international bodies by being a member of those associations.
Name of the Association
Membership Status
Sri Lanka Business & Bio Diversity Platform of Ceylon Chamber of Commerce
Patron Member
Society for Worldwide Interbank Financial Telecommunication (SWIFT)
Member
Lanka Financial Services Bureau (LFSB)
Member
Lanka SWIFT User Group (LSUG)
Member & Treasurer
Lanka Clear (Pvt) Ltd
Member
Leasing Association of Sri Lanka
Member
The Association of Banking Sector Risk Professionals - Sri Lanka
Member
International Chamber of Commerce ICC Sri Lanka
Member
Italian Business Council
Member
CSR Lanka (Guarantee) Ltd
Member
The European Chamber of Commerce of Sri Lanka
Member
Sri Lanka Banks Association (Guarantee) Ltd
Member
The Ceylon Chamber of Commerce
Patron Member
The Financial Ombudsman Sri Lanka (Guarantee) Ltd
Member
American Chamber of Commerce in Sri Lanka
Member
Sri Lanka Forex Association ( SLFA)
Member
Association of Primary Dealers (APD)
Member
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Member
Clearing Association of Bankers
Member
Payment Card Association of Sri Lanka
Member
Sri Lanka Association of Software and Service Companies (SLASSCOM)
Member
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Historical
Review
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1987
Appointment of Mr N U Jayawardane as the Chairman of the Bank
and Mr Janaka de Silva as the General Manager. The Bank was
ceremonially opened for business on 15th May 1987
Introduction of a cheque guarantee
card, a saving account with checking
facilities and extended banking
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in the country.
Re-registered as Sampath
Bank Ltd in 1987
1986
Incorporated on 10th March
1986, as Investment &
Credit Bank Ltd followed by
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for the commencement of
business operations
2014
Selected as the Best
Bank in Sri Lanka 2014
by the prestigious, global
Business
Magazine The
Euromoney,
for the second
consecutive year
2012
2013 Launch of the Cardless

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time in Sri Lanka. A
state-of-the-art banking
facility that allows
customers to withdraw
cash from ATMs without
using an ATM card or a
debit card
Celebrations to mark Sampath

Bank PLCs Silver Jubilee
acknowledging 25 years of
unparalleled service to the
nation
2011
Revolutionized traditional
banking culture by introducing
the Super Branch concept
of 365-day banking at
Dharmapala Mawatha and
Kiribathgoda
2014
2015
2015
Gold Award (Banking

Category) and the Bronze
Award (Overall Excellence
in Annual Financial
Reporting) for the 2013
Annual Report, at the 50th
Annual Report Awards
Ceremony organised by
the Institute of Chartered
Accountants of Sri Lanka
(CA Sri Lanka)
Asset portfolio crossed

Rs 0.5 Tn (i.e. Rs 500
Bn), a landmark that was
achieved in just 29 years.
Sampath Bank PLC is
now one of the only three
private commercial banks
in Sri Lanka to reach this
status
Reclaimed the prestigious title of

Sri Lankas Bank of the Year for
2015 after winning the Globally
recognized Banker Award
conferred by the London-based
The Banker magazine owned
by the prestigious Financial
Times Group.
Bank of the Year 2015
1989
1998
1999
2001
The Uni-Banking system

was introduced to the
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Received the Best

Commercial Bank of the
year Award conferred by
Asiamoney for the Third
year in succession.
Invested in a new stateof-the-art ATM switch, as

part of the ongoing efforts
to improve products and
services offered by the Bank
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organisation to achieve the
Quality Approved Status
of best practice, which is
presented by the Chartered
Institute of Management
Accountants.
1996
Voted as the Best Commercial
Bank of the year in Sri Lanka,
by Asiamoney, the most
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in Asia
1988
Introduction of the ATM
(SET) facility, becoming
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to operate a multi-point
network of Automated
Teller Machines
1997
Introduced the DEBIT
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Asia, in association with
CIRRUS and MAESTRO.
1999
Successfully migrated to the
more versatile Bancs2000
software system, which
could accommodate greater
product diversity and
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to the emerging needs of
customers
2010
Record for the most number of branches
and ATMs commissioned by any bank in
Sri Lanka, within a twelve-month period.
40 branches and 39 ATM were set up
during the year, bringing the total number
to 171 and 222 respectively, by end of
2010
2000 - Launched
the Sampathnet
Internet banking
facility
2003
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introduce one day clearing
for all cheques drawn on
any Sampath Bank branch,
collected by any Commercial
Bank in the island and
presented through Sri Lanka
Automated Clearing House
(SLACH).
2008
2004
The Sampath eRemittance

System was honoured
at the National Science
and Technology Awards
2008 in the category of
Locally Developed New
Technologies
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Cheque Imaging &
Truncating (CIT) site in Sri
Lanka.
2005
Declared among the Top
Ten at the Best Corporate
Citizen awards 2005.
2009
20
2
H
Honoured
Ho
as the Bank
of the Year 2009 by
o
tthe
he internationally
h
a
c
acclaimed
The
Ba
B
Banker magazine
owned
ow
w
by the Financial
Times,
T
im
London
2015
2015
Recognized as the Best Commercial

Bank and Best Retail Bank in Sri
Lanka for the second consecutive year
by the renowned UK based World
Finance Magazine.
Receiving all these awards,
Sampath Bank PLC
became the most
awarded bank in
Sri Lanka for the
year 2015
Adjudged as the Overall

Best Corporate Citizen
2015 at the Best Corporate
Citizen Sustainability Awards
2015, presented byy the
Ceylon Chamber
of Commerce
2007
Launch of Sampath
Mobile Cash, by
integrating advanced
telecommunication
technology with banking
technology to facilitate
money transfers via mobile
phone
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Board of
Directors
Meet our Board of Directors
whose leadership and vision drive
the success of your Bank.
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Chairman
Managing Director
Deputy Chairman
(Until 12th November 2015)
The Directors bring together a

variety of perspectives to the Board,
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Senior Director/ Non - Executive Director
Non - Executive Director
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Board of Directors
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Board of Directors
The Board of Directors have a deeper

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Executive Director
Company Secretary
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Extensive governance experience gained
through membership of the Boards of
Sampath Bank, NDB Bank, Pan Asia
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a quintessential business leader with
interests in a variety of key industries
including hydro power generation,
manufacturing, hospitality, entertainment,
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Board with over 25 years of experience
in managing diverse companies to deliver
high performance.
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Counts over 30 years in the Banking
sector. Fellow Member of Institute of
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the Chartered Institute of Management
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and Member of the Institute of Engineers,
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degree in Engineering from the University
of Moratuwa.
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1st August 2007 as a Non Independent,
Non Executive Director. Appointed as
Non Executive Chairman on 1st January
2012.
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Chairman of Board Strategic Planning
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Nomination Committee
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Mr Perera is the Chairman of Sampath
Bank PLC, Vallibel One PLC, Vallibel
Power Erathna PLC, Royal Ceramics
Lanka PLC, The Fortress Resorts PLC,
Delmege Ltd and Sun Tan Beach Resorts
Ltd. He is the Co-Chairman of Hayleys
PLC, Lanka Tiles PLC, Executive Deputy
Chairman of LB Finance PLC and Deputy
Chairman of Horana Plantations PLC, and
Lanka Ceramic PLC. He is the Executive
Director of Vallibel Finance PLC. He also
serves on the Boards of Amaya Leisure
PLC, Haycarb PLC, Hayleys MGT Knitting
Mills PLC, The Kingsbury PLC, Dipped
Products PLC and Hayleys Global
Beverages (Pvt) Ltd.
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Deputy Managing Director, Chief
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Manager and other roles spanning a
career of 28 years at Sampath Bank.
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Departmental Manager and Service
Engineer at Ceylon Tobacco Company,
Engineer at National Milk Board,
Past President of the Association of
Professional Bankers of Sri Lanka.
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25th November 2008 as an Executive
Director and appointed as Managing
Director with effect from 1st January
2012.
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Member of Board Credit Committee,
Board Integrated Risk Management
Committee, Board Human Resources
& Remuneration Committee, Board
Strategic Planning Committee and Board
Treasury Committee
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Managing Director of Sampath Bank
PLC, Director of Siyapatha Finance
PLC, Director of SC Securities (Pvt)
Ltd, Director of Institute of Bankers of
Sri Lanka, Director of Lanka Financial
Services Bureau Ltd, Director of
LankaBangla Finance Ltd, Director of
Colombo Stock Exchange.
13
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Board of Directors
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Over thirty years of extensive experience
in the Apparel sector by heading the
Orit Group of companies and through
continuous leadership given to other
companies in the Apparel Industry.
Further being a Board member of the BOI
for ten years, he gained wide experience
in Government Administration. He
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Outstanding Entrepreneurship Award in
2013, Sri Lankan Entrepreneur of the
Year in 2002 and the Silver Award of
the National Chamber of Exporters of
Sri Lanka for the Garment Extra Large
category in 2004.
Apparel Exporters Association 200gfp,

Executive Committee Member of Sri
Lanka Apparel Sourcing Association
(SLASA), Deputy Chairman of National
Livestock Development Board.
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Deputy Chairman of Sampath Bank PLC,
Board Member of Sri Lanka Institute of
Textile and Apparel, Chairman of Apparel
Exporters Association 200gfp during
2006-2008, Chairman of CG Lanka
Clothing (Pvt) Ltd till 2013 and Board
Member of Board of Investment of Sri
Lanka from 2005 to January 2015.
Please refer Annual Report of the Board of Directors
on the Affairs of the Company point No 24 Changes
in Directorate, on page 306.
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1st January 2012 as an Independent Non
Executive Director. Appointed as Deputy
Chairman on 26th January 2012.
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Chairman of Board Shareholder Relations
Committee, Member of Board Integrated
Risk Management Committee, Board
Human Resources and Remuneration
Committee, Board Strategic Planning
Committee, Board Nomination
Committee and Board Credit Committee.
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Chairman of Siyapatha Finance PLC,
Chairman/Managing Director of Orit
Group comprising Orit Apparels Lanka
(Pvt) Ltd, Orit Trading Lanka (Pvt) Ltd,
Chairman Style Kraft Sportswear (Pvt)
Ltd (Canada) and Orit Inspired Creations
(Pvt) Ltd, Executive Committee Member
of Joint Apparel Association Forum
(JAAF), Executive Committee Member of
14
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Extensive local and overseas experience
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served in the senior management
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and as an independent consultant.
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1st January 2012 as an Independent
Non Executive Director and appointed
as Senior Director with effect from 26th
January 2012.
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Chairman of Board Treasury Committee,
Member of the Board Audit Committee,
Board Credit Committee, Board
Integrated Risk Management Committee,
Board Strategic Planning Committee and
Board Related Party Transactions Review
Committee.
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Independent Non Executive Director
of Sampath Bank PLC, Non Executive
Director of Asian Hotels & Properties
PLC, Hemas Pharmaceuticals (Pvt) Ltd.
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Director of Hemas Power PLC, Senior
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Markets, International Finance
Corporation (IFC) the private sector
investment arm of World Bank Group,
Resident Representative for Sri Lanka
and Maldives IFC, Assistant General
Manager (Treasury and Investment
Banking) at National Development Bank
of Sri Lanka, Consultant (Treasury and
Business Development) at Commercial
Bank of Ceylon, Senior Risk Manager
- Citibank Sydney, Australia, Head of
Treasury and Investment Banking Brunei,
various positions including Treasurer and
Head of Public Sector Business, Citibank
Colombo.
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Counts over 30 years experience in
Sales, Advertising, Marketing, Human
Resources Development & Strategy
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of insurance. Fellow member of the
Chartered Institute of Marketing UK and
a Chartered Marketer. Past President
of Sri Lanka Institute of Marketing.
Holds an MBA from the University
of Sri Jayewardenepura. Pioneer in
disseminating management knowledge
in Sinhala Language. A leading
management development consultant
and author.
6NLOOV ([SHULHQFH
Extensive governance experience as
a Vice-Chancellor and Non Executive
Director on corporate boards. A Fellow
Member, Chartered Engineer and
International Professional Engineer of
the Institution of Engineers Sri Lanka,
Fellow of the National Academy of
Sciences Sri Lanka, PhD from University
of British Columbia, Vancouver, Canada
in Civil Engineering as a Canadian
*VTTVU^LHS[O:JOVSHY"W\ISPZOLK
extensively on Engineering and
Environmental Economics with Project
Management, recipient of accolades and
awards including the General Research
Committee Award for outstanding
Contribution to Sri Lankan Science
from the Sri Lanka Association for
Advancement of Science, the Committee
of Vice-Chancellors and Directors
(CVCD) Excellence Award for 2012 for
the Most Outstanding Senior Researcher
in Technology and related Sciences,
the Award for Outstanding Contribution
to Education 2012 at World Education
Congress and the Education Leadership
Award 2013 at the 4th Asias Best
B-School Awards, Singapore.
$SSRLQWHGWRWKH%RDUG
5th August 2010 as an Independent Non
Executive Director.
&RPPLWWHHV
Chairman of Board Human Resources
& Remuneration Committee and Board
Marketing Committee. Member of Board
Audit Committee.
&XUUHQW$SSRLQWPHQWV
Independent Non Executive Director of
Sampath Bank PLC, Independent Non
Executive Director of AIA Insurance Lanka
PLC, Pan Asian Power PLC, Singer Sri
Lanka PLC, Hemas Manufacturing (Pvt)
Ltd, Consulting Partner - RBL Group
USA.
)RUPHU$SSRLQWPHQWV
Managing Director Aviva NDB Insurance
PLC, Commissioner - Sri Lanka Inventors
Commission.
&XUUHQW$SSRLQWPHQWV
Sampath Bank PLC, Senior Professor
in Civil Engineering, University of
Moratuwa, Member of University Grants
Commission, Independent Non Executive
Director at Textured Jersey Lanka PLC,
Access Engineering PLC, United Motors
Lanka PLC and Resus Energy PLC.
)RUPHU$SSRLQWPHQWV
Vice Chancellor of the University of
Moratuwa, Chairman of the Committee
of Vice Chancellors and Directors
of Sri Lanka, Council Member of
the Association of Commonwealth
Universities, Fellow of the National
University of Singapore, Independent
Non Executive Director of the Colombo
Stock Exchange, Lanka IOC PLC, Hemas
Power PLC.
$SSRLQWHGWRWKH%RDUG
30th August 2011 as an Independent
Non Executive Director.
&RPPLWWHHV
Chairman of Board Credit Committee,
Member of Board Audit Committee,
Board Strategic Planning Committee,
Board Treasury Committee, Board
Integrated Risk Management Committee
and Board Related Party Transactions
Review Committee.
15
*VYWVYH[L7YVSL
Board of Directors
0U'HVKDO'H0HO
0UV'KDUD:LMD\DWLODNH
0LVV$QQLND6HQDQD\DNH
6NLOOV ([SHULHQFH
Attorney-at-Law, LLB (Cey), Retired from
the Public Service of Sri Lanka in August
HM[LY`LHYZVMZLY]PJL;OLYZ[
lady in Sri Lanka to hold the post of a
Secretary to a Cabinet Ministry.
6NLOOV ([SHULHQFH
Bachelor of Arts in Management Studies
from the University of Nottingham.
Leads an English medium terrestrial
;LSL]PZPVU*OHUULSHMSPH[LK[V*55
Heads Corporate Planning for the IWS
/VSKPUNZ.YV\WLUNHNLKPUKP]LYZPLK
business interests in telecommunication,
media & broadcast, automobiles,
aviation, warehousing, food & beverage
processing and packaging.
$SSRLQWHGWRWKH%RDUG
30th August 2011 as an Independent
Non Executive Director.
&RPPLWWHHV
Chairperson of Board Integrated
Risk Management Committee and
Board Related Party Transactions
Review Committee. Member of Board
Audit Committee, Board Nomination
Committee and Board Strategic Planning
Committee.
&XUUHQW$SSRLQWPHQWV
of Sampath Bank PLC, Member of the
Public Service Commission, Member of
the Sri Lanka Law Commission, CEO
of The Hotels Association of Sri Lanka
(THASL), Non Executive Director of the
Centre For Poverty Analysis (CEPA).
)RUPHU$SSRLQWPHQWV
Secretary to the Ministry of Justice,
Secretary to the Ministry of Plan
Implementation, Secretary to the Ministry
of Technology and Research, Advisor
to Minister of Higher Education and
Research.
16
$SSRLQWHGWRWKH%RDUG
Executive Director.
&RPPLWWHHV
Chairperson of the Board Nomination
Committee, Member of the Board
Credit Committee, Board Marketing
Committee, Board Human Resources
& Remuneration Committee and Board
Strategic Planning Committee.
&XUUHQW$SSRLQWPHQWV
Sampath Bank PLC, Chief Executive
6MJLYVM(9;;LSL]PZPVU)YVHKJHZ[PUN
Company (Pvt) Ltd, Director of IWS
Holdings (Pvt) Ltd. Director of RAD
Productions (Pvt) Ltd. Member of Young
Leaders Steering Committee, Ceylon
Chamber of Commerce. Trustee of Youth
Business Sri Lanka, Ceylon Chamber of
Commerce.
6NLOOV ([SHULHQFH
Master of Science degree in International
Political Economics from the London
School of Economics, Bachelor of Arts
degree with Honours in Philosophy,
Political Science and Economics from
University of Oxford.
$SSRLQWHGWRWKH%RDUG
Executive Director.
&RPPLWWHHV
Board Human Resources & Remuneration
Committee, Board Shareholder Relations
Committee, Board Treasury Committee
and Board Marketing Committee.
&XUUHQW$SSRLQWPHQWV
Non Executive Director of Sampath
Bank PLC, Senior Economist, Hayleys
PLC, Member of the Board of Directors
of Centre for Poverty Analysis Member
of Economic Fiscal and Policy Planning
Committee and Export Committee of the
Ceylon Chamber of Commerce, Director
of SC Securities (Pvt) Ltd.
)RUPHU$SSRLQWPHQWV
Economist, Institute of Policy Studies, Sri
Lanka.
0U5DQLO3DWKLUDQD
0UV6DXP\D$PDUDVHNHUD
6NLOOV ([SHULHQFH
,_[LUZP]LL_WLYPLUJLPUUHUJLHUK
THUHNLTLU[PUUHUJPHSHWWHYLSHUK
energy sectors. Fellow member of the
Chartered Institute of Management
Accountants, UK (FCMA) and holds a
Bachelor of Commerce degree from the
University of Sri Jayewardenepura.
6NLOOV ([SHULHQFH
Counts over 28 years in active legal
practice in Civil Law, practicing in the
Original , Appellate & Supreme Courts
as an Attorney-At-Law. Holds a Masters
degree in Law from the University of
Pennsylvania with particular emphasis on
Insurance Law, Privacy and Defamation
Law. She has experience in areas relating
to Property, Testamentary, Condominium
Disputes, Trusts, Family Law, and Money
Recovery. Also litigates on behalf of
UHUJPHSZLY]PJLZZLJ[VYJSPLU[ZHUKOHZ
specialised in local and international
arbitrations.
6NLOOV ([SHULHQFH
Extensive experience as Head of Finance
& Planning at National Savings Bank,
Commercial Bank PLC and Sampath
Bank PLC. Counts over 40 years
L_WLYPLUJLVMTHUHNPUNUHUJLPU[OL
UHUJPHSZLY]PJLZZLJ[VY/VSKZH)HJOLSVY
of Commerce (Accountancy Special)
Degree from the University of Peradeniya.
$SSRLQWHGWRWKH%RDUG
1st January 2012 as a Non Executive
Director. Became an Independent Non
Executive Director 31st January 2015.
&RPPLWWHHV
Chairman of Board Audit Committee,
Member of Board Strategic Planning
Committee.
&XUUHQW$SSRLQWPHQWV
of Sampath Bank PLC, Group Finance
Director - Hirdaramani Group of
Companies, Non-Executive Director
of Windforce (Pvt) Ltd, Nirmalapura
Windpower (Pvt) Ltd, Esna Power (Pvt)
Ltd, Star Packaging (Pvt) Ltd, Alumex
(Pvt) Ltd, Odel PLC, Taprobane Holdings
PLC.
)RUPHU$SSRLQWPHQWV
*OPLM,_LJ\[P]L6MJLYVM=HUPR
)HUNSHKLZO:LJ\YP[PLZ"(=7VM=HUPR
Incorporation, Director of Hayleys MGT
Knitting PLC and Hayleys PLC.
$SSRLQWHGWRWKH%RDUG
1st June 2012 as an Independent Non
Executive Director.
&RPPLWWHHV
Member of Board Nomination Committee
and Board Marketing Committee.
&XUUHQW$SSRLQWPHQWV
Non Executive Director of Sampath Bank
PLC, Legal practitioner, Member of the
Bar Association of Sri Lanka. Director of
Manson Investments (Pvt) Ltd.
$SSRLQWHGWRWKH%RDUG
1st January 2009 as an Executive
Director.
&RPPLWWHHV
Committee, Board Treasury Committee
and Board Related Party Transactions
Review Committee.
&XUUHQW$SSRLQWPHQWV
Executive Director/Group Chief Financial
6MJLY:HTWH[O)HUR73*+PYLJ[VY
Siyapatha Finance PLC.
)RUPHU$SSRLQWPHQWV
Senior Deputy General Manager, Finance
& Planning at Commercial Bank PLC,
*OPLM-PUHUJPHS6MJLYH[:HTWH[O)HUR
PLC.
17
*VYWVYH[L7YVSL
Corporate
Management
A wealth of industry experience lends depth to our
strategies and direction.
0U$UDYLQGD3HUHUD
0U1DQGD)HUQDQGR
Managing Director
Executive Director /
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0U7KDUDND5DQZDOD
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Deputy General Manager Marketing & Business Development
Deputy General Manager Human Resources
Deputy General Manager - Finance
18

>LYLKYP]LUI`[OLWHZZPVU
[VIYPUN]HS\L[VV\YJ\Z[VTLYZ
JVTT\UP[PLZHUKV[OLYWHY[ULYZ
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Deputy General Manager - Operations
Deputy General Manager - Credit
Head of Internal Audit
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Deputy General Manager - Branch Banking
Head of Information Technology
Deputy General Manager Corporate Banking
19
*VYWVYH[L7YVSL
Corporate Management
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Assistant General Manager - Recoveries
Company Secretary
Assistant General Manager - Card Centre
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Assistant General Manager New IT Business Development
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Assistant General Manager Global Business
20

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Assistant General Manager Strategic Planning & Research
Assistant General Manager - Operations
Assistant General Manager - Finance
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Assistant General Manager Branch Banking
Assistant General Manager Branch Banking
21
*VYWVYH[L7YVSL
Chief
Managers
Taking responsibility, building trust.
Its just what we do every day.
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Chief Dealer
Chief Manager Electronic Delivery Channels
Chief Manager - Recoveries
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Chief Manager - IT (EDP)
Head of Deposits
Chief Manager - Branch Banking
22

>L^PSSSLHKPUV\YPUK\Z[Y`
and set the standards that others
^PSSMVSSV^
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Chief Manager Branch Banking
Chief Manager Branch Banking
Chief Manager Administration
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Chief Manager - Human Resources
.YV\W9PZR6MJLY
Chief Manager Trade Services & International Operations
23
*VYWVYH[L7YVSL
Chief Managers
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Chief Manager - System Audit
Chief Manager - City & Commercial Credit
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Chief Manager - IT Systems Development
24

>LRUV^ÔH[V\YJ\Z[VTLYZ
HUKV[OLYI\ZPULZZWHY[ULYZULLK
MYVT\ZYLZWVUZPIPSP[`PU[LNYP[`
HUK]HS\L
0U+DOLQ+HWWLJRGD
0V'XOVLUL-D\DVLQJKH
Chief Manager - Network Service Centre
Chief Manager - Corporate Finance
25
*VYWVYH[L7YVSL
Senior
Management
A performance-driven team working to the
highest standards of business excellence...
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Senior Manager Computer Operations (IT-EDP)
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0U6HQDND+HZDYLWKDUDQD
Senior Manager Database Administration
Senior Manager - Credit Risk

(resigned on 01.01.2016)
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Senior Regional Manager
26
Head of Compliance
Senior Manager - FCBU
Senior Manager - Legal

(ZV\YZ[HRLOVSKLYZULLKZHUK
YLX\PYLTLU[ZJOHUNLV]LY[PTLZV
^PSSV\YKLSP]LY`
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Senior Manager Corporate Credit
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0U7KXVKDQWKD6XPLWKUDDUDFKFKL
0U8GDUD6XUDZHHUD
Senior Manager Systems & Procedures
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Senior Manager - Operations &

Business Process Re-engineering
27
*VYWVYH[L7YVSL
Senior Management
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Senior Manager - E Remittance

& Bank Notes Operations
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Senior Manager - Lending

Products
28

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I\ZPULZZHUKVWLYH[PVUHS
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Senior Manager IT System Development
Senior Manager - Trade Services
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Senior Manager - Branch

Supervision
29
*VYWVYH[L7YVSL
Product
Portfolio
Our product portfolio is designed
to represent Sampath Banks
vision to be The Growing Force
in Sri Lankan Financial Services.
G4-04
Our dynamic range of retail and

commercial banking products deliver
targeted solutions for both short term
and long term needs of individuals and
businesses alike, while our digital banking
30
services aim to Bring the Bank Closer

to the Customer through 24/7, 365-day
access.

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J\Z[VTLYZILJVTLIL[[LYVMM[OYV\NOH
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VMMLYWYHNTH[PJZVS\[PVUZMVYHOVZ[VM
THPUZ[YLHTIHURPUNULLKZ
1HZ2IIHULQJV
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A special loan scheme tailored
especially for state pensioners
Sampath Credit Cards offers the means

of spending responsibly and Real
Value Deals on just about everything
from clothing to super marketing, from
electronics to healthcare, from holidays to
dining out. In addition to great discounts
and promotions.
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$PHULFDQ([SUHVV
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The only credit card
in Sri Lanka to offer a
year round Cash Back
feature
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(M\SS`LKNLKWYVK\J[
that offers international
recognition together with
a host of special offers
31
*VYWVYH[L7YVSL
Awards &
Accolades
Bank of the Year 2015
Sampath Bank, undisputedly the most

awarded Bank in 2015
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ZLWKWKHSUHVWLJLRXV
7KH%DQNHU$ZDUG
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Year 2015
7KH/RQGRQEDVHG)LQDQFLDO
7LPHVKRQRXUHG6DPSDWK%DQN
ZLWKWKHSUHVWLJLRXV
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IRXUWKWLPHLQUHFRJQLWLRQRI
WKH%DQNVVWHDG\SHUIRUPDQFH
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FKDOOHQJLQJFLUFXPVWDQFHV
&HOHEUDWHGDVWKH2VFDUV
RIWKHEDQNLQJLQGXVWU\
7KH%DQNHU$ZDUGUHZDUGV
SUXGHQWULVNDSSURDFKVWURQJ
PDQDJHPHQWDQGH[FHOOHQFH
LQEDQNLQJSUDFWLFHV7KH
UHFRJQLWLRQFULWHULDIRUWKLV
DZDUGFRYHUDFRPSUHKHQVLYH
UDQJHRIEDQNLQJSUDFWLFHV
ZKLOHWKHHYDOXDWLRQSURFHVV
KDVDOZD\VEHHQVWULQJHQW
32
SAMPATH BANK PLC(UU\HS9LWVY[

PLC Annual Report 2015
2YHUDOO%HVW&RUSRUDWH&LWL]HQE\&H\ORQ&KDPEHURI&RPPHUFH
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LQE\:RUOG)LQDQFH0DJD]LQH
$QQXDO5HSRUW$ZDUGVE\&$6UL/DQND
(UU\HS9LWVY[SAMPATH
SAMPATH BANK PLC Annual Report
BANK2015
PLC
33
*VYWVYH[L7YVSL
Awards & Accolades

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VMV\YZOHYLOVSKLYZ[OL[Y\Z[[OH[V\Y
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the Year 2015
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34

PLC Annual Report 2015
$VLD5HVSRQVLEOH
(QWUHSUHQHXUVKLS
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$&&$6XVWDLQDELOLW\
5HSRUWLQJ$ZDUGV
2014
,QIRV\V)LQDFOH,QQRYDWLRQ
$ZDUGV
6XPDWKL$ZDUGV
WK$VLD%HVW&65
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6XVWDLQDELOLW\([FHOOHQFH
$ZDUGV
9LVD,QGLD 6RXWK$VLD
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2014
35
*VYWVYH[L7YVSL
Financial
Highlights
BANK
2015
2014
GROUP
Change
2015
2014
Change
%
3URWDELOLW\5V0Q
Gross income
47,032
44,597
5.5
49,102
46,394
5.8
Total operating income
25,288
21,394
18.2
26,742
22,606
18.3
Operating expenses, impairment losses, VAT &

5);VUUHUJPHSZLY]PJLZ
7YV[ILMVYLPUJVTL[H_
16,187
14,667
10.4
16,953
15,359
10.4
9,101
6,727
35.3
9,790
7,247
35.1
Income tax expense
2,967
1,813
63.7
3,161
1,979
59.7
7YV[MVY[OL`LHY
6,134
4,914
24.8
6,628
5,268
25.8
Due to banks & other customers (Deposits only)
409,411
341,946
19.7
410,252
341,655
20.1
Loans to & receivables from banks & other

customers after impairment provisions
Total equity
377,348
302,370
24.8
387,929
310,504
24.9
35,125
30,912
13.6
39,203
34,604
13.3
Total assets
525,277
432,026
21.6
538,647
442,790
21.6
226.96
200.28
13.3
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,QYHVWRU,QIRUPDWLRQ
Net asset value per share (Rs)
203.85
179.39
13.6
Market value per share at the year end (Rs)
248.00
236.30
5.0
Earnings per share - Basic (Rs)
35.60
28.52
24.8
38.44
30.55
25.8
Earnings per share - Diluted (Rs)
35.60
28.51
24.8
38.44
30.54
25.8
Dividend per share (Rs)
13.00
11.00
18.2
Dividend cover (Times)
2.74
2.66
3.0
1.87
2.31
(19.0)
Gross dividend (Rs Mn)

Market capitalisation (Rs Mn)
2,240
1,847
21.3
42,734
39,677
7.7
5.24
4.66
12.4
2WKHU5DWLRV
Dividend yield (%)
Price earning ratio (Times)
6.97
8.28
(15.9)
Impairment allowance on loans to & receivables

from other customers (%)
1.83
2.27
(19.5)
22.05
24.54
(10.1)
A+ (lka)
(Stable)
AA- (lka)
(Stable)
Liquid assets ratio (%)

Fitch rating
*VTWHYH[P]LPUMVYTH[PVUMVY[OL`LHYOHZILLUYLJSHZZPLKÔLYL]LYULJLZZHY`[VJVUMVYT[V[OLJ\YYLU[`LHYZWYLZLU[H[PVU
36
)LQDQFLDO*RDOVDQG$FKLHYHPHQWV%DQN
Goal
Financial Indicators
Achievement
2014
2013
2015
2012
2011
Return on average assets (after tax) %
Over 1%
1.28
1.23
0.98
1.88
1.55
Return on average equity (after tax) %
Over 16%
18.42
16.35
12.88
22.26
16.17
.YV^[OPUWYV[
Over 15%
24.83
43.27
(34.43)
54.40
2.58
Growth in total assets %
Over 15%
21.58
13.08
23.47
24.93
29.45
Below 50%
52.75
54.82
51.20
51.70
55.30
-Tier I
Over 7.5%
7.90
8.83
10.08
11.80
10.24
-Tier I & II
Over 12%
12.26
13.62
14.22
13.61
11.45
Cost to income ratio (excluding VAT & NBT) %

Capital adequacy ratios (%)
26%
Rs 6.6 Bn
7YV[HM[LY;H_.YV^[O.YV\W
7YV[HM[LY;H_.YV\W
Banks Prot after Tax

7,000
3,000
2,000
10,000
2015
2014
2012
2015
2014
0
2013
2015
2014
6,134
1,000
0
2013
4,914
5,000
4,000
20,000
100,000
2012
6,000
2013
30,000
38,796
40,000
2012
200,000
382,042
300,000
309,410
400,000
432,026
500,000
47,032
50,000
44,597
600,000
47,509
Rs Mn
525,277
Rs Mn
3,430
Banks Gross Income
Rs Mn
5,231
Banks Total Assets
37
*VYWVYH[L7YVSL
Financial Highlights
Banks Net Assets Value per Share
Banks Earnings per Share

Rs
40
35.6
31.3
28.5
24
20.5
16
8
250
200
179.4
153.0
203.8
169.4
150
100
50
2015
2014
2012
2015
2014
2013
0
2012
Rs
2013
32
;OL)HUR
recorded a
WYL[H_WYV[VM
9Z )UMVY
the year 2015
Banks Return on Equity

%
25
22.3
20
18.4
16.4
ATMs
15
370
Advances Growth - Bank

12.9
10
25%
Branches
225
2015
2014
2013
2012
The banking industry

as a whole has
experienced a good
year, cataloging
stable growth in all
key performance
indicators
Total Assets - Group
Rs
539 Bn
22%
20%
Total Assets
Growth - Group
Deposits
Growth - Bank
38
Non Financial
Highlights
Customers
Growth in Number
of Off-site ATMs
Growth in Number
of ATMs
85%
13%
E-Banking Growth
80%
88%
Sampath App
Downloaded
Sampath Vishwa
User Base
532%
54%
E-Statements
Registrations
SMS Alerts
Registrations
Government
Taxes Paid to the
Government - Bank
Rs
3.02Bn
Taxes Collected on behalf

of the Government - Bank
1.40Bn
Rs
39
*VYWVYH[L7YVSL
Non Financial Highlights
Employees
Employee Retention
Ratio
7YV[WLY,TWSV`LL
(Rs Mn)
97.0%
1.5
Average Training Hours
per Employee Per Annum
Number of Industrial
Disputes
35.4
NIL
Environment
Savings from Paper Recycling
1,204
2,250,024
212
283,200
124,254
Number of Fully
Grown Trees
Water
(Litres)
3HUKSS
(Cubic metres)
Electricity
(kWh)
Oil
(Litres)
Reduction from Paper

Recycling
Carbon Footprint
tCO2e
40
70,804
3,753
Greenhouse
Gas (Kg)
-VY/LHK6MJL
9LWVY[7YVSLHUK
Theme
5HSRUW%RXQGDU\
G4-28,29,30
This is the 2nd Integrated Annual Report

published by Sampath Bank PLC. Our
YZ[PU[LNYH[LKYLWVY[^HZYLSLHZLK
JV]LYPUN[OLUHUJPHS`LHY:PUJL
then, we have worked hard to improve
the level of transparency and quality
of information provided in the current
report, which contains an overview of the
Sampath Bank PLCs activities, practices
and triple-bottom-line (People, Planet
HUK7YV[WLYMVYTHUJLMVY[OLUHUJPHS
year ending 31st December 2015. The
report also includes a section, which
captures the performance of subsidiary
companies, for the same period.
In-accordance Comprehensive as per

the G4 guidelines. We have also complied
with the Financial Services Sector
Supplement.
In addition to GRI guidelines, the Bank
remains bound by the directives laid out
under the Customer Charter issued by
the Central Bank of Sri Lanka. Further,
in conformity with global best practices
for sustainability reporting, the report
also carries voluntary disclosures on the
MVSSV^PUN"
Code of Best Practice on
Corporate Governance issued
jointly by the Institute of Chartered
Accountants of Sri Lanka and
the Securities and Exchange
Commission of Sri Lanka
IFC Sustainability Framework
issued by International Finance
Corporation
OECD guidelines for Multinational
Enterprises
UN Global Compact Advanced
Principles
CSE Listing Rules on Corporate
Governance
7KHPH
The theme of this years report: A FutureFriendly Bank, is meant to highlight
the efforts made during the year, to
cultivate a more pre-emptive approach
and build a strong foundation to meet
the expectations of stakeholders, in the
coming years.
G4-15,32
6FRSH
The information contained herein,
caters to the interests of stakeholders
and allows them to determine if our
business strategies have been able to
deliver what they expect of Sampath
Bank PLC. A comprehensive range of
UHUJPHSHUKUVUUHUJPHSPUMVYTH[PVU
and data has been provided, to enable
our stakeholders to make an informed
decision about their future engagement
with us. We have addressed all material
issues pertaining to the business as per
the Global Reporting Initiative (GRI), G4
guidelines for sustainability reporting
and declare our reporting status to be
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
To further emphasize our commitment to
sustainable business practices, this report
OHZILLUJLY[PLKHZH*HYIVU5L\[YHS
Product by Sri Lanka Carbon Fund
(Private) Limited.
G4-33
Assurance
To determine the credibility of our

reporting framework in line with the
GRI guidelines, we have sought an
PUKLWLUKLU[]LYPJH[PVUVM[OPZYLWVY[
from Messrs Ernst and Young, Chartered
Accountants. It is noteworthy that Messrs
Ernst and Young have no involvement
or interest in the scope of activities
conducted by Sampath Bank PLC, other
than as external auditors pertaining to the
UHUJPHSHZWLJ[ZVM[OL)HUR.YV\WHUK
to provide the independent assurance
report for our sustainability mechanisms.
Please refer page 478 of this report, for
the comprehensive assurance report
issued by Messrs Ernst and Young.
$6QDSVKRWRI2XU3URJUHVVWRZDUGV6XVWDLQDELOLW\5HSRUWLQJ
Year
Report 7YVSL
GRI Application Level
Declaration
Status
2011
Stand-alone Report
GRI 3.1 Level B
Self-declared Yes
2012
Incorporated in Annual
Report
GRI 3.1 Level B
Self-declared Yes
2013
Stand-alone Report
GRI G4 Comprehensive
Yes
2014
Integrated Report
Yes
2015
Integrated Report
Yes
External
Assurance
Provided
41
*VYWVYH[L7YVSL
Green
Recognition
We realize that our business does have
some impact on the environment due to the
consumption of energy, water and fuel along
with the material waste we generate as a
result of day-to-day operations. These are the
main components of our carbon footprint.
6DPSDWK%DQN3/&
$QQXDO5HSRUW
$&DUERQ1HXWUDO3URGXFW
OBJECTIVE:
To establish the carbon footprint of Sampath Bank PLC,
Annual Report 2015 by quantifying the carbon output
generated during the process.
METHODOLOGY:
Gather data and map the carbon footprint as a measure of
the total amount of Carbon Dioxide (CO2) and other direct and
indirect Green House Gas (GHG) emissions accumulated at
each stage of the product lifecycle of the Annual Report 2015.
The result is to be expressed in Kilograms of CO2 equivalents.
PRODUCT STANDARD:
The GHG Protocol Product Life Cycle Accounting and
Reporting Standard.
OUTCOME:
Invest in green projects by purchasing carbon credits
equivalent to measured CO2 Kilograms in the product life cycle
HUKVI[HPUKLJSHYH[PVUJLY[PJH[LPZZ\LKI`[OL:YP3HURH
Carbon Fund (Private) Limited, declaring the 6DPSDWK%DQN
3/&$QQXDO5HSRUW$&DUERQ1HXWUDO3URGXFW
42
We want to lead
in our industry now
and stay ahead
in the future
Corporate Accountability
Chairmans Message
Managing Directors Review
Value Creation Business Model
Sustainability Philosophy
Stakeholder Management
Materiality Assessment
15
43
*VYWVYH[L(JJV\U[HIPSP[`
C H A I R M A N S
M E S S A G E
Leading
Sri Lanka into
the Future of
Banking
6\YJVTTP[TLU[[VZLY]PJLPZYLLJ[LK
VUJLHNHPUPU"^L^LYLHKQ\KNLK[OL
Most Nation-Minded Bank for the second
consecutive year.
Dear stakeholders,
I am indeed proud and privileged to
WYLZLU[[V`V\[OLH\KP[LKUHUJPHS
statements for Sampath Bank PLC
MVY[OLUHUJPHS`LHY+LZWP[LH
JOHSSLUNPUN`LHYMVY[OLUHUJPHSZLY]PJLZ
sector on all fronts - both global and local
- your Bank continued to weather the
pressures and perform on par with our
stated strategic plan for the year. Global
growth continues to be below trend.
36.5%
Dividend Pay Out Ratio
Challenges did not dampen our

perseverance to perform, to dedicate
ourselves to our customers and to not
just meet the obligations but exceed the
expectations of all of our stakeholders,
across the board. We continued to push
the boundaries, merging the realm of our
services with present needs and future
innovations. Inspired by our dedication
[VSLHK[OL:YP3HURHUUHUJPHSZLY]PJLZ
sector into the next service paradigm, a
feat that we have continued to achieve
over the past two plus decades since
the inception of your Bank, future
orientation remained key to our strategic
LUKLH]V\YZ;OPZPZRLLUS`YLLJ[LKPU
the theme for our Annual Report this year
Future Friendly Bank.
44
Technology remains key to our forward

strategy, but critically we recognize
that in integrating technology, we do
so with the intention to create a culture
[OH[L_LTWSPLZZLY]PJLL_JLSSLUJL
simplifying the interfaces of interaction
for customers with the Bank, whilst
creating secure and safe transactional
platforms. In 2015, we have achieved
ZPNUPJHU[[LJOUVSVN`TPSLZ[VULZÔPJO
will deliver a better customer experience.
We have successfully modernised our
ITC systems and platforms, which will
future proof our business. We value the
trust our customers place in us and
as a result, have invested towards the
right technology and teams to protect
our customers information whilst also
delivering a faster and more reliable
service. We recognize that customerled innovation is crucial in the rapidly

changing digital space and stemming
from this insight, we have developed
new customer focused concepts that will
be introduced as we strategically move
MVY^HYKPU[OLUL_[]L`LHYZ
6\YJVTTP[TLU[[VZLY]PJLPZYLLJ[LK
in that once again in 2015, we were
adjudged the Most Nation-Minded
Bank for the second consecutive
year. This recognition, we believe is the
culmination of a focused strategy over
the last twenty-nine years to serve our
nation with unstinted dedication. We have
done so by pioneering service standards,
innovating new products and by creating
greater accessibility to the banking sector
across all demographics.
Despite a mediocre global outlook - the
pace of growth in advanced economies
has increased marginally, however
emerging markets are slowing, with falling
global trade volumes and uncertainty
on the depth of the slow-down in
*OPUH^LYLTHPUJVUKLU[VMNYV^[O
in the local economy and sectorial
NYV^[OMVYUHUJPHSZLY]PJLZPUHZ
infrastructure development revvs up in the
\WJVTPUNUHUJPHS`LHY.VPUNMVY^HYK
we remain focused on delivering an
exceptional customer experience through
improving the performance of our core
businesses, maintaining a strong balance
sheet, investing in digital technology and
enhancing the capabilities of our people.
In closing, I thank our shareholders,
customers, my fellow directors and
members of management for their
unstinted support. I also thank our over
3,900 strong Sampath team for their hard
work and dedication to the company. Let
us lead, as we have led before, into a
successful 2016.
Dhammika Perera
Chairman
Colombo, Sri Lanka
16th February 2016
45
M A N A G I N G
D I R E C T O R S
R E V I E W
Leading... and
staying ahead
Over the past three decades, Sampath Bank PLC has
built a solid foundation from which to confront the future:
^LOH]LHZ\JJLZZM\SOPZ[VY`"HKPZ[PUJ[P]LJ\S[\YLHUKH
ZOHYLKWYPKLPUV\YWLYMVYTHUJL"V\YMVV[WYPU[PZ\UPX\LHUK
coveted by our peers.
Dear stakeholders,
The year 2015 marks the 29th year
of operation for Sampath Bank PLC
and as you may be aware, the journey
thus far has been a momentous one,
with many milestones and accolades
that have come our way. This year was
an exceptional one, with many more
accomplishments to add to the long list
of achievements for Sampath Bank PLC.
But before I get into these details, I would
like to share a few observations about the
past year and enlighten you on the steps
we are taking to become Sri Lankas
foremost future-friendly bank.
6HWWLQJ2XUVHOYHV$SDUW$V
6UL/DQNDV0RVW1DWLRQ0LQGHG
%DQN
It was indeed a proud moment, when
Sampath Bank PLC was recognized
as the Most Nation-Minded Bank for
the year 2015. This was the second
consecutive year in which we have
received this accolade. I believe this
achievement is the culmination of 29
years of dedicated service to the people
of Sri Lanka.
From the inception, we have always
^VYRLK^P[OVULM\UKHTLU[HSW\YWVZL"
to ensure the betterment of the nation
and its citizens. Over the years, we have
JVUZJPV\ZS`KP]LYZPLKV\YI\ZPULZZ
46
model to portray a greater degree of

customer-centricity in our offerings.
We have successfully combined both
conventional brick and mortar banking
concepts together with the latest
developments in global banking to deliver
a superior banking experience. We also
continue to emphasize the importance
of strengthening our IT backbone as the
basis of achieving service excellence.
This approach has served us well and
YLZ\S[LKPUHKLUP[LJVTWL[P[P]LLKNL
Adding to this, we have over the years,
strategically expanded our island-wide
MVV[WYPU[PUVYKLY[VM\SS[OLULLKZVM
new and emerging market segments.
Among other things, our efforts to
WYVTV[LNYLH[LYUHUJPHSPUJS\ZPVUPU[OL
country and stimulate post-war economic
development in the North and East,
are but a few examples that illustrate
Sampath Bank PLCs nation-minded
attitude.
Over the past 12 months, I made a
conscious effort to assess for myself,
the views of our stakeholders and I
have met and spoken with many of our
shareholders, customers, employees
and other key stakeholders around the
country. These interactions have made it
clear that Sampath Bank PLC is widely
viewed as having a strong industry
position with excellent opportunities
for growth. Moreover, it was very
G4-01
>LHSZVJVU[PU\L
[VLTWOHZPaL
[OLPTWVY[HUJL
of strengthening
V\Y0;IHJRIVUL
as the basis of
achieving service
L_JLSSLUJL
25%
7YV[HM[LY;H_.YV^[O
47
portfolio to compensate for the loss in
revenue from the high-yielding pawning
product. Building volumes of other loan
offerings and strengthening the loan
book, then became a key priority. As a
YZ[Z[LW[V^HYKZHJOPL]PUN[OPZNVHS
we consolidated our strategies and
focused on achieving a healthy product
mix that would deliver consistent results
in the years ahead. We capitalized on
the consistently low Average Weighted
Prime Lending Rates (AWPLR) to pursue
a volume-driven growth strategy. Our
emphasis was to promote retail lending
and lifestyle products through our branchlending model.
The task of mobilizing deposits was also
entrusted to the branches. The strategy
was aimed at boosting our island-wide
Current and Savings Accounts (CASA)
base, as we began to consciously
downsize our high-cost term deposit
portfolio.
Managing Director receiving the

prestigious The Banker Award
rewarding for me to see how the Bank

has inspired progress among millions of
fellow Sri Lankans, be it paddy farmers
PU(U\YHKOHW\YHZOLYMVSRPU4HUUHY
or software developers in Colombo. The
feedback I received assures me that our
business strategies are both timely and
relevant, and above all, meet the needs
of these people. I also found that our
customers appreciate the knowledge,
expertise and commitment of our team
and that there is great pride in being
associated with Sri Lankas Most
Innovative bank.
6WUDWHJLF%XVLQHVV7KUXVWIRU
Taking advantage of the robust growth
in private sector credit demand seen
22%
We have
LTIYHJLKV\YYVSL We also looked at developing our feeincome by augmenting the credit
HZJOHTWPVUZVM based
card, remittance offerings. To boost the
card proposition, we introduced a
JOHUNLMVYHSSV\Y credit
number of unique value additions while
aggressively pursuing our merchant
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throughout 2015, we stepped up efforts
to develop key business pillars that would
make a strong positive contribution
towards the bottom line. During the year,
^LKLWSV`LKZWLJPJZ[YH[LNPLZHPTLK
at developing both our personal banking
arm as well as the corporate offering. We
combined these plans with our overall
strategy for branch growth to ensure that
branches play a bigger role in driving
medium-term business goals.
From a personal banking perspective,
our ongoing efforts to reduce the
exposure to pawning meant we had
to rationalize our loans and advances
Total Assets Growth
48
acquisition strategies. To offer a wider

global coverage for the remittances
offering, we expanded our partner
network in the Middle East, East Asia and
Australia signing up with representatives
in six new countries, and expanded our
market reach.
To boost other sources of fee-based
income, we widened our delivery
channels, with special focus on developing
electronic and digital mediums. On the
other hand, the expansion of conventional
delivery mechanisms was done more
ZLSLJ[P]LS`[VMHJPSP[H[L[OLULLKZVMZWLJPJ
geographies.
From a Corporate Banking perspective,
the underlying strategy was to develop
our capabilities to be able to capture a
larger share of the import/export trade.

We once again called upon our branches
to seize the opportunity to play a bigger
role in realizing these goals. Accordingly,
all branches were encouraged to improve
their trade volumes, which I believe is
a timely move, particularly given the
drive to bolster the export trade in the
forthcoming year.
.H\)LQDQFLDO+LJKOLJKWV
As at 31st December 2015, our asset
portfolio crossed the Rs 0.5 Tn (i.e. Rs
500 Bn) mark. We are now one of the
only three private commercial banks in
Sri Lanka to reach this status, which I
believe will help further strengthen us in
the coming years. Other key highlights
HYLNP]LUILSV^"
ROA
1.28%
G4-13
Revenue
Total revenue for 2015 at Rs 47.1 Bn, up 3.7% from the Rs 45.5 Bn recorded
in the previous year. 80.5% of the revenue was from interest earning products,
while fee-based income accounted for 13.8% of the total revenue.
7YV[HIPSP[`
;OL)HURYLJVYKLKHWYL[H_WYV[VM9Z )UMVY[OL`LHY]PZH]PZ
Rs 6.7 Bn recorded in the previous year, an impressive YoY growth of 35.3%.
7VZ[[H_WYV[ZMVY[OL`LHY[VVYLJVYKLKHNYV^[OVMMYVT9Z )UPU
2014 to Rs 6.1 Bn in 2015.
Investments
Key investments made during the year were to upgrade the IT infrastructure
amounting to a sum of Rs 645.8 Mn.
Credit Quality and NPLs

NPL ratio continued to improve this year as well recording a decrease from 1.93%
as at 31st December 2014 to 1.64% as at 31st December 2015. It is important
to note that the Bank managed to achieve an overall credit growth without
compromising on credit quality.
Liquidity and Capital Adequacy
ROE
18.42%
EPS
Rs 35.60
6\YSPX\PKP[`WYVSL^HZZ[HISL[OYV\NOV\[[OL`LHYÔPSL;PLY0HUK;PLY00JHWP[HS
remained strong, boosted by the special measures taken to further strengthen
both. A scrip issue amounting to Rs 1,007.5 Mn reduced the dividend payout
I`ÔPJOTLHU[HSHYNLYJO\URVMWYV[Z^LYLWSV\NOLKIHJRHZWHY[
of Tier I capital. Meanwhile, a Rs 5 Bn debenture issue was announced in
November 2015, to secure our Tier II capital. The issue which was immediately
oversubscribed, was successfully extended by a further Rs 2 Bn , resulting in a
total Tier II capital infusion of Rs 7 Bn.
Share Performance
$GYDQFLQJWKH7ULSOH%RWWRP/LQH
We are aware that cultivating social and
environmental progress is as important as
M\SSSPUNWYV[ZL_WLJ[H[PVUZ(UKZV^L
have embraced our role as champions of
change for all our stakeholders including
shareholders, customers, employees
and the communities in which we live
and work. Leveraging on our strengths,
we continue to focus on areas where
we can achieve the greatest impact: by
4HYRL[WYPJLWLYZOHYL\J[\H[LKIL[^LLU9ZSV^LZ[HUK9Z
(highest) during the year and settled at Rs 248.00 at the end of the year, up by 5%
as against the end of previous year.
investing in socially responsive products

and services, facilitating socio-economic
progress of communities, advancing
environmental sustainability and caring for
our employees.
Being an integrated report, the pages
that follow discuss these aspects and
carry comprehensive details of our triple
bottom line progress for the year. You
will note that many of the activities for
the year are labelled as #future-friendly

initiatives, which demonstrate our
willingness to realign our strategies and
continuously advance our triple bottom
line results. I do however wish to refer
[VHML^ZPNUPJHU[Z[LWZ^LOH]L[HRLU
in 2015, to illustrate how well we have
balanced the interests of our planet
HUKV\YWLVWSLÔPSLTLL[PUNWYV[
expectations.
49
We are proud to be celebrated for our spirit of NationMindedness, testimony to the Banks strong support
for local business and industry and for the people and
communities we serve every day.
Total Assets and

Prot After Tax
Rs Bn
Rs Bn
6.1
600
200
309.4
300
382.0
3.4
400
432.0
4.9
525.3
5.2
500
5
4
3
2
2015
0
2014
0
2013
2012
100
Total Assets
Prot After Tax
Investing in socially responsive products

and services saw, among other things,
the expansion of the automated cash
deposit kiosks across the island, with the
commissioning of 38 new machines in
2015. However, we found that in order
to achieve the desired results, direct
intervention was needed to educate
customers regarding the best use of
these technological developments.
As part of the introductory phase, we
recruited, trained and deployed a team of
self-help assistants at each kiosk. These
self-help assistants play a dual role, both
to change the mindset of the customer,
encouraging them to use the facility
as well as assisting them to familiarize
themselves with the new offering. This
modus operandi has now become a
standard practice for all new technologybased offerings of Sampath Bank PLC.
Facilitating socio-economic progress
of communities vis--vis our Sampath
Saviya entrepreneur development
50
scheme is symbolic of our shift from

a philanthropic approach towards a
more transformative CSR model, where
we seek to address national priorities
and key burden issues of our country.
By working collaboratively with likeminded institutions, the Sampath Saviya
programme allows us to prudently lend
to individuals as well as SMEs. By doing
so, we have been able to create jobs,
drive economic opportunity and transmit
widespread socio-economic change
across a broader demographic, while at
the same time offering a lasting solution
to the national unemployment problem.
To date, we have invested more than
Rs 3.5 Mn in the scheme, and since its
launch in May 2013, reached out to over
600 SMEs across the island, extending
support to uplift the lives and livelihoods
VMTVYL[OHUILULJPHYPLZ
Advancing environmental sustainability

through our Green Lending policy,
which offers credit facilities to individuals
and businesses keen to embrace green
ethics, was also a success. In 2015
alone, we have disbursed over
Rs 86 Mn under the purview of the green
lending scheme. Meanwhile, thematic
projects that are part of our mainstream
environmental programme aim to inspire
all stakeholders to play a more proactive
role as green ambassadors.
Caring for our employees has always
been on our list of key priorities, for we
believe that they are the mainstay of
our business. Employing nearly 4,000
men and women across the country,
we seek to foster a dynamic, skilled and
diverse workforce able to understand and
interpret the aspirations of our customers.
It is why, for nearly three decades, we
have been committed to help our team
VMLTWSV`LLZM\SSS[OLPY[Y\LWV[LU[PHS0U
2015, we invested Rs 28.6 Mn to develop
our leadership pipeline, focusing primarily
on training and career development.
Meanwhile, in an effort to expand the
diversity and create a foundation for
equal opportunities we recruit and deploy
employees mainly from the respective
geographical regions.
Managing Director receiving the Overall Best Corporate Citizen 2015 award at the Best Corporate Citizen
Sustainability Awards presented by the Ceylon Chamber of Commerce
G4-13
([FHOOLQJLQ(YHU\6SKHUH
Our goal has always been to excel in
whatever we do and I believe we have
done just that. You will no doubt be
delighted to note that 2015 has been a
year of great recognition for Sampath
Bank PLC, in many spheres.
4VZ[ZPNUPJHU[S`^LYLJSHPTLK[OL
prestigious title of Sri Lankas Bank
of the Year for 2015 after winning the
globally recognized Banker Award
conferred by the London-based The
Banker magazine owned by the
prestigious Financial Times Group.
Easily the pinnacle of achievement for any
bank, I believe this is a testament to our
JVUZPZ[LU[UHUJPHSWLYMVYTHUJLWY\KLU[
risk management principles, strong
governance mechanism and excellence
in banking practices, which has helped
us secure this title for the third time in the
past six years.
We also clinched the highly coveted,
Overall Best Corporate Citizen Award
for 2015, at the Sustainability Awards
conducted by the Ceylon Chamber of
Commerce, to recognize corporates
who are able to show Higher State of
Corporate Excellence in advancing the
Triple Bottom Line.
Our IT innovations received international
recognition too, at the Infosys-Finacle
Innovation Awards 2015, which saw the
participation of corporates from across
the globe, including a number of leading
IHURZHUKUHUJLJVTWHUPLZMYVT:YP
Lanka. Nevertheless, Sampath Bank
PLC was able to triumph over this stiff
competition to be the only organization
from Sri Lanka to be recognized under
the highly-regarded Product Innovation
category at the recently concluded
awards ceremony held in India.
Many more accolades, too numerous to
mention here, also came our way as we
went on to excel in many other spheres
as well. As you read through this report,
`V\^PSSUK[OLZLJHW[\YLKPUNYLH[LY
detail in their respective areas.
([SDQGLQJWR5HJLRQDO0DUNHWV
For some time now, we have been
drawing up plans to expand beyond Sri
Lanka and take our proposition to other
territories in the region. In 2015, we took
[OLYZ[Z[LWZ[V^HYKZHJOPL]PUN[OPZNVHS
by expanding to Myanmar. Being a truly
indigenous Sri Lankan bank, we felt we
could use the cultural similarities between
two countries as a platform to present our
proposition to the people of Myanmar.
And so, in October 2015, we opened a
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Yangon, Myanmars largest city.
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(FRQRPLF2XWORRN
I expect Sri Lanka will register an
improved economic performance over
the course of 2016, particularly as the
country adjusts to government reforms
HUKL]VS]PUNZJHSHUKTVUL[HY`WVSPJPLZ
This will no doubt augur well for Sampath
Bank PLCs dynamic business model,
which is designed to mitigate the impact
of volatility from any one area.
&RPSHWLWLYH&KDOOHQJHV
We are also likely to experience
increased competition in the coming
years, particularly with the issuance of
]LULÎHURPUNSPJLUZLZ[OH[^V\SK
allow the entry of new foreign banks
to the market. Notwithstanding the
PUJYLHZLKJVTWL[P[PVU0HTJVUKLU[
that the Sampath brand will retain its
leadership position, bolstered by ongoing
investments in people, processes and
technology to deliver the needs of new
and existing customers throughout our
footprint.
7KH3URPLVHRI3URJUHVV
Over the past three decades, Sampath
Bank PLC has built a solid foundation
from which to confront the future: we
OH]LHZ\JJLZZM\SOPZ[VY`"HKPZ[PUJ[P]L
culture and a shared pride in our
WLYMVYTHUJL"V\YMVV[WYPU[PZ\UPX\L
and coveted by our peers. Moreover,
throughout the Bank, employees place
great value on working together and
share a genuine desire to serve our
J\Z[VTLYZ>LHYLJVUKLU[[OH[V\Y
strategy is sound and the execution of
these strategies would bring meaningful
progress and create longer-term value
for all stakeholders of the business. It is
how we expect to articulate the promise
of progress and truly live up to our brand
proposition: We present your future.
$FNQRZOHGJHPHQWV
In closing, I would like to thank our
2.3 Mn customers across the country,
for your loyal support and the privilege to
serve each and every one of you. I also
want to thank the Board of Directors for
[OLPYJVUKLUJLHUKJVU[PU\LKZ\WWVY[
I wish to extend my heartfelt gratitude to
the 3,993 strong, Sampath team for their
commitment and dedication in working
[V^HYKZV\YJVTTVUNVHS(UKUHSS`
to our shareholders, I thank you for your
[Y\Z[HUKJVUKLUJLHUKZLLR`V\Y
continued patronage to take Sampath
Bank PLC to even greater heights, in the
years ahead.
Aravinda Perera
Managing Director
5HJXODWRU\&RPSOLDQFH
Over the past three decades, we have
always responded quickly and surely
to all regulatory changes, investing a
considerable amount of time and money
to adapt to new standards. I am indeed
pleased to note, that our foresight has led
us to commence the process of adapting
to the BASEL III regulations, which I
hope would make the transition much
smoother one, when it does come into
effect in 2016.
Colombo, Sri Lanka

16th February 2016
51
Value Creation
Business Model
G4-56
,QSXWV
)LQDQFLDO&DSLWDO
Capital Structure (Equity)
Liquid Assets
Reserves
Capital Adequacy (Core/ Total)
+XPDQ&DSLWDO
Employee Engagement
Core Competencies
Work Life Balance
Diversity and Equality
Work Experience
,QWHOOHFWXDO&DSLWDO
Technological Capabilities
Integrated Risk Management
Management and Control Systems
Information Systems and Database
0DQXIDFWXULQJ&DSLWDO
New Business Developments
Innovations and Value Additions
Customer Touch Points
6RFLDO 5HODWLRQVKLS&DSLWDO
Relationship with Stakeholders
Awards and Recognitions
Products and Services
Customer Engagements
CSR Projects
9DOXH&UHDWLRQ
2XU9LVLRQ
The Growing Force in Sri Lankan Financial Services
2XU9DOXHV
Create a learning culture that promotes individual and organisational
development as well as promoting innovation and value for customers.
Treat all internal and external customers the way we would like to be treated.
Encourage and promote teamwork in all aspects of behaviour.
Open to feedback and demonstrate an eagerness for personal development.
Monitor and demonstrate an impressive commitment to results.
Uncompromising ethical and professional standards of behaviour.
%XVLQHVV$FWLYLWLHV
Strategic Planning and Budgeting
Retail Banking
Corporate Banking
Development Banking
Corporate Finance
Treasury and Investments
FCBU
Trade Services
Wealth Management
Card Centre
E- Remittance
Strategic Business Development
6XSSRUWLQJ$FWLYLWLHV
Human Resources and Training
Operations
Marketing
Administration and Engineering
Research and Development
IT System Development
Legal
Recoveries
Finance
Internal Audit
System Audit
5LVN0DQDJHPHQWDQG*RYHUQDQFH
6WDNHKROGHU(QJDJHPHQW
1DWXUDO&DSLWDO
Biodiversity and Eco Projects
Green Business Practices
Renewable Energy Usage
52
6WUDWHJLF0DQDJHPHQW$SSURDFK
)LQDQFLDO6WDELOLW\
7ULSOH%RWWRP/LQH$SSURDFK
7LVWSL7SHUL[7YV[
Outputs
)LQDQFLDO&DSLWDO
Strengthen Tier I and Tier II capital and maintain
Capital Adequacy Ratios (CAR), in order to deliver
sustainable growth and safeguard the business
through different points in the credit cycle
Highlights for 2015

Debenture Issue of Rs 7 Bn
Core Capital Ratio 7.90% (statutory requirement: 5%)
Total Capital Ratio 12.26% (statutory requirement: 10%)
Liquid Assets Ratio (Bank) 22.05%
+XPDQ&DSLWDO
Develop a dedicated and motivated workforce who
will become the driving force behind corporate
ambitions
Highlights for 2015

Zero industrial disputes
35.4 Training hours per team member per annum
232 team members considered under the Executive Talent
Development Programme
;LHTTLTILYZWYVTV[LKMVYPKLU[PLKWVZP[PVUZ
,QWHOOHFWXDO&DSLWDO
Product Stewardship and Customer Privacy
Highlights for 2015

Upgrading the Internet Payment Gateway
0DQXIDFWXULQJ&DSLWDO
Present a unique value proposition through brandZWLJPJKPMMLYLU[PH[PVU
Highlights for 2015

Introduction of the Sampath Bank American Express Everyday
Credit Card
Introduction of the Online Loan Application tool
Expanding the e-commerce platform
5 new branches opened bringing the total island-wide network of
branches to 225
Wider physical outreach and diverse distribution

channels to bring the Bank closer to customer and
provide 24/7 access
6RFLDO 5HODWLRQVKLS&DSLWDO
Manage the direct & indirect impact resulting from
business activities in a manner that would produce
positive results for the community
Highlights for 2015

Financial inclusion through the Sampath Saviya, Entrepreneur
+L]LSVWTLU[7YVNYHTTLILULJPHYPLZ
Over 2 million customer base
60 CSR Projects
24 Local and International Awards and Recognitions
1DWXUDO&DSLWDO
Become a truly Green bank
Highlights for 2015

Carbon Footprint Calculation (3,753 tCO2e - 2015, 2,753 tCO2e - 2014)
Financing Non-Conventional Renewable Energy Projects
(292% more projects than last year)
Commissioning Solar Power Grids at Colombo Super branch
53
Sustainability
Philosophy
Sustainability has been and will always
be an integral part of Sampath Bank
PLCs status quo. We therefore strive to
accomplish our corporate goals in sync
with national priorities, while promoting
global best practices for managing the
economic, environmental and social
impacts of the business. At the same
time, we will remain true to our core
banking values and adhere to the highest
ethical standards, in order to manage our
triple-bottom-line.
at the same time ensuring the health and

sustainability of our business.
We understand that achieving this begins
with intuitive decision-making and smart
choices that address economic, social
and environmental issues both at the
strategic level and in our day-to-day
work. To do this, we have begun to
develop a range of multi-stakeholder
solutions that will help to reinforce the
Banks triple bottom line position, today,
tomorrow and in the years to come.
Our aim is to differentiate ourselves as

an exceptional commercial bank, while
6WUDWHJLF)RFXVRQ7ULSOH%RWWRP/LQH
Pla
ne
t
le
op
Pe
9,6,21 Work to create

a healthier planet by
supporting the environment
that supports us. In doing
so, we strive to challenge
the way people think about
the role of banks in building
a greener planet
9,6,21 Focus on providing

real solutions that enrich
the lives of our clients,
customers, employees,
suppliers, business partners
and communities connected
to our work
Pr o f it
9,6,21<ZLV\YUHUJPHSWYV^LZZ[V[YPNNLYZ\Z[HPUHISL
nation-wide development so as to raise Sri Lankas
socio-economic position in the long term
54
G4-42
Emerging
Sustainability
Trends
In this day and age, banks are
called upon to play a wider
role and the current trends
seem to demand that banks
not only meet the needs of
their customers, but also work
to empower more and more
people to participate in the
countrys formal economic
system. This means promoting
NYLH[LYUHUJPHSPUJS\ZPVUHUK
UHUJPHSLK\JH[PVUHTVUN[OL
communities.
Addressing broader
environmental concerns is
yet another area that has of
late, been assigned to the
banking sector. Here, banks are
expected to make a difference,
by investing in commercially
viable Green energy projects
and promoting eco-friendly
business practices among
stakeholders.
Modern day banks are also
expected to go beyond their
commercial operations and help
society to address a variety of
important needs, particularly in
times of crisis.
In order to survive and indeed
progress in this environment,
todays commercial banks
would need to move beyond
the traditional brick and mortar
banking norms and reinvent
themselves as animators of
national progress.
2XU6XVWDLQDELOLW\9LVLRQ0$SSURDFKWR6XVWDLQDELOLW\
Adopt globally accepted best

practices for sustainability
management.
Comply with international
sustainability standards to ensure a
transparent reporting framework.
G4-02,42
Sustainability
Trends
2SSRUWXQLWLHVDQG7KUHDWV
Corporate
Objectives
Stakeholder
Rights
Framework
3600
Approach to
6XVWDLQDELOLW\
Strategic
Planning
Process
Sustainability
Product
Stewardship
Opportunities
and Threats
Risk
Management
Leverage on emerging
technologies to achieve
differentiation as a more customercentric bank.
7YVTV[LUHUJPHSPUJS\ZPVU[V[OL
unbanked community.
Encourage customers to subscribe
to a new business paradigm that
addresses the consequences of
climate change.
Increasing employee sustainability
by managing the needs of the
younger generation.
Addressing Human Resources
challenges resulting from an ageing
workforce.
5LVN0DQDJHPHQW
&RUSRUDWH2EMHFWLYHV
Maintain higher credit growth while
focusing more on retail products
such as housing, leasing and credit
cards.
Increase funding through low cost
deposits by focusing more on
minor savings and senior citizens
accounts.
Additional fee based income
generation to supplement the drop
in Net Interest Margin (NIM).
Venture in to overseas markets.
Maintain a moderate growth in the
branch network while expanding
standalone ATMs to increase
the Banks access points to
customers.
Focus on speedy alternative
electronic delivery channels.

0TWYV]LJ\Z[VTLYWYV[HIPSP[`
through customer retention.
(KVW[PUNJVZ[LMJPLU[Z[YH[LNPLZ
[VLUOHUJL[OLWYV[HIPSP[`PU[OL
wake of falling NIM.
6WUDWHJLF3ODQQLQJ3URFHVV
Integrating key economic,
environmental and social concerns
as a part of the day-to-day
operations.
Reduce procedural complexity,
minimize organizational layers
and delegate more decisionmaking powers to regional/branch
managers.
Ongoing investments to improve
the core business model and
enhance the triple bottom line
performance of Sampath Bank, in
the long term.
Establish strong fundamental

governance framework.
Adherence to all mandatory
regulations.
Encourage employee goal
congruence.
Create a robust communicative
culture.
Invest in employee learning and
development.
6XVWDLQDELOLW\3URGXFW6WHZDUGVKLS
Continuous monitoring throughout
the product life cycle to ensure
that they remain sustainable in
cognizance to changes in the
operating environment.
Uniform service standards across
HSSKLSP]LY`JOHUULSZYLLJ[PUN
WYVMLZZPVUHSLMJPLU[HUK
personalized service at all levels.
Sustaining customer trust and
satisfaction through innovation and
best practices.
55
Sustainability Philosophy
Empower customer community

[OYV\NOPTWYV]LKUHUJPHS
discipline.
Maintaining a competitive edge by
^LSSZ[Y\J[\YLKUHUJPHSZVS\[PVUZ
Ensure customer complaints
HYLHKKYLZZLKLMJPLU[S`HUK
effectively.
9LKLUPUNPUK\Z[YÌLUJOTHYRZ
through best in-class banking
technology.
Leading by example in promoting
eco-friendly business practices.
6WDNHKROGHU5LJKWV)UDPHZRUN
Re-align strategic goals to
move away from a traditional
philanthropic focus, towards a
more strategic approach that
creates competitive advantages for
all our stakeholders.
Wealth creation for all stakeholders
vis-a-vis forward looking corporate
strategies, while assessing the
relative market risk.
Ensure the value creation for
7LVWSL7SHUL[HUK7YV[[OYV\NO
a sustainable banking platform.
6XVWDLQDELOLW\7UHQGV
Greater emphasis on consumer
engagement
Growing demand for multi-channel
banking
Popularity of social media
Equal opportunities in the work
place
Best business practices for Human
Rights
Use of non-conventional renewable
energy (NCRE) as a solution to the
global energy crisis
Eco-friendly business practices
and green ethics
56
CSR &
Sustainability
Governance
Recording, evaluating
and reporting of key
sustainability indicators
and material aspects
comes under the purview
of the CSR Committee,
headed by the DGMMarketing & Business
Development.
G4-45,46,48
Once the authorization of the

CSR Committee has been
obtained, all such sustainability
information is then presented
to the governance body of the
IHURMVYUHSHWWYV]HS
The governance body then
carries out a comprehensive
review of all sustainability
aspects to verify the accuracy
of each of the economic, social
and environmental topics that
are to be disclosed in the
annual report.
Stakeholder
Management
results and manage our reputational
risk. We subscribe to an integrated
stakeholder management model that
The simple act of getting to know our

stakeholders is vital for us in order to
achieve the desired triple bottom line
promotes healthy and enlightened

dialogue between the Bank and all those
connected to the business. This helps
us to better manage their expectations
and work out the social, economic,
environmental, legal and regulatory
factors that are likely to have either a
direct or indirect impact on the way in
which we operate.
6WDNHKROGHU0DQDJHPHQW0RGHO
G4-37
,GHQWLFDWLRQRI,VVXH
No
Material Aspect
Yes
Categorisation of Issues
:[HRLOVSKLY0KLU[PJH[PVU0TWHJ[(ZZLZZTLU[
Customers
Employees
Regulators
Community
Environment
Shareholders
Suppliers
& Service
Providers
Evaluation & Getting Feedback

from Stakeholders
Stakeholder Engagement
Setting Goals and Objectives
Evaluating Alternatives
Implementation and Monitoring
Review
Stakeholder Engagement
Materiality Testing
No
Acceptable
Yes
Reporting and Record Keeping
57
Stakeholder Management
G4-24,25
As the mainstay of our stakeholder
management model, stakeholder
engagement is a critical aspect of
our strategy execution process. By

developing and maintaining meaningful
relationships through ongoing stakeholder
engagement, we are able to continuously
improve the alignment between the Bank

and all key stakeholders. This integrated
approach has become a key differentiator
that has helped us stay ahead and secure
HKLUP[LJVTWL[P[P]LHK]HU[HNL
Employees
Regular engagement with our employees helps us to generate better value for our team and create
a dedicated team to deliver superior customer service, so that they may in turn become the core
drivers of corporate goals.
More on page 146 (Refer to Caring for Our People )
Customers
The feedbacks we receive from individual customers enable us to develop new products that
are tailored to help answer individuals needs at every stage of their lives. It has also helped us
understand how we can become a more proactive bank, capable of offering dynamic solutions to
meet the expectations of todays customers. Meanwhile, by engaging with our corporate clients we
have been able to provide customized, strategic and forward-looking business solutions.
More on page 161 (Refer to Supporting Our Clients)
Shareholders
Communications with our shareholders are highly transparent and seek to address key concerns
that they may have. This is in addition to the disclosure framework that provides details regarding
our economic performance and strategy.
More on page 174 (Refer to Informing Our Investors)
Suppliers and Service Providers

Ongoing dialogue with our Suppliers and Service Providers, seek to align them with our business
ethics and value system. This will allow us to grow together by embracing best business practices
and internationally accepted governance standards.
More on page 175 (Refer to Collaborating with our Partners)
Communities
Engagement with communities, help us to understand how our business impacts their lives. We are
then able to take appropriate action to minimize the negative impacts. Regular engagement also
sheds light on how we can step in to empower communities and improve their social-economic
standards in the long term.
More on page 178 (Refer to Strengthening Our Communities)
58
Materiality
Assessment
G4-18,48
The materiality assessment forms a

key part of stakeholder management
mechanism. For this purpose we use a
comprehensive Materiality Matrix to track
stakeholder concerns and identify new
,GHQWLI\
6WDNHKROGHUV
Customers
Employees
Suppliers and Service
Providers
Shareholders
Regulators
Community
Over 25 stakeholders were
interviewed in 2015
different views and perspectives of our

stakeholders and evaluate how these
issues may impact our business. We are
then able to map out the best strategies
to actively address evolving economic,
social and environmental issues and
deliver on the promises made to each of
our stakeholders.
issues as and when they emerge. It is

a formal analysis that helps to identify,
prioritize and review material economic,
social and environmental topics that
impact Sampath Bank PLC. It is how
we gain a better understanding of the
5HYLHZ
Prioritize
0DWHULDO,VVXHV
3URJUHVV
Importance to Stakeholder
Awareness of the issues
Evidence and impact of the
issue
Industry and peer response
Relevance to Sampath Bank
Potential short and long term
impacts
Ethical considerations
Regulatory commitments
Reputational risk
Strategic goal alignment

Reporting parameters
Aspects
Economic
Environmental
Social
59
Materiality Assessment
G4-19,20,21
Material Level within the Organization
9 14 33
18 22 34
36 37
17 19 20 21 24 25
4 11 12
26 27 28 29 30 35
39 42 45 46
15 16 23
43 44
32 38 40
10 13
31
41
High
Medium
Low
Material Level out side the Organization
No
Aspect
Boundary
Material Level within the

Organization
Material Level out side

the Organization
(FRQRPLF
1
Economic Performance
Sampath Bank
High
High
Market Presence
Sampath Bank
High
High
Indirect Economic Impacts
Sampath Bank /
Community
High
High
Procurement Practices
Supplier
High
High
(QYLURQPHQWDO
5
Materials
Sampath Bank
Low
Low
Energy
Sampath Bank
High
Low
Water
Sampath Bank
High
Low
Biodiversity
Sampath Bank
High
Low
Emissions
Sampath Bank
High
Low
10
,M\LU[HUK>HZ[L
Community
Medium
Low
11
Products and Services
Sampath Bank
High
High
12
Compliance - Environmental
Sampath Bank
High
High
13
Transport
Community
Medium
Low
14
Overall
Sampath Bank
High
Low
15
Supplier Environment Assessment
Suppliers
Medium
Medium
16
Environment Grievance Mechanisms
Sampath Bank
Medium
Medium
60
No
Aspect
Boundary
Material Level within the

Organization
Material Level out side

the Organization
6RFLDO/DERXU3UDFWLFHVDQG'HFHQW:RUN
17
Employment
Sampath Bank
High
High
18
Labour/ Management Relations
Employee
High
Medium
19
Occupational Health and Safety
Employee
High
High
20
Training and Education
Employee
High
High
21
Diversity and Equal Opportunity
Sampath Bank
High
High
22
Equal Remuneration for Women & Men
Sampath Bank
High
Medium
23
Supplier Assessment for Labour Practices
Supplier
Medium
Medium
24
Labour Practice Grievance Mechanisms
Employee
High
High
+XPDQ5LJKWV
25
Investment - Human Rights
Sampath Bank
High
High
26
Non Discrimination
Sampath Bank
High
High
27
Freedom of Association & Collective Bargaining
Employee
High
High
28
Child Labour
Sampath Bank
High
High
29
Forced or Compulsory Labour
Sampath Bank
High
High
30
Security Practices - Human Rights
Sampath Bank
High
High
31
Indigenous Rights
Sampath Bank
Low
Medium
32
Assessment - Human Rights
Sampath Bank
Medium
Medium
33
Supplier Human Rights Assessment
Sampath Bank
High
Low
34
Human Rights Grievance Mechanisms
Sampath Bank
High
Medium
35
Local Communities
Community
High
High
36
Anti-Corruption
Sampath Bank
High
Medium
37
Public Policy
Sampath Bank
High
Medium
38
Anti-Competitive Behaviour
Sampath Bank
Medium
Medium
39
Compliance - Society
Sampath Bank
High
High
40
Supplier Assessment for Impact on Society
Supplier
Medium
Medium
41
Grievance Mechanism for impact on Society
Sampath Bank
Low
High
6RFLHW\
3URGXFW5HVSRQVLELOLW\
42
Customer Health and Safety
Customer
High
High
43
Product and Service Labelling
Sampath Bank
Medium
High
44
Marketing Communications
Sampath Bank
Medium
High
45
Customer Privacy
Sampath Bank
High
High
46
Compliance - Product Responsibility
Sampath Bank
High
High
G4-23
To expand our sustainability parameters, we carried out an internal stakeholder and materiality assessment in 2015. Notably,
this exercise has led to a slight change in our materiality levels for the reporting period
61
Customer
relevant,
ground-breaking
UHUJPHSWYVK\J[Z
HUKZLY]PJLZ
Operational Reviews
.*-6Z=PL^Z
)\ZPULZZ9L]PL^Z
7LYZVUHSHUK)YHUJO)HURPUN
*OHUULS4HUHNLTLU[
*VYWVYH[L)HURPUN
+L]LSVWTLU[)HURPUN
.SVIHS)\ZPULZZ
;YLHZ\Y`
6WLYH[PVUHS:\WWVY[
:\IZPKPHYPLZ
)YHUJO5L[^VYR
5VZ[YV(JJV\U[Z
*VYYLZWVUKLU[)HURZHUK,_JOHUNL*VTWHUPLZ
0U]LZ[VY0UMVYTH[PVU
62
6WLYH[PVUHS9L]PL^Z
G R O U P
C H I E F
F I N A N C I A L
O F F I C E R S
V I E W S
An exciting year
of success
In yet another landmark achievement, the Banks total
asset base surpassed Rs 500 Bn mark during the year.
Interestingly, compared to the other large banks in Sri
Lanka, Sampath Bank appears to have reached this
milestone in a much shorter time frame.
4 What do you see as the key

MHJ[VYZ[OH[PU\LUJLK[OLOLHS[OVM
Sri Lankas economy in 2015?
Having laid the foundation for

progressive economic growth, I believe
Sri Lanka is on track to achieve most of
the macro economic targets for 2015,
despite the political and economic
uncertainties, that accompanied the two
major elections held within the space
of eight months. The political transition
is now over and post-election business
sentiments in the country appear to
support the continuation of market
friendly economic policies. The new
government has put forward their 1st
budget, which contains many proposals
for far reaching changes, including those
on tax reforms.
The GDP growth registered in 2015
is estimated to be around 5.3%.
Encouragingly, the tourism sector
continues to show signs of consistent
growth, despite the many economic ups
and downs during the year. The services
sector too showed signs of recovery
since August 2015, registering a strong
WVZP[P]LJVU[YPI\[PVUPU[OLUHSML^
months of the year.
Ranjith Samaranayake
63
6WLYH[PVUHS9L]PL^Z
.YV\W*OPLM-PUHUJPHS6MJLYZ=PL^Z
4.7
2.1
2.8
2015
2014
2013
2012
From about February

2015, private sector
credit demand
showed signs of
HKLUP[LWPJR\W
OH]PUNUHSS`KLJPKLK
to make use of
the low Average
Weighted Prime
Lending Rates
(AWPLR).
Meanwhile, the tax concessions and

wage increases offered under each
successive election manifestos, helped
boost the average disposable income
leading to a notable uptick in consumer
demand for the year. Nevertheless,
PUH[PVUYLTHPULK^LSSHUJOVYLKMVY
the most part and is estimated to
stay in the region of 2.8% as at 31st
December 2015.
64
GDP Growth
%
8
7.2
6
7.4
6.3
5.3
A It is no secret that since 2014,

the banking industry has been facing
an excess liquidity situation caused by
weak credit demand. However, from
about February 2015, we saw this trend
reversing, as private sector credit demand
ZOV^LKZPNUZVMHKLUP[LWPJR\WOH]PUN
UHSS`KLJPKLK[VTHRL\ZLVM[OLSV^
Average Weighted Prime Lending Rates
(AWPLR). While this signalled an end to
the credit slump of the past two years,
I believe it was also the turning point
for the entire banking industry, which
registered a robust 15.4%, credit growth
PU[OLYZ[UPULTVU[OZVM[OL`LHY;OPZPZ
in sharp contrast to the lacklustre growth
of 5.0% recorded for the corresponding
period in previous year.
AWPLR
%
prices, which restricted the purchasing

power of middle-eastern countries,
resulting a lesser demand for Ceylon Tea.
The global demand for natural rubber
too began to slip from about mid-April,
parallel to the drop in the price of synthetic
rubber in the world market. Stymied by
the weak demand for Tea and Rubber, Sri
Lankas exports fell by 4.4% compared
to the previous year. Despite showing
robust growth in the past, earnings from
migrant worker remittances also grew only
marginally throughout the year.
16
14.4
14
12
10
9.9
8
6.3
7.5
4
2
0
2015
4 What were the key market

drivers that steered the course of
the banking industry in 2015?
2014
2013
2012
9.2
2015
10
2014
12
2013
The performance of Sri Lankas external

sector was disappointing with both
the imports and exports recording
negative growths in 2015. However, the
escalation of consumer demand led to
a considerable spike in non-oil imports,
mainly due to a dramatic increase in
vehicle imports. This was a direct result
of the duty concessions allowed for
the import of smaller capacity vehicles
together with the relatively low interest
rates on vehicle leases. Overall imports
declined marginally due to a sharp drop in
commodity prices, led by oil. Meanwhile,
the export sector continued to struggle
for the second consecutive year. This was
mainly due to the ongoing decline in oil
2012
Inflation
With the marginal widening of the trade

KLJP[HUKJHWP[HSV\[V^Z[OLY\WLL
too came under some pressure, which
prompted the CBSL to step in and allow
NYLH[LYL_PIPSP[`PU[OLKL[LYTPUH[PVUVM
the exchange rate with effect from early
September 2015. Consequently, the
rupee depreciated by 9.9% against the
US Dollar, and settled at Rs 144.20 by
31st December 2015.
300
100
10
300.5
200
20
406.3
35.2
55.8 5.3
400
39.3
32.7 7.8
33.9
340.0
40.3
40
48.2 4.9
500
50
75.4
8.4
Rs Bn
243.3
Due to Other Customers

Non Financial Liabilities
Despite the continuous pressure on the

Net Interest Margin (NIM) caused by the
consistently low AWPLR, industry-wide
WYV[HIPSP[`L_WLYPLUJLKHZ[LHK`NYV^[O
Statistics released up to 30th September
2015 indicate a 26.9% growth, compared
to the corresponding period for 2014.
This was due mainly to an expansion in
credit volumes during this period.
2015
2014
2013
As banks continued to utilize their excess

liquidity to feed the demand for credit,
the liquidity ratio of the banking industry
decreased from 39.5% as at end of 2014
to 33.8% by end of 2015.
Our deposit portfolio surpassed industry

statistics, to register a strong growth of
19.7% in 2015. This was even better
than the 13.1% growth achieved in the
previous year. CASA, which accounted
for 47.3% of the total deposit base as
at 31st December 2015, also improved
slightly during the year. Our total deposit
base surpassed Rs 400 Bn mark this year
MVY[OLYZ[[PTL
Liabilities
Industry CASA
30
A Not only have we achieved our

growth expectations but also clearly
exceeded them and in doing so,
outperformed many industry benchmarks
as well.
2012
Industry credit growth stood at 15.4%,

which is an improvement compared
to the 5.0% growth recoded for the
corresponding period in 2014. Almost
all loan products contributed to the
above achievement except for pawning.
Interestingly the industry-wide
non-performing loan ratio also improved
from 4.2% in 2014 to 3.2% by end of
2015.
2015
The banking industry as a whole has

experienced a good year, cataloguing
stable growth in all key performance
indicators (KPIs), as at 30th September
2015.
2014
Meanwhile, total deposits of the banking

industry grew by 9.4% by the end of
the third quarter. Current and Savings
Accounts (CASA) as a percentage of
total deposits also marginally improved
[VK\YPUN[OLYZ[UPULTVU[OZVM
2015.
2013
4 Given these conditions,

what were the key performance
PUKPJH[VYZ[OH[YLLJ[[OLWYVNYLZZ
of the banking industry in 2015?
2012
CA Sri Lanka Annual Report Awards 2015
6\YKLWVZP[
WVY[MVSPV
Z\YWHZZLK
PUK\Z[Y`Z[H[PZ[PJZ
to register a strong
NYV^[OVM
PU
4 How do you compare the

growth registered by Sampath
Bank PLC against that of the
industry? And what are the key
performance highlights?
Other Financial Liabilities
In yet another landmark achievement, the

Banks total asset base surpassed the
Rs 500 Bn mark during the year.
Interestingly, compared to the other
large banks in Sri Lanka, Sampath Bank
appears to have reached this milestone in
a much shorter time frame, signalling our
commitment to be the Growing Force in
Sri Lankas Financial Services Industry.
65
6WLYH[PVUHS9L]PL^Z
Total Advances vs
Pawning Advances
Rs Bn
%
30
384.6
400
350
300
19.7
200
150
271.1
250
310.5
25.4
216.6
20
15
10
7.9
100
25
3.5
50
2015
2014
2013
0
2012
Gross Advances - Other Customers

Exposure - Pawning
NII & NIM

Rs Bn
Other Financial Assets
66
20
3.0
4.39
2.68
4.05
2.5
3.95
15
3.64
2.07
1.93
2.0
1.5
1.0
15.7
1.64
17.4
10
2
1
0.5
0
Net Interest Income (NII)

Net Interest Margin (NIM)
2015
2015
2014
0
0.0
2012
Coming back to our performance for the

year, we made use of the strong appetite
for credit to grow our loan book. All loan
products (except for pawning) performed
well, recording healthy growth compared
to the previous year. This meant we were
able to achieve a sizable 24.0% growth
in our lending portfolio as opposed to
15.4% industry-wide growth as at 30th
September 2015.
15.3
138.8
377.4
2015
NPL
2014
Loans & Receivables

Non Financial Assets
2014
2013
2012
2013
100
302.4
200
260.0
300
209.0 91.9 8.5
400
112.4 9.6
500
120.4 9.2
9.1
600
Shifting away from the over-reliance on

the high-yielding pawning product in
favour of other lower-yielding offerings,
meant we had to content with a loss in
NIMs generated through fund-based
operations. Being the main source of
income for the Bank, NII account for a
ZPNUPJHU[WVY[PVUVM[OL)HURZVWLYH[PUN
income (68.8% in 2015 compared to
73.5% in 2014).
2013
Rs Bn
The fact that we were able to achieve

this overall credit growth without
compromising on the credit quality is
indeed a commendable achievement.
Our NPL ratio registered a decrease
from 1.93% as at 31st December 2014
to 1.64% as at 31st December 2015.
However, our current NPL ratio is believed
to be the lowest among industry peers.
11.6
Assets
Ever since the pawning crisis hit in 2013,

we have been facing high impairment
provisions as well. However, since then,
by strictly rationalizing our asset-mix and
reducing the exposure to pawning, we
have been able to bring down impairment
provisions and our total impairment
charge dropped from Rs 1,401.4 Mn
in 2014 to Rs 943.6 Mn in 2015, an
impressive YoY decline of 32.7%.
2012
(SSSVHUWYVK\J[Z
WLYMVYTLK^LSS
YLJVYKPUNOLHS[O`
NYV^[OJVTWHYLK
[V[OLWYL]PV\Z
`LHY
Since the reduction in gold prices that

affected the pawning product in April
2013, we have continued to reduce
our exposure to pawning, as part of
the ongoing risk management strategy
to achieve a healthier asset-mix. The
exposure on pawning as at 31st
December 2015 therefore stood at 3.5%
of the loan book, down from 7.9% as at
31st December 2014.
Rs Mn
14,000
%
14.8
16
15.0
12,000
14
13.7
12
6,000
4,000
10,634
8,000
11,729
10.3
13,339
10,000
10
8
6
4
0
2015
0
2014
2
2013
2,000
2012
Net Fee and

Commission Income
Operating Expenses and

Growth in Operating Expenses
9,248
To compensate for the loss in fund-based

income, we focused on strengthening
commission and fee based income by
leveraging on non-fund based income
sources such as credit and debit card
operations, trade related services and
other banking services. These efforts
paid off and Sampath Bank was able
to record one of the highest volume
increases for commission and fee-based
income, among industry peers, as at 30th
September 2015.
Operating Expenses
Growth in Operating Expenses
Rs Mn
Prot before Tax and

Prot after Tax
Rs Bn
10
Cost to Income Ratio

%
60
50
40
Operating expenses, which stood at

Rs 11.7 Bn in 2014, increased to
9Z)UPUYLLJ[PUNHU
increase of 13.7%. This variance was
mainly due to the salary increments
granted to staff members, increase in
credit/debit card acquisition charges
and increase in business promotional
expenses. On a positive note, the 13.7%
increase in operating expenses has stayed
well below the 18.2% growth in operating
income achieved for 2015.
52.7
Meanwhile, other operating income also

increased by 175.0% over and above
Rs 1,069.5 Mn recorded in the previous
year, partly due to the higher exchange
gains during the year. This was to some
extent supported by the exchange
revaluation gains, arising from currency
depreciation that took place since
September 2015.
30
20
10
0
2015
3.4
4.9
4.5
5.2
6.1
6.7
7.4
2
1
2014
2013
0
2012
2015
2014
2013
2012
54.8
1,000
2014
2,149
51.2
2,543
3,000
2013
4,187
51.7
4,000
Nevertheless, purely from a cost

perspective, I think our cost to income
ratio of 52.7% as at 31st December
2015, is still somewhat high compared
to some of our peer banks. Although in
2015 we did manage to bring down the
ratio to above status from 54.8% in 2014,
we are of the view that this ratio can be
improved further by generating more
income using the existing cost base.
However, I admit, we do have some way
to go before cost optimization can have a
UV[HISLPTWHJ[VUWYV[HIPSP[`
2012
5,000
9.1
5,287
2015
6,000
2,000
;OL)HURYLJVYKLKHWYL[H_WYV[VM
Rs 9.1 Bn for the year 2015, compared to
Rs 6.7 Bn recorded in 2014, a YoY
NYV^[OVM;OLWYL[H_WYV[
growth rate outperformed the post-tax
WYV[NYV^[OYH[LTHPUSÌLJH\ZL[OL[H_
N\YLMVYPUJS\KLK9Z4U^VY[O
of reversals on account of over provisions
made in the previous years. As such,
7VZ[[H_WYV[ZMVY[OL`LHYYVZLI`VUS`
24.8% from Rs 4.9 Bn in 2014 to Rs 6.1
Bn in 2015.
Prot before Tax

Prot after Tax
Shareholders funds increased by

Rs 4,213 Mn from Rs 30,912 Mn as at 31st
December 2014 to Rs 35,125 Mn as at
31st December 2015. This was a 13.6%
growth. Stated Capital increased from
Rs 4,470 Mn as at 31st December 2014
to Rs 5,381 Mn due to the capitalisation
of scrip dividend in April 2015. The net
negative impact on other comprehensive
income on the shareholders funds
amounted to Rs 308 Mn. Losses on reTLHZ\YPUN[OLH]HPSHISLMVYZHSLUHUJPHS
assets reduced the available for sale
reserve by Rs 391.7 Mn from
Rs 1,267.4 Mn in 2014 to Rs 875.7 Mn in
2015. However the net actuarial gains on
KLULKILUL[WSHUZHTV\U[PUN[V
Rs 83.5 Mn had a positive impact on
YL[HPULKWYV[
67
6WLYH[PVUHS9L]PL^Z
ROE and ROA
Sampath shares market price as at

31st December 2015 was at Rs 248.00.
Compared to the last traded price of
the previous year, Rs 236.30, this was a
5% growth. Net assets per share as at
31st December 2015 recorded a growth
of 13.6% from Rs 179.39 per share in
2014 to Rs 203.85 per share as at end
of 2015. Earnings per share for 2015,
which stood at Rs 35.60 too was a
growth of 24.8%, compared to Rs 28.52,
for the corresponding year. Directors
68
As an engine of growth for the economy,

I believe, it is important to create a
suitable environment where banks can
act as agents of change and engage in
a supporting role to facilitate economic
development of the nation. As a major
step towards establishing such an
22.26
1.28
12.88
10
16.35
0.98
1.6
1.4
18.42
15
1.23
1.2
1.0
0.8
0.6
0.4
0.2
2015
2014
2013
0.0
2012
Return on Equity (ROE)

Return on Assets (ROA)
environment, I believe that Banks should

be allowed to plough back a bulk of
[OLPYWYV[ZMVYI\ZPULZZNYV^[O:\JO
measures would not only, enhance
[OLJYLKPIPSP[`VM[OLJV\U[Y`ZUHUJPHS
system but also lead to greater economic
maturity, while at the same time create a
scalable platform for growth for nationwide development in the coming years.
Shareholders Fund
Rs Mn
25,000
20,000
30,912
30,000
35,125
35,000
15,000
10,000
5,000
0
2015
4`JVUJLYUZHYLUV[ZWLJPJ[V
Sampath Bank, but refer to the overall
tax framework applicable to Sri Lankas
banking industry in general. Although we
are proud of being among the highest
taxpayers in the country, thereby making
a substantial contribution towards
national economic development, I believe
that taxes should not be excessive. At
WYLZLU[ULHYS`VMIHURWYV[ZHYL
taxed and I believe that this originates
from the perception that banks are cash
YPJOHUKOPNOS`WYV[HISLPUZ[P[\[PVUZ
Although banks carry large Balance
Sheets, these are mainly from deposits
that have been mobilized from the
general public for lending purposes.
Banks cannot claim ownership to all
these cash resources and merely act
as custodians, involved in the business
of managing other peoples funds. The
Return on Assets (ROA) or in other
words, the overall return generated by
managing these funds is very moderate
and the industry average in our country
is just above 1.3%. At the same time,
IHURZULLK[VNLULYH[LZ\MJPLU[JHWP[HS
M\UKZ[OYV\NO[OLPYHM[LY[H_WYV[Z[V
M\SSS[OLTHUKH[VY`JHWP[HSHKLX\HJ`
requirements, which is an essential factor
for the growth of the banking industry.
1.8
20
2014
performance of the Sampath share

in 2015?
2.0
1.88
28,418
4 Can you comment on the
are any challenges for the future

progress of the Bank?
25
2013
The Bank also issued Debentures

amounting to Rs 7.0 Bn during the last
quarter to strengthen the Tier II and
the total capital. Our goal is to optimize
capital utilization, while maintaining an
adequate capital buffer to support future
business expansion and safeguard an
HJJLW[HISLYPZRWYVSL
4 In conclusion, do you feel there
25,644
The Core Capital (Tier I) and Total Capital

(Tier I+ Tier II) adequacy ratios as at 31st
December 2015 declined by 0.93% and
1.36% respectively compared to 31st
December 2014. This is mainly due to the
presence of more risk-weighted assets in
the lending-mix, being the direct result of
the cutback in the pawning portfolio. As
at 31st December 2015, the Core Capital
and Total Capital Adequacy ratios stood
at 7.90% and 12.26% respectively, well
above the required levels of 5% and 10%
respectively.
OH]LYLJVTTLUKLKHUHSKP]PKLUKVM
Rs 13.00 per share, which will be paid
46.2% in cash and 53.8% in the form of
scrip dividends.
2012
Due mainly to the rapid credit growth, we

managed to reduce our liquidity ratio to
a more acceptable level during the year.
Nonetheless we remained comfortably
above the minimum statutory requirement
of 20% and our liquidity ratio stood at
22.05% at the end of 2015, compared to
24.54% as at end 2014.
Business
Reviews
Business Categories
Primary Objective
Pages
3HUVRQDODQG%UDQFK%DQNLQJ
To respond to each and every customer with timely and

relevant banking solutions that cater to the young and old,
today, tomorrow and in the future
70-75
&KDQQHO0DQDJHPHQW
To facilitate a robust, multi-channel delivery model that is

capable of bringing the Bank closer to the customer
76-83
&RUSRUDWH%DQNLQJ
To act as animators of nation-wide economic progress by

WYV]PKPUNHNPSLM\[\YLMYPLUKSÙHUJPHSZVS\[PVUZMVY[OL
corporates
84-89
'HYHORSPHQW%DQNLQJ
To champion a new business culture and create a scalable

platform to grow the Micro, Small and Medium-scale
Enterprise (MSME) sector
90-95
*OREDO%XVLQHVV
To provide innovative solutions that help individuals and

businesses to transact globally
96-101
7UHDVXU\
To offer bespoke fund management solutions to clients and

strengthen the Banks core liquidity position
102-105
2SHUDWLRQDO6XSSRUW
106-111
Network Services Centre and

Central Cash Department
To ensure seamless integration between back-end and frontLUKVWLYH[PVUZVM[OL)HURPUVYKLY[VM\SSS[OLL_WLJ[LK

service quality
Recoveries
To improve the quality of the advances portfolio by

maintaining a consistently low non performing loan (NPL) ratio
Information Technology
To adopt the latest developments in information technology

MVY[OLILUL[VMHSSZ[HRLOVSKLYZPUJS\KPUNJ\Z[VTLYZ
shareholders, employees etc.
6XEVLGLDULHV
A review of subsidiary company performances
112-116
69
70
6WLYH[PVUHS9L]PL^Z
Rs
409 Bn
Deposit Base
Surpassed Rs 400 Bn
Milestone
Personal and
Branch Banking
20%
Deposit Growth
Rs 67 Bn Growth over
Last Year
47%
CASA
One of the Highest
in the Industry
Rs
386 Bn
Advance Portfolio
Only 3.5% Exposure
on Pawning
24%
Advance Growth
Last Year
Last Year
193.5
157.0
150
100
50
2015
Card Acquiring
Business Growth
200
2014
29%
Rs Bn
100.3
Only Bank to Offer Visa,

Master & Amex Cards
CASA Base
2013
17%
Card Base Growth
Efforts to tap into key underserved and emerging market

segments also saw the revamp
of existing products to capture
the changing market dynamics
and also to bridge the gap. This
meant studying peer tactics and
mapping market trends in a bid
to properly realign the CASA mix
HUKZLJ\YLHKLUP[LJVTWL[P[P]L
advantage.
82.3
Advance Growth
Excluding
Pawning
2012
30%
71
6WLYH[PVUHS9L]PL^Z
Personal and Branch Banking
Forming part of the North-East reconciliation initiatives, was

yet another branch-driven exercise, which saw additional
resources being commissioned in a bid to support the
precise requirements of customers in these areas.
'HSRVLWV
The deposit unit registered a strong
performance for the year, with year-end
results indicating a 19.7% growth in the
overall deposit portfolio compared to the
previous year.
While the steady increase in the
Average Weighted Deposit Rate (AWDR)
throughout 2015 helped mobilize term
deposits, a conscious decision was made
to shed these high-cost term deposits.
Instead, efforts to expand the Current
and Savings Accounts (CASA) base were
stepped up with the branches being
assigned as key drivers of this goal.
The move proved to be a phenomenal
success with the 23.3% YoY growth in
the CASA portfolio as at 31st December
2015.
This was largely due to a two pronged

NYV^[OJVYLZ[YH[LN`YZ[S`[VWYVK\JL
organic growth by mobilizing CASA
in existing markets and secondly
penetrating new markets to secure
inorganic growth of the portfolio.
Accordingly, all promotional activities for
L_PZ[PUN*(:(VMMLYPUNZ^LYLPU[LUZPLK
together with a range of value additions
and service enhancements. Meanwhile,
efforts to tap into key under-served and
emerging market segments also saw the
revamp of existing products to capture
the changing market dynamics and also
to bridge the gap. This meant studying
peer tactics and mapping market trends
in a bid to properly realign the CASA
TP_HUKZLJ\YLHKLUP[LJVTWL[P[P]L
advantage.
In order to better cater to the childrens

savings market, a series of value
additions were brought in to the two
HNZOPWWYVK\J[Z7\I\K\HUK:HWPYP
which allowed us to create different
propositions in the market. The Bank
also took initiatives to create new value
additions to the senior citizens saving
product. These two value creations
allowed the Bank to differentiate its
product offerings to these two market
segments compared to the competitors.
Further, it was felt that addressing the
requirements of a broader spectrum of
the customer market would be crucial in
retaining overall market leadership in the
future.
/RDQVDQG$GYDQFHV
As the initial post-election uncertainty
^VYLVMMPU[OLYZ[X\HY[LYVM[OL`LHY
the Bank leveraged on the low Average
Weighted Prime Lending Rate (AWPLR)
to record a steady growth in the loan
book from April 2015, ending the year
with a 24.0% growth compared to the
previous year. This was the outcome of
a systematic growth strategy aimed at
producing consistent results for the year
ended 31st December 2015.
The year began with efforts to rationalize
the overall advances portfolio, presently
comprising of SME, Retail & Commercial
Lending, Leasing & Hire Purchase,
Housing & Personal Loans and Pawning.
The main aim of this exercise was to
generate a healthy product mix capable
of making a strong positive contribution
to the business in the long term, while
maintaining the overall credit quality of the
portfolio. Among the key steps taken in
this regard, was the decision to drastically
cut back on the exposure to pawning,
particularly as no visible improvement
was seen in the global gold markets even
as the year progressed.
Sampath Ithurum Siththam-World Childrens Day celebrations by Sampath Bank
72
Expanding the housing loans portfolio

was yet another key priority, in the face
of the rapid proliferation of the housing
market. Efforts in this regard were led by
highly focused, thematic campaigns to
tap into the thriving porperty development
and condominium segments in the
housing market. To make inroads into
these source markets, a number of
tie ups were negotiated with leading
developers to promote the housing loan
option to potential buyers.
Central Credit Processing Unit at Gangodawila
Meanwhile, special emphasis was

placed on promoting all retail advance
products in the North and East regions
of the country. Forming part of the
North-East reconciliation initiatives, this
was yet another branch-driven exercise,
which saw additional resources being
commissioned in a bid to support the
precise requirements of customers in
these areas.
Rs Bn
500
45.9
47.3
200
302.4
300
409.4
33.2
341.9
33.8
40
35
30
25
20
15
100
10
5
2015
2014
2013
0
2012
The branches were commissioned to

[HWPU[VPKLU[PLKTHYRL[Z]PHZ[Y\J[\YLK
localised promotional campaigns to
stimulate the demand for these offerings.
Among other things, branches also took
the initiative to tie up with local vehicle
dealers in their area to strengthen the
vehicle lease offering.
50
45
400
A number of operational changes were

also implemented to offer greater support
to the retail lending arm, key among them
was the setting up of the Central Credit
Processing Unit (CCPU) and the online
loan application tool, both of which are
aimed at expediting the loan approval
process.
&DUGV
Total Deposits and CASA
243.6
4VYLV]LYKLZWP[LP[ZSV^YPZRWYVSL
the 6 12 month tenure applicable on
pawning makes it a short term customer
commitment relative to other advances
products which carry a commitment of
4 -5 years. Therefore, it was felt that,
from a business perspective, promoting
products with an extended commercial
value is the only sure way to secure a
steady contribution to the Banks bottom
line in the medium term. This prompted
a shift in focus towards developing the
SME, Retail & Commercial Lending and
Leasing portfolios which carry a longer
commercial tenure. Furthermore, it was
felt that these products would also be
the ideal platform from which to promote
NYLH[LYUHUJPHSPUJS\ZPVUPU:YP3HURH
Aggressive efforts were then deployed
to widen the island-wide customer
base under each of these advanced
categories, with special emphasis being
placed on facilitating the needs of SMEs
vis--vis retail lending, and leasing
facilities.
As these measures began to deliver

results, a notable shift in the lending
mix was observed, with retail lending
accounting for 61.5% and corporate
lending standing at 38.5% of the total
advances portfolio as at 31st December
2015.
Total Deposits
CASA
The above measures produced

exceptional results, with the lending
portfolio attributed to branches, growing
ZPNUPJHU[S`JVTWHYLK[V[OLWYL]PV\Z
year.
It was another successful year for

SampathCards, with all formats
demonstrating strong growth for the
year ended 31st December 2015,
notwithstanding the severe market
competition from both local and foreign
banks. In comparison to the industry
growth rate of 2.9%, the SampathCards
portfolio grew by nearly 17.6%, largely
as a result of higher volumes generated
by the existing customer base. Not only
does this indicate the superiority of the
SampathCard offering, but also highlights
the relevance and timeliness of the
promotional campaigns initiated during the
year. Meanwhile, growth in the Card base
also showed a YoY increase of 20.6%
as at 31st December 2015, a testament
to the success of the card issuance
strategies deployed during the year.
73
6WLYH[PVUHS9L]PL^Z
Personal and Branch Banking
In the months following the launch
of the Ultra Rewards Programme in
May 2015, a steady growth in usage
volumes was observed, indicative of
its potential to generate sustainable
returns in the coming years. This
ILUL[^HZZ\IZLX\LU[S`L_[LUKLK[V
all Visa, MasterCard Gold and Classic
Cardholders as well.
Visa India & South Asia Client Forum 2015
As has been the case in the past few

years, this year too, the goal was to grow
both usage and issuance volumes by
further expanding the versatility across all
card formats.
No of Credit Cards
200,000
Progressing from the discount-driven

proposition adopted in the past for credit
cards, the focus was to provide more
value additions via loyalty and rewards
programmes.
150,000
100,000
50,000
2015
2014
2013
2012
17.6%
Growth of Sampath Credit
Card Portfolio
74
Among the key highlights in this

regard, was the launch of the Ultra
Rewards Programme for Visa Premium
Cardholders. The key differentiator of
the Ultra Rewards scheme is the wide
number of redemption options available
to the Cardholder. Under the scheme,
Cardholders can choose to redeem their
accumulated rewards points from an
array of international merchant partners.
In order to expand access even further,
tie-ups were negotiated with selected
local online retail merchants, where
Cardholders can now redeem their
rewards points in exchange for a range of
products at MyDeal.lk, MyStore.lk & travel
deals at Findmyfare.com.
Key activities conducted under the

ongoing promotional agenda also
helped boost both usage volumes as
well as grow card issuance numbers.
Among the key activities for the year,
was the strengthening of ties between
the Cargills FoodCity supermarket chain
to enhance the current proposition.
The SampathCards Town On Sale
promotion, which was held in Jaffna town
on 12th and 13th September 2015 was
yet another example of a successfully
concluded campaign.
Meanwhile, to further expand the diversity
of the credit card portfolio, the Sampath
Bank American Express Everyday Credit
Card was launched in November 2015.
Aimed at supplementing the needs of the
THZZTHYRL[P[PZ[OLYZ[L]LYJYLKP[JHYK
in Sri Lanka to accurately map the pulse
of the customer. Tied to a guaranteed
cash-back proposition in addition to other
mainstream discount options, the product
is proven to be a highly versatile, multilayered purchasing tool for the customer,
enabling them to save while they spend.
Efforts to popularise the debit card
option also got off the ground with the
launch of the Visa Platinum Debit Card, a
premium offering targeting high-spenders.
The main aim here was to introduce a
differentiated product that would change
the customer perceptions regarding the
use of a debit card for purposes other
than as a mere ATM withdrawal card.
Following its launch in August 2015, a
considerable increase in the number
of Point-of-Sale (PoS) transactions
attributed to the Platinum debit card
Launch of Sampath Bank American Express Everyday Credit Card
Jaffna Town On Sale Promotion
was observed, a clear indication of the

growing acceptance of the product as
a convenient settlement option for the
customer.
Shopping Festival, Colombo International

Book Fair and Singer Lifestyle fair, where
SampathCards was appointed as the
6MJPHS*YLKP[*HYK7HY[ULY
31st December 2015. This in turn

points to the growing acceptance of
SampathCards among users as well as
merchants.
In general, all Sampath Card formats

continued to maintain a very high
level of acceptance among merchant
partners. Nevertheless, efforts to increase
merchant acquisitions were accelerated in
a bid to provide cardholders with access
to a broader island-wide merchant
demographic. Notably, the functionality
of the m-POS device introduced in 2014
was instrumental in developing the SME
merchants and continues to underpin
efforts to expand the diversity of the
merchant network.
Further steps were also taken to

strengthen ties with merchants who offer
interest-free-installment options that
allow clients access to a wider range
of products, which correspond to the
changing lifestyles of today.
These achievements were also honoured

at the Visa India and South Asia Client
Forum 2015 awards held in Goa India,
where SampathCards walked away with
two main category awards. The award
for Outstanding achievement in Credit
Card Portfolio growth in Sri Lanka was
in recognition of portfolio growth. The
award for Breaking Barriers in Point of
Sale and eCommerce Acceptance in Sri
Lanka is a measure of card acceptance.
Incidentally, Sampath Bank was the only
Bank in the entire South Asian region to
receive these two main category awards
from among 70 peer banks in India,
Bangladesh, Nepal, Maldives and Sri
Lanka.
In yet another move to strengthen the

number of touch points available to the
customer, SampathCards also tiedup with a few of the main exhibitions
held in Sri Lanka, namely the Colombo
/V^L]LY[OLTVZ[ZPNUPJHU[[YLUK
tapped into in 2015, was the strategy
to widen the e-commerce portfolio that
led to the signing up of www.mydeal.lk,
www.mystore.lk,www.retailgenius.com,
^^^[HRHZSR^^^SHZZHUHVYHSR^^^
OV\ZLVMNPM[ZSR^^ÛKT`MHYLJVTHUK
www.wow.lk within the year.
These initiatives produced exceptional
results, breaking all records for usage
volumes for the twelve months ending
75
76
6WLYH[PVUHS9L]PL^Z
225
No of Branches
Over 70% Growth
Since 2009
Channel
Management
38
No of Cash
Deposit Kiosks
Installed
Increased Customer
Convenience
Introduction
of E-Vault
Register
370
No of ATMs
36 New Off-site ATMs
Installed in 2015
ATM Daily
Withdrawal
Limit Up to Rs
100,000/-
76
400
200
294
264
250
285
300
10
41
350
150
100
50
2015
0
2014
Introduction
of Touch Pad
Enabled Self
Service at
Branches
On Site and Off Site ATMs
2013
Introduction
of Total
Corporate IT
Solutions
From a business perspective,

it was felt that keeping up with,
and more importantly anticipating
digital trends is the only sure way
to sustain market leadership in the
Internet banking space.
This prompted a coordinated
effort to align the Banks IT
strategy with developments in
the National IT development
agenda, followed by a market
mapping exercise to establish a
medium-term growth strategy for
both retail and corporate Internet
channels.
Retail Internet Banking

Customer Base
255
Growth
2012
90%
On Site ATMs
Off Site ATMs
77
6WLYH[PVUHS9L]PL^Z
Channel Management
Leveraging on the in-house expertise in state-of-the-art,

responsive technology to facilitate multi-device access,
steps were taken to enhance the customer-centricity and
user-friendliness of the entire Internet banking process.
'LJLWDO%DQNLQJ
Customer convenience has always
been the key driver responsible for the
evolution of Sampath Banks digital
banking portfolio, which has grown
progressively in tandem with global
changes in digital mediums. From
conventional banking concepts to a
broader spectrum of web-based and
mobile and Internet channels, the Banks
digital framework has undergone major
changes within a short span of time. This
is mainly due to the rapid increase in the
level of Internet penetration in the country,
which has opened the gateway to the
information super highway. Similarly, the
proliferation of digital smart technology
OHZNP]LUIPY[O[VHZLLTPUNS`PUUP[L
demand for web-based services.
From a business perspective, it was

felt that keeping up with, and more
importantly anticipating digital trends
is the only sure way to sustain market
leadership in the Internet banking space.
This prompted a coordinated effort
to align the Banks IT strategy with
developments in the National IT
development agenda, followed by a
market mapping exercise to establish
a medium-term growth strategy for
both retail and corporate eletronic
delivery channels. To outline priorities,
an expansion blueprint was drawn up.
The goal here was to develop a dynamic
e-banking model that would enhance
customer experience and help the Bank
to reduce operational costs. The key
thrust was to create a lifestyle brand that
Sampath Vishwa Internet Banking Facility
78
gives the consumer the freedom and

[OLL_PIPSP[`[VKV[OLPYIHURPUNH[[OLPY
convenience, at a time and place of their
choosing.
,QWHUQHW%DQNLQJ
For the retail Internet offerings, the focus
was mainly to strengthen the range
of existing Internet and web-based
applications, amidst ongoing efforts to
improve the functionality of each product.
Leveraging on the in-house expertise in
state-of-the-art, responsive technology to
facilitate multi-device access, steps were
taken to enhance the customer-centricity
and user-friendliness of the entire Internet
banking process.
Among the key developments for the
`LHY^HZ"[OLWYVTV[PVUVM[OLTVIPSL
cash offering to facilitate peer-to-peer
transactions, introduction of touch-pad
enabled self-service sign-up facilities
provided at branches, simplifying the
online sign-up process and implementing
self-assigned daily transfer limits. A
U\TILYVMV[OLY]HS\LHKKP[PVUZPUJS\KPUN"
ZPTWSPLKWH`TLU[[LTWSH[LZHUK
diverse bill payment options were also
introduced, while security protocols were
tightened to ensure the safety, security
and maintenance of customer privacy
across all e-banking platforms.
Parallel to these enhancements, an
aggressive mass marketing campaign
was launched to promote the retail
Internet banking proposition as a
mainstream offering, leading to a YoY
increase of nearly 90% in the retail
Internet banking customer base for
2015. This was also accompanied by
an exponential increase in the number
of transactions for the same period.
Meanwhile, an analysis of regional
distribution showed that growth in
Certain rural pockets

across the country
also appeared to
show promising
growth potential in
tandem with the
evolution of suburban
lifestyles. There also
appears to be a
strong link between
island-wide Internet
penetration levels
and the growth in
Internet banking.
the Western Province remained the
strongest. Interestingly however, certain
rural pockets across the country also
appeared to show promising growth
potential in tandem with the evolution of
suburban lifestyles. There also appears
to be a strong link between island-wide
Internet penetration levels and the growth
in Internet banking.
&RUSRUDWH,76ROXWLRQV
A focused strategy was adopted
to develop the business enterprise
solutions model as well. Among the
key developments for the year was the
PU[LNYH[PVUVMHJVTWYLOLUZP]LUHUJPHS
supply chain management tool into the
corporate IT solutions portfolio. The
suite of services now covers a diverse
range of integrated business tools
PUJS\KPUN"JVSSLJ[PVUZWH`TLU[ZHUK
investment management. These dynamic
solutions allow corporates to completely
H\[VTH[L[OLPYUHUJLM\UJ[PVUPTWYV]L
VWLYH[PVUHSLMJPLUJ`HUKILUL[MYVT
lower administrative costs. In addition to
these features, the key differentiator in
Enterprise Automation space, is the time
to deploy measurement. Sampath Bank
has continued to retain its leadership
position with an average turnaround time
of less than one week, from set-up to live
deployment.
Amidst the growing popularity of these
offerings, corporate business automation
continued to register healthy growth, with
a growing number of corporates signing
up for Sampath corporate solutions.
Growth in New Customers for

Sampath Vishwa Internet Banking
%
180
170
160
140
120
100
80
72
60
40
27
20
5
2015
2014
2013
2012
*VYWVYH[LI\ZPULZZ
H\[VTH[PVU
JVU[PU\LK[V
YLNPZ[LYOLHS[O`
NYV^[O
Special Effort
to promote
a Green
Culture
In a special effort to promote
environmental consciousness
among corporates, this year
the Bank strived to further
proliferate the idea of the
WHWLYSLZZVMJLHUK\YNL
corporates to lower their
carbon footprint. The goal here
was to reduce, or possibly
eliminate use of paper-based
payment methodologies such
as cheques by encouraging
corporates to migrate to
Sampath Banks e-payment
technologies. Offering a
complete end-to-end, paperless
payment and collection solution,
the Sampath Bank e-payment
module also drastically cuts
down administrative costs and
minimizes waste.
6DPSDWK9LVKZD&RUSRUDWH
Efforts to improve the functionality of
the Sampath Vishwa Corporate Internet
Banking module continued in this year
as well. These improvements have now
made it possible for companies to use
the Sampath Vishwa portal to perform
B2B operations using the World Wide
Web, in addition to controlling their
collection function, managing trade
related operations, monitoring supply and
value chains and administering statutory
government payments.
In another important development, the
Mobile Cash concept was integrated
with Sampath Vishwa, Corporate Internet
79
6WLYH[PVUHS9L]PL^Z
Channel Management
Supporting
the
e-Commerce
Movement in
Sri Lanka
The e-commerce boom that
originated in mid-2014 saw
HUPU\_VMLIHZLKZ[HY[\WZ
seeking to break into what was
obviously new market territory
in Sri Lanka. As the pioneering
Internet Payment gateway
service provider in Sri Lanka,
Sampath Bank took a strategic
decision to support these
e-commerce startups. Designed
to give special weightage to the
e-commerce business model,
Sampath Banks proposition
immediately made a strong
impact among the e-commerce
business community in Sri
Lanka. In 2015 alone the Banks
e-commerce customer base
NYL^ZPNUPJHU[S`JV]LYPUNZ\JO
diverse businesses as retail,
travel, leisure, airline ticketing,
and government services.
Sampath Mobile Cash
;OL:4:)HURPUN
WSH[MVYTZH^
ZPNUPJHU[
increase in
J\Z[VTLYZPNU
\WZZWLHYOLHKLK
I`[OLAYLSVHK
[VVS
Banking suite, allowing corporates
to make transfers to customers who
are non- Sampath account holders
as well. Thereby corporates are now
able to reach out to the vast unbanked
demographic in the country and support
the Governments digital-Inclusion
programme.
Efforts were also initiated to strengthen
key operational aspects of the corporate
Internet banking modules, in order
[VIVVZ[LMJPLUJ`HUKPTWYV]L[OL
80
versatility of the offering. Upgrading of the

Internet payment gateway, introduction
of multi-layer security protocols (both
vertical and horizontal), improvements
[V[OLIHJRVMJLPU[LNYH[PVUZVM[^HYL
YLUPUN[OLWH`TLU[ZLY]PJLZTLJOHUPZT
and reducing procedural complexity
& paperwork, were among the key
developments that took place in 2015.
0RELOH%DQNLQJ
As many customers made the transition
towards Internet banking, it was found
that the gen Y and gen Z demographic
preferred to bypass the personal

computer and move directly to a personal
hand-held device as their primary access
point of the World Wide Web. Hence, a
concentrated effort was made to develop
banking through the mobile device. This
led to the release of version 2 of the
mobile app. Version 2 improvements
include social media connectivity and
additional service locator options together
with a completely new look and feel. The
app upgrade was released on iOS and
Android mobile operating systems. An
app for the Windows operating system
is being developed and is currently in
beta testing phase. It is expected to be
deployed in the early part of next year to
the general public.
SMS Banking platform also saw
ZPNUPJHU[PUJYLHZLPUJ\Z[VTLYZPNU
ups spearheaded by the introduction
of Z-reload tool, which offers users a
convenient option to re-load their prepaid
mobile phones via SMS.
Meanwhile, the SMS Alertz facility
was extended to pawning customers,
in order to provide these customers
with important information regarding
upcoming settlement dates, amounts due
etc.
It was also found that over 50% of the
new retail customers are opting for this
ZLY]PJLÔLUVWLUPUN[OLPYYZ[HJJV\U[
This points to the obvious security
ILUL[ZHZZVJPH[LK^P[O[OLMHJPSP[`ÔPJO
is designed to alert the customer via
text message, each time a transaction is
performed in their account.
The facility has also become immensely
popular among existing customers and
current records indicate that, one in
three Sampath Bank customers have
subscribed for this service.
The SMS Alertz base registered a 42.8%
YoY growth as at 31st December 2015.
%UDQFK1HWZRUN
Having invested heavily in the past to
expand the outreach, the iconic Sampath
footprint is now well represented across
all provinces and districts in Sri Lanka,
with a total branch count of 225 as
at 31st December 2015. Being the
Bank with one of the highest branch
penetration levels among local private
banks, the expansion strategy adopted
for 2015 was a selective one, with only
Number of Branches
225
220
131
112
150
100
212
171
206
200
209
250
50
5 branches being added to the network

within the twelve month period.
The main thrust was therefore to
consolidate the network and develop
core branch competencies in order to
WYVTV[LNYLH[LYUHUJPHSPUJS\ZPVUPU[OL
country. Branches opened in 2015 also
YLLJ[LK[OPZNVHSPUJS\KPUN;OHSH^HRLSL
(Nuwaraeliya District), Poojapitya (Kandy
District), Kesbewa, Nawala-Koswatta
(Colombo District), and Godakawela
(Ratnapura District), which were selected
for their strategic importance and
capability to reach out to the rural/urban
unbanked masses in their respective
areas. Anchored to many neighbouring
townships and an even larger number
of fringe villages, these hub towns have
become major economic centres for the
people of the area. Therefore, developing
a strong branch presence in these hub
towns was seen as the key to delivering
sustainable economic development
across a broader social spectrum.
2015
2014
2013
2012
2011
2010
2009
2008
Moreover, in an effort to maintain the

JVUZPZ[LU[PZSHUK^PKLIYHUJOWYVSL
12 branches were renovated and
5 existing branches were relocated

during the year. Among them was the
Kalutara branch, which was shifted
to the newly constructed three story
Sampath Bank building at No 312 A,
Galle Road, Kalutara South, Kalutara.
Offering the full range of banking services,
unmatched customer convenience and
ample parking facilities, the new upscale
Kalutara branch is now fully geared to
complement the multi-faceted needs of
this fast developing commercial hub. The
Rajagiriya, Pelmadulla, Main Street and
Ragama branches were also relocated
to new premises in order to deliver more
comprehensive banking solutions to feed
the needs of business and communities
in these areas.
The super branch concept continued to
be well received by the customers with all
12 units showing exceptional results for
the year.
Meanwhile, ongoing efforts to strengthen
the branch infrastructure saw a number of
value additions including the introduction
of digital displays at each branch to offer
online real-time currency, interest rate and
tariff updates etc. The safety locker facility
Opening of Nawala Koswatta Branch
81
6WLYH[PVUHS9L]PL^Z
Channel Management
Number of ATMs
coupled with customer convenience

was also extended to branches in the
network, which resulted in 352 new
lockers being allocated in 2015. However,
the major investment for the year was
in commissioning self-deposit kiosks
H[IYHUJOLZ;OLYZ[WOHZLVM[OL
project was rolled out in October 2014
to equip 10 branches across the island.
In addition to enhancing the level of
customer convenience, the introduction
of these self-deposit kiosks is expected
to greatly relieve the workload of the
teller staff at the branch. This would not
only help to streamline the branch cadre
but also improve overall productivity as
branch staff accept more cross-functional
responsibilities, laying the foundation for
a truly sustainable branch model for the
future.
1HZ2SHQLQJV
400
76
100
Opening of the Godakawela Branch
10
9
Total ATMs
Off Site ATMs
2014
0
2013
In 2015, the Sampath ATM network

became the main facilitator in expanding
the Banks footprint across the country.
A total of 9 on-site and 36 off-site ATMs
41
$701HWZRUN
Opening of the Gampaha Railway Station Off-Site ATM
82
326
200
2015
Off-site
ATMs
274
On-site
ATMs
300
264
9 36
370
ATM
2012
Efforts to grow the

number of islandwide touch points,
also forms a part
of the broader
purpose to increase
24/7 cash access,
and make inroads
into yet untapped
market segments at
a provincial and at a
rural level.
were installed within the twelve-month

period, bringing the total number of
Sampath branded units to 370 as at 31st
December 2015.
Now one of the most geographically
widespread grids in Sri Lanka, ongoing
investments to expand the ATM network
highlights the Banks commitment
to deliver greater convenience to all
customers across Sri Lanka.
Efforts to grow the number of islandwide touch points, also forms a part of
the broader purpose to increase 24/7
cash access, and make inroads into
yet untapped market segments at a
provincial and at a rural level. To further
supplement this goal, a series of value
additions were also introduced to boost
the functionality offered by the ATM. Key
among them was the enhancement of the
daily withdrawal limit from Rs 80,000/- to
Rs 100,000/- and extending e-remittance
withdrawals to the ATM platform.
2IIVLWH$70V
The installation of off-site ATMs at housing schemes, educational institutions
and public transport terminals, convey a more dynamic approach to Bring
the Bank closer to the customer.
%XV6WDQGV
3DQDGXUD
1HJRPER
5DLOZD\6WDWLRQV
0DUDGDQD
*DPSDKD
9H\DQJRGD
+RXVLQJ6FKHPHV
5XNPDOJDPD
5DGGROXJDPD
0DOLJDZDWWH
=R\VDSXUD
7UDQVLW-XQFWLRQV
*RGDJDPD
Meepe
83
84
6WLYH[PVUHS9L]PL^Z
58%
Investment
Portfolio Growth
Corporate Finance
Corporate
Banking
9%
Contribution to the
Banks Bottom Line
Corporate Finance
23%
Advance Portfolio
Growth
Corporate Credit
15%
Contribution to the
Banks Bottom Line
Corporate Credit
30%
Advance Portfolio
Growth
Commercial Credit
211.9
100
2015
150
205.5
200
2014
Foreign Currency
Banking Unit
250
166.0
Contribution
to the Banks
Bottom Line
USD Mn
50
0
2013
16%
Gross Loans and

Receivables - FCBU
136.5
Foreign Currency
Banking Unit
(ZHYZ[Z[LW[V^HYKZKL]LSVWPUN
[OLVMMZOVYLKLI[UHUJPUN
capabilities of Sampath Bank, the
Corporate Finance unit stepped
PUHZSLHKUHUJPLYMVYHU\TILY
of Sri Lankan investors seeking
to expand overseas. Among the
notable efforts for the year, the
Corporate Finance unit undertook
to structure a syndicate debt to
set up a hospitality project in a
regional destination.
2012
13%
Advance Portfolio
Growth
85
6WLYH[PVUHS9L]PL^Z
Corporate Banking
The Corporate Finance unit also extended its

activities to provide investment advisory services for
a number of development projects in South-East Asia
and North Africa.
organisations in the health and leisure

sectors were among the other major
clients who opted for these new
structured offerings, including the
securitisation of future receivables. These
Corporate Finance
The Corporate Finance division
contributes towards the Banks noninterest income by generating fee
income for corporate advisory services
offered with regard to large/syndicate
debt structuring, debt securitisations
and custodian services among others.
Interestingly of late, to help counteract
the stress on NIMs hit by the decline in
market interest rates, the division has
been called upon to play a bigger role as
a key driver of fee-based income.
With large corporates showing increasing
keenness to make use of the lower
rates, many were seen moving away
from loans in favour of longer-term debt
instruments. Moreover, the distinctive tax
breaks on listed debt instruments also
provided further incentives for companies
to opt for debentures as a viable funding
alternative. Companies with lower
ratings were found to be seeking credit
enhancements in order to have a broad
investor base for their debentures.
:[LWWPUNPU[VM\SSS[OPZKLTHUK[OL
Corporate Finance unit was able to
structure credit enhancement facilities
for a number of these smaller clients.
Capitalizing on these developments,
Sampath Banks Corporate Finance unit
was able to register a 58.1% increase in
the debenture investments portfolio as at
31st December 2015.
Amari Havodda Resort Maldives
Sector-wise Corporate Finance

Loan Portfolio
%
3.6
2.5
On the back of positive market

sentiments resulting from the postelection hype, the custodian portfolio
also picked up from April 2015, ending
the year with a 44% growth compared to
2014.
0.4
20.1
15.2
19.7
16.9
18.4
Financial & Business
Telecommunication & IT
Tourism & Hotels
Health
Manufacturing
Other Services
Infrastructure
Transport
Meanwhile, the interest shown in

structured debt instruments, particularly
by the NBFI sector, paved the way for
the division to offer bespoke solutions
to address the precise needs of the
client. Many large-scale service sector
86
3.2
efforts also yielded good results with the

securitisation portfolio growing by 72%
compared to the previous year.
The exceptional growth recorded by each

of these portfolios translated well for
the bottom line, with the total fee-based
income growing by 28.3% compared to
the previous year.
Construction
Further measures to boost fee income

included, among other things fees
generated from arranging syndications,
both locally and offshore.
Meanwhile, the notable lack of investment
projects in the country meant the demand
for new large-scale debt was somewhat
limited in 2015. This prompted the

Corporate Finance unit to explore the
prospects of off-shore lending in other
geographical locations. With NIMs of
rupee lending coming under pressure
amidst falling market interest rates
developing this line of business was seen
HZH]PHISLVW[PVUMVY[OLM\[\YL(ZHYZ[
step towards developing the offshore
KLI[UHUJPUNJHWHIPSP[PLZVM:HTWH[O
Bank, the Corporate Finance unit
Z[LWWLKPUHZSLHKUHUJPLYMVYHU\TILY
of Sri Lankan investors seeking to expand
overseas. Among the notable efforts
for the year, the Corporate Finance unit
undertook to structure a syndicate debt
to set up a hospitality project in a regional
destination.
In a further attempt to tap into the
offshore debt syndication market, tie-ups
with foreign banks were aggressively
pursued and the Bank was awarded a
participatory role in a large syndicate
facility in the Indian sub continent. This
OHZJVU[YPI\[LKZPNUPJHU[S`[V^HYKZ
boosting Sampath Banks Foreign
currency loan portfolio. The Corporate
Finance unit also extended its activities
to provide investment advisory services
for a number of development projects
in South-East Asia and North Africa.
>OPSLPTWYV]PUN[OL)HURZWYVSLHZH
regional offshore banker, these efforts
also contributed to the fee-based income,
which in turn helped ease the pressure
on narrowing NIMs caused by low market
interest rates.
In addition to generating fee-based
income, the Corporate Finance Unit is
also assigned to manage the funding
needs of the Bank. The focus for 2015
was to explore low-cost debt alternatives
with the dual aim of supporting balance
sheet growth alongside improvements
to the bottom line. Accordingly, the
Corporate Finance unit was assigned
the task of tapping in to the debt capital
market to bolster Tier II capital of the
Bank and support future growth. The
key activation in this regard was the
&RUSRUDWH&UHGLW
;OLMVJ\ZMVY
^HZ[V
L_WSVYLSV^JVZ[
KLI[HS[LYUH[P]LZ
^P[O[OLK\HSHPT
VMZ\WWVY[PUN
IHSHUJLZOLL[
NYV^[OHSVUNZPKL
PTWYV]LTLU[Z[V
[OLIV[[VTSPUL
issue of 50 Mn listed debentures at
Rs 100/-, valued at a total of Rs 5 Bn,
with the option to issue a further 20 Mn
debentures, at Rs 100/- each, in the
event of oversubscription. Having opened
on 12th November 2015, the debenture
issue was oversubscribed on the same
day, testifying to the high level of investor
JVUKLUJLPU:HTWH[O)HUR73*
In 2015, the Corporate Credit division

looked to reform the customary lending
strategy, which prompted a rethink of
the conventional product mix. The main
aim here was to grow the corporate loan
book, in part to safeguard the Banks
bottom line as NIMs continued to thin on
the back of low market interest rates, and
also to increase overall market share.
Amidst these conditions, it was felt that
growth should ideally be induced by a
volume-based approach to promote
products with a more sustainable, longterm yield capacity. From a marketing
perspective, a series of measures were
initiated to differentiate Sampath Banks
offering from other mainstream products
in the market. In doing so, some products
were re-priced in line with the market and
yet others were enhanced with add-ons
and bundled offers to convince clients to
make a long term commitment. Moreover,
it was felt that strengthening customer
relationships would be key to promoting
these long-term offerings. Accordingly,
the business development unit was
strengthened to oversee customer
relationships and facilitate a more
customer-centric lending model.
TOKYO SuperMix Plant
87
6WLYH[PVUHS9L]PL^Z
Corporate Banking
The business
promotion campaign
for the year was
strongly anchored to
the current service
model, which
assigns a relationship
manager (RM) to
provide a fullyLKNLK[YHKLZLY]PJL
package, in line with
the needs of each
individual client.
The focus for the year then shifted

[V^HYKZKL]LSVWPUN[OLL_WVY[UHUJPUN
model, in response to the ailing export
sectors of Tea and Rubber, which
continued to struggle amidst weakening
global demand. To address the issues
faced by these crisis-ridden industries,
the Corporate Credit Unit focused on
structuring more sustainable facilities that
will strengthen the clients balance sheets
and augment their future earning potential
in the longer term.
(ZPKLMYVT[OLZLZWLJPJNYV^[O
strategies, a conscious effort was
made to strengthen relationships with
all corporate customers. All of these
strategies delivered good results in driving
up the performance of the Corporate
Credit division, which accounted for
13.1% of the Banks revenue and 14.6%
VM[OLWYV[HZH[Z[+LJLTILY
&RPPHUFLDO&UHGLW
The growing focus on such long-term

facilities was also seen as the best way
to ensure that the quality of the portfolio
is maintained. Towards this end, despite
a YoY growth of 22.8% in the Corporate
Credit loan book, the NPA ratio stood at
1.3% as at 31st December 2015.
As always, growing CASA too remained
priority for the Corporate Credit Division.
In order to achieve this goal, aggressive
efforts were made to grow the corporate
CASA base and secure a larger volume
of the main collection accounts of
corporates, a move that led to a YoY
growth of 36.5% in the CASA base.
88
As lower interest rates began to

erode NIMs, many banks and lending
institutions were seen pursuing volumedriven growth to compensate for
depleting margins. Not only did this
heighten the level of competition in
the market, it also created a strong
buyers market accompanied by distinct
movements in buyer preferences.
Working cognizant to this highly
competitive environment, the main
strategic thrust for Sampath Banks
Commercial Credit unit was to secure
a larger market share through visible
product differentiation. A series of
HKKP[PVUHS]HS\L[PLYZHUKZWLJPJ))
developments were then introduced in
order to upgrade existing commercial
credit offerings. This cross-selling
exercise was also aimed at providing
a cohesive, cost-effective solution to
the diverse needs of existing clients.
3L]LYHNPUNVU[OPZ\UPLKWSH[MVYT[OL
Commercial Credit division also sought

to attract new customers from other
mainstream and niche market segments.
To complement this strategy a volumebased pricing model was employed to
deliver organic and inorganic growth of
the portfolio.
Using this model, the businesscanvassing unit was able to tap into
emerging opportunities in tourism, health,
education and property development
sectors, in 2015.
Meanwhile, the business promotion
campaign for the year was strongly
anchored to current service model, which
assigns a relationship manager (RM)
[VWYV]PKLHM\SS`LKNLK[YHKLZLY]PJL
package, in line with the needs of each
individual client. RMs are also expected
to strengthen relationships with their
JSPLU[IHZLI`WYV]PKPUNUHUJPHSHK]PZVY`
services that will help improve the clients
UHUJPHSWVZP[PVUPU[OLSVUN[LYT
This prompted the launch of an ongoing
skills development programme to develop
the capabilities of RMs, not only as brand
ambassadors for Sampath Bank but also
as preemptive animators of progress for
the client.
Sector-wise Commercial Credit

Loan Portfolio
%
5.8
3.0 2.5
6.7
29.4
6.9
8.0
8.8
28.9
Manufacturing
Construction
Traders
Health
Other Services
Agriculture and related

Transport
)RUHLJQ&XUUHQF\%DQNLQJ8QLW
For Sampath Banks FCBU division,
at the top of the agenda for 2015,
was the realignment of the business
mix in response to underlying market
mechanisms. In this regard, the highly
liquid global markets made it possible to
secure low-cost funding which fed the
demand for corporate sector credit. This
pushed up the FCBU advances portfolio
by 12.8% compared to the previous
year, with the asset portfolio witnessing
a 10.4% increase for the year. The
sector-wise exposure however changed
somewhat, as traditional Tea and Rubber
industries continued to struggle amidst
global market turmoil.
Sector-wise FCBU Loan Portfolio
The dedicated business development unit

set up in the previous year also proved to
be a wise investment, with the unit being
YLZWVUZPISLMVYNLULYH[PUNHZPNUPJHU[
volume of business from SMEs in the
apparel, agriculture and non-traditional
export sectors.
In yet another move to boost the overall
performance, the FCBU division stepped
up efforts to grow the offshore lending
portfolio. This included efforts to tap into
PKLU[PLKPU]LZ[TLU[ZPU[OL4HSKP]LZ
India and Bangladesh, as a means of
I\PSKPUN[OL)HURZVMMZOVYLWYVSLMVY[OL
future.
9LLJ[P]LVM[OPZ[YLUK[OL-*)<
has contributed 16% to the overall
WLYMVYTHUJLVM[OL)HURZWYV[PU[OL
year 2015.
%
5.3
2.5 2.2
5.9
43.9
10.9
29.3
Manufacturing
Transport
Tourism & Hotels

Other Services
Infrastructure
89
90
6WLYH[PVUHS9L]PL^Z
332
MSME* Facilities
Granted
Rs
Development
Banking
2Bn
MSME* Loans
Disbursed
85
Branch Managers
Trained on
MSME*
470
*YLKP[6MJLYZ
Trained on
MSME*
Rs
4Bn
Project Finance
Loans Disbursed
Rs
14Bn
Project Finance
Advance Portfolio
Base
22%
Project Finance
Advance Portfolio
Growth
In a strategic move to reduce

possible over-dependence on
the NCRE sector, the division
continued to selectively deepen
the exposure to other sectors of
the economy as well, in particular
the Property Development and
Leisure industries. In addition to
changing the conventional lending
mix, the move also delivered
good results with the total project
UHUJLWVY[MVSPVYLJVYKPUNH
growth as at 31st December
2015.
Sector-wise Renance
Loan Portfolio
%
4.8
2.9 0.6
6.7
8.7
49.3
11.3
15.7
Infrastructure
Tourism & Hotels
Construction
Manufacturing
Traders
Other Services
Transport
*Micro, Small and Medium

Scale Enterprises
91
6WLYH[PVUHS9L]PL^Z
Development Banking
Having embraced
the millennium
development goals
for poverty alleviation,
Sampath Saviya
also mirrors the
national priority to
promote inclusive
banking.
3URMHFW)LQDQFH
Continuing with the mandate to support
large-scale economic development
projects, the Project Finance unit
embarked on a systematic growth
strategy to expand the 2015 project
portfolio. Firstly, steps were taken to
strengthen the exposure in already
established market segments, mainly
to reinforce the stronghold in the NonConventional Renewable Energy (NCRE)
sector. Reputed for the pioneering role
in developing Sri Lankas NCRE sector,
[OLSL]LSVMPUK\Z[Y`ZWLJPJRUV^
how provided by the Project Finance
Division has now also become a visible
differentiator, which has helped Sampath
Bank to further consolidate its position as
the lead promoter in this business space.
However, in a strategic move to reduce
possible over-dependence on the
NCRE sector, the division continued
to selectively deepen the exposure to
other sectors of the economy as well, in
particular the Property Development and
Leisure industries. In addition to changing
92
#Future-friendly
initiative
&DVH6WXG\
In 2015, the Project Finance unit
also began lending to Micro, Small
and Medium Scale business seeking
to engage in the NCRE sector
as part of a Rs 235 Mn, ADBfunded pilot project. Carried out in
collaboration with the Sustainable
Energy Authority of Sri Lanka, this
MSME lending manifesto is an
ambitious assignment aimed at
promoting NCRE as a mainstream
business opportunity.
Given Sampath Banks unmatched
expertise and outstanding track
record in nurturing Sri Lankas
NCRE sector, a sum of
Rs 217.5 Mn, was allocated, the
YZ[L]LYHSSVJH[PVUI`[OL(+)[V
a private commercial bank to foster
MSMEs participation in the NCRE
sector. From a business perspective,
it was a bold move for the Project

Finance Division, signalling a
departure from the conventional
project-lending parameters.
Nevertheless, the division made
notable progress towards achieving
[OLKLZPYLKNVHSZ\JJLZZM\SS`M\SSSPUN
the project brief and committing Rs
3,268 Mn to fund 11 MSME ventures
in the NCRE sector.
Meanwhile, given the renewed
emphasis on the NCRE sector, the
Project Finance Unit also accelerated
efforts to enhance the project
advisory services provided to these
clients. Considerable resources were
allocated to build a pool of experts
capable of advising clients regarding
project risks, developing their
business skills and nurturing a credit
plus culture among these MSMEs.
Sector-wise Project Finance

Loan Portfolio
%
1.5
4.2
1.4
1.0
4.7
8.5
8.8
55.2
14.7
Infrastructure
Tourism & Hotels
Traders
Education
Other Services
Construction
Manufacturing
the conventional lending mix, the move

also delivered good results with the total
WYVQLJ[UHUJLWVY[MVSPVYLJVYKPUNH
growth as at 31st December 2015.
060('HYHORSPHQW
Having achieved greater economic
stability, Sri Lankas economy has been
subject to rapid change in the past
]L`LHYZ;YHKP[PVUHSS`HUHNYPJ\S[\YHS
economy, lately the industry and service
sectors have emerged as key drivers of
economic growth, helping to boost Sri
Lankas per capita to USD 3,625 as at
31st December 2014. Now in transition
towards a middle-income economy, the
country continues to gear itself to achieve
a much higher per-capita in the medium
term.
Amidst this backdrop, it was found that
the Micro, Small and Medium Scale
Enterprise (MSME) sector expanded
in 2015, despite the uncertain political
JSPTH[LK\YPUN[OLYZ[[OYLLX\HY[LYZVM
the year. It has been found that MSMEs
play an important role in any economy
through generation of employment,
contribution to GDP growth and
stimulating other economic activities.
They also offer crucial support to large
industries through sub-contracting,
thereby facilitating the linkage between
the formal and the informal sector. A wellorganised SME sector would thus provide
the foundation for the growth of the entire
industrial sector.
At Sampath Bank PLC, MSME
Development is underpinned by
Sampath Saviya, an Entrepreneur
Development Programme, launched in
2013 to offer both technical support and
UHUJPHSHZZPZ[HUJL[VZ[HY[\WZHZ^LSS
as existing business ventures that lack
the resources to commence/expand their
own business. (Please refer Page 183 to
185 of this report for further information in
this regard).
Financing of Star Class First Hotel (Blue Waves) in Arugam Bay
Having embraced the millennium

development goals for poverty alleviation,
Sampath Saviya also mirrors the
national priority to promote inclusive
banking. It is hoped that expanding
UHUJPHSPUJS\ZPVUPU[OPZTHUULY^V\SK
pave the way for organic and inorganic
business growth in the longer term. Since
its inception, three years ago, Sampath
Saviya has delivered on its promise, by
uplifting the lives of hundreds of families
across the island. Moreover, stakeholders
now perceive Sampath Saviya as one
of the most relevant, reliable and socially
responsive entrepreneur development
models currently available in the market.
would secure their livelihoods in the

long term. Using the globally accepted
CEFE (Competency-based Economies
through Formation of Enterprise) training
methodology, the programme scope
covers key aspects such as business
WSHUUPUN[VVSZIHZPJUHUJPHSWSHUUPUN
& record keeping, eco-friendly business
practices and good labour management
practices, while continuous counselling of
WYVQLJ[ILULJPHYPLZLUZ\YL[OL`YLTHPU
on track to achieve their commercial
aspirations.
6WDWLVWLFV
1RRI3DUWLFLSDQWV
2L`HJ[P]P[PLZJHYYPLKV\[MVY"
060(:RUNVKRSVIRU
(QWUHSUHQHXUV
The MSME workshops conducted under
Sampath Saviya aim to inculcate key
entrepreneurial competency and much
ULLKLKUHUJPHSKPZJPWSPULHTVUN[OL
rural population, many of whom lack
the required business knowledge to
conduct a sustainable enterprise that
Kandy
Kegalle
Colombo
45 94 23
93
6WLYH[PVUHS9L]PL^Z
Development Banking
Stakeholders now perceive Sampath Saviya as one

of the most relevant, reliable and socially responsive
entrepreneur development models currently available in
the market.
060('HYHORSPHQWWKURXJK
&UHGLW/LQHV
Credit facilities are extended to those
MSMEs who present a viable business
plan and demonstrate their commitment
to succeed. For this purpose, the

Bank taps into the low-cost credit lines
allocated by the Government, earmarked
ZWLJPJHSS`MVY4:4,KL]LSVWTLU[
6WDWLVWLFV
District
No of Facilities
Granted
Value
(Rs)
Kandy
17
127,565,000
Matale
71,000,000
Ampara
8,796,000
Batticaloa
15,422,550
Trincomalee
3,089,018
Anuradhapura
44,036,800
Polonnaruwa
20,350,000
15
69,550,000
97,500,000
19
81,690,384
Mullaitivu
850,000
Vavuniya
6,218,000
Kegalle
60,500,000
Ratnapura
37,000,000
Galle
850,000
Hambantota
20
88,500,000
Matara
27
282,500,000
Badulla
30,200,000
Colombo
99
738,851,625
Gampaha
40
241,361,387
Kalutara
19
74,796,624
332
2,100,627,388
Kurunegala
Puttalam
Jaffna
Total
94
6WUHQJWKHQLQJ6XSSRUW
5HVRXUFHV
The Branch Managers and Credit
6MJLYZHYL[OLRL`WLYZVUULSHZZPNULK
to evaluate the viability of Sampath
Saviya MSMEs. These evaluations are
the baseline measurement used to
extend credit facilities to MSME ventures.
In addition to appraising business
proposals, Branch Managers / Credit
6MJLYZHYLHSZVYLX\PYLK[VHZZLZZ
the entrepreneur on his entrepreneurial
competencies and the level of personal
commitment in running the business.
It is therefore imperative that the
)YHUJO4HUHNLYHUK*YLKP[6MJLYZ
HYLJVU]LYZHU[PUZ\JOHYLHZHZ"IHZPJ
JVZ[PUNUHUJLTHYRL[PUN0;WYVK\J[PVU
management, HRD, risk management
etc.
In-house competency development
training for the Branch Manager and
*YLKP[6MJLYZ[OLYLMVYLHPTZ[V!
Enhance skills, knowledge &
competency of MSME project
PKLU[PJH[PVUL]HS\H[PVUHUK
UHUJPUN
Identify potential MSME customers
HUK[OLPYUHUJPHSKL]LSVWTLU[
needs
Assess systematically viability
of any type of MSME business/
WYVQLJ[MVYUHUJL
Assist and advice MSME
customers in solving their business
problems and investment decision
making
Sampath Saviya MSME Training Workshop
2015 Statistics
No of Programmes
4 programme (4 days) for Branch Managers
WYVNYHTTLMVY*YLKP[6MJLYZ
No of Participants
85
470
95
96
6WLYH[PVUHS9L]PL^Z
25%
Growth in Import
Turnover
Global
Business
15%
Growth in Export
Turnover
26%
Growth in
Commission
Income
46%
Import TT
Turnover Growth
19%
Export TT
Turnover Growth
22%
Rs Mn
1,156.4
1,200
600
300
631.9
900
1,454.4
1,500
2015
2014
0
2013
11%
Remittance
Transactions
Growth
Net Fee and Commision Income

on Trade Services and
International Operations
565.5
17%
Remittance
Commission
Income Growth
Meanwhile, in what is essentially

a relationship-based business
model, much emphasis was also
placed on building relationships
for the future, both with customers
and other foreign correspondent
banks. Leveraging on these
relationships, a concerted
effort was made to grow export
volumes and boost the export
portfolio.
2012
Total TT
Commission
Income Growth
97
6WLYH[PVUHS9L]PL^Z
Global Business
Sampath Bank PLCs Bank Notes Operations (BNO)

continued to retain its position as the market leader
in the business of importing and repatriation of
foreign currency.
7UDGH6HUYLFHV
The export and import sectors of the
country recorded negative growths of
4.4% and 2.1% respectively, during
[OLYZ[LSL]LUTVU[OZVM[OL`LHY
Imports were heavily affected by tax
increases and restrictions imposed on
concessionary duty permits for vehicle
imports etc. The drop in oil prices
contracted the purchasing power of
Middle-East countries resulting in a lesser
demand for tea exports. The demand for
natural rubber exports too were affected
due to a drop in synthetic rubber prices.
However, Sampath Bank PLCs Import
and Export trade portfolios grew by
25% and 15% respectively in 2015.
Consequently, fee income for the year
also grew by 26%.
Interestingly, the branches accounted for

a sizeable share of this growth, which is
the result of the strategic decision taken
in 2014 to regionalise the import/export
business and to use the branch network
to tap into key trade pockets across the
island. The purpose here was to extend
mainstream trade solutions to facilitate
the emerging needs of the SME sector.
Given the results achieved during the
year, this goal appears to have been
successfully met.
Meanwhile, as import trade volumes
continued to grow, our twelve
documentary collection counters
are aimed at the convenience of the
import customers and to assist them in
completing the necessary paperwork.
These changes were seen as an

important customer retention strategy,
particularly as many customers
discouraged by the procedural complexity
of LCs, of late, were found instead opting
for less cumbersome Open Accounts
payment terms. Further efforts to improve
customer service parameters resulted
in extended banking hours at the Trade
Services Department.
Meanwhile, in what is essentially a
relationship-based business model,
much emphasis was also placed on
building relationships for the future,
both with customers and other foreign
correspondent banks. Leveraging on
these relationships, a concerted effort
was made to grow export volumes and
boost the export portfolio.
,QWHUQDWLRQDO2SHUDWLRQV
Parallel to Sri Lankas continuous
trade volumes growth, the demand for
Telegraphic Transfers (TT) too showed
an increase. Having already laid out an
action plan to tap into this thriving market,
the International Operations Division was
able to record good results for 2015.
A notable increase in volumes was
observed owing to a branch led initiative
to popularize TTs across a broader islandwide market.
Given the growth in Sri Lankas import
volumes, the Banks import TT volumes
also grew correspondingly by 46% in
2015. Meanwhile, the highly focused
campaign to develop the export TT
market led to a 19% growth for the year.
Steps were also taken to boost the nontrade TT portfolio, particularly at branch
level. This too delivered good results with
a 46% and 27% of increases in the nontrade inward and outward TT volumes
respectively for the year. Consequently,
fee based income from TTs also rose by
22% for 2015.
Cocktail Function for Trade Customers
98
%DQN1RWHV2SHUDWLRQV%12
Currency volumes during the year
remained strongly appended to
movements in the exchange rate.
Despite the challenges brought on by the
VH[PUNL_JOHUNLYH[L:HTWH[O)HUR
PLCs Bank Notes Operations (BNO)
continued to retain its position as the
market leader in the business of importing
and repatriation of foreign currency.
;OPZPZZLLUHZHWHY[PJ\SHYS`ZPNUPJHU[
achievement and points to the success
of the volume-driven strategies deployed
to mobilise a higher volume of foreign
currency exports and imports.
2014 USD STP Excellence Award from Deutsche Bank
From a customer perspective, a number

of strategies were initiated to improve
[OLLMJPLUJ`VM[OL;;WYVJLZZPUN
mechanism. Key among them was the
system improvements and introduction of
the daily online reconciliation of NOSTRO
accounts. The International Operations
Division currently operates 36 NOSTRO
accounts around the world and it was
felt that daily online reconciliations were
needed to ensure better monitoring
and control over the growing volume of
transactions in each of these accounts.
Automating this process commenced in
October 2015 and is expected to go live
in early 2016.
These efforts go hand in hand with
the new sanction screening system to
screen both Inward and Outward TTs.
Strengthened by an extensive compliance
framework the new mechanism ensures
that TTs are not held up during the
operational process. This forms part
VM[OLUHSWOHZLVM[OLH\[VTH[PVU
process being put into place to improve
LMJPLUJ`HUKJ\[KVÛWYVJLZZPUN[PTL
Once completed, the entire automation
process is expected to bring down
processing time by as much as 25%,
providing customers with a considerably
faster TT turnaround time. In addition,

the automation process would provide
Sampath Vishwa customers the added
ILUL[VMILPUNHISL[VKPYLJ[S`THRL
an online TT request by completing the
required documentation entirely through
the Vishwa platform.
In recognition of the high success
rate maintained in the straight through
process (STP) applied for the outward
TT handling procedure during the year,
Sampath Bank PLC received the 2014
USD STP Excellence Award from
Deutsche Bank.
In other business developments,
Sampath Bank PLC was appointed by
Lanka Clear (Pvt) Ltd, as the settlement
bank for online USD Payment System
for a period of 3 years, with effect from
8th July 2015. Already authorised as the
settlement bank for the local clearing
process of USD Drafts/Cheques, this new
appointment further adds to Sampath
Banks credentials. It is also seen as
an important value addition that would
not only expedite the local TT handling
process, but also result in a considerably
lower customer charge in the future.
Export volumes for the year were affected

I`[OLKPWPUMVYLPNUKPYLJ[PUV^ZÔPJO
meant repatriations were lower than in
the previous years. Amidst this backdrop,
the BNO unit stepped up efforts to grow
domestic sales by leveraging on the
CBSLs decision to relax the carrying
threshold allowing individuals to take out
of the country, a maximum of
USD 10,000 at a time. Needless to
say, the ruling encouraged many new
players to break into the business and
competition remained stiff in this highly
rate-sensitive business. To manage the
competitive challenges emerging from
the market, the BNO unit realigned the
business mix followed by an aggressive
campaign to boost domestic volumes vis-vis the branch network.
Consequently, the main collection
centres in Colombo, Chatham Street and
Negombo as well as the Katunayake Pay
6MJL276YLNPZ[LYLKHU\WZ\YNLPU[OL
demand for movable currencies in 2015.
As the largest exporter of foreign currency
in Sri Lanka, bulk exports from other
banks were also channelled through the
BNO unit, helping to boost volumes.
On the import side, the dearth in foreign
J\YYLUJ`PUV^ZJV\WSLK^P[OOPNO
demand for movable currencies paved
the way for higher import volumes in
2015. All foreign currency imported on
99
6WLYH[PVUHS9L]PL^Z
Global Business
Transaction volumes
from all major source
markets were up
and commission
income showed a
17% YoY increase.
Nevertheless, to
address the imminent
challenges arising
from the highly
competitive market
environment, the
Bank yet again
looked to widen the
choice of delivery
channels available for
recipients.
behalf of other banks also contributed

towards increase in import volumes
for the year. These measures drove up
currency import volumes, which grew by
1,100% over the previous year.
5HPLWWDQFHV
Although more or less a mature operating
environment, the year brought certain
changes, mainly as a result of Telcos
and smaller banks expanding their
activities and attempting to break into
the remittance business. This heightened
the level of competition in the market.
However, the instability of the exchange
rate caused a much bigger challenge and
OHKHULNH[P]LLMMLJ[VU[OLPUV^ZPU[V
the country. Notably, while migrant worker
remittances did grow by 11% in 2015, it
did so at a much slower pace than in the
past two years. Interestingly, with a lesser
number of female migrant workers taking
up employment overseas, this problem is
only likely to worsen in the coming years.
On the other hand, the number of skilled
and unskilled male migrant workers
appeared to be on the rise, offering a
potential opportunity for growth.
Prompted by these changing dynamics,

the Remittances unit, leveraged on its
strong track record in this business
space to step up efforts to penetrate
new overseas markets. Pre-emptive
efforts to tap into potential new markets
saw tie-ups being negotiated to expand
the partner network in South East Asia
covering South Korea, Singapore and
Malaysia, and on the European side,
in France and Switzerland. Jordan,
Lebanon and Israel were also added
to the partner network during the year,
thereby extending the reach beyond the
GCC countries. Meanwhile, efforts to
consolidate existing inward remittance
corridors also continued with partnerships
in key GCC strongholds being
strengthened.
Transaction volumes from all major
source markets were up and commission
income showed a 17% YoY increase as
at 31st December 2015. Nevertheless,
to address the imminent challenges
arising from the highly competitive
market environment, the Bank yet again
looked to widen the choice of delivery
channels available for recipients to access
Growth in Remittance
Transaction Volume
%
30
20
24
22
25
11
10
12
15
Sampath E-Remittance Transaction
100
2015
2014
2013
2012
Sampath E-Remittance Cash Wasi
Growth in Commission Income

on Remittances
%
25
20
2014
17
20
2013
20
15
10
13
5
0
2015
It is hoped that this would also encourage

recipients to migrate towards formal
channels thereby helping to curb the large
volume of inward remittances coming
PU[V[OLJV\U[Y`\UVMJPHSS`;V^HYKZ[OPZ
end, the Bank also conducted a series
of awareness programmes to stress the
importance of using formal channels and
promote the savings culture among these
under-served communities. These efforts

are also part of Sampath Bank PLCs
sustainable development agenda that
promotes banking inclusion as the basis
of progressive nation-wide development.
2012
amounts remitted to them. Currently,

recipients have the option to access
their funds through the Branch Network
which presents a logistical burden to
many remote rural communities. To
overcome these challenges, the Mobile
Cash mechanism was introduced in
2013, allowing for 24/7, hassle-free cash
access through ATMs. Ongoing efforts to
secure a broader rural recipient base saw
the Bank leverage on this ever-popular
Mobile Cash offering as the core delivery
medium.
101
102
6WLYH[PVUHS9L]PL^Z
144.20
Treasury
Rs
USD Rate
31st December 2015
22.05%
Liquid Asset
Ratio
31st December 2015
7.50%
AWPLR (Weekly)
31st December 2015
6.20%
AWDR (Monthly)
31st December 2015
7.11%
1 Year Treasury Bill
31st December 2015
USD / LKR Movement

Rs
144.20
131.20
2014
90
130.75
120
2013
150
127.65
For its part, the proactive

strategies deployed by the Banks
Treasury unit helped capture these
precise movements, which led to
a 40% growth in revaluation gain
on the Banks foreign currency
reserves.
60
30
2015
2012
103
6WLYH[PVUHS9L]PL^Z
Treasury
All in all a good year, the Treasury unit was able to

make a 14% contribution to the Banks bottom line. It is
expected that the strong performance registered during
the year would provide a good foundation for 2016.
The Treasury Bill market did not change

ZPNUPJHU[S`PU[OLYZ[OHSMVM[OL`LHY
but showed a clear upward movement in
the second half of 2015. This prompted
the Treasury Department to accelerate
its investments in Treasury Bonds and
;YLHZ\Y`)PSSZ;OL)HURHSZVKP]LYZPLK
P[Z_LKPUJVTLWVY[MVSPVI`PUJYLHZPUN[OL
SLDB investments.
Meanwhile, as the long-awaited interest
rate hikes in the US looked to become
a reality, many foreign investors were
looking to pull out of the local equity
market from about May 2015. To
safeguard the Banks bottom line, ahead
of the inevitable drop in share price
indices, the Treasury Department took
steps to divest most of the Banks equity
portfolio.
Sophisticated Systems used at Treasury Department
Although the year started off with an

uncertain political environment in the
country, this concern began to abate,
towards mid-August 2015, followed by
an improvement in market conditions.
Mandated to oversee the Banks core
liquidity position, Sampath Bank Treasury
Department successfully managed
these operating fundamentals to mark a
successful conclusion to the year 2015.
for 2015. During this period, forward

premiums on the one-year tenure also
experienced some swift movements,
ranging from a low of Rs 6.75 to a high
of Rs 6.85. For its part, the proactive
strategies deployed by the Banks
Treasury unit helped capture these
precise movements, which led to a 40%
growth in revaluation gain on the Banks
foreign currency reserves.
The CBSLs decision to allow for greater

L_PIPSP[`PU[OLKL[LYTPUH[PVUVM[OL
exchange rate resulted in an immediate
depreciation in the Rupee. Since the
move was sanctioned on 5th September
2015, the rupee fell from Rs 137.75 to
Rs 144.20 as at 31st December 2015,
an unprecedented 4.7% depreciation
for above period and 9.9% depreciation
The repatriation of the Currency Notes,

which comes under the purview of the
Treasury, also recorded steady growth
throughout the year, reinforcing its
position as the countrys largest importer
and exporter of foreign currency once
again.
104
The CBSL benchmark Standing Deposit

Facility (SDF) and Standing Lending
Facility (SLF) rates were adjusted to 6.0%
and 7.5% respectively in April 2015,
from 6.5% and 8.0%. Nevertheless,
the banking system remained liquid
throughout 2015 and there was no
undue pressure on Sampath Banks
overall liquidity position. The Treasury
Department was thus able to achieve a
healthy rate of return by maintaining the
required liquid assets in relatively high
yielding investments.
to manage the risk implications arising

from uncertain market conditions in the
year ahead. From a liquidity perspective
however, the CBSLs decision in late
December to raise the Statutory Reserve
Requirement (SRR) from 6.0% to 7.5%
remains a cause for concern, particularly
given the negative implications for the
Banks liquidity position in 2016.
All in all a good year, the Treasury unit

was able to make a 14% contribution to
the Banks bottom line. It is expected that
the strong performance registered during
the year would provide a good foundation
for 2016, which at present appears to be
quite unpredictable, with no clear market
signals emerging even by end December
2015. Therefore, diversifying the treasury
portfolio would likely be the best way
One Year Treasury Bill Rate

Movement in 2015
%
7.80
7.55
7.30
7.18
7.05
6.80
6.80
6.92
6.50
6.55
7.11
7.06
6.97
6.48
6.29 6.28
6.00
6.05
Dec-15
Nov-15
Oct-15
Sep-15
Aug-15
Jul-15
Jun-15
May-15
Apr-15
Mar-15
Feb-15
Dec-14
5.80
6.13
6.05
Jan-15
6.30
USD / LKR Movement in 2015

Rs
146
143.15
144
144.20
141.23
142
140.95
140
138
136
134.52
Dec-15
Nov-15
Oct-15
Sep-15
Aug-15
133.63
Jul-15
Apr-15
May-15
133.93
133.10
Mar-15
Feb-15
132.25
Jan-15
130
Dec-14
132 131.20
133.73
133.13
Jun-15
133.20
134
105
106
6WLYH[PVUHS9L]PL^Z
1.6%
NPL Ratio
Operational
Support
New Delinquency
Monitoring
System for
Recoveries
Management
Expanding
Digital
Technologies
Moving
to Cloud
Technology
2.8%
Cheque
Return Ratio
Runner-up
for Product
Innovation
Infosys Finacle Client
Innovation Awards
2015
Cheque Return Ratio

%
3.5
4.5
4.3
2.8
3
2
1
2015
2014
2013
0
2012
It was an outstanding year

for Sampath Banks IT
Department, winning three
prestigious accolades from
both well-recognised local and
foreign professional IT bodies.
Undoubtedly the result of the
broad-based IT strategies adopted
by the Bank over the past years,
[OLZLHJJVSHKLZYLLJ[[OLYVSL
of the IT Department in providing
continuous support to ensure
smooth integration of all business
operations and improve overall
VWLYH[PVUHSLMJPLUJ`VM[OL)HUR
107
6WLYH[PVUHS9L]PL^Z
Operational Support
The conventional
recoveries model was
strengthened, with
a strong emphasis
on improving
the monitoring
mechanism.
Signing the Agreement with Bimputh Finance
1HWZRUN6HUYLFHV&HQWUHDQG
&HQWUDO&DVK'HSDUWPHQW
Sampath Banks Network Service Centre
and Central Cash Department (NSC and
CCD) are engaged in centralised back
VMJLZ\WWVY[M\UJ[PVUZYLZWVUZPISL
MVYLUZ\YPUN[OLZTVV[OV^VMRL`
commercial banking operations. As the
central operation and processing unit, a
number of core banking functions, as well
as a few non-core banking operations
comes under the purview of the NSC and
CCD.
While most of the core-banking functions

are handled directly by the Department,
certain aspects are outsourced, in order
[VPTWYV]L[OLV]LYHSSLMJPLUJ`HUK
reduce costs.
stringent monitoring of cheque returns as

per CBSL requirements has helped the
Bank to maintain a consistent low annual
average return ratio, well below the
industry average.
-HJPSP[H[PUNHULMJPLU[JOLX\LJSLHYPUN
mechanism is one of the primary duties
allocated to the Department. To provide
a wider reach, the NSC leverages on
SLIPS (Sri Lanka Inter-bank Payment
System) partnering with 6 Non Banking
Financial Institutions (NBFIs). Meanwhile,
&KHTXH5HWXUQ5DWLR
Core-banking Functions
Non-core Banking Operations
Cheque Clearing
Cheque Image Capturing
Standing Order Instructions
Document Management *
Bulk Payment Processing
Central Bank Reporting
SLIPS Payments
Cheque & Data Printing (Customer

Statements, Advices, Notices etc.) *
EPF, ETF & Pension Payments
* Outsourced
108
Sampath Bank
Industry
2.8%
3.3%
5HFRYHULHV
Being an election year, the business
environment remained ambiguous for
much of 2015, as pre and post election
uncertainties prompted many to opt for
a wait and see approach. Meanwhile,
HTPKZ[[OLSHJRVMPKLU[PHISLNYV^[O
trends, customers were unable to clarify
[OLPYUHUJPHSWVZP[PVUHUKJVU[PU\LK[V
MHJLKPMJ\S[PLZPUYHPZPUNM\UKZULLKLK[V
make settlements. Industry-wide statistics
suggest that housing loan and leasing
customers were the worst affected by
this market downturn, bringing with it a
number of fresh challenges for the Banks
recoveries division.
Industry NPL vs Bank NPL
The strategies
PTWSLTLU[LKPU
^LYLHPTLK
at reinforcing the
+PNP[HSIHURPUN
MYHTL^VYR
%
6
5.58
5
4
4.25
3.70
3.20
1.64
1.93
2.68
2.07
2015
2014
2013
2012
Bank NPL
Industry NPL
This called for a renewed effort to

maintain loan quality and control the
volume of Non Performing Advances
(NPAs). Towards this end, the
conventional recoveries model was
strengthened, with a strong emphasis
on improving the monitoring mechanism.
The main aim here was to achieve a 25%
reduction in the two-months-in-arrears
position. Accordingly, steps were taken
to enhance the early warning system and
curb the volume of new entrants to the
NPA bracket. This meant additional site
visits and more one-on-one interactions
with likely default customers.
Meanwhile, a new Delinquency
Monitoring System (DMS) was
implemented to strengthen the overall
IHJRVMJLTVUP[VYPUNTLJOHUPZT
Among other things, the new system is
geared to automatically segregate NPLs
in line with CBSL guidelines, facilitate
real-time monitoring of NPLs together
with online accessibility at branch and
regional level.
Further, measures were taken to
automate the existing manually operated
Legal Trail Register for all stakeholders
to easily monitor and take required
procedures. This automation will expedite
the recovery process parallel to court
proceedings.
Aside from the efforts to improve the

central recoveries model, a series of
measures were also implemented to
offer support to the branch recovery
mechanism as well. This included more
training sessions for branch and regional
staff to educate them on the importance
of the recovery function. A number of
knowledge sharing sessions were also
carried out to help identify gaps and
curtail the number of future mistakes.
A culmination of these efforts meant
the Bank was able to restrict the NPA
portfolio to Rs 6,289.5 Mn as at 31st
December 2015, only 6% more than the
previous year. The 1.64% Bank-wide NPL
ratio was also much healthier than the

industry average of 3.20% for 2015.
,7
It was an outstanding year for Sampath
Banks IT Department, winning three
prestigious accolades from both wellrecognised local and foreign professional
IT bodies. Undoubtedly the result of
the broad-based IT strategies adopted
by the Bank over the past years, these
HJJVSHKLZYLLJ[[OLYVSLVM[OL0;
Department in providing continuous
support to ensure smooth integration
of all business operations and improve
V]LYHSSVWLYH[PVUHSLMJPLUJ`VM[OL)HUR
It also points out how IT innovations
Infosys Finacle Innovation Awards Ceremony 2015
109
6WLYH[PVUHS9L]PL^Z
Operational Support
For Sampath Bank, stepping into cloud

technology has been quite comfortable as
its own on premise IT resources have been
prepared during past years.
National Best Quality Software Awards (NBQSA) Ceremony 2015
have enhanced the functionality and

performance of Sampath Banks digital
banking platform, with the ultimate goal
of strengthening the customers banking
experience.
In this regard, the strategies implemented
in 2015 were aimed at reinforcing the
Digital banking framework and overall IT
Z[Y\J[\YL]PZn]PZ[OLMVSSV^PUNHYLHZ"
%URDGHQLQJ&XVWRPHU7RXFK
Points
One hundred units of touch-enabled
self-services device termed as e-Hubs
have been positioned at the branch lobby
area to empower customers to access
HUKILUL[MYVT]HYPV\ZPU[LYUL[IHZLK
UHUJPHSZVS\[PVUZVMMLYLKI`[OL)HUR
such as opening a virtual account through
Sampath Vishwa, paying a utility bill
through Sampath PayEasy etc.
110
In order to continuously enhance the

customer service standards, the Bank
reaches out to customers and welcomes
their prompt feedback. Accordingly, over
600 electronic Customer Satisfaction
Evaluation terminals were installed
at key customer interaction points in
branch. These units are geared to help
customers to rate the service they have
just received. If customers are unhappy
with the service, they can use the terminal
to convey to the Branch Manager, any
issues that they may have.

([SDQGLQJ'LJLWDO7HFKQRORJLHV
The main focus was to develop the
digital platform, in particular, to enhance
the functionality of the Sampath Bank
Corporate Payment Portal. New
improvements brought in during the year,
permit corporates to seamlessly integrate
their systems into the portal via APIs.

They can then take advantage of the full
YHUNLVMILUL[Z\UKLY[OL:HTWH[O
Bank Corporate Payment Portal including
the use of the 24/7/365 day facility to
perform direct B2C transactions. Since
the launch of the facility, a number of
PUZ\YHUJLYTZHUKUHUJLJVTWHUPLZ
have made use of it to transfer funds from
their accounts, directly to recipients via
the Mobile Cash facility.

0RYLQJWR&ORXG7HFKQRORJ\
The cloud technology model is a dynamic
tool that enables businesses to tap
into multiple types of IT resources by
operating on a global platform to meet
their business requirements. Although
a fairly new concept, cloud technology
has become an immensely popular
business tool, used by countless global
corporations and small businesses alike.
Cloud technology is seen as the best
way to reduce the high cost and effort of
purchasing and maintaining dedicated
IT resources. It would also help the
Bank register considerable operational
LMJPLUJPLZHUK[VYLHKPS`H]HPSP[Z]HYPV\Z
platforms to both staff and customers.
For Sampath Bank, stepping in to cloud
technology has been a quite comfortable
as its own on-premise IT resources have
been prepared during past years. IT
Department initially kicked off the use
VMJSV\KPUMYHZ[Y\J[\YLMVYUVUUHUJPHS
M\UJ[PVUZPUJS\KPUN"L3LHYUPUNL3PIYHY`
and Recruitment Module of the Human
Resources Information System. Initially
seen as the test-phase, it is planned
that the knowledge gained from this
experience, would serve as a platform to
extend the use of cloud technologies to
other operational areas as well.
'HYHORSLQJ%XVLQHVV$QDO\WLFV
%$
For some years now, the IT Departments
BA techniques have been instrumental
in the new product development
process. Aside from this, BA data mining
techniques are also used to facilitate
cross selling and up selling of various
products. As part of the ongoing effort to
extend its use to other areas, in 2015, BA
data was used to as part of the customer
acquisition strategy for Sampath cards.
In yet another unconventional approach,
BA was used to help reduce NPLs and
improve the credit quality of the advances
portfolio as at 31st December 2015.
,PSURYLQJ&RPSOLDQFHDQG5LVN
0DQDJHPHQW3DUDPHWHUV
Sampath Banks IT systems have always
been compliant with the CBSL baseline
standard (BSS). Nevertheless, in addition
to this, the IT Department commenced
the process of obtaining the ISO 27001
Z[HUKHYKZJLY[PJH[PVU>P[O
over 80% of the work already done, it
is expected to be completed by early
2016, making Sampath Bank among
the very few banks in Sri Lanka with this
JLY[PJH[PVUMVYHSSIHUR^PKL0;Z`Z[LTZ
111
112
6WLYH[PVUHS9L]PL^Z
48%
Subsidiaries
PAT Growth
Siyapatha
Finance PLC
14.6 Bn
Rs
Total Assets
Siyapatha
Finance PLC
Installation of
LED Motion
Sensor Lights
Sampath Centre
Limited
New Electrical
Panel Boards
Sampath Centre
Limited
*VYWVYH[L6MJL
to a Spacious
New Location
SC Securities
(Private) Limited
14,639
15,000
6,000
3,000
8,986
9,000
10,418
12,000
2015
0
2014
Sampath Information
Technology Solutions
Limited
Rs Mn
2013
78%
Total Assets
Growth
Total Assets - Siyapatha

Finance PLC
5,811
Sampath Information
Limited
From a business perspective,

Siyapatha Finance PLC would be
THRPUNKLUP[LWYVNYLZZ[V^HYKZ
reaching the long-term goal of
becoming a hybrid mini bank with
a view to expanding its product
breadth by adding on a broader
ZWLJ[Y\TVMUHUJPHSWYVK\J[Z
[OH[HYLOP[OLY[VKLULKHZ
traditional banking products.
2012
195%
PAT Growth
113
6WLYH[PVUHS9L]PL^Z
Subsidiaries
Sampath Information
Ltd (SITS), recorded a
successful year with
turnover crossing the
Rs 266 Mn mark for
[OLYZ[[PTL7YV[
before Interest and
Tax, reached
Rs 52.7 Mn, a 56%
increase compared to
the previous year.
Introduction of Siyapatha Loyalty card
6L\DSDWKD)LQDQFH3/&
An extremely rewarding year for
Siyapatha Finance PLC, the company
reached new heights to record the
highest ever top line and bottom line, in
[OLUHUJPHS`LHYLUKPUNZ[+LJLTILY
2015.
From a business perspective, the
*VTWHU`^V\SKILTHRPUNKLUP[L
progress towards reaching the long-term
goal of becoming a hybrid mini bank
with a view to expanding its product
breadth by adding on a broader spectrum
VMUHUJPHSWYVK\J[Z[OH[HYLOP[OLY[V
KLULKHZ[YHKP[PVUHSIHURPUNWYVK\J[Z
3HUIRUPDQFH6L\DSDWKD)LQDQFH3/&
2015 (Rs Mn)
2014 (Rs Mn)
Growth
1,381.5
1,198.2
15.3%
7YV[ILMVYL;H_
652.5
467.1
39.7%
7YV[HM[LY;H_
384.5
260.2
47.8%
14,639.3
10,417.8
40.5%
1.3% (Industry 6.4%)
3.2% (Industry 7.2%)
Total Operating
Income
Asset Base
NPL Ratio
114
The following steps would be initiated

K\YPUN[OLMVY[OJVTPUN`LHYZ"
Ongoing efforts to realign the
business model led to a gradual
shift in business focus. A
conscious effort is being made to
develop a wider range of banking
solutions, including housing loans,
I\ZPULZZSVHUZ[YHKLUHUJL
educational loans etc., in addition
to the traditional leasing, pawning
and factoring products currently
being offered. The move is being
aimed at capturing a broader
segment of the island-wide MSME
market.
Steps were taken to expand the
island-wide geographical footprint,
by leveraging on the Sampath
brand value. The Company
commissioned 5 new branches
during the year, 4 of which were
outside the western province.
As at 31st December 2015, the
Siyapatha network consisted of
a total of 22 branches across Sri
Lanka.
year and is expected to go live in the

YZ[X\HY[LYVM<WVUJVTWSL[PVU
the process will result in considerable
PTWYV]LTLU[PU[OLV]LYHSSLMJPLUJ`VM
the operating mechanism and enhance
the services offered to the clients in the
future.
6DPSDWK&HQWUH/LPLWHG
Sampath Centre Ltd owns and manages
the building at No 110, Sir James Peiris
Mawatha, Colombo 02, where Sampath
)HURZOLHKVMJLVJJ\WPLZ[OLLU[PYL
space. In 2015, a rental income of
Rs 260 Mn was earned for the 166,899
:XM[VMVVYZWHJLYLU[LKV\[[V[OL
OLHKVMJL
The following maintenance activities
were conducted during the year not only
to ensure the upkeep and safety of the
building and premises but also to reduce
VWLYH[PVUHSJVZ[ZÔLYL]LYWVZZPISL"
5L^6MJL7YLTPZLZ:*:LJ\YP[PLZ
Introduced the Siyapatha Loyalty

card for all leasing customers, a
value added initiative where the
customer can avail themselves
of discounts and special offers
from over 30 merchants across
the island. These include vehicle
merchants, vehicle service agents,
auto shops, vehicle insurance
companies and tire houses, among
others.
These well-articulated strategies indicate
that Siyapatha Finance PLC is well on its
^H`[V^HYKZILJVTPUNHM\SS`LKNLK
MSME bank capable of producing
cohesive synergies to complement the
long-term goals of Sampath Bank PLC.
6&6HFXULWLHV3ULYDWH/LPLWHG

It was a sluggish year for the countrys
share markets characterised by low
market activity and passive market
sentiments, which were the result of
two successive elections. The transition
period between the elections also
brought a hiatus in market activity and
discouraged trading activities especially

among large-scale local investors.
Meanwhile the long-awaited rate hike in
the US proved to be another blow, with
many foreign participants pulling out of
the local share market.
Amidst these inactive market conditions,
SC Securities recorded a turnover of
Rs 40 Mn for the twelve months ending
31st December 2015. The loss of
Rs 9.9 Mn recorded at the end of 2014
increased to Rs 17.4 Mn by end 2015.
On a more positive note however, the
JVYWVYH[LVMJL^HZYLSVJH[LK[VH
spacious new location at 26B Alwis
Place, Colombo 3. Following the move,
ZL[[PUN\WVM[OLIHJRVMJLVWLYH[PUN
system (post order execution system)
HSZVYLZ\TLKPU[OLUHSX\HY[LYVM[OL
Installation of LED motion sensor

lights in all newly refurbished
sections of the building. This is part
of a continuous project to install
LULYN`LMJPLU[SPNO[PUNZVS\[PVUZ
throughout the building. At present
3,767 Sq ft of space has been
covered resulting in a 3% saving in
the monthly energy bill.
A solenoid valve switch was
installed to cut off water supply
during off-peak hours.
Installation of 2 new electrical panel
boards using the latest state-ofthe-art safety technology at a total
cost of Rs 15.2 Mn.
6USVJH[PVUYLL_[PUN\PZOLYZ^LYL
increased from 84 to 184 and
3HUIRUPDQFH6DPSDWK&HQWUH/LPLWHG
2015 (Rs Mn)
2014 (Rs Mn)
Growth
7YV[ILMVYL;H_
180.8
160.4
12.7%
7YV[HM[LY;H_
169.6
151.2
12.2%
3,398.3
3,320.5
2.3%
Asset Base
115
6WLYH[PVUHS9L]PL^Z
Subsidiaries
Grow the IT services outsourcing
I\ZPULZZZWLJPJHSS`[VL_[LUK
the hardware and infrastructure
management services to wider
range of corporate clients.
As part of the expansion strategy
for the outsourcing arm, the
scanning unit was moved to a
new premises. The new 3500sqft+
building is equipped with the
latest state-of-the-art scanning
technology solutions.
From an operational perspective, the

following steps were taken during the
year, to boost business volumes and
HJOPL]LVYNHUPJI\ZPULZZNYV^[O"
Rolled out a number of new

software solutions, including
an internal audit solution and
specialised Fixed Assets Registry
for Banks.
Introduced a locally manufactured
Cash Deposit Machines to the
banking sector in collaboration with
a local partner.
Signed business partnership
agreements with three international
partners, namely IBM, Oracle and
Cisco, where SITS will act as a
business partner in marketing their
hardware and software products
in Sri Lanka. By leveraging on
the partnership with IBM, SITS
managed to market the high-end
servers to Sampath Bank, an
activity previously handled by third
party vendors.
13 new emergency call points

were assigned, bringing the total
to 30 as at December 2015.
(UHKKP[PVUHSYLZLUZVYZ
and smoke alarms were also
commissioned across the building
at a cost of Rs 0.8 Mn.
;OLHUU\HSYLKYPSSHUKZHML[`
procedures were implemented as
per the Banks mandate. Ongoing
YLZHML[`[YHPUPUNHSZVJVU[PU\LK
as part of the Business Continuity
7SHU;V[HSYL[YHPUPUNZLZZPVUZ
have exceeded 16 man hours for
the year)
A special programme was carried
out to offer paramedic training
to the team. In 2015, 18 team
members signed up for this
programme conducted by the Red
Cross Society.
Meanwhile, a series of measures were

[HRLU[VPTWYV]L[OLV]LYHSSLMJPLUJ`
of the business, key among them being
the implementation of ISO 9001 : 2008,
Quality Management Standards. The
process, which kicked off in 2014 was
nearing completion as at 31st December
2015 and is expected to be completed in
[OLYZ[X\HY[LYVMUL_[`LHY
6DPSDWK,QIRUPDWLRQ7HFKQRORJ\
6ROXWLRQV/LPLWHG
Sampath Information Technology
Solutions Ltd (SITS), recorded a
successful year with turnover crossing
[OL9Z4UTHYRMVY[OLYZ[[PTL
7YV[ILMVYL0U[LYLZ[HUK;H_YLHJOLK
Rs 52.7 Mn, a 56% increase compared
to the previous year. SITS also posted a
WVZ[[H_WYV[VM9Z4UMVY[OL`LHY
ended 31st December 2015, a 195.2%
PUJYLHZLV]LY[OLWYL]PV\Z`LHYZN\YLVM
Rs 7.8 Mn.
116
Expansion of IT Services Outsourcing Business of SITS
3HUIRUPDQFH6DPSDWK,QIRUPDWLRQ7HFKQRORJ\6ROXWLRQV/LPLWHG
Revenue
7YV[HM[LY;H_
Asset Base
2015 (Rs Mn)
2014 (Rs Mn)
Growth
266.9
149.1
79.0%
23.1
7.8
195.2%
416.0
234.2
77.6%
Branch
Network
Sampath Bank presents a range
of delivery channels that aim
to strike a balance between
traditionalism and advances in
modern technology.
08
Jaffna
District
Branches
01
G4-08
Kilinochchi District
Branch
01
Mullaitivu
District
Branch
02
01
Branches
Branch
Mannar
District
Vavuniya
District
Trincomalee
District
04
Branches
06
Anuradhapura
District
Branches
08
Polonnaruwa
District
Branches
Puttalam
District
03
Branches
12
03
Kurunegala
District
28
Matale
District
Branches
05
Kandy
District
15
07
Branches
Branches
Branches
Ampara
District
Branches
Gampaha
District
Branches
ATM
Kegalle
District
06
Branches
Branches
225
Batticaloa
District
61
Nuwara Eliya
District
06
Branches
Colombo
District
04
Badulla
District
Moneragala
District
Branches
Branches
10
Branches
Kalutara
District
04
Ratnapura
District
Branches
07
Branches
09
Branches
370
Galle
District
08
Branches
06
Hambantota
District
Branches
Matara
District
ATMs
117
6WLYH[PVUHS9L]PL^Z
Branch Network
&HQWUDO3URYLQFH
Branch Name
Address
Telephone No
Fax No
E-mail
Dambulla
No 622, Anuradhapura Road, Dambulla
(066) 2283085/87
(066) 2283067
dambulla.mgr@sampath.lk
Branch Code
90
Digana
No 42, Mahiyangana Road, Digana, Rajawella
(081) 2376765/
(081) 2375340/1
(081) 2376765
digana.mgr@sampath.lk
85
Galewela
No 31C, Kurunegala Road, Galewela
(066) 2287725/6
(066) 2287727
galewela.mgr@sampath.lk
190
Gampola
No 06, Panabokke Mawatha, Gampola
(081) 2350564/5
(081) 2350571
gampola.mgr@sampath.lk
101
Hatton
No 173, Dimbula Road, Hatton
(051) 2225403/5
(051) 2225405
hatton.mgr@sampath.lk
Heerassagala
No.12, William Gopallawa Mawatha,

Heerassagala, Kandy
(081) 2221810/20
(081) 2221830
heerassagala.mgr@sampath.lk
Kandy - Super
No 19, Dalada Veediya, Kandy
(081) 2232778
(081) 2233838
(081) 2232779
kandysuper.mgr@sampath.lk
Kandy City Centre
Shop No L 1-6, Level One, Kandy City Centre

Building, Dalada Veediya, Kandy
(081) 2205825/6
(081) 2205827
kandy_city.mgr@sampath.lk
123
Kandy - Metro
No 29, Cross Street, Kandy
(081) 2200096/7
(081) 2200058
kandy_metro.mgr@sampath.lk
100
Katugastota
No 187, Madawala Road, Katugastota
(081) 2498932/4
(081) 2499123
katugastota.mgr@sampath.lk
Kundasale
No 232, Digana Road, Kundasale
(081) 2421763/4
(081) 2421767
kundasale.mgr@sampath.lk
80
220
7
32
133
Matale
No 184 - 186, Trincomalee Street, Matale
(066) 2223861/2
(066) 2224094
matale.mgr@sampath.lk
Menikhinna
No 54A, Madawala Road, Menikhinna
(081) 2376547/8
(081) 2376549
menikhinna.mgr@sampath.lk
184
25
Nawalapitiya
No 92, Gampola Road, Nawalapitiya
(054) 2223277
(054) 2223700
(054) 2223920
nawalapitiya.mgr@sampath.lk
195
Nuwara Eliya
No 01, Lawson Street, Nuwara Eliya
(052) 2222946/7
(052) 2222948
nuwaraeliya.mgr@sampath.lk
84
Peradeniya
No 676 A, Peradeniya Road, Kandy
(081) 2387876/7
(081) 2384054
peradeniya.mgr@sampath.lk
51
Poojapitiya
No. 30, 32, 34, Main Street, Poojapitiya.
(081) 2307 053/4
(081) 2307 055
poojapitiya.mgr@sampath.lk
221
Pilimatalawa
No 246, Colombo Road, Pilimatalawa
(081) 2577341
(081) 2577336
(081) 2577396
pilimatalawa.mgr@sampath.lk
150
Pussellawa
No 551, Nuwara Eliya Road, Pusselllawa
(081) 2478034/5
(081) 2478036
pussellawa.mgr@sampath.lk
152
Rikillagaskada
No 120, Kandy Road, Rikillagaskada
(081) 2365021/2
(081) 2365023
rikillagaskada.mgr@sampath.lk
163
Thalawakele
No 148,Nuwara Eliya Road, Thalawakele
(052) 2258912/3
(052) 2258914
talawakele.mgr@sampath.lk
222
Wattegama
No 134/A/1, Kandy Road, Wattegama
(081) 2476876/7
(081) 2470600
wattegama.mgr@sampath.lk
105
(DVWHUQ3URYLQFH
Branch Name
Address
Telephone No
Fax No
E-mail
Akkaraipattu
No 61, Sulaiman Shopping Complex, Main

Street, Akkaraipattu
(067) 2279197/8
(067) 2279199
akkaraipattu.mgr@sampath.lk
Ampara
No 9, D S Senanayake Road, Ampara
(063) 2223840/1
(063) 2223444
ampara.mgr@sampath.lk
Branch Code
111
62
Batticaloa
No 32, Thamaraikeny Road, Batticaloa
(065) 2227581/2
(065) 2227583
batticaloa.mgr@sampath.lk
107
Batticaloa 02
No. 394, Trinco Road, Batticaloa
(065) 2228240
(065) 2228241
(065)-2228242
batticaloa2.mgr@sampath.lk
139
Chenkalady
Main Road, Chenkalady
(065) 2241348/9
(065) 2241350
chenkalady.mgr@sampath.lk
121
Dehiattakandiya
No F 79, New Town, Dehiattakandiya
(027) 2250418/9
(027) 2250420
dehiattakandiya.mgr@sampath.lk
167
Kalmunai
No 18, Police Station Road, Kalmunai
(067) 2220448/9
(067) 2222020
kalmunai.mgr@sampath.lk
112
Kaluwanchikudy
Hospital Road, Kaluwanchikudy
(065) 2251177
(065) 2250807
(065) 2250208
kaluwanchikudy.mgr@sampath.lk
125
Kantale
No 70/1, Agrabodhi Road, Kantale
(026) 2234490/1
(026) 2234492
kantale.mgr@sampath.lk
172
Kattankudy
No 57,59, Main Street, Kattankudy 03
(065) 2247930/2
(065) 2247932
kattankudy.mgr@sampath.lk
115
Kinniya
No 106, 108,110 Main Road [Right Side],

Kinniya 03
(026) 2236348/9
(026) 2236350
kinniya.mgr@sampath.lk
177
Muttur
No 67, Main Street, Muttur
(026) 2238181/2
(026) 2238183
muttur.mgr@sampath.lk
208
Ninthavur
No 45/4A, Main Street, Ninthavur
(067) 2251388/9
(067) 2251390
ninthavur.mgr@sampath.lk
185
Oddamavady
Colombo Road, Mavadichenai, Oddamavady
(065) 2257372
(065) 2258210
(065) 2258211
oddamavady.mgr@sampath.lk
124
Pottuvil
Cassim Moulavi Building, Main Street, Pottuvil
(063) 2248194/6
(063) 2248190
pottuvil.mgr@sampath.lk
130
Sainthamaruthu
Main Street, Sainthamaruthu - 16
(067) 2225310
(067) 2225320
(067) 2225330
sainthamaruthu.mgr@sampath.lk
126
Trincomalee
No 262, Central Road, Trincomalee
(026) 2225387/8
(026) 2225389
trinco.mgr@sampath.lk
118
66
1RUWKHUQ3URYLQFH
Branch Name
Address
Telephone No
Fax No
E-mail
Chankanai
Main Street, Chankanai
(021) 2250072/3
(021) 2250072
chankanai.mgr@sampath.lk
Branch Code
164
Chavakachcheri
Kandy Road, Chavakachcheri
(021) 2270091/2
(021) 2270093
chavakachcheri.mgr@sampath.lk
169
Chunnakam
No 160, K K S Road, Chunnakam
(021) 2240721/2
(021) 2240723
chunnakam.mgr@sampath.lk
128
Jaffna
No 56/16, Link Road, Off Stanley Road, Jaffna
(021) 2221025/6
(021) 2221027
jaffna.mgr@sampath.lk
120
Kayts
Suruvil Road, Kayts
(021) 2211611/2/3
(021) 3215428
kayts.mgr@sampath.lk
171
Kilinochchi
Unit 1-4, Antonipillai Building, Kilinochchi
(021) 2285340/1
(021) 2285342
Kilinochchi@sampath.lk
148
Manipay
No 103, Jaffna Road, Manipay
(021) 2255041/2
(021) 2255043
manipay.mgr@sampath.lk
147
Mallavi
Thunnukai Road, Mallavi
(021) 3734802/3
(021) 3734804
mallavi.mgr@sampath.lk
174
Mannar
No 28, Field Street, Ward No.06, Mannar
(023) 2251320/1
(023) 2251322
mannar.mgr@sampath.lk
119
Nelliady
No. 169, Jaffna Road, Nelliady
(021) 2262474
(021) 2264950
(021) 2264951
nelliady.mgr@sampath.lk
129
Thirunelveli
Palaly Road, Thirunelveli North, Jaffna
(021) 2224801/2
(021) 2224803
thirunelveli.mgr@sampath.lk
186
Vavuniya
No. 25, Station Road, Vavuniya
(024) 2222959
(024) 2226806
(024) 2225106
(024) 4589500
vavuniya.mgr@sampath.lk
Vavuniya Super
No:7A, Horowpatana Road, Vavuniya
(024) 2226227/8
(024) 2226229
vavuniya_super.mgr@sampath.lk
55
170
1RUWK&HQWUDO3URYLQFH
Branch Name
Address
Telephone No
Fax No
E-mail
Branch Code
Anuradhapura Super
268, Maithripala Senanayake Mw,

Anuradhapura
(025) 2235026
(025) 2235027
(025) 2235028
anuradhapurasuper.mgr@
sampath.lk
21
Anuradhapura New
Town
No 521/19, Maithripala Senanayake Mawatha,

New Town, Anuradhapura
(025) 2226190/1
(025) 2226192
anuradhapura_newt.mgr@
sampath.lk
168
Aralaganwila
No 113, New Town, Aralaganwila
(027) 2257204/5
(027) 2257206
aralaganwila.mgr@Sampath.lk
154
Hingurakgoda
No 88, D S Senanayake Veediya, Hingurakgoda
(027) 2245300/1
(027) 2245302
hingurakgoda.mgr@sampath.lk
110
Kaduruwela
No 626B, Dharmasiri Building, Main Street,

Kaduruwela
(027) 2225567/8
(027) 2225569
kaduruwela.mgr@sampath.lk
Kahatagasdigiliya
No 67, Anuradhapura Road, Kahatagasdigiliya
(025) 2247087
(025) 2247070
(025) 2247069
kahatagasdigiliya.mgr@sampath.lk
38
203
Kekirawa
No 56, Main Street, Kekirawa
(025) 2265266/7
(025) 2265268
kekirawa.mgr@sampath.lk
149
Nochchiyagama
No 62, Puttalam Road, Nochchiyagama
(025) 2257332/3
(025) 2257334
nochchiyagama.mgr@sampath.lk
138
Thambuththegama
No 255 C, Anuradhapura Road,

Thambuttegama
(025) 2276836
(025) 2275072
(025) 2275072
thambuththegama.mgr@sampath.lk
48
1RUWK:HVWHUQ3URYLQFH
Branch Name
Address
Telephone No
Fax No
E-mail
Alawwa
No 9, 9/1 Giriulla Road, Alawwa
(037) 2279209
(037) 2279463
(037) 2279209
alawwa.mgr@sampath.lk
Anamaduwa
No 69, Galgamuwa Road, Anamaduwa
(032) 2263042/3
(032) 2263044
anamaduwa.mgr@sampath.lk
Branch Code
53
143
Chilaw
No 64, Colombo Road, Chilaw
(032) 2222677/8
(032) 2222777
chilaw.mgr@sampath.lk
108
Dankotuwa
No 63, Nattandiya Road, Dankotuwa
(031) 2261361/2
(031) 2261360
dankotuwa.mgr@sampath.lk
196
Giriulla
No 103/A, Negombo Road, Giriulla
(037) 2289682
(037) 2289582
(037) 2289482
giriulla.mgr@sampath.lk
Hettipola
Kurunegala Road, Hettipola
(037) 2291082/3
(037) 2291084
hettipola.mgr@sampath.lk
Kuliyapitiya
No 259, Madampe Road, Kuliyapitiya
(037) 2281860/1
(037) 2281866
(037) 2281861
kuliyapitiya.mgr@sampath.lk
95
187
23
Kurunegala Metro
No. 183A, Colombo Road, Kurunegala
(037) 2056704/5
(037) 2056706
kurunegala_metro.mgr@sampath.lk
Kurunegala Super
No 31, Negombo Road, Kurunegala
(037) 2223500/2
(037) 2223509
kurunegalasuper.mgr@sampath.lk
Madampe
No 16, New Town, Medagama Road, Madampe (032) 2249222

(032) 2249444
(032) 2249555
madampe.mgr@sampath.lk
189
Maho
No 112-114, Moragollagama Road, Maho
(037) 2275172
maho.mgr@sampath.lk
197
119
(037) 2275170/1
215
6
6WLYH[PVUHS9L]PL^Z
Branch Network
1RUWK:HVWHUQ3URYLQFH&RQWG
Branch Name
Address
Telephone No
Fax No
E-mail
Marawila
No 87, Chilaw Road, Marawila
(032) 2250862/3
(032) 2250861
marawila.mgr@sampath.lk
Branch Code
194
Mawathagama
No 95, Kurunegala Road, Mawathagama
(037) 2296088
(037) 2296088
mawathagama.mgr@sampath.lk
109
Narammala
No 77 & 89 1/1, Kuliyapitiya Road, Narammala
(037) 2248945/6
(037) 2248947
narammala.mgr@sampath.lk
99
Nattandiya
No 149, Kuliyapitiya Road, Nattandiya
(032) 2250263/4
(032) 2250265
nattandiya.mgr@sampath.lk
132
Nikaweratiya
No 136, Kurunegala Road, Nikaweratiya
(037) 2260918/9
(037) 2260920
nikaweratiya.mgr@sampath.lk
102
Pannala
No 100, Negombo Road, Pannala
(037) 2246250
(037) 2245270
(037) 2245272
pannala.mgr@sampath.lk
166
Puttalam
No 114 A, Kurunegala Road,Puttalam
(032) 2266312/3
(032) 2266314
puttalam.mgr@sampath.lk
156
Wariyapola
5H^PUUH6MJL :OVWWPUN*VTWSL_
Kalugamuwa Road, Wariyapola
(037) 2268707/8
(037) 2268144
wariyapola.mgr@sampath.lk
44
Wennappuwa
No 191/A, Colombo Road, Wennappuwa
(031) 2256925/7
(031) 2256926
wennappuwa.mgr@sampath.lk
30
6DEDUDJDPXZD3URYLQFH
Branch Name
Address
Telephone No
Fax No
E-mail
Balangoda
No 117, Barnes Ratwatta Mawatha, Balangoda
(045) 2288793/5
(045) 2288795
balangoda.mgr@sampath.lk
Branch Code
97
Deraniyagala
No 63, Noori Road, Deraniyagala.
(036) 2249500
(036) 2249522
(036) 2249500
deraniyagala.mgr@sampath.lk
49
Eheliyagoda
No 02, Ratnapura Road, Eheliyagoda
(036) 2258031/2
(036) 2258031
eheliyagoda.mgr@sampath.lk
20
Embilipitiya
No 62, Main Street, Embilipitiya
(047) 2261203/4
(047) 2261205
embilipitiya.mgr@sampath.lk
43
Godakawela
No 204, Main Street, Godakawela
(045) 2240617/8/9
(045) 2240619
godakawela.mgr@sampath.lk
225
Kalawana
No 54/B, 54/C, Manana, Kalawana
(045) 2255793/4
(045) 2255795
kalawana.mgr@sampath.lk
Kegalle
No 142, 142A, Kandy Road, Kegalle
(035) 2230597/8
(035) 2230519
kegalle.mgr@sampath.lk
Mawanella
No 209, New Kandy Road, Mawanella
(035) 2246961/2
(035) 2246963
mawanella.mgr@sampath.lk
160
Pelmadulla
No 134, Main Street, Pelmadulla
(045) 2275920/2
(045) 2275922
pelmadulla.mgr@sampath.lk
103
Rambukkana
New Pradeshiya Sabha Building, Rambukkana
(035) 2265641
(035) 2266466
(035) 2266244
rambukkana.mgr@sampath.lk
188
Ratnapura
No 180 82, Main Street, Ratnapura
(045) 2232261/2
(045) 2224361
ratnapura.mgr@sampath.lk
Ruwanwella
No 4, Veyangoda Road, Ruwanwella
(036) 2266971/2
(036) 2266973
ruwanwella.mgr@sampath.lk
201
Warakapola
No 95, Kandy Road, Warakapola
(035) 2267981/2
(035) 2267983
warakapola.mgr@sampath.lk
205
41
64
33
6RXWKHUQ3URYLQFH
Branch Name
Address
Telephone No
Fax No
E-mail
Ahangama
No 71A, Matara Road, Ahangama
(091) 2282902/3
(091) 2282904
ahangama.mgr@sampath.lk
182
Akuressa
No 14/16, Pitabeddara Road, Akuressa
(041) 2284650/1
(041) 2284652
akuressa.mgr@sampath.lk
179
Ambalangoda
No 118 A, New Road, Ambalangoda
(091) 2255571/3
(091) 2255573
ambalangoda.mgr@sampath.lk
72
Ambalantota
No 138 D, Tissa Road, Ambalantota
(047) 2225506/8
(047) 2225508
ambalantota.mgr@sampath.lk
104
Baddegama
No 68, Galle-Baddegama Road,Baddegama
(091) 2293230
(091) 2293231
(091) 2293232
baddegama.mgr@sampath.lk
118
Beliatta
No 53/1, Dickwella Road, Beliatta
(047) 2251551/2
(047) 2251553
beliatta.mgr@sampath.lk
180
Deniyaya
No 69, Main Street, Deniyaya
(041) 2273225
(041) 2273255
(041) 2273255
deniyaya.mgr@sampath.lk
Dickwella
No. 121, Main Street, Dickwella
(041) 2256780/1/2
(041) 2256782
dickwella.mgr@sampath.lk
216
Elpitiya
No 10,, Ambalangoda Road, Elpitiya
(091) 2291961/2
(091) 2291963
elpitiya.mgr@sampath.lk
204
Galle Super
No 05, Wakwella Road, Galle
(091) 2245646/7
(091) 2245645
gallesuper.mgr@sampath.lk
Galle Bazaar
Krishna Building , No:69, Old Matara Road,

Pettigalawatte, Galle
(091) 2248582/3
(091) 2248584
galle_bazaar.mgr@sampath.lk
159
Habaraduwa
No 1270, Lanerolle Super Centre, Matara

Road, Habaraduwa
(091) 2282772/3
(091) 2282774
habaraduwa.mgr@sampath.lk
181
Kamburupitiya
No 48, Mulatiyana Road, Kamburupitiya
(041) 2294701/2
(041) 2294703
kamburupitiya.mgr@sampath.lk
206
Karapitiya
No 598F, Hirimbura Road, Karapitiya
(091) 2248456/7
(091) 2248458
karapitiya.mgr@sampath.lk
141
Matara Super
No 3, Hakmana Road, Matara
(041) 2223260/1
(041) 2223268
matarasuper.mgr@sampath.lk
Matara Bazaar
No 37, New Tangalle Road, Kotuwegoda,

Matara
(041) 2234055/6
(041) 2234057
matara_bazaar.mgr@sampath.lk
120
Branch Code
14
35
10
153
6RXWKHUQ3URYLQFH&RQWG
Branch Name
Address
Telephone No
Fax No
E-mail
Middeniya
Abeysinghe Building, Walasmulla Road,

Middeniya
(047) 2248231/2
(047) 2248233
middeniya.mgr@sampath.lk
Branch Code
158
Morawaka
Ranaweera Building, Akuressa - Deniyaya

Road, Morawaka
(041) 2282310/1
(041) 2282312
morawaka.mgr@sampath.lk
15
Neluwa
Dellawa Road, Main Street, Neluwa
(091) 3783010/11
(091) 5630690
neluwa.mgr@sampath.lk
54
Sooriyawewa
No 6719, Ambalantota Road, Sooriyawewa
(047) 2288155/6
(047) 2288157
sooriyawewa.mgr@sampath.lk
157
Tangalle
No 61, Muhudu Mawatha, Tangalle
(047) 2241865/6
(047) 2241870
tangalle.mgr@sampath.lk
116
Tissamaharama
No 25 27, Main Street, Tissamaharamaya
(047) 2237056
(047) 2237058
(047) 2237058
tissa.mgr@sampath.lk
Weligama
No 253, Matara Road, Weligama
(041) 2253003
(041) 2254002
(041) 2254003
weligama.mgr@sampath.lk
28
209
8YD3URYLQFH
Branch Name
Address
Telephone No
Fax No
E-mail
Badulla
No 14, Dharmadutha Road, Badulla
(055) 2225450/1
(055) 2225452
badulla.mgr@sampath.lk
Branch Code
93
Bandarawela
No 253, 255, Main Street, Bandarawela
(057) 2223720/1
(057) 2223722
bandarawela.mgr@sampath.lk
46
Bibile
No 31, Mahiyangana Road, Bibile
(055) 2265398/9
(055) 2265400
bibile.mgr@sampath.lk
161
Buttala
Madurapperuma Building, Kataragama Road,

Buttala
(055) 2273530/4
(055) 2273537
buttala.mgr@sampath.lk
145
Mahiyangana
No 28, 29, New Town, Mahiyangana
(055) 2258180
(055) 2258181
mahiyangana.mgr@sampath.lk
56
Monaragala
No 75, Pothuwil Road, Monaragala
(055) 2277222
(055) 2277290/1
(055) 2277222
monaragala.mgr@sampath.lk
74
Passara
No 187/1, Badulla Road, Passara
(055) 2288311/2
(055) 2288313
passara.mgr@sampath.lk
Welimada
No 54, Nuwara Eliya Road, Welimada
(057) 2244466/7
(057) 2244468
welimada.mgr@sampath.lk
81
Wellawaya
No 70/D, Kumaradasa Mawatha, Wellawaya
(055) 2274445
(055) 2274419
(055) 2274470
(055) 2274470
wellawaya.mgr@sampath.lk
113
146
:HVWHUQ3URYLQFH
Branch Name
Address
Telephone No
Fax No
E-mail
Aluthgama
No 405, Galle Road, Aluthgama
(034) 2290861/2
(034) 2290863
aluthgama.mgr@sampath.lk
Branch Code
79
Athurugiriya
No 106, Borella Road, Athurugiriya
(011) 2563612
(011) 2156081
(011) 2156080
athurugiriya.mgr@sampath.lk
67
Attidiya
No 202, Main Road, Attidiya
(011) 2725668
(011) 2725668
attidiya.mgr@sampath.lk
89
Avissawella
No 64, Yatiyanthota Road, Avissawella
(036) 2222011/2
(036) 2222010
awissawella.mgr@sampath.lk
22
Bambalapitiya
No 1-01, Majestic City, Station Road,

Bambalapitiya, Colombo 04
(011) 2502686
(011) 2501829
(011) 2501829
bambalapitiya.mgr@sampath.lk
11
Bandaragama
No 61/A, Kalutara Road, Bandaragama
(038) 2289898/9
(038) 2293056
bandaragama.mgr@sampath.lk
59
Battaramulla
No 157, Main Street, Battaramulla
(011) 2861805/6
(011) 2861807
battaramulla.mgr@sampath.lk
Boralesgamuwa
No 192, Kesbewa Road, Boralesgamuwa
(011) 2545245/6
(011) 2545248
boralesgamuwa.mgr@sampath.lk
Borella
No 1022, Maradana Road, Borella,

Colombo 08
(011) 2691121-3
(011) 2687222
(011) 2686066
borella.mgr@sampath.lk
Borella Super
No. 50, Dudley Senanayake Mawatha, Colombo (011) 2695844

- 08
(011) 2695845
(011) 2695846
borellasuper.mgr@sampath.lk
City
No 55, D.R.Wijewardena Mawatha,

Colombo 10
(011) 2328569
(011) 2434431
(011) 2447195
(011) 2434217
city.mgr@sampath.lk
Colombo Super
No 103, Dharmapala Mawatha, Colombo 07
(011) 2336112/3
(011) 2336115
colombosuper.mgr@sampath.lk
61
142
4
218
1
175
121
6WLYH[PVUHS9L]PL^Z
Branch Network
:HVWHUQ3URYLQFH&RQWG
Branch Name
Address
Telephone No
Fax No
E-mail
Branch Code
Dehiwala
No 155, Galle Road, Dehiwala
(011) 2738481
(011) 2738422
(011) 2738461
dehiwala.mgr@sampath.lk
17
Delgoda
No 351/1, New Kandy Road, Delgoda
(011) 2403383/4
(011) 2403385
delgoda.mgr@sampath.lk
202
Divulapitiya
No 69, Kurunegala Road, Divulapitiya
(031) 2243431/13
(031) 2243423
divulapitiya.mgr@sampath.lk
198
Embuldeniya
No 282, Old Kottawa Road, Embuldeniya,

Nugegoda
(011) 2836410/1
(011) 2836412
embuldeniya.mgr@sampath.lk
114
Fort
No 98, Chatham Street, Colombo 01
(011) 2447231/2
(011) 2327379
(011) 2436889
(011) 2421453
fort.mgr@sampath.lk
12
Gampaha
No 8, Mangala Road, Gampaha
(033) 2226640/1
(033) 2222396
(033) 2226642
gampaha.mgr@sampath.lk
16
Gampaha Super
No 150, Colombo Road, Gampaha
(033) 2239771
(033) 2239772
(033) 2239773
gamapahasuper.mgr@sampath.lk
Ganemulla
No 367/E, Kadawatha Road, Ganemulla
(033) 2264630
(033) 2265651
ganemulla.mgr@sampath.lk
Gangodawila
No 374, High Level Road, Gangodawila,

Nugegoda
(011) 2814147/8
(011) 2814149
gangodawila.mgr@sampath.lk
135
Gothatuwa New Town
No 55/4, Kotikawatta Road, Gothatuwa New

Town
(011) 2411609/10
(011) 2411612
gothatuwa.mgr@sampath.lk
173
Grandpass
No 64, Jethawana Road, Colombo 14
(011) 2472390/1
(011) 2472392
grandpass.mgr@sampath.lk
127
Gregorys Road
No 106, Wijerama Mawatha, Colombo 07
(011) 2681144
(011) 2681145
gregorysroad.mgr@sampath.lk
70
Harbour View
No 256, Srimath Ramanathan Mawatha,

Colombo 15
(011) 2393017
(011) 2331070
harbourview.mgr@sampath.lk
58
212
78
Hanwella
No 148/A, Pahala Hanwella, Hanwella
(036) 2254445/6
(036) 2254447
hanwella.mgr@sampath.lk
137
Corporate Branch
No 110, Sir James Peiris Mw, Colombo 02
(011) 4730305/7
(011) 2358358
(011) 5331485
corporate.mgr@sampath.lk
29
Hendala
No 210, Hendala Road, Hendala, Wattala
(011) 2933098
(011) 2931021
(011) 2981644
hendala.mgr@sampath.lk
96
Homagama
No 46, 1st Lane, Station Road, Homagama
(011) 2855975/6
(011) 2855985
homagama.mgr@sampath.lk
69
Horana
No 114, Sri Somananda Mawatha, Horana
(034) 2260345/6
(034) 2260377
horana.mgr@sampath.lk
57
Ingiriya
No 68D, Panadura Road, Ingiriya
(034) 2268288
(034) 2268488
(034) 2268588
ingiriya.mgr@sampath.lk
140
Ja-ela
No 165, Realty Plaza, Negombo Road, Ja-ela
(011) 2245896/7
(011) 2245895
jaela.mgr@sampath.lk
98
Kadawatha
No 174/3, Ragama Road, Kadawatha
(011) 2921001/2/5
(011) 2921001
kadawatha.mgr@sampath.lk
60
Kalutara
No 312/A, Galle Road, Kalutara South, Kalutara
(034) 2235600/1
(034) 2235602
kalutara.mgr@sampath.lk
50
Kandana
No 72, Colombo Road, Kandana
(011) 2229218/9
(011) 2229249
kandana.mgr@sampath.lk
76
Kaduwela
No 510/1 & 510/2, Avissawella Road, Kaduwela (011) 2537539/40
(011) 2537541
kaduwela.mgr@sampath.lk
162
Karagampitiya
No 182/A, Hill Street, Dehiwela
(011) 2710462
(011) 2710472
(011) 2710492
karagampitiya.mgt@sampath.lk
210
Kesbewa
No 76, BandaragamaRoad, Kesbewa
(011)2702177
(011)2702018
(011)2702431
kesbewa.mgr@sampath.lk
224
Keselwatta
No 41A, Galle Road, Keselwatta, Panadura
(038) 2299633
(038) 2299566
(038) 2299550
keselwatta.mgr@sampath.lk
151
Kiribathgoda
No 259, Kandy Road, Dalugama, Kelaniya
(011) 2910457
(011) 2910514
(011) 2910515
kiribathgoda.mgr@sampath.lk
Kiribathgoda Super
No 139, Kandy Road, Kiribathgoda
(011) 2910368/9
(011) 2910367
kiribathgodasuper.mgr@sampath.
lk
Kirindiwela
No 91, Gampaha Road, Kirindiwela
(033) 2247150
(033) 2247150
kirindiwela.mgr@sampath.lk
83
Kirulapone
No 136,138 & 140, High Level Road, Kirulapone (011) 2513828/9
(011) 2513830
kirulapone.mgr@sampath.lk
117
Kochchikade
No 163, Chilaw Road, Kochchikade
(031) 2279647/8
(031) 2279522
kochchikade.mgr@sampath.lk
165
Kohuwala
No 81, S De S Jayasinghe Mawatha, Kohuwala
(011) 2814480
(011) 2814455
(011) 2814480
kohuwala.mgr@sampath.lk
94
Kollupitiya
Ground Floor, Platinum Residencies Building,

No 01, Bagatale Road,
Colombo 03
(011) 2590682/3
(011) 2590684
kollupitiya.mgr@sampath.lk
134
Kotahena
No 165, George R De Silva Mw, Colombo 13
(011) 2384010/1
(011) 2384012
kotahena.mgr@sampath.lk
37
122
5
200
Branch Name
Address
Telephone No
Fax No
E-mail
Kottawa
No 948, High Level Road, Kottawa
(011) 2782684/6
(011) 2782690
(011) 2782684
kottawa.mgr@sampath.lk
Branch Code
52
Pannipitiya
No 568, High Level Road, Pannipitiya
(011) 2783100
(011) 2839298
(011) 2839299
(011) 2839298
pannipitiya.mgr@sampath.lk
87
Maharagama
No 81, High Level Road, Maharagama
(011) 2840950-3
(011) 2851352
maharagama.mgr@sampath.lk
13
Maharagama Super
No 200, High Level Rd, Maharagama
(011) 2160381
(011) 2160380
(011) 2842442
(011) 2842442
maharagamasuper.mgr@sampath.lk
92
Main Street
No 84, Main Street, Colombo 11
(011) 2386732/3
(011) 2386734
mainst.mgr@sampath.lk
42
Makola
No 94/3A, Makola South, Makola
(011) 2964978/9
(011) 2964980
makola.mgr@sampath.lk
207
Malabe
No 895, Athurugiriya Road, Malabe
(011) 2762222/3
(011) 2762224
malabe.mgr@sampath.lk
39
Maligawatte
No 65, Maligawatte Road, Colombo 10
(011) 2672507/8
(011) 2672509
maligawatte.mgr@sampath.lk
191
Maradana
No 657, Kularathne Mawatha, Maradana Road,

Colombo 10
(011) 2678541/2
(011) 2678543
maradana.mgr@sampath.lk
144
Marandagahamula
No 86/A, Mirigama Road, Marandagahamula
(031) 2243515
(031) 2243517
(031) 2243518
maradagahamula.mgr@sampath.lk
183
Mattegoda
No 102/40, Salgas Junction, Mattegoda
(011) 2178444/5
(011) 2178446
mattegoda.mgr@sampath.lk
176
Matugama
No 214 A, Aluthgama Road, Matugama
(034) 2247233/4
(034) 2247235
matugama.mgr@sampath.lk
106
Minuwangoda
No 31/1, Negombo Road, Minuwangoda
(011) 2299131/2
(011) 2299133
minuwangoda.mgr@sampath.lk
65
Mirigama
No 54, Giriulla Road, Mirigama
(033) 2276901/3
(033) 2276903
mirigama.mgr@sampath.lk
86
Moratumulla
No 38, Sri Premarathne Mawatha,Moratumulla
(011) 2654040
(011) 2654075
(011) 2654048
moratumulla.mgr@sampath.lk
155
Moratuwa
No 653, Galle Road, Rawatawatta, Moratuwa
(011) 2644737/8
(011) 2644739
moratuwa.mgr@sampath.lk
Mount Lavinia
No 294, Galle Road, Mount Lavinia
(011) 2719581/7
(011) 2719582
mountlavinia.mgr@sampath.lk
199
31
Mutwal
No 811, Aluthmawatha Road, Colombo 15
(011) 2540575/6
(011) 2540577
mutwal.mgr@sampath.lk
193
Narahenpita
No 475, Elvitigala Mawatha, Colombo - 05
(011) 2552820
(011) 2552821
(011) 2552822
narahenpita.mgr@sampath.lk
40
Nawala
No 143, Nawala Road, Nugegoda
(011) 2812331/2
(011) 2812333
nawala.mgr@sampath.lk
Nawala Koswatta
No 49/A, Nawala Road, Koswatta
(011) 2887862/3
(011) 2887864
nawala_koswatta.mgr@sampath.lk
Nawam Mawatha
No 46/38, Nawam Mawatha, Colombo 02
(011) 2305025/7
(011) 2305028
navam.mgr@sampath.lk
Negombo
No 293, Main Street, Negombo
(031) 2224344/6
(031) 2224347
negombo.mgr@sampath.lk
24
Negombo 02
No 203D, Telwatte Junction, Colombo Road,

Negombo
(031) 2221930/1
(031) 2227282
negombo2.mgr@sampath.lk
88
Nittambuwa
Sri Ramya Building, Kandy Road, Nittambuwa
(033) 2295905/6
(033) 2295907
nittambuwa.mgr@sampath.lk
71
Nugegoda
No 79 A, Stanley Thillekeratne Mw, Nugegoda
(011) 2856907-9
(011) 2816288
(011) 2856908
nugegoda.mgr@sampath.lk
Old Moor Street
No 371, Old Moor Street, Colombo 12
(011) 2452490/2,
(011) 2424075
(011) 2424074
oldmoor.mgr@sampath.lk
Orugodawatte
760 B, Dr Danister de Silva Mawatha,

Colombo 09
(011) 268295/6
(011) 268298
011-2682698
orugodawatte.mgr@sampath.lk
214
Padukka
No 15, Horana Road, Padukka
(011) 2757731/2
(011) 2757733
padukka.mgr@sampath.lk
192
Panadura Super
No 373, Galle Road, Panadura
(038) 2235100
(038) 2235101
panadurasuper.mgr@sampath.lk
26
Panadura - Wekada
No 111B & 111C, Horana Road, Wekada,

Panadura
(038) 2244545
(038) 2244534
(038) 2244457
panadura_wekada.mgr@Sampath.lk
47
Pelawatte
No 452, Pannipitiya Road, Pelawatta,

Battaramulla
(011) 2787209
(011) 2786119
(011) 2786118
pelawatte.mgr@sampath.lk
63
Peliyagoda
No 304, Negombo Road, Peliyagoda
(011) 2940279
(011) 2938797
(011) 2940156
peliyagoda.mgr@sampath.lk
136
Pettah
No 999, Peoples Park, Bodhiraja Mw,

Colombo 11
(011) 2432324
(011) 2432262
(011) 2394596
(011) 2432303
pettah.mgr@sampath.lk
82
223
9
3
27
123
6WLYH[PVUHS9L]PL^Z
Branch Network
Branch Name
Address
Telephone No
Fax No
E-mail
Piliyandala
No 61, Moratuwa Road, Piliyandala
(011) 2614664/5
(011) 2614664
piliyandala.mgr@sampath.lk
Branch Code
19
Pitakotte
No 463, Kotte Road, Pitakotte
(011) 2874574
(011) 2874577
(011) 2874574
pitakotte.mgr@sampath.lk
91
Platinum Plus
No 18, Cambridge Place, Colombo 07
(011) 2695073
(011) 2695237
(011) 2695196
platinumc.mgr@sampath.lk
131
Prince Street
No 25, Prince Street, Colombo 11
(011) 2339860
(011) 2339861
(011) 2339862
(011) 2339862
princestreet.mgr@sampath.lk
217
Ragama
No 44/A/1, Kadawatha Road, Ragama
(011) 2960659
(011) 2960629
(011) 2960659
ragama.mgr@sampath.lk
73
Rajagiriya
No 1596, Kotte Road, Rajagiriya
(011) 2864922
(011) 2864944
(011) 2864988
rajagiriya.mgr@sampath.lk
122
Ratmalana
No 261, Galle Road, Ratmalana
(011) 2730820/1
(011) 2730819
ratmalana.mgr@sampath.lk
18
Seeduwa
499, Negombo Road, Seeduwa
(011) 2253553
(011) 2253554
(011) 2253555
(011) 2253555
seeduwa.mgr@sampath.lk
213
Talahena
No 557, Talangama North, Talangama
(011) 2790457
(011) 2790458
(011) 2790459
talahena.mgr@sampath.lk
211
Thalawathugoda
No 244/4, Pannipitiya Road, Thalawathugoda
(011) 2796670/1
(011) 2796672
thalawathugoda.mgr@sampath.lk
178
Thimbirigasyaya
No 154, Havelock Road, Colombo 05
(011) 2505001/2
(011) 2505003
thimbirigasyaya.mgr@sampath.lk
34
Veyangoda
No 121, Negombo Road, Veyangoda
(033) 2296330
(033) 2293937
(033) 2296330
veyangoda.mgr@sampath.lk
77
Wadduwa
No 555, Galle Road, Wadduwa
(038) 2284960
(038) 2285132
(038) 2284505
wadduwa.mgr@sampath.lk
75
Wattala
No 280, 280/1, Negombo Road, Wattala
(011) 2931569/70
(011) 2941526/7
(011) 2931568
wattala.mgr@sampath.lk
Wellampitiya
No 268, Kolonnawa Road, Wellampitiya
(011) 2533498
(011) 2533498
wellampitiya.mgr@sampath.lk
Wellawatta Super
No 591A, Galle Road, Colombo 06
(011) 2507607/8
(011) 2507609
wellawattesuper.mgr@sampath.lk
World Trade Centre
Unit L03/EB/01, Level 03, East Block, World

Trade Centre, Echelon Square, Colombo 01
(011) 2339863
(011) 2339864
(011) 2339865
(011) 2339865
wtc.mgr@sampath.lk
Yakkala
No 88, Kandy Road, Yakkala
(033) 2232670
(033) 2234230
(033) 4674602
yakkala.mgr@sampath.lk
124
8
45
36
219
68
Nostro
Accounts
G4-06
Country / Name of the Bank &

Address
SWIFT Code
CCY
$XVWUDOLD
NATIONAL AUSTRALIA BANK
800 Bourke Street, Docklands,
Melbourne,
VIC 3008, Australia
NATAAU33
AUD
SCBLBDDX
ACU- DOLLAR
BOFMCAT2
CAD
China
CITI BANK (CHINA) CO LTD
Citigroup Tower,
No 33 Hua Yuan Shi Qiao
Road, Pudong,
Shanghai 200120,China
CITICNSX
CNY
DABADKKK
DKK
*HUPDQ\
DEUTSCHE BANK AG
60262 Frankfurt am Main,
Germany
SCBLHKHH
HKD
BANK OF CEYLON
1090, Poonamallee High Road,
Chennai 600084 India
BCEYIN5M
ACU- DOLLAR
BANK OF CEYLON
1090, Poonamallee High Road,
Chennai 600084 India
BCEYIN5M
ACU- EURO
STANDARD CHARTERED
BANK
Mumbai Main -23/25,
Mahatma Gandhi Road,
Fort, Mumbai 400001 India
SCBLINBB
ACU- DOLLAR
UNICREDIT SPA
Piazza Cordusio,
20123 Milan, MI, Italy
UNCRITMM
EUR
BANCO.POPOLARE SOC
COOP
Piazza Nogara 2,
37121 Verona, VR, Italy
BAPPIT22
EUR
BOTKJPJT
JPY
SCBLJPJT
JPY
STANDARD CHARTERED
BANK (HONG KONG) LTD
PO Box 21, 32/F,
Standard Chartered Bank
Building, 4-4A Des Voeux Road
Central, Hong Kong,
Hong Kong
,WDO\
'HQPDUN
DANSKE BANK A/S
Holmens Kanal 2-12,
1092 Copenhagen,
Hovedstaden, Denmark
CCY
,QGLD
&DQDGD
BANK OF MONTREAL
147 Laird Dr Unit 700,
Toronto, M4G 4K1 Canada,
SWIFT Code
+RQJNRQJ
%DQJODGHVK
STANDARD CHARTERED
BANK
PO Box 420, Dhaka 1000
Bangladesh

Address
DEUTDEFF
EUR
COMMERZ BANK AG
60261, Frankfurt am Main,
Germany
COBADEFF
EUR
UNICREDIT BANK AG
(HYPOVEREINSBANK)
Postfach 100101,
80311 Munich,
Germany
HYVEDEMM
EUR
Japan
BANK OF TOKYO MITSUBISHI
UFJ LTD
2-7-1 Marunouchi,
Chiyoda-ku,
Tokyo 100-8388,
Tokyo, Japan
STANDARD CHARTERED
BANK
PO Box 7, Sanno Park,
Tokyo 100-6155 Japan
125
6WLYH[PVUHS9L]PL^Z
Nostro Accounts

Address
SUMITOMO MITSUI BANKING
CORPORATION
1-1-2, Marunouchi,
Chiyoda-ku,
Tokyo 100-0005,
Tokyo, Japan
SWIFT Code
CCY
SMBCJPJT
JPY
SWIFT Code
CCY
ZKBKCHZZ80A
CHF
BOMLAEAD
AED
EBILAEAD
AED
BANK OF CEYLON (UK) LTD

1 Devonshire Square,
London, EC2M 4WD,
UK
BCEYGB2L
GBP
BARCLAYS BANK PLC

1 Churchill Place,
London, E14 5HP,
UK
BARCGB22
GBP
DEUTSCHE BANK TRUST

COMPANY AMERICAS
60 Wall St,
Mail Stop NYC 60-2710,
New York, NY 10005,
USA
BKTRUS33
USD
CITI BANK NA
111 Wall St, New York,
10005 USA
CITIUS33
USD
HSBC BANK USA NA

452, Fifth Avenue, New York,
NY 10018, USA
MRMDUS33
USD
SGD
CHASUS33DDA
USD
SGD
JP MORGAN CHASE BANK

NA
270 Park Avenue,
New York, NY 10017,
USA
MASHREQ BANK PSC
50, Broadway, Suite 1500,
New York, NY 10004, USA
MSHQUS33
USD
WELLS FARGO BANK NA

375, Park Avenue,
New Youk 10152, USA
PNBPUS3NNYC
USD
6ZLW]HUODQG
ZUERCHER KANTONAL BANK
Bahnhofstrasse 9,
8010 Zrich,
Switzerland
8QLWHG$UDE(PLUDWHV
.RUHD
Kookmin Bank
9-1 Namdaemunno 2-ga,
Jung-Gu, Seoul 100-703,
Korea
CZNBKRSEXXX
USD
BKNZNZ22985
NZD
1HZ=HDODQG
BANK OF NEW ZEALAND
BNZ Harbour Quays,
L5.P1, 60 Waterloo Quay,
Wellington, New Zealand
DNB BANK ASA

Dronning Eufemias gate 30,
0191 Oslo, Oslo, Norway
DNBANOKK
NOK
3DNLVWDQ
STANDARD CHARTERED
BANK (PAKISTAN) LTD
PO Box 5556,
I.I Chundrigar Road,
Karachi 74000, Sindh
Pakistan
SCBLPKKX
ACU- DOLLAR
FIRNZAJJ
ZAR
6LQJDSRUH
UNITED OVERSEAS BANK
LTD
<6)7SHaH9HMLZ7SHJL
Singapore 048624
UOVBSGSG
OVERSEA CHINESE BANKING

CORP LTD
65 Chulia Street,
# 26-00, OCBC Centre,
Singapore 049513,
Singapore
OCBCSGSG
6ZHGHQ
SKANDINAVISKA
ENSKILDA BANKEN AB
Kungstrdgrdsgatan 8,
10640 Stockholm,
Sweden
EMIRATES NBD PJSC

PO Box 777,
Dubai City, UAE
8QLWHG6WDWHVRI$PHULFD
6RXWK$IULFD
FIRSTRAND BANK LTD
Alexandra Plaza,
3rd St, Alexandra,
Johannesburg South Africa
MASHREQ BANK PSC

PO Box 1250,
Omer Bin Al Khattab Street,
Deira, Dubai City,
UAE
8QLWHG.LQJGRP
1RUZD\
126

Address
ESSESESS
SEK
Correspondent
Banks and
Exchange
Companies
230
Correspondent
Banks
103
Exchange
Companies
Country

SWIFT Code
$XVWUDOLD
Country

Australia and New Zealand Banking Group Ltd
SWIFT Code
%DQJODGHVK
ANZBAU2S
Dhaka Bank Ltd
DHBLBDDH
Citigroup Pty Ltd Sydney
CITIAU2X
SCBLBDDX
JP Morgan Chase Bank NA
CHASAU2X

National Australia Bank Ltd
NATAAU33
Commerzbank AG
COBABEBX
ING Belgium NV/SA
BBRUBEBB
KREDBEBB
Austria
%HOJLXP
Raiffeisenlandesbank
RVVGAT2B
KBC Bank NV
Unicredit Bank Austria AG
BKAUATWW

Citibank Europe PLC
CITIIE2X
Deutsche Bank SA

%DKUDLQ
Mashreq Bank

PSC
BOMLBHBM
%UD]LO
DEUTBRSP
%XOJDULD
UnicreditBulbank AD
UNCRBGSF
127
6WLYH[PVUHS9L]PL^Z
Correspondent Banks and Exchange Companies
Country

SWIFT Code
&DQDGD
Country
16
SWIFT Code
France
The Bank of Montreal
BOFMCAT2
BNP Paribas SA
HSBC Bank Canada
HKBCCATT
Union de BanquesArabes et Francaises (UBAF)
UBAFFRPP
Royal Bank of Canada
ROYCCAT2
Deutsche Bank AG
DEUTFRPP
Bank of Nova Scotia
NOSCCATT
Commerzebank AG
COBAFRPX
Credit Lyonnais
CRLYFRPP

&KLOH
BNPAFRPP
Banco del Estado de Chile
BECHCLRM
*HUPDQ\
Banco de Chile
CITICLRS
Unicredit Bank AG (Hypovereinsbank)
HYVEDEMM
Commerzbank AG
COBADEFF
Deutsche Bank AG
DEUTDEMM
DNB Bank ASA
DNBADEHX
10
China
Industrial and Commercial

Bank of China
ICBKCNBJ
Bank of China
BKCHCNBJ
Citibank (China) Co Ltd
CITICNSX
Commerzbank AG
COBACNSX
Deutsche Bank (China) Co Ltd
DEUTCNSH
HSBC Bank (China) Co Ltd
HSBCCNSH
JP Morgan Chase Bank

(China) Co Ltd
CHASCNSH

(China) Ltd
SCBLCNSX
Wells Fargo Bank NA
PNBPCNSH
&\SUXV
Societe Generale Cyprus Ltd
SOGECY2N
&]HFK5HSXEOLF
Commerzbank AG
COBACZPX
Unicredit Bank Czech Republic And Slovakia

AS
BACXCZPP
18
Greece
National Bank of Greece SA
ETHNGRAA
+RQJ.RQJ
BNP Paribas
BNPAHKHH
Citibank NA
CITIHKHX
Commerzbank AG
COBAHKHX
Deutsche Bank AG
DEUTHKHH
Hongkong & Shanghai Banking Corporation Ltd
HSBCHKHH
CHASHKHH
Standard Chartered Bank (Hong Kong) Ltd
SCBLHKHH
UBAF (Hong Kong) Ltd
UBAFHKHX
Wells Fargo Bank NA
PNBPHKHH
Shinhan Bank
SHBKHKHX
Bank of America N A
BOFAHKHX
Woori Bank Hong Kong
HVBKHKHH
+XQJDU\
'HQPDUN
Danske Bank A/S
DABADKKK
CIB Bank Ltd
CIBHHUHB
DNB Bank ASA
DNBADKKX
Commerzbank Budapest RT
COBAHUHX
Nordea Bank Denmark A/S
NDEADKKK
,QGLD
(J\SW
Bank of Ceylon
BCEYIN5M
Arab International Bank
ARIBEGCX
Citibank NA
CITIINBX
Mashreq Bank
MSHQEGCA
Deutsche Bank AG
DEUTINBB
The Hongkong& Shanghai Banking Corporation

Ltd
HSBCINBB
ICICI Bank Ltd
ICICINBBCTS
Mashreq Bank
MSHQINBB
SCBLINBB
State Bank of India
SBININBB

)LQODQG
Nordea Bank Finland PLC
NDEAFIHH
Danske Bank
DABAFIHX
DNB Bank ASA
DNBAFIHX
SkandinAvinska Enskilda Banken
ESSEFIHX
128
Country
SWIFT Code
Country
SWIFT Code
AxisBankTradeFinance Ctr
AXISINBBTFC
Wells Fargo Bank NA
PNBPJPJX
Karur Vysya Bank Ltd
KVBLINBB
Okazaki Shinkin Bank
OKSBJPJZ
Punjab National Bank
PUNBINBB
Sumitomo Mitsui Banking Corp, Osaka
SMBCJPJTOSA
Indian Bank
IDIBINBB
Resona Bank Ltd
DIWAJPJT
Tamilnad Mercantile Bank LTD
TMBLINBB
Saitama Resona Bank
SAIBJPJT
HDFC Bank Ltd
HDFCINBB
Yokohama Shinkin Bank
YOKOJPJM
,QGRQHVLD
.XZDLW
Citibank NA
CITIIDJX
Citibank NA
CITIKWKW
Deutsche Bank AG
DEUTIDJA
National Bank of Kuwait
NBOKKWKW
The Hongkong and Shanghai Banking

Corporation Ltd
HSBCIDJA
0DOD\VLD
Bank Mandiri (Persero) PT
BMRIIDJA
SCBLIDJX
Bank Negara Indonesia PT

Persero
BNINIDJA
,UHODQG
Citibank Berhad
CITIMYKL
Deutsche Bank (Malaysia) Bhd
DEUTMYKL
HSBC Bank Malaysia Berhad
HBMBMYKL
Standard Chartered Bank Malaysia Bhd
SCBLMYKX
Malayan Banking Berhad
MBBEMYKL
Bank of Ireland
BOFIIE2D
29
Citibank Europe PLC
CITIIE2X
Mauritius Commercial Bank Ltd
MCBLMUMU
Barclays Bank Mauritius Ltd
BARCMUMU
Banco Santander Mexicano
BMSXMXMM
,VUDHO
Bank Leumi le Israel BM
LUMIILIT
Mauritius
0DOGLYHV
,WDO\
Bank of Ceylon
BCEYMVMV
Bank of Maldives PLC
MALBMVMV
BancaNazionale del LavoroSPA
BNLIITRR
Banca UBAE SPA
UBAIITRR
Commerzbank AG
COBAITMM
1HSDO
UnicreditSPA
UNCRITMM
Standard Chartered Bank Nepal Ltd
BancaPopolareSoc Coop
BAPPIT22
1HWKHUODQGV
26
Japan
Australia and New Zealand Banking Group

Ltd
ANZBJPJX
Citibank Japan Ltd
CITIJPJT
Commerzbank AG, Tokyo
COBAJPJX
Deutsche Bank AG
DEUTJPJT
The Hongkong and Shanghai Banking

Corporation Ltd
HSBCJPJT
SCBLNPKA
Commerzbank AG
COBANL2X
Deutsche Bank AG
DEUTNL2A
ING Bank NV
INGBNL2A
1HZ=HDODQG
ANZ Bank New Zealand Ltd
ANZBNZ22
Bank of New Zealand
BKNZNZ22
Citibank NA
CITINZ2X
SCBLJPJT
The Hongkong& Shanghai Banking Corporation Ltd
HSBCNZ2A
Mizuho Bank Ltd
MHCBJPJT
1RUZD\
Sumitomo Mitsui Banking Corporation
SMBCJPJT
DNB Bank ASA
DNBANOKK
The Bank of Tokyo

Mitsubishi UFJ Ltd
BOTKJPJT
Nordea Bank Norge ASA
NDEANOKK
ScandinAviska Enskilda Banken
ESSENOKX
CHASJPJT
129
6WLYH[PVUHS9L]PL^Z
Country
SWIFT Code
Country
SWIFT Code
2PDQ
Union de BanquesArabes et Francaises (UBAF)
UBAFSGSX
HSBC Bank Oman S.A.O.G
BBMEOMRX
United Overseas Bank Ltd
UOVBSGSG
SCBLOMRX
6RXWK$IULFD

3DNLVWDQ
SCB Pakistan Ltd
SCBLPKKX
3KLOLSSLQHV
ABSA Bank Ltd
ABSAZAJJ
FirstRand Bank Ltd
FIRNZAJJ
Ned Bank Ltd
NEDSZAJJ
Citibank NA
CITIPHMX
6RXWK.RUHD
Deutsche Bank AG
DEUTPHMM
Citibank Korea Inc
CITIKRSX
The Hongkong & Shanghai Banking

Corporation Ltd
HSBCPHMM
Deutsche Bank AG
DEUTKRSE
The Hongkong & Shanghai Banking Corporation HSBCKRSE

Ltd
3RODQG
Bank Handlowy w Warszawie SA
CITIPLPX
Pko Bank Polski SA
NDEAPLP2
Standard Chartered Bank Korea Ltd
SCBLKRSE
Union de BanquesArabes ET Francaises

(UBAF)
UBAFKRSX
Wells Fargo Bank NA
PNBPKRSX
3RUWXJDO
BNP Paribas Sucursal EM Portugal
BNPAPTPL
4DWDU
CHASKRSX
Kookmin Bank
CZNBKRSE
HSBC Bank Middle East Ltd
BBMEQAQX
Industrial Bank of Korea
IBKOKRSE
Mashreq Bank
MSHQQAQA
Korea Exchange Bank
KOEXKRSE
5RPDQLD
Banca Comerciala Romana SA
RNCBROBU
6DXGL$UDELD
Shinhan Bank
SHBKKRSE
Woori Bank
HVBKKRSE
6SDLQ
Saudi Hollandi Bank
AAALSARI
Banco Bilbao VizcayaArgentaria SA
BBVAESMM
The National Commercial Bank
NCBKSAJE
Banco Santander SA
BSCHESMM
The Saudi British Bank
SABBSARI
Commerzbank AG
COBAESMX
Al Ra jhi Bank
RJHISARI
6ZHGHQ
Al Inma Bank
INMASARI
Danske Bank
DABASESX
Skandinaviska Enskilda Banken
ESSESESG
Svenska Handelsbanken
HANDSESS
6LQJDSRUH
The Bank of Tokyo- Mitsubishi
UFJ Ltd
BOTKSGSX
Citibank NA
CITISGSG
Commerzbank AG
COBASGSX
DBS Bank Ltd
DBSSSGSG
Deutsche Bank AG
DEUTSGSG
The Hongkong & Shanghai Banking Corporation HSBCSGSG

Ltd
6ZLW]HUODQG
Credit Suisse AG
CRESCHZZ
7DLZDQ
Citibank Taiwan Ltd
CITITWTX
Deutsche Bank AG
DEUTTWTP
HSBC Bank (Taiwan) Ltd
HSBCTWTP
CHASSGSG
CHASTWTX
Mizuho Bank Ltd
MHCBSGSG
Mizuho Bank Ltd
MHCBTWTP
Oversea-Chinese Banking Corporation Ltd
OCBCSGSG
Standard Chartered Bank (Taiwan) Ltd
SCBLTWTP
SCBLSGSG
Wells Fargo Bank NA
PNBPTWTP
130
Country
SWIFT Code
7KDLODQG
Country
SWIFT Code
8QLWHG.LQJGRP
Citi Bank NA
CITITHBX
Bank of Ceylon(UK) Ltd
BCEYGB2L
Deutsche Bank AG
DEUTTHBK
Barclays Bank PLC
BARCGB22
The Hongkong & Shanghai Banking

Corporation Ltd
HSBCTHBK
Citibank NA
CITIGB2L
HSBC Bank PLC
MIDLGB22
Kasikornbank Public Company Ltd
KASITHBK
CHASGB2L
Standard Chartered Bank (Thai) PCL
SCBLTHBX
Indian Overseas Bank Ltd
BHOBTHBK
Export Import Bank of Thailand
EXTHTHBK
Bank of Ayudhya Public co ltd
AYUDTHBK
Siam Commercial Bank PCL
SICOTHBK
7XUNH\
HSBC Bank AS
HSBCTRIX
Turk EkonomiBankasi AS
TEBUTRIS
ING BANK AS
INGBTRIS
Asya Katilim Bankasi AS
ASYATRIS
8QLWHG$UDE(PLUDWHV
SCBLGB2L
Wells Fargo Bank NA
PNBPGB2L
8QLWHG6WDWHVRI$PHULFD
Citibank NA
CITIUS33
Deutsche Bank AG
DEUTUS33
Deutsche Bank Trust Company Americas
BKTRUS33
HSBC Bank USA NA
MRMDUS33
CHASUS33
MashreqBank PSC
MSHQUS33
SCBLUS33
Wells Fargo Bank NA
PNBPUS3NNYC
Citibank NA
CITIAEAD
Bank of America NA
BOFAUS3M
HSBC Bank Middle East Ltd
BBMEAEAD
Bank of New York Mellon
IRVTUS3N
MashreqBank PSC
BOMLAEAD
Wells Fargo Bank NA
PNBPUS33
SCBLAEAD
Wells Fargo Bank NA
PNBPUS33PHL
Habib Bank AG Zurich
HBZUAEAD
9LHWQDP
Emirates NBD bank PJSC
EBILAEAD
Country
Name of Exchange Company
Citi Bank NA
Country

Turbo Cash
Colombo Money Transfer

HCH Holdings
Travelex Bahrain WLL

Kingdom of Bahrain
Kapruka PTY LTD
Lulu International Exchange B S C Bahrain
Lanka Currency Converter
Bahrain Finance Company CO WLL
Loga International PTY LTD
H S Communication
Canada
G S Cash Line
Remittance Plus
Australia
CITIVNVX
Sri Cash Remittance
Sigue Money Transfer

Cyprus
T S S World Wide Money Transfer PTY LTD
Masari Payment Services LTD
Trans Cash International
ARY Speed Remit
National Finance & Exchange Co
Wall Street Exchange
Aust Forex & Finance
UAE
Habib Exchange
Foreign Exchange Central
UAE Exchange
PNG Lanka Management Services
Leela Megh Exchange
131
6WLYH[PVUHS9L]PL^Z
Country
Country
Emirates India International Exchange
City Exchange
Al Rostamani International Exchange
Islamic Exchange
Al Ahalia Exchange
Al Zaman Exchange
Al Ansari Exchange
Lari Exchange
U Remit International
Gulf Exchange
Lulu Exchange
Al Mana Exchange Co WLL
Sharaf Exchange
Prabhu Group INC
UAE
Al Dar For Exchange Works

Qatar
Habib Qatar
Trans Fast Remittance LLC
Doha Exchange
Al Hamed Exchange
Travelex Qatar
Mawrid Exchange
Al Mirqab
Alfalah Exchange
Al Jazeera Exchange Qatar
Multinet Trust Exchange LLC
Eastern Exchange
Arab Link
National Exchange CO WLL Qatar
Joalukkas - UAE
Al Raji E pay
Progoti Exchange Company
Tahweel KSA
Instant Cash
Italy
Alinma Bank
Saudi Arabia
Arab National Bank
NEC Money Transfer SA Spain
Samba Bank
Al Falah Exchange
Spain
ARY Speed Remit

Al Awneh Exchange
Bahrain Finance Company Co.WLL (EZ

Remit)
Bahrain Exchange Company WLL
Dollarco Exchange
Aman Exchange
Joalukkas - Kuwait
IME (M) SDN BHD
Malaysia
Prabhu Group INC
New Zealand
Kapruka New Zealand

Oman & UAE Exchange Centre
Oman
Travelex Oman
Purshottam Kanji Exchange
Al Jadeed Exchange
Qatar
132
Doha Bank
Al Fardan Exchange
Money Exchange SA
NEC Money Transfer SA Spain
H S Communication
United Kingdom
Al Mulla Exchange
Kuwait
Enjaz Bank Al Bilad
Nero Transfer LTD
National Exchange Company
Jordan
Al Saad Exchange Co WLL
Delma Exchange
GCC Exchange UK Limited
Israel
Thilina Sri Lanka

Aftab Currency Exchange Limited
Korea
Kookmin Bank
USA
Xoon Corporation
France
Tempo France
6DPSDWK%DQN3/&DOVRDFWVDVDQDJHQWRI
IROORZLQJ*OREDO&RPSDQLHV
Moneygram International
Sigue Money Transfer
Xpress Money
Ez-Remit
Instant Cash Global Money Transfer
Ria Financial Services
Prabhu Group INC
Placid Express
Investor
Information
9DOXH&UHDWLRQIRU6KDUHKROGHUV
,QIRUPDWLRQRQ1HW$VVHWV*URXS(DUQLQJV'LYLGHQGDQG0DUNHW3ULFH
2015
2014
Change %
203.85
179.39
13.64
Group earnings per share - Basic (Rs)
38.44
30.55
25.83
13.00
11.00
18.18
248.00
236.30
4.95
Net assets per share (Rs)
Market price per share as at 31st December
G4-09
Banks Market Capitalisation Rank
Earnings and Highest

Market Price per Share
Dividend per Share

Rs
Rs
50
15
9
13
30
10
20
6
5
180
120
10
60
0
2012
2015
2014
2013
2015
2014
2013
2012
2012
240
2015
15
242
216
38.4
11
30.6
40
12
2014
12
300
252
21.7
17
32.6
16
280
13
2013
15
20
Rs
Earnings per Share - Group

Highest Market Price per Share - Bank
%DQNV0DUNHW&DSLWDOLVDWLRQLQ&RPSDULVRQWR&6(DVDWVW'HFHPEHU
Sampath Bank market capitalisation (Rs Mn)

Increase / (decrease) % in market capitalisation
CSE market capitalisation (Rs Mn)
As a % of CSE market capitalisation
Market capitalisation rank
2015
2014
2013
2012
2011
42,734
39,677
28,843
32,628
30,587
8%
38%
(12%)
7%
(26%)
2,938,000
3,104,860
2,459,900
2,167,581
2,213,873
1.45%
1.28%
1.17%
1.50%
1.38%
15
17
16
13
16
133
6WLYH[PVUHS9L]PL^Z
Investor Information
Shareholders Fund
Composition of
Share Ownership - 2015
(No of Shareholders)
Rs Mn
Banks ROE and

Market Interest Rates
%
25
40,000
22.3
5.0
35,125
4.7
20
18.4
16.4
39.2
7.2
6.6
9.1
13.1
10.6
2013
6.7
11.1
12.0
10
15,000
10,000
12.9
15
51.1
2012
20,000
25,644
25,000
28,418
30,000
30,912
35,000
5,000
More than 10,000 Shares
5HVLGHQW1RQ5HVLGHQW
31st December 2015
31st December 2014
No of
Shareholders
No of
Shares
No of
Shareholders
No of
Shares
17,177
141,053,133
81.86
17,364
138,232,554
82.33
338
31,259,522
18.14
324
29,677,699
17.67
17,515
172,312,655
100.00
17,688
167,910,253
100.00
Resident shareholders
Non resident shareholders
,QGLYLGXDOV,QVWLWXWLRQV
Average of 12 Months AWFDR

Average of 12 Months T.B. Rate
ROE
Shares 5,001-10,000
$QDO\VLVRI6KDUHKROGHUV
2015
2015
2014
2013
2012
Shares 500 & Less

Shares 501-5,000
2014
31st December 2015
31st December 2014
No of
Shareholders
No of
Shares
No of
Shareholders
No of
Shares
Individuals
16,933
58,173,217
33.76
17,152
59,630,792
35.51
Institutions
582
114,139,438
66.24
536
108,279,461
64.49
17,515
172,312,655
100.00
17,688
167,910,253
100.00
134
&RPSRVLWLRQRI6KDUH2ZQHUVKLS
31st December 2015
31st December 2014
No of
Shareholders
No of
Shares
No of
Shareholders
No of
Shares
Shares 500 & less
8,947
51.08
1,701,151
0.98
8,725
49.33
1,697,166
1.01
Shares 501-5,000
6,861
39.17
11,125,275
6.46
7,198
40.69
12,253,292
7.30
Shares 5,001-10,000
820
4.68
5,755,486
3.34
878
4.96
6,154,091
3.66
More than 10,000 shares
887
5.07
153,730,743
89.22
887
5.02
147,805,704
88.03
17,515
100.00
172,312,655
100.00
17,688
100.00
167,910,253
100.00
Banks Market
Capitalisation
Composition of
Share Ownership - 2015
(No of Shares)
Rs Mn
Share Trading - Sampath Bank PLC

No of Shares Traded
Mn
%
50,000
1.0
48
50
6.5
3.3
42,734
29
28
27
2015
39,677
30
2014
20,000
40
28,843
30,000
32,628
40,000
20
10,000
10
89.2
0
Shares 5,001-10,000
2013
Shares 500 & Less

Shares 501-5,000
2012
2015
2014
2013
2012
More than 10,000 Shares
6KDUH7UDGLQJ
0DUNHW
No of transactions
No of shares traded
Value of shares traded (Rs Mn)
2015
2014
2013
2012
2011
1,506,790
1,982,709
1,421,303
1,857,384
4,579,352
9,414,661,048
16,721,524,209
9,054,193,822
9,691,236,634
24,543,700,782
253,251
340,917
200,468
213,827
546,255
135
6WLYH[PVUHS9L]PL^Z
%DQN
2015
No of transactions
No of shares traded
2014
2013
2012
2011
14,460
18,403
19,212
13,473
15,335
26,898,512
27,712,319
47,891,453
28,871,254
26,951,903
As a % of total shares in issue
15.61
16.50
28.54
17.74
17.18
Average daily turnover (Rs Mn)
29.22
24.34
39.75
22.55
30.23
Value of shares traded (Rs Mn)
6,982.39
5,866.37
9,620.18
5,457.94
7,225.70
2015
2014
2013
2012
2011
Lowest market price (Rs)
235.20
164.20
161.60
148.50
191.00
Highest market price (Rs)
279.90
252.00
242.00
216.00
307.00
Closing Price as at
31st December (Rs)
248.00
236.30
171.90
200.50
195.00
6DPSDWK%DQNV6KDUH3ULFH)OXFWXDWLRQ
Shareholding of
Individuals and Institutions
Gross Dividend
Rs Mn
65
64
66
36
34
2014
2015
2,240.0
35
1,000
1,847.0
1,342.6
1,500
1,954.1
2,000
2013
100
2,500
93
80
60
40
20
0
2012
2015
2014
2013
2012
500
Individuals
136
Institutions
Banks Share Price

Fluctuation
Share Trading - Sampath Bank PLC
Rs
300
2,000
279.9
20
252.0
242.0
250
16
1,500
216.0
12
235.2
200
1,000
8
150
161.6
500
164.2
148.5
Turnover (Rs Mn)
6DPSDWK%DQN3/&2UGLQDU\6KDUHV
Dec 15
Dec 14
Dec 13
Dec 11
Lowest Market Price

Highest Market Price
Closing Price as at 31st December
Dec 12
2015
2014
2013
2012
100
Volume Traded (No Mn)
Frequency Distribution of Shareholders as at 31st December 2015
0.2045
6,356
0.0037
4,798
27.39
358,709
No of Shares
No of Shareholders
0.39
Total
69
No of Shares
352,353
No of Shareholders
27.00
Non-Resident
4,729
No of Shares
1-250
No of Shareholders
Share Range
Resident
0.2082
251-500
4,102
23.42
1,326,478
0.7698
47
0.27
15,964
0.0093
4,149
23.69
1,342,442
0.7791
501-1,000
2,789
15.92
1,924,988
1.1171
46
0.26
32,629
0.0189
2,835
16.18
1,957,617
1.1361
1,001-2,000
2,105
12.02
3,035,952
1.7619
43
0.25
60,417
0.0351
2,148
12.27
3,096,369
1.7969
2,001-5,000
1,834
10.47
5,929,673
3.4412
44
0.25
141,616
0.0822
1,878
10.72
6,071,289
3.5234
5,001-10,000
795
4.54
5,594,167
3.2465
25
0.14
161,319
0.0936
820
4.68
5,755,486
3.3401
10,001-20,000
434
2.48
6,031,333
3.5002
21
0.12
309,470
0.1796
455
2.60
6,340,803
3.6798
20,001-30,000
149
0.85
3,571,982
2.0730
0.05
223,732
0.1298
158
0.90
3,795,714
2.2028
30,001-40,000
63
0.36
2,175,926
1.2628
0.02
145,909
0.0847
67
0.38
2,321,835
1.3475
40,001-50,000
26
0.15
1,176,825
0.6830
0.01
85,708
0.0497
28
0.16
1,262,533
0.7327
50,001-100,000
71
0.41
4,853,141
2.8165
0.03
308,302
0.1789
76
0.44
5,161,443
2.9954
100,001-1,000,000
69
0.39
20,740,479
12.0365
15
0.09
6,005,207
3.4851
84
0.48
26,745,686
15.5216
1,000,001-over
11
0.06
84,339,836
48.9458
0.05
23,762,893
13.7906
19
0.11
108,102,729
62.7364
17,177
98.07
141,053,133
81.8588
338
1.93
31,259,522
18.1412
17,515
100.00
172,312,655
100.0000
Total
137
6WLYH[PVUHS9L]PL^Z
6DPSDWK%DQN3/&2UGLQDU\6KDUHV
Top 20 Shareholders as at 31st December 2015
No
Shareholder Name
31st December 2015

No of Shares
31st December 2014*
Ratio (%)
No of Shares
Ratio (%)
VALLIBEL ONE PLC
25,765,740
14.95
25,107,454
14.95
MR Y S H I SILVA
17,194,764
9.98
16,750,207
9.98
EMPLOYEES PROVIDENT FUND
17,184,045
9.97
16,745,012
9.97
ROSEWOOD (PVT) LIMITED-ACCOUNT NO 1
11,697,866
6.79
11,789,746
7.02
HSBC INTL NOM LTD-BBH-MATTHEWS INTERNATIONAL FUNDSMATTHEWS ASIA GROWTH FUND
7,897,235
4.58
7,166,493
4.27
HSBC INTL NOM LTD-STATE STREET LUXEMBOURG C/O SSBT-ABN AMRO

MULTI-MANAGER FUNDS
4,490,278
2.61
4,375,557
2.60
NORTHERN TRUST CO S/A CARAVEL FUND ( INTERNATIONAL ) LTD
3,890,000
2.26
5,536,155
3.30
SAMPATH BANK PLC ACCOUNT NO 04 (SAMPATH BANK PENSION FUND)
2,806,857
1.63
2,735,145
1.63
HSBC INTL NOM LTD-BBH-MATTHEWS EMERGING ASIA FUND
2,483,749
1.44
1,938,144
1.15
10
AKBAR BROTHERS PVT LTD A/C NO 1
2,166,038
1.26
1,555,914
0.93
11
MR B A MAHIPALA
1,707,215
0.99
1,663,598
0.99
12
EMPLOYEES TRUST FUND BOARD
1,595,032
0.93
4,268,091
2.54
13
SRI LANKA INSURANCE CORPORATION LTD-LIFE FUND
1,595,024
0.93
287,487
0.17
14
KEYSTONE (PRIVATE) LIMITED
1,473,738
0.86
1,436,086
0.86
15
MELLON BANK N A-UPS GROUP TRUST
1,395,502
0.81
1,359,849
0.81
16
HINL-JPMCB-BUTTERFIELD TRUST (BERMUDA) LIMITED
1,345,690
0.78
1,311,310
0.78
17
NORTHERN TRUST COMPANY S/A ASHMORE EMERGING MARKETS

FRONTIER EQUITY FUND
1,220,958
0.71
166,389
0.10
18
NATIONAL SAVINGS BANK
1,153,517
0.67
19
CITIBANK NEW YORK S/A NORGES BANK ACCOUNT 2
1,039,481
0.60
20
NORTHERN TRUST GLOBAL SERVICES ASHMORE SICAV EMERGING

MARKETS FRONTIER EQUITY FUND A SUB FUND OF ASHMORE SICAV
920,352
0.53
464,957
0.28
109,023,081
63.28
104,657,594
62.33
172,312,655
100.00
167,910,253
100.00
172,312,655
100.00
167,910,253
100.00
Shares held by Directors **
105,250
0.06
102,563
0.06
Shares held by Institutions
114,139,438
66.24
108,279,461
64.49
Total No of shares registered

Total No of shares unregistered
Total No of shares issued
Balance held by Public
58,067,967
33.70
59,528,229
35.45
172,312,655
100.00
167,910,253
100.00
% Shares held by Public
83.33
83.31
% Shares held by Directors and Related Parties
16.67
16.69
Total No of shares issued
* Shareholding as at 31st December 2014 of the top twenty shareholders as at 31st December 2015.
** Mr Dhammika Perera is the Chairman of Vallibel One PLC as well as Sampath Bank PLC, total shares held by Vallibel One PLC is categorised
under institutions.
138
'LYLGHQG3D\PHQW'HWDLOV
Year
Total Dividend Paid

Rs Mn
Dividend per Share

Rs
7YV[MVY[OL@LHY
Rs Mn
Dividend Payout
Ratio
2000
58.70
1.75
402
14.60%
2001
52.14
1.75
322
16.19%
2002
88.57
2.00
441
20.08%
2003 (Interim)
59.78
2003 (Final)
21.99
2.00
561
14.58%
2004 (Interim)
65.98
2004 (Final)
34.30
2.00
621
16.15%
2005 (Interim)
87.14
2005 (Final)
32.21
2.00
821
14.54%
2006
155.47
2.50
1,028
15.12%
2007
206.66
3.00
1,052
19.64%
2008
256.65
4.00
1,414
18.15%
2009
436.19
6.25
2,098
20.79%
2010
1,235.86
8.09
3,303
37.42%
2011
1,426.98
9.00
3,819
37.37%
2012
1,954.10
12.00
5,230
37.36%
2013
1,342.63
8.00
3,430
39.13%
2014
1,847.01
11.00
4,914
37.59%
2015 (Proposed)
2,240.06
13.00
6,134
36.52%
5HFRUGRI6FULS,VVXHV
Capitalized Year Issue

2010
Interim Scrip dividend for 2010
2011

Basis New No of Shares Stated Capital Reason for Issue
(Rs Mn)
1 for 120.74
627,596
1,786.25 Increase stated capital
Final Scrip dividend for 2010
1 for 43.39
3,521,294
2012
1 for 43.06
3,682,039
2013
1 for 33.12
4,916,007
2015
1 for 38.14
4,402,402
2016 (Proposed)
1 for 36.91
4,668,414
139
6WLYH[PVUHS9L]PL^Z
5HFRUGRI6XEGLYLVLRQV
Year
Issue
2010
Consolidation and subdivision
2010
Subdivision
(PSOR\HH6KDUH2SWLRQ3ODQ

Basis
New No of
Shares
11 for 10
6,888,762
1 for 1
76,403,986
Stated Capital Reason for Issue

(Rs Mn)
1,581.65 Increase in liquidity
1,786.25 .PM[ILUL[[VZOHYLOVSKLYZ
Year
Issue
Basis
New No of
Shares
2011
ESOP
2% of issued shares
524,924
2,743.78 )LUL[MVYZ[HMMTLTILYZ
2012
ESOP
2% of issued shares
2,200,436
2013
ESOP
2% of issued shares
134,933
2014
ESOP
2% of issued shares
122,648
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Debentures - 2012/2017
Highest (Rs)
Stated Capital Reason for Issue

(Rs Mn)
Lowest (Rs)
Year End (Rs)
2015
2014
2015
2014
2015
2014
Fixed - 16.5%
110.00
114.32
100.00
100.00
107.00
114.32
Fixed - 15.0%
121.00
108.13
106.00
100.10
106.00
107.00
NT
100.00
NT
100.00
NT
100.00
Floating rate
NT - Not Traded
Highest (Rs)
Lowest (Rs)
Year End (Rs)
2015
2014
2015
2014
2015
2014
Fixed - 13.4%
NT
110.02
NT
102.80
NT
110.02
Fixed - 13.0%
107.85
118.84
107.85
101.00
107.85
118.84
NT - Not Traded
140
'HEHQWXUH,QIRUPDWLRQ&RQWG
Highest (Rs)
Lowest (Rs)
Year End (Rs)
2015
2014
2015
2014
2015
2014
Fixed - 8.25%
100.95
100.40
94.66
100.40
94.66
100.40
Fixed - 8.10%
94.08
100.00
94.08
100.00
94.08
100.00
Highest (Rs)
Fixed - 9.90%
Floating
NA - Not Applicable
%
Lowest (Rs)
Year End (Rs)
2015
2014
2015
2014
2015
2014
99.87
NA
99.87
NA
99.87
NA
NT
NA
NT
NA
NT
NA
NT - Not Traded
,QWHUHVW5DWHV
2015
2014
Coupon Rate
Effective Rate
Coupon Rate
Effective Rate
Fixed - 16.5%
16.50%
16.50%
16.50%
16.50%
Fixed - 15.0%
15.00%
16.08%
15.00%
16.08%
Floating rate
* Floating rate is equivalent to the six month treasury bill rate (gross) plus 2.0 % p.a. payable half yearly
2015
2014
Coupon Rate
Effective Rate
Coupon Rate
Effective Rate
Fixed - 13.4%
13.40%
13.40%
13.40%
13.40%
Fixed - 13.0%
13.00%
13.42%
13.00%
13.42%
2015
2014
Coupon Rate
Effective Rate
Coupon Rate
Effective Rate
Fixed - 8.25%
8.25%
8.25%
8.25%
8.25%
Fixed - 8.10%
8.10%
8.26%
8.10%
8.26%
Fixed - 9.90%
Floating
2015
2014
Coupon Rate
Effective Rate
Coupon Rate
Effective Rate
8.25%
8.25%
NA
NA
NA
NA
NA - Not Applicable
*Floating rate is equivalent to the six month net treasury bill rate plus 1.25% p.a. payable half yearly.
141
6WLYH[PVUHS9L]PL^Z
&
,QWHUHVW5DWHRI&RPSDUDEOH*RYHUQPHQW6HFXULWLHV*URVV5DWHV
2015
2014
3 Month Treasury Bill
7.09%
6.38%
6 Month Treasury Bill
7.43%
6.49%
'
&XUUHQW<LHOGDQG<LHOGWR0DWXULW\
Fixed
16.50%

Fixed
15.00%
Floating
2015
2014
2015
2014
2015
2014
Current yield
15.57%
14.43%
15.03%
14.01%
NT
8.49%
Yield to maturity of last trade
12.53%
10.52%
11.87%
11.89%
NT
8.49%
NT - Not Traded
Fixed
13.40%
Fixed
13.00%
2015
2014
2015
2014
Current yield
NT
12.17%
12.44%
10.94%
NT
11.72%
9.91%
7.51%
Fixed
8.25%
Fixed
8.10%
2015
2014
2015
2014
Current yield
8.72%
8.25%
9.78%
8.10%
9.92%
8.25%
9.92%
8.10%
Fixed
9.90%
Floating
2015
2014
2015
2014
10.16%
NA
NT
NA
9.93%
NA
NT
NA
2015
2014
104.84
76.52
Interest cover (Times)
6.02
6.60
Quick asset ratio (%)
78.64
84.56
Current yield
NT - Not Traded and NA - Not Applicable
(
5DWLRV%DQN
Debt to equity ratio (%)
142
Our commitment
towards corporate
sustainability is
absolute
Corporate Citizenship
What Corporate Citizenship Means to Us
Caring for Our People
Supporting Our Clients
Informing Our Investors
Collaborating with Our Partners
Strengthening Our Communities
Preserving Our Environment
143
*VYWVYH[L*P[PaLUZOPW
What
Corporate
Citizenship
Means to Us
Multi Channel
Distribution Strategy
Empower the Community through

Sampath Saviya Programme
As a bank, our goal is to respond to the

emerging needs of the people, businesses, and
communities we serve today, as well as those we
will serve tomorrow.
We live in an era of never-before seen
economic, social and environmental
change. The depletion of natural
resources, rise of youth unemployment,
ageing population and increased urban
migration are some of the more pressing
global issues that will have profound
consequences on generations to come.
We believe, the time has come for
private citizens, the business community,
governments and civil society to join
forces in meeting these challenges and
seizing new opportunities that would
lay the foundation for progressive
development in the future.
sector and support the evolving lifestyles

of individual consumers. Even as we gear
V\YZLS]LZ[VM\SSS[OLZLKLTHUKZ^L
remain cautious about the impact on the
environment. This has inspired us to work
towards becoming a truly Green bank.
To carry out these goals, we rely heavily
on our team of 3,993 dynamic individuals
who are the driving force behind our
success. Over the years we have worked
hard to build an empowered workforce by
investing in our people so that they may,
in turn, serve the needs of our customers,
clients, investors, and communities.
We feel it is our duty to lead by example

in delivering sustainable economic, social
and environmental advancement for Sri
Lanka. As a bank, our goal is to respond
to the emerging needs of the people,
businesses, and communities we serve
today, as well as those we will serve
tomorrow. To this end, we are always
pursuing fresh ideas on how to reach
out to the unbanked, empower new
entrepreneurs, strengthen the corporate
144
5E CSR Platform
Strengthening the Transformative

CSR Model
Strengthening Green
Banking Initiatives
6WDNHKROGHU6WUDWHJLHV
G4-24,26,27
(03/2<((6
Strategies
&86720(56
Strategies
Product innovation
Service excellence
Technology-driven banking solutions
Promoting island-wide customer inclusiveness
Promoting bankability among an island-wide customer
network
Establishing of a broader based SME lending across the
country
Ethical lending practices
,UOHUJPUNUHUJPHSTHYRL[H^HYLULZZVM[OLJ\Z[VTLY
Complaint resolution
Maintaining customer privacy
*2$/ 6XSSRUWLQJ2XU&OLHQWV
Create a stable and progressive banking
environment, which renders high quality
banking solutions together with adequate
information for the customer to make an
informed decision
0$1$*(
6+$5(+2/'(56
Strategies
Consistent bottom line
Ensuring sustainable return on investment
Transparency and responsible stewardship
Maintaining the Bank's reputation and credibility
Safeguard asset quality
*2$/,QIRUPLQJ2XU,QYHVWRUV
Support shareholder wealth creation
and generate sustainable growth
Compliant with good governance
6833/,(56
Strategies
Laid down supplier selection policy
Tender procedure that optimises the level of competition
throughout the supplier selection process
Ethical sourcing practices
Local sourcing and inclusive sourcing policy
Effective dispute resolution mechanism
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Develop a culture where people can
make a difference both as individuals and
as a team
Attraction of best talents from the market

Development within through training & development
Employee engagement
)LUL[ZJOLTLZ
Rewards & recognition
Grievance Handling
Occupational health & safety and employee welfare
*2$/&ROODERUDWLQJZLWKRXU3DUWQHUV
To adopt a transparent sourcing
mechanism that would ensure fair and
equitable purchasing practices
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Strategies
Community development and capacity building
Education and literacy
Health and nutritional development of society
Ethical sourcing
*2$/6WUHQJWKHQLQJ2XU&RPPXQLWLHV
Lend a helping hand to resolve
community-based socio-economic issues
in line with national priorities
(19,5210(17
Strategies
Reduction of the Bank's carbon footprint

Managing the impact on the environment
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Adopt green management practices and
operational procedures to mitigate the
environmental impact of the business
145
Caring for Our

People
It is hoped that by building a sound HR framework in this
manner, we will be able to keep pace with the growing
ZVWOPZ[PJH[PVUVM:YP3HURHZUHUJPHSZ`Z[LTHUKHKKYLZZ
the challenges arising from the business evolution process.
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Commitment to create an environment conducive for the employees to develop and

reach their potential, both professionally and personally
Primary Engagement
Mechanisms
Frequency of
Engagement
Open door policy
Employee forums
Employee suggestions schemes
Grievance Handling procedure
Employee social committees
Feedback forms
Business unit level meetings
Intranet
24/7
Memorandums
Circulars
News letters
Training
Get-together / Events
:HTWH[O,TWSV`LL5V[PJH[PVU
System (SENS)
CSR projects
24/7
A Annually
P Periodically
Matters of Relevance
Ethical employment
practices
Employee wellbeing
Work-life balance
Career development
Rewards / recognition
Talent development
Employee
communications
Q Quarterly
Of late, the changing demographics of

Sri Lankas banking sector has not only
PU[LUZPLK[OLSL]LSVMJVTWL[P[PVUHTVUN
the established players but also freely
encouraged new entrants to the market
0DQDJHPHQW$SSURDFK
Todays challenging business
environment and increased complexity
require us to take a proactive
approach in order to derive a
dynamic, people-driven organization.
And so we believe that by respecting,
caring for and nurturing each and
every one of our 3,993 employees,
we are helping them to become
ambassadors of progress for the
future of Sampath Bank PLC and
indeed the nation as a whole.
We have always been passionate
about our employees and have
continued to work tirelessly to create
a solid Human Resources (HR)
model that will lay the foundation for
sustainable growth in the years to
come. And so we continue to follow
policies and practices that are in
strict conformity with all relevant local
labour statues, and internationally
recognized best practices and good
governance mechanisms for fair and
equitable workforce management.
It is hoped that by building a sound
HR framework in this manner, we will
be able to keep pace with the growing
ZVWOPZ[PJH[PVUVM:YP3HURHZUHUJPHS
system and address the challenges
arising from the business evolution
process.
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G4-EC 05
R Regularly
24/7 - 7 days 24 hrs
over the past few years. Meanwhile, the

ever-changing economic and regulatory
environment in the country alongside
advancements in technology have also
NP]LUYPZL[VHU\TILYVMZWLJPJ/9
challenges, which are likely to affect
us now as well as in the longer term.

Summarized below are some of these
key challenges and the steps taken to
counteract these issues in order to help
minimize the downside risks to both the
LTWSV`LLHZ^LSSHZ[OL)HUR"
Key Challenge
Strategic Focus
Issues resulting from business Consolidation as opposed to

Expansion
Further strengthen HR as a strategic business partner to cater to

changing business model
Enhancing Employee Productivity, in response to declining

Net Interest Margin and growing market competition
Re-assessing manpower requirements in line with Strategic

Business Objectives
146
Key Challenge
Strategic Focus
Risk of Manual Skill obsolence due to greater automation /

digitization
Improve employee sustainability through reskilling and crossfunctional development together with the realignment of business
functions in order to provide potential new opportunities for
reskilled talent
Demand for high-quality competent personnel to facilitate a

sustainable HR pipeline for the future
Encourage Develop from within philosophy to develop team

members for the future
Become an Employer of Choice by encouraging employees

to serve in a diverse, multi-cultural work environment
Create a safe and secure work environment that promotes

equality and diversity together with a healthy work-life balance
+5DVD6WUDWHJLF%XVLQHVV3DUWQHU
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been passionate
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to create a
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GOAL
To better navigate
the current
environment and
contribute to the
overall sustainability
of our business
Subsequent to our rapid expansion

phase, we now expect to move onto
a chapter of consolidation in the next
few years. It is therefore critical, that we
improve the overall competitiveness and
LMJPLUJ`VM[OLI\ZPULZZTVKLS0U
we further strengthened the HR function
as a strategic business partner and a key
participant in the overall business strategy
of Sampath Bank PLC.
To achieve this, we realized it is essential
that we reconsider the way in which we
manage the following components of our
HR framework.
5HFUXLWPHQW3ROLF\
Sampath Banks recruitment policy is
structured to attract the best talent and
in order to do so, we continue to make
improvements to our existing model in
order to complement the demands of the
market and response to the emerging
needs of the generation Y
%HQHWVDQG5HZDUGV
Employees are the lifeblood of our
business, which is why it is vital that we
retain a strong and committed team at
all times. It is why we have made sure
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Inter Branch/Department Quiz Competition
147
G4-LA 02
Non-monetary
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6DPSDWK%DQN%HQHW6WUXFWXUH
Permanent
Employees
Contract
Employees
Differently-abled
Employees
7YV[)VU\Z
Salary Increments
On renewal of
agreement
Allowances (As applicable)
Reimbursement of course fees / Examination fees
Medical Facilities (Staff & Family)
Insurance Facilities (24 hour)
Holiday Bungalow Facilities
Special Non-technical Training on Meditation, Yoga, First Aid, Life

Skills, etc
Special Programs for Children of Team Sampath (i.e. Daru

Daskam, Rewards for Children and Yong Leadership
Development Program)
Employees are the

lifeblood of our
business, which is
why it is vital that we
retain a strong and
committed team at
all times. It is why we
have made sure that
V\YILUL[Z[Y\J[\YL
provides market
competitive pay and
rewards, in order to
motivate and retain
the highest quality
people for our team.
148
Athletic Meet 2015
competitive pay and rewards, in order to

motivate and retain the highest quality
people for our team.
Moreover, we review salaries once in
two years and salary increments are
determined based on related factors . For
year 2015, we have increased salaries of
HSSJVUYTLK[LHTTLTILYZI`
Furthermore, a comprehensive review
VM[OLILUL[Z[Y\J[\YLPZHSZVJHYYPLK
out by the HR Department, to assess
the need for improvements, if any that
may be deemed necessary in line with
current market expectations. Revisions
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JOHUNLZJVTLPU[VLMMLJ[K\YPUN[OL`LHY"
The Eligibility Criteria for Staff

Housing Loans was revised, and
therefore in addition to employees
with 05 years service in the Bank,
[OLJVUYTLKLTWSV`LLZÔV
reach 28 years of age also can
now apply for a housing loan.
*VUYTLKLTWSV`LLZÔVOH]L
been in service for more than
03 years will now be eligible for
Customer Rate Vehicle Loans.
Employees with 5 years experience
is considered for Vehicle Loans.
Introduced a Special Staff Vehicle
Loan scheme for Operations
Assistants, Drivers and Electricians
who have completed 10 years of
JVUYTLKZLY]PJL
G4-11/LA 04/LA 08/HR 04
(PSOR\HH5HODWLRQV3ROLF\
In the current challenging economic
environment, we believe that constructive
dialogue plays a crucial role in the
progress of our business. We do not have
any collective bargaining agreements
with the trade union. Over the years, we
have worked to build a strong rapport
through regular communication and
exchange ideas with team members at

all levels of the business. In this regard,
we work with Sampath Bank Employee
Association (SBEA), which comprises of
nearly 98% of our team. Regarded as
a key stakeholder of the business, the
SBEA is held equally accountable for the
Banks overall performance. Although no
formal agreement exists between the two
parties, the understanding between the
Bank and the SBEA has always been a
productive one. We continue to leverage
on the strength of this relationship to
achieve our corporate goals and broader
strategic vision.
With regard to operational changes, they
are planned and developed with the
active participation of all team members
concerned. As they are fully aware of
any potential changes that are likely to
affect them, no additional notice period is
required to provide to the team members
prior to the implementation of such
changes.
Meanwhile, to increase the effectiveness
of our internal communications and to
facilitate access to more information,
we continue to improve other channels
of communication as well. The intranet
facility is one of the main access points
available for employees to receive
corporate information. Further, Sampath
,TWSV`LL5V[PJH[PVU:`Z[LT:,5:
JVU[PU\LZ[VILHWYVTW[HUKLMJPLU[
tool to send important information to
employees, via SMS.
The In Business Forum is another
unique initiative, conducted regularly
by the Bank to provide employees with
the opportunity to discuss matters of
business interest with the Managing
Director one-to-one basis. In addition
to this, employees by prior appointment

can, meet the Managing Director,
members of the Corporate Management
or any other member of the senior
management to discuss matters relevant
to business or otherwise.
The formal employee grievance handling
mechanism also provides a platform for
employees to resolve grievances, if any.
The review of the process conducted in
2015 did not necessitate any changes
to the existing model and 39 employee
grievances were successfully resolved
using the current employee grievance
mechanism.
(IIHFWLYH3HRSOH0DQDJHPHQW
Practices
With the decline of Net Interest Margin
(NIM), our priority for 2015 was to
improve the cost to income ratio,
which largely underpinned our people
management approach for the year. Reassessing our manpower requirements
in line with our business priorities, we
ZV\NO[[VIVVZ[WYV[WLYLTWSV`LLI`
improving employee productivity, but
without reducing the existing cadre.
Among the key developments were,
the introduction of Deposit Kiosks at
branches, to relieve frontline employees
of many routine tasks. This together with
certain process improvements, helped to
contain the staff cadre and improve the
productivity levels of the branch teams.
GOAL
Develop Employee
Productivity in
order to counteract
declining NIM and
growing market
competition
149
Among the key

developments were,
the introduction of
Deposit Kiosks at
branches, to relieve
frontline employees
of many routine
tasks. This together
with certain process
improvements, helped
to contain the staff
cadre and improve the
productivity levels of
the branch teams.
We then looked at streamlining

the current employee performance
management model, in order to improve
the people productivity.
As an initial step towards performancebased incentive scheme we launched the
performance-based bonus scheme for
members of the Corporate Management.
Steps were taken to revamp the
performance evaluation mechanism
and embrace a more inclusive appraisal
strategy. Towards this end, we made
a concerted effort to enhance the
feedback skills of our people, as we
believe that a reliable feedback culture
could become an effective tool in the
employee performance evaluation
process. Accordingly, in 2015 we initiated
the 3600 evaluation mechanism for
members of the Corporate Management
and Chief Managers. It is a multi-source
assessment technique, which provides
Seeking Alternative
Solutions
From a HR perspective, we strive
to encourage team members to
concentrate more on developing
their competencies in banking
activities rather than performing
mundane non-banking
operations. Through experience,
we have found this can be
achieved through outsourcing
these non-banking functions.
A highly cost-effective solution,
outsourcing helps to release staff
from performing non-banking
functions thereby contributing to
+\YPUN[OL
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invested
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the opportunity for survey participants to

receive evaluations from their immediate
work cycle.
Further, a comprehensive reward
scheme Special Thanks And
Recognition Scheme (STARS) was
Introduced during year 2015 in order
to motivate and drive team Sampath to
achieve higher level of performance.
,PSURYLQJ(PSOR\HH
6XVWDLQDELOLW\
We have come to realize that our
growing reliance on automation
would likely result in a degree of
counterproductive manpower, as
automation replaces certain every-day
manual tasks. Counteracting these
challenges, while improving manpower
To respond to the
obsolescence of
manual skills due to
greater automation/
digitization
Average Training
Hours
35.4
Per Employee per Annum

150
an improvement in overall employee

productivity. Given these obvious
ILUL[Z^LKLJPKLK[VL_WHUK[OL
number of non-banking functions
that we outsource. In 2015, the
Wharf handling service of the Bank
Notes Operations department, cash
sorting operations of Central Cash
Department and the stationary
distribution process handled
by Logistics Department were
outsourced, releasing team members
to be engaged in more productive
tasks.
GOAL
productivity levels, would require the

deployment of extensive training and
development to reskill employees. We
have understood that this could only
be achieved by a systematic, long-term
strategy aimed at regenerating the skills
of our workforce in line with new job
responsibilities.
7UDLQLQJDQG'HYHORSPHQW3ROLF\
>P[OYLZWLJ[[VMVYTHSQVIZWLJPJ
training, we deploy targeted people
strategies aimed at motivating and
retaining people by providing compelling
opportunities for both personal and
professional development.
'HYHORSLQJ(PSOR\HHVIURP:LWKLQ
We believe, that in order to achieve
sustainable results it is critical to create a
high quality leadership pipeline within the
Bank, while raising self-awareness among
our people so that they can better plan
their careers.
Starting with a review of our leadershiplearning model, we have put in place
a number of initiatives to promote the
Develop from Within rationale. Key
among them is the Executive Talent
Development Programme, a progressive
new approach that seeks to produce a
vital leadership pipeline from candidates
who are currently serving within the senior
executive to senior manager grades (both
PUJS\ZP]L;OLZWLJPJVIQLJ[P]LZVM[OL
WYVNYHTTLHYL"
Identify, select and develop a pool
of talented Senior Executives
/ Senior Managers capable of
supporting the Banks current and
future business requirements

*SHZZPM`PKLU[PLKJHUKPKH[LZ
based on their potential /
performance and introduce
development interventions coupled
with business strategy of the Bank
Integrate dynamic learning tools
into the employee development
processes
Inter Department Regional Cricket & Netball Carnival
Assessing Branch
Bench Strength (BBS)
In 2015, we conducted a
comprehensive review of
our overall workforce, their
competency levels and the
relevance of their skills in the
modern business context.
This in turn points to better working

conditions and higher overall quality
of employment.
We used the BBS index, as a

baseline to measure the crossfunctional capabilities of branch
employees. The BBS seeks to
assess the degree of job rotation
and multi skill level of employees.
Measured on a scale of 0-4, a
high BBS score indicates strong
cross-functional capabilities of
the staff, resulting in a healthy
job-rotation index at the branch.
A high BBS index also means
that certain members of the
branch team can be released
for training or leave allocations,
without any disruption to the
core activities of the branch.
In the event a branch recorded a low

BBS reading, we then concentrated
our efforts on developing critical
skills, offering mixed solutions for
both technical and behavioural
training. Alternating between onthe-job learning with traditional
classroom training, we then offered
alternative plans to manage jobrotations. Further, we initiated
special knowledge sharing sessions
and branch level training sessions to
help team members sharpen their
cross-functional capabilities. It is
hoped that these experiences would
enable an exchange of expertise
and perspectives that improves
the ability of our people to analyse,
discuss and more important things
they encounter on daily basis.
151
To ensure a
continuous Talent
Pipeline to feed the
HR needs of the
Bank
GOAL
Candidates are then developed

through a strategic career mapping and
planning process. Further, we focused
on increasing the accountability of our
managers so that they may be better
equipped to foster the development of
their people and promote the behaviours
that we consider critical to achieving
business objectives. A total of 232 team
members across the Bank, were selected
for the Executive Talent Development
programme in 2015, of which 57 were
women.
Mentoring and coaching to hone the
necessary skills of team members is yet
another key aspect of the programme.
In this regard Sampath Mentoring
programme has proven to be an
invaluable tool in aligning team members
to the Banks value culture and helping
them to understand the importance of
making a positive impact on the Banks
triple bottom line. These mentoring
sessions are meant to help future leaders
map their personal career development
plans.
Given the growing reliance on mentoring,
we took steps to expand the framework
by appointing 199 new mentors in 2015
from the Branch network. These mentors
are expected to provide necessary
support to team members, including
trainees who seek special assistance in
resolving work-related issues.
152
As in the past, in this year too, we

have continued to invest in providing
additional development opportunities
to help our people unlock their full
potential. The Harvard Business School,
USA, scholarship programme is one
such initiative that has been in place for
the past few years. In 2015, 5 Senior
Managers were fully sponsored by the
Bank to attend this prestigious 6 Day
course. To complement this initiative
a new e-learning module, was also
PU[YVK\JLKPU(MSPH[LK[V[OL
Management curriculum of the Harvard
Business School, this new e-learning tool
was extended to 30 Senior Managers in
2015.
G4-HR 03,05,06,08,09
3URYLGLQJD)XOO\HGJHG:RUN
(QYLURQPHQW
+XPDQ5LJKWV
Sampath Bank PLC has always been
committed to maintain a workplace
environment which is safe and
comfortable to work in. To achieve this
goal, we remain committed to respect
the human rights of each and every
employee on our team as well as all
our business operations. Our nondiscriminatory approach prevents us
from discriminating against any employee
based on their ideological views, race,
colour, religion, gender, sexual orientation
or any other status protected by law.
To be branded as
an Employer of
Choice
GOAL
Industrial Disputes
Zero
While we may on occasion counsel, and
if necessary, discipline employees who
act contrary to the Banks accepted
policies and procedures, we believe that
no punishment should violate the human
rights of the individual. Also physical
punishment is strictly prohibited under
any circumstances.
Further, we do not accept or condone
any aspect of forced labour as we
believe, employees choose to work for
us at their own volition. We have always
adhered to and strictly enforced laws
against child labour.
Given this strict code of ethics, during
the reporting period, there have been no
reported incidents of discrimination or
violation of human rights of any member
of our team or any person or group in
society including, the rights of indigenous
people.
'LYHUVLW\DQG,QFOXVLRQ
>LILSPL]LHKP]LYZPLK^VYRMVYJL
enables us to better understand the local
cultures, business opportunities and client
needs. We therefore strive to promote
diversity at all levels in our organization
in an effort to generate value for all
Z[HRLOVSKLYZVMV\YI\ZPULZZPUJS\KPUN"
employees, customers, communities and
shareholders.
Our non-discriminatory approach is

one that promotes equal opportunities
HUKJYLH[LZHSL]LSWSH`PUNLSKMVYHSS
employees. To follow through on this
promise we have established clear
guidelines for all our HR processes
and practices. Meanwhile we rely on
our communication framework to raise
awareness regarding the value of diversity
and to imbue a culture of inclusion at all
levels of the business.
*HQGHU(TXDOLW\
Promoting gender balance at all levels of
our organization has become a Bankwide priority and we aim to ensure
that each business unit maintains an
appropriate gender ratio.
Annual Dinner Dance-Sampath Nite 2015

G4-LA 06
Moreover, we have worked to increase

the percentage of women in leadership
positions by making a concerted effort to
increase female representation in senior
management positions.
6XSSRUWLQJWKH'LIIHUHQWO\DEOHG
As always, we remain committed
to building a culture of inclusion
that facilitates collaboration across
generations and supports people
who are differently abled. In working
to minimize the barriers faced by the
differently abled, our goal is to provide
them with opportunities to help them
unlock their potential and become
productive members of society. They are
considered to be no different from any
other team member and are entitled to
[OLM\SSYHUNLVMILUL[ZSLHYUPUNHUK
career development opportunities that
accompany their pay grade.
We currently engage 9 differently-abled
PUKP]PK\HSZH[PKLU[PLKWVZP[PVUZ^P[OPU
the Bank.
Zero Injuries
Related to occupational health and safety
G4-LA 05,07,08/HR 07
2FFXSDWLRQDO+HDOWKDQG6DIHW\
Being a bank, there is a very low risk
of accidents arising directly from our
operations. Nevertheless, creating a
hazard free environment has always
been a key priority for Sampath Bank
PLC underpinned by our Zero accident
policy. Even though we do not have
and occupational health and safety
committee, we have set-out clear
guidelines to ensure the safety of all those
within our premises at any given time
We have in place a strict emergency
WYVJLK\YLPUJS\KPUN[OLHUU\HSYL
drill. In 2015, approximately 1,130
LTWSV`LLZWHY[PJPWH[LKPU[OLYLKYPSS
carried out on 26th August 2015. During

the year, we also appointed 52 Floor
3LHKLYZH[[OL/LHK6MJLI\PSKPUN
to provide assistance in a disaster
situation. This was followed by a special
training session, conducted by the Fire
Brigade to create awareness regarding
[OLWYVWLY\ZLVMYLL_[PUN\PZOLYZHUK
related equipment. We also introduced a
paramedic-training programme, for which
52 employees voluntarily participated.
We extend our safety culture beyond
our own team and strive to inculcate
best practices among security service
personnel deployed to our premises,
by our outsource partners. As at 31st
December 2015, we had 745 security
persons working in Sampath Bank
premises across the Island. Of this, a total
of 527 (71%) persons participated in the
two half-day training sessions, which we
conducted to highlight the importance of
[OLMVSSV^PUN"
Roles and responsibilities of
professional security guards
Precautionary steps to be taken by
the security personnel, in the event
of an emergency
Being a Bank our employees do not
involve in activities which adversely
impact their health and safety
153
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ILSPL]LH^VYR
LU]PYVUTLU[
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VULTWSV`LL
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Sampath Service Awards 2015
Sampath Daru Daskam 2015
154
Safety aspects pertaining to the

electrical power system
Safety and maintenance of the
generator equipment
7YVWLY\ZLVMYLNO[PUN
equipment
:RUNOLIH%DODQFH
We strongly believe a work environment
that facilitates a healthy work-life
balance has a positive impact on
employee wellbeing, motivation and
productivity. Investing in services to help
our colleagues to better manage their
personal and family needs has become a
crucial part of our HR framework.
The special stress-management training

and yoga sessions conducted by the
Bank were found to be popular among
employees, with over 41 team members
participating in each of the 2 sessions
conducted during the year. Meanwhile,
the holiday bungalow facility was
upgraded and a new corporate bungalow
in Nuwara Eliya, was added to the
existing portfolio, expanding the number
of holiday bungalows to 6.
In an ongoing effort to provide multiple
engagement opportunities, we have
implemented a robust activity calendar.
:VTLVM[OLRL`L]LU[ZMVY^LYL"
The Inter-department quiz
competition: The event which
was held on 26th April 2015, saw
the participation of 196 Teams
representing Sampath Banks
branches and/or departments
Athletic Meet: The largest sports
event in the annual Sampath event
calendar. Conducted for the 03rd
consecutive year, the 2015 event
recorded the largest-ever number
of participants with over 1,200
athletes of the Sampath Family
Inter Department/Region Cricket
and Netball Carnival, held on
22nd November 2015, with the
participation of 29 cricket teams
and 10 mixed Netball teams from
across the branch network
Annual Dinner Dance Sampath
Night, held on 7th November
2015
Service Awards The Sampath
Service Awards 2015 was
organized to felicitate 64 members
of team Sampath who have
completed 25 years of service with
the Bank.
Rewards for Children 2015
Extending the
Sampath Family Concept
We have always understood that
the long term commitment of our
employees will depend not only
on the direct engagement facilities
offered to them, but also on the
opportunities provided to their
families as well. In this regard our
focus has mainly been on the
health, safety and education of the
children of our employees. And so
we continue to invest in a broad
range of initiatives aimed at building
a solid foundation for these future
leaders of our country. Among the
key initiatives for the year are:
Sampath Daru Daskam An
annual competitive event
organized by Sampath Bank
to recognize special talents of
children of Team Members,
PUJS\KPUN":WLLJO:PUNPUN
Instrumental Music, Art etc.
In 2015, more than 400
contestants between the
ages of 4 and 17 competed
in 4 age groups, with 195
winners being recognized at
the awards ceremony held on
30th May 2015.
Rewards for Children - This

is a special award scheme
to recognize achievements
of children of team members
who have excelled in
competitive examinations
and/or sports, in a given year.
In 2015 a total of 34 children
were felicitated, being those
who excelled in year-05
Scholarship examination,
Ordinary Level Examination,
Advanced Level candidates
accepted to local Universities
and achievements in sports.
Yong Leadership
Development Program
A unique leadership
development program
conducted for children of
Sampath team members
by Sampath Bank in-house
Toastmasters Club. 40
children between the ages of
13 and 16, participated in this
23 hour, special program held
on 4 and 5 July 2015.
155
G4-LA 01
1HZ5HFUXLWV
New Recruits - Age Group & Gender
Above 55
Male
-
Female
-
Total
-
41 - 50
01
01
31 - 40
01
01
02
21 - 30
43
62
105
18 - 20
16
16
32
140
51 - 55
Total
60
80
Percentage
43%
57%
New Recruits - Region & Gender

Central
Male
02
Female
02
Total
04
Eastern
06
01
07
Northern
01
01
North Central
01
02
03
North Western
07
02
09
Sabaragamuwa
03
02
05
04
04
Uva
01
01
02
Western
39
66
105
60
80
140
43%
57%
Southern
Total
Percentage
7XUQRYHU
Turnover - Age Group & Gender
Above 55
Male
01
Female
-
Total
01
51 - 55
08
05
13
41 - 50
01
05
06
31 - 40
16
09
25
21 - 30
69
31
100
18 - 20
01
01
02
Total
96
51
147
Percentage
65%
35%
Turnover - Region & Gender

Central
Male
04
Female
02
Total
06
Eastern
10
01
11
Northern
03
02
05
North Central
02
02
North Western
03
02
05
Sabaragamuwa
04
04
Southern
03
02
05
Uva
03
01
04
Western
64
41
105
96
51
147
65%
35%
Total
Percentage
156
Reason for Turnover

Join with Other Competitive Organizations
Male
Female
Total
17
17
Join with Other Organizations
12
06
18
Migration
19
16
35
Higher Studies
13
02
15
Personal Reasons
10
19
29
Retirement
07
05
12
Other
18
03
21
Total
96
51
147
G4-LA 03
5HWXUQWR:RUNDQG5HWHQWLRQ5DWHVDIWHU3DUHQWDO/HDYH
Description
2015
2014
Employees Entitled for Maternity Leave
1398
1369
Employees Taking Maternity Leave
121
131
Employees returning to Work after Maternity Leave
121
131
Employees still Employed 12 Months after Taking Maternity Leave
107
125
100%
100%
89%
95%
Return to Work after Maternity Leave

Retention Rate
/RVW'D\V $EVHQWHHLVPGXHWR+HDOWKDQG6DIHW\,VVXHV1RQH
G4-LA 06
G4-LA 09
$YHUDJH+RXUVRI7UDLQLQJSHU<HDUSHU(PSOR\HHE\*HQGHUDQGE\(PSOR\HH&DWHJRU\
Training Program
Gender Wise
Participants
Corporate
Man Hours
Male Female
Human Rights
Employee Category (Average Training Hours)

Senior
Executive
Middle
Junior Operational
Management Management Management Management Management
Staff
Male Female
33
28
327
278
41
241
179
118
24
19,586
16,683
69,632
59,317
583
2,792
5,807
17,148
18,257
83,529
Legal & Good Governance
45
39
332
283
16
22
46
473
18
40
Risk & Compliance
59
49
663
565
387
24
121
164
156
352
Audit, Finance & Accounting
33
29
555
473
27
117
216
393
106
169
629
535
3,379
2,879
10
50
353
360
505
4,958
Leadership & Skills
68
58
797
679
206
570
402
281
IT Skills
54
47
553
471
90
297
197
387
26
27
20,507
17,468
76,238
64,944
1,321
3,912
7,384
19,385
19,194
89,106
54%
46%
54%
46%
1%
3%
5%
14%
14%
63%
157
Branch Banking
Procedures
Customer Service, Selling &
Marketing
Total
Percentage
Programs for Skills Management and Lifelong Learning that Support the Continued Employability of Employees and Assist Them in
Managing Career Endings
G4-LA 10
&RPSHWHQF\$UHDZLVH6XPPDU\
Competency Area
Customer Service Excellence
Advance Human Resources Management
Accounting and Audit Procedures
Development of Managerial and Leadership Competencies
Logistics Management
Procedural Aspects in Branch Operations
Legal and good Corporate Governance
Advance Information Communication Technology Systems
Banking Internal Systems, Processes and Related Procedures on Banking
Buildings and Maintenance
Corporate Banking
Basic IT Skills
Credit Card Operations
Critical skills Development
Import and Export Transactions
Investments and Treasury Operations
Business Continuity
Advanced Marketing Skills
Systems Audit Aspects
Financial Budgeting and Forecasting
Familiarization on Banking and Other Environments
Procedural Aspects on Risk Management and Compliance
Procedural Aspects on Local and Foreign Currency Management
Procedural Aspects on Credit / Recovery Operations
Seminars and Conferences
Others
Total
Participants
Man Hours
778
49
6
106
4
1,780
82
57
317
5
2
25
9
702
249
19
42
211
3
23
499
25
88
1,280
163
1,275
7,799
4,470
472
42
1,154
47
17,588
607
794
2,379
44
120
100
88
9,452
2,498
272
657
896
5
160
8,018
213
676
14,393
1,665
12,652
79,462
G4-LA 11
Percentage of Employees Receiving Regular Performance Reviews and Career Development Reviews, by Gender and by Employee
Category
Employee Category
Male
Female
Total
Percentage
(Covered)
79%
21%
24
100%
Senior Management
84%
16%
82
100%
Executive Management
72%
28%
173
100%
Middle Management
68%
29%
550
97%
Junior Management
61%
38%
777
99%
100%
Operational Staff**
Total
Percentage
65%
35%
2,369
2,617
1,358
3,975
66%
34%
Note: All employees are covered under Regular Performance Reviews
158
Composition of Governance Bodies and Breakdown of Employees per Employee Category According to Gender, Age Group,
Minority Group Membership, and Other Indicators of Diversity
G4-09,10/LA 12/EC 06
Note: Composition of Corporate Management and Senior Management positions are held by Sri Lankans
Total
Other
Operational
Staff
Junior
Management
Middle
Management
Executive
Management
Senior
Management
Corporate
Management
Governance Bodies Composition by Employee Category and Age
18-20
12
06
21-30
02
34
07
206
110 1,269
529
21 2,177
31-40
05
02
32
06
275
104
263
165
157
187
39 1,244
41-50
12
02
58
11
89
39
101
54
12
31
03
17
50
479
51-55
05
02
09
04
05
01
07
04
01
23
69
Above 55
02
02
Total
19
04
74
17
128
46
417
169
481
307 1,438
722
38
133 3,993
83
17
81
19
74
26
71
29
61
33
22
Type of Employment
39
67
2015
F
18
78
2014
Male
Female
Male
Female
2,196
1,278
1,981
1,272
376
73
631
65
Probationers
11
28
11
20
Fixed Term Contract employees
12
19
08
12
2,595
1,398
2,631
1,369
Permanent Employees
Trainees
Total
Region
2015
2014
No of Employees
No of Employees
Total
No of
Branches /
Units
Male
Female
Total
94
272
22
175
94
269
134
26
160
19
138
25
163
15
89
28
117
15
99
33
132
North Central
10
92
20
112
10
95
17
112
North Western
21
161
78
239
21
157
73
230
Sabaragamuwa
14
104
41
145
13
104
36
140
Southern
25
184
88
272
25
193
84
277
Uva
10
79
14
93
10
79
19
98
Western
156
1,574
1,009
2,583
150
1,591
988
2,579
Total
294
2,595
1,398
3,993
285
2,631
1,369
4,000
No of
Branches /
Units
Male
Female
Central
24
178
Eastern
19
Northern
159
G4-LA 16/HR 12
Number of Grievances about Labour Practices and Human Rights Impacts Filed, Addressed, and Resolved through Formal
Grievance Mechanisms - None
G4-LA 13
%DVLF6DODU\DQG5HPXQHUDWLRQ5DWLR%\*HQGHUDQG(PSOR\HH&DWHJRU\
Employee Category
Male
Female
0.25
Senior Management
0.98
Executive Management
1.04
Middle Management
1.03
Junior Management
1.01
Operational Staff
1.18
Average Salary Ratio
1.03
Note: Remuneration Ratios does not differ with Gender. The changes of the ratio is due to the number of years of service of the
employees / Gender Composition.
160
Supporting Our
Clients
A contributory factor towards the growth of the
SVJHSUHUJPHSZLY]PJLZZLJ[VYPZ[OLOPNOSL]LSVM
competition prevalent among the key banking
institutions in the country.
G4-24,26,27
Uphold the customers right to demand a stable and progressive

banking environment which provides a superior service platform and promotes
customer choice / convenience
Primary Engagement
Mechanisms
Frequency of
Engagement
One-to-one feedback from

customers who visit the Bank
Customer surveys conducted via
traditional communication methods
or electronic mediums
Social media interactions
24/7
24/7
SMS alerts
24/7
6MJPHS^LIZP[L
24/7
Sampath Vishwa (Internet banking)
24/7
Call centre
24/7
CSR projects
P Periodically
R Regularly
Customer satisfaction on
existing products
Customer opinion on
special promotions
To analyse the pulse of
the customers towards
the bank
Customer feel for new
innovations
Customer communication
methods
Demand for customised
solutions
Speedy transactions
Information on products
and services
Superior customer service
Financial inclusion
Customer complaint handling

mechanism
Feedback forms-paper based /
electronic mediums
Correspondence
R, 24/7
R
24/7 - 7 days 24 hrs
0DQDJHPHQW$SSURDFK
We recognize that todays customers
have less and less time to go to the
branch, even though their needs are
greater than ever. Rapidly coming
of age, modern consumers have
been found to be moving away from
conventional Bricks and Mortar Banking
concepts and demanding greater
convenience, better service quality and
high-tech ways to access their bank at
any time, in any place.
To address this new reality, a few years

ago we at Sampath Bank PLC began
to transform our business model. This
also called for a rethink of our customer
fundamentals and so we looked at
establishing stronger customer ties
through all our customer touch points.
We communicate more regularly with
current and prospective customers.
This has helped us to better understand
the needs of the customer and deliver
&KDOOHQJHVDQG6WUDWHJLHV
The stability of Sri Lankas current
UHUJPHSZ`Z[LTPZ[OLYLZ\S[VMZ`Z[LTH[PJ
KL]LSVWTLU[ZPU[OLJV\U[Y`ZUHUJPHS
services sector over the past decade
or so. Never before has the countrys
banking sector seen change of such
magnitude, where the demographics
VMUHUJPHSPUZ[P[\[PVUZTHYRL[ZHUK
instruments have all evolved so fast.
0TWYV]LTLU[ZPU[OLX\HSP[`VMUHUJPHS
WYVK\J[ZHUKPUUV]H[PVUZLMJPLUJ`PU
services and application of technology
in addition to the proactive and timely
interventions by the Central Bank of
Sri Lanka, all of which have resulted
PUH]PZPISÒPNOLYSL]LSVMUHUJPHS
sophistication comparatively to many
other emerging economies.
Another contributory factor towards the
NYV^[OVM[OLSVJHSUHUJPHSZLY]PJLZ
sector is the high level of competition
prevalent among the key banking
institutions in the country. This has not
only increased the complexity of the
L_PZ[PUNUHUJPHSZ`Z[LTI\[HSZVPUZWPYLK
a more responsible banking phenomenon
that reiterates the importance of
customer-centricity at every level of the
business.
Working cognizant to these challenges,
Sampath Bank PLC continues to leverage
on its position as a top-tier bank in Sri
Lanka, to produce customer-driven
solutions that add value to the countrys
banking model.
WYVK\J[ZHUKZLY]PJLZ[OH[M\SSS[OLPY
changing expectations and needs.
This has also given birth to a new
appreciation for customer rights and as
such, we work with the understanding
that every customer has the right
to expect a stable and progressive
environment, which renders sound and
superior banking solutions, backed
by the latest technology and excellent
customer service.
161
Key Challenge
Strategic Focus
Understanding the evolving needs of the customer in order to

convey a meaningful value proposition
Gauge the pulse of the customer in order to deliver concrete

solutions that cater to every stage of the customers life
Facilitating a robust delivery mechanism that would offer greater

convenience to the customer
Working to Bring the Bank closer to the customer, by

developing a more dynamic branch model and increasing digital
presence
Meeting the demand for more proactive communication
Harnessing the power of digital mediums to increase exposure

and promote greater engagement between the Bank and the
customer
0UJYLHZLJ\Z[VTLYM\SSTLU[
Strengthen the professional skills of frontline staff and reinforce

the call centre operations, to maintain service assurance
parameters
Our goal is to create

an immediate rapport
with the new clients
and urge them to
choose Sampath
Bank as their primary
bank right from the
start.
Understand
customers evolving
needs so we can
adapt promptly to
their expectations
GOAL
/LVWHQDQG/HDUQ
The more time we spend with our
customers, the more we learn about their
habits and their needs. When we meet
new customers, we start off by laying the
foundation for a long-lasting relationship.
Hence, our onboarding programmes
are geared to assess their needs and
expectations right from the beginning,
enabling us to begin our relationship on
the right footing. We have put in place
a standardized process for welcoming
new clients. Our goal is to create an
immediate rapport with the new clients
and urge them to choose Sampath Bank
as their primary bank right from the start.
Meanwhile, our listening practices help us
to understand our customers needs and
respond promptly to any concerns that
they may have, including any problems
for which we may be responsible.
&RQYH\LQJD'\QDPLF9DOXH
Proposition
Our retail portfolio consists of an array of
products and services that are tailored
[VHZWLJPJZ[HNLVMSPML)LP[[OLPYHNL
life goals, technological competency, risk
preferences, frequency of travel or need
MVYZOVY[[LYTUHUJPUN^LHYLJHWHISL
of providing what suits them best.
Sampath Banks Minor savings products
aim to inspire a new generation of young
savers, while our offerings for Young
Adults and Career Starters, seek to
complement the lifestyle of this upwardly
mobile customer segment. We also help
Adults and Middle-Agers to realize their
life goals by addressing their exact needs.
We support Professionals to reach for
greater heights and accomplish their
career ambitions. We also encourage
women to become independent and
In 2015, we also continued our regular

monitoring of customer satisfaction
across our network, which helped us to
achieve post better performance scores
than our competitors.
To provide concrete
solutions that will
cater every stage of
a customers life
GOAL
162
productive members of society. In

addition to meeting the needs of our
Senior Citizens with products and
services tailored to them, we provide
facilities to vulnerable groups facing
UHUJPHSKPMJ\S[PLZ^P[OTVYLZ\Z[HPUHISL
WYVK\J[Z[OH[OLSW[VL_WHUKUHUJPHS
inclusion in the country. In line with
V\YJVTTP[TLU[PUMVZ[LYPUNUHUJPHS
inclusion, we also engage in noncommercial activities that promotes
NYLH[LYUHUJPHSSP[LYHJ`HUKNLULYHS
wellbeing among the masses.
To ensure that all our offerings are
capable of meeting market expectations,
we have in place a documented Product
Policy, which sets out guidelines for
the introduction, maintenance, and
discontinuation of products and outlines
the duties and responsibilities for
WYVK\J[SLHKLYZ;OLWVSPJ`ZWLJPJHSS`
states that the Managing Director shall
be responsible for implementing and
ensuring compliance with the product
policy, and any other relevant standards,
procedures, directives and guidelines of

Sampath Bank. Summarized below are
the key aspects of our Product Policy.
3URGXFW,QWURGXFWLRQ
Shall not adversely affect the risk
appetite of the Bank.
Shall not breach any law or
regulation in any manner
Changes should be completed
through prevailing procedures as
per the directives of the Bank
Each product should have a
product manager, product sponsor
and a proper business ownership
Suitable employee training and
awareness building should be
carried out prior to launch
Approval should be obtained from
corporate management
3URGXFW0DLQWHQDQFH
Regular monitoring to assess
market responsiveness to the
product

)PHUU\HSWYV[HIPSP[`HUHS`ZPZHUK
target measurement
Annual review to establish product
relevance and suitability to current
market demand
3URGXFW'LVFRQWLQXDWLRQ
Obtain reviews from relevant
authorised parties such as
Risk, Compliance, Internal
Audit, Systems Audit and Legal
Departments
Discontinuation should be
performed as per the procedure
stipulated by the Bank
All customers should be
made aware regarding the
discontinuation
G4-PR 06,07
Status
Products or services banned in certain market
No
Products or services subjected to stakeholder questions or publicly

debated
No
5VUJVTWSPHUJL^P[OYLN\SH[PVUZHUK]VS\U[HY`JVKLZYLZ\S[PUN[VHULVY No
penalty
1HZ3URGXFW'HYHORSPHQWVIRU
2015
Sampath Bank Fitch Ratings A+(lka)
Thrift Month Message
&KLOGUHQV6DYLQJV$FFRXQW A series
of new value additions were introduced,
to enhance both the Sampath Pubudu
and Sampath Sapiri Minor Savings
WYVWVZP[PVU;OLTVZ[ZPNUPJHU[
development was the introduction of a
JHZOYL^HYKZZJOLTLZWLJPJHSS`[V
recognize account holders who gained
high scores at the annual Grade 5
Scholarship examination. A total of
9Z^HZJYLKP[LK[V[OLYZ[
batch of recipients comprising of 35
Sampath Pubudu and Sampath Sapiri
minor savings account holders, who had
excelled at the August 2015 examination.
Further, the Bank rewarded schools of
163
Selection Process-Ithurum Siththam Competition
the top high scorers of the island with

Rs 270,000/-. The Ithurum Siththam
- a competition aimed at nurturing the
savings habit at a very young age, was
also launched in September 2015.
Opened to both Pubudu and Sapiri
account holders, the competition drew
a large number of participants from
across the island and was successfully
concluded in line with the Childrens day
celebrations in October 2015. In another
value added initiative, a free medical
camp was organized exclusively for
Sapiri and Pubudu account holders.
Part of the Childrens day celebrations,
the medical camp was held on 3rd
October 2015, at the Matara Shariputhra
Secondary School, with over 150
participants being offered free general
health, dental, ophthalmic screening in
addition to nutritional and dietary advice.
Those who earn a pension of Rs 15,000/or more are entitled to a loan of up to Rs

1,000,000/-, with no further collateral or
guarantors.
6DPSDWK%DQN$PHULFDQ([SUHVV
(YHU\GD\&UHGLW&DUG Launched in
partnership with American Express,
the Sampath Bank American Express
Everyday Credit Card is currently the
only credit card in Sri Lanka to offer

a year round Cash Back feature.
;VWWLK\W^P[OILUL[ZHUKZH]PUNZVU
transactions made, the card is designed
to complement the lifestyles of young,
upwardly mobile individuals who seek to
strike a balance between savings and
spending. This Cash Back feature is
a direct reward program that entitles
Cardmembers to have a percentage
of their spend on goods and services
credited back to their card in monetary
terms. As a part of the onboarding
strategy, the card also entitles its
Cardmembers to a welcome offer that
WYV]PKLZ[OLT[OLILUL[VMOH]PUN
5% of their expenditure on goods and
services cashed back to their account for
[OLYZ[TVU[OZVMTLTILYZOPW-YVT
the 4th month onwards Cardmembers
will receive a Cash Back of up to 1%
based on the value of goods and services
purchased per month.
Sampath Bank American Express
Everyday Credit was launched during
the last weekend in November 2015
at a novel event held at the Arcade
Independence Square, where customers
were able to obtain their Sampath Bank
American Express Everyday Credit
Card, on the spot at the venue itself on
any one of the two days.
6DPSDWK6DPDFKDUD6SHFLDO/RDQ
6FKHPHIRU6WDWH3HQVLRQHUV
A special loan scheme tailored especially
for state sector retirees, the scheme is
based on the monthly pension earned.
Launch of Sampath Bank American Express Everyday Credit Card
164
([SDQGLQJWKH6DPSDWK%DQN
HFRPPHUFH3ODWIRUP In response to
the growing popularity of e-commerce,
a conscious effort was made to expand
the online partner network, providing the
mass market with access to a wide range
of B2B and B2C solutions.
$QDO\WLFVRIWKH(YHQW
Cardmembers were also able to

PTTLKPH[LS`L_WLYPLUJL[OLILUL[ZVM
the Sampath Bank American Express
Everyday Credit Card while shopping
at merchant outlets at the Arcade,
Independence Square including a range
of lifestyle brands, restaurants, cafs and
entertainment options.
6DPSDWK&DUGV7RZQ2Q6DOHLQ-DIIQD
A unique experience that combines
ZOVWWPUNZH]PUNZHUKM\USSLK
weekends, the Town On Sale promotion
was extended to the people of Jaffna
on the 12th and 13th of September
0UP[ZM[O`LHY[OL;VÛVU:HSL
offer, is an extravagant promotion which
gives Sampath Credit Cardholders the
privilege of purchasing at selected local
partner outlets and availing themselves
of exclusive discounts on a wide range of
goods and services. The Jaffna Town on
Sale promotion offered Cardholders an
attractive 25% discount at 24 selected
local partner outlets ranging from
supermarkets, restaurants, consumer
durables, clothing, entertainment and
hotels.
6WUHQJWKHQLQJWKH$OOLDQFHEHWZHHQ
6DPSDWK&DUGVDQG&DUJLOOV)RRG&LW\
6XSHUPDUNHW&KDLQ In addition to the
special seasonal proposition offered in
the past, the new discount offering is
aimed at mapping the regular needs
of the consumer by offering a range of
weekend discounts on fresh produce.
The programme was extended at all 293
Cargills Food City outlets island-wide.
(DV\,QVWDOOPHQW6FKHPHIRU
6DPSDWK&DUGV Under their exclusive
Easy Installment Scheme, Sampath
MasterCard and Visa Credit Cardholders
are able to purchase high-value products
from over 2,000 partner merchants on an
installment plan of their choice ranging
from 12, 18, 24 or 36 months, with one
installment waived off from the chosen
installment plan. Aside from the obvious
cash savings, this payment plan allows
them to match the installment with their
payment capacity over the next few
years. Cardholders made use of the
plan to purchase among other things,
electronics, household items, travel
packages, jewellery from a wide range of
renowned local and international brands.
6SHFLDO'LVFRXQW
,QVWDOOPHQW3ODQVRQZZZUHWDLOJHQLXV
FRP Under this promotion, Sampath
Bank, MasterCard and Visa Credit
Cardholders were offered a 15%
discount on the total bill together with a
0% interest-free installment plan, when
purchasing products from retailgenius.
com, Sri Lankas premier online market
offering leading international brands
of electronics, mobile phones, phone
accessories, TV appliances and cameras,
clothing, fashion accessories, home
improvement and lifestyle products.
,QWURGXFWLRQRI6DPSDWK9LVD3ODWLQXP
'HELW&DUG (M\SS`LKNLKWYVK\J[
that offers international recognition
together with a host of special offers &
]HS\LHKKLKILUL[ZHZZVJPH[LK^P[O
Visa International. Geared to support the
dynamic lifestyles of todays customer,
the Sampath Visa Platinum Debit Card
NP]LZ[OL\ZLYT\JOULLKLKL_PIPSP[`
through a higher ATM withdrawal limit
(Rs125,000/- per day) and up to
Rs 300,000/- per POS transaction.
Further, as a chip-enabled offering, the
Sampath Visa Platinum Debit Card is
equipped with multiple security protocols
to prevent / detect unauthorized access.
5HDOLJQLQJWKH'LVWULEXWLRQ0RGHO
Our Multichannel Distribution Strategy
provides customers with a complete
suite of products and services across
all channels. Our aim is to increase the
effectiveness of our branch networks as
well as improve our digital services, so
that our customers can enjoy a consistent
banking experience on their preferred
channel.
165
GOAL
Integrating all
channels to create
a superior customer
experience, while
leveraging on global
trends to bring
innovative services
to the market more
quickly and upgrade
our services as a
multi-channel bank
&UHDWLQJD'LVWLQFWLYH%UDQFK%OXHSULQW
Starting from our innovative new layouts,
all Sampath Bank branches seek to
provide customers with an exceptional
service that is both distinct and different
from our peers. We make it a point to
ensure that all Sampath Bank branches
are situated in easily accessible central
locations in order to offer the widest
possible reach to the people of the area.
With a minimum of 2,500 square feet
VVYZWHJL[OLHYJOP[LJ[\YLVMLHJO
branch conforms to the Banks design
guidelines for exteriors and interiors. This
not only helps to retain the unique visual
appeal of the Sampath brand identity, but
HSZVWYPVYP[PaLZ[OLMVSSV^PUN"
pawning and remittances related services

on Saturdays and Sundays as well. In
addition to this, the 12 Super Branches
remain open, on all 365-days of the year,
from 8.00 am to 8.00 pm.
&XVWRPHU 6DIHW\
Structural safety of each branch in line
with the Banks safety guidelines.
Assist a customer to use Cash Deposit KIOSK
$FFHVVLELOLW\
In addition to its central location, each
branch is equipped with the minimum
number of parking slots. Moving forward
we are seriously looking at introducing
disability access facilities at branches
across the island. In the case of older
branches, efforts are being continued to
introduce the necessary facilities.
&XVWRPHU&RQYHQLHQFH
(SSM\SS`LKNLKIYHUJOLZHJYVZZ[OL
island are open for business from 8.30
am to 3.00 pm on all working days. Of
these, a few selected branches offer
166
All 225 Sampath Bank branches are

equipped with a minimum of one on-site
ATM while 40 branches are equipped
with cash deposit kiosks.
A beacon of hope
for Godakawela
Located in the Ratnapura District
and approximately 45 Kms
southeast of Ratnapura town,
Godakawela lies at the heart of
the Sabaragamuwa province.
Surrounded by small agricultural
communities, Godakawela, has
of late, shown signs of strong
growth. However, despite gaining
prominence as emerging township
in the region, a study of the area
revealed that nearly 50% of the
population of Godakawela and
surrounding areas were not attached
to the formal banking system. The
main reason for the large number of
unbanked, was found to be the lack
of suitable banking facilities within
a 20 Km radius of the Godakawela

town. In fact those who seeking
banking facilities had to travel over
1 hours to Ratnapura.
Commissioning of Sampath Banks
Godakawela branch in December
OHZM\SSSLKHSVUNMLS[ULLK
PU[OPZ[VÛHUKHZHM\SS`LKNLK
offering, the new branch provides
the full range of products and
services to support the needs of
businesses and communities in
the area. Most notably the vehicle
leasing facilities have proven to be
a strong entry-level platform from
ÔPJO[VWYVTV[LNYLH[LYUHUJPHS
inclusion in the region.
CostHIFLHQF\
(SSM\SS`LKNLKIYHUJOLZVWLYH[L^P[O
a team of 6, all of whom perform cross
functional roles.
Meanwhile, as we strive towards
becoming a multi-channel bank,
many of our key branches have been
equipped with a special counter to assist
customers to make the move towards
digital banking. The services offered here
include, sign up and use of Sampath
Vishwa Internet Banking, download and
use of the Sampath Mobile App etc.
To complement these efforts and ease
customers into the process, touch-pad
enabled self-service sign-up facilities were
also introduced.
,PSURYLQJ'LJLWDO6HUYLFHV
We know that at present, our customers
use a mix of channels, but they appear
to be turning more and more to nonbranch options for many of their banking
needs. Our goal is thus to enhance our
digital capabilities to provide a more
personalized, streamlined and robust
online banking experience.
Therefore, the decision to focus on digital
delivery channels was an obvious one.
It is a bank-wide initiative to transform
the manual banking function into a
self-service digitized operation. The goal
here was to digitalize the entire gamut of
banking services and special emphasis
was given to create an environment
VMJVU]LUPLUJLHUKLMJPLUJ`MVY[OL
customer.
.H\'HYHORSPHQWVLQ
Catering to ever-growing mobile
generation who prefer the mobility and
convenience associated with hand-held
devices, the Sampath Vishwa Internet
banking model seeks to provide a
one-stop-shop for all banking needs.
With this goal in mind, a number of
changes were introduced in 2015, to
\WNYHKL[OLJ\YYLU[TVKLS"PUJS\KPUN
simplifying the online sign-up process,
Sampath Vishwa Internet Banking Solution for Hand-Held Devices
implementing self-assigned daily transfer

limits, streamlined payment templates
and diverse bill payment options among
others.
Enhancements to the Sampath Vishwa
Corporate Internet Banking module, now
allow business corporates to use the
Sampath Vishwa portal to perform B2B
operations using the World Wide Web.
This new feature also allows complete
control over their collection function and
facilitates better management of trade
related operations, monitoring supply and
value chains and administering statutory
payments.
The Mobile Cash concept was also
integrated with Sampath Vishwa,
Corporate Internet Banking suite,
allowing corporates to make transfers
to customers who are non-Sampath
account holders as well. This new
development has enabled Business
Corporates to expand their reach to a
wider island-wide demographic. Among
the key developments for corporate
clients was the launch of a fully integrated
UHUJPHSI\ZPULZZZVS\[PVUÔPJOHSSV^Z
corporates to completely automate their
UHUJLM\UJ[PVUPTWYV]L[OLPYV]LYHSS
VWLYH[PVUHSLMJPLUJ`HUKILUL[MYVT
lower administrative costs.
Mobile banking remains at the core of

our multichannel strategy. Our goal is to
enable all of our customers, regardless
VM[OLPY[LJOUVSVNPJHSWYVJPLUJ`[V
easily access our services via tablets and
smart phones. As such, we continue
to strengthen our mobile banking
capabilities to cater to the anytime,
anywhere attitude of todays smart
phone users. In 2015, we upgraded
our smart phone app and introduced
version 2 of the Sampath Mobile Banking
app. Available on the iOS and Android
platforms the app now offers direct
connectivity through all key social media
platforms including facebook, twitter and
linked-in.
The app has proved to be immensely
popular among our customers and as
at 31st December 2015 our mobile app
has been downloaded more than 85,000
times since its launch in 2013.
The introduction of the online loan
application tool was another groundbreaking move aimed at expanding
the number of online access channels
available to customers to submit their
loan requests. Security protocols were
also tightened to ensure the safety,
security and maintenance of customer
privacy across all e-banking platforms.
167
WV^LY[VHWWLHS[V[OLPKLU[PLK
target market by making a distinct
impression
7UDQVSDUHQF\ To maintain a
greater level of accountability,
the Bank strives to make all
communication as transparent
and open as possible, without
disclosing sensitive information and
trade secrets
3URDFWLYLW\To embrace new
technologies and explore unique
ways in which to use existing
mediums to connect with
customers
&ODULW\ To send a clear and
uniform message that is free of
unnecessary jargon
0XOWLOLQJXDOAll communications
are structured on a trilingual format
3UHVHQWLQJ2XUVHOYHVWRWKH
&XVWRPHU
Our approach is set out in the Sampath
Bank PLCs communication policy,
ÔPJOKLULZOVÎLZ[[OL)HURZOV\SK
present itself to selected target markets.
It also underpins the overall marketing
and branding strategy, which is then
cascaded down to each promotional
campaign and across all mediums,
NV]LYULKI`[OLMVSSV^PUNWYPUJPWSLZ"
(IFLHQF\ The timely use
of modern communication
technologies in order to create a
successful campaign that has the
GOAL
Supporting the
Customers
Right to Know
by providing
clear, concise
and unbiased
information
regarding Sampath
Bank PLCs
products and
services
Brochures
and
Pamphlets
)HHGEDFN Encouraging regular

feedback from the customer
regarding brand perception and
relevance of communication
strategy
0DUNHWLQJ&RPPXQLFDWLRQV
As a rule, we ensure that all advertising
content and promotional material
released under the Sampath Bank PLC
banner complies with the legal disclosure
requirements issued by the CBSL,
CSE, SEC, CA Sri Lanka or any other
YLN\SH[VYÌVK`YLSH[LK[V[OLUHUJPHS
services sector in Sri Lanka. Additionally,
the impact of industry benchmarks and
[OLPU\LUJLVMJ\YYLU[ZVJPHS[YLUKZHYL
also deemed to be vital, particularly when
formulating localized branch campaigns.
Traditional
Advertising
E-Channels
6DPSDWK%DQN
3URGXFW,QIRUPDWLRQ
DQG$FFHVVLELOLW\
24 Hour Call
Centre
Corporate
Website
Branch
Merchandising
Social Media
168
Specific
Product Related
Information
Accompanied
by Application
Forms
Scope: Island-wide and Branch-level Campaigns
Key Thrust: Thematic / Tactical
Campaign Title
Geographical Area
No of Campaigns Target Market
Product Category
Sampath Bank
Avurudu Offer
Sri Lanka
01
All Sri Lankans
Savings
Sampath Leasing
Quarter
Sri Lanka
01
All Potential Customers Lending
Scope: Island-wide, Localized and Branch-level Campaigns
Key Thrust: Thematic/Tactical
Campaign Title
Geographical Area
No of Campaigns
Target Market
Product Category
Sampath Bank
Corporate
Sri Lanka
01
All Sri Lankans
Corporate
Sampath Bank Town

On Sale - Jaffna
Jaffna
01
Sampath Bank credit

cardholders, all
potential customers
in Jaffna
Credit Cards
Other Communication Programmes for the year 2015

Indicator
No of Programmes
Target Market
Sponsorships
240
Sri Lankan Community (considering requests)
Sampath Avurudu Udawa 2015
Sponsoring of COYLE Sampath Bank Entrepreneurial Forum
G4-PR 05
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&DVH6WXG\
Customer Survey Brand Tracking
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3HULRGRI5HVHDUFK
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The Nielsen Company Lanka (Pvt) Ltd

January to December 2015
Quantitative Sampling
Random
1,000 per quarter
Colombo, Galle, Kandy and Kurunegala (Urban and Rural)
First commissioned in 2014, this is the

second consecutive year that we are
conducting the brand tracking exercise
to map customer perceptions regarding
the Sampath brand. Conducted by
The Nielsen Company Lanka (Pvt) Ltd,
the 2015 study involved the random
sampling of over 1,000 members of
the general public per quarter, some of
169
who may or may not be customers of

[OL)HUR;OLUKPUNZMYVT[OPZZ[\K`
have revealed that the Sampath brand
retains a consistently high brand value,
notwithstanding industry challenges,

ÔPJO\UKV\I[LKS`[LZ[PLZ[V[OL
success of our advertising and branding
strategies.
Harnessing the Power of

Social Media
At Sampath Bank, we believe our
social media presence is a powerful
means to establish and leverage our
brand promise. Our emphasis on
social media does not stem from a
simple need to have a presence, but
rather from our aspiration to change
the way we communicate, exchange
ideas and collect feedback on our
products and services. Keeping
abreast of customer needs serves
as a constant reminder that we can
\WNYHKLV\YZLY]PJLZMVY[OLILUL[
of the customer.
In 2015, we carried out a

number of social media initiatives
primarily to strengthen customer
engagement and gauge the
usability of each platform. Our goal
was to differentiate ourselves by
focusing on the engagement of
the customers rather than mere
association based on likes. This
helped us to conduct a micro
analysis of customer satisfaction
and address key areas of concern,
thereby improving our offerings and
raising overall service standards.
Dedicated
Social Media
Monitoring
Unit
More than
176,000
fans joined in
facebook
5 Social Media
Platforms
G4-PR 03,04
Since 2013, Pyxle has been actively involved in cultivating Sampath Banks social
TLKPHWYLZLUJL(TVUN[OLYZ[[VLU[LYZVJPHSTLKPHZWHJL[OL)HURSH\UJOLK
www.facebook.com/Sampathbankplc, in January 2014, followed soon after by
@V\[\ILHUK3PURLKPUWSH[MVYTZ:HTWH[O)HUR^HZHSZVVULVM[OLYZ[IHURZPU
Sri Lanka to establish an active Twitter handle in May 2014. These efforts indicate a
strong commitment to create a robust social media presence.
It is encouraging to note how Sampath Banks social media presence has grown
over the years, with a strong follower base across all platforms. I believe this is
mainly due to the timeliness and relevance of the content provided which has
resulted in greater customer engagement across multiple social media channels. In
fact, the recent live streaming of the Sampath Bank American Express Everyday
Credit Card launch received an unprecedented number of live views on Youtube,
ÔPJOZPNUPLZ:HTWH[O)HURZZOPM[[VILPUNH[Y\S`KPNP[HSS`LUHISLKIHUR
Oshada Senanayake
Director
Pyxle (Pvt) Ltd (Sri Lankas premier Social Media Monitoring company)
170
3URGXFWDQG6HUYLFH/DEHOOLQJ
Our goal has always been to provide the
J\Z[VTLY^P[OZ\MJPLU[PUMVYTH[PVUVU
each Sampath Bank product or service,
so that they may fully understand our
value proposition and be able to make
an informed decision. To do this we use
HYHUNLVMTLKP\TZPUJS\KPUN"IYHUJO
network, media (press, TV, radio),
^LIZP[LZVJPHSTLKPHSLHL[ZL[J
:HTWH[O)HURZUHUJPHSWYVK\J[ZHUK
banking solutions have been developed
in strict conformity with the product policy
outlined above, which mirrors the national
regulations for banking products.
As such, there are no reported

regulatory violations or any incidents of
non-compliance with voluntary codes
in relation to disclosure of product

information and labelling for any of our
products or services.
Compliance with GRI requirements for Product and Service Labelling information
Type of Information
YES
The sourcing of components of the product or service

Content, particularly with regard to substance that might
produce an environmental or social impact
Disposal of the product and environmental /social impact
&XVWRPHU+HDOWKDQG6DIHW\
Given the nature of our business as a
bank, the impact of health and safety
aspects cannot be assessed with regard
to our products and services. However,
our determination to ensure customer
wellbeing has led us to formulate
products and services that do not in any
way impair or harm the health and safety
of our customers.
In 2015, there have been no complaints
reported regarding any adverse health
and safety impacts arising from our
products or services. Further, there were
no reported incidents of non-compliance
with regulations or voluntary codes, and
hence the Bank has not been subjected
[VHUÙLZVYSP[PNH[PVUPU[OPZYLNHYK
during the reporting period.
N/A
Safe use of the product or service
G4-PR 01,02
NO
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THUHNLTLU[
JLU[LY^HZ
ZL[\WH[[OL
WSH[PU\TJLU[LY
N/A
G4-PR 08
&XVWRPHU3ULYDF\
As a responsible banking institution in
the country, we have always upheld
the customers right to privacy. In this
regard, we are guided by our anti-fraud
policy, whereby, the following measures
have been integrated into our day-today operations in order to ensure that
customer privacy is upheld at all times.
Terminal Line Encryption (TLE) at
POS terminals located island wide
with the intention of preventing risk
of counterfeit credit card
Additional security for credit card
holders via added encryption for
chip enabled cards
SMS alerts to notify each
transaction
Direct call-outs to customer to
verify the authenticity of high-value
transactions
Meanwhile, the Internet payment gateway

was upgraded with the introduction
of multi-layer security protocols (both
vertical and horizontal), improvements
[V[OLIHJRVMJLPU[LNYH[PVUZVM[^HYL
YLUPUN[OLWH`TLU[ZLY]PJLZTLJOHUPZT
and reducing procedural complexity and
paperwork.
Given the strict measures taken to assure
customer privacy at all times, there have
been no complaints reported regarding
any breach of customer privacy or loss
of customer data during the reporting
period.
2QJRLQJ3URFHVV8SJUDGHV
Among other things, in 2015 we launched
the Central Credit Processing Unit
(CCPU), a dedicated credit evaluation
unit operated under the authority of Head
6MJL)YHUJO)HURPUN+P]PZPVU;OL
CCPU is an innovative mechanism set up
[VVMMLYHZWLLKÙHUJPHSZVS\[PVU[V[OL
large volume of direct loan requests that
come in from various sources including
web, print mediums and on the 24-hour
call centre hotline. Once loan requests /
applications have been scrutinized and
processed by the CCPU, the branch
nearest to the client is appointed as the
liaison to follow through on the next stage
of the loan facility. During the 11 months
6MJPHS)HURLY[V*VSVTIV0U[LYUH[PVUHS)VVR-HPY
171
period since its launch in February 2015,

the CCPU has successfully served 1,330
customers.
A wealth management centre was set
up at the platinum centre. Aimed at
expanding the corporate client portfolio,
the wealth management centre is a
dedicated unit that is geared for the
needs of corporates and high net-worth
individuals.
6HUYLFH$VVXUDQFH
We believe, all employees should make
a conscious effort to assist a customer
PUUKPUNV\[ÔH[OLVYZOLULLKZ
GOAL
To make our
processes more
L_PISLHUK[V
create products
and services that
HYLHWLYMLJ[[MVY
the expectations
of both retail
and corporate
customers
and in resolving any problem, if there

is one. As per our normal procedure,
when a customer initiates contact with
frontline colleagues in our branches or
call centres regarding a complaint, we
strive to provide an immediate solution
for these complaints. However, if more
time is needed to resolve a problem,
we feel it is vital that we Go that extra
mile for the customer and provide a
concrete solution to the issue in question.
Having determined the nature of the
issue, frontline staff shall, to the best
of their knowledge and capacity, direct
the customer to the person / authority
to be approached for resolution and
172
the manner of doing so. The respective

manager-in-charge should then launch
a collective team effort to resolve the
issue within the stipulated maximum of
^VYRPUNKH`ZMYVT[OLKH[LVM[OLYZ[
complaint.
GOAL
Continuous training
of Relationship
Managers so that
they may offer
high-quality services
and solutions
that will meet our
customers exact
needs.
As part of the post-solution follow-up

procedure, the manager-in-charge is
also expected to personally reach out
to the customer to ascertain if they are
ZH[PZLK^P[O[OLZVS\[PVUWYV]PKLK
Customers are then invited to share their
experience and encouraged to rate our
performance.
our network managers should be

able to adapt and transform into true
multichannel coordinators. This means
that for the foreseeable future, banking
will require a special blend of soft and
hard skills needed to improve customer
satisfaction.
&RPSOLDQFH
G4-PR 09
We have always strictly complied with all

mandatory laws and governing standards
and legislations relating to the advertising
and branding of banking products and
services. Moreover, it is mandatory that
all employees work within the customer
rights framework at all times. Given these
rules, no incidents on non-compliance
with laws and regulations or breach of
customer privacy were reported within
the reporting period. Further, there have
been no reports of a breach of laws and
regulations concerning the provision
and use of products and services.
Accordingly, the Bank has NOT been
Z\IQLJ[LK[VHUÙLZTVUL[HY`VYUVU
monetary) on account of non-compliance.
G4-50
An operational guide book was also

introduced as a quick reference guide
for all staff. It has been uploaded to
[OLPU[YHUL[[VPTWYV]L[OLLMJPLUJ`
of use. Right now directives are on the
intranet and can be searched using a
key word. But the quick reference guide
is expected to reduce the time spent on
searching.
We realize that cultivating a strong
rapport with our customers in todays
increasingly complex, multichannel
IHURPUNLU]PYVUTLU[PZPUMHJ[HUL
art. As new banking channels become
increasingly important to our operations,
There have been no complaints

of any unresolved critical issues
VYZPNUPJHU[Z\Z[HPUHIPSP[`
concerns during the reporting
period. All customer inquiries
regarding business operations
have been successfully
resolved at the respective unitlevel itself.
Maximizing YES
Programme
2EMHFWLYH
A special programme carried out
in 2015, to improve the level of
customer satisfaction by directly
targeting Assistant Managers of
branches who are directly involved
with handling daily operational
work. The initiative was primarily
aimed at training frontline staff on
how to be more proactive when
addressing needs of customers
and minimize number of times they
say No to a customer.
6FRSH
;OLYZ[WOHZLVM[OLWYVQLJ[ZH^
225 Assistant Managers being
assigned to series of practical
scenarios, which required them to
think out-of-the-box and make a
spontaneous decision that would
keep the customer happy. Each
participant was assessed on the
time taken to respond, the nature
Rule 2:
If the front line staff member does in fact
say NO to the customer, the following
WYVJLK\YLZOV\SKILZ[YPJ[S`MVSSV^LK"
The respective Assistant
Manager should be informed
immediately and solutions should
then be provided promptly
Each Assistant Manager should
maintain a weekly record of all
such incidents where front liners
under their supervision, have said
NO to the customer
At the end of the week, The
DGM-Operations should be
provided with a report indicating
all incidents that have taken
place over the week
The DGM Operations
would then decide if current
operational guidelines need to be
strengthened in order to avoid
such occurrences in the future to
ensure adherence to the YES
maximization principle at all times
of the response, the chain of command

followed etc. All participants were then
instructed on how best to safeguard
customer satisfaction in a high-pressure
situation.
2XWFRPH
Upon conclusion of the training
sessions, a formalized reporting
structure was created to assist frontline
staff in providing the best possible
customer service. It is hoped that the
learning experiences gained through
this process would help minimize
the need for such occurrences and
guarantee a new level of customer
satisfaction.
)RUPDO5HSRUWLQJ6WUXFWXUH
Rule 1:
Front line staff will always strive to
say, YES to the customer (thereby
minimizing the number of times the
customer receives a NO response)
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'53
GOAL: To ensure
the uninterrupted
course of
business,
in the event
critical business
functions are
disrupted
GOAL: To
quantify adverse
impacts to
the business
caused by loss
of capacity to
conduct business
operations
(functions /
processors)
GOAL: To
ensure the swift
recovery of IT
systems following
a disastrous
interruption to the
business
Identify all business processes within

each business unit
+L[LYTPULUHUJPHSJ\Z[VTLY
operational, legal and/or regulatory
impacts of each process
+LULRL`PU[LYUHSHUKL_[LYUHS
relationships and ascertain interdependencies between processes
Establish a time frame to recover
business and technology processes
Assign necessary resources required
for the recovery of each process within
the predetermined recovery time frame
Provide a foundation for the Risk
Assessment and Control Process
Carryout regular disaster recovery drills
to ensure the business continuity in
case of a disaster
173
Informing Our
Investors
Our goal is to provide shareholders
with a timely, accurate and balanced
disclosure of all material information
about Sampath Bank PLC.
G4-24,26,27
Ensuring long term shareholder value and upholding the rights of the shareholder
and supporting a broader shareholder constituency to ensure their Wealth
Maximisation
Primary Engagement
Mechanisms
Frequency of
Engagement
Shareholder relations forums
General meetings
A/P
Annual Report
0U[LYPTUHUJPHSZ[H[LTLU[Z
Disclosures and announcements

on CSE
6MJPHS^LIZP[L
Correspondence
CSR projects
Dividend per Share and

Dividend Pay Out Ratio
Rs
39.1
37.6
10
40
34
28
8
6
22
4
16
2
10
2015
Dividend per Share (DPS)

Dividend Pay Out (DPO)
174
36.5
13
12
37.4
11
14
2014
To add further value, we encourage our

shareholders to share their views through
engagement across multiple channels.
This means continuous monitoring of
shareholders needs and the provision
of timely, information in response to
these external inquiries. Also refer pages
133 to 142 of this report for Investor
Information information.
We have always worked to build strong

bonds with our shareholders and in doing
so, recognize the importance of being upfront and transparent about our activities.
Our goal is to provide shareholders
with a timely, accurate and balanced
disclosure of all material information
about Sampath Bank PLC. At the same
time, we strive to offer fair and equal
access to such information including, the
SH[LZ[UHUJPHSYLZ\S[ZTHYRL[Z[YH[LNPLZ
key achievements, long-term goals and
regulatory disclosures, among others.
R Regularly
2013
Q Quarterly
12
P Periodically
Shareholder satisfaction
regarding the Banks
UHUJPHSWLYMVYTHUJL
and position
Shareholder views on
key governance and
policy matters
Development
of shareholder
communication channels
Financial results
Return on equity
Strategy and continuity
2012
A Annually
>LLUJV\YHNL
V\Y
ZOHYLOVSKLYZ
to share their
]PL^Z[OYV\NO
LUNHNLTLU[
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JOHUULSZ
Collaborating
with Our Partners
As our business evolves, so do our business partners and
over the years, we have come to rely on the products and
services of a wide range of suppliers and service providers
and outsource partners
G4-24,26,27
Striking the right balance between cost and quality and promoting ethical and
transparent sourcing practices
Primary Engagement
Mechanisms
Frequency of
Engagement
Interactions supported by the

purchasing policy
Feedback forms
R
P
Meetings
Visits to suppliers workshops /

VMJLZ
P Periodically R Regularly
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Being in the business of banking,
many of our products, services and
processes are developed in-house.
However, in order to be able to
maintain the highest overall quality,
we do seek the assistance of third
party service providers, as and when
needed. As our business evolves, so
do our business partners, and over
the years, we have come to rely on the
products and services of a wide range
of suppliers and service providers and
outsource partners in order to carry out
certain core-banking functions and
other non-banking operations.
Developing strategic
partnerships
Promoting transparent
and ethically
responsible business
practices
In doing so, we have always sought

to ensure that these relationships are
sustainable and in line with standard
social and environmental parameters.
Towards this end, we strive to promote
local sourcing, wherever possible
and practical, as part of our inclusive
procurement strategy. In the long
run, we believe these measures will
not only lead to greater cost savings,
V]LYHSSWYVJLZZLMJPLUJ`HUKNYLH[LY
internal control for the Bank, but
also trigger a positive social and
environmental impact as well.
7KH3URFXUHPHQW&RPPLWWHH
All outsourcing activities come under
the purview of the Banks procurement
committee, headed by the Managing
Director. The Procurement Committee
is responsible for the evaluation and
selection of suitable suppliers, service
providers as well as premises to be
taken by the Bank on lease and also for
approving certain high value payments.
During the evaluation and selection
process, the Procurement Committee is
always guided by the principle of Five
Basic Rights namely Right Quality, Right
Source, Right Time, Right Quantity and
Right Price, in approving suitable parties
as service providers and suppliers to the
Bank.
We strive to
WYVTV[LSVJHS
ZV\YJPUN
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WYHJ[PJHSHZWHY[
VMV\YPUJS\ZP]L
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175
Collaborating with Our Partners
6DPSDWK%DQN6XSSOLHU(YDOXDWLRQ0RGHO
G4-12
Industrial Safety
and Environmental
Protection
Financial Stability
Market / Dependability
Availability / Delivery
Capability
Human Resources
Schedule / Volume
Effectiveness
Technical Handling
Packing
On Time Delivery
Supplier
Registry
ercial
Comm y
b
ia
V ilit
After Sales Services and

Availability of
Qualified Technical Staff
Documentation
Co-operation
Quality Management
Supplier Quality
Management
ly
pp isk
Su R nt
ain me
Ch age
n
Ma
The goal here is to promote a transparent

procurement mechanism that would
ensure fair and equitable purchasing
practices. Accordingly, our procurement
policy spells out in detail, the guidelines
by which all procurement activities
at Sampath Bank PLC are done.
Underpinned by strict professional ethics
at all times, the policy is based on a
tender procedure that creates a healthy
176
level of competition. It is comprehensively

structured to cover all aspects of sourcing
and procurement, including following
critical areas, among others.
Supplier selection guidelines in

conformity with international best
practices for anti-corruption, anticompetitive behaviour and good
business ethics
Pe Sup
rf
p
an orm lier
ag an
em ce
en
t
Price
Quotation Behaviour
Contract
Processes
Co-operation
Supply Chain Management
ion
at
ov
Lo
Me gistic
cha s
nis
m
As
ty
ali
Categories
and
Criteria
Inn
Resources
Product / Know-how
Innovative Power
Co-operation
Qu
R
ses isk
sm
ent
ial
Industr
Safety
Ethical responsibility to ensure

compliance with ILO (International
Labour Organisation) standards
relating to fundamental human
rights, child labour, working
conditions, equal pay and health &
safety parameters
*SLHYS`KLULKHWWYV]HSSPTP[Z
Promoting open dialogue as
the basis of an effective dispute
resolution mechanism
As a part of the aforementioned

procurement policy, we maintain a registry
of reputed and reliable suppliers / service
providers, with a minimum of two potential
candidates each, for core-banking
functions as well as a range of nonbanking operations.
In the case of new activities to be
outsourced, it is deemed that the
member of corporate management
responsible for that function should
ensure that the new activity to be
outsourced, is well within the guidelines
issued by the Central Bank of Sri Lanka
and conforms with the Outsourcing
Policy of the Bank. Once this has been
JVUYTLKHWWYV]HSVM[OL6\[ZV\YJPUN
Committee , Procurement Committee
or the Board of Directors, should be
obtained on a case by case basis.
0DWHULDO$VSHFW6XSSOLHU$VVHVVPHQW
IRU6RFLDODQG(QYLURQPHQWDO,PSDFWV
Given the comprehensive supplier
assessment mechanism that we adhere
[V[OLYLOH]LILLUUVZPNUPJHU[
actual and potential negative social
or environmental impacts reported
with regard to any of our procurement
partners.
Other Sustainability
Disclosures
Nevertheless, in an ongoing effort
to improve our sustainability
parameters, in the future we
expect to map the impact of
the supply chain on each of our
operations individually.
This will help us screen and
measure the actual and potential
negative impact to the society
or community resulting from
the supply chain. We will then
need to work on expanding our
supplier screening and evaluation
criteria to carry out ongoing
impact assessments and identify
suppliers whose core business
is likely to have actual and /
or potential negative social /
environmental impacts.
This includes establishing a
mechanism to assess and screen
new suppliers for impacts on
society or community. Further, we
also hope to introduce a system
to continuously review the labour
G4-SO 09,10/EC 09/

HR 04,05,06,10,11/
LA 14,15/EN 32,33
practices, rights and risk associate

with collective bargaining adopted
by new and existing suppliers and
business partners. Our goal is to
guide them towards full disclosure
regarding potentially hazardous
work conditions, cases of human
rights violations, incidents of child
labour and forced or compulsory
labour, among other things.
These measures also call for
broader policy-level changes on
our part, to enforce suppliers
to be more transparent. This
includes maintaining a human right
grievances record system, based
on which we can then encourage
suppliers to take corrective action
when needed and thereby improve
their overall track record. The
partnerships we then choose to
develop based on this process,
will be truly sustainable as it would
YLZ\S[PUT\S[PWSLILUL[ZMVY[OL
environment, society and its people.
G4-12
We allocate a separate amount

annually as part of the ongoing effort
to expand our procurement practices.
In this regard, improvements to the
record keeping process and supplier
monitoring mechanism have helped
us to increase the proportion of local
purchasing. The main aim here is to

develop a sustainable network of local
suppliers by creating viable business
opportunities and increasing the wealth
creation capacity of local communities
that we serve.
177
Strengthening
Our Communities
We believe it is our duty to ensure that our
actions extend far beyond our day-to-day lives
and continue to enrich the lives of all Sri Lankans
in the future as well.
G4-24,26,27
Working in tandem with global and local mandates that safeguard the environment
and promote community empowerment
Primary Engagement
Mechanisms
Frequency of
Engagement
Ground level interactions with

community leaders at branch level
Media based forums
Interactions with social groups and

volunteer organisations
Feedback forms
Discussions with local government

representatives
Discussions with other

organisations / religious and
opinion leaders on community
development efforts
Branch level / Regional

level activities
Engagement in capacity
building and community
empowerment activities
SME development
forums
Workshops / Seminars
Environmental Projects
Religious activities
R Regularly
G4-SO 01/EN 34
1XPEHURI3URMHFWV,QLWLDWHG
Empowerment of
Community - 18
Education for
Development - 20
Environment Protection &

Conservation - 07
Ethics & Values

- 03
*ULHYDQFHV$GGUHVVHG'XULQJWKH<HDU
Entrepreneur
Development -12
Employee
Engagement 841 Team
Members
G4-SO 11
Total Number
of Grievances
Addressed
Number of
Grievances
Resolved
Scope
76
60
Align with CSR framework and CSR

philosophy of the Bank (Please refer page
180 for formal grievance mechanism)
178
0DQDJHPHQW$SSURDFK
We realize that social development
is an ongoing process, which has a
monumental impact on individuals
and the communities they live in.
For our part, we work cognizant to
both individual and collective needs
of communities, even as we strive
to help them recognize the core
economic barriers that they face.
We believe it is our duty to ensure
that our actions extend far beyond
our day-to-day lives and continue to
enrich the lives of our people in the
future as well. It is this philosophy
that underpins all Corporate Social
Responsibility (CSR) activities of
:HTWH[O)HUR73*HUKYLLJ[ZV\Y
desire to care for all stakeholders of
the business.
6RFLDOO\5HVSRQVLYH&650RGHO
From the inception, CSR has been
an integral part of our DNA. Having
initially adopted a purely charity-driven
(philanthropic) approach, our CSR model
has changed considerably over the
years, with the fragmented approach
used in the past now being replaced by
a transformative CSR approach aimed
at producing a more socially responsive
CSR framework. The move towards the
transformational CSR strategy has also
provided us with a fresh perspective on
how our social and environment initiatives
JHUPTWHJ[V\YUHUJPHSWLYMVYTHUJL
Stemming from this broader systemic
view, we have decided to reinvest back
into areas that need it the most. Our
actions are underpinned by Sampath
Bank PLCs 5E CSR model, which unites
key national priorities with corporate
objectives to address key socioeconomic and environmental issues.
All thematic CSR projects undertaken

by us, therefore seek to address these
national burden issues and bring about

positive change across a broader
community demographic.
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an
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o f C o m m un ity
m u n it y G
ri
Com
g
vin
ol
Re
ss
po
re
uc a
dd
Ed
tio n f or D e ve lo p m e
C om m
unity Engagem
a
Project M nage ment
Goal:
Sustainable
Socio-economic
and Environmental
Progress
E n vir o n m e n t
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r
a
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o
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se r
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Et h
A li g
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De
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CSR Gover nance
6WHZDUGVKLSDQG*RYHUQDQFH
The Bank adopts a comprehensive,
top-down approach towards CSR
governance, to validate the integrity
of each stage of the process. As
such, all CSR activities are carried out
by Sampath Bank CSR fund, which
receives an allocation of 1% of the
HUU\HSWVZ[[H_WYV[Z;OLV]LYHSS
stewardship of the fund is listed under
the Managing Director with designated
appointees to identify and implement
projects under each CSR pillar.
nt
e nt
&65DQG6XVWDLQDELOLW\*RYHUQDQFH)UDPHZRUN
G4-35,36
0DQDJLQJ'LUHFWRU
Overall CSR Leader (DGM - Marketing & Business Development)
/HDGHU
Education for
Development
(DGM - Human Resources)
/HDGHU
Empowerment of
Community
(AGM - Recoveries)
/HDGHU
Entrepreneurship
Development
(DGM - Marketing &
Business Development)
/HDGHU
Ethics and Values
(AGM - Branch Banking)
/HDGHU
Environment Protection
and Conservation
(Chief Manager - Human
Resources)
Brand Manager-CSR (Senior Executive Level)
&65 6XVWDLQDELOLW\2IFHU-XQLRU([HFXWLYH/HYHO
Assistant CSR Projects
Assistant CSR Reporting
6DPSDWK7HDP0HPEHUV
Encouraging each employee to embrace the role of a CSR ambassador
179
3URMHFW0DQDJHPHQW
Sampath Bank PLCs reputation
for integrity has always been a key
component of the Banks business
success and all CSR activities conducted

by the Bank are standardized and
NV]LYULKI`JSLHYS`KLULK*:9
guidelines formulated by the dedicated
*:9*VTTP[[LL;OLN\PKLSPULZWLJPLZ
the measures to be adopted in order to
maintain quality and consistency of all
CSR projects, be it at a national level or at
strategic business unit level.
3URMHFW0DQDJHPHQW3URFHVV
G4-37, SO 01
,GHQWLFDWLRQDQG&DWHJRUL]DWLRQRI&RPPXQLW\*ULHYDQFHV,VVXHV
Education
for
Development
Entrepreneurship
Development
Empowerment
of Community
Ethics and
Values
Environment
Protection and
Conservation
Project Evaluation, Implementation, Monitoring & Stakeholder Engagement
Step 1
Assigning a Unit Level CSR Committee, comprising of Sampath team

members, Community leaders and Customers / Social (non-political) interest
parties representing the area
Step 2
7YLWHYH[PVUVMHWYPVYP[`SPZ[IHZLKVUV\YZ[\KÙKPUNZVIZLY]H[PVUZHUK
community members' views
Step 3
Assigning project objectives, key actions, resource requirements, time frame and
involvement of Sampath team members
Step 4
Assessment of the project against Corporate CSR guidelines, resource

requirements and team involvement
Step 5
Implementing the project in line with a detailed action plan and timeline
Step 6
Continuous monitoring and evaluation of project credentials
Impact Assessment
Grievance Solved?
YES
Reporting and Record Keeping
180
NO
We know that our

CSR vision can only
become a reality
through the continued
commitment, energy
and passion of our
people. Employee
Volunteerism is
therefore deemed
to be the lifeblood
of Sampath Bank
PLCs inclusive CSR
strategy.
6WUDWHJLF$OOLDQFHV
As and when needed, the Bank leverages
on ongoing strategic partnership with
public sector bodies, private sector
PUZ[P[\[PVUZHUKUVUWYV[VYNHUPaH[PVUZ
in the execution of its CSR initiatives.
These strategic partnerships encompass
grass root level relationships as well as
IYVHKLYUH[PVUHSSL]LSHMSPH[PVUZHSSVM
which contribute positively towards each
CSR project.
Further, we depend on our suppliers
for access to reliable and cost effective
products and services that will help to
ensure the quality of our CSR projects
outcomes. As such, we encourage our
suppliers to become partners in our
projects over a longer time frame.
Moreover, in order to meet the
necessary regulatory requirements for
our CSR projects and to facilitate the
smooth functioning of programs and
processes, we also seek the support and
authorization of government regulators,
on a case-by-case basis.
Encouraging Employee Volunteerism
Political Contributions
As an independent service provider to
the nation, the Bank has not granted
nor accepted any political contributions,
either monetary or non monetary, during
the reporting period.
G4-SO 06
(QFRXUDJLQJ(PSOR\HH9ROXQWHHUVLP
We know that our CSR vision can only
become a reality through the continued
commitment, energy and passion of
our people. Employee volunteerism is
therefore deemed to be the lifeblood
of Sampath Bank PLCs inclusive
CSR strategy. We always promoted
the concept of integrity among our
employees by encouraging them to go
beyond the call of duty and volunteer
not only as an obligatory responsibility,
but also as their own choice. It is how
we hope to foster a new breed of CSR
ambassadors who will work for the
greater good of the communities that
they represent.
G4-EC 07
&RPPXQLW\(QJDJHPHQW
Customer feedback is seen as a
vital component that nourishes the
progressive growth of the Bank.
Stakeholder engagement is therefore
an essential part of the Banks CSR
philosophy, where the customer remains
a key focus.
As a socially responsible bank, we are

eager to create meaningful relationships
with the society, not only through our
customer offerings but also through
direct and indirect contact to reach out to
community stakeholders. These strong
social ties have inspired a collaborative
corporate culture, which has helped us
to transmit change exactly where it is
needed. We believe it is also the best way
to gauge the pulse of each stakeholder
cluster, address any possible grievances
and determine what projects to invest-in.
,PSDFW$VVHVVPHQW
We strongly believe that in order
to maintain good relations with the
communities impacted by our work, we
need to be forthcoming about our plans
and transparent about our actions. Hence
we follow a set of policies and practices
that dictate how we conduct our
business responsibly and ethically while
serving the best interest of stakeholders.
G4-SO 02
No VWLYH[PVUZ^P[OZPNUPJHU[
actual and potential negative
impact on local communities
181
G4-SO 01/EC 07
2EMHFWLYH
.H\*ULHYDQFHV
$GGUHVVHG
,PSDFW
Investment
(Rs Mn)
(GXFDWLRQIRU
'HYHORSPHQW
Bridge the social and economic

inequality, provide livelihoods to
those at the base of promoting
education and the dissemination
of knowledge within the country
(PSRZHUPHQW
RI&RPPXQLW\
Address grass root level issues

by providing basic infrastructure
or necessities to enable the
community to improve its lifespan
(QWUHSUHQHXUVKLS
'HYHORSPHQW
Educate entrepreneurs to facilitate

their development and pave the
way for wealth creation than
to increase dependency on
borrowings
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182
Accomplishment of prospective
principles, values, integrity, ethical
behaviour and professional
advancement
Minimize environmental issues

based on social priorities, extend
the message to a large captive
audience of stakeholders and
thereby create knowledge on
environment conservation
Employee
Engagement
Man hours
spent as a %
of Total man
hours spent
5.17
No: 180
Hrs: 2,089
29%
7.07
No: 301
Hrs: 1,860
26%
0.41
No: 109
Hrs: 2,488
34%
0.58
No: 48
Hrs: 158
2%
2.03
No: 203
Hrs: 689
9%
Improving of basic
education facilities
Competency / Skills
development
Development of
infrastructure facilities
Upgrading national
health facilities
Livelihood
development
Contribution to
improve community
value system
Reduction of
environmental
footprint
G4-SO 03,05
$QWLFRUUXSWLRQ
;OL)HURMHJLZUVZPNUPJHU[
risk related to corruption since
all the employees perform
[OLPY^VYRLMJPLU[S`HUKHJ[PU
accordance with the code of
conduct stipulated by the Bank.
Meanwhile, adherence to laws and
regulations of the country including
anti-corruption regulations, are
seen as an unconditional priority.
Compliance to these laws, rules
and regulations are well monitored
and no incidents of corruption
were reported in 2015.
G4-SO 07,08
$QWLFRPSHWLWLYH%HKDYLRXU
Sampath Bank PLC does not
engage in or promote any kind of
anti-competitive behaviour, antitrust and monopoly practices and
therefore has not been subject to
any litigation in this regard, during
the reporting period.
G4-SO 04/HR 01,02
7UDLQLQJRQ$QWLFRUUXSWLRQ
)RFXVIRU
G4-EC 08
(QWUHSUHQHXUVKLS'HYHORSPHQW
(JJLZZ[VUHUJPHSZLY]PJLZPZ[OL
mainstay of socio-economic progress
of any country. However in Sri Lanka, a
larger number of people still do not have
HJJLZZ[VTHPUZ[YLHTUHUJPHSZLY]PJLZ
HUKUKP[KPMJ\S[VYPTWVZZPISL[VVWLU
a bank account, or get a loan to start or
grow a business.
It is therefore, in everyones interests to
enable as many people as possible to
ZOHYL[OLILUL[Z[OH[TVKLYUUHUJPHS
services bring. Stemming from this
broader economic context, we believe
that the livelihood and well-being of the
people, businesses, and communities we
serve today, as well as those we will serve
tomorrow, will undoubtedly depend on
access to critical resources.
Emblematic of this goal, Sampath Bank
PLC has initiated numerous efforts
to reach out the vast rural unbanked
WVW\SH[PVUHUKL_WHUKUHUJPHSPUJS\ZPVU
in Sri Lanka.
Initiative 1: Sampath Saviya
Entrepreneurship Development Scheme
We are aware that Micro, Small and
Medium Scale Entrepreneurs (MSMEs)
play a pivotal role in any economy,

by generating employment, inspiring
innovation and contributing to the
growth of GDP. This has inspired us
[VWYVTV[LNYLH[LYUHUJPHSPUJS\ZPVU
in rural and semi-urban regions of Sri
Lanka by supporting MSME businesses
and organizations that provide services
MVY[OLILUL[VMSVJHSJVTT\UP[PLZ
9LJLU[N\YLZYLSLHZLKI`[OL
Department of Census and Statistics
reveal that an average of 45% of
Micro entrepreneurs and 10% of Small
business establishments country-wide
JVUK\J[LJVUVTPJHJ[P]P[PLZ\UVMJPHSS`
Working with like-minded organizations,
including community groups,
government bodies and private
institutions, we initiated the Sampath
Saviya programme, which is the basis
VMV\YUHUJPHSPUJS\ZPVUZ[YH[LN`
Formulated in cognizance with the
national MSME development agenda,
the Sampath Saviya scheme mirrors
the national priority to promote
inclusive banking by encouraging
the vast number of unbanked local
businesses across the country, to
embrace mainstream-banking channels.
Launched in 2013, Sampath Saviya
To raise awareness on such topics as

anti-corruption and Human Rights, a
total of 42 training programmes were
conducted in 2015, for 111 members
of the Banks senior management.
A key feature of the agenda was the
special session for suppliers and
service providers.
Moving forward, steps will be taken
to expand this initiative and introduce
regular training at a regional level so
as to reach a broader demographic.
Sampath Saviya MSME Workshop
183
We initiated
[OL:HTWH[O
Saviya
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ÔPJOPZ[OL
IHZPZVMV\Y
UHUJPHSPUJS\ZPVU
Z[YH[LN`
Sampath Saviya MSME Workshop
6DPSDWK6DYL\D&XVWRPHU9DOXH3URSRVLWLRQ
Motivation
Business
Recognition
Market Reach
6DPSDWK6DYL\D
Personal
Development
Livelihood
Development
is an ongoing livelihood development

initiative, that focuses on identifying
and addressing the broader systemic
issues faced by rural and semi-urban
communities in Sri Lanka, including the
lack of job opportunities, limited access
[VUHUJPHSJHWP[HSHUKZVJPHSPULX\HSP[PLZ
that arise as a result.
The vision of Sampath Saviya is
[OLYLMVYL[VKL]LSVWM\SS`LKNLKJVYL
business communities who would
champion the movement for nationwide development and doing so, boost
the countrys GDP, increase per-capita
income, reduce national unemployment
and alleviate national poverty levels.
A powerful community empowerment
G4-HR 01
Income
Generation
184
Business
Growth
No ZPNUPJHU[PU]LZ[TLU[
HNYLLTLU[ZHUKJVU[YHJ[ZUHSPaLK
during the reporting period that
moved the organization into a
position of ownership in another
entity.
Progress of the Sampath Saviya Programme

Core Programme 1
2013
Core Programme 2
2013
Core Programme 3
2014
Core Programme 4
2015
Strategic Objective
Developing Vulnerable
Communities
Supporting War
Widows
Supporting MSMEs &

Business Initiators
Provide Training on
Entrepreneurship
for Branch Managers
Inclusive Banking Goals
Capacity Building
Womens
Empowerment
Capacity Building
Capacity Building
Geographical Coverage
North and East
North and East
Island wide
Island wide
)LULJPHYPLZ
War-affected
Communities
War Widows
Business Initiators and

Start-ups
Branch Managers
100
449
85
5\TILYVM)LULJPHYPLZ 214
mechanism that seeks to address

the rural unemployment problem in
the country, Sampath Saviya strives
to develop the entrepreneurial skills
of women, youth and war affected
communities, in addition to MSMEs.
The scheme also strives to trigger a
broader systemic change by instilling
a Credit Plus Culture through an
introduction to cash management and
IHZPJUHUJPHSKPZJPWSPULH[[OLNYHZZYVV[
level.
(GXFDWLRQIRU'HYHORSPHQW
A key indicator of social progress,
education continues to play an
increasingly decisive role in realizing
ZLSMZ\Z[HPUHISLHUKLX\HSKL]LSVWTLU[
across a wider nation-wide populace.
Recognizing the importance of this
changing status quo for education,
Sampath Bank PLC remains committed
to support the broader educational
needs of underserved segments of the
society. Focusing primarily on uplifting
the standard of community education
across the country, all CSR undertakings
are aimed at eliminating the persistent
knowledge disparity that exists in Sri
Lanka. Extending beyond the mere
UHUJPHSJVTTP[TLU[^LHSZVPU]LZ[
considerable time and effort in mentoring
[OLILULJPHYPLZ^P[O[OLHWWYVWYPH[L
knowledge and skills to ensure the full
ILUL[PZ[YHUZMLYYLK[V[OLYLJPWPLU[Z
,QLWLDWLYH*UDGH6FKRODUVKLS
6XSSRUW3URJUDPPH
We have for the past few years focused
on uplifting the standard of primary
education in the country, with the Grade
5 scholarship support programme being
instrumental in realizing this desired
objective. A strategic undertaking that
hopes to bridge the knowledge gap, the
programme embraces key stakeholders

of the primary education sector, namely
the student and the parents, bringing
forth a new dimension in stakeholder
value and securing the commitment of
future generations. We believe, this would
also trigger the expansion of long-term
corporate goals in tandem with national
priorities.
Year
Number of
Locations
Number of
Participants
2012
06
6,500
2013
10
9,100
2014
10
10,520
2015
08
7,576
Grade 5 Scholarship Seminar in Matara
185
&RPPRQ*RDOVDQG2EMHFWLYHV
%DVHOLQH0HDVXUHV
Improving the arithmetical

knowledge and development
of overall IQ of 10 year olds
Exposure to critical analysis
and quick thinking techniques
Motivate and build selfJVUKLUJL
Encourage parents to provide
a supportive role
Recognition of highperformers
Inculcate the savings habit at
a young age
Sampath Bank
PLC remains
committed to
support the broader
educational needs
of underserved
segments of the
society.
Number of students who

have successfully passed the
examination in each area
Number of students who have
received an island ranking
Conducted in succession for the past

]L`LHYZ[OLWYVNYHTTLZJVWL[HYNL[Z
children from rural communities, in
particular those who lack the basic
resources to prepare for an examination
of this magnitude.
,QLWLDWLYH6DPSDWK3DVDOD
A new initiative was launched in 2015,
entitled Sampath Pasala, primarily
aimed at uplifting educational standards
Sampath Pasala
186
7DUJHW
Increase by 10%, the number

of students who have passed
the exam each year
of the vast number of underprivileged

rural schools in Sri Lanka. It is a long
term CSR commitment by Sampath
Bank PLC, where the Bank would select
a deserving school from each province
and engage in developing the required
infrastructure, providing necessary
equipment and training the teaching staff
to adapt to modern teaching methods.
Case
Study
3UROH
To inaugurate the Sampath Pasala,
programme, we selected the Ba/
Kandegama Kanishta Vidyalaya,
in the Rideemaliyadda area in the
Uva province. The school provides
education to about 182 students from
Year 01- 12 and is steered by a group
of dedicated teachers and a visionary
principal who remain committed and
eager to provide the best education
to the students in order to build a
better future for the students and the
school itself.
,QLWLDOQGLQJV
6UV\YYZ[]PZP[[V[OPZNLVNYHWOPJHSS`
and socially isolated area, we found
that the school faced the following
JY\JPHSWYVISLTZ"
Poor sanitation facilities
Lack of clean drinking water
High absenteeism caused by
frequent illnesses resulting
from exposure to an unhealthy
environment
Low Body Mass Index (BMI)
among 70% of the student
population at the school
High probability of individuals
in that area being affected by
Chronic Kidney Disease due
to the lack of access to clean
water and improper nutrition
PLC employees to contribute

towards providing a balanced
breakfast for students, partly
M\SSSPUN[OLKHPSÙ\[YP[PVUHS
needs of these students. This
strategy also helped reduce
absenteeism.
3.
4.
.H\8QGHUWDNLQJV
1.
Water Project Rebuilding of
infrastructure to provide school
children with clean water for
drinking and facilitate sanitation
requirements.
5.
2.
Foster Parent Program

Volunteers were called for
from among Sampath Bank
Health Camp - To provide free

general health screening for
the entire village. Those who
were found to be suffering
from physical ailments were
provided with further treatment
and those diagnosed with
non-communicable diseases
such as high blood pressure,
diabetes and cholesterol.
were given medical advice to
manage their disorders. The
health camp further served as
a platform to create awareness
among parents and students
regarding the importance of
a balanced diet and healthy
meals. Moreover, with the
Z\WWVY[VM[OL4LKPJHS6MJL
in the Uva Province, students
were also provided with free
dental screening, medical
treatment and advice on the
importance of dental health.
Monthly Monitoring System
Method to monitor student
performance, enabling
teachers to identify students
who are falling behind in class
and therefore provide them
with extra assistance.
Grade 5 Scholarship exam in

August 2015. The programme
was designed in line with the
Grade 5 Scholarship Support
Programme.
6.
Teaching From school

childrens perspective- A
special three hour training
session to provide teachers
with an insight into modern
teaching practices, stressing
on the numerous ways in
which a teacher can help to
KL]LSVWHUKWVZP[P]LS`PU\LUJL
the character of a student
7.
Handwork and origami

workshop - The Sampath
team worked together with
students from Grade 1-5 to
demonstrate different ways of
designing Origami artwork
and rewarded the best designs
produced by the students
8.
Mock Debate As a special

training initiative to expose
students to professional
debating and develop
leadership qualities and
communication skills, the
Sampath team also engaged
in a joint debate conducted
between a team of senior
students vs the Sampath Bank
team.
7RWDO,QYHVWPHQWRs 0.4 Mn
0DQ+RXUV 364
Grade 5 Scholarship Support

Programme - A special
session was conducted for the
students who were to sit for the
187
(PSRZHUPHQWRI&RPPXQLW\
We believe that strong communities are
the backbone of sustainable economic
progress for all citizens of Sri Lanka.
Hence our efforts in this regard aim to
facilitate societal development that will
translate into tangible results for the
future. As a systematic and structured

intervention, these capacity building
initiatives empower communities with the
tools required to help sustain livelihoods
and improve living conditions. Such
measures also seek to indemnify these
communities from social exclusion in the
longer term and create a comparative

platform for progress, which we hope
that will minimize societal inequalities and
open the gateway for continuous growth
in the future.
Initiative 1: Installation of Water

7\YPJH[PVU\UP[PU7VVUL^H
The Hope for Life Project is a
capacity building initiative that aims
to address key health issues of
communities across the island. Being
closely linked to these communities
as a result of our work, we are able
to gain valuable insights into the
limitations faced by these vulnerable
groups. We have thus been able to
focus on areas that need it the most.
In 2015, we undertook to construct
H96>H[LY7\YPJH[PVU7SHU[PU
Poonewa, in the Anuradhapura
District, in an effort to help combat
Chronic Kidney Disease (CKD), which
has become a widespread health
problem mainly in the North Central
Province. Different from the traditional
form of kidney disease associated
with conventional factors, CKD, is
caused by consumption of unsafe
water that has been contaminated
with industrial chemicals and other
toxins.
As per the data received from
the Anuradhapura Hospital,
Medawachchiya, Padaviya,
Kebethigollewa and Rambewa
Divisional Secretariats in the
188
Anuradhapura District, appear to have

the highest density of CKD patients,
as much as 15%. Poonewa, a village
of Medawachchiya has been found to
be among the worst affected areas in
the North Central Province, As ground
water sources appeared to be highly
contaminated, the lack of clean water
facilities remained a dire problem for
the people of this area. Hence there
was an urgent requirement for a
clean, safe drinking water supply to
M\SSS[OLULLKZVM[OLZL]PSSHNLYZPU[OL
immediate vicinity of the Poonewa,
Anaketiya and Nagadaranawewa
areas.
To ensure the sustainability of the

project, it was felt that community
involvement would be vital. Therefore,
the RO Plant was handed over to
Randiya Dahara, a communitybased organization in Poonewa. This
organization is now fully in charge of
operating the RO plant and they have
been generating an average income
of almost Rs 57,000/- per month
[OYV\NO[OLZHSLVMW\YPLK^H[LY[V
the community at an affordable price.
The income so generated is then
utilized to maintain the plant, making
it a fully sustainable project, in the
long term.
To overcome this alarming health

hazard, Sampath Bank PLC took
the initiative, in commissioning a
Reverse Osmosis Drinking Water
Plant (RO Plant) in collaboration
with the National Water Supply and
Drainage Board. By offering a steady
source of clean, safe drinking water
for residents in the area, we hope that
the project would drastically reduce
the incidence of CKD in and around
the area, as the community would
ILUL[MYVTHYLHK`ZV\YJLVMJSLHU
drinking water.
,QYHVWPHQW Rs 2 Mn
0DQKRXUV 203
improvements to the school. Rather than

L_[LUKPUNKPYLJ[UHUJPHSHZZPZ[HUJL
under the Trees for Life programme, we
undertook to supply fruit bearing plants to
be planted in the school garden. Students
were asked to nurture and care for these
plants to ensure that they bear fruit. The
school would then be able to sell the
entire yield and raise the funds needed
to improve the facilities of the school.
This is seen as a powerful community
engagement initiative to encourage both
staff and students to work towards a
common goal. Our involvement in the
WYVQLJ[PUJS\KLK[OLMVSSV^PUN"
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,QLWLDWLYH6XSSRUWLQJWKH9LVLRQ
WKHQDWLRQDOSURJUDPPHIRUSUHYHQWLRQ
RIDYRLGDEOHEOLQGQHVV
The Vision 2020 Programme is an
ongoing effort by the Health Ministry
to address the issue of preventable
blindness among Sri Lankans. Given our
ageing population, this is a grave issue
that is likely to affect the country in the
next 5 to 10 years. Accordingly, the main
goals of the Vision 2020 programme are
early detection and preventive care.
Supporting such national health priorities
has always been important to us and
over the years, we have done so through
our Hope for a Life project. Under the
Hope for a Life project agenda for
2015, we extended our support to the
Vision 2020 initiative, as we also believe
that early detection is the key to avoiding
premature blindness. Therefore for the
YZ[WOHZLVMV\YPU]VS]LTLU[^P[O[OL
Vision 2020 project, we sponsored
three eye camps in Poththapitiya (Kandy
District), Kal Eliya (Gampaha District) and
Padiyathalawa (Ampara District).
,QLWLDWLYH7UHHVIRU/LIH
A unique CSR project launched in 2014
with the aim of supporting the needs of
Sirisamanpura Vidyalaya, Karandana, in
the Ratnapura District, by providing them
a source of funding needed for ongoing
Supporting the Vision 2020 Programme
Trees for Life
189
>LILSPL]L
that strong
JVTT\UP[PLZHYL
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VMZ\Z[HPUHISL
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MVYHSSJP[PaLUZVM
:YP3HURH
Access for Success another initiative under Sampath Pasala Programme
An initial investment of
Rs 100,000/- spent to prepare the
ground and on the 100 Rambutan
saplings donated for the purpose
Team members involved: 30
Man hours spent: 324
([SHFWHG2XWFRPH
;OLYZ[JYVWPZL_WLJ[LKPUHUKP[
is expected that the school will earn an
income of nearly Rs 500,000/-, as it was
found that on average each Rambutan
tree could generate an income of over
9Z;OPZN\YLPZSPRLS`[VPUJYLHZL
greatly as the tree matures over time,
assuring the school of a steady annual
income for the foreseeable future.
190
Preserving Our
Environment
We appreciate the importance of identifying and
measuring the environmental impacts of our activities,
and understand it is our responsibility to mitigate these
direct impacts as much as possible.
6\Y\UPX\L
position as a
IHURHSZVNP]LZ
\ZHUVWWVY[\UP[`
[VPUKPYLJ[S`
WYVTV[LIYVHKLY
LU]PYVUTLU[HS
Z\Z[HPUHIPSP[`
Tree Planting Project at Ratnapura
0DQDJHPHQW$SSURDFK
(ZHUHUJPHSPUZ[P[\[PVUV\YI\ZPULZZ
has very little direct impact on the
environment. However, we believe
that environmental protection and
conservation is the responsibility of each
and every one of us, regardless of who
we are or what we do.
We also appreciate the importance
of identifying and measuring the
environmental impacts of our activities,
and understand it is our responsibility to
mitigate these direct impacts as much
as possible. Above all, our goal is to
G4- EN 01,19
Savings
1,204
2,250,024
Number of
fully
grown trees
Water
(Litres)
212
preserve the natural composition of air,

water, energy and biodiversity in order to
nurture a greener planet so that the earth
may become a better place to live, now
and in the future.
Our unique position as a bank also gives
us an opportunity to indirectly promote
broader environmental sustainability
through the entities with which we
do business. By developing more
environmentally sustainable products
and services, we strive to encourage our
clients to subscribe to Greener business
ethics and become agents of change for
a greener tomorrow.
Paper Recycling
283,200
3HUKSS
Electricity
(Cubic metres) (kWh)
Rs
3.49Mn
Total Investment for Green

Initiatives
,QYHVWPHQWRQ(QYLURQPHQWDO
3URWHFWLRQDQG&RQVHUYDWLRQ
,QLWLDWLYHV
G4-EN 31
Investment
(Rs Mn)
Green initiatives
2.05
Contribution to Wild
Life and Nature
Protection Society
1.14
Carbon Footprint
calculation
0.30
Total Investment
3.49
191
Reduction
124,254
70,804
Oil
(Litres)
Greenhouse
Gas (Kg)
)XOO\HGJHG(QYLURQPHQWDO0DQDJHPHQW0RGHO
,03$&7
'LUHFW
675$7(*<
Integrated
Management
Practices
)2&86
Lean Resource
Management
Address critical environment

related issues through a tripartite
involvement between the Bank,
employee and the community
Ensure compliance with
environmental regulations in all our
business transactions
Facilitate green enterprises,
through special incentives, grants,
loans and guidance
G4-EN 03,05,06,07
Paperless
Processes
Carbon Footprint
Calculation
Encourage Green
Ethics among
Employees
Environmental CSR
via SNaPC
,QGLUHFW
Product
Responsibility
Investing in the
NCRE sector
(QHUJ\
Electricity
Given the nature of our business,
electricity remains the primary source
of energy needed for the day-to-day
operations. To minimize the number of
electricity units consumed during the
course of our operations, we have always
sought energy saving alternatives that
would control usage and help manage
our impact on the environment.
As part of our ongoing initiatives, in
2015, we looked at ways to reduce our
dependence on non-renewable energy.
Our goal is to migrate towards solar
energy in the long term. Accordingly, we
initiated a pilot project to commission
a solar net-metering mechanism at the
Colombo Super branch which is the
single largest solar energy project carried
V\[PU[OLUHUJPHSPUK\Z[Y`(S[OV\NOZ[PSS
in its initial stage, we currently enjoy a
42% reduction in the monthly electricity
bill of the branch.
Green Lending
,QWHJUDWHG0DQDJHPHQW3UDFWLFHV
Lean Resource Management
We have integrated environmental
concerns into all aspects of the business
as part of our operational framework.
Moreover, we have implemented the
principles of Lean Resource Management
HZWLY[OLMVSSV^PUNLJVN\PKLSPULZ"
192
Adopt lean resource consumption

practices across our operations,
to reduce the use of paper, energy
and non-biodegradable material.
Ensure proper disposal of waste,
to minimize harmful environmental
impacts
Create awareness of protecting
and conserving the environment
among employees, customers and
other stakeholders
4,200 kWh
Colombo Super Branch electricity
consumption (After installation of the
Solar Net Metering System)
National Grid 6,000 kWh per month
(average)
Self Generated 4,200 kWh per
month (average)
Unlike in a manufacturing organization,

we as a bank are unable to directly
correlate changes in energy consumption
[VHZWLJPJWYVK\J[VYZLY]PJL
Nevertheless, in line with our lean
resources management principles, we
do keep track of the total electricity
consumed on a monthly basis. At
present, we monitor direct electricity
JVUZ\TW[PVUMVY[OLOLHKVMJLVUSÌ\[
our goal is to extend the process to cover
the entire branch network by 2017.
Introduction of Solar Energy System at Colombo Super Branch
>LSVVRLK
H[^H`Z[V
YLK\JLV\Y
dependence on
UVUYLUL^HISL
LULYN`
Given the nature of our business, any reductions in the energy requirements on
products and services provided cannot be assessed. However, following steps were
HSZV[HRLU[VPTWYV]L)HUR^PKLLULYN`LMJPLUJ`SL]LSZ"
Scope of Activity
Current Progress
LED lighting to replace CFL bulbs for

interior lighting
Implemented in newly commissioned

branches and all super branches
LED Lighting for hoardings
Implemented in all newly commissioned

branches
LED lighting for branch exterior
Nearly 80% of the branch network is

covered
<ZLKVM\VYLZJLU[SHTWZ^P[OLSLJ[YVUPJ
([/LHK6MJLHUKZLSLJ[LKIYHUJOLZ
ballast, where possible
Introduction of a Solar Energy Systems in
Colombo Super branch - installed
possible locations
Electricity Consumption per
Employee per Annum (Head
6MJL
3,407kWh
Total Electricity
Consumption (HO)
3,628,874 kWh
Replace old AC units at all branches with

UL^LULYN`LMJPLU[(*\UP[Z
Completed at 50 branches
Installation of Inverter ACs at Off-site

ATMs
Completed at 25 ATMs
Commissioning of new UPS units

(Equipped with inbuilt power factor
correction technology)
*VTWSL[LKH[/LHK6MJLHUK[OL
Piliyandala Disaster Recovery Centre
Commissioning Capacitor banks to

regulate electricity consumption levels at
branches that consume a heavy load of
electricity
0UZ[HSSH[PVUVMZVSHYYLK\J[PVUSTMVY
branch exterior to minimize heat transfer
193
Ten employees were

rewarded for their
extensive use of the
stair way during the
stipulated time period
at the Green Awards
ceremony held on
23rd June 2015
5HODXQFKRI%XUQ&DORULHV
1RW(OHFWULFLW\
An initiative aimed not only at
reducing energy consumption levels
H[[OL/LHK6MJLI\[HSZV[V
inspire a health-conscious corporate
culture. The campaign sought to
encourage more than 1,000 Head
6MJLLTWSV`LLZ[VPTWYV]L[OLPY
health and wellbeing by making
simple changes to their daily work
Fuel
Water Consumption per

Employee per Annum
/LHK6MJL
40 m
Total Water
Consumption (HO)
P3
194
Total Fuel
Consumption
MVY/LHK6MJL
Operations - 2015
277,419litres
We do not have a mechanism to
compute indirect energy consumed. We
do however calculate our fuel usage in
litres, but as of now, this is not converted
as an energy indicator.
G4- EN 02,23,24,25,28
Waste
Although our management systems
are designed to minimize waste as
much as possible, we do still generate
a considerable volume of paper waste
and to a lesser extent of e-waste, as a
result of our day-to-day operations. We
therefore habitually promote reuse and
recycling opportunities, whenever and
wherever possible and practical during
the course of business.
Ten employees were rewarded for

their extensive use of the stair way
during the stipulated time period at
the Green Awards ceremony held on
23rd June 2015.
G4-EN 04
G4-EN 08,09,10,22,26
Water
Compared to other industries that
depend heavily on water usage, our
operations have no direct impact to
or from water. The little water we do
use is mainly for our daily cleaning and
sanitation needs. The water so used
is then discharged directly to the local
sewerage system. (There is no need to
recycle the water we use, since our water
KPZJOHYNLZHYLPUZPNUPJHU[JVTWHYLK
to other industries). Further, we make
sure that such discharges do not affect
any water bodies, bio diversity areas,
protected areas and habitats anywhere in
Sri Lanka.
routine, eg: more frequent use of

the stairs rather than the elevator. A
special competition was arranged
to identify the frequent users of the
stairway, within a 8 week time frame.
More importantly however, we feel

the only sustainable solution is to shift
towards paperless alternatives for as
many processes as possible.
E-waste recycled
(Hazardous Waste)
Qty
Total Number of kg
167
Total Number of Units
643
Paper waste recycled

(Non Hazardous Waste)
Qty
Total Number of kg
70,804
Given the nature of our business as a

bank, the transport, import, export or
treatment of hazardous waste is not
HWWSPJHISL[V\ZHZ[OLYLPZUVPKLU[PHISL
direct or indirect impact from hazardous
waste or chemical spills arising from our
operations.
Further, as a purely service-based
business our products and services
do not require any form of physical
packaging. Recycling of packaging
materials is therefore not applicable to
Sampath Bank PLC.
G4- EN 01,27
3DSHUOHVV3URFHVVHV
As part of our plan to go Paperless we have come to increasingly rely on e-mediums
HZPSS\Z[YH[LKILSV^"
)520
Paper-based
Communication
To
E-communications
E-statements
SMS Alerts
Social Media
)520
Conventional Cashbased Banking Model
To
Virtual Banking
Model
Sampath Vishwa
Online Banking
Sampath Vishwa
Mobile App
)520
Cash-based
Commerce
To
Cashless
Transactions
Online Shopping via

Credit Card
Scope of Activity
:WLJPJ0TWYV]LTLU[ZMVY
Procedural Improvements
Introduction of e-Vault application in order to eliminate

[OL\UULJLZZHY`KVJ\TLU[H[PVUHUKPULMJPLU[THU\HS
processes handled by branches. This converts the
physical vault book into a system based register which
shows all entries with regard to cash operations in
Branches
0U[YVK\J[PVUVM*LY[PJH[LVM+LWVZP[*+9LNPZ[Y`
system to replace the manual data registers which
were maintained by branches to keep CD account
holders information. The system operates as a
centralized repository
Introduction of e-Statements and Combined
Statements for customers which reduce stationary
usage
G4- EN 15,16,17,18,19,21
&DUERQ)RRWSULQW&DOFXODWLRQ
Being a bank, our Carbon Footprint
is decidedly low. However, we do
realize that our business does have
some impact on the environment due
to the consumption of energy, water
and fuel along with the material waste
we generate as a result of day-today operations. These are the main
components of our carbon footprint.
We realize that in order to become a
more sustainable business, we would
need to reduce our carbon footprint as
T\JOHZWVZZPISL0U[OPZYLNHYK^LYZ[
need to measure the direct environmental
impact resulting from the core business.
Therefore, the carbon footprint calculation
process was introduced in 2013 to help
establish a measure of environmental
accountability. It is now an ongoing
process that helps to benchmark
an environmentally sound business
framework that is based on continuous
monitoring and system improvements.
Although, in the course of our business
activities we do not release any direct air
emissions or ozone depleting substances
to the atmosphere, our carbon footprint
calculation process is based on the
guidelines issued under the Corporate
Accounting and Reporting Standard
(GHG Protocol), an internationally
recognized benchmark for accounting
and reporting on corporate greenhouse
gas emissions. In addition to the GHG
protocol we also comply with the Carbon
Disclosure Project (CDP), which offers
guidelines regarding organizational and
VWLYH[PVUHSIV\UKHYPLZX\HU[PJH[PVUHUK
standard reporting practices.
Introduction of just in time printing of trilingual personal

mandates/applications and forms at branches
Supporting HR Systems
Introduction of new modules in e-learning portal for

employees
Introduction of HR form management system for
employees
195
(ZZLZZTLU[7YVSL!
Site Location
110, Sir James Peiris Mawatha, Colombo 02, Sri Lanka
Assessment Type
Organizational Greenhouse Gas Assessment
Applied Standards
WBCSD/WRI GHG Protocol, ISO 14064-1
Consolidation Approach
Operational Control
Assessment Scope
Purchased Electricity, Waste Disposal, On Site Energy,

Employee Commuting, Third-party Deliveries, Fugitive Emissions, Electricity Transmission
and Distribution Losses
Reporting Period
1st October 2013 30th September 2014 (Completed in 2015)
Intended User
Management and Stakeholders of Sampath Bank
Base Year
`LHYPUÔPJO[OLHZZLZZTLU[^HZYZ[JVUK\J[LK
,TPZZPVUZI`:JVWL)HZLKVU/LHK6MJL6WLYH[PVUZ
GHG Summary by Scope for

Sampath Bank PLC
Scope 1
Direct emissions released from sources that

are owned or controlled by the company. Such
sources include among others, corporate car
LL[ZJHW[P]LWV^LYNLULYH[PVUMHJPSP[PLZVYM\LS
combustion for heat.
Scope 2
Indirect emissions associated from the

generation of imported energy carriers such as
electricity, heat and steam.
Scope 3
All other indirect emissions that are not released

from sources mentioned under Scope 2. Typical
Scope 3 emissions include business travel,
waste disposal and outsourced activities.
%
41
19
40
Scope 01
Scope 02
Scope 03
GHG Protocol Scope
Emission Source
Data Quality
Scope 1 Direct Emissions
Company Owned Vehicles
Complete
On Site Energy - Generators, LP Gas
Complete
Fugitive Emissions - Refrigerants, Fire Extinguishers
Complete
Leased Vehicles
Complete
Purchased Electricity
Complete
Scope 2 Purchased Energy

Scope 3 Indirect Emissions
196
Electricity Transmission and Distribution Losses
Estimated
Hired Vehicles
Complete
Air Travel
Complete
Third-party Deliveries
Complete
Employee Commuting
Complete
Waste Disposal
Complete
+L[HPSLK,TPZZPVUZI`>)*:+>90:JVWL
Source
Emissions (tonnes CO2e)

CO2
CH4
N2O
Total
6FRSH

Total: On Site Energy
6.0130
0.0007
0.0019
6.0504
Total: Company Owned Vehicles
104.3634
0.1172
0.3763
104.8568
Total: Leased Vehicles
582.7946
0.3527
3.6232
586.7705
6FRSH

1446.1521
0.9277
63.4774
6FRSH
1510.5573

Total: Electricity Transmission & Distribution Loss
175.7075
0.1127
7.7125
183.5327
9.3603
0.0082
0.0328
9.4013
Total: Third-party Deliveries
13.4411
0.0007
0.1335
13.5752
Total: Air Travel
19.4169
0.0005
0.1915
24.0977
1300.8413
1.9974
7.5561
1310.3948
Total: Hired Vehicles
Total: Employee Commuting

Total Waste Disposal
3.9275
:WLJPJ2L`7LYMVYTHUJL0UKPJH[VYMVY:HTWH[O)HUR!
Emissions per employee
- 3.5241 tCO2e
Emissions per unit area (square foot of space) - 22.6106 kgCO2e
Total Carbon footprint for the year
- 3,753.25 tCO2e
Total Carbon footprint (2012/13 - base year)
- 2,753.20 tCO2e
The results of our Carbon Footprint calculation for the

YLWVY[PUN`LHYZOV^HZPNUPJHU[PUJYLHZLJVTWHYLK[V
[OLN\YLMVY[OLIHZL`LHY;OPZPZHKPYLJ[JVUZLX\LUJL
of the substantial increase in business volumes for the
twelve months ending 31st December 2015.
G4- EN 11,20,29,30/EC 02
GHG Inventory
2WKHU6XVWDLQDELOLW\,QGLFDWRUV
0.16
%
0.10
0.26
4.89
2.79
15.63
34.91
40.25
0.64
0.37
On Site Energy
Company Owned Vehicles
Leased Vehicles
Third-party Deliveries
Air Travel
Employee Commuting
Bio Diversity:
Sampath Bank PLC does not own,
lease or manage any business
activity that is located within a
protected area and/or areas of high
bio diversity value outside protected
areas.
Emissions:
Emissions of Ozone Depleting
:\IZ[HUJLZ6+:HYLPUZPNUPJHU[
considering the nature of our
business.
Compliance:
The bank has not been subject
[VHUÙLZHUKVYTVUL[HY`
sanctions for non compliance with

environmental laws and regulations.
Transport:
;OLYLHYLUVZPNUPJHU[
environmental impacts relating to
the transport of products and other
goods and materials used during the
course of our operations.
Climate Changes:
Our business operations do not in
any way depend or have an effect
on climate change and therefore,
no risks or opportunities arise as a
result of climate change.
Waste Disposal
Electricity Transmission and Distribution Loss
Hired Vehicles
197
As we strive
to inculcate an
environmentally
conscious mindset
among all employees,
we request them
to subscribe to
the Sampath Bank
Environmental
Pledge.
*UHHQ$ZDUGV
An ongoing move to align team
members with the Banks Green
mission, establish an eco-friendly
social culture and promote
Greener lifestyles among
employees. First introduced in
2013 and now an annual event, this
years Green Awards recognized
outstanding contributions made
by team Sampath in promoting
widespread environmental protection
and conservation through greater
community involvement.
Out of 40 teams (Out of 75 registered

teams) who completed the projects, a
total of 23 teams were shortlisted at the
Outstanding Eco Teams Competition
2014 and 8 most outstanding teams
were felicitated at the ceremony held on
23rd June 2015. The winners were also
H^HYKLK\UKLY[OLMVSSV^PUNJH[LNVYPLZ"
Most Innovative Project
Most Sustainable Project
Best Energy Saving Team
(QFRXUDJH*UHHQ(WKLFVDPRQJ
(PSOR\HHV
We realize that in order to carry out our
environmental programmes effectively,
it is vital that our team stays aligned to
these goals. As we strive to inculcate
an environmentally conscious mindset
among all employees, we request them
to subscribe to the Sampath Bank
Environmental Pledge.
(QYLURQPHQWDO&65&RQGXFWHGE\
61D3&
Employees who wish to commit
themselves as Green champions can do
so by joining the Sampath Bank Nature
Protection Club (SNaPC) and getting
involved in their work. The environmental
arm of the Bank, the SNaPC has been
highly active in promoting environmental
protection and conservation, carrying
out a number of focused projects across
the country. Over the years the thematic
projects undertaken by SNaPC have
been selected for their ability to deliver
a direct and measurable impact on the
environment and bring about lasting
change for all associated stakeholders.
198
Environmental Pledge
More recently, SNaPC has also played an

active role to raise awareness regarding
the importance of environmental
sustainability among employees and the
communities they serve. To support this
goal, the SNaPC website was
re-launched in June 2015. The previous
static website was re-designed as a
dynamic portal where employees are able
to express their views, exchange ideas,

thereby increasing employee interaction
and creating awareness on the Banks
green activities.
G4- EN 12,13,14
:PNUPJHU[7YVQLJ[ZMVY
I.
II.
III.
IV.
3URMHFW
1DWLRQDO7KUHDWHQHG6SHFLHV5HVHDUFK,QLWLDWLYH6DPSDWK1D765,
2EMHFWLYH
To preserve and protect critically endangered or Red-listed animal and bird species in Sri Lanka.
'HVFULSWLRQ
The current project (Initiated in 2013) is an on going partnership with the Field Ornithology Group of Sri
3HURH-6.:3[VWYV]PKLUHUJPHSHZZPZ[HUJLMVY[OLYLZLHYJOHUKJVUZLY]H[PVUVM[OL)S\L,HYLK
2PUNZOLY
([SHFWHG
2XWFRPH
In progress
3URMHFW
%ROJRGD:HWODQG3URMHFW3KDVH
2EMHFWLYH
To assist in restoring the degraded areas of the Bolgoda Wetland Complex in order to conserve
biodiversity, maintain watershed services and increase its resilience to climate change.
'HVFULSWLRQ
The Bolgoda Wetland Complex (BWC) is the largest natural freshwater lake in the country. The lake,
which covers 400 Km2, comprises of two vast fresh water bodies, namely, the Bolgoda North Lake and
the Bolgoda South Lake, which are connected by the river Weras.
([SHFWHG
2XWFRPH
Habitat conservation, reduction of pollution, support for community agriculture and local industries eg:
eco-tourism.
3URMHFW
7UHH3ODQWLQJ3KDVH
2EMHFWLYH
Promote reforestation through employee engagement.
'HVFULSWLRQ
A competition was organized to select the most outstanding eco-team in recognition of their commitment
towards reforestation. Of the 40 eco-teams who completed their projects, 8 eco-teams were selected
and felicitated at the ceremony held on 23rd June 2015.
2XWFRPH
5,735 trees have been planted in 58 locations Island wide.
3URMHFW
&RUDO5HVWRUDWLRQ3URMHFW3KDVH6XUDNLPX6XQGDUD3ROKHQD
2EMHFWLYH
To maintain the rich bio-diversity and marine eco-systems surrounding the coral reef located off the coast
of the Polhena Beach in Matara.
'HVFULSWLRQ
A partnership with the Department of Oceanography and Marine Geology of the University of Ruhuna, the
WYVQLJ[ZLLRZ[VYLWHPYULHYS`2TVMKHTHNLKYLLMVVY^P[OTPUPT\TKHTHNL[VL_PZ[PUNJVYHSZWLJPLZ
and marine life. The effort will also result in the improvement of the overall structure in order to prevent
further degradation.
([SHFWHG
2XWFRPH
Habitat conservation, reduction of pollution and community awareness and development of eco - tourism.
The environmental
arm of the Bank, the
SNaPC has been highly
active in promoting
environmental
protection and
conservation, carrying
out a number of
focused projects
across the country.
Sampath Green Awards
199
G4-EN 01,02,28
Since we are in the business of banking,
minimal amount of materials are used to
produce and package primary products
and services. However, our goal is to
support a greener society by promoting
environmentally sustainable products and
services.
We have thus developed a Green
lending framework, whereby funding
is extended to those projects or
businesses that promote earth-friendly
concepts using modern technology and
support the principles of lean-resource
consumption while strictly complying with
all mandatory environment protection
regulations.
Exchanging Documents for project - Surakimu Sundara Polhena
Investment in Non Conventional Renewable Energy (NCRE) Sector

Project
No of Projects
Capacity (MW)
Investment (Rs Mn)
,QYHVWLQJLQ1RQ&RQYHQWLRQDO
5HQHZDEOH(QHUJ\1&5(6HFWRU
We have been investing in the
development of renewable energy
sources taking into consideration, the
recent changes in the energy industry.
>LOH]LUHUJLKTHU`SHYNLYLUL^HISL
energy projects and our portfolio has
doubled over the past four years.
Mini Hydro
Power
projects
11
21.43
3,268
Solar Power
83
0.45
86
However, our involvement goes beyond

W\YLUHUJPUN>L\ZL[OLSLUKPUN
process to encourage clients to adopt
and improve their environmental
credentials. Clients seeking approval for
renewable energy projects are requested
[VVI[HPUHSSULJLZZHY`PUK\Z[Y`ZWLJPJ
environmental approvals. Moreover, as
part of the green lending process, our
WYVQLJ[UHUJL[LHTJVUK\J[ZZP[L]PZP[Z
to monitor conformity with environmental
parameters. We believe these steps
have helped to lay the foundation for
environmentally sustainable businesses in
the longer term.
We have
UHUJLKTHU`
SHYNLYLUL^HISL
LULYN`WYVQLJ[Z
HUKV\YWVY[MVSPV
OHZKV\ISLK
over the past
MV\Y`LHYZ
*UHHQ/HQGLQJ
Sampath Green Energy Loan Scheme
200
Pursuing good
governance and
sustainable
business, always
Governance
Risk Management
Compliance Review
Corporate Governance
Board Audit Committee Report
Board Human Resources and Remuneration Committee Report
Board Nomination Committee Report
Board Integrated Risk Management Committee Report
Board Related Party Transactions Review Committee Report
Board Credit Committee Report
Board Strategic Planning Committee Report
Board Shareholder Relations Committee Report
Board Treasury Committee Report
Board Marketing Committee Report
201
Governance
Risk
Management
Sampath Banks overall approach to risk management
PZZ\WWVY[LKI`H^LSSKLULKYPZRHWWL[P[L
comprehensive policy framework, effective governance
structures and appropriate tools and techniques to
identify, measure and manage risk.
Sampath Banks sustained growth
in assets and earnings have been
underpinned by its comprehensive and
effective risk management framework.
changing regulatory requirements such as

implementation of advanced approaches
of Basel II and III. Its overall approach
to risk management is supported by a
^LSSKLULKYPZRHWWL[P[LJVTWYLOLUZP]L
policy framework, effective governance
structures and appropriate tools and
techniques to identify, measure and
manage risk. Today, risk considerations
form a pivotal input in all business,
strategic and operational decisions of the
Bank.
The Bank has been very focussed

and successful in nurturing its risk
management frameworks and culture
to balance growth and risk amidst ever
Focus Areas in
2015
0$5.(75,6.
Moving to Basel II Internal Ratings Based

Foundation Approach
Risk Based Pricing
Stress Testing
Post Credit Monitoring
Addition of new Stress Testing scenarios

Enhancement of Limit Framework
Treasury Monitoring System upgrade
Focus Areas in
2015
3HUIRUPDQFH
+LJKOLJKWV
&5(',75,6.
Growth in Loans and Advances: 24%

Risk Rating/Scoring model review
Total Impairment/Gross Total Advances: 1.81%
Implementation of Risk Based Pricing, and
Stress Testing on Fall in Value of Security
Introduction of Limit Framework for Interest Rate

Risk
Introduction of Value at Risk Limits / Monitoring
Fine tuning integrated Market Risk Stress Testing
with Board Approved Limits, Assumptions &
Parameters
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Risk & Control Self Assessments, and Key

Risk Indicators
Moving to Basel higher approaches in
Operational Risk
Supporting to manage wider presence over

Digital/Electronic Channels, Payment Channels
and Social Media
Enhancing Strategic Planning and R&D
functions
Enhancements in Key Risk Indicators/Limits

Bank-wide coverage of Risk & Control Self
Assessments
Capacity Building and Concurrence of
the Board to move to Basel Alternative
Standardised Approach
Working with multiple Rating Agencies

continued further.
Awards: The most awarded Commercial Bank
in Sri Lanka in 2015
6WLUPUNH9LWYLZLU[H[P]L6MJLPU4`HUTHY
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202
675$7(*,&$1'5(387$7,21$/5,6.
Focus Areas in
2015
Focus Areas in
2015
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The Banks approach to risk management
is embedded in its Risk Governance
Framework approved by the Board
(BIRMC). The framework consists of
governance committees, at both Board

and Executive level which operate with
JSLHYS`KLULKTHUKH[LZYVSLZHUK
responsibilities and a Board approved
policy framework. Terms of References
of all key management committees were
reviewed during the year and Board

approval was obtained. In addition, the
Bank maintains over 40 different policies
to cover governance, risk/compliance
management, and all operational and
administrative aspects of its business.
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6DPSDWK%DQN
Board Integrated Risk
Management Committee
Board Credit Committee
Board Related Party Transactions

Review Committee
Board Strategic Planning
Committee
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Board Treasury Committee
([HFXWLYH/HYHO&RPPLWWHHV
Board Audit Committee
Credit Policy, Risk and Portfolio

Review Committee
Executive Advances Committee
Advances Committee
Asset & Liability Management

Committee (ALCO)
Investment Committee
IT Steering Committee
Internal Capital Adequacy
Assessment Process (ICAAP)
Committee
Outsourcing Committee
Procurement Committee
Sri Lanka Financial Reporting

Standards (SLFRS) Committee
203
Governance
Risk Management
G4-58
Committee
Composition
Role and responsibilities
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The apex committee for risk
management within the Bank, set
up in compliance with the Central
Bank Directive No 11 of 2007.
Three Non Executive Directors

Managing Director
Group CFO/Executive Director
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Head of Compliance
Key management personnel
representing the functions of Credit,
Market, Liquidity, Operational and
Strategic Risks are also invited
to the committee meetings as
necessary.
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Roles and functions are regulated
by the Banking Act Direction No
11 of 2007, Rules on Corporate
Governance as per section
7.10 of the Listing Rules of the
Colombo Stock Exchange and
the Code of Best Practices on
by the SEC and the Institute of
Chartered Accountants of Sri
Lanka
Five Non Executive Directors

supported by Managing Director
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Three Non Executive Directors and

two Executive Directors
Group CFO/Executive Director

DGM - Finance, Head of Internal
Audit, Chief Manager-Systems
Audit, External Auditors
Key management personnel

representing the functions of
Treasury, Risk and Finance are also
invited to the committee meetings
as necessary.
204
Identify, monitor and measure the overall risk

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verify models that are used for assigning all
material risks under Basel Framework and other
best practices / regulations
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parameters set in the Risk Appetite
Examine risk scenarios to measure the impact of
unusual market conditions
Monitor compliance of various risk parameters of
business lines
Regularly report to the Board of Directors on the
Risk Management and Compliance status of the
Bank
Review integrity of accounting and reporting
systems
Review internal audit reports and liaise with
corporate management (Managing Director/
Group CFO/Executive Director, and all DGMs/
AGMs) in taking precautionary measures to
minimise control weaknesses, procedure
violations, frauds and errors.
Review internal audit programme and make
appropriate changes.
Assessing the independence and monitoring the
performance and functions of the Internal Audit
Appointment/Discontinuation of External Auditor
Investigate any activity, including matters raised
under whistle-blowing
(Refer to pages 282 & 283 for detailed roles and
responsibilities of the Board Audit Committee)
Provide guidance to the Treasury in carrying out
its functions and to monitor its performance
Establish Treasury Management Policies
Monitor the liquidity position, foreign exchange
risk and interest rate risk of the Bank
(Refer to page 299 for detailed roles and
responsibilities of the Board Treasury Committee)
Committee
Composition
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Four Non Executive Directors and

two Executive Directors
Management personnel
representing the functions of Credit
and Risk Management are invited
for the committee meetings

Approve credit facilities as delegated by the
Board of Directors.
Recommending to the Board on credit Policy
of the Bank, inclusive of the maximum limits on
exposure to each major sector of the economy.
Recommending Credit policy changes to the
Board.
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Three Non Executive Directors and

one Executive Director
Developing and maintaining Related Party

Transaction policy in line with the applicable
regulations.
Making Related Party disclosures as required by
regulations.
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Five Non Executive Directors

including Chairman, and two
Executive Directors
Examine the Banks current mission, strategic

positioning and the strategic vision, and provide
guidelines to Strategic Planning Process.
Examine the external challenges and
opportunities relevant to the strategic vision and
key goals.
Review internal strengths and weaknesses of the
Bank and provide guidance to management.
Oversee and monitor strategic planning process
Examine effectiveness of key strategies.
Review Banks resource capabilities, capital
composition/structure needed to achieve the
strategic goals.
Make recommendations to Board on Strategic
Decisions.
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Chair- Managing Director DGMs

and AGMs in Lending, Recoveries,
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Credit Departments, Credit Risk
Management and Head of Treasury
are also invited for the meetings
Responsible for reviewing the credit policy,

procedures and performance of the Bank.
Monitor indicators such as delinquent exposure,
cross border exposure etc.
Deciding prudential limits on lending and
providing suggestions for capital allocation in line
with the set Risk Appetite.
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Chair- Managing Director

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Credit
Approval of credit facilities as delegated by the

Board Credit Committee.
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Credit, Line Assistant General
Manager/Chief Managers of Credit
Approval of credit facilities as delegated by the

Board Credit Committee.
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Chair- Managing Director, GCFO,

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Head of Treasury, DGM-Marketing
and Business Development, Group
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AGM-Finance, Head of Deposits
Overall responsibility for managing the Banks

balance sheet within the performance and risk
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205
Governance
Risk Management
Committee
Composition
,QYHVWPHQW&RPPLWWHH
Chair- Managing Director,

Executive Director/GCFO, Head of
;YLHZ\Y`*OPLM6WLYH[PUN6MJLY
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Overall responsibility pertaining to decisions

on investment activities such as investments in
stocks, debt instruments etc.
,76WHHULQJ&RPPLWWHH

Senior management representatives
from IT, Operations, Risk, Marketing,
Systems Audit and Finance
Responsibility for all aspects related to the

Banks information technology infrastructure
including automation, security, and procurement.
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Chair- Group CFO/Executive

Director
Senior management representatives
from Finance, Risk, ALCO, Planning,
IT and Internal Audit
Responsibility to ensure that the Bank meets the

requirements of ICAAP in timely and accurate
manner.
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Chair-Managing Director, Group

CFO/Executive Director, DGM
Operations, Head of Compliance,
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Chief Manager NSC
The committee is responsible for the supervision

of all the Banks outsourced activities including
the setting the criteria for selection, approving
the selection of service providers and other
related decisions.
3URFXUHPHQW&RPPLWWHH

Group CFO/Executive Director,
Respective line AGM/DGM of the
relevant business/functional area
Responsibility to ensure that the Bank meets the

requirements of Regulations and Banks Policies/
Procedures in handling procurements.
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+.4-PUHUJL.YV\W9PZR6MJLY
Heads of key departments in SLFRS
implementation
Responsibility for ensuring that policies

and procedures are in place for SLFRS
implementation, planning/execution and
reporting functions.
0DQDJHPHQW&RPPLWWHH

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and AGMs
Recommending Corporate objectives, Strategic

Plans and Budgets to the Board.
Provide Leadership to develop, plan and execute
strategic and operational plans.
Ensure that all Legal/Regulatory compliance
requirements of the Bank are duly met.
Make operational decisions.
Decide and assume responsibility on action
MVYLUZ\YPUNZV\UKHUKLMJPLU[6WLYH[PVUZ
Managing Risk, Business Continuity, achieving
set targets, managing the Banks reputation and
ensuring regulatory/legal compliance and any
other area related to the Bank coming under its
purview.
Ensure customer service standards of the Bank
are maintained at a high level and customer
grievances are duly addressed.
Appoint internal Project Teams/Committees and
set terms of reference.
.YV\W9PZR6MJLY/LHKVM
Compliance & Head of Treasury on
Invitation
206
Three Lines of Defence Model provides

simple but comprehensive clarity on roles and
responsibilities, thereby managing risks through a
clear and transparent governance model.
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The Banks Risk Management framework
is based on the Three Lines of Defence
Governance model, which ensures
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duties with respect to Risk Management
and Governance activities. The model
provides simple but comprehensive clarity
on roles and responsibilities, thereby
managing risks through a clear and
transparent governance model.
First Line of Defence:0KLU[PJH[PVU
management and reporting of both
current and potential risks at business
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are managed effectively as close as
possible to the source of risk. Key Risk
Management responsibilities for the
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Self-assessment and reporting of
risks and control effectiveness
Compliance with all policies and
procedures
Promoting a strong risk culture
and awareness of risk elements
through effective communication
and training.
Emphasis on both proactive and
reactive risk evaluation, monitoring,
and controls
Second Line of Defence: Centralised
oversight by the Risk Management
function and the implementation of
governance standards, frameworks and
policies for each type of risk that the Bank
is exposed to, while ensuring consistency
in Risk Management across all areas of

the Bank. The Centralised oversight is
WYV]PKLK[OYV\NO"
Ongoing Formulation and
implementation of the Integrated
Risk Management framework
Review and reporting of risks
of the business units, products,
processes, systems and Key Risk
Indicators to the relevant business
units, management committees
and BIRMC, as required.
Challenging the Risk & Control
Self Assessments, inherent risks
HUKPU[LYUHSJVU[YVSZPKLU[PLKI`
business units
Independently identifying and
assessing the risks the Bank is
exposed to, also considering the
Board approved Risk Appetite and
recommending action to mitigate
risks above the appetite levels.
Overseeing the development of a
risk-culture and its links with the
anti-fraud framework.
Issuing an independent Risk
Opinion for all Credit appraisals
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Operational Processes, Legal
Agreements and New Products/
Systems.
Conducting reviews on loan and
other credit facilities to ascertain
the compliance to covenants and
ensuring the maintenance of credit
quality.

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on the process and level of
impairment carried out by the
business units for individually
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Independent monitoring of Treasury

operations, adherence to Treasury
limits, exposure to Liquidity,
Foreign Exchange Rate, Interest
Rate, Equity Price Risks and
implementing or recommending
appropriate actions to mitigate
Market / Liquidity Risks.
Group-wide oversight of Risk
Management, reporting and
providing recommendations to
BIRMC
Third Line of Defence: Audit/
compliance functions providing
independent and objective assurance
on the Risk Management processes and
practices in place. These functions have
the authority to communicate with the
External Auditors, Board Audit Committee
and BIRMC. Assurance is provided
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Internal Compliance, regulatory
compliance, regulatory reporting,
Internal Audit, Anti-Fraud
monitoring and Anti-Money
Laundering measures
Monitoring compliance with the
Banks overall Risk Management
framework
Assessment of the robustness of
the Risk Management tools and
techniques in place.
207
Governance
Risk Management
)XQFWLRQDO6WUXFWXUHRI5LVN0DQDJHPHQW)UDPHZRUNRIWKH%DQN*URXS
%RDUGRI'LUHFWRUV
BIRMC
Managing Director
.YV\W9PZR6MJLY
Head of Compliance
Integrated Risk
Management Unit
AML and Compliance Unit
Credit Risk
Management Unit
Market Risk
Management Unit
Credit Risk Management

Function
Head of Risk & Compliance Siyapatha Finance PLC
Credit Risk Review

Function
Chief Accountant
SC Securities (Pvt) Ltd
The Integrated Risk Management Unit

(IRMU) holds the overall responsibility
for the Risk Management function of
the Bank and the Group under the
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094<VWLYH[LZPUKLWLUKLU[S`MYVTWYV[
and volume targets and formulates the
overall policy framework for measuring,
monitoring and mitigating the risk
exposures of the Bank. Three separate
208
Operational Risk
Management Unit
CEO - Sampath Information

Technology Solutions Ltd
units have been established within the

IRMU for managing Operational, Market
and Credit Risks.
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The Banks Risk appetite, playing a
crucial element in the formulation of the
Banks strategies and policy framework is
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expressed in the form of tolerance limits
Manager Sampath Centre Ltd
and risk appetite triggers across a range

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)HURPZL_WVZLK[V;OLYPZRWYVSLPZ
monitored against the parameters set out
in the risk appetite on a consistent basis,
through regular reviews, reporting and
related controls. During the year under
review, risk appetite parameters for all
HYLHZVMYPZRZ^LYLYL]PL^LKYLULKHUK
updated.
Risk Appetite-Criteria
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Limit/Range
&UHGLW4XDOLW\DQG&RQFHQWUDWLRQ
Single Borrower Exposure (Individual)
25% of the Capital Base of the Bank
Single Borrower Exposure (Group)
35% of the Capital Base of the Bank
Aggregate exposure (funded + non funded)

to large borrowers/Total exposure (funded +
non funded) (%)
(Large borrowers: Having a credit exposure
of more than 15% of Banks Capital Base)
55% maximum
Lending to Agriculture (%) mandatory

requirement 10%
10% - 12%
Exposure Against Shares/Credit Portfolio (%)
7.5% maximum
Sector-wise Concentration (HHI Score *)
Below 1,400
Product-wise Concentration(HHI Score)
Below 1,400
0DUNHWDQG/LTXLGLW\5LVNV
Net Open Position
USD 11 Mn maximum (+or-)
Liquid Assets Ratio
21% minimum
Net Loans to Total Assets
Less than 75%
Total Loans to Customer Deposits
85% - 95%
Liquid Assets to Short Term Liabilities
30% - 35%
Bulk Deposits (over Rs 50 Mn) to Total

Deposits
Less than 15%
Purchased Funds to Total Assets
Less than 12%
Commitments to Total Loans
Less than 45%
The BIRMC conducts regular reviews of

the stress testing outcomes including
major assumptions that underpin them,
including stress testing behaviour against
the Board approved Stress Testing
Limits. Further, the outcome of the stress
testing provides very important inputs for
processes including assessing changes
PUYPZRWYVSLKLUPUNYPZRHWWL[P[LHUK
tolerance levels as well as establishing
strategic plans and contingency plans.
2SHUDWLRQDO5LVN**
Internal Fraud
Rs 10 Mn maximum
External Fraud
Rs 25 Mn maximum
Employment Practices and Workplace

Safety
Rs 5 Mn maximum
Clients, Products & Business Practices
Rs 5 Mn maximum
Damage to Physical Assets
Rs 5 Mn maximum
Business Disruption and System Failures
Rs 5 Mn maximum
Execution, Delivery & Process Management
Rs 30 Mn maximum
Stress testing calculates the potential

impact on the Capital Adequacy Ratio
(CAR) as a result of extreme but plausible
JOHUNLZPUKLULK]HYPHISLZSPURLK[V
the various types of Risks. Stress testing
is carried out on all major risks the Bank
is exposed to, with multiple variables
being sensitized in order to gauge the
PTWHJ[VU*(97VY[MVSPVZWLJPJZ[YLZZ
testing is also conducted quarterly, or
earlier as required. The Banks stress
testing policy, assumptions, limitations,
parameters, methodology and limit
framework is approved by the Board
and reviewed annually, or earlier based
on the requirement. During the year
under review, Fall in Forced Sale Value
of Security has been added to the
framework, and Operational / Market /
Liquidity Risk Stress Tests have been
further expanded.
/LYUKHOS/PYZJOTHU0UKL_//00UKL_ZJVYLZYHUNLMYVT[V>LT\S[PWS`[OLZJVYLZI`
10,000 for easy readability. The scores below 1,000 are considered un-concentrated while over
1,800 is considered highly concentrated. Our computations have been carried-out on lending
products and sectors
** All limits are annual limits based on Basel categories. Overall Cumulative Operational Risk
Appetite Limit is Rs 50 Mn a year.
209
Governance
Default
Risk
Concentration Security Value

Risk
Risk
Liquidity
Risk
Interest Rate
Risk
Equity Risk
Foreign
Exchange
Risk
Operational
Risk
Large
exposure
default
Increase in
HHI score
Large
Deposit
withdrawals
prior to
Maturity
Interest
Rate shocks
on interest
sensitive
assets
Price shock
on equity
portfolio
Exchange
Rate shock
on net open
position
Increase in
Operational
Losses
Loan rollovers
Interest
Rate shocks
on interest
sensitive
liabilities
Fall in Forced
Sale Value of
Mortgaged
Collateral
Asset
quality
downgrade
Impact
Assessment
Low, Medium and High

Stressed scenarios
Risk Management
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Appetite of the
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210
Credit Risk is the potential for loss

due to the failure of a customer or
counterparty to meet its obligations to
pay in accordance with agreed terms
and conditions. Credit Risk can arise
from default risk, concentration of
counterparties, business sectors or
geographical regions and country risk.
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Credit Risk Governance
The Credit Policy, Risk and Portfolio
Review committee functions as
the steering committee with overall
responsibility for implementing the credit
risk management framework of the Bank.
Meanwhile, the Credit Risk Management
Unit (CRMU), which functions within the
RMU, operates independently from the
business lines and is responsible for

driving all credit risk management efforts
of the Bank at functional level.
Policy Framework:
The Banks credit risk policy framework
is approved by the Board of Directors,
and it is reviewed and updated annually
or more frequently based on the need
considering both business requirements
and the need to manage Credit Risk
adequately.
The Key principles of the Banks
Credit Risk Policy are focussed on
ensuring stringent pre/post Credit Risk
Management in line with Risk Appetite of
the Bank, Regulations of Central Bank of
Sri Lanka and Basel guidelines.
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Nurture a culture of
risk awareness and
management
Regular and
comprehensive
training
programmes for all
credit handling staff
Segregation of
duties in credit
approval/credit risk
management/credit
administration
Effective risk
governance limits
and structures
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Process
Delegated approval
authority at multiple
levels (Board
Credit Committee,
Executive Advances
Committee,
Managing Director
etc)
Comprehensively
structured and
KLULKJYLKP[
evaluation and
approval criteria/
processes
Robust, internal
credit rating/
scoring models
linked to quality of
borrower/facility in
line with industry
standards and
Basel II Advanced
approaches
Prudential limits
set in line with risk
appetite (counter
party, sector, region
exposure limits)
Independent precredit review by
CRMU
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In 2015, the Bank maintained focus
on improving its analytics, models and
overall data quality in order to enhance its
capabilities in credit risk management.
In pre-credit assessment/risk
management Sampath Bank focused on
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responsibility
for Post Credit
Monitoring with
emphasis on
internal and
external early
warning signals
Stress testing and
scenario analysis
conducted by
CRMU to assess
the possible
impact of multiple
internal and
external variables.
Comprehensive
interim reviews
of selected large
exposures
Effective
management
of credit
concentration risk
through analytical
tools such as
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Hirschmann Index
(HHI) and periodic
reporting to the
BIRMC.
Implementing Risk Based Pricing

Collection and processing of data
relating to risk ratings and defaults
as the Bank moves forward in the
adoption of Internal Rating Based
Foundation Approach for credit risk
management in accordance with
the Basel II guidelines.
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Consistently
applied Credit risk
mitigation policies
and procedures
Collateral is valued
appropriately and
updated regularly.
Other risk mitigants
(credit insurance,
guarantees)
are evaluated
carefully taking
into consideration
the counterparty
risks, and legal
implications
Periodic reporting
by CRMU to
GRO, Corporate
Management,
Credit Policy,
Risk and Portfolio
Review Committee,
BIRMC and Board
Credit Committee
Evaluating Internal risk rating

models and scorecards by
an external consultant to
verify conformity with Basel II
requirements.
Enhancing the quality of reporting
I`KL]LSVWPUNYPZRZWLJPJ/LH[
Maps/Dashboards submitted to
the Board on a monthly basis
211
Governance
Risk Management
Adopting the Internal Ratings Based Foundation

Approach, prescribed in Basel II guidelines subject to
9LN\SH[VY`HWWYV]HS^V\SKIL[[LYYLLJ[[OLYPZRSL]LSVM
our portfolio.
Despite the rapid growth, Sampath Bank

continued to maintain the health of its
portfolio above industry average, with
the gross non-performing-loans ratio
clocking in at 1.64%, which is well below
the industry average. This is underpinned
by the continued focus placed on
strengthening the Banks pre-and
post-credit evaluations and monitoring
mechanisms.
Meanwhile, post-credit monitoring was

strengthened by The Credit Risk Review
Function (CRRF) increasing its
review capability and oversight
through visits to branches/credit
departments for loan reviews.
Increased scope and coverage
of portfolio evaluations, which are
now carried out on a monthly basis
at Bank level as well as Regional/
Credit Department levels.
CRMU conducting quarterly,
PUKLWLUKLU[]LYPJH[PVUZVM
impairment on all individually
ZPNUPJHU[L_WVZ\YLZ
Consistent evaluation and
monitoring of trends in selected
industries to identify potential areas
of risk and recommend mitigating
action.
IHZLKVU[OLZWLJPJJYLKP[WYVSLVM[OL
individual borrowers in homogeneous
pools, thus providing a more accurate
measure of the portfolio credit risk.
Adopting this method is also anticipated
[VLUHISL[OL)HUR[VILUL[MYVT[OL
relatively superior health of its portfolio for
capital allocation purposes.
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The Bank achieved a strong credit growth
of 24% during the year, compared to the
preceding years growth levels of 14.6%.
Concentration Risk
Concentration risk stems from high
lending exposure to a particular
customer/group, sector, product
or region. The Bank consistently
monitors multiple indicators related
&DSLWDO&KDUJH&DOFXODWLRQIRU&UHGLW
5LVNXVLQJ,QWHUQDO5DWLQJ%DVHG
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The capital charge computation for credit
risk in ascertaining the Banks capital
adequacy levels is currently based on the
Standardised Approach which evaluates
the credit quality of the portfolio based
primarily on the external credit ratings of
borrowers. However, given the relatively
limited externally rated portfolio of
borrowers in Sri Lanka, this approach will
UV[HJJ\YH[LS`YLLJ[[OLYPZRWYVSLVM[OL
Banks portfolio. Accordingly, we opine
that adopting the Internal Rating Based
Foundation Approach, prescribed in
Basel II guidelines subject to Regulatory
HWWYV]HS^V\SKIL[[LYYLLJ[[OLYPZR
level of our portfolio. In this approach,
individual risk weights are determined
Sector-wise Breakdown of
Loan Protfolio 2015
Sector-wise Breakdown of
Loan Protfolio 2014
212
Resultantly, the Capital Adequacy Ratio

of the Bank is expected to improve
notably under Internal Rating Based
Foundation Approach of Basel II, which
is primarily driven by the Banks healthy
credit quality.
0.10
3
Default Risk
Default risk is the key component of
credit risk and comprises of potential
losses arising from the default of a
borrower or counterparty. Default risk can
arise through both on balance sheet and
off balance sheet exposures. Stringent
pre-credit evaluation and post credit
monitoring has enabled the Bank to
maintain healthy credit portfolio quality
during the year under purview.
2 2
3
21
2
3 2
21
4
6
6
6
7
14.9
10
7
10
15
Traders
Other customers Personal
Services
Tourism
Manufacturing
Infrastructure
New Economy
Transport
Other Customers
-Credit Card
14
Agriculture & Related

Construction
Other Services(Edu/Health/Media ,Oth)
Other Customers -Pawning
Government Sector
11
Traders
Other customers Personal
Other Customers
-Pawning
Tourism
Infrastructure
New Economy
Other Customers
-Credit Card
13
Manufacturing
Agriculture & Related
Services
Construction
Other Services(Edu/Health
/Media ,Oth)
Transport
to concentration, such as name

concentration, sector breakdowns,
product and regional exposures. Board
approved prudential limits for well
managing credit concentration are
KLULKHUKYL]PL^LKHUU\HSS`;OL
Banks lending portfolio continues to be
KP]LYZPLK^P[OL_WVZ\YLZWYLHKHJYVZZ
multiple sectors, geographical regions
and customer segments.
In addition, the Banks Pawning portfolio

is being very closely monitored and
assessed to ascertain the impact of
\J[\H[PVUVMNVSKWYPJLZ
Collateral-wise Exposure 2015
%
3
Large Exposures
% of Total Portfolio
(Cumulative)
0.29
0.06
0.05
3
33.5
4.1
5
Top 5
Top 10
14
Top 20
22
Other
78
11
Concentration risk is measured using

[OL/LYUKHOS/PYZOTHU0UKL_//0
>LSSKP]LYZPLKWVY[MVSPVZOH]L//0
values close to zero, whilst relatively
concentrated portfolios have higher HHI
values. The Banks HHI score for name
concentration was very low compared
to the Banks risk appetite, which is a
key strength of our advances portfolio.
(Please refer to explanatory notes
provided for Risk Appetite Criteria
details on page 209 for more information
VU//0ZJVYLKLUP[PVUZ
Collateral Management
Collateral obtained by the Bank in its
lending activities is utilised as a secondary
source of recovery, in the event that
[OLJHZOV^ZVM[OLIVYYV^LYHYLUV[
Z\MJPLU[VY[PTLS`[VTLL[[OLYLWH`TLU[
obligations.
Collateral accepted by the Bank include
JHZOWYVWLY[`_LKHZZL[ZZ\JOHZWSHU[
and machinery, inventories, tradable
securities, guarantees, bills and standby
letters of credit. The Bank adopts a
cautious and stringent approach towards
collateral valuation, and frequently reviews
and updates such values in order to
LUZ\YL[OH[[OL`HYLYLLJ[P]LVM[OL
market value.
*VSSH[LYHS
obtained by
[OL)HURPUP[Z
SLUKPUNHJ[P]P[PLZ
PZ\[PSPZLKHZH
ZLJVUKHY`ZV\YJL
VMYLJV]LY`
Immov.property,
Plant & Machinery
Stock In Trade
Tractors & Motor
Vehicles
Shares,Bonds,Life
Policies
Person.guarant &
Pronotes
Trust Receipts
22
Other Securities (Corp Gte,
Undertaking to Mortg.,
Assig over Receivables etc.)
FDs,CDs & Other Deposits
Unsecured Loans
Hire Purchase Agreements
Documentary Bills
RFC,NRFC & RNNFC
Accounts
Govt. Securities
Gold (Pawning)
6WUHVV7HVWLQJ&UHGLW5LVN
Stress testing was carried out during the
year to gauge the potential impact of
the following hypothetical Stress Testing
ZJLUHYPVZ"
Deterioration of the quality of the
Banks advances as determined
by a decline in quality of lending
assets, assuming further delays in
repayments by borrowers.
Defaults by the large borrowers (Eg
top borrower, top 3 borrowers, top
5 borrowers etc)
Increased credit concentration
to lending product and borrower
sectors. HHI score was used to
gauge the level of concentration.
Fall in Forced Sale Value of
Collateral taken as security
Stress Testing is carried out at least

quarterly or earlier and also presented to
BIRMC for necessary guidance.
0DUNHW5LVN
Market risk is the potential loss of
earnings that could arise from the
possible fall in value of a portfolio, either
investment or trading due to changes in
market variables such as interest rates,
equity prices and foreign exchange rates.
The key market risks that the Bank is
exposed to are interest rate risk, equity
risk, foreign exchange risk and liquidity
risk.
+RZ:H0DQDJH0DUNHW5LVN
Market Risk Governance
The primary governance committee
overseeing market risk is the Asset
Liability Management Committee (ALCO),
chaired by the Managing Director. ALCO
assumes the overall responsibility for
monitoring the Banks interest rate,
foreign exchange rate, liquidity and
equity risk. As Treasury Operations can
NP]LYPZL[VZPNUPJHU[YPZRZ[OL;YLHZ\Y`
Limit Management Framework and day
to day operations are monitored by
[OL4HYRL[9PZR4PKKSL6MJLÔPJO
operates independently from the Treasury
213
Governance
Risk Management
The policy framework

governing the Banks
market risk consists
of the Market Risk
Management Policy,
Asset and Liability
Management Policy,
Investment Policy and
Treasury Policy.
Dealing Room. It monitors treasury
operating limits such as open position
limits, counterparty limits, dealer limits,
Value at Risk Limits on Foreign Exchange
Positions and Treasury Bill/Bond
Portfolios, Limits related to Liquidity and
also Interest Rates which are periodically
reviewed and updated.
3ROLF\)UDPHZRUN
The policy framework governing the
Banks market risk consists of the Market
Risk Management Policy, Asset and
Liability Management Policy, Investment
Policy and Treasury Policy. These policies
collectively provide guidance on the
procedures and tools and techniques
for assessing, managing, monitoring
and reporting all aspects related to
market risk, which are detailed in the
Treasury Operations Manual of the Bank.
This framework is in line with Basel II
requirements, Central Bank regulations
and industry best practises.
the mismatch between the maturities of

the Banks assets and liabilities. The
management of liquidity risk is the most
crucial element of the Banks day-to-day
operations.
0DQDJLQJ2XU/LTXLGLW\5LVN
As the main governance committee
overseeing liquidity, the ALCO is
responsible for ensuring that the Bank
THPU[HPUZZ\MJPLU[SPX\PKP[`SL]LSZ[V
meet its regulatory requirements and
contractual obligations. The Committee
consistently monitors the Banks liquidity
position in order to ensure that it is in line
with the Banks internal targets, Board
Approved Liquidity Gap Limits, as well
as Central Bank regulatory requirements.
In addition, ALCO also determines
preventive and proactive action to avoid
an event of non-compliance. Maturity
Gaps in all major currencies is also
reported to the ALCO, for due evaluation
and taking relevant decisions.
/LTXLGLW\0HDVXUHPHQW Liquidity is
measured through the dual approaches
VMZ[VJRHUKV^;OLZ[VJRHWWYVHJO
/LTXLGLW\5LVN
Liquidity risk is the potential risk arising
from the inability to meet the Banks
obligations in a timely manner as and
when they become due, as a result of
214
Yield Curve Risk Arises from shifts in the

yield curve that have a
negative impact on the
Banks earnings/asset
values
evaluates liquidity in terms of key ratios

which demonstrate the liquid assets
stored at the balance sheet date. These
ratios include: net loans to assets, loans
to customer deposits, liquid assets to
short-term liabilities and statutory liquidity
asset ratio among others. Meanwhile,
[OLJHZOVÎHZLKHWWYVHJOHUHS`ZLZ
WV[LU[PHSJHZOPUV^ZHUKV\[V^Z
in varying time buckets based on the
maturity of assets and liabilities.
)XQGLQJ6RXUFHVThe Bank adopts
HKP]LYZPLKM\UKPUNZ[YH[LN`ZV\YJPUN
liquidity from multiple sources. Key
considerations when determining sources
of funding include the competitive
environment, market conditions and
regulatory considerations. Retail deposits
are the Banks largest funding source.
Within its deposit portfolio, depositor
concentration is low.
&RQWLQJHQF\)XQGLQJ3ODQThe Bank
has in place a contingency funding plan
to protect stakeholder interests and to
THPU[HPUHOPNOSL]LSVMTHYRL[JVUKLUJL
in the event of a liquidity crisis. The plan
incorporates early warning signals and
HZWLJPLKVYKLYVMZV\YJLZ[VHJJLZZ
liquidity in the event of a liquidity shortfall.
,QWHUHVW
5DWH5LVN
Repricing Risk
Arises from the varying
maturities of the Banks
assets and liabilities
which results in repricing
timing differences
6WUHVV7HVWLQJStress testing is carried

out regularly to evaluate the impact of
factors such as deposit runs and loan
roll-overs on the asset liability mismatches
that could lead to challenging Liquidity
positions.
0DQDJLQJ2XU(TXLW\5LVN
The Investment Committee holds overall
responsibility for the management and
monitoring of the Banks investments. The
PU]LZ[TLU[N\PKLSPULZHYLZWLJPLKPU[OL
Board approved Investment Policy.
,QWHUHVW5DWH5LVN
Interest rate risk is the potential for
loss resulting from the Banks assets
and liabilities having different re-pricing
characteristics. The Bank is exposed to
interest rate risk through its lending assets,
deposit liabilities and trading securities etc.
The return on the equity portfolio,

movements in stock market prices as
well as broader economic conditions
which could potentially have an impact
on share prices are monitored by the
Investment Committee on a regular basis,
and appropriate Risk mitigation decisions
are made. Meanwhile, stress testing
on the equity portfolio is carried out on
a quarterly basis and reported to the
)094*I`4HYRL[9PZR4PKKSL6MJL
0DQDJLQJ2XU,QWHUHVW5DWH5LVN
The Banks interest rate risk management
MYHTL^VYRPZKLULKPUP[Z)VHYK
HWWYV]LKWVSPJPLZHUKPZPU\LUJLKI`
the competitive industry it operates in.
Decisions pertaining to the re-pricing of
the portfolios held by the Bank are made
by the ALCO, also in consultation with the
Investment Committee where necessary.
ALCO regularly monitors the movements
in the market interest rates together
with the Banks asset / liability maturity
mismatches as well as results of periodic
stress testing and scenario analysis.
The techniques used to measure the
Banks interest rate risk consist of both
earnings and valuation based tools.
;OL4VKPLKK\YH[PVUNHWPZ\ZLK[V
evaluate changes in the Economic Value
of Equity (EVE). Rate sensitive assets and
liabilities are mapped into time buckets
based on their maturity period, in order
to gauge the duration gap of equity. This
approach is also used to assess the
capital charge applicable for interest rate
risk arising from interest sensitive assets
and liabilities.
(TXLW\5LVN
This is the risk of loss arising from the
adverse movement in the value of equity
investments held by the Bank due to
various reasons such as deterioration
in performance or net asset value of
respective business ventures.
The equity portfolio held by the Bank was

gradually reduced through conscious
decision making process during the year,
and as at year end the market value of
the Banks equity portfolio was
Rs 121.74 Mn at the year-end,
accounting for a mere 0.0232% of its
total assets.
)RUHLJQ([FKDQJH5DWH5LVN
Foreign exchange rate risk arises due
to mismatches in assets and liabilities in
ZWLJPJMVYLPNUJ\YYLUJPLZ;OL]HS\LZ
VMZ\JOUL[L_WVZ\YLZ^PSS\J[\H[L^P[O
exchange rate movements. The Banks
foreign exchange rate risk management
is guided by its Board approved policy
and limit framework. The limits set in the
framework are persistently monitored
and updated as required, in line with
market conditions. Meanwhile, in order to
ensure the adequacy of internal controls
in treasury management, there is a clear
segregation of duties and responsibilities
between the Front, Middle and Back
6MJLZ6WLUMVYLPNUL_JOHUNLWVZP[PVUZ
are regularly revalued, whilst asset /
liability maturities and foreign exchange
exposures are continuously monitored.
Value at Risk calculations, as well as
stress testing is carried out regularly on
the portfolios subject to foreign exchange
rate risk.
)RUHLJQ([FKDQJH5DWH0RYHPHQWV
2015
131.20 to
144.20
1.0979 to
1.1980
USD Rate
JPY Rate
)RFXV$UHDVLQ0DUNHW5LVN
0DQDJHPHQWLQ
Enhanced the stress testing
mechanisms by implementing
an integrated market risk stress
testing framework. This framework
takes into account all market
risk factors and a wider range of
scenarios, as opposed to a silo
approach. These enhancements
LUHISLX\HU[PJH[PVUVML_WVZ\YL
to multiple market and risk factors.
The Treasury System upgrade is in
progress, and it is expected that
the upgraded system to go live
^P[OPULUOHUJPUNLMJPLUJ`
of treasury related functions and
the addition of several new features
facilitating improved market and
liquidity risk management and
monitoring functions.
Increased focus was placed on
enhancing the mechanisms in
place to assess, measure and
monitor interest rate risks including
limits and regular monitoring.
Daily Value at Risk (VAR) Limits
have been established to assess
the impact of Foreign Exchange
and Interest Rate Risks on Open
Positions and Treasury Bill/Bond
portfolios.
215
Governance
Risk Management
2SHUDWLRQDO5LVN
Operational risk is the direct or indirect
loss resulting from inadequate or failed
internal processes, people and systems
or from external events. According to
)HZLS00KLUP[PVUZ3LNHS9PZRPZPUJS\KLK
as a component of Operational Risk.
3HRSOH5LVN
People risk consists of the potential
losses arising from human resource
related aspects such as lack of
appropriate human resources,
inappropriate employee activity and
failure to comply with employee related
requirements. The Bank manages
risks attached to its workforce
through comprehensive HR policies
and processes, effective recruitment
practices, employee relations
management, performance management
programmes and investment in training
and development. Meanwhile, manpower
requirements for each year are aligned
with the Banks strategic plan in order to

ensure the adequacy of human resources
for the Banks business plans for coming
year.
7HFKQRORJ\5LVN
;LJOUVSVN`YPZRPZKLULKHZ[OLYPZRZ
associated with the ownership, use,
operation, involvement and adoption
of IT within the Bank. This includes
breakdowns and failures in IT systems,
technological obsolescence, and
inadequate infrastructure to support
business volumes among others.
The Banking sector continues to depend
heavily on innovative technologies in
delivery of products and services. Hence
technology emerge as a key source
of competitive edge, with increased
emphasis placed on internet/mobile
connectivity based digitalised services,
thus underscoring the importance of
effective IT Risk Management.
Risk of
Inadequate or
Failed Internal
Processes
People Risk
2SHUDWLRQDO
5LVN
Legal Risk
Risk from
External
Events
216
Risk of IT
Systems
Issues
The Banks IT framework is governed by

its IT policies and procedures, which is
reviewed and monitored by the Banks IT
Steering Committee and IT Department.
Determining the required upgrades in
technology is a crucial element of the
Strategic Planning process. The IT
Department consistently reviews the need
MVYZ`Z[LTPU[LNYH[PVUZTVKPJH[PVUZHUK
the use of new software and hardware.
Continued research and development
efforts are ongoing to improve the
LMJPLUJ`HUKKLSP]LY`VM[OL)HURZ
key operations by utilising advances in
technology. System Audits are conducted
for each system, based on which
adequate controls are implemented.
In addition, the IT Department, during
the year initiated a project to obtain
0:6JLY[PJH[PVUMVYP[Z
core processes, thereby simultaneously
complying with Baseline Security
Standards Directive by CBSL. This
has contributed to improved IT related
policies and procedures which will
notably improve many areas in IT Risk
Management as well.
/HJDO5LVN
This is the risk arising from noncompliance with regulatory/statutory
provisions, uncertainty due to legal
actions or uncertainty in the applicability
or interpretation of relevant laws
applicable to the Bank.
The Banks legal risk management
is implemented in line with Legal
Risk Management Policy, through its
comprehensive framework of internal
procedures and directives. Business
Lines/Units are responsible for ensuring
that the exposure to legal risk is
TPUPTPZLK"HSSSLNHSSÌPUKPUNHNYLLTLU[Z
are approved and signed off by risk,
JVTWSPHUJLHUK*OPLM3LNHS6MJLYVM[OL
Bank and internal procedures are in place
to duly discharge responsibilities under
such contracts.
>LSSKLULK
segregation of duties,
clear management
reporting lines, robust
internal controls
together with a
policy and procedure
framework used by
the Bank can be
considered as pillars
of sound Operational
Risk Management.
0DQDJLQJ2XU2SHUDWLRQDO5LVN
Processes
The Operational Risk Management
framework and processes are conducted
according to the Operational Risk
Management Policy of the Bank, and the
other related policies approved by the
Board and the applicable regulations.
*RYHUQDQFH As detailed in the three
lines of Defence model adopted by
the Bank, business/functional units
hold overall responsibility for managing
6WLYH[PVUHS9PZRPUSPUL^P[O[OLKLULK
parameters. The Operational Risk
Management Unit (ORMU) functions
within the Integrated Risk Management
Unit and constantly reviews the adequacy
of policies and processes in place to
manage Operational Risk as well as
mitigation strategies. A comprehensive
Operational Risk policy framework
approved by the Board of Directors
and the internal procedures which are
in line with the Banks Policies provide
ZWLJPJN\PKHUJLVUTHUHNPUN[OLYPZRZ
associated with people, processes and
technology whilst achieving organisational
objectives.
,GHQWLFDWLRQDQG$VVHVVPHQW
0KLU[PJH[PVUVMWV[LU[PHSYPZRHYLHZPU
key operations is done through Risk
and Control Self Assessments (RCSA),
which are carried out by all key business
units at least on an annual basis. The
assessments entail the evaluation of the
exposure level on each key Risk based
VUKLULKWHYHTL[LYZZL[V\[PU[OL
Assessment procedures, for both inherent
and residual risks. Meanwhile, the ORMU
engages with all business units through
periodic small group workshops in
order to assess the residual risks and
determine appropriate corrective action
and controls. Other sources for risk
PKLU[PJH[PVUPUJS\KLPU[LYUHSSVZZKH[H
reports sent by business or functional
units, and relevant external operational
loss experiences if available.
0RQLWRULQJ Most of the monitoring
activities of Operational Risks are
conducted online through the Operational
Risk Management IT system. The system
includes a comprehensive operational
loss database which allows branches and
departments to report internal loss events
on a day to day basis. Operational loss
reports are monitored with an analysis of
each occurrence and description of the
nature and cause of loss, while events
are rated based on severity and impact.
The Operational Risk Management
Unit evaluates the reported events and
takes necessary action to integrate the
required internal controls and/or process
improvements into the Banks operations,
while the Corporate Management and
BIRMC are regularly updated on the loss
events, and appropriate remedial and
preventive decisions/actions are taken.
reporting lines, robust internal controls

together with a policy and procedure
framework used by the Bank can be
considered as pillars of sound Operational
Risk Management.
.H\5LVN,QGLFDWRUV
The Key Risk Indicator (KRI) framework
has helped us over the years to
ZPTWSPM`[OLYPZRPKLU[PJH[PVUWYVJLZZ
and business friendly presentation of
them across all key business units and
functions. Board approved thresholds
MVY290ZOH]LILLUYL]PL^LKHUKYLULK
K\YPUN[OL`LHY;OLMYHTL^VYRJSHZZPLZ
the key risks the Bank is exposed to in
a non-technical manner, so that both
technical and non technical audiences
can understand the risks evident from
indicators. The KRI exposure results
are updated quarterly, and submitted to
Management Committee and BIRMC
for information and directions where
ULJLZZHY`4P[PNH[P]LHJ[PVUZMVYPKLU[PLK
Risk areas are regularly initiated by the
ORMU in concurrence with the Corporate
Management and BIRMC.
&RQWURODQG0LWLJDWLRQThe Banks risk

mitigation practices and response plans
are designed in line with industry best
practises, and are in compliance with
YLN\SH[VY`YLX\PYLTLU[Z>LSSKLULK
segregation of duties, clear management
217
Governance
Risk Management
Key Risk Indicator Framework

Area
Indicator
Threshold (Quarterly)
Retail Banking: Adequacy of HR

Z[HMUNSL]LSZ[VTLL[^VYRSVHKWSHUZ
Staff turnover in executive grades
Warning
Critical
1.0%
1.5%
Retail Banking: Compliance and

Legal - Staff breaches of code of
conduct including ethical standards,
PU[LNYP[`HUKJVUKLU[PHSP[`
Number of internal frauds per business/

functional unit
Warning
Critical
0.009
0.012
Total fraud value reported during the quarter,

per business/functional unit
Warning
Critical
Rs 7,500
Rs 9,000
Retail Banking: Technology
Total number of breakdowns per ATM
Branches
Cause
Hardware
Software
Cash low
Communication
Power
Off-site
Cause
Hardware
Software
Cash low
Communication
Power
Retail Banking: Credit Operations

including Pawning
Retail Banking: Credit Card

Operations
218
Warning
0.652
0.019
0.019
0.021
0.049
Warning
2.150
0.069
0.356
0.241
1.345
Critical
0.685
0.020
0.020
0.022
0.051
Critical
2.365
0.076
0.392
0.266
1.480
Value of Dud and Stolen pawned articles

reported
Warning
Critical
Rs 1.0 Mn
Rs 1.5 Mn
Value of Dud and Stolen articles reported

compared to total Pawning Advances as a
percentage
Warning
Critical
0.005%
0.010%
Number of credit defaults handed over to

recoveries for recovery and legal action per
Branch/Credit Department
Warning
Critical
0.72
0.90
Value of the credit defaults handed over to

recoveries for recovery and legal action as a
percentage of Advance Portfolio
Warning
Critical
0.175%
0.35%
Reported total number of credit cards lost/

stolen compared to total number of credit
cards
Warning
Critical
0.009%
0.010%
Value of counterfeit and CNP (card not

presented) credit card frauds compared to
total credit card advances.
Warning
Critical
0.04%
0.05%
Reported total number of counterfeit credit

cards compared to total credit card base
Warning
Critical
0.043%
0.058%
,QWHUQDO/RVV(YHQW5HSRUWV
Internal loss data collection is one of
the key elements of Capital Calculation
under Basel II Advanced Measurement
(WWYVHJO;OLSVZZKH[HHYLJSHZZPLK
into seven Basel loss event types
and eight Basel business lines in
order to identify them by causes and
various business segments within the
organisation.
2SHUDWLRQDO5LVN&DSLWDO&KDUJH
&DOFXODWLRQIRU2SHUDWLRQDO5LVNXQGHU
'LIIHUHQW$SSURDFKHV
We have conducted an assessment
of the Banks readiness with Basel II
advanced approaches in Operational Risk
this year in line with the CBSL Directives
on Operational Risk Capital Calculation
under The Standardised and Alternative
Standardised Approaches.
Our Internal Loss Data collection of over

seven years in a single database has
become a valuable source of information
for management of operational risks.
These data bring out an objective,
X\HU[PLK]PL^VMPUJ\YYLKYPZRZ
losses. Majority of the events reported
are recovered during the year and are
categorised as Near Misses, once
recovery is complete.
Our test computations indicate that

the Banks Capital Adequacy can be
improved through migrating to The
Standardised Approach (TSA) or
Alternative Standardised Approach (ASA)
under Operational Risk, and therefore
we are currently looking into the avenues
of obtaining the regulatory approval to
move on to such advanced approaches
under Basel II Operational Risk Capital
Calculation.
2SHUDWLRQDO5LVN5HYLHZV
The Banks polices, processes, new
products, systems and contracts/service
level agreements entered in to with third
parties for obtaining various services etc.
are reviewed prior to execution by the
operational risk function in order to ensure
that the operational risks are adequately
managed.
Risk Reviews during the year 2015
%
10
1
25
10
54
Policies,Procedures,
Directives
Sign-Off for Products/
Concept Papers
Product / Customer
Applications
Service Level
Agreements/MOU/NDA
System Requirement
Specications/RFP
.H\)RFXV$UHDVLQ2SHUDWLRQDO5LVN
0DQDJHPHQWLQ
During the year under review, the
Bank effected the policies, systems
and procedures required to migrate
to the Alternative Standardised
Approach (ASA) for Operational
Risk capital charge calculations,
in accordance with CBSL/Basel II
guidelines.
The scope of the Banks Risk
and Control Self-Assessment
framework was widened to
encompass all departments.
Developed and implemented
several new policies, primarily
addressing technology and IT
systems related risks.
Enhanced the quality and
frequency of risk reporting, with
the Operational Risk dashboard
reviewed by the BIRMC and Board
on a quarterly basis.
Terms of Reference for all
Management Committees were
reviewed with necessary updates,
and Board approval was obtained
&RPSOLDQFH5LVN
Compliance Risk is managed by the
Compliance Unit of the Bank, headed
by the Head of Compliance. More
information on Compliance Management
is elaborated on pages 226 and 227.
6WUDWHJLFDQG5HSXWDWLRQDO5LVNV
Strategic risks are the potential losses
arising from the possibility of the Banks
future business plans and strategies
being inadequate.
Reputational risks impact the Banks
current or prospective earnings
capacity, resulting from damage to its
PTHNL[OYV\NO[OLSVZZVMJVUKLUJL
and breakdown in relationships with
transactional stakeholders.
0DQDJLQJ2XU6WUDWHJLFDQG
5HSXWDWLRQDO5LVNV
The Bank manages its strategic and
reputational risks in a cohesive manner
encapsulating all business units and
employees. All strategies and business
plans are initiated at respective business
lines, discussed extensively and approved
by the Board and the Corporate
Management. Actual performance is
monitored against the set strategic
objectives on a continuous basis.
Banks code of ethics and a culture which
upholds values of honesty and integrity,
as well as the Banks well-articulated
policy framework play a crucial role in
the organisations Reputational Risk
Management.
3ROLF\)UDPHZRUN The Strategic
Risk Management Policy outlines the
structures and processes to manage the
strategic risks faced by the Bank. The
Customer Grievance Handling Policy
enables customers to communicate
their grievances, facilitated by a 24-hour
hotline. All such reported grievances are
attended to and followed up in line with
JSLHYS`KLULKWYVJLK\YLZ:PNUPJHU[
219
Governance
Risk Management
Each entity within the Group has in place an appropriate

YPZRTHUHNLTLU[WOPSVZVWO`ZWLJPJ[VP[ZVÛ
operations, also aligned with the risk framework of the
parent entity, the Bank.
grievances are submitted to Corporate
Management for appropriate action and
also reviewed by the BIRMC based on
the severity. Meanwhile, the Bank also
has in place a Whistle Blowing Policy,
allowing any Team Member who has
a legitimate concern on an existing or
potential wrongdoing by any person
within the Bank, to come forward
voluntarily, and bring such concerns to
the notice of the Board Audit Committee
Chairman through the Company
Secretary.
0HDVXULQJ6WUDWHJLFDQG5HSXWDWLRQDO
5LVNV
We adopt comprehensive scorecards to
measure the exposure to Strategic and
Reputational Risks.
*URXS5LVN0DQDJHPHQW
Given the varying business lines of the
Banks subsidiaries, we recognise that
each of the group entity has a different
YPZRWYVSL;O\ZLHJOLU[P[`^P[OPU[OL
Group has in place an appropriate risk
THUHNLTLU[WOPSVZVWO`ZWLJPJ[VP[Z
own operations, also aligned with the
risk framework of the parent entity, the
Bank. The Parent persistently exercises
oversight on the risk management
framework of the group entities through
[OLMVSSV^PUN"
The Strategic Risk Scorecard has been

developed taking into consideration
the size, sophistication, nature and
complexity of the Banks operations.
The Scorecard is administered at least
annually.
A similar scorecard is administered for
Reputational Risk. The scorecard takes
into consideration a comprehensive range
of factors which could potentially affect
the Banks image and reputation.
All such Scorecards were reviewed
and updated based on the extensive
discussion and recommendations by the
)094*K\YPUN[OL`LHY[VIL[[LYYLLJ[
changes within the Bank as well as
industry and competitive dynamics.
220
;OL.YV\W9PZR6MJLYPZ
responsible for the coordination of
risk management mechanisms with
the subsidiaries.
The parent entity nominates
Directors to the Boards of the
group entities depending on the
required level of oversight.
The BIRMC periodically reviews the
YPZRWYVSLVM[OLNYV\WLU[P[PLZHUK
makes recommendations to the
Board.
Siyapatha Finance PLC, being
the largest subsidiary in the
Group has its own Integrated Risk
Management Committee, where
.YV\W9PZR6MJLYPZPU]P[LKMVY
meetings.
The Banks Board of Directors have
access to the Board minutes of the
Group Companies.
This year, in further enhancing the

Group Risk Management framework,
^LYL]PL^LKHUKYLULK[OL.YV\W
stress testing and scenario analysis
mechanisms.
&RPSOLDQFHZLWKWKH%DVHO
)UDPHZRUN
The Bank has complied with the
regulatory requirements of Basel II, and
will continue to comply with industry best
practices and regulatory guidelines as
per the national implementation plan of
the CBSL, including building expertise,
technical skills, and IT/Data requirements.
The Bank has already performed
test calculations for meeting Basel III
requirements as directed by the CBSL,
and adequate changes have been
incorporated into the Banks 3 year
Strategic Plan in order to fully comply with
the requirements.
,QWHUQDO&DSLWDO$GHTXDF\
$VVHVVPHQW3URFHVV,&$$3
The Bank completed its ICAAP
documentation for the Bank/Group as
at 2014 year end into a consolidated
document in 2015, and submitted the
same to CBSL within the stipulated
timeline given. This submission included
responses and necessary improvements
to the previous year (2013) ICAAP
document, including the improvements
for addressing recommendations
provided by the regulator.
5LVN5HJLVWHU
Risk Factor
Impact
Risk Management/Assessment
Risk Mitigating Factors
Risk Rating
High
1. Key Committees: BIRMC, Credit

Committees, Credit Policy Risk &
Portfolio Review Committees
2. Credit Risk Management Unit
(CRMU)
3. Structured & standardised credit
sanction process.
4. Internal Risk Rating
5. Pre-Credit Risk Evaluation
by specialised staff at Credit
+LWHY[TLU[Z 9LNPVUHS6MJLZ
6. Post-Credit monitoring and Loan
Review Mechanism
1. Board approved credit policies/

procedures, framework, annual
review exercise
2. Delegated authority levels,
reviewed regulations, Segregation
of duties between loan originator,
Administration & Risk.
3. Key input from the Risk Department
for pre/post granting credit risk
4. Independent Pre-credit Risk
evaluation by CRMU for exposures
over Rs 100 Mn
5. Watch listing, Early Warning Signals
(EWS)
6. Portfolio Risk assessment, Risk
management and reporting
Medium
1. Review the Banks concentration in

a number of areas, such as Top 30
exposures as a % of total portfolio,
product-wise, sector wise regionwise, collateral - wise etc.
2. Identify principal Risk factors which
affect the portfolio and required to
be stressed.
3. Concentration risk assessed based
VU/LYUKHOS/PYZOTHU0UKL_//0
1. Board approved limits on maximum

exposure
2. Setting of prudential limits, on
maximum exposure, reviewed
annually.
3. CBSL guidelines - single borrower/
group / related party
*SHZZPJH[PVUVMIVYYV^LYZLJ[VY
subsector
5. Monitoring of exposure against the
limits and NPAs on MoM & YoY
basis.
6. Trend analysis reported to BIRMC.
7. Stress testing/Sensitivity analysis
results reported to Management
/ BIRMC on quarterly basis for
necessary action.
Low
1. Sovereign Risk rating

4VUP[VYPUNVMZWLJPJZHUJ[PVUZVU
countries
3. Assessment of the political &
economic conditions of such
countries
Low
1. Limitations on lending/caps on
lending.
2. Monitoring of country-wise exposure
CREDIT RISK
Risk of borrower
default
CONCENTRATION RISK
Credit exposure
being concentrated
on one or few
lending sectors,
groups, and /
VYPUZ\MJPLU[
KP]LYZPJH[PVU
High
COUNTRY RISK
A collection of risks Low
associated with
investing or lending
to a foreign country.
These risks include
political risk,
exchange rate risk,
economic risk,
sovereign risk and
transfer risk.
221
Governance
Risk Management
Risk Factor
Impact
Risk Rating
1. Board Approved Policies

2. Measurement through key ratios
such as Net Loans to Assets, Loans
to Customer Deposits, Liquid Assets
to Short Term Liabilities etc.
3. Preparation of maturities of assets
and liabilities statement into time
bands
4. Measurement of liquidity in all major
currencies
5. Assessment of Liquidity Risk during
Economic Capital Calculation
under Internal Capital Adequacy
1. Monitoring of Board Approved

Liquidity Risk Appetite Limits
2. Measurement of liquidity in all major
currencies reported to ALCO,
analysed and decisions taken at
ALCO.
3. Stress Testing results on Liquidity
Risk are reported to BIRMC and
appropriate risk mitigation decisions
made.
4. Board approved Liquidity
Contingency plan.
Medium
MARKET RISK
LIQUIDITY RISK
Inability to meet the High
Banks obligations
in a timely manner
as and when they
become due.
INTEREST RATE RISK

Potential for loss
resulting from the
Banks assets and
liabilities having
different re-pricing
characteristics.
Medium 1. Board approved Policies

2. Prudential limits i.e. maximum
maturity, duration etc.
3. Assessment of Interest Rate Risk
during Economic Capital Calculation
Medium
Maturity gap analysis (various time
bands) residual term maturity
(Fixed Rate) / or next repricing
VH[PUNYH[L
2. Interest rate risk related reporting
and analysis at ALCO and BIRMC
3. Stress Testing and Scenario
Analysis, and the results are
reported to BIRMC and appropriate
decisions are made to mitigate risks.
4. VAR calculations on Treasury
Bill/Bond portfolios and related
monitoring against BOD approved
Limits
1
EQUITY RISK
Medium 1. Board Approved Policies
Impact to the
2. Equity Portfolio Performance Review
value of the Banks
3. Investment Committee
Equity Portfolio
4. Mark to market of the investment
(investments in
portfolio
Share Market)
5. Assessment of Equity Risk during
due to adverse
Economic Capital Calculation
movements in
stock market prices
222
Low
1. Return of equity portfolio /
movements in stock market
monitored by Investment Committee
and risk mitigation decisions made
2. Stress Testing on a regular basis,
and reported/decisions made at
BIRMC
Risk Factor
Impact
Risk Rating
1. Board Approved Policies

2. Assessment of Foreign Exchange
Rate Risk considered in setting
Treasury Limits and Products
3. Regular revaluation of open positions
4. Assessment of Foreign Exchange
Rate Risk during Economic Capital
Calculation under Internal Capital
Adequacy Assessment Process
(ICAAP)
5. Value at Risk (VAR) calculation on
Foreign Exchange Rate Sensitive
portfolios through IT Systems.
1. Continuous Monitoring of Board

approved limit framework as per
CBSL requirements depending on
the capital requirements & Risk
Management capability.
2. Regular stress testing for key
variables, reporting to BIRMC, and
appropriate decisions are made.
3. Segregation of responsibilities
IL[^LLU-YVU[6MJL4PKKSL6MJL
)HJR6MJL
4. Treasury and Core Banking IT
Systems in place enable tracking
and monitoring of exposures
5. Monitoring of forex exposures and
maturity gaps of assets & liabilities
6. Monitoring of Risk Appetite Limits
for Foreign Exchange Rate Risk and
BOD approved VAR limits
Medium
1. Capital adequacy ratios computed

regularly.
2. Stress testing under various
adverse/challenging scenarios
1. Fluctuation in capital Adequacy

ratios are monitored regularly
(Finance)
2. Capital augmentation measures
are put in place depending on the
outcome of monitoring (Finance/
ALCO)
3. Regular Economic Capital
Calculation under Internal Capital
Adequacy Assessment Process
(ICAAP) as per CBSL Guidelines
Medium
FOREIGN EXCHANGE RATE RISK

Foreign exchange High
rate risk arises
due to mismatches
in assets and
SPHIPSP[PLZPUZWLJPJ
foreign currencies.
The values of such
net exposures
^PSS\J[\H[L^P[O
exchange rate
movements.
CAPITAL RISK
9PZRVMPUZ\MJPLU[ High
capital resources,
to ensure the Bank
is well capitalised
relative to the
minimum regulatory
requirements
223
Governance
Risk Management
Risk Factor
Impact
Risk Rating
High
1. Adequacy & effectiveness of

Operational Risk Policies are
regularly assessed by IRMU and at
BIRMC meetings
2. Operational Risk is managed by
business units in accordance with
internal control requirements
3. Risk and Control Self Assessments
provided by the respective business
units, and Key Risk Indicators
Medium
1. Operational Risk Policies reviewed
annually or more frequently based
on the need.
2. Risk Management monitoring
through Operational Risk IT System.
Comprehensive operational loss
database is maintained in the
System to track losses by Event
Type and Business Line as per Basel
II
3. Material losses regularly analysed by
cause, and action taken to improve
system and controls to prevent
future recurrence
4. Risk review on new products,
processes, external suppliers/
outsourced service providers.
5. Operational Risk Appetite Limits,
and monthly monitoring / reporting .
1. Manpower planning in line with

expansion & changes in business
requirements.
<WNYHKPUNVMTPUPT\TX\HSPJH[PVUZ
and skill levels
3. Recognition of specialised skills
4. Bi-annually reviews/ assessment of
performance
5. Performance management systems
in place to recognise and reward
performance and identify training
needs
6. Succession and development plans
1. Robust HR policies, governance

structures, programmes and
processes in place and policies are
applied in a consistent manner.
2. Recruitment, Pre employment
screening, Employer feedback/Exit
interviews
3. Proactive HR programmes to
engage and receive feedback from
staff throughout the Bank
4. Strong staff development
programmes in place combining
e-learning, classroom training and
on the job training. Programmes
cover both general and specialised
areas and soft skills
5. Maintaining a low staff turnover ratio
6. Recruitment, pre employment
screening, employer feedback
7. Consistently applied disciplinary
procedures
OPERATIONAL RISK
The risk of loss
resulting from
inadequate or
failed internal
processes, people
and systems or
from external
events. This
KLUP[PVUPUJS\KLZ
legal risk, but
excludes strategic
and reputational
risks
PEOPLE RISK
Lack of appropriate High
human resources,
failure to manage
performance
and reward link,
unauthorised or
inappropriate
employee activity
and failure to
comply with
employment related
requirements
224
Medium
Risk Factor
Impact
Risk Rating
1. Technology planning is conducted

during the annual strategic planning.
2. Performing systems audits for each
& every system before deploying into
production environment
3. External/Internal vulnerability
assessment with Risk Management.
Process of identifying and assessing
risk.
4. IT and Systems Audit continuously
review and analyse new cost
LMJPLU[KLSP]LY`JOHUULSZ
5. IT Steering Committee
6. Risk reviews on new / amended
systems during requirement
ZWLJPJH[PVUVYWYVJ\YLTLU[Z[HNL
1. Technology planning as a part of

annual strategic planning process
which covers a 3 year period
2. Systems audits are performed
for each and every system
before deploying into production
environment
3. External/Internal vulnerability
assessment with Risk Management.
Process of identifying and assessing
risk
4. Banks IT Department/ IT Steering
Committee together with the
business lines, continuously review
HUKHUHS`ZLUL^JVZ[LMJPLU[
delivery channels.
5. Based on the outcome of the
systems audit, necessary controls
are implemented before live
implementation
6. External vulnerability assessment
carried out by external consultants
based on the need
7. IT Policies/ procedures investment
in latest technology, IT systems, in
line with ISO standards to ensure
competitive advantage.
8. Back up & disaster recovery,
Planning & testing in place. (BCP)
Medium
1. Independent Legal Department

2. Specialized legal advice obtained
from external consultants on a need
basis.
the controls reviewed by Legal
Department.
Low
1. Board Approved Legal Risk
Management Policy being applied
in all legal matters
the controls reviewed by Legal
Department
3. Policies & procedures in place
to ensure that business activities
with legal impact are properly risk
assessed and executed.
4. All legal documents/ Service
3L]LS(NYLLTLU[ZHYLZWLJPJHSS`
HWWYV]LKI`*OPLM3LNHS6MJLY
& also signed off by Risk &
Compliance Departments
5. Company Secretary function/
compliance to ensure compliance
^P[OZWLJPJYLN\SH[VY`YLX\PYLTLU[Z
TECHNOLOGY RISK
High
Risk arising from
non-availability of IT
systems, systems
break downs and
disruptions, or
not keeping in line
with the trends in
technology and
delivery channels.
LEGAL RISK
Risk arising from
litigation against
the Bank, faulty
documentation or
business not being
conducted as per
the applicable laws
High
225
Governance
Compliance
Review
We strive to achieve higher standard of compliance
by broadening the dimensions of existing regulatory
framework through high standard of integrity and ethical
conduct.
Compliance risk is the risk arising out of
non-compliance with applicable laws,
regulations, codes of conduct and
standards of good practice culminating
PUUHUJPHSSVZZVYSVZZ[V[OL)HURZ
reputation. The relevant compliance
laws could arise from multiple sources
including primary legislations, rules
and standards issued by regulators
and legislators, market conventions,
codes of best practices are promoted
by industry associations and internal
codes of conduct applicable to the
staff members of the Bank. Sampath
Bank has internal policies, rules and
procedures to guarantee that staff and
the management comply with relevant
laws and regulations. Further, we strive
to achieve higher standard of compliance
by broadening the dimensions of existing
regulatory framework through high
standard of integrity and ethical conduct.
of the Banks defence together with the

Risk Management Unit are responsible for
providing overall assurance to the Board
on the Banks level of compliance with
the relevant laws, regulations and other
applicable standards, procedures and
practices.
7KH&RPSOLDQFH8QLW
In accordance with the best practices
and good governance advocated by the
Banking Act Direction No 11 of 2007
for Licensed Commercial Banks, the
7KH&RPSOLDQFH6WUXFWXUH
The Banks three lines of defence
structure facilitates the effective
management and monitoring of
compliance risk. At the apex level, the
Board of Directors monitor the Banks
compliance through the Board Audit
Committee and the Board Integrated Risk
Management Committee (BIRMC).
The Compliance Unit as the 2nd line of
defence and Internal Audit as the 3rd line
of defence, which form crucial elements
Bank has established a Compliance

unit, which holds the responsibility for
monitoring the Banks overall compliance
risks. The Unit consistently assesses the
Banks compliance with laws, regulations,
statutory guidelines as well as internal
controls and policies. The Compliance
\UP[M\UJ[PVUZPUKLWLUKLU[S`MYVTWYV[
targets and is headed by a dedicated
Head of Compliance (HOC), who reports
directly to the Board Integrated Risk
Management Committee. The Units
staff cadre was further strengthened
during the year and currently consists
of 16 employees. Compliance sub-units
monitor Regulatory Compliance, Anti
Money Laundering (AML) Compliance
and Exchange Control Compliance.
The primary responsibilities of the
*VTWSPHUJL<UP[HYL"
0KLU[PJH[PVUHUKHZZLZZTLU[
of potential areas giving rise to
Compliance Risk
Recommendation of measures
to mitigate Compliance Risk and
corrective actions in the event of
non-compliance
7KH&RPSOLDQFH)UDPHZRUN
Formulating Compliance Policies
+LUPUN*VTWSPHUJL;HYNL[Z
Facilitating Compliance through Effective Communication, Training

and Awareness
*YLH[PUN*VTWSPHUJL>VYRV^Z
Monitoring and Reporting Status of Compliance
226
Dissemination of information to
business units regarding regulatory
requirements and guidelines
Ensuring that operational
procedures are aligned with the
regulatory requirements
Ensuring compliance with the
Financial Transactions Reporting
Act. This includes monitoring and
reporting suspicious transactions
Periodic reporting to the Board
Committee
&RPSOLDQFH5HSRUWLQJ
The Compliance Units periodic reporting
is two-fold. A detailed report, inclusive
of sign-offs from the Heads of Business
Units on statutory and mandatory
reporting requirements and the Banks
level of compliance is provided to the
Board of Directors on a quarterly basis.
Additionally, a monthly compliance
JLY[PJH[LPZWYV]PKLK[V[OL)094*VUH
monthly basis. The monthly Compliance
*LY[PJH[LPUJS\KLZ
Compliance on statutory/regulatory
reporting requirements
:PNUPJHU[UL^YLN\SH[PVUZ
directions issued by the regulators
Events of non-compliance
;YHPUPUNULLKZPKLU[PLKYLSH[PUN[V
the compliance function
Monitoring of compliance on
regulatory/anti-money laundering
Level of compliance reported by
the subsidiary companies
3ROLF\)UDPHZRUN
The Banks Compliance procedures and
guidelines are clearly set out in its Board
approved Compliance Policy. The Policy
KL[HPSZ[OLYPZRPKLU[PJH[PVUYVSLZHUK
responsibilities, structure and processes,
reporting lines and methods for risk
mitigation among others. The Policy
is reviewed by the Board periodically,
and updated as and when necessary.
Meanwhile, the Group Compliance Policy
outlines group-wide compliance risk
management, encapsulating the overall
compliance principles adopted by the
Bank and its subsidiaries.
&RPSOLDQFH&XOWXUH
The Compliance Unit strives to instil an
organisation-wide compliance culture
emphasising standards of honesty
HUKPU[LNYP[`>VYRV^PZHUHS`ZLK
and responsibility for compliance risk
THUHNLTLU[PZJSLHYS`KLULKHUK
documented. Training and awareness
programmes are carried out for staff
frequently to ensure that employees
are adequately aware of the Banks
compliance requirements, structures
and procedures. Meanwhile, all newly
recruited staff members are introduced
to the Banks audit and compliance
processes during induction. The
Compliance Unit takes a proactive
approach in promoting a culture of
compliance, and operates as a strategic
partner to all business units.
Focus Areas in 2015

The Compliance Unit widened
the scope and coverage of
its oversight on the Banks
subsidiaries during the year. All
subsidiaries are now required to
complete a compliance report on a
monthly basis.
Implemented a Risk-based
Compliance Assessment
mechanism, inclusive of key
performance indicators and
tolerance limits. This mechanism
enables the Unit to monitor the
Banks Compliance performance
HNHPUZ[KLULKWHYHTL[LYZHUK
recommend corrective actions if
required.
The Compliance Units
responsibilities were broadened to
include exchange control, which
previously functioned separately.
The Compliance Unit now serves
as an intermediary function
between the branches and the
OLHKVMJLPUL_JOHUNLJVU[YVS
functions.
Emphasis on increasing awareness
on the Banks Anti Money
Laundering framework through onsite and off-site training.
227
Governance
Corporate
Governance
Commitment to the highest standards of transparency,
reliability and ethical business conduct are well-established
guiding principles within the Bank and are articulated in a
comprehensive policy framework and a Code of Conduct
which is communicated to and understood by all employees.
&KDLUPDQV6WDWHPHQW
Dear stakeholders,
As an Organisation, we are cognisant of
the value of sound corporate governance
practices in providing a fundamental
base for ensuring sustainable growth
and developing trusted relationships
with key stakeholders. Commitment to
the highest standards of transparency,
reliability and ethical business conduct
are well-established guiding principles
within the Bank and are articulated in a
comprehensive policy framework and a
Code of Conduct which is communicated
to and understood by all employees. In
addition to legal requirements, the Banks
policy framework embraces international
best practices and comply with voluntary
frameworks, providing a solid foundation
for performance as well as effective risk
management of our economic, social
and environmental performance. Formal
governance structures serve to ensure
judicious empowerment and create an
appropriate balance of power within the
Organisation.
7KH%RDUGRI'LUHFWRUV
Sampath Banks Board consists of
11 Directors, 9 of whom are Non
Executive Directors. 11 Directors
remained with the Bank, increasing
[OLLMJPLUJ`VM[OL)VHYKHZ+PYLJ[VYZ
have a deeper understanding of the
material issues affecting the Bank and
228
continuity of strategy and direction is

ensured. Directors bring together a
variety of perspectives to the Board,
including professional, academic and
entrepreneurial insights which enhance
the quality and depth of discussions.
Directors are also diverse in terms of
gender and age representation with three
female professionals on the Board and
two Directors below 35 years of age.
The feedback obtained from our robust
stakeholder engagement mechanisms
form a key input in strategy formulation,
ensuring that the Banks growth is
responsible and sustainable. Our
stakeholder engagement mechanisms are
structured and comprehensive, providing
valuable insights into stakeholder
concerns and enabling us to provide
appropriate responses whilst balancing
interests.
+RZWKH%RDUG2SHUDWHV
The primary responsibilities of the Board
includes setting the Banks strategic
direction with the objective of delivering
Z\Z[HPUHISLZ[HRLOVSKLY]HS\LKLUPUN
the Risk Appetite, governance structures
and formulating comprehensive
policy frameworks. The Board is also
responsible for regularly reviewing the
Banks performance, internal controls,
policies and procedures whilst ensuring
G4-42
compliance to all regulatory and

mandatory requirements. The Board has
appointed several Sub Committees to
assist in the discharge of its duties and
Chairpersons of these Sub Committees
provide feedback to the Board. Roles and
responsibilities for all Sub Committees
OH]LILLUJSLHYS`KLULK;OL)VHYK
and Sub Committees convene regularly
and receive regular reports on the Banks
performance, credit quality, asset and
liability management, risk management,
strategy and compliance from Key
Management Personnel, whilst being
kept abreast of changes in the macro
economic and industry landscapes.
Directors have full and timely access
to all relevant information and have
open access to employees at all levels.
Directors are also given the opportunity
to attend external training sessions,
conferences, and seminars and have
access to independent professional
advice to ensure that they are kept
abreast of all external developments that
could potentially impact the Bank and its
operating context.
6HWWLQJ6WUDWHJLF'LUHFWLRQ
The Bank has a three year revolving
Strategic Planning model which has
been in force since 2009 and is revised
every quarter with a comprehensive
review done annually. The Strategic
Plan is founded upon emerging
economic and industry trends, as well
as competitive strengths in the Banks
value creation process. Strategic priorities
HYLZ\IZLX\LU[S`ZL[^P[OKLULK
performance parameters for ensuing year
covering earnings, stability, credit quality,
VWLYH[PVUHSLMJPLUJ`HUKJHWP[HSPZH[PVU
among others. During the year under
review, the Board monitored progress
against Strategic Plan 2014-2016 and the
Plan for 2015-2017 has been reviewed
and approved by the Board along with
the Budget for 2016 using the same
model.
5LVN0DQDJHPHQW
%RDUG)RFXV$UHDVIRUWKH<HDU
Board oversight for Risk Management

is through the Board Integrated Risk
Management Committee, which reports
to the Board at all regular meetings.
;OL)VHYKHSZVKLULZHUKYLN\SHYS`
reviews the risk appetite of the Bank
and ensures that risk parameters are
THPU[HPULK^P[OPU[OLKLULK[VSLYHUJL
limits. The risk management framework
and activities are more fully described in
the Risk Report on pages 202 to 227 and
the Report of the Board Integrated Risk
Management Committee on pages 289
to 291. Additionally, the Board has noted
and complied with the directions and
guidelines issued by CBSL during 2015.
Key Board agenda items during the year

included Leadership Development &
Succession Planning and Performance
Management.
The Board is also responsible for

formulating and implementing an
appropriate framework of internal controls
which ensure that the Banks assets
are safeguarded, proper accounting
records are maintained and provision of
management information happens in a
timely and relevant manner. The Directors
undertake an annual assessment of the
effectiveness of Internal Control Over
Financial Reporting in accordance with
the Banking Act Direction No11 of 2007.
As required by the Direction, the Bank
has obtained reports from the Banks
External Auditors, Messrs Ernst & Young,
for the Internal Control Over Financial
Reporting for the year ended 31st
December 2015.
6WDWXWRU\&RPSOLDQFHDQG
3HQDOWLHV
The Board has complied with the
requirements of the Colombo Stock
Exchange on all matters related to capital
markets during the year. There were no
penalties imposed on the Bank by the
authorities.
'HFODUDWLRQ
I Dhammika Perera, Chairman of
Sampath Bank PLC, hereby declare that
all the members of the Board of Directors
and the Senior Management personnel
OH]LHMYTLKJVTWSPHUJL^P[O[OL*VKL
of Conduct applicable to them as laid
down by the Board of Directors in terms
of Section 3(8) (ii) (g) of the Banking Act
Direction No 11 of 2007, for the year
Dhammika Perera
Chairman
Colombo, Sri Lanka
16th February 2016
229
Governance
*RYHUQDQFH6WUXFWXUH
G4-34,36
External Auditors
Shareholders
6XEVLGLDULHV
Board HR & Remuneration Committee
Siyapatha Finance PLC

Leasing, factoring, pawning &
accepting deposits
Board of Directors Subsidiaries
Board Committees
Board of Directors Bank
Board Nomination Committee

Board Integrated Risk Management Committee
Board Related Party Transactions Review Committee
Sampath Centre Ltd Renting of Commercial Property

Managing Director
Board Strategic Planning Committee
SC Securities (Pvt) Ltd Stock Broking
Board Shareholder Relations Committee

Solutions Ltd - Developing Software
Solutions & Maintenance
of Hardware

Board Marketing Committee
Executive Director /
Group Chief
Financial Officer
Cheif Operating
Officer
AGM Card Centre
Chief Legal Officer
DGM - Marketing
and Business
Development
DGM - Corporate
Banking
Group
Risk
Officer
Card Centre
Chief Dealer
Legal
Risk
Management
Corporate
Finance
Treasury
Middle Office
Strategic Planning
& Research
Administration &
Engineering
Finance
Department
Commercial
Credit/
City Branch
FCBU
Branch
Network
IT
Wealth
Management
Treasury
Back Office
Marketing
Treasury
Planning &
Budgeting
Recoveries
Operations
Human Resources
& Training
Treasury
Investment
Head of Internal
Audit
Company Secretary
DGM HR
DGM - Credit
AGM - New IT
Business Development
Head of IT
AGM Global Business
DGM - Branch
Banking
AGM Branch Banking 1
AGM Operations
AGM Finance
AGM Strategic Planning &

Research
DGM - Operations
AGM Branch Banking 2
DGM - Finance
Chief
Manager
System Audit
Head of
Compliance
Compliance
Company
Secretary's
Office
Remittances
Development
Banking
Trade Services/
International Ops.
System Audit
Business
Development
Corporate Credit/
Corporate Branch
Deposit
Mobilisation
New IT System
Development
Internal
Audit
EBU
Functional Reporting
Administrative Reporting
Financial Reporting
Department / Unit
230
Management Committees
(1) Asset & Liability Management
Committee
(2) Deposit Mobilisation Committee
(3) Investments Committee
(4) IT Steering Committee
(5) Credit Policy, Risk and Portfolio

Review Committee
(6) Procurement Committee
(7) SLFRS Steering Committee
(8) Internal Control Steering
Committee
(9) Corporate Management

Committee
&RUSRUDWH*RYHUQDQFH+LJKOLJKWVLQ
%RDUGRI'LUHFWRUV
Re-election of the following Directors at the Annual General Meeting:

Mr Deepal Sooriyaarachchi
Prof Malik Ranasinghe
Mrs Dhara Wijayatilake
Mr Sanjiva Senanayake
&RPSDQ\6HFUHWDU\
Appointment of Mrs Anuja Goonetilleke as Company Secretary with effect

from the 1st October 2015 after the retirement of Group Company Secretary
Mr S Sudarshan.
3ROLF\)UDPHZRUN
Under the Banks policy framework 34 policies were reviewed/updated during

the year.
$XGLW
Re-appointment of Messrs Ernst & Young, Chartered Accountants, as

Auditors of the Bank, to assess compliance with the Banking Act Direction
No 11 of 2007 on Corporate Governance for Licensed Commercial Banks
and subsequent amendments thereto and to provide assurance on the
Directors Statement on Internal Control Over Financial Reporting.
5LVN0DQDJHPHQW
Introduction of integrated market risk stress testing mechanism
231
Governance
*RYHUQDQFH)UDPHZRUN
G4-34
Sampath Banks Corporate Governance

framework has been developed to
comply with the requirements of the
Central Bank of Sri Lanka, the Colombo
Stock Exchange and other relevant laws
and regulations. In addition, the Bank
has voluntarily adopted the Code of Best
Practice on Corporate Governance 2013
issued jointly by the Institute of Chartered
Accountants of Sri Lanka (ICASL) and
the Securities & Exchange Commission
of Sri Lanka (SEC), the G4 standards
for Sustainability Reporting issued by
the Global Reporting Initiatives and the
Integrated Reporting Framework issued
by the International Integrated Reporting
Council (IIRC).
*RYHUQDQFH6WUXFWXUH
Directors are elected by shareholders
at the Annual General Meeting except
JHZ\HS]HJHUJPLZÔPJOHYLSSLKI`
Shareholders
Board of
Directors
External
Auditors
Board SubCommittees
Managing
Director
Corporate
Management
Team
Head of Internal
Audit
Company
Secretary
Senior
Management
Team
Standards and Principles

Internal
External
Vision and Values
Companies Act No 7 of 2007
Articles of Association
Banking Act No 30 of 1988 as amended, Anti Money

Laundering Laws and Regulations.
Code of Conduct
Banking Act Direction No11 on Corporate

Governance for Licensed Commercial Banks
Code of Ethics
Listing Rules of the Colombo Stock Exchange
Board and Board Sub

Committee Charters
Code of Best Practice on Corporate Governance

issued by the ICASL and the SEC
Policies
Procedures
Directives
Integrated Reporting Framework issued by the

International Integrating Reporting Council (IIRC)
G4 Standards for Sustainability reporting issued by
the Global Reporting Initiative
the Board until the next Annual General

Meeting in accordance with the Articles
of Association. The Board determines
the strategic direction of the Bank and
provides guidance to the Corporate
Management Team in delivering
sustainable value to our stakeholders over
the short, medium and long term. The
Corporate Management Team led by the
Managing Director who is responsible for
implementation of strategy and managing
the performance of the Bank on a day
to day basis. The Board approves
strategic plans, governance structures,
risk appetite, policies and procedures
and delegation of authority, providing
a framework for decision making.
Stakeholder engagement processes
to identify and address needs of other
ZPNUPJHU[Z[HRLOVSKLYZHYLLTILKKLK
into the organisation policy framework
to ensure that there is long term value
created for all stakeholders.
.YV\W9PZR6MJLY
Head of
Compliance
The Board has appointed and delegated

ZWLJPJYLZWVUZPIPSP[PLZ[VZL]LYHS)VHYK
Z\IJVTTP[[LLZ[OYV\NOZWLJPJ[LYTZ
Employees
232
of reference to assist in the discharge

of their collective duties. Members of
these sub committees focus on their
designated areas of responsibility,
providing oversight in their respective
areas of expertise.
Governance Systems
Stakeholder Engagement and
Management
Strategic Planning
Shareholder Relations
Talent Management
Risk Management and Compliance
IT Governance
Sustainability Reporting
G4-34,38

The Committee consists entirely of 5 Independent Non Executive
Directors. The Chairman is a Fellow Member of the Chartered Institute of
4HUHNLTLU[(JJV\U[HU[ZHUKOVSKZZPNUPJHU[HUKYLSL]HU[L_WLYPLUJL
PU[OLUHUJPHSZLY]PJLZPUK\Z[Y`
0U5DQLO3DWKLUDQDChairman
IND/NED
IND/NED
IND/NED
IND/NED
IND/NED
Mandate:
;VWYV]PKLHUPUKLWLUKLU[HUKVIQLJ[P]LYL]PL^VM[OLUHUJPHSYLWVY[PUNWYVJLZZPU[LYUHSJVU[YVSZHUK[OLH\KP[M\UJ[PVUPULUZ\YPUN"
Adequacy and fairness of disclosure.
Transparency, integrity and quality of Financial Reporting.
Board Human Resources and Remuneration Committee
The Committee consists of 4 Directors out of whom, 3 are Non Executive
Directors and 1 is an Executive Director.
0U'HHSDO6RRUL\DDUDFKFKL - Chairman
(Director until 12th November 2015)
Miss Annika Senanayake
Mr Deshal De Mel
Mr Aravinda Perera
IND/NED
NID/NED
IND/NED
NID/NED
ED
Mandate:
Establish and review the Human Resources (HR) and Remuneration policies, determine the quantum of compensation of Key
Management Personnel and succession planning.
The Committee consists of 4 Non Executive Directors, the Chairperson is
an Independent Director.
0LVV$QQLND6HQDQD\DNHChairperson
Mr Dhammika Perera
Mrs Saumya Amarasekera
IND/NED
NID/NED
NID/NED
IND/NED
NID/NED
Mandate:
+LULHUKLZ[HISPZOUVTPUH[PVUWYVJLZZMVYKPYLJ[VYZYLJVTTLUKKPYLJ[VYZMVYYLLSLJ[PVUKL]LSVWHZ\JJLZZPVUWSHUMVYKPYLJ[VYZ
HUKKLULLSPNPIPSP[`JYP[LYPHMVY[OLZLSLJ[PVUWYVTV[PVUVM2L`4HUHNLTLU[7LYZVUULS
Board Integrated Risk Management Committee (BIRMC)
The BIRMC was set up in compliance with the Banking Act Direction
No 11 of 2007 for Licensed Commercial Banks and consists of 3 Non
Executive Directors and 2 Executive Directors.
0UV'KDUD:LMD\DWLODNHChairperson
Mr Aravinda Perera
IND/NED
NID/NED
IND/NED
IND/NED
ED
ED
Mandate:
Review and update risk management policies, ensure effective design and implementation of risk management framework, review
levels and direction of major risks, report and recommend to Board on Risk and Compliance related matters.
(ED Executive Director, NED Non Executive Director, IND Independent Director and NID Non Independent Director)
233
Governance
G4-38,39
Board Related Party Transaction Review Committee

The Committee consists of 3 Non Executive Independent Directors and 1
Executive Director.
0UV'KDUD:LMD\DWLODNHChairperson
IND/NED
IND/NED
IND/NED
ED
Mandate:
The Committee is derived from the Code of Best Practice issued by the Securities & Exchange Commission of Sri Lanka and the
Listing Rules of the Colombo Stock Exchange. Board Related Party Transactions Review Committee is responsible for Developing a
Related Party Transaction Policy, Reviewing in advance all proposed Related Party Transactions and Advising the Boards on making
Immediate Market Disclosures.
The Committee consists of 6 Directors out of whom, 4 are Non Executive
Directors and 2 are Non Executive Independent Directors.
3URI0DOLN5DQDVLQJKHChairman
Mr Deshal De Mel
Mr Aravinda Perera
IND/NED
NID/NED
IND/NED
IND/NED
NID/NED
ED
ED
Mandate:
The Committee is to oversee the credit and lending strategies and objectives of the Bank and operate a sound credit granting
process.
The Committee is headed by the Chairman of the Board and consists
of 9 Directors out of whom, 2 are Non Executive Directors, 5 are Non
Executive Independent Directors and 2 are Executive Directors.
0U'KDPPLND3HUHUDChairman
Mr Deshal De Mel
Mr Ranil Pathirana
Mr Aravinda Perera
NID/NED
NID/NED
IND/NED
IND/NED
NID/NED
IND/NED
IND/NED
IND/NED
ED
ED
Mandate:
The Board Strategic Planning Committee is responsible to the Board of Directors and reports on its activities regularly and assists the
Board in its general oversight of setting Strategic Direction, Budgeting and Monitoring.
234
G4-34,38

The Committee consists of 2 Non Executive Directors.
3URI0DOLN5DQDVLQJKHChairman
(appointed w.e.f. 16.02.2016)
Mr Deshal De Mel
Mr Channa Palansuriya - Chairman
IND/NED
NID/NED
NID/NED
Mandate:
Provide oversight on shareholder/investor relations.
The Committee consists of 5 Directors, out of whom, 3 are Non Executive 0U6DQMLYD6HQDQD\DNHChairman
Directors. 2 Committee members including the Chairman are Independent Prof Malik Ranasinghe
Mr Deshal De Mel
Directors.
Mr Aravinda Perera
IND/NED
IND/NED
NID/NED
ED
ED
Mandate:
Provide oversight for treasury management processes and performance, treasury related risks and review and update treasury
related policies.
The Committee consists of 4 Non Executive Directors, the Chairman
being an Independent Director.
0U'HHSDO6RRUL\DDUDFKFKLChairman
Mr Deshal De Mel
IND/NED
IND/NED
NID/NED
NID/NED
Mandate:
Responsible for formulating the Banks Customer strategy, Brand strategy and community engagement activities
235
Governance
G4-56
&RGHRI&RQGXFW
All employees including the Board of
Directors are bound to abide by the
ethics, values and expectations set out
in the Employee Code of Conduct. The
Code of Conduct addresses a range of
RL`PZZ\LZPUJS\KPUNJVUPJ[VMPU[LYLZ[
IYPILY`HUKJVYY\W[PVUJVUKLU[PHSP[`
fair dealing and compliance, among
others. The Code is made available to
all employees to ensure that the highest
standards of integrity and conduct are
maintained in dealings and interactions
with all stakeholders.
:KLVWOH%ORZLQJ3ROLF\
The Bank has a Whistle Blowing Policy
in place, which serves as a channel for
LHYS`PKLU[PJH[PVUVMJVYWVYH[LMYH\K
or risk by ensuring that employees
reporting legitimate concerns on potential
wrongdoings occurring within the Bank
HYLN\HYHU[LLKJVTWSL[LJVUKLU[PHSP[`
Such complaints are investigated
and addressed through a formalised
procedure and brought to the notice
of the Chairman of the Board Audit
Committee. The procedure is made
available through the intranet to ensure
awareness by all employees.
&XVWRPHU&KDUWHU
The Bank adopts the Customer Charter
prescribed by the Central Bank of Sri
Lanka, which forms the foundation for its
approach to managing customer needs.
,7*RYHUQDQFH
The Bank has led the industry by
embracing emerging technologies and
the role of IT in delivering customer value
has continued to gain prominence as
the Bank drives migration to e-based
WSH[MVYTZ;OLYLSPHIPSP[`HUKLMJPLUJ`VM
IT systems also has a direct impact on
the quality and timeliness of information
that is generated for regulatory reporting
236
(SSLTWSV`LLZ
PUJS\KPUN
the Board of
Directors are
IV\UK[VHIPKL
by the ethics,
]HS\LZHUK
expectations
ZL[V\[PU[OL
,TWSV`LL*VKL
VM*VUK\J[
and decision making. The Bank has thus
PKLU[PLK[OLJVTWL[P[P]LHK]HU[HNL
stemming from the appropriate
alignment of IT objectives with overall
business objectives. The IT governance
framework of the Bank is designed to
avoid failures and mitigate IT associated
YPZRZI`LUZ\YPUN^LSSKLULKYVSLZ
and responsibilities for IT stakeholders,
comprehensive policy frameworks,
business processes and infrastructure.
Best practices implemented by the Bank
in IT Governance include,
/PNOSL]LSMYHTL^VYR+LULZ
leadership, processes, roles
and responsibilities, information
requirements and organisational
structures
Independent assurance - Internal /
external audits (or reviews), provide
timely feedback about compliance
of IT with the Banks policies,

standards, procedures, and overall
objectives.
Resource management - Regular
assessments ensures that IT has
Z\MJPLU[JVTWL[LU[HUKLMJPLU[
resources to meet the Banks
demands.
Risk management - Risk
Management principles embedded
in the responsibilities of the Bank,
ensures that the Bank and IT
regularly assess and report IT
related risks and organisational
impacts.
Strategic alignment - A shared
understanding between the
Banks management and the IT
Department, enables the Board
and senior management to
understand strategic IT issues.
=HS\LKLSP]LY`;OLILUL[Z
achieved from each IT investment
is assessed prior to and after
implementation to ensure that
expected value has been delivered.
Performance management
reporting - Accurate, timely, and
relevant portfolio, programme,
and IT project reports to senior
management provides a thorough
review of the progress being made
[V^HYKZ[OLPKLU[PLKVIQLJ[P]LZVM
the IT project.
9
9
Chairman
Chairman
Chairman
9
9
Mr Deshal De Mel
Chairperson
Chairman**
Chairperson
9
Chairperson
9
9
Chairman
9
9
9
9
9
Available

Mr Aravinda Perera
Committee
Board Shareholder Relations
Committee
Board Strategic Planning
Committee
Transaction Review
Board Related Party
Chairman
Chairman
Terms of Reference
Mr Dhammika Perera
Mr Ranil Pathirana
Committee
Board HR & Remuneration
Directors
0HPEHUVKLSRI%RDUG6XE&RPPLWWHHV
Available
Available
Available
To be
Available
Available
Available
Need basis
Bi-Annual
Annually
Available
Available
formulated
Planned Frequency of
Quarterly
Need basis
Need basis
Meetings
Actual No of Meetings
Circulation of agenda and
papers
Once in two
Quarterly
months
Once
Once
in two
in two
months
months
13
17
7 days
7 days
7 days prior
7 days prior
7 days prior
7 days
7 days
7 days
7 days
7 days
prior
prior
prior
prior
prior
prior
prior
** Board Shareholder Relations Committee Chairman w.e.f 16th February 2016.
The Bank has led

the industry by
embracing emerging
technologies and the
role of IT in delivering
customer value has
continued to gain
prominence as the
Bank drives migration
to e-based platforms.
The Company Secretary Mrs Anuja

Goonetilleke is the Secretary for all
the Board Sub Committees and the
minutes of meetings are available in her
custody. Written Terms of Reference that
comply with the Corporate Governance
requirements of Central Bank of Sri Lanka
are available for the Sub Committees with
the Company Secretary.
%RDUG0HHWLQJV
G4-47
The Board of Directors held 19 Board

meetings during the year and its Sub
Committees held a total of 69 meetings.
Their main focus areas and attendance at
meetings are given below.
Focus Area
Main Banking Operations
28
Performance Review
10
Strategy and Budget
20
Risk Related Items
12
Governance
10
Succession Planning
16
Shareholder Matters
Others
237
Governance
Mr Dhammika Perera
16
13
19
18
19
19
18
Mr Deshal De Mel
19
Mr Ranil Pathirana
15
17
Mr Aravinda Perera
18
18
Total No of Meetings
19
Number of
Board Meetings
Board Marketing
Committee
Board Treasury
Committee
Board Shareholder
Relations
Committee
Board Strategic
Planning Committee
4
17
1
5
13
13
17
6
12
16
2
1
13
4
2
9
13
13
5
5
15
17
6WDNHKROGHUV5LJKWV)UDPHZRUN
19
Board Credit
Committee
Board Related Party

Transaction Review
Committee
Board Integrated
Risk Management
Committee
Board Nomination
Committee
Board HR and
Remuneration
Committee
Board Audit
Committee
Directors
Board
Meetings
%RDUGDQG6XE&RPPLWWHH$WWHQGDQFH
The Board recognises the rights of

all stakeholders, established by law
or through mutual agreements and
have placed a Corporate Governance
framework which encourages active
co-operation between Bank and
stakeholders. The commitment of the
Bank towards this aspect, are as follows:
6SHFLDO5HVROXWLRQV3DVVHGDW
WKH/DVW$QQXDO*HQHUDO0HHWLQJ
$*0
There were no matters that required
passing of special resolutions at the AGM
held on 31st March 2015.
Stakeholder
Banks Commitment
Shareholders
The Bank is committed to enhance long term shareholder value and facilitate the exercise of shareholders
rights.
Customers
The Bank is committed to maintain and enhance its public image as a sound, high quality and friendly place
to conduct banking at.
Employees
The Bank is committed to build a work environment where people can make a difference both as individuals
and as part of a team.
Community
The Bank is committed to meet its corporate responsibility and decisions on social and economic issues
concerning activities of the Bank are developed and adopted by its governance bodies with the participation
of Bank personnel.
238
0HDQVRI&RPPXQLFDWLRQ
'HFODUDWLRQ
The Bank communicates with its

stakeholders through the following
mechanisms:
I Aravinda Perera, Managing Director of

Sampath Bank PLC, hereby declare that
all the members of the Board of Directors
and the Senior Management personnel
OH]LHMYTLKJVTWSPHUJL^P[O[OL*VKL
of Conduct applicable to them as laid
down by the Board of Directors in terms
of Section 3(8) (ii) (g) of the Banking Act
Direction No 11 of 2007, for the year
The quarterly results are published

in the Newspapers in all three
languages and released to the
Colombo Stock Exchange (CSE).
;OLUHUJPHSYLZ\S[ZHYLKPZWSH`LK
on www.sampath.lk in an area of
the website devoted to Investor
Relations.
Financial results and business
strategies of the Bank are
explained to investors, Business
leaders and media personnel
through Investor Forums and press
releases.
Operational Reviews (pages 63 to
142 of this Annual Report).
Aravinda Perera
Managing Director
Colombo, Sri Lanka
16th February 2016
6WDWXWRU\&RPSOLDQFHDQG
3HQDOWLHV
The Company has complied with the
requirements of the Colombo Stock
Exchange on all matters related to capital
markets during the year. No penalties
have been imposed on the Company by
the authorities.
239
Governance
7KH&RGHRI%HVW3UDFWLFHRQ&RUSRUDWH*RYHUQDQFHLVVXHGMRLQWO\E\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWV
RI6UL/DQND&$6UL/DQNDDQGWKH6HFXULWLHVDQG([FKDQJH&RPPLVVLRQRI6UL/DQND6(&
G4-43,44
Principle
CA Sri
Lanka and
SEC Code
Reference
Compliance & Implementation
Status
A.1
The Board of Sampath Bank comprises 11 Directors, of whom 9 operate in

a Non Executive capacity, including the Chairman. Of the 9 Non Executive
Directors, 6 are Independent. The Managing Director and the Group Chief
-PUHUJPHS6MJLYHYL[OLVUS`,_LJ\[P]L+PYLJ[VYZVU[OL)VHYK;OL+PYLJ[VYZ
HYL"
Complied
A. DIRECTORS
A.1 THE BOARD
(1) Effective Board
1.
2.
Mr Dhammika Perera (Chairman/Non Executive Director)

Mr Channa Palansuriya (Deputy Chairman/Non Executive Director)
(Director until 12th November 2015)**
3. Mr Sanjiva Senanayake (Senior Independent Director/Non Executive Director)
4. Mr Deepal Sooriyaarachchi (Independent Non Executive Director)
5. Prof Malik Ranasinghe (Independent Non Executive Director)
6. Mrs Dhara Wijayatilake (Independent Non Executive Director)
7. Miss Annika Senanayake (Independent Non Executive Director)
8. Mr Deshal De Mel (Non Executive Director)
9. Mr Ranil Pathirana (Independent Non Executive Director)
10. Mrs Saumya Amarasekera (Non Executive Director)
11. Mr Aravinda Perera (Managing Director/Executive Director)
4Y9HUQP[O:HTHYHUH`HRL.YV\W*OPLM-PUHUJPHS6MJLY,_LJ\[P]L+PYLJ[VY
** Mr Channa Prabodha Palansuriya, the Deputy Chairman of the Bank

ceased to be a Director of the Bank with effect from the 12th of November
2015 in terms of Section 3 (1) (vi) of the Banking Act Direction No 11 of 2007
having been unable to attend three (03) consecutive meetings of the Board.
Attendance at Board Meetings during 2015

19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
0
240
1.
2.
Mr Dhammika Perera
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
10
11
12
Mr Deshal De Mel
Mr Ranil Pathirana
Mr Aravinda Perera
Meetings Attended
Meetings Not Attended
Principle
CA Sri
Lanka and
SEC Code
Reference
Status
(1) Effective Board

(Contd.)
A.1
The Board combines a diverse mix of skills and experience bringing together
academic, professional and entrepreneurial perspectives. There is also a
high level female representation, with three prominent female professionals
OVSKPUNIVHYKWVZP[PVUZ;OL)VHYKPZHSZVZ\MJPLU[S`KP]LYZPLKPUP[ZHNL
representation, with two Directors below 35 years of age. The collective
insights and acumen have generated discussion and debate on key aspects,
which have led to enhancing the overall effectiveness of the Board.
Complied
(2) Regular meetings
A.1.1
Board meetings are held regularly whilst special Board meetings are
convened as the need arises. During 2015 the Board held 18 pre-scheduled
meetings, one additional meeting and 6 meetings devoted to discuss
strategies. The following Board Sub Committees met during the year:
Complied

Board Human Resources and Remuneration Committee
Board Integrated Risk Management Committee
Board Related Party Transaction Review Committee
The Board uses ipads to access Board papers via secure connections and
Directors are able to join meetings even through remote access. Details of
Board meetings, Sub Committee Meetings and attendance are given on page
238 of this report.
%RDUGV5HVSRQVLELOLWLHV7KH)ROORZLQJ3URFHGXUHVDUHFDUULHGRXWWR6WUHQJWKHQWKH6DIHW\DQG6RXQGQHVVRIWKH%DQN
(3) Ensure the
formulation and
implementation of
sound business
strategy
A.1.2
The Board is responsible for setting strategy, policies and for monitoring
performance against agreed goals and KPIs. During the year, the Board
had 6 Strategic Planning sessions, where it reviewed the proposals of the
Corporate Management and re-aligned strategy and approved the medium
term strategy for the period 2016 to 2018.
Complied
(4) Ensure that the

Chief Executive
6MJLY*,6
/ Managing
Director (MD) and
management team
possess the skills,
experience and
knowledge to
implement the
strategy
A.1.2
The Board Nomination Committee ensures that the Board Members and Key
Management Personnel have the required skills, experience and knowledge
to implement approved strategy.
Complied
241
Governance
RI6UL/DQND&$6UL/DQNDDQGWKH6HFXULWLHVDQG([FKDQJH&RPPLVVLRQRI6UL/DQND6(&&RQWG
CA Sri
Lanka and
SEC Code
Reference
Status
(5) Ensure effective

CEO/MD and senior
management
succession strategy
A.1.2
A succession Strategy has been recommended by the Board Nomination

Committee.
Complied
(6) (a) Ensure

effective systems
to secure integrity
of information and
ensure internal
controls and risk
management
A.1.2
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 Banks Internal Control Over Financial Reporting
is effective. Refer also Board Integrated Risk Management Committee Report
given on pages 289 to 291.
Complied
Principle
A. DIRECTORS
A.1.2
(7) Ensure
compliance with
laws, regulations and
ethical standards
Complied
There is a separate Compliance function reporting directly to the Board
Integrated Risk Management Committee which has responsibility for
compliance. Head of Compliance reports directly to the Board Integrated Risk
Management Committee (BIRMC) and followed by the Board.
A.1.2
The Articles of the Bank require the Directors to take decisions taking into
account the interests of the customers, shareholders, employees and the
community. Additionally there is a Customer Charter, a Board Shareholder
Relations Committee and HR Policy in order to uphold the interests of these
key stakeholders.
Complied
A.1.2
(9) Ensure that the
companys values
and standards are
set with emphasis on
adopting appropriate
accounting policies
and fostering
compliance with
UHUJPHSYLN\SH[PVUZ
Board Audit Committee and Board review accounting policies annually to

ensure that they are in line with the business model of the Bank and evolving
international and local accounting standards and industry best practice.
Complied
-\SSSZ\JOV[OLY A.1.2
Board functions as
are vital, given the
scale, nature and
complexity of the
business concerned
;OL)VHYKPZJVTTP[[LK[VM\SSSPUNP[ZM\UJ[PVUZPUSPUL^P[O[OLSH^
regulations and good governance practices adopted by the Bank.
Complied
(8) Ensure all

stakeholder interests
are considered in
corporate decisions
242
G4-43,44
Principle
CA Sri
Lanka and
SEC Code
Reference
Status
(11) Act in
accordance with
laws relevant to
the organisation
and procedure
for Directors to
obtain independent
professional advice
at company expense
A.1.3
The Board has put in place a framework of policies, procedures and a risk
management framework to ensure compliance with relevant laws, Central
Bank of Sri Lanka (CBSL) guidelines and international best practice with
regard to the operations of the Bank. The Board obtains independent
professional advice as and when necessary in accordance with the Board
approved policy on independent professional advice and these functions are
co-ordinated through the Company Secretary. Independent professional
services were sought on matters during the year in accordance with the
above provision in 2015.
Complied
(12) Access to and

appointment or
removal of Company
Secretary
A.1.4
Complied
All Directors have the opportunity to obtain the advice and services of the
Company Secretary, Mrs A Goonetilleke, who is an Attorney-at-Law which
PZHUHWWYV]LKX\HSPJH[PVU\UKLY[OL*VTWHUPLZ(J[5VVM:OLPZ
responsible for ensuring follow up of Board procedures, compliance with rules
and regulations, directions and statutes, keeping and maintaining minutes
and relevant records of the Bank.
The Articles of the company specify that the appointment and removal of the
Company Secretary should be by resolution involving the whole Board.
(13) Independent
judgement
A.1.5
The Directors of the Bank have no vested interests and take decisions on
matters before them using independent judgement.
Complied
(14) Dedicate
adequate time and
effort to matters of
the Board and the
Company,
A.1.6
Dates of regular Board meetings and Board Sub Committee meetings are
usually scheduled well in advance and the relevant papers are circulated a
week prior to the meeting. There is provision to circulate papers closer to the
meeting on an exceptional basis.
Complied
It is estimated that Non Executive Directors dedicated not less than 80 hours
during the year for the affairs of the Bank and those Directors who are also on
Sub Committees dedicate not less than 175 hours for the affairs of the Bank.
The attendance at meetings for the Board and its Sub Committees are given
in page 238.
(15) Training for
Directors
A.1.7
The Company Secretary in consultation with the Chairman recommends

Complied
Directors to attend training sessions/seminars. During 2015 the following
areas was covered:
State of the economy and future outlook
Additionally, the Board encourages knowledge sharing amongst the Directors.
They also participate in the sessions organised by professional bodies and
Sri Lanka Institute of Directors. The annual self-assessment by Directors also
covers aspects on training to identify training needs.
243
Governance
Principle
CA Sri
Lanka and
SEC Code
Reference
Status
A. DIRECTORS
A.2 DIVISION OF RESPONSIBILITIES BETWEEN CHAIRMAN AND CEO/MD
(16) Conducting
the business of the
)VHYKZLWHYH[LS`"
to the executive
responsibilities of the
management of the
Company
A.2
The positions of the Chairman and the CEO/MD have been separated in line
with best practice in order to maintain a balance of power and authority. The
Chairman is a Non Executive Director whilst the CEO/MD is an Executive
Director.
Complied
The Bank has developed a formal terms of reference for the Chairman which
PUJS\KLZHSSHZWLJ[ZZWLJPLKPU[OL*VKL[OLJVU[PU\PUNSPZ[PUNYLX\PYLTLU[Z
of the CSE and the Banking Act Direction No11 of 2007 on Corporate
Governance for Licensed Commercial Banks in Sri Lanka.
Complied
Financial acumen has been a key attribute of successful careers of the

following Directors who have held senior management positions related to
UHUJLPUV[OLYSLHKPUNUHUJPHSPUZ[P[\[PVUZ!
Mr Ranil Pathirana
Mr Aravinda Perera
Additionally the Chairman, Mr Dhammika Perera has served on the Boards of
HU\TILYVMUHUJPHSPUZ[P[\[PVUZ
Complied
A.3 CHAIRMANS ROLE

(17) Chairmans
role in preserving
good corporate
governance
A.3
(18) Conduct Board

proceedings in a
proper manner
A.4 FINANCIAL ACUMEN
A.4
(19) Availability of
UHUJPHSHJ\TLUHUK
knowledge to offer
guidance on matters
VMUHUJL
Two Directors, including the CEO/MD, have MBAs and two Directors are
Fellow Members of the Chartered Institute of Management Accountants, UK.
244
Principle
CA Sri
Lanka and
SEC Code
Reference
Status
The Board comprises 9 Non Executive Directors including the Chairman. The
2 Executive Directors are the CEO/MD and the GCFO. The Non Executive
Directors are professionals/academics/business leaders, holding senior
WVZP[PVUZPU[OLPYYLZWLJ[P]LLSKZHUK[OLYLMVYLKLLTLK[VILVMHWWYVWYPH[L
calibre. As the majority of the Board comprises Non Executive Directors, their
VWPUPVUZHUK]PL^ZJHYY`ZPNUPJHU[^LPNO[PU[OL)VHYKKLJPZPVUZ
Complied
A.5 BOARD BALANCE

A.5.1 &
(20) Non Executive
+PYLJ[VYZVMZ\MJPLU[ A.5.2
calibre and Number
Executive Directors vs
Non Executive Directors
9
Non - Executive Directors
(21) Independence
of Non Executive
Directors
A.5.3
Executive Directors
6 Non Executive Directors are independent of management and free of any

business or other relationship that could materially interfere with or could
reasonably be perceived to materially interfere with the exercise of their
unfettered and independent judgement.
Complied
Independent Directors vs
Non - Independent Directors
Independent Directors
Non - Independent Directors
245
Governance
Principle
CA Sri
Lanka and
SEC Code
Reference
Status
A. DIRECTORS
A.5 BOARD BALANCE
(22) Annual
declarations of
independence from
Directors
A.5.4
Annual declarations of independence or non-independence are to be

obtained from the Directors.
Not
Complied
(23) Annual
evaluation of
independence
A.5.5
The Board makes an annual evaluation of independence of the Directors

based on the submission of the annual declarations. Based on these, the
following Directors are deemed to be independent:
Ms Dhara Wijayatilake
Mr Ranil Pathirana
There were no Directors deemed Independent where all criteria were not met.
Complied
(24) Senior
A.5.6
Independent Director &
A.5.7
Mr Sanjiva Senanayake has been appointed as Senior Independent Director

in view of the requirements of the Banking Act Direction No 11 of 2007.
Complied
A.5.8
(25) Senior
Independent Director
(SID) meeting with
other Directors
The Directors met Senior Independent Director during the year, though not
formally.
Not
Complied
Chairman meets with Non Executive Directors without the presence of the
Executive Directors, on a need basis. The Non Executive Directors met twice
without the presence of the Executive Directors during the year 2015.
Complied
(26) Chairman to
hold meetings with
Non Executive
Directors, without
Executive Directors
being present
246
A.5.9
Principle
CA Sri
Lanka and
SEC Code
Reference
Status
(27) Recording of
Directors concerns
in Board Minutes
A.5.10
Board minutes are prepared in order to record any concerns of the Board
as a whole or those of individual Directors regarding matters placed for
their approval/guidance/action. These minutes are circulated and formally
approved at the subsequent Board meeting, Additionally, Directors have
access to the past Board papers and minutes in case of need at all times.
Complied
If a Director resigns over an unresolved issue, the Chairman will bring the
issue to the attention of the Board. The Director concerned is also required to
provide a written statement to the Chairman for circulation to the Board.
A.6 SUPPLY OF RELEVANT INFORMATION
(28) Provision of
appropriate and
timely information
A.6.1
The management provides comprehensive information including both

quantitative and qualitative information for the monthly Board Meetings
generally 7 days prior to the Board/Sub Committee meetings. The Directors
also have free 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 Companys
expense and copies of advice obtained in this manner are circulated to other
Directors who request it.
Complied
(29) Chairman to
ensure all Directors
are properly briefed
on issues arising at
Board meetings
A.6.1
All Directors are adequately briefed on matters arising at Board meetings

through comprehensive Board papers. Additionally, the relevant members of
the Management team will make presentations at Board meetings and are on
Z[HUKI`HZM\Y[OLYJSHYPJH[PVUZTHÌLYLX\PYLKI`+PYLJ[VYZ
Complied
Any Director who does not attend a meeting is updated on proceedings prior
to the next meeting through:
Formally documented minutes of meetings
A separate Board paper highlighting the items which need to be
completed and need follow-up action of the previous meetings is
Z\ITP[[LK;OPZPZ[HRLU\WPTTLKPH[LS`HM[LYJVUYTH[PVUVMTPU\[LZ
Archived minutes and Board papers accessible electronically at the
convenience of the Directors.
(30) Board papers
and agenda to be
circulated 7 days
prior to meetings.
A.6.2
As described above, Board papers are generally circulated 7 days before the
meeting. There is provision for circulation of urgent papers within a shorter
[PTLMYHTLHUKHSZVMVYHWWYV]HSVMTH[[LYZI`JPYJ\SH[PVU"OV^L]LYZ\JO
instances are the exception and not the rule.
Complied
247
Governance
G4-43,44
Principle
CA Sri
Lanka and
SEC Code
Reference
Status
A. DIRECTORS
A.7 APPOINTMENTS TO THE BOARD
The Board has established a Board Nomination Committee whose Terms
of Reference comply with the Code and CBSL Direction on Corporate
Governance.
Complied
(31) Formal and

transparent
procedure for new
Appointments
through an
established
Nomination
Committee
A.7.1
(32) Annually assess

Board composition
A.7.2
The Board annually assesses its composition to ascertain whether the

combined knowledge and experience of the Board match the strategic
KLTHUKZMHJPUN[OL*VTWHU`HUKPZZH[PZLK[OH[P[JVTWSPLZ^P[O[OLJYP[LYPH
(33) Disclosure
of information to
shareholders upon
appointment of new
Directors
A.7.3
All new appointments are communicated to the shareholders via the Colombo Complied
:[VJR,_JOHUNL;OLWYVSLZVM[OLJ\YYLU[+PYLJ[VYZHYLNP]LUVUWHNLZ[V
17 in this report.
A.8
As per the Articles of Association, 1/3rd of the Directors should retire at each
Annual General Meeting and be subject to re-election. Such Directors who
YL[PYLHYL[OVZLÔVOLSKVMJLMVY[OLSVUNLZ[[PTLWLYPVKZPUJL[OLLSLJ[PVU
re-appointment. In accordance with this provision, the following Directors
retire and offer themselves for re-election:
Mr Dhammika Perera
Mr Deshal De Mel
A brief resume of Directors standing for re-election is provided in English and
Sinhala to enable shareholders to make an informed decision.
Membership of this important Board Sub Committee is given on page 237

of the Annual Report. Accordingly, new Directors including Executive and
Non Executive Directors are appointed by the Board upon consideration of
recommendations by the Board Nomination Committee.
Complied
A.8 RE-ELECTION
(34) All Directors
should submit
themselves for reelection at regular
intervals
The Board and the Board Nomination Committee are actively engaged in
succession planning for both Executive and Non Executive roles to ensure
that Board composition is periodically renewed and that the Board retains its
effectiveness at all times.
248
Complied
Principle
CA Sri
Lanka and
SEC Code
Reference
Status
(35) Non Executive

Directors are
appointed for
ZWLJPLK[LYTZ
subject to re-election
A.8.1
Non Executive Directors are appointed with approval of the Central Bank of
Sri Lanka (CBSL) and stands for re-election at Annual General Meetings in
terms of Articles of Association.
Complied
(36) All Directors

including Chairman
excluding Executive
Directors to be
subject to re-election
H[YZ[VWWVY[\UP[`
after appointment
and re-election at
least every 3 years
thereafter
A.8.2
Please refer A8 above.
Complied
A.9 APPRAISAL OF BOARD PERFORMANCE

(37) Appraisal of
Board Performance
A.9.1
Complied
The Board annually appraises its own performance to ensure that it is
discharging its responsibilities satisfactorily. This process requires each
+PYLJ[VY[VSSH)VHYK7LYMVYTHUJL,]HS\H[PVU-VYTPUSPUL^P[O[OLWYV]PZPVUZ
of this Section of the Code. The responses are reviewed by the Company
Secretary who compiles a report which is submitted to the Board for
information.
(38) Appraisal
of Board Sub
Committees
A.9.2
The appraisal of the performance of Board Sub Committees have to be reimplemented.
Not
Complied
(39) (a) Disclosure

of the method of
appraisal of the
Board
A.9.3
Please refer A.9.1 above
Complied
Please refer A.9.2 above
Not
Complied
(39) (b) Disclosure

of the method
of appraisal of
the Board Sub
Committee
performance
A.10 DISCLOSURE OF INFORMATION IN RESPECT OF DIRECTORS

A.10.1
(40) Annual Report
[VKPZJSVZLZWLJPLK
information regarding
Directors
0UMVYTH[PVUZWLJPLKPU[OL*VKL^P[OYLNHYK[V+PYLJ[VYZHYLKPZJSVZLK^P[OPU Complied
this Annual Report as follows:
5HTLX\HSPJH[PVUZL_WLY[PZLTH[LYPHSI\ZPULZZPU[LYLZ[ZHUKIYPLM
WYVSLZHYLNP]LUVUWHNLZ[V
Details whether a Director is Executive, Non Executive or Independent,
Non Independent are given on pages 8 to 17.
Related Party Transactions are given on pages 405 to 409.
Membership of Board Sub Committees and attendance at Board
Meetings and Board Sub Committee meetings are given on pages 237
and 238 respectively.
249
Governance
Principle
CA Sri
Lanka and
SEC Code
Reference
Status
A. DIRECTORS
A.11 APPRAISAL OF CHIEF EXECUTIVE OFFICER/MANAGING DIRECTOR
(41) Set reasonable
UHUJPHSHUKUVU
UHUJPHS[HYNL[Z[V
be met by the CEO/
MD
A.11.1
;OL)VHYKKPZJ\ZZLKHUKZL[UHUJPHSHUKUVUUHUJPHS[HYNL[Z[VIL
achieved during the year by the CEO/MD with reference to the short, medium
and long term objectives of the Bank at the beginning of 2015. The targets
for 2016 have also been set at the end of 2015.
Complied
(42) Evaluate
performance of
the CEO/MD with
reference to targets
A.11.2
The Managing Directors performance is evaluated by the Board Human

Resources & Remuneration Committee with reference to targets and goals
achieved by the Bank. This is reported to the Board.
Complied
B. DIRECTORS REMUNERATION
(43) Appointment
of a Remuneration
Committee
B.1.1
Complied
The Board has established a Board Human Resources & Remuneration
Committee to develop a policy and determine remuneration for the Directors,
Management and Executive Staff. No Director is involved in deciding his
own remuneration. The Terms of Reference complies with Schedule C of the
Code, other investor guidelines and requires the Committee to ensure that the
Company adopts a remuneration policy which rewards Executive Directors,
Management and Executive Staff for their contribution to sustainably and
responsibly towards enhancing shareholder value.
Further information regarding the Board Human Resources & Remuneration
Committee is given in the Board Human Resources & Remuneration
Committee Report on pages 285 & 286.
(44) Remuneration
Committee to
comprise exclusively
Non Executive
Directors
B.1.2 &
B.1.3
The Board Human Resources & Remuneration Committee comprises the

following Directors who are all Non Executives Directors except Mr Aravinda
Perera, the Managing Director:
Mr Deepal Sooriyaarachchi (Chairman)
Mr Deshal De Mel
Mr Aravinda Perera
Not
Complied
(45) Remuneration
for Non Executive
Directors
B.1.4
Remuneration of Non Executive Directors is recommended by the Board

Human Resources & Remuneration Committee for approval of the Board in
line with market practice.
Complied
250
G4-51,52
Principle
CA Sri
Lanka and
SEC Code
Reference
Status
(46) Remuneration of
Executive Directors
B.1.5
Remuneration of Executive Directors is determined by the Board Human

Resources & Remuneration Committee which has access to professional
advice from within or outside the company in formulating its proposals which
then are discussed with the Chairman.
Complied
B.2 THE LEVEL AND MAKE UP OF REMUNERATION

(47) Remuneration
for Executive
Directors should
attract, retain and
motivate
B.2.1 &
B.2.2
Remuneration for Executive Directors is designed to attract, retain and

motivate the Executive Directors as determined by the Board Human
Resources & Remuneration Committee. Their remuneration comprises a
_LKZHSHY`JVTWVULU[ÔPJOPUJS\KLZWLYX\PZP[LZHUKHSSV^HUJLZ;OL
Remuneration Committee takes into account market practices and seeks
professional advice when required in order to discharge its responsibilities.
Complied
(48) Positioning
company
remuneration levels
relative to other
companies
B.2.3
The Board Human Resources & Remuneration Committee reviews the Banks
remuneration levels annually in relation to other Banks in the country.
Complied
(49) Performance
related elements of
remuneration for
Executive Directors
B.2.4
There are performance related elements of remuneration for Executive

Directors.
Complied
(50) Share option

schemes
B.2.5
There were no Share Option schemes during 2015.
Not
Applicable
(51) Designing
schemes of
performance
related remuneration
B.2.6
Performance related remuneration is in place for 2015.
Complied
(52) Compensation
commitments in
the event of early
termination
B.2.7
Complied
There are no provisions for compensation for early termination contained in
the Letters of Contract/Appointment. However, the Directors would determine
this on a case by case basis.
(53) Dealing with

early termination
B.2.8
Directors determine this on a case by case basis.
Complied
The Board Human Resources & Remuneration Committee determines the

levels of remuneration for Non Executive Directors taking into account the
time commitment and responsibilities of their role and market practices.
Remuneration for Non Executive Directors does not include share options.
Complied
B.2.9
(54) Levels of
remuneration for Non
Executive
Directors
251
Governance
Principle
CA Sri
Lanka and
SEC Code
Reference
Status
B. DIRECTORS REMUNERATION
B.3 DISCLOSURE OF REMUNERATION
(55) Composition
of Board HR &
Remuneration
Committee,
Remuneration Policy
and disclosure
of aggregate
remuneration paid to
Directors
B.3.1
The composition of the Board Human Resources and Remuneration

Committee and its policy is given on pages 285 & 286.
Complied
The aggregate remuneration to Executive and Non Executive Directors are

given in Note No 49.3.1 to the Financial Statements on page 405.
Names of the Directors of the Board Human Resources & Remuneration
Committee are disclosed on pages 285 & 286 in the Annual Report.
C. RELATIONS WITH SHAREHOLDERS

C.1 CONSTRUCTIVE USE OF THE ANNUAL GENERAL MEETING (AGM) AND CONDUCT OF GENERAL MEETINGS
(56) Constructive use C.1
of the AGM & Other
General Meetings
The Annual General Meeting is the main forum of contact between small
shareholders and the Board. A separate Sub Committee of the Board,
Board Shareholder Relations Committee, has been set up for the purpose
of building up relations with the shareholders and addressing their concerns.
This Committee conducts an open session with the shareholders immediately
after the AGM each year.
Complied
The Annual Report is circulated to all shareholders 15 working days prior to

the AGM and a Sinhala version is published each year to meet the needs of
diverse groups of shareholders. Additionally, the Chairmans and CEO/MDs
messages are translated into Tamil each year.
In line with market practice, the CEO/MD has regular contact with the major
shareholders.
(57) Count of all
proxy votes lodged
C.1.1
All proxy votes lodged together with the votes of shareholders present at the
AGM are considered for each resolution.
Complied
(58) Separate
resolutions for each
substantially
separate issue
C.1.2
A separate resolution is proposed at the AGM for each substantially separate

issue. The adoption of the report and accounts is proposed as a separate
resolution.
Complied
(59) Availability
of Board Sub
Committee
Chairpersons at
AGM
C.1.3
All Board Sub Committee Chairpersons are present at the AGM to answer
any questions raised at the AGM and will respond when requested to do so
by the Chairman.
Complied
252
Principle
CA Sri
Lanka and
SEC Code
Reference
C.1.4
(60) Circulation of
Notice of AGM and
related documents to
shareholders
(61) Summary
of procedures
governing voting
at the AGM
C.1.5
Status
Notice of the AGM and related papers are sent to shareholders at least 15
working days prior to the meeting in accordance with the regulations.
Complied
A summary of the procedures governing voting at the AGM is provided in the

proxy form, which is circulated to shareholders15 working days prior to the
AGM.
Complied
C.2 COMMUNICATION WITH SHAREHOLDERS

(62) Channel to reach C.2.1
all shareholders of
the company
The Board has appointed a Sub Committee on Shareholder Relations tasked

^P[OPKLU[PM`PUNHUKHKKYLZZPUN[OLZOHYLOVSKLYZJVUJLYUZ0[PZ[OLYZ[SPZ[LK
company in Sri Lanka to have such a Committee. This 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 AGMs where shareholders
take an active role in exercising their rights. The Annual Report is translated
into Sinhala and the Chairmans and CEO/MDs messages are translated into
Tamil as well to facilitate greater communication with shareholders.
Complied
The Bank posts on its website (www.sampath.lk) copies of annual reports,

interim reports etc. These are posted on the website as soon as practicable
after they have been released to the Colombo Stock Exchange.
(63) Policy and
methodology for
communication with
shareholders
C.2.2
The Bank provides fair disclosure with emphasis on the integrity, accuracy,
timeliness and relevance of the information provided.
Complied
(64) implementation
of the Policy and
methodology for
communication with
shareholders
C.2.3
Shareholders are consulted on their preference to receive the Annual Report

from the Bank either by means of a Compact Disk or in printed form.
Shareholders may at anytime elect to receive Annual Report from the Bank in
printed form free of charge.
Complied
Interim Reports are published in all three languages (English, Sinhala and
Tamil) in leading news papers within 60 days of the quarter end.
(65) Contact
person in relation to
shareholder matters
C.2.4 &
C.2.6
Shareholders may, at anytime, direct questions and request for publicly

available information at the Directors or management of the Bank. They
may also provide their comments and suggestions to the Directors or
management, addressed to the Company Secretary.
Complied
253
Governance
G4-49
Principle
CA Sri
Lanka and
SEC Code
Reference
Status
C. RELATIONS WITH SHAREHOLDERS

C.2 COMMUNICATION WITH SHAREHOLDERS
(66) Process to make C.2.5
all Directors aware
of major issues
and concerns of
shareholders
(67) Process
responding to
shareholder matters
C.2.7
The Company Secretary maintains a record of all correspondence received.

She directs as soon as practicable such correspondence to the Board,
PUKP]PK\HS+PYLJ[VYZVY[OLYLSL]HU[VMJLYZHZHWWSPJHISL
Complied
Please refer C.2.5 above.
Complied
C.3 MAJOR AND MATERIAL TRANSACTIONS

(68) Disclosure of
major transactions
C.3.1
During the year 2015, the Bank did not engage in or commit any Major
Transaction which materially affected the Banks net asset base.
Complied
D. ACCOUNTABILITY AND AUDIT

(69) Present a
balanced and
understandable
assessment of the
Companys
UHUJPHSWVZP[PVU
performance and
prospects
D.1
The Banks position and prospects have been discussed in detail in the
following sections of this Annual Report.
Chairmans Message given on pages 44 & 45.
Managing Directors Review given on pages 46 to 51
Operational Reviews given on pages 63 to 142.
Complied
(70) Interim reports,

price-sensitive public
reports, regulatory
reports and
statutory information
requirements
D.1.1
Interim reports were circulated within 45 days of each quarter end which
includes information to assist shareholders gain an understanding of the state
of affairs of the Bank.
Complied
Price sensitive information was disclosed in a comprehensive but concise

manner to the Colombo Stock Exchange on a timely basis.
Reports required by the regulators including Central Bank, Inland Revenue,
9LNPZ[YHYVM*VTWHUPLZHUK*VSVTIV:[VJR,_JOHUNL^LYLHSSSLKPUH
timely manner in compliance with relevant requirements and these provided
Z\MJPLU[PUMVYTH[PVUMVY[OL\ZLY[VVI[HPUHIHSHUJLKHZZLZZTLU[VM[OL
Bank`s operations.
(71) Declaration in
Directors Report
254
D.1.2
The Annual Report of the Board of Directors on the Affairs of the Company on Complied
pages 303 to 312 contains the declarations as required by the Code.
Principle
CA Sri
Lanka and
SEC Code
Reference
Status
(72) Responsibilities
of the Board for
the preparation
and presentation of
UHUJPHS:[H[LTLU[Z
and statement by
the Auditors about
their reporting
responsibilities
D.1.3
The Statement of Directors Responsibility for Financial Reporting and Report

of the Auditors which include a statement about their reporting responsibilities
are provided on pages 317 & 318 and on page 319 respectively.
Complied
(73) Include a
Management
Discussion &
Analysis
D.1.4
The Operational Reviews are set out on pages 63 to 142 and covers the
PUMVYTH[PVUZWLJPLKPU[OL*VKLHZNP]LUILSV^
Industry structure and developments
Opportunities and threats
Risks and concerns
Internal controls systems and their adequacy
Social and environmental protection activities carried out by the
Company
Financial performance
Material developments in human resource/industrial relations and
Prospects for the future.
Complied
(74) Declaration of
the Directors that the
business is a going
concern
D.1.5
This information is provided in the Annual Report of the Board of Directors on

the Affairs of the Company given on pages 303 to 312.
Complied
(75) Notify
shareholders in case
net assets of the
company fall below
50%
D.1.6
This situation has not arisen.
Not
Applicable
(76) Related Party

Transactions
D.1.7
There is a documented process approved by the Board, identifying related

parties, type of Related Party Transactions and favourable treatment granted
[VZHPKWHY[PLZPUVYKLYMVY)VHYKTLTILYZHUK247Z[VH]VPKHU`JVUPJ[
of interest in this regard. There is an effective and comprehensive system
of internal control for identifying, recording and disclosure of related party
transactions.
Complied
255
Governance
Principle
CA Sri
Lanka and
SEC Code
Reference
Status
A procedure is in place for granting accommodation to Directors or to

close relations of Directors. Such accommodation requires approval at a
meeting of the Board of Directors, by not less than 2/3rds of the number
of Directors other than the Director concerned voting in favour of granting
such accommodation. The terms and conditions of the facility include a
proviso that it will be secured by such security as may from time to time be
determined by the Monetary Board as well.
Complied
D. ACCOUNTABILITY AND AUDIT

(76) Related Party
Transactions
(Contd.)
D.1.7
Directors and KMPs submit declarations declaring their transactions with the
Bank on a quarterly and on annual basis.
(SS9LSH[LK7HY[`;YHUZHJ[PVUZHZKLULKPU:YP3HURH(JJV\U[PUN:[HUKHYKZ
- LKAS 24 (Related Party Transactions) are disclosed in Note No 49 to the
Financial Statements on pages 405 to 409.
D.2 INTERNAL CONTROL
(77) Maintain a
sound system of
internal control
to safeguard
shareholders
investments and the
Companys assets
D.2.1
The Board is responsible for formulating and implementing appropriate

and adequate internal control systems. The Board Audit Committee has
responsibility to the Board to ensure that the system of Internal Controls is
Z\MJPLU[HUKLMMLJ[P]L9L]PL^ZVM[OLHKLX\HJ`HUKLMMLJ[P]LULZZVM[OLZL
internal control systems are carried out by the Internal Audit Department who
report on a regular basis to the Board Audit Committee.
Complied
(78) Review need

for Internal Audit
Function
D.2.2
Bank has an Internal Audit function.
Complied
The Bank has established Board Audit Committee in keeping with good
governance since 1997. The principal responsibility of the Board Audit
*VTTP[[LLPZ[VOH]LV]LYZPNO[V]LYUHUJPHSYLWVY[PUNPU[LYUHSJVU[YVSZHUK
monitoring auditor independence. Its duties include gaining assurance on
[OLJVU[YVSV]LYUHUJPHSWYVJLZZLZHUK[OLPU[LNYP[`VM[OL)HURZUHUJPHS
reports, monitoring the performance, objectivity and independence of the
External Auditor and reviewing work of the Internal Auditor. The Board Audit
Committee Report is given on pages 282 to 284 of the Annual Report.
Complied
D.3 AUDIT COMMITTEE

(79) Establish
arrangements
for selection and
application of
accounting policies,
UHUJPHSYLWVY[PUN
and internal control
principles
256
D.3
G4-57
Principle
CA Sri
Lanka and
SEC Code
Reference
Status
(80) Composition
and Terms of
Reference for Board
Audit Committee
D.3.1
The Board Audit Committee consists of Non Executive Directors and chaired
by a Non Executive Independent Director. Members are selected to provide a
IYVHKZL[VMUHUJPHSJVTTLYJPHSHUKV[OLYYLSL]HU[L_WLYPLUJL[VTLL[[OL
Committees objectives. CEO/MD, GCFO, DGM -Finance, Head of Internal
Audit, Senior Manager Systems Audit and representatives of the External
Auditors are invited to attend the meetings.
Complied
(81) Review of
External Audit
function and
relationship with
External Auditors
D.3.2
Complied
The Committee has a key oversight role in relation to the External Auditor
Ernst & Young, whose primary relationship is with the Committee. The
Banks Auditor Independence Policy ensures that the independence and
objectivity of the Auditor is not impaired. The Committee has responsibility for
recommending to the Board the appointment/re-appointment of the External
Auditors and reviewing the nature, scope and results of the annual External
Audit. The audit fee is determined by the Board Audit Committee who also
assesses the effectiveness and the independence of the External Auditors.
(82) Terms of
Reference
D.3.3
The Terms of Reference for the Board Audit Committee complies with the
Code of Best Practice on Corporate Governance issued by the ICASL and
SEC and the Code of Best Practice on Board Audit Committees issued by
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 Exchange Regulations. These
documents are available with the Company Secretary.
Complied
(83) Disclosures
regarding Board
Audit Committee
D.3.4
The Annual Report of the Board of Directors on the Affairs of the Company
given on pages 303 to 312 provides the following disclosures:
The composition of the Board Audit Committee
A statement regarding the independence of the Auditors
Complied
D.4 CODE OF BUSINESS CONDUCT AND ETHICS

(84) Code of
business conduct
and ethics for
Directors and staff
D.4.1
Codes of Conduct and Ethics are in place as per the Employee Hand Book.
Complied
D.5 CORPORATE GOVERNANCE DISCLOSURES

(85) Corporate
Governance Report
D.5.1
The Corporate Governance Report is given on pages 228 to 281. This report
provides information regarding Corporate Governance practices in the Bank
which are in compliance with:
The Code of Best Practice on Corporate Governance issued jointly by
the Institute of Chartered Accountants of Sri Lanka and the Securities &
Exchange Commission of Sri Lanka
The Banking Act Direction No 11 of 2007 on Corporate Governance for
Licensed Commercial Banks issued by CBSL
Complied
257
Governance
Principle
CA Sri
Lanka and
SEC Code
Reference
Status
E. SHAREHOLDERS INSTITUTIONAL INVESTORS

E.1 SHAREHOLDER VOTING
(86) Encourage
voting at AGM
E.1
The Bank has a history of active shareholder involvement at general meetings

and all shareholders are regularly encouraged to state their intentions to vote
and translate it into practice.
Complied
(87) Regular
structured dialogues
with institutional
investors
E.1.1
The CEO/MD has structured meetings with institutional shareholders. Board

members are briefed about the matters discussed at such meetings.
Complied
E.2 EVALUATION OF GOVERNANCE DISCLOSURES

(88) Encourage
institutional investors
to give due weight to
relevant governance
arrangements
E.2
Institutional investors are kept apprised of the Banks governance practices

through the Annual Report and any new initiatives are highlighted at
regular meetings to ensure that due weightage is given to good Corporate
Governance.
Complied
F. SHAREHOLDER RELATIONS INDIVIDUAL SHAREHOLDERS

F.1 INVESTING / DIVESTING DECISION
(89) Individual
shareholders are
encouraged to do
their own analysis or
seek independent
advice
F.1
Complied
;OL(UU\HS9LWVY[JVU[HPUZZ\MJPLU[PUMVYTH[PVUMVYHWV[LU[PHSPU]LZ[VY[V
carry out their own analysis. The Annual Report is published in both Sinhala
and English to facilitate understanding by more investors. This, together with
[OLPU[LYPTUHUJPHSZ[H[LTLU[ZWYV]PKLKLHJOX\HY[LYWYV]PKLZ\MJPLU[
information to enable retail investors make informed judgements regarding the
performance of the Bank.
Additionally, there is a separate part of the company website dedicated to
Investor Relations which provides this information online to all investors.
Shareholders have the liberty to contact, the Company Secretary for further
information.
F.2 SHAREHOLDER VOTING

(90) Encourage
shareholders to
participate and vote
at the AGM
258
F.2
It is a tradition at Sampath Bank to encourage retail investors to participate

and vote at the AGM. Additionally, they are encouraged to participate in
Banks affairs through submitting proposals at the Shareholder Relations
forums.
Complied
Principle
CA Sri
Lanka and
SEC Code
Reference
Status
G. SUSTAINABILITY REPORTING
G.1 PRINCIPLES OF SUSTAINABILITY
Sustainability is a business approach that creates long term stakeholder value by embracing opportunities and managing risks
derived from economic, environmental and social developments and their potential implications and impacts on the business
activities of the entity.
Sustainability reporting is the practice of recognising, measuring, disclosing and being accountable to internal and external
stakeholders for organisational performance towards the goals of sustainable development in the context of the overall business
activities and strategy of the entity and be directed to the target stakeholders, usually shareholders, employees, consumers,
society and government.
(91) Economic
Sustainability
G.1.1
Please refer pages 63 to 68 and 320 to 452.
Complied
(92) The Environment G.1.2
Please refer pages 191 to 200.
Complied
(93) Labour Practice
G.1.3
Complied
(94) Society
G.1.4
Complied
(95) Product
& Service
Responsibility
G.1.5
Complied
(96) Stakeholder
PKLU[PJH[PVU
engagement
& effective
communication
G.1.6
Please refer pages 57 to 58 and 145 to 190.
Complied
(97) Sustainable
reporting and
disclosure
G.1.7
Please refer GRI Index from pages 468 to 477.
Complied
259
Governance
7KH%DQNLQJ$FW'LUHFWLRQ1RRIDQG6XEVHTXHQW$PHQGPHQWVWKHUHWRRQ&RUSRUDWH*RYHUQDQFHIRU
/LFHQVHG&RPPHUFLDO%DQNVLQ6UL/DQND,VVXHGE\WKH&HQWUDO%DQN
Principle
CBSL
Direction
Reference
Compliance and Implementation
Status
3(1) Responsibilities of the Board

(1) Strategic objectives and
corporate values
3(1)(i)(a)
The Banks strategic objectives and corporate values are determined Complied
by the Board and are given on pages 52 & 53. These are
JVTT\UPJH[LK[VHSSSL]LSZVMZ[HMM[OYV\NOYLN\SHYIYPLUNZLZZPVUZ
and reinforced by the Corporate Management Team. Additionally the
values are included in the Employee Code of Conduct (Blue Book)
which is also available on the intranet.
(2) Overall Business Strategy

including Risk Policy and
Management
3(1)(i)(b)
The Bank strategy is set by the Board in consultation with the

Corporate Management and the Strategic Plan for the period 2015
-2017 has been approved by the Board. The risk appetite, policy,
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 regularly at Board Meetings.
Complied
(3) Risk Management
3(1)(i)(c)
The Board has appointed a Board Integrated Risk Management

*VTTP[[LL[HZRLK^P[OHWWYV]PUN[OL)HURZ9PZR7VSPJ`KLUPUN
the risk appetite, identifying principal risks, setting governance
structures and implementing systems to measure, monitor and
manage the principal risks. The following reports provide further
insights in this regard.
Risk Management Report on pages 202 to 227.
Board Integrated Risk Management Committee Report on
pages 289 to 291.
A mechanism / process to identify and mitigate the risks arising out
of new strategies to be in place at the Board level.
Not
Complied
260
G4-49
Principle
CBSL
Direction
Reference
Status
(4) Communication with all

stakeholders
3(1)(i)(d)
There is a Board approved communication policy with all

stakeholders, including depositors, creditors, shareholders and
borrowers in place.
Complied
The Board has approved and implemented the following

communication policies:
6KDUHKROGHUVThe Board has appointed a Sub Committee
on Shareholder Relations tasked with identifying and
HKKYLZZPUN[OLZOHYLOVSKLYZJVUJLYUZ0[PZ[OLYZ[SPZ[LK
company in Sri Lanka to have such a Committee. This
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 AGMs where shareholders
take an active role in exercising their rights. The Annual Report
is translated in to Sinhala and the Chairmans and CEO/MDs
messages are translated into Tamil as well to facilitate greater
communication with shareholders.
&XVWRPHUVCustomers include depositors, creditors and
borrowers. The Bank has a Customer Complaint Handling
Policy. The Customer Complaint handling procedure which
has been printed in all three languages and disseminated
to all customer contact points of the Bank. This document
outlines the complaints handling Policy of the Bank, provides
contact numbers of the Bank for this purpose and also of the
Financial Ombudsman. There is a 24 hour trilingual customer
hotline set up for this purpose and reports are reviewed by the
Board Integrated Risk Management Committee. Additionally,
a customer satisfaction survey is carried out by External
consultants to evaluate service levels provided by the Bank.
6WDIIStaff members are given access to the management to
voice their concerns.
(5) (a) Internal Control System
3(1)(i)(e)
The Board is tasked with reviewing the adequacy and the integrity
of the Banks internal control systems and 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 Banks Internal Control Over Financial Reporting
is effective.
Complied
261
Governance
/LFHQVHG&RPPHUFLDO%DQNVLQ6UL/DQND,VVXHGE\WKH&HQWUDO%DQN&RQWG
G4-40
Principle
CBSL
Direction
Reference
Status

(5) (b) Management
Information Systems
(Contd.)
3(1)(i)(e)
The Bank will have to establish a valid process to review the

HKLX\HJ`HUKHJJ\YHJ`VMHSSUHUJPHSHUKUVUUHUJPHSPUMVYTH[PVU
Not
Complied
(6) Key Management

Personnel
3(1)(i)(f)
;OL)VHYKOHZPKLU[PLKTLTILYZVM[OL*VYWVYH[L4HUHNLTLU[
.YV\W9PZR6MJLY/LHKVM;YLHZ\Y`HUK/LHKVM*VTWSPHUJL
HZ2L`4HUHNLTLU[7LYZVUULSHZ6MJLYZ7LYMVYTPUN,_LJ\[P]L
Functions of Licensed Commercial Banks (LCB) as required by
CBSL Guideline dated 02 December 2015.
Complied
All appointments of designated Key Management Personnel are

recommended by the Board Nomination Committee and approved
by the Board.
+LULHYLHZVMH\[OVYP[`
and Key Responsibilities
for Directors and Key
Management Personnel
3(1)(i)(g)
(YLHZVMH\[OVYP[`HUKRL`YLZWVUZPIPSP[PLZOH]LILLUKLULKMVY[OL
Directors and Key Management Personnel.
Complied
(8) Oversight of affairs of the

Bank by Key Management
Personnel
3(1)(i)(h)
Key Management Personnel make regular presentations to the

Board on matters under their purview and are also called in by the
Board to explain matters relating to their areas.
Complied
Selection, nomination and election of Directors are made by the

)VHYK5VTPUH[PVU*VTTP[[LLIHZLKVU[OLPYLSKVML_WLY[PZL
Directors interests are disclosed to the Board at the start of every
meeting. A Director who has a particular interest abstains from
voting in such a situation and he/she is not counted in the quorum.
Complied
3(1)(i)(i)
(9) Assess effectiveness of
own Governance practices
including selection and
nomination of Directors and
247Z4HUHNLTLU[VMJVUPJ[
of interest and determination
of weaknesses
262
;OL)VHYKHWWYHPZLZP[ZVÛWLYMVYTHUJLI`SSPUN[OL)VHYK
,]HS\H[PVU-VYTÔPJOPZSSLKI`LHJO+PYLJ[VYPUYLSH[PVU[V
business strategy and contributions of Board members based on
[OLPYLSKVML_WLY[PZL;OLYLZWVUZLZHYLJVSSH[LKI`[OL*VTWHU`
Secretary and submitted to the Board Nomination Committee for
their review. Matters of concern are brought to the attention of the
Board by the same Committee.
Principle
CBSL
Direction
Reference
Status
(10) Succession plan for Key

3(1)(i)(j)
The structure of the Bank which was recommended by the Board

Nominations Committee has been approved by the Board in
principle.
Not
Complied
Succession plan is being implemented based on the said structure.

(11) Regular meetings with
Key Management Personnel
3(1)(i)(k)
Complied
Key Management Personnel regularly present or are called in for
discussions at the meetings of the Board and its Sub Committees
on policy and other matters relating to their areas. Progress towards
corporate objectives is a regular agenda item for the Board and the
Key Management Personnel are regularly involved in the Board level
discussions on the same.
(12) Regulatory environment

and maintaining an effective
relationship with regulator
3(1)(i)(l)
Directors are briefed about developments in the regulatory

environment at Board Meetings to ensure that their knowledge
is updated regularly to facilitate effective discharge of their
responsibilities.
Complied
Compliance Reports submitted to CBSL which includes all returns

to regulators are presented to the Board quarterly and monitored
closely by the Board.
The CEO/MD attended all CEO/MD forums on Governance
organised by CBSL and briefed the Board.
(13) Hiring External Auditors
3(1)(i)(m)
The Board Audit Committee carries out the necessary due

diligence regarding the hiring of the External Auditor and makes
recommendations to the Board. The appointment of the External
auditor is made at the Annual General Meeting. Oversight of the
External Auditor is carried out by the Board Audit Committee and
the Board is briefed of any concerns in this regard if a necessity
arises.
Complied
(14) Appointment of Chairman

HUK*,6HUKKLUPUNHUK
approving their functions and
responsibilities
(3)(1)(ii)
The Board has appointed the Chairman and the Chief Executive
6MJLY4HUHNPUN+PYLJ[VYHUKHSZVHWWYV]LK[OLPYM\UJ[PVUZHUK
responsibilities maintaining the balance of power between the two
roles.
Complied
(15) Regular Board Meetings
(3)(1)(iii)
Regular Board Meetings are held and special meetings are

scheduled as and when the need arises. The Board met 19 times
during 2015. We have minimised obtaining approval via circular
resolutions and it is done only on an exceptional basis and such
YLZVS\[PVUZHYLYH[PLKI`[OL)VHYKH[[OLUL_[TLL[PUN
Complied
263
Governance
Principle
CBSL
Direction
Reference
Status
Board approved procedure is in place to enable all Directors to

include matters and proposals in the agenda.
Complied

(16) Arrangements for
Directors to include proposals
in the agenda
(3)(1)(iv)
Monthly meetings are scheduled and informed to the Board at the

beginning of each calendar year to enable 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.
(17) Notice of Meetings
(3)(1)(v)
Notice of Meetings, agenda for the Board Meetings are circulated

to the Directors 7 days prior to the meeting giving Directors time to
attend and submit any urgent proposals.
Complied
Additionally Notice, Agenda and all related Board papers are loaded
through a secure line to the ipad for Directors to access.
(18) Directors Attendance
(3)(1)(vi)
Complied
The Directors are apprised of their attendance in accordance
with the Articles of Association the Company and the Corporate
Governance Code. Details of the Directors attendance is set out on
page 238.
One Director was absent for three consecutive meetings during the
year and ceased to be a Director with effect from 12th November
2015. All Directors have attended at least 2/3rds of the meetings
during the year.
(19) Company Secretary
264
(3)(1)(vii)
Consequent to the retirement of the Group Company Secretary

the Board has appointed the Company Secretary of the Bank,
who is an Attorney-at-Law of the Supreme Court of Sri Lanka, with
effect from 1st October 2015 as successor to the Group Company
:LJYL[HY`:OLZH[PZLZ[OLWYV]PZPVUZVMZLJ[PVUVM[OL)HURPUN
Act No 30 of 1988, whose primary responsibilities shall be to handle
the secretarial services to the Board and Shareholder meetings
HUKJHYY`V\[V[OLYM\UJ[PVUZZWLJPLKPU[OLZ[H[\[LZHUKV[OLY
regulations.
Complied
G4-41
Status
(20) Directors access to advice (3)(1)(viii)

and services of Company
Secretary
All members of the Board have opportunity to obtain advice and

services of the Company Secretary who is an Attorney-at-Law and
who is responsible to the Board for follow up of Board Procedures,
Compliance with Rules and Regulations, Directions and Statutes
and keeping and maintaining Minutes and relevant records of the
Bank.
Complied
(21) Maintenance of Board

Minutes
Company Secretary maintains the minutes of the Board Meetings

and circulates same to all Board Members. The minutes are
approved at the subsequent Board Meeting. Additionally, the
Directors have access to the past Board papers and Minutes
through a secure electronic link.
Complied
The detailed Minutes of the meetings include:

A summary of data and information used by the Board in its
KLSPILYH[PVUZ"
;OLTH[[LYZJVUZPKLYLKI`[OL)VHYK"
;OLMHJ[UKPUNKPZJ\ZZPVUZHUK[OLPZZ\LZVMJVU[LU[PVUVY
dissent
;OL[LZ[PTVUPLZHUKJVUYTH[PVUZVMYLSL]HU[L_LJ\[P]LZ^P[O
regard to the Boards strategies and policies and adherence to
YLSL]HU[SH^ZHUKYLN\SH[PVUZ"
Matters regarding the risks to which the Bank is exposed
and an overview of the risk management measures including
YLWVY[ZVM[OL)VHYK0U[LNYH[LK9PZR4HUHNLTLU[*VTTP[[LL"
and
The decisions and Board resolutions including reports of all
Board Sub Committees.
Complied
Bank has adopted a Board approved Policy for Directors Access

to Independent Professional Advice and the Board resorts to such
advice when deemed necessary.
Complied
Principle
CBSL
Direction
Reference
(3)(1)(ix)
4PU\[LZ[VILVMZ\MJPLU[ (3)(1)(x)
detail and serve as a reference
for regulators and supervisory
authorities
(23) Directors ability to seek

independent professional
advice
(3)(1)(xi)
The Board Sub Committees and various professionals in

Corporate and Senior Management advice the Board on various
matters relevant to them. In addition, Directors are able to obtain
independent professional advice, as and when necessary, in
discharging their responsibilities. These functions are co-ordinated
by the Company Secretary.
265
Governance
Principle
CBSL
Direction
Reference
Status
+LHSPUN^P[O*VUPJ[ZVM
Interest
(3)(1)(xii)
The Directors are conscious of their obligation to deal with situations

ÔLYL[OLYLPZHJVUPJ[VMPU[LYLZ[PUHJJVYKHUJL^P[O[OL(Y[PJSLZ
of Association of the Bank and the Banking Act Direction No 11
of 2007. The Bank maintains a register of Directors and Key
Management Personnel Interests which is regularly updated and
includes interests of the spouse, children under 18 years of age and
their business concerns. Directors abstain from participating in the
discussions, voicing their opinion or approving in situations where
[OLYLPZHJVUPJ[VMPU[LYLZ[(KKP[PVUHSSÒLZOLPZUV[JV\U[LKPU
the quorum in such instances.
Complied
(25) Schedule of matters

reserved for Board decision
(3)(1)(xiii)
Complied
;OL)VHYKOHZHZJOLK\SLVMTH[[LYZZWLJPJHSS`YLZLY]LKMVYP[Z
decision to ensure that the direction and control of the Bank is within
its authority in line with regulatory codes, guidelines and international
best practice.
(26) Inform Central Bank if

there are solvency issues
(3)(1)(xiv)
Complied
The Board is aware of the need to inform the Director of Banking
Supervision prior to taking any decision or action if the Bank is about
to become insolvent or about to suspend payments to its depositors
and other creditors and such a situation has not arisen during the
year 2015.

(27) Compliance with Capital
Adequacy
(3)(1)(xv)
The Board monitors capital adequacy and other prudential

TLHZ\YLZ]PaH]PaYLN\SH[VY`YLX\PYLTLU[[OL)HURZKLULKYPZR
appetite and industry benchmarks on a quarterly basis. The Bank is
in compliance with the minimum capital requirements.
Complied
(28) Publish Corporate

Governance Report in Annual
Report
(3)(1)(xvi)
The Board publishes the Corporate Governance Report in the

Banks Annual Report. This report is given on pages 228 to 281.
Complied
(29) Self-assessment of
Directors
(3)(1)(xvii)
The Board has adopted a scheme of self-assessment to be

undertaken by each Director annually and records of these
assessments are maintained with the Company Secretary. The
Chairman discusses these with the Directors at Board level.
Complied
266
G4-40
CBSL
Direction
Reference
Status
(30) Number of Directors
3(2)(i)
As per CBSL Governance direction, the number of Directors should

not be less than 07 or more than 13. The Banks Board comprised
11 Directors as at 31st December 2015.
Complied
(31) Period of service of a

Director
3(2)(ii)
The period of services of a Director excluding the Managing Director

and Executive Director is limited to 9 years as per the Direction
on Corporate Governance. There are no Directors whose tenure
of service has exceeded 09 years on the Board. Details of their
tenures of service are given on pages 8 to 17.
Complied
(32) Board Balance
3(2)(iii)
There are 2 Executive Directors and 9 Non Executive Directors

which is well within the requirement to limit the number of Executive
Directors to 1/3rd of the total.
Complied
(33) Independent Non

Executive Directors
3(2)(iv)
The Board has six Independent Non Executive Directors which

comply with the requirement.
Complied
(34) Alternate Directors
3(2)(v)
There were no alternate Directors as at 31st December 2015.
Complied
(35) Criteria for Non Executive

Directors
3(2)(vi)
Non Executive Directors are persons with credible track records

and have necessary skills and experience to bring an independent
judgment to bear on issues of strategy, performance and resources.
;OLWYVSLZVM[OL5VU,_LJ\[P]L+PYLJ[VYZHYLKL[HPSLKVUWHNLZ
to 17.
Not
Complied
Principle
3(2) The Boards Composition
The Bank has not documented Board approved process in place for
appointing Independent Directors.
Directors nominate names of eminent professionals or academics
from various disciplines to the Board Nomination Committee who
WLY\ZL[OLWYVSLZHUKYLJVTTLUKZ\P[HISLJHUKPKH[LZ[V[OL
Board.
(36) Quorum for the Board
meeting is more than 50% of
Directors and more than half
the quorum to comprise Non
Executive Directors
3(2)(vii)
This requirement is strictly observed and it is noteworthy that the

majority are Non Executive Directors.
Complied
267
Governance
Principle
CBSL
Direction
Reference
Status
(37) Identify Independent

Non Executive Directors in
communications disclose
categories of Directors in
Annual Report
3(2)(viii)
;OL0UKLWLUKLU[5VU,_LJ\[P]L+PYLJ[VYZHYLL_WYLZZS`PKLU[PLK
as such in all corporate communications that disclose the names of
Directors of the Bank. The composition of the Board, by category of
Directors, including the names of the Chairman, Executive Directors,
Non Executive Directors and Independent Non Executive Directors
are given on page 240 of the Corporate Governance Report.
Complied
(38) Succession planning and

appointments to the Board
3(2)(ix)
Complied
The Board has established a Board Nomination Committee whose
Terms of Reference comply with the Code of Best Practice on
Corporate Governance. Accordingly, new Directors including the
CEO/MD and GCFO are appointed by the Board upon consideration
of recommendations by the Board Nomination Committee.
(39) Re-election of Directors

SSPUNJHZ\HS]HJHUJPLZ
3(2)(x)
Directors appointed to the Board since the AGM will stand for
LSLJ[PVUH[[OLYZ[(.4PUHJJVYKHUJL^P[O[OLWYV]PZPVUZPU[OL
Articles of Association. This situation has not arisen during the year.
Complied
(40) Communication of
reasons for removal or
resignation of Director
3(2)(xi)
Resignations of Directors and the reasons are informed to the

regulatory authorities and shareholders as per CSE requirements
[VNL[OLY^P[OHZ[H[LTLU[JVUYTPUNÔL[OLYVYUV[[OLYLHYLHU`
matters that need to be brought to the attention of shareholders.
Complied
(41) Prohibition of Directors

or Employees of a bank
becoming a Director at
another bank
3(2)(xii)
The Board and the Board Nomination Committee take into

account this requirement in their deliberations when considering
appointments of Directors. The Employee Code of Conduct (Blue
Book) prohibits employees to be elected/nominated as a director of
another bank.
Complied
3(3) Criteria to Assess Fitness and Propriety of Directors

(42) Age of Director should not 3(3)(i)
exceed 70
(43) Directors should not be
Directors of more than 20
companies
268
3(3)(ii)
There are no Directors who are over 70 years of age.
Complied
5VULVM[OL+PYLJ[VYZOVSKVMJLHZHKPYLJ[VYVMTVYL[OHU
companies.
Complied
Principle
CBSL
Direction
Reference
Status
3(4) Management Functions Delegated by the Board

(44) Understand and study
delegation arrangements
3(4)(i)
(45) Extent of delegation

should not hinder Board ability
to discharge its functions
3(4)(ii)
The Board periodically reviews and approves the delegation

arrangements in place and ensures that the extent of delegation
addresses the needs of the Bank whilst enabling the Board to
discharge their functions effectively.
Complied
3(4)(iii)
(46) Review delegation
arrangements periodically to
ensure relevance to operations
of the Bank
;OL*OHPYTHUHUK*OPLM,_LJ\[P]L6MJLY4HUHNPUN+PYLJ[VY
(47) Separation of roles
3(5)(i)
The roles of the Chairman and CEO/MD are separate.
Complied
(48) Non Executive Chairman

and appointment of a Senior
3(5)(ii)
The Chairman is a Non Executive Director but not an Independent

Director as he holds more than 1% of the share capital indirectly.
The Board has appointed Mr Sanjiva Senanayake as Senior
Independent Director to ensure the independent element which has
been disclosed in the Annual Report.
Complied
(49) Disclosure of identity of

Chairman and CEO/MD and
any relationships with the
Board members
3(5)(iii)
The identity of the Chairman and CEO/MD are disclosed in the

Annual Report on pages 8 to 17 and there are many references to
these roles throughout.
Complied
;OLYLPZUVTH[LYPHSUHUJPHSI\ZPULZZVYMHTPS`YLSH[PVUZOPWZ
between the Chairman, CEO/MD and other members of the Board
other than those disclosed on pages 8 to 17 and in Note No 49 to
the Financial Statements given on pages 405 to 409 as per annual
declarations and the register of Directors Interests which is updated
regularly.
(50) Chairman to:
(a) Provide leadership to the
)VHYK"
(b) Ensure that the Board
works effectively
and discharges its
YLZWVUZPIPSP[PLZ"
(c) Ensure that all key and
appropriate issues are
discussed by the Board
in a timely manner.
3(5)(iv)
The Board approved the key responsibilities of the Chairman and

[OPZKVJ\TLU[PUJS\KLZ[OLTH[[LYZPKLU[PLKPUYLSL]HU[N\PKLSPULZ
and codes. Self-evaluation process ensures that Chairman provides
leadership to the Board. The Board works effectively and discharges
its responsibilities and all key and appropriate issues are discussed
by the Board in a timely manner.
Complied
(51) Responsibility for agenda

lies with Chairman but may
be delegated to the Company
Secretary
3(5)(v)
The Company Secretary draws up the agenda for the meetings in

consultation with the Chairman.
Complied
269
Governance
G4-58
Principle
CBSL
Direction
Reference
Status
(52) Ensure that Directors are

properly briefed and provided
adequate information
3(5)(vi)
The Chairman ensures that the Board is adequately briefed and

informed regarding the matters arising at Board. The following
procedures are in place to ensure this:
Agenda and Board papers are circulated 7 days prior to the
Board Meetings.
Relevant members of the Management team are available for
L_WSHUH[PVUZHUKJSHYPJH[PVUZPMYLX\PYLK
Management information is provided in agreed formats on a
regular basis to enable Directors to assess the performance
and stability of the Bank.
Complied
(53) Encourage active

participation by all Directors
and lead in acting in the
interests of the Bank.
3(5)(vii)
Complied
The Board has a self-evaluation process that encourages all
Directors to make a full and active contribution. This is evident by
the self-evaluation forms submitted by each Director at the year end.
(54) Encourage participation

of Non Executive Directors
and relationships between
Non Executive and Executive
Directors
3(5)(viii)
9 of the 11 members of the Board are Non Executive Directors

which creates a conducive environment for active participation by
the Non Executive Directors. All Non Executive Directors participate
in Sub Committees of the Board providing further opportunity
for active participation. The Bank has also appointed a Senior
Independent Directors which supports the participation of the Non
Executive Directors.
Complied
(55) Refrain from direct

supervision of Key
Management Personnel and
executive duties
3(5)(ix)
The Chairman does not get involved in the supervision of Key

Management Personnel or any other executive duties.
Complied
(56) Ensure effective

communication with
shareholders
3(5)(x)
The Bank historically has active shareholder participation at the

Annual General Meeting and at the Shareholder Relations Meeting
which is held immediately after the AGM where shareholder issues
are discussed. A Board Sub Committee has been appointed to
ensure that there is effective communication with shareholders.
Complied
(57) CEO/MD functions as the

apex executive in charge of
the day to day operations
3(5)(xi)
The day to day operations of the Bank has been delegated to the
CEO/MD.
Complied
270
Principle
CBSL
Direction
Reference
Status
Ten Sub Committees have been established by the Board with

written terms of reference for each. The Company Secretary serves
as the Secretary for all Sub Committees and maintains minutes and
records with oversight by the respective Chairpersons. The reports
of the Sub Committees are included in the Annual Report
Board Audit Committee on pages 282 to 284.
Board Human Resources & Remuneration Committee on
pages 285 & 286.
Board Nomination Committee on pages 287 & 288.
Board Integrated Risk Management Committee on pages 289
to 291.
Board Related Party Transaction Review Committee on pages
292 & 293.
Board Credit Committee on pages 294 & 295.
Board Strategic Planning Committee on page 296.
Board Shareholder Relations Committee on pages 297 & 298.
Board Treasury Committee on page 299.
Board Marketing Committee on page 300.
The Chairpersons of the Sub Committees are present at the AGM to
clarify any matters that may be referred to them by the Chairman.
Complied
The Chairman of the Board Audit Committee is an Independent Non

Executive Director who is a fellow member of the Chartered Institute
of Management Accountants, UK.
Complied
Complied
3(6) Board Appointed Committees

(58) Establishing Board Sub
Committees, their functions
and reporting
3(6)(i)
3(6)(ii) Board Audit Committee

3(6)(ii)(a)
(59) Chairman to be an
Independent Non Executive
+PYLJ[VY^P[OX\HSPJH[PVUZHUK
experience in accountancy
and/or audit
(60) Committee to comprise
solely of Non Executive
Directors
3(6)(ii)(b)
All members of the Board Audit Committee are Non Executive

Directors.
(61) Audit Committee

functions
3(6)(ii)(c)
In accordance with the Terms of Reference, the Board Audit

Complied
Committee has made the following recommendations:
The appointment of the External Auditor for audit services to be
WYV]PKLKPUJVTWSPHUJL^P[O[OLYLSL]HU[Z[H[\[LZ"
The implementation of the Central Bank guidelines issued to
(\KP[VYZMYVT[PTL[V[PTL"
;OLHWWSPJH[PVUVM[OLYLSL]HU[HJJV\U[PUNZ[HUKHYKZ"HUK
The service period, audit fee and any resignation or dismissal of
the Auditor
The Board Audit Committee ensures that the service period of the
LUNHNLTLU[VM[OL,_[LYUHS(\KP[WHY[ULYZOHSSUV[L_JLLK]L
years, and that the particular Audit partner is not re-engaged for the
audit before the expiry of three years from the date of the completion
of the previous term.
271
Governance
Principle
CBSL
Direction
Reference
Status
(62) Review and monitor

External Auditors
independence and objectivity
and the effectiveness of the
audit processes
3(6)(ii)(d)
The Board Audit Committee (BAC) obtains representations from the

External Auditor on their independence and that the audit is carried
out in accordance with the Sri Lanka Accounting Standards.
Complied
(63) Provision of non-audit

services by External Auditor
3(6)(ii)(e)
When such services are obtained from External Auditors prior

approval is obtained from the Board Audit Committee in accordance
with regulations. Further, there is a policy in place approved by the
Board in this regard.
Complied
(64) Determines scope of audit 3(6)(ii)(f)
;OL*VTTP[[LLKPZJ\ZZLKHUKUHSPZLK^P[O[OL,_[LYUHS(\KP[VYZ
Complied
the nature and scope of the audit to ensure that it includes:
An assessment of the Banks compliance with the relevant
Directions in relation to Corporate Governance and Internal
*VU[YVSZ6]LY-PUHUJPHS9LWVY[PUN"
;OLWYLWHYH[PVUVMUHUJPHSZ[H[LTLU[ZMVY,_[LYUHSW\YWVZLZPU
accordance with relevant accounting principles and reporting
VISPNH[PVUZ"
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.

9L]PLÛHUJPHS
information of the Bank
272
3(6)(ii)(g)
;OL)VHYK(\KP[*VTTP[[LLYL]PL^Z[OLUHUJPHSPUMVYTH[PVUVM[OL
Bank, in order to monitor the integrity of the Financial Statements
of the Bank, its Annual Report, accounts and quarterly reports
WYLWHYLKMVYKPZJSVZ\YLHUK[OLZPNUPJHU[UHUJPHSYLWVY[PUN
judgments contained therein. The review focuses on the following:
4HQVYQ\KNLTLU[HSHYLHZ"
Any changes in accounting policies and practices
:PNUPJHU[HKQ\Z[TLU[ZHYPZPUNMYVT[OLH\KP[
The going concern assumption
The compliance with relevant accounting standards and other
legal requirements.
The Board Audit Committee makes their recommendations to the
Board on the above on a quarterly basis.
Complied
Principle
CBSL
Direction
Reference
Status
(66) Discussions with External

Auditor without the executive
management on interim and
UHSH\KP[Z
3(6)(ii)(h)
Complied
The Board Audit Committee discusses issues, problems and
YLZLY]H[PVUZHYPZPUNMYVT[OLPU[LYPTHUKUHSH\KP[Z^P[O[OL,_[LYUHS
Auditor. The Committee met the External Auditors in the absence of
executive management of the Bank.
(67) Review of Management

Letter and Banks response
3(6)(ii)(i)
The Board Audit Committee has reviewed the External Auditors

management letter and the managements response thereto.
(68) Review of Internal Audit

function
3(6)(ii)(j)
The Board Audit Committee has oversight of the Internal Audit

Complied
function and has following responsibilities with regard to the same:
Reviews the adequacy of the scope, functions and resources
of the Internal Audit Department, and ensures that the
+LWHY[TLU[OHZ[OLULJLZZHY`H\[OVYP[`[VJHYY`V\[P[Z^VYR"
Reviews the Internal Audit programme and results of the
audits and ensures that appropriate actions are taken on the
YLJVTTLUKH[PVUZVM[OL0U[LYUHS(\KP[+LWHY[TLU["
Reviews appraisals of the performance of the head and senior
Z[HMMTLTILYZVM[OL0U[LYUHS(\KP[+LWHY[TLU["
Recommends any appointment or termination of the head,
senior staff members
Ensures that the Committee is appraised of resignations
of senior staff members of the Internal Audit Department
including the Chief Internal Auditor, and provides an
opportunity to the resigning senior staff members to submit
YLHZVUZMVYYLZPNUPUN"
Ensures that the Internal Audit function is independent of the
activities it audits and that it is performed with impartiality,
WYVJPLUJ`HUKK\LWYVMLZZPVUHSJHYL
There are no outsourced functions of Internal Audit at present and
provisions in this regard are not applicable.
(69) Internal Investigations
3(6)(ii)(k)
;OL)VHYK(\KP[*VTTP[[LLOHZYL]PL^LK[OLTHQVYUKPUNZVM
internal investigations during the year and managements responses
thereto. It has also ensured that the recommendations of such
investigations are implemented.
Complied
(70) Attendees at Audit

Committee Meetings
3(6)(ii)(l)
The CEO/MD, GCFO, DGM - Finance, Head of Internal Audit and

a representative of the External Auditors normally attend meetings.
Other Board members may also attend meetings upon the invitation
of the Committee. The Committee met the External Auditors without
the Executive Directors being present in terms of the Corporate
Governance Code.
Complied
Complied
273
Governance
Principle
CBSL
Direction
Reference
Status
(71) Explicit authority,

resources and access to
information
3(6)(ii)(m)
The Board Audit Committee has:

Explicit authority to investigate into any matter within its terms
VMYLMLYLUJL"

;OLYLZV\YJLZÔPJOP[ULLKZ[VKVZV"

-\SSHJJLZZ[VPUMVYTH[PVU"HUK
Authority to obtain External professional advice and to invite
outsiders with relevant experience to attend, if necessary.
Complied
(72) Regular meetings
3(6)(ii)(n)
The Board Audit Committee has scheduled regular quarterly

meetings and additional meetings are scheduled when required.
Accordingly, the Committee met 9 times during the year. 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.
Complied
(73) Disclosure in Annual

Report
3(6)(ii)(o)
The Report of the Board Audit Committee on pages 282 to 284

includes the following:

+L[HPSZVM[OLHJ[P]P[PLZVM[OL)VHYK(\KP[*VTTP[[LL"
The number of Board Audit Committee meetings held in the
`LHY"HUK
Details of attendance of each individual Director at such
meetings (on page 238)
Complied
(74) Maintain Minutes of

meetings
3(6)(ii)(p)
The Company Secretary serves as the Secretary to the Board Audit

Committee and maintains minutes of the Committee meetings.
Complied
The Bank has a Board approved Whistle Blowing Policy whereby

HULTWSV`LLVM[OL)HURTH`PUJVUKLUJLYHPZLJVUJLYUZHIV\[
WVZZPISLPTWYVWYPL[PLZPUUHUJPHSYLWVY[PUNPU[LYUHSJVU[YVSVYV[OLY
matters. Company Secretary forwards all communications received
in this regard, including anonymous communications, to the
Chairman of the Board Audit Committee who takes addresses the
issue in an appropriate manner. This policy is annually reviewed by
the Board Audit Committee.
Complied

(75) Whistle blowing policy
and relationship with External
Auditor
3(6)(ii)(q)
The Board Audit Committee is the key representative body for

overseeing the Banks relations with the External Auditor and meets
the Auditor on a regular basis to discharge this function.
274
G4-40
Principle
CBSL
Direction
Reference
Status
3(6)(iii) Board Human Resources and Remuneration Committee (BHR&RC)

(76) (a) Policy to determine
the remuneration of Directors,
CEO/MD and KMPs.
3(6)(iii) (a)
(76) (b) Policy to determine the

remuneration KMPs.
77) Goals and targets for the
Directors, MD and KMPs
3(6)(iii) (b)
As per the Terms of reference the Committee has to implement a

policy to determine the remuneration (salaries, allowances and other
UHUJPHSWH`TLU[ZYLSH[PUN[V+PYLJ[VYZ
Complied
The Committee will develop a policy to determine the remuneration

relating to CEO/MD and KMPs.
Not
Complied
Board Human Resources and Remuneration Committee has to

develop a policy to determine the remuneration (salaries, allowances
HUKV[OLYUHUJPHSWH`TLU[ZMVY[OL247Z
Not
Complied
Goals and targets for the MD/CEO and the KMPs are documented
under the Board approved Strategic Plan / Action Plan for the year.
Complied
There are no targets set for the Non Executive Directors since they
are not expected to get involved in executive functions.
(78) Evaluation of the
performance of the MD.
3(6)(iii) (c)
Evaluation of performance of
KMPs against the set targets
and goals.
(79) Terms of Reference
provides MD is not present
at meetings when matters
relating to the MD are being
discussed
3(6)(iii) (d)
Performance of the CEO/MD for the year 2014 will be reviewed by

the Committee.
Not
Complied
Performance of the KMPs for the year ended 31st December

2015 against their set targets and goals has to be reviewed by the
BHR&RC.
Complied
Terms Of Reference of the Committee provides that the MD/CEO

should not be present at meetings of the Committee, when matters
relating to him are being discussed. MD/CEO was not present when
matters relating to him were discussed during the year.
Complied
The Board Nomination Committee has developed and implemented

a procedure to appoint new Directors.
Complied
A procedure is to be documented and implemented to select CEO/

MD and Key Management Personnel.
Not
Complied
The Committee makes recommendations regarding the re-election

of current Directors, taking into account the performance and
contribution made by the Director concerned towards the overall
discharge of the Boards responsibilities.
Complied
3(6)(iv) Board Nomination Committee

(80) (a) Procedure to appoint
Directors.
3(6)(iv)(a)
(80) (b) Procedure to appoint

CEO and Key Management
Personnel.
(81) Re-election of Directors
3(6)(iv)(b)
275
Governance
Principle
CBSL
Direction
Reference
Status
(82) Eligibility criteria for

appointments to key
managerial positions including
CEO
3(6)(iv)(c)
The Committee sets the eligibility criteria to be considered, including

X\HSPJH[PVUZL_WLYPLUJLHUKRL`H[[YPI\[LZMVYHWWVPU[TLU[VY
promotion to key managerial positions and the CEO/MD. The
Committee considers the applicable statutes and guidelines in
setting the criteria.
Complied
These have been documented and included in the job descriptions

completed for the CEO/MD and Key Management Personnel.
(83) Fit & Proper criteria for
Directors, CEO and KMPs
3(6)(iv)(d)
The Committee obtains annual declarations from Directors, CEO/

MD and HR Department obtains annual declarations from Key
4HUHNLTLU[7LYZVUULS[VLUZ\YL[OH[[OL`HYL[HUKWYVWLY
WLYZVUZ[VOVSKVMJLHZZWLJPLKPU[OLJYP[LYPHNP]LUPU+PYLJ[PVU
3(3) and as set out in the Statutes.
Complied
(84) Succession Plan for

retiring Directors, CEO/MD
and KMPs
3(6)(iv)(e)
Structural changes of the Bank recommended by the Board

Nomination Committee has been approved by the Board.
Complied
The Committee will have to establish a succession plan for retiring

Directors CEO/MD and KMPs.
Not
Complied
Committee is chaired by an Independent Director. Among the other

members, 2 members are Independent and other 2 members are
not Independent. The Committee will initiate action to appoint more
Independent Directors to the Committee during the year 2016. MD
attends meetings by invitation.
Complied
(85) Committee Chairperson

and other members
3(6)(iv)(f)

3(6)(v) Board Integrated Risk Management Committee (BIRMC)
(86) Composition of Risk
276
3(6)(v)(a)
The Board Integrated Risk Management Committee comprises 3

5VU,_LJ\[P]L+PYLJ[VYZ*,64+.YV\W9PZR6MJLY /LHKVM
Compliance and other Key Management Personnel supervising
credit, market, liquidity, operational and strategic risk. The
Committee works closely with Key Management Personnel within
the framework of authority and responsibility assigned to the
Committee
Complied
G4-41
Principle
CBSL
Direction
Reference
Status
(87) Risk Assessment of the

bank, subsidiary companies
and associate companies
3(6)(v)(b)
Credit Risk, Market Risk, Liquidity and the Operational Risks are
assessed and the reports submitted to the BIRMC through the
.YV\W9PZR6MJLY9PZRZHYLHZZLZZLKH[[OL)094*HUK[OL
relevant reports are submitted by the Risk Management Function to
the BIRMC.
Complied
The Committee has approved the policies on Credit Risk

Management, Market Risk Management and Operational Risk
Management which provides a framework for management and
assessment of risks. Accordingly, quarterly information on preestablished risk indicators is reviewed by the Committee.
The Committee has a process to assess and evaluate all risks of
[OL)HURHUK[OLUKPUNZHUKPZZ\LZHYLZ\ITP[[LK[V[OL)VHYKMVY
their review and action if any. The Committee will initiate action to
evaluate the risk management of Subsidiary companies both on a
Bank basis and Group basis.
(88) Review the adequacy and
effectiveness of management
level Committees
3(6)(v)(c)
The Committee reviews the reports of the management level Credit

Policy, Risk and Portfolio Review Committees and the Asset and
Liability Management Committee (ALCO).
Complied
The Committee needs to review the adequacy and the effectiveness Not
Complied
of all the management level committees such as the Board Credit
*VTTP[[LLHUK[OL(3*6[VHKKYLZZZWLJPJYPZRZHUK[VTHUHNL
[OVZLYPZRZ^P[OPU[OLSHPKKVÛSPTP[ZZWLJPLKI`[OL*VTTP[[LLHZ
required by the direction.
(89) Corrective action to
mitigate risks exceeding
prudential levels
3(6)(v)(d)
The Committee takes prompt corrective action to mitigate the

LMMLJ[ZVMZWLJPJYPZRZPU[OLJHZLZ\JOYPZRZHYLH[SL]LSZIL`VUK
the prudent levels decided by the Committee on the basis of the
Banks policies and regulatory and supervisory requirements. The
key risk indicators designed by the Committee will be approved by
the Committee and the Board.
Complied
(90) Frequency of meetings
3(6)(v)(e)
The Committee has regular meetings and schedules additional

meetings when required. The agenda covers matters assessing all
aspects of risk management including updated business continuity
plans.
Complied
(J[PVUZHNHPUZ[VMJLYZ
responsible for failure to
PKLU[PM`ZWLJPJYPZRZVY
implement corrective action
3(6)(v)(f)
:PUJLHSSKLJPZPVUZVUYPZRPKLU[PJH[PVUHYL[HRLUJVSSLJ[P]LS`[HRPUN
HJ[PVUHNHPUZ[PUKP]PK\HSVMJLYZKVLZUV[HYPZL
Complied
(92) Risk assessment report

to Board
3(6)(v)(g)
A detailed report of the meeting is submitted to the Board after each

Committee meeting by the Secretary of the Committee for their
PUMVYTH[PVU]PL^ZJVUJ\YYLUJLVYZWLJPJKPYLJ[PVUZ
Complied
277
Governance
G4-41
Principle
CBSL
Direction
Reference
Status
(93) Compliance function
3(6)(v)(h)
A compliance function established assesses the Banks compliance

with laws, regulations, and regulatory guidelines. Compliance unit
will have to assess the Banks compliance with internal controls and
approved policies on all areas of business operations. This functions
is headed by a dedicated Head of Compliance who reports to the
Board Integrated Risk Management Committee (BIRMC) and is
responsible for providing the following:
Complied
A detailed quarterly report on statutory and mandatory reporting

requirements indicating the status of compliance to the Board
(TVU[OS`JVTWSPHUJLJLY[PJH[L^P[OZPNUVMMMYVTHSSI\ZPULZZ\UP[
heads to the Committee.
3(7) Related Party Transactions
3(7)(i)
A Board approved documented process is in place on categories of

YLSH[LKWHY[PLZPUVYKLYMVY[OL)HUR[VH]VPKHU`JVUPJ[ZVMPU[LYLZ[
that may arise from any transaction with the relevant parties.
Further, Directors are individually requested to declare their
transactions with the Bank on a quarterly and annual basis and the
Banks Corporate web is updated with the information obtained.
Complied
(95) Related Party

Transactions covered by
direction
3(7)(ii)
+LUP[PVUZVM9LSH[LK7HY[`;YHUZHJ[PVUZJV]LYLKI`[OLHIV]L
Board process and declarations by Directors and Key Management
Personnel include:
;OLNYHU[VMHU`[`WLVMHJJVTTVKH[PVUHZKLULKPU
the Monetary Boards Directions on maximum amount of
accommodation.
The creation of any liabilities of the Bank in the form of
deposits, borrowings and investments.
;OLWYV]PZPVUVMHU`ZLY]PJLZVMHUHUJPHSVYUVUUHUJPHS
nature provided to the Bank or received from the Bank.
The creation or maintenance of reporting lines and information
V^ZIL[^LLU[OL)HURHUKHU`YLSH[LKWHY[PLZÔPJOTH`
SLHK[V[OLZOHYPUNVMWV[LU[PHSS`WYVWYPL[HY`JVUKLU[PHSVY
V[OLY^PZLZLUZP[P]LPUMVYTH[PVU[OH[TH`NP]LILUL[Z[VZ\JO
related parties.
Complied
(96) Monitoring of Related

7HY[`;YHUZHJ[PVUZKLULKHZ
more favourable treatment
3(7)(iii)
The Bank has to implement either a preventive or a detective system Not

Complied
to ensure that no favourable treatment is offered to related parties
noted in 3(7(j)) above
(94) Categories of related

WHY[PLZHUKH]VPKJVUPJ[VM
interest
3(7) Related Party Transactions
278
Principle
CBSL
Direction
Reference
Status
(97) Granting accommodation

to a Director or close relation
to a Director
3(7)(iv)
Complied
A procedure is in place for granting accommodation to Directors
or to close relations of Directors. Such accommodation requires
approval at a meeting of the Board of Directors, by not less than
2/3rds of the number of Directors other than the Director concerned,
voting in favour of such accommodation. The terms and conditions
of the facility include a proviso that it will be secured by such security
as may from time to time be determined by the Monetary Board as
well.
(98) Accommodation granted

to persons, or concerns of
persons, or close relations of
persons, who subsequently
are appointed as Directors of
the Bank
3(7)(v)
;OL*VTWHU`:LJYL[HY`VI[HPUZKLJSHYH[PVUZHMKH]P[ZMYVTHSS
Directors prior to their appointment and they are requested to
declare any further transactions.
Complied
Employees of the Bank are aware of the requirement to obtain

ULJLZZHY`ZLJ\YP[`HZKLULKI`[OL4VUL[HY`)VHYKPM[OLULLK
arises.
Processes for compliance with this regulation are also monitored by
the Compliance Unit.
(99) Favourable treatment

or accommodation to Bank
employees or their close
relations
3(7)(vi)
Complied
No favourable treatment / accommodation are provided to Bank
LTWSV`LLZV[OLY[OHUZ[HMMILUL[Z,TWSV`LLZVM[OL)HURHYL
informed through operational circulars to refrain from granting
favourable treatment to other employees or their close relations or to
any concern in which an employee or close relation has a substantial
interest.
(100) Remission of
accommodation subject to
Monetary Board approval
3(7)(vii)
The situation has not arisen in the Bank to date.
Complied
3(8)(i)
Annual audited Financial Statements and quarterly Financial

Statements are prepared and published in accordance with the
formats prescribed by the supervisory and regulatory authorities and
applicable Accounting Standards.
Complied
A statement to this effect is included in the following:

Statement of Directors Responsibility to Financial Reporting
given on pages 317 & 318.
Annual Report of the Board of Directors on the Affairs of the
Company given on pages 303 to 312.
4HUHNPUN+PYLJ[VYZHUK.YV\W*OPLM-PUHUJPHS6MJLYZ
Responsibility Statement given on page 316.
Complied
3(8)(i) Disclosures
(101) Publish annual and
quarterly Financial Statements
3(8)(ii) Disclosures in Annual Report

(102) A statement to the
effect that the annual audited
UHUJPHSZ[H[LTLU[ZOH]L
been prepared in line with
applicable accounting
standards and regulatory
requirements, inclusive of
ZWLJPJKPZJSVZ\YLZ
3(8)(ii)(a)
279
Governance
Principle
CBSL
Direction
Reference
Status
(103) Report by the Board

on the Banks internal control
mechanism
3(8)(ii)(b)
The Annual Report includes the following reports where the Board
JVUYTZ[OH[[OLUHUJPHSYLWVY[PUNZ`Z[LTOHZILLUKLZPNULK[V
WYV]PKLYLHZVUHISLHZZ\YHUJLYLNHYKPUN[OLYLSPHIPSP[`VMUHUJPHS
YLWVY[PUNHUK[OH[[OLWYLWHYH[PVUVMUHUJPHSZ[H[LTLU[ZMVY
External purposes has been done in accordance with relevant
accounting principles and regulatory requirements:
Statement of Directors Responsibility on Financial Reporting
given on pages 317 & 318.
Annual Report of the Board of Directors on the Affairs of the
Company given on pages 303 to 312.
Complied
(104) Assurance Report issued 3(8)(ii)(c)

by the Auditors under Sri
Lanka Standard on Assurance
Engagements SLSAE 3050
The Board has obtained an assurance report on the effectiveness

of Internal Controls Over Financial Reporting which is published on
page 315.
Complied
(105) Details of Directors
3(8)(ii)(d)
Details of Directors are given on pages 8 to 17.

Directors interests in contracts with the company are given
ILSV^"
Category
Deposits
Amount (Rs Mn)

221.872
Credit cards
0.816
Interest income
0.049
Interest expense
11.677
Share Based Payments

Cash dividend (Rs Mn)
0.513
Scrip dividend - number of shares
2,687
Aggregate value of remuneration paid by the Bank for the year

is Rs 97.97 Mn.
280
Complied
Principle
CBSL
Direction
Reference
Status
(106) Total accommodation

granted to each category
of related parties and as a
percentage of the Banks
regulatory capital
3(8)(ii)(e)
Related Party Transactions are given in Note No 49 to the Financial

Statement on pages 405 to 409.
Complied
(107) Aggregate values

of remuneration paid to,
and transactions with Key
5L[(JJVTVKH[PVUNYHU[LK[V9LSH[LK7HY[PLZHYLNP]LUILSV^"
3(8)(ii)(f)
Category of related party

transaction
Amount (Rs 000)
Directors & close relations
Immaterial
539
KMPs & close relations
0.1
48,159
Subsidiaries
6.4
3,099,858
Entities controlled by Directors,

KMPs and their close relations
9.0
4,346,736
The aggregate values of remuneration paid to KMP (as per CBSL

N\PKLSPULZMVY[OL`LHYHYLHZMVSSV^Z!:OVY[[LYTLTWSV`LLILUL[Z
9Z4U[LYTPUHSILUL[Z9Z4UWVZ[LTWSV`TLU[9Z
19.27 Mn and directors fees and expenses Rs 8.78 Mn.
Complied
The aggregate value of transactions of the Bank as at year end

with KMP (as per CBSL guidelines) are as follows: Loans, advances
& credit card balances Rs 48.48 Mn, Deposits & investments Rs
157.50 Mn, cash dividend paid Rs 2.62 Mn and scrip dividend paid:
13,707 shares.
*VUYTH[PVUI`
the Board on the annual
Corporate Governance report
3(8)(ii)(g)
;OL)HUROHZVI[HPULKJLY[PJH[PVUMYVT[OL,_[LYUHS(\KP[VYZVM
compliance with Corporate Governance Directions
Complied
9LWVY[JVUYTPUN
compliance with prudential
requirements, regulations,
laws and internal controls
3(8)(ii)(h)
The Statement of Directors Responsibility on Financial Reporting

given on pages 317 & 318 clearly sets out details regarding
compliance with prudential requirements, regulations, laws and
internal controls. There were no instances of material noncompliance to report on corrective action taken during the year.
Complied
There were no supervisory concern lapses in the Banks Risk

Management Systems or non-compliance with these directions that
have been pointed out by the Director -Bank Supervision required to
be disclosed by the Bank
Not
applicable
(110) Measures taken to rectify 3(8)(ii)(i)

non-compliance Issues
Dhammika Perera
Chairman
Aravinda Perera
Managing Director
Colombo, Sri Lanka

16th February 2016
281
Governance
Board Audit
Committee
Report
&RPSRVLWLRQRIWKH%RDUG$XGLW
&RPPLWWHH
The Board Audit Committee (the
Committee) which was established
on 10th April 1997, appointed by and
responsible to the Board of Directors. The
Committee comprises of 5 Non Executive
Directors, who conduct Committee
proceedings in accordance with the
Terms of Reference approved by the
Board. The following members serve in
the Committee:
the Annual Report. The Managing

Director, Executive Director/Group
*OPLM-PUHUJPHS6MJLY+LW\[`.LULYHS
Manager Finance, Head of Internal
Audit, Senior Manager - Systems Audit
and the External Auditors also attended
these meetings by invitation. 4 of these
meetings were held to consider and
recommend to the Board of Directors
the Banks quarterly and Annual Financial
Statements.
7HUPVRI5HIHUHQFH
Mr Ranil Pathirana (Chairman) - (IND/NED)
- (IND/NED)
- (IND/NED)
- (IND/NED)
- (IND/NED)
(IND - Independent Director, NED - Non

Executive Director and ED - Executive Director)
)YPLMWYVSLZVM[OLTLTILYZHYLNP]LU
on pages 8 to 17 of the Annual Report.
The Company Secretary functions as the
Secretary to the Board Audit Committee.
The Chairman of the Committee, Mr Ranil
Pathirana who is an Independent Non
Executive Director, is a Fellow Member of
the Chartered Institute of Management
Accountants, UK and counts many years
of experience in the Financial Services
industry.
0HHWLQJV
The Committee met on 9 occasions
during the year. Attendance by the
Committee members of these meetings
is given in the table on page 238 of
282
The Charter of the Board Audit

*VTTP[[LLJSLHYS`KLULZ[OL;LYTZVM
Reference of the Committee. The Board
periodically reviews the Committee
Charter. The Committee is responsible
to the Board of Directors and reports on
its activities regularly. The Board Audit
Committee also assists the Board in its
NLULYHSV]LYZPNO[VMUHUJPHSYLWVY[PUN
internal controls and functions relating to
internal and external audits.
5HJXODWRU\&RPSOLDQFH
The roles and functions of the
Committee are regulated by the
Banking Act Direction No 11 of 2007,
on the mandatory Code of Corporate
Governance for Licensed Commercial
Banks in Sri Lanka, issued by the
Central Bank of Sri Lanka, the Rules on
Corporate Governance as per section
7.10 of Listing Rules issued by the
Colombo Stock Exchange and the
Code of Best Practice on Corporate
Governance issued jointly by the
Securities and Exchange Commission
(SEC) and the Institute of Chartered
Accountants of Sri Lanka (CASL).
5ROHDQG5HVSRQVLELOLWLHV
The Committee is responsible for:

9L]PL^PUNUHUJPHSPUMVYTH[PVU
of the Bank, in order to monitor
the integrity of the Financial
Statements of the Bank, its Annual
Report, accounts and quarterly
reports prepared for disclosure.
2.
Reporting to the Board on the
quality and acceptability of the
Banks accounting policies and
practices.

9L]PL^PUNHJJV\U[PUNHUKUHUJPHS
reporting, risk management
processes and regulatory
compliance.
4.
Reviewing of the Financial
Statements (including quarterly
interim statements) prior to
publication to ensure compliance
with statutory provisions,
accounting standards and
accounting policies which are
consistently applied.
5.
Reviewing internal audit reports
and liaising with Corporate
Management in taking
precautionary measures to
minimize control weaknesses,
procedure violations, frauds, and
errors.
6.
Assessing the independence
and monitoring the performance
and functions of Internal Audit,
including overseeing the
appointment of the Head of
Internal Audit.
7.
Overseeing the appointment,
compensation, resignation,
dismissal of the External Auditor,
including review of the external
audit, its cost and effectiveness
and monitoring of the External
Auditors independence.
8.
Reviewing effectiveness of the
Banks systems of Internal Control
Over Financial Reporting to provide
reasonable assurance regarding
[OLYLSPHIPSP[`VMUHUJPHSYLWVY[PUN
9.
and the preparation of Financial

Statements for external purposes
have been done in accordance
with applicable accounting
standards and regulatory
requirements.
Engaging independent advisors
on specialized functions where it is
deemed necessary.
)LQDQFLDO5HSRUWLQJ
The Committee, as part of its
responsibility to oversee the Banks
UHUJPHSYLWVY[PUNWYVJLZZVUILOHSMVM
the Board of Directors, has reviewed and
discussed with the Management and
the External Auditors the quarterly and
the Annual Financial Statements prior
to their release. The review included the
quality and acceptability of accounting
policies and practices, the clarity of the
disclosures and the extent of compliance
^P[OUHUJPHSYLWVY[PUNZ[HUKHYKZ
the Companies Act No 7 of 2007,
the Banking Act No 30 of 1988 and
amendments thereto and other relevant
UHUJPHSHUKNV]LYUHUJLYLWVY[PUN
requirements. To facilitate their review,
the Board Audit Committee considered
reports from the Executive Director/
.YV\W*OPLM-PUHUJPHS6MJLYHUKHSZV
reports from the External Auditors on the
outcome of their half-year review and
annual audit.
3HUIRUPDQFH
,QWHUQDO&RQWURO2YHU)LQDQFLDO
5HSRUWLQJ,&2)5
The Bank is required to comply with
Section 3(8)(ii)(b) of the Banking Act
Direction No 11 of 2007 on Corporate
Banks issued by the Central Bank of Sri
Lanka and assess the effectiveness of
Internal Control Over Financial Reporting
as of 31st December 2015.
Reporting as of 31st December 2015

based on the criteria set out in the
Guidance for Directors of Banks on The
Directors Statement of Internal Control,
issued by the Institute of Chartered
Accountants of Sri Lanka (ICASL) in
2010.
The Banks assessment was based on
processes documented by the respective
process owners. For the successful
implementation of this task a steering
committee headed by the Executive
+PYLJ[VY.YV\W*OPLM-PUHUJPHS6MJLY
comprising of Corporate Management
and other relevant Department Heads
was formulated in 2010 with the guidance
of the Banks External Auditor (Ernst
& Young) which continued to function
in 2015 as well. The Internal Audit
Department carried out walk through
tests on the documented processes to
establish their adequacy and commented
where necessary.
Based on Internal Auditors and External
Auditors assessments, the Board has
concluded that, as of 31st December
2015, the Banks Internal Control Over
Financial Reporting is effective. Directors
Report on the Banks Internal Control
Over Financial Reporting is provided on
pages 313 & 314. The Banks External
Auditors have audited the effectiveness
of the Banks Internal Control Over
Financial Reporting and have reported
to the Board that nothing has come to
their attention that causes them to believe
[OH[[OLUHUJPHSYLWVY[PUNPZPUJVUZPZ[LU[
with their understanding of the processes
adopted by the Board in the review of the
design and effectiveness of the internal
control system of the Bank. The External
Auditors Report on the Banks Internal
Control Over Financial Reporting is
provided on page 315.
$QQXDO&RUSRUDWH*RYHUQDQFH
5HSRUW
As required by Section 3(8)(ii)(g) of the
on Corporate Governance for Licensed
Commercial Banks issued by the Central
Bank of Sri Lanka, the Annual Corporate
Governance Report for 2015 is provided
on pages 228 to 281. The External
Auditors of the Bank have performed
procedures set out in Sri Lanka Related
Services Practice Statement 4750 issued
by the Institute of Chartered Accountants
of Sri Lanka (SLRSPS 4750), to meet
the compliance requirement of the
Corporate Governance directive. Their
UKPUNZWYLZLU[LKPU[OLPYYLWVY[KH[LK
16th February 2016 addressed to the
Board are consistent with the matters
disclosed above and did not identify any
inconsistencies to those reported by the
Board on pages 260 to 281.
,QWHUQDO$XGLW
The Board Audit Committee monitored
and reviewed the scope, extent and
effectiveness of the activity of the
Banks Internal Audit Department. This
included reviewing of updates on audit
activities and achievements against the
Banks audit plan, advising corporate
management to take precautionary
TLHZ\YLZVUZPNUPJHU[H\KP[UKPUNZHUK
assessment of resource requirements
of the Internal Audit Department. The
Committee had necessary interactions
with the Head of Internal Audit throughout
the year.
During the year, the Committee reviewed
the internal audit plan and monitored the
implementation of it on a regular basis.
The sections covered and the regularity of
audits depends on the risk level of each
section, with higher risk sections being
audited more frequently.
The Bank assessed the effectiveness

of its Internal Control Over Financial
283
Governance
Board Audit Committee Report
G4-57,58
The Internal Audit Department comprises

three broad areas namely:
)YHUJO9LNPVUHSVMJL(\KP[Z"
2.
Departments including Trade
-PUHUJLHUK;YLHZ\Y`(\KP[Z"HUK
3.
Forensic and Fraud Investigations.
In 2015 the Board Audit Committee
reviewed internal audit reports of 119
Branches, 43 Departments and 03
:\IZPKPHYPLZ(\KP[UKPUNZWYLZLU[LKPU
the reports are prioritised based on the
level of risk. The Committee followed up
on Internal Audit recommendations with
the Corporate Management. Internal
Audit reports are made available to
External Auditors as well.
4.
5.
6.
The Internal Audit Department has

maintained an average audit cycle of
approximately one audit every 19 months.
Trade Finance and Treasury Audits are
assigned with equal prominence and
emphasis considering its complexities
and importance in the context of current
economic environment.
([WHUQDO$XGLWRUV
With regard to the external audit function
of the Bank, the role played by the
Committee is as follows:
1.
Undertook the annual evaluation of
the independence and objectivity
of the External Auditor and the
effectiveness of the audit process.
2.
Met with the External Auditors
to discuss their audit approach
and procedure, including matters
relating to the scope of the audit
and Auditors independence.
3.
Reviewed the audited Financial
Statements with the External
Auditor who is responsible for
expressing an opinion on its
conformity with the Sri Lanka
Accounting Standards.
284
7.
8.
Reviewed the Management

Letters issued by the External
Auditor together with management
responses thereto.
Met the External Auditors on 3
occasions during the year without
the Executive Directors and the
Corporate Management to ensure
that there was no limitation of
scope in relation to the Audit
and to allow for full disclosure of
any incidents which could have
had a negative impact on the
effectiveness of the external audit.
It was concluded that there was no
cause for concern.
Reviewed the Non-Audit Services
provided by the External Auditor
and was of the view that such
services were not within the
JH[LNVY`VMZLY]PJLZPKLU[PLKHZ
prohibited under:
The guidelines issued by the
Central Bank of Sri Lanka, for
External Auditors, relating to their
statutory duties in terms of Section
39 of the Banking Act No 30 of
1988 and amendments thereto.
The Guideline for Listed
Companies on Audit and
Audit Committees issued by
Commission of Sri Lanka.
Reviewed the Letter of
Representation issued to the
External Auditors by the Board.
Reviewed the Letter of
0UKLWLUKLUJL*VUYTH[PVUPZZ\LK
by the External Auditor as required
by the Companies Act No 7 of
JVUYTPUN[OH[[OL`KVUV[
have any relationship or interest
in the company, which may have
a bearing on their independence
within the meaning of the Code of
Conduct and Ethics of the Institute
of Chartered Accountants of Sri
Lanka.
The Committee has recommended to

the Board of Directors that Messrs Ernst
and Young, Chartered Accountants,
[VILYLHWWVPU[LKMVY[OLUHUJPHS`LHY
ending 31st December 2016 subject to
the approval of shareholders at the next
Annual General Meeting.
:KLVWOH%ORZLQJ
Sampath Banks Whistle Blowing Policy
is intended to serve as a channel of
corporate fraud risk management. The
policy allows any team member who
has a legitimate concern on an existing
or potential wrong doing, done by any
person within the Bank, to come forward
voluntarily, and bring such concern to the
notice of the Audit Committee Chairman
through Company Secretary. Concerns
raised are investigated and the identity
of the person raising the concern is
RLW[JVUKLU[PHSHZL]LUHUVU`TV\Z
complaints are looked at. This procedure
is being monitored by the Board Audit
Committee.
3URIHVVLRQDO$GYLFH
The Committee has the authority to seek
external professional advice on matters
^P[OPUP[ZW\Y]PL^"HUKMYVT[PTL[V[PTL
during the year consultations were done
with various parties.
%RDUG$XGLW&RPPLWWHH(YDOXDWLRQ
The annual evaluation of the Committee
was conducted by the Board Audit
Committee during the year and
concluded that its performance was
effective.
On behalf of the Board Audit Committee
Ranil Pathirana
Chairman - Board Audit Committee
Colombo, Sri Lanka
16th February 2016
Board Human
Resources and
Remuneration
Committee
Report
&RPSRVLWLRQRIWKH%RDUG+XPDQ
5HVRXUFHVDQG5HPXQHUDWLRQ
&RPPLWWHH
The Board Salary Revision Committee
was established on 18th May 1988 and
was re-titled as Board Human Resources
and Remuneration Committee on 12th
December 2002. This Committee
comprises of 3 Non Executive Directors
and 1 Executive Director. The Directors
who serve on the Committee are:
- Chairman
- (IND/NED)
- (NID/NED)
Mr Deshal De Mel
Mr Aravinda Perera
- (IND/NED)
- (NID/NED)
- (ED)
(NID - Non Independent Director, IND Independent Director, NED - Non Executive
Director and ED - Executive Director)
The Company Secretary of the Bank
functions as the Secretary to the Board
Committee.
0HHWLQJV
+\YPUN[OLUHUJPHS`LHYLUKLKZ[
December 2015, 4 meetings were held.
The attendance of the members of
these meetings is given on page 238
of the Annual Report. The Group Chief

-PUHUJPHS6MJLYHUK+LW\[`.LULYHS
Manager - Human Resources as well as
other executive staff attend meetings by
invitation and assist in their deliberations
by providing relevant information and
participating in the analysis of information,
except when their own compensation
packages or other matters relating to
them are reviewed.
7HUPVRI5HIHUHQFH
The roles and functions of the Board
Committee are regulated by the
the mandatory Code of Corporate
Lanka.
The overall scope of the committee is
to provide strategic direction to build an
LMMLJ[P]LHUKLMJPLU[/9VYNHUPZH[PVU
for the Bank. Based on the Direction
issued by the Monetary Board of the
Central Bank of Sri Lanka under Section
46(1), Banking Act No 30 of 1988 as
amended and Banking Act Direction No
11 of 2007 Corporate Governance for
Licensed Commercial Bank in Sri Lanka,
the Committee at its meeting held on 9th
August 2011 decided on the following
scope and responsibility:
G4-51,52
6FRSH
1.
2.
3.
4.
5.
The Committee shall determine

the remuneration policies (salaries,
HSSV^HUJLZHUKV[OLYUHUJPHS
payments) relating to Directors,
Managing Director (MD) and Key
Management Personnel of the
Bank.
The Committee shall set goals and
targets for Directors, MD and Key
Management Personnel.
The Committee shall evaluate the
performance of the MD and Key
Management Personnel against set
targets and goals periodically and
determine the basis for revising
YLT\ULYH[PVUILUL[ZHUKV[OLY
payments of performance based
incentives.
The Committee shall take on any
other areas and enlarge its scope
which in its view or in the Boards
view is desirable if it were handled
by the Committee.
The Committee reviews
recommendations from Deputy
General Manager, Human
Resources of the Bank with regard
to revision of salaries of Bank
staff and subsequently make
recommendations to the Board of
any major organizational changes
needed for the Banks purpose.
3HUIRUPDQFHGXULQJWKH<HDU.H\
+5,QLWLDWLYHV
2UJDQLVDWLRQ6WUXFWXUH
Brought in a dynamic process to ensure
the organisation structure and talent pool
is aligned to the strategies envisaged by
the Bank.
&DUHHUDQG6XFFHVVLRQ3ODQQLQJ
Continued Executive Talent Development
Program to ensure at least 1:1 back up
ratio for the key managerial positions of
the Bank.
285
Governance
Board Human Resources and Remuneration
Committee Report
(QKDQFH&RPSHWHQF\'HYHORSPHQW
Vast array of initiatives were taken to
enhance overall capabilities (technical and
non-technical) of team Sampath in order
to drive business objectives successfully.
Focus was on Develop Within Concept.
5HZDUGVIRULQQRYDWLRQDQG
SHUIRUPDQFH
Introduced a comprehensive reward
mechanism (Sampath Special Thanks
and Recognition Scheme) to motivate
and drive the team Sampath to achieve
higher level of performance, progress
beyond set targets and to recognize team
members who undertake special projects
on cost reduction/income generation.
3HUIRUPDQFH0DQDJHPHQW6\VWHP
Steps were taken to embrace a more
inclusive appraisal strategy by introducing
360 degree feedback evaluation system
for Chief Managers and Members of the
Corporate Management.
6SHFLDO5HFRJQLWLRQV
1.
Sampath Bank was adjudged as
the Overall Best Corporate Citizen
2015 at the Best Corporate
Citizen Sustainability Awards
presented by the Ceylon Chamber
of Commerce.
2.
Runners-up in the Great HR
Debate organized by IPM, Sri
Lanka
3.
Runners-up (Banking Sector) in the
Great HR Quiz organized by
IPM, Sri Lanka
286
G4-51
5HSRUWLQJWRWKH%RDUG
The Minutes of the Board Human
Resources and Remuneration Committee
meetings are tabled at Board meetings
enabling all Board members to have
access to them.
3URIHVVLRQDO$GYLFH
within its purview.
On behalf of the Board Human Resources
and Remuneration Committee
Deepal Sooriyaarachchi
Chairman Board Human Resources and
Remuneration Committee
Colombo, Sri Lanka
16th February 2016
Board
Nomination
Committee
Report
&RPSRVLWLRQRIWKH%RDUG
1RPLQDWLRQ&RPPLWWHH
The Board Nomination Committee which
was established on 10th January 2002,
as at 31st December 2015. The following
Directors serve on the Board Nomination
Committee:
Chairperson
- (IND/NED)
Mr Dhammika Perera
- (NID/NED)
- (NID/NED)
- (IND/NED)
Mrs Saumya Amarasekera - (NID/NED)
1.
2.
During 2015 the Committee held 13

meetings. Attendance by the Committee
members at each of these meetings is
given in the table on page 238 of the
Annual Report.
6.
The roles and functions of the Board

Nomination Committee are regulated
by the Banking Act Direction No 11 of
2007, the mandatory Code of Corporate
Lanka.
The Managing Director (MD) attends

meetings by invitation.
0HHWLQJV
5.
7HUPVRI5HIHUHQFH
(NID - Non Independent Director, IND Independent Director and NED - Non Executive
Director)
)YPLMWYVSLZVM[OLTLTILYZHYLNP]LUVU
pages 8 to 17 of the Annual Report. The
Company Secretary of the Bank functions
as the Secretary to the Board Nomination
Committee.
4.
3.
Continuously review the structure

and composition of the Board.
The Committee also reviews
the skills, knowledge, expertise
and experience of the Board of
Directors required in comparison to
the current banking environment.
The committee also makes
recommendations to the Board
with regard to any changes they
consider appropriate for the
progress and success of the Bank.
Recommends suitable persons
after careful consideration based
on the competencies required for
a particular job and the Banks
business need.
Considers and recommends the
requirements of additional/new
expertise of existing Directors and
to create succession plans for
Directors resigning or relinquishing
their positions.
7.
8.
9.
Carefully reviews management

progression and succession
planning for the top management.
The Committee ensures that
management personnel of high
calibre are appointed to guide the
Bank to achieve greater heights.
The Committee sets criteria such
HZX\HSPJH[PVUZL_WLYPLUJLHUK
key attributes required for eligibility
to be considered for appointment
or promotion to the post of MD
and other Key Management
Personnel (KMPs).
The Committee is also responsible
for selecting Directors, MD and
KMPs and when a Board vacancy
occurs. It is mandatory for the
Committee to evaluate the balance
of skill, knowledge and experience
on the Board before such
appointment. The Committee is
accountable to make a description
VM[OLYVSL[OH[PZ]HJH[LK"P[ZOV\SK
clearly analyse the capabilities
and skills required for a particular
appointment.
The Committee is accountable
to make recommendations
after review to re-appoint Non
Executive Directors annually as
recommended by CBSL guidelines
and when they are due for
re-appointment as per the Articles
of the Bank.
The Committee must report to the
Board of Directors on the activities
of the Committee meetings and
such minutes should be available
to the main Board Members.
The Committee shall ensure that
+PYLJ[VYZ4+HUK247ZHYL[
HUKWYVWLYWLYZVUZ[VOVSKVMJL
in compliance with the regulatory
and statutory provisions.
287
Governance
Board Nomination Committee Report
10.
11.
The Committee shall be chaired

by an Independent Director and
preferably be constituted with a
majority of Independent Directors.
The MD may be present at
meetings by invitations.
To make recommendations on
any other matter delegated by the
Board of Directors.
5HSRUWLQJWRWKH%RDUG
The Minutes of the Board Nomination
Committee meetings are tabled at Board
meetings enabling all Board members to
have access to them.
3URIHVVLRQDO$GYLFH
under its purview.
3HUIRUPDQFH
The members of the Board Nomination
Committee work closely with the Board
of Directors, in reviewing the structure
and skills needed for a steadfast, strong
and successful organisation. Further,
the Committee also reviews its own
performance, constitution and terms of
reference to ensure that it is operating
effectively, and if required recommends
necessary changes.
Over the last year, the Board Nomination
Committee has continued focusing on
a progressive organisational plan in
keeping with the forward and evolutionary
momentum of the Sri Lankan Banking
industry.
288
On behalf of the Board Nomination

Committee
Annika Senanayake
Chairperson - Board Nomination
Committee
Colombo, Sri Lanka
16th February 2016
Board
Integrated Risk
Management
Committee
Report
The Board Integrated Risk Management
Committee (BIRMC) has been established
on 27th March 2008 as a sub-committee
of the Board of Directors in compliance
with the Banking Act Direction No. 11
of 2007 on Corporate Governance for
Licensed Commercial Banks in Sri Lanka.
0HHWLQJV
BIRMC held 9 meetings during the year
2015. The attendance of the Committee
given in the table on page 238 of this
Report.
The Minutes of the BIRMC were recorded
by the Company Secretary and circulated
among the members of the Committee.
Key Management Personnel supervising
the Credit, Market, Liquidity, Operational,
Strategic and Reputational Risks also
attended meetings of the BIRMC, by
invitation.
A review of the Integrated Risk
Management process of the Bank has
been detailed in pages 202 to 227 of this
Report.
7HUPVRI5HIHUHQFH
The responsibilities of the Board
as mandated by the Board of Directors
are as follows:
1.
Review and update Risk
Management policies of the
Bank pertaining to Credit,
Market, Liquidity, Operational,
Outsourcing and Reputational
Risks, Compliance Risks, Business
Continuity Plan and Disaster
Recovery plan.
2.
Ensure effective design and
implementation of a Risk
Management Framework with
respect to Integrated Risk
Management, Risk Appetite,
Assessment Process (ICAAP) and
Stress Testing.
3.
Review migration to the advanced
approaches under Basel II,
9PZR9L[\YUWYVSLVM[OL)HUR
outsourcing activities, compliance
with CBSL guidelines pertaining
to Credit, Market and Operational
Risk Management Systems.
4.
Review the level and direction of
major Risks pertaining to Credit,
Market, Liquidity, Operational,
Compliance and Capital at Risk as
WHY[VM9PZRWYVSL[LTWSH[LZ
5.
6.
Report and recommend to Board

of Directors on Risk Management
and Compliance related matters.
Ensure compliance with all laws
and regulations.
*RYHUQDQFH
The governance structure for the
management of Risk at the Bank, is set
out on page 203.
)YPLMWYVSLZVM[OL+PYLJ[VYZYLWYLZLU[PUN
the Committee are given on pages 8 to
17 of the Annual Report. The Company
Secretary functions as the Secretary to
the Board Integrated Risk Management
Committee.
The Committee received periodic reports
on the Banks performance against
Key Risk Indicators from the Risk and
Compliance Units. The reports and the
relevant background information have
been reviewed in depth, and necessary
Risk Mitigation measures have been
initiated where necessary, in order to
maintain the Banks exposure to Risk
within its Risk Appetite and to facilitate
compliance with regulatory requirements,
while facilitating achievement of sound
Business Results.
The BIRMC is supported by the
Integrated Risk Management and
Compliance Units of the Bank, headed by
[OL.YV\W9PZR6MJLYHUK[OL/LHKVM
Compliance respectively, in discharging
its responsibilities.
5LVN$SSHWLWH
The Risk Appetite of the Bank in all key
risk areas, namely, Credit Risk, Market
Risk, and Operational Risk have been
KLULKHUKHWWYV]LKI`[OL)VHYKVM
Directors on the recommendation of
the BIRMC. Regular reports have been
provided to the Committee on the actual
WLYMVYTHUJLVMPKLU[PLKYPZRHYLHZ
289
Governance
Committee Report
3HUIRUPDQFH
The BIRMC undertook the following
activities in discharging its responsibilities
during the year.

5LVN0DQDJHPHQW3ROLFLHV
Policies related to Risk Management and
Compliance areas were reviewed during
the year, and amendments as appropriate
have been incorporated.

5LVN$SSHWLWH
Risk Appetite limits and Key Risk
Indicators for all key risk areas were set
and periodically monitored.
Authority
Membership
Board of Directors (BOD)
All members of the Board
Responsibilities

(BIRMC)
Determine risk appetite.

,UZ\YL[OH[ZPNUPJHU[YPZRZHYL
competently managed.

(Chairperson)
Independent, Non Executive Director
As above
Non Executive Director
Independent, Senior Non Executive Director
As above

Independent, Non Executive Director
As above
Mr Aravinda Perera
Executive Director/Managing Director
As above
,_LJ\[P]L+PYLJ[VY.YV\W*OPLM-PUHUJPHS6MJLY
As above
Mr Priam Kasturiratna
.YV\W9PZR6MJLY
As above
Mrs Anuja Goonetilleke

.YV\W*VTWSPHUJL6MJLY\W[V
As above
Mr Lasantha Senaratne
/LHKVM*VTWSPHUJL:PUJL
As above
As above

Unit
.YV\W9PZR6MJLY
Formulate the policy framework

addressing multiple and interdependent risks and recommend
such policies to Board Integrated Risk
Management Committee.
Measure and monitor risk.
Ensure benchmarking with
international best practices.
Compliance Unit
Head of Compliance
Formulate compliance related policy

framework and recommend to BIRMC.
Ensure compliance with regulatory
and supervisory requirements.
Ensure benchmarking with
international best practices.
290

6WUHVV7HVWLQJ
The overall Stress Testing Framework was
reviewed during the year and the results
of the tests were monitored. Necessary
recommendations to improve the Banks
Stress tolerance levels were discussed
and implemented as required.

3URJUHVVRQ%DVHO,,
&RPSOLDQFH
Progress on the implementation of key
components of Basel II against targets
set was reviewed and monitored to
ensure that the Bank is able to meet the
timelines set by the Central Bank of Sri
Lanka.

,76\VWHPV6XSSRUW
The implementation of IT Systems to
support Credit and Operational Risk
Management in the Bank was monitored,
and recommendations were made to
LUOHUJLLMJPLUJ`[VYLK\JLHUKH]VPK
risks.

,QWHUQDO&DSLWDO$GHTXDF\
$VVHVVPHQW3URFHVV,&$$3
ICAAP document for both the Bank and
the Group was developed for 2013 year
end position, and was reviewed and
approved by the BIRMC and the Board.
The document was forwarded to the
Regulator in 2014.

&RPSOLDQFH
The Committee received compliance
reports from the Head of Compliance
and reviewed same to assess the
extent of compliance with the regulatory
requirements.

,QWHUQDO&RQWUROV
Internal loss event reports and the
adequacy of internal control and
procedures (except Internal Controls
Over Financial Reporting) were reviewed
regularly and recommendations for
improvements were made. Progress on
implementation of recommendations was
also monitored.

&XVWRPHU&RPSODLQWV
The implementation of the Customer
Complaints Policy was monitored.
2XWVRXUFHG$FWLYLWLHV
The implementation of the Outsourcing
Policy was monitored to ensure
compliance with CBSL directives and
guidelines.
5HSRUWLQJWRWKH%RDUG
Minutes were submitted to the Board for
JVUYTH[PVUHUKHKVW[PVUHZHUHJJ\YH[L
record of its proceedings.
On behalf of the Board Integrated Risk
Dhara Wijayatilake
Chairperson - Board Integrated Risk
Colombo, Sri Lanka
16th February 2016
291
Governance
Board
Related Party
Transactions
Review
Committee
Report
G4-41
2.
3.
3ROLFLHV 3URFHGXUHV$GRSWHG
E\WKH%5375&IRU5HYLHZLQJ
5HODWHG3DUW\7UDQVDFWLRQV537V
1.

&RPSRVLWLRQRIWKH%RDUG5HODWHG
3DUW\7UDQVDFWLRQV5HYLHZ
&RPPLWWHH
The Board established the Board Related
Party Transactions Review Committee
(BRPTRC) with effect from 30th July 2015
in terms of the Code of Best Practice
on Related Party Transactions issued by
the Securities & Exchange Commission
of Sri Lanka (the Code) and Section
9 of the Listing Rules of the Colombo
Stock Exchange (the Rules). The
establishment of a BRPTRC with effect
from 1st January 2016 is mandatory in
terms of the Code. The Board Related
Party Transactions Review Committee
and 1 Executive Director. The following
Directors serve on the Committee.
Mrs Dhara Wijayatilake Chairperson
- (IND/NED)
- (IND/NED)
- (IND/NED)
- (ED)
(IND - Independent Director, NED - Non

Executive Director and ED - Executive Director)
292
The above composition is in compliance

with the provisions of the Code regarding
the composition of the Board Related
Party Transactions Review Committee.
The Company Secretary functions as
the Secretary to the Board Related Party
Transactions Review Committee.
0HHWLQJV
During 2015 the committee held 3
meetings. Attendance by the Committee
given in the table on page 238 of the
Annual Report.
The mandate of the Committee is
derived from the Code and the Rules and
PUJS\KLZ[OLMVSSV^PUN"
1.
Developing a Related Party
Transaction Policy consistent with
the provisions of the Code and the
Rules for adoption by the Board of
Directors of the Bank and its listed
subsidiaries.
Reviewing in advance all proposed

Related Party Transactions (RPTs)
in compliance with the provisions
of the Code.
Advising the Boards on making
Immediate Market Disclosures
and Disclosures in the Annual
Report where necessary, in respect
of RPTs, in compliance with the
provisions of the Code and the
Rules.
3.
4.
5.
6.
7.
Relevant information to capture

RPTs is fed into the Banks data
collection system.
(SSVMJLYZJVUJLYULKHYLPUMVYTLK
of the applicable regulatory
requirements relating to the
reporting of RPTs.
(KMPs) and their Close Family
4LTILYZ*-4ZHYLPKLU[PLK
quarterly together with their NIC
numbers and business registration
numbers. This information is in the
system.
Systems are updated with KMP
and their CFM details on a
quarterly basis or as and when
the need arises in the event of a
material change.
Data is extracted from the system,
]LYPLKHUK]HSPKH[LK
All Managers are advised to report
RPTs to the Company Secretary
ÔVOHZILLUPKLU[PLKHZ[OL
Focal Point, for this purpose.
Data is shared with the Company
Secretary to meet the regulatory
requirements if required
5HYLHZ)XQFWLRQRIWKH&RPPLWWHH
Review of the relevant related party
transactions was done commencing
29th September 2015. Further it has
communicated its observations to the
Board on the RPTs published in the Note
49 to the Financial Statements.
5HSRUWLQJWRWKH%RDUG
The Minutes of the BRPTRC meetings
are tabled at Board meetings enabling all
Board members to have access to same.
On behalf of the Board Related Party
Transactions Review Committee
Dhara Wijayatilake
Chairperson - Board Related Party
Colombo, Sri Lanka
16th February 2016
293
Governance
Board Credit
Committee
Report
&RPSRVLWLRQRIWKH%RDUG&UHGLW
&RPPLWWHH
The Credit Committee was established
on 9th December 1987 and was re-titled
as Board Credit Committee on 22nd
October 2008 and Prof Malik Ranasinghe
(Independent Non Executive Director)
was appointed as the Chairman of the
Committee w.e.f. 30th January 2012. This
Directors and 2 Executive Director. The
Directors who serve on the Committee
are:
- Chairman
- (IND/NED)
- (NID/NED)
Mr Deshal De Mel
Mr Aravinda Perera
- (IND/NED)
- (IND/NED)
- (NID/NED)
- (ED)
- (ED)
as the Secretary to the Board Credit
Committee.
7HUPVRI5HIHUHQFH
The Charter of the Board Credit
*VTTP[[LLJSLHYS`KLULZ[OL[LYTZHUK
reference of the Committee. The Board
periodically reviews the Committee
Charter as and when required. The
Committee is responsible to the Board
of Directors and reports on its activities
regularly. The Board Credit Committee
also assists the Board in its general over
sight of recommending Credit Policy
of the Bank, reviewing single borrower
limits and recommending Credit Policy
changes.
Maintain adequate controls over

credit risk
Monitor capital allocation and
KLULSPTP[ZPUSPUL^P[O[OLYPZR
appetite.
Ensure credit risk exposure is
kept within acceptable limits to
maximise the Banks risk adjusted
rate of return.
Ensure stress tests are conducted,
where deemed appropriate.
3.
Maintain appropriate credit

administration, measuring and
monitoring process
Review credit approval framework
and assign credit delegated limits
in line with the Banks policy.
Review and recommend to the
Board, facilities that they believe
should have Board approval.

0KLU[PJH[PVUHUKHKTPUPZ[YH[PVUVM
problem credits
Monitor on an ongoing basis
the Banks credit quality, review
periodic credit portfolio reports and
assess portfolio performance.
Ensure post-credit monitoring
and postmortem reviews are
performed, where deemed
appropriate.
The purpose of the Committee is to

oversee the credit and lending strategies
and objectives of the Bank. This includes:
(i) Overseeing the credit management
of the Bank, including reviewing internal
credit policies and establishing portfolio
limits.
(ii) Reviewing the quality and performance
of the Banks credit portfolio. In addition,
the Committee is responsible for any
other matters delegated to it by the
Board. Hence, it is the responsibility of
the Committee to:
During the year the Committee met on

17 occasions. The attendance of the
Committee members is stated in the
Corporate Governance Report on page
238 of the Annual Report. Members of
the senior management of the Bank are
invited to participate at the meetings as
and when required.
294
2.
1.
0HHWLQJV
Review credit policy changes

initiated by the management of
the Bank and recommend them
^P[OVY^P[OV\[TVKPJH[PVUZ[V[OL
Board of Directors for its approval.
Ensure compliance by the Banks
credit policies with the statutory
requirements prescribed by the
regulatory/supervisory authorities.
Request rapid portfolio reviews
or sector/industry reviews, where
deemed appropriate.
Operate a sound credit granting

process
Review and approve credit
proposals in accordance with
Board approved credit policies
and standards. Where required,
submit credit requests beyond the
Committees scope to the Board
for a decision.
5.
Aware of the cyclical aspects of

the economy (both internal and
external)
Monitor the resulting shifts in the
composition and quality of the loan
portfolio.
6.
Proper evaluation of new business

opportunities
Ensure all new credit risk
related products are reviewed
from a credit risk management
perspective.
5HSRUWLQJWRWKH%RDUG
The minutes of the meetings of the
Committee are circulated to the members
I`[OL:LJYL[HY`HUK[OLJVUYTLK
minutes are reported to the Board of
+PYLJ[VYZMVYJVUJ\YYLUJL;OLJVUYTLK
minutes are available for review by any
regulatory agency having jurisdiction over
the affairs of the Bank.
5HYLHZRIWKH&RPPLWWHH
Members of the Committee work closely
with the Board of Directors to maintain
proper credit standards for the Bank.
The Board undertakes a review of the
Committees performance, objectives and
responsibilities according to its terms of
reference to ensure that it is operating
effectively.
On behalf of the Board Credit Committee
Malik Ranasinghe
Chairman Board Credit Committee
Colombo, Sri Lanka
16th February 2016
295
Governance
Board Strategic
Planning
Committee
Report
6WUDWHJLF3ODQQLQJ&RPPLWWHH
At the Board meeting held on 30th
January 1997, it was decided to form
a Strategic Planning Committee. The
Directors and 2 Executive Directors. The
Chairman of the Committee is a Non
Executive Director. The following Directors
serve in the Board Strategic Planning
Committee.
Mr Dhammika Perera
- Chairman
- (NID/NED)
- (NID/NED)
Mr Deshal De Mel
Mr Ranil Pathirana
(appointed w.e.f. 28th May 2015)
Mr Aravinda Perera
7HUPV2I5HIHUHQFH
The Charter of the Board Strategic
7SHUUPUN*VTTP[[LLJSLHYS`KLULZ[OL
terms and reference of the Committee.
The Board periodically reviews the
Committee Charter as and when
required. The Committee is responsible
to the Board of Directors and reports on
its activities regularly. The Board Strategic
Planning Committee also assists the
Board in its general oversight of setting
Strategic Direction, Budgeting and
Monitoring.
1.
- (IND/NED)
- (IND/NED)
- (NID/NED)
- (IND/NED)
- (IND/NED)
2.
- (IND/NED)
- (ED)
- (ED)
as the Secretary to the Board Strategic
Planning Committee.
3.
4.
5.
0HHWLQJV
During the year the Committee met on
6 occasions and the attendance of the
238 of the Annual Report.
296
6.
7.
Strategic Vision and Mission of the

Bank: Examine the Banks current
mission, strategic positioning and
the strategic vision and provide
guidelines to the Banks Strategic
Planning process.
Review the impact of external
trends and issues: Examine
the external challenges and
opportunities relevant to the
strategic vision and key goals of
the Bank.
Review the internal strengths and
weaknesses of the Bank and give
guidelines to the Management.
Oversee and monitor the planning
process that leads to the
formulation of the Strategic Plan.
Examine the effectiveness of key
strategies for achieving agreed
goals and objectives.
Review the Banks resources
and capabilities in the context of
achieving its strategic objectives.
Review the adequacy and
G4-42
8.
composition of the Banks capital

structure in the context of the
growth targets.
Make recommendations to the
Board on key strategic decisions
and investments.
5HSRUWLQJWRWKH%RDUG
Minutes of the Committee meetings are
circulated to the Committee members by
[OL:LJYL[HY`HUK[OLJVUYTLKTPU\[LZ
are reported to the Board of Directors
YLN\SHYS`MVYJVUJ\YYLUJL;OLJVUYTLK
minutes are available for review by any
regulatory agency having jurisdiction over
the affairs of the Bank.
3HUIRUPDQFH
The Committee engaged in discussions
with the Corporate Management and
Strategic Planning Team to determine
the strategic direction of the Bank for the
period 2016 to 2019 and this formed the
basis for the development of the Strategic
Plan for this period. The Committee
reviewed performance of the Bank during
the year against the three year rolling plan
and annual budget for 2016 to identify
areas of concern which needed changes
in strategic direction. The three year
rolling plan was submitted to the Board of
Directors for its information and approval
was obtained for the annual budget for
2016 which was developed in line with
the strategy document.
The Committee reviews its own
performance, constitution and scope
of work to ensure that it is operating
ZTVV[OS`HUKLMJPLU[S`0[ZZJVWLHSZV
extends to making recommendations to
the Board when the need arises.
On behalf of the Board Strategic Planning
Committee
Dhammika Perera
Chairman Board Strategic Planning
Committee
Colombo, Sri Lanka
16th February 2016
Board
Shareholder
Relations
Committee
Report
Our shareholders have always been a
monumental strength to us and it is their
continued patronage that has been the
basis on which we have built our banking
legacy. At Sampath Bank, shareholder
value creation means so much more than
the mere obligatory response, indeed it
is a non-negotiable item on the business
agenda.
:HTWH[O)HURPZ[OLYZ[SPZ[LK*VTWHU`
in Sri Lanka to setup a Board Shareholder
Relations Committee to identify and
address shareholders concerns.
Shareholders voice their opinions and
suggestions as deemed appropriate
to improve the relations between
shareholders/investors and the Bank. It is
a vital Board Sub Committee to facilitate
a smooth and continuous dialogue
between the Board and the shareholders.
The Committee concentrates on
developing and preserving a good
rapport with the shareholders.
6KDUHKROGHU5HODWLRQV&RPPLWWHH
Pursuant to the Board meeting held on
28th August 2008 Bank Shareholders
Relations Committee comprising 2 Non
Executive Directors was established. The
2.
3.
4.
$FWLYLWLHVRIWKH&RPPLWWHH
Executive Directors join the meetings on

invitation when necessary. The following
Directors serve on the Board Shareholder
Relations Committee.
- Chairman
(appointed w.e.f. 16.02.2016)
- (IND/NED)
Mr Deshal De Mel
- (NID/NED)
- Chairman
- (NID/NED)
(NID - Non Independent Director, NED - Non
Executive Director)
The Company Secretary functions as
the Secretary to the Board Shareholder
Relations Committee. Mr W M P L de
Alwis, a former Director acts as advisor to
the Committee.
0HHWLQJV
Meetings are held when deemed
appropriate.
1.
Organising forums that encourage

dialogue between the Board
of Directors and Shareholders/
Investors.
Perform such other functions as
expressly delegated to it from time
to time by the Board relating to
shareholder relations matters.
Providing guidance to the Board
on matters of investor relations.
Providing suggestions to the Board

to improve Shareholder/Investor
relations of the Bank.
This is an advisory and consultative

Committee that, when necessary,
considers proposals of shareholders on
improvement of the Banks corporate
governance, as well as requirements
and needs of shareholders. It provides
recommendations to the Banks Board
on enforcement and protection of
rights and legitimate interests of the
Banks shareholders. The Committee
contributes to clarify the Banks policy
and development strategy on shareholder
relations matters.
The Committee ensures that the Banks
SH[LZ[PUMVYTH[PVUHUKUHUJPHSYLZ\S[ZHYL
swiftly communicated to the shareholders
through Interim and Annual Reports,
UV[PJH[PVUZ[V[OL*VSVTIV:[VJR
Exchange and timely press releases. In
addition to these avenues of information,
our shareholders have easy access
through our corporate website,
www.sampath.lk to all relevant
information, which also gives our
shareholders access to the Bank for any
query. Shareholders can freely raise any
questions to the Board of Directors at
the Shareholder Relations Forums. These
forums also encourage our shareholders
to openly voice concerns and make
suggestions and requests.
Shareholders have been afforded further
access to the Chairman or any Director
VM:HTWH[O)HUR"[OL`JHUL_WYLZZ
297
Governance
Board Shareholder Relations
Committee Report
any concern or view regarding the Bank

through written communication as well.
50% on the annual fee charged for

VISA credit cards will be waived
off.
On opening of current accounts,
the initial deposit will be 50% of the
usual initial deposit requirement.
SET cards are issued free of
charge. However, this does not
include the per transaction fee.
The Committee supports shareholders to

enhance their investment attractiveness.
The Committees activities aim at
protecting the Banks shareholders rights
and interests.
Two-way dialogue between the
shareholders and the Board of Directors
has taken place this year too. The
Company Secretary has kept the Board
of Directors informed of shareholder
outlook through regular reports.
Shareholders can also write to the
Chairman or any Director of Sampath
Bank, they can express any concern
or view regarding the Bank which gives
another avenue to the shareholders to
express their opinion in person.
3HUIRUPDQFH
The Committee meets as and when
necessary and reports on its activities to
the Board. Shareholders Forum was held
soon after the Annual General Meeting on
31st March 2015.
1.
298
5HSRUWLQJWRWKH%RDUG
The Minutes of the Shareholder Relations
On behalf of the Shareholder Relations
Committee
Malik Ranasinghe
Chairman - Board Shareholder Relations
Committee
Colombo, Sri Lanka
16th February 2016
The following concessions are

given to shareholders on banking
transactions.
All commissions to be on actual
cost basis, waiving off all internal
commission charges. However,
in the case of foreign bank
charges and other local bank
charges, the actual cost will be
collected. This excludes cheque
return commissions and postage
charges.
Board Treasury
Committee
Report
&RPSRVLWLRQRIWKH%RDUG7UHDVXU\
&RPPLWWHH
The Board Treasury Committee which
was established on 31st May 2012
comprises 3 Non Executive Directors
and 2 Executive Directors. The following
Directors serve in the Board Treasury
Committee.
- Chairman
Mr Deshal De Mel
Mr Aravinda Perera
- (IND/NED)
- (IND/NED)
- (NID/NED)
- (ED)
- (ED)
pages 8 to 17 of the Annual Report.
Mr Manjula Ekanayake of the Banks
Treasury Department serves as the
Secretary to the Board Treasury
Committee.
0HHWLQJV
During the year, the Committee met
on 5 occasions. The attendance of the
VM[OL(UU\HS9LWVY[6[OLYVMJPHSZ
of the Bank too were invited to attend as
deemed necessary.
The Board Treasury Committee is
instituted to provide guidance to the
Treasury in carrying out its functions and
to monitor its performance with a view to
optimising earnings, stability and growth
of the Bank.
The main responsibilities of the committee

are:
1.
Establish Treasury Management
policies on behalf of the Board of
Directors.
2.
Ensure Treasury Dealing Room
operations are carried out in
accordance with those policies.
3.
Monitor the liquidity position of
the Bank and advise Treasury
accordingly.
4.
Monitor the management of
Foreign Exchange and Interest rate
Risks by the Bank.
5.
Monitor compliance with Central
Bank regulations managed by
the Treasury including capital
adequacy, statutory reserve ratios,
and statutory liquid assets.
6.
Provide guidance to the Asset and
Liability Management Committee
(ALCO), consisting of Corporate
Management, to optimise
performance.
7.
Establish internal pricing of funds
to provide desired incentives
internally and better evaluate
performance of business units.
8.
Development of new treasury
related products.
Exchange market during the latter part

of the year posed challenges in meeting
the requirements of customers and the
)HUR/V^L]LY[OL;YLHZ\Y`WYV[HIS`
managed Foreign Exchange Risks in
these volatile market conditions, further
exacerbated by increasing economic and
policy uncertainties arising local political
events as well as external developments.
4\JOOLHK^H`^HZTHKLPUYLUPUN
a comprehensive model for analysis of
the Banks revenue by products and
customers, which will be used to guide
future asset growth.
5HSRUWLQJWRWKH%RDUG
Minutes of the Board Treasury Committee
were regularly reported to the Board of
Directors and approval sought for policies
recommended and other matters.
On behalf of the Board Treasury
Committee
Sanjiva Senanayake
Chairman - Board Treasury Committee
Colombo, Sri Lanka
16th February 2016
During 2015 efforts were focused on

responses the Treasury had to implement
to adjust to the lower Sri Lankan Rupee
interest rate environment and managing
the excess liquidity that the Bank
experienced along with most banks. In
addition, the decline of the Sri Lankan
Rupee and illiquidity in the Foreign
299
Governance
Board
Marketing
Committee
Report
0DUNHWLQJ&RPPLWWHH
The Board Marketing Committee was
set up with effective from 28th June
2012 to have a closer focus on the
Marketing Strategies of the Bank and to
monitor their effectiveness. The Board
Marketing Committee comprises of 4 Non
Executive Directors. The members of the
Committee are given below.
- Chairman
Mr Deshal De Mel
- (IND/NED)
- (IND/NED)
- (NID/NED)
- (NID/NED)
The Managing Director (MD) attends

meetings by invitation.
as the Secretary to the Board Marketing
Committee.
0HHWLQJV
The Committee met on 2 occasions
during the year. Attendance by the
Committee members at each of these
meetings is given in the table on page
238 of the Annual Report.
300
The Key Terms of Reference of the

*VTTP[[LLHYL[V"
Review the customer strategy
and performance against set
objectives.
Review Brand strategy and its
performance.
Monitor customer service and
customer service strategies in line
with the customer charter.
Monitor the CSR policy of the Bank
and progress of same.
The committee functions more as a
facilitating and a guiding body to the
management in an effort to strongly align
the activities of the marketing function
towards the strategic focus of the Bank,
following best practices. The Board
Marketing Committee acts as a conduit
to the main Board in providing updates
on various consumer behaviour trends
and their implications to the Bank.
During the year Committee provided
oversight for the following:
Establishment of a regular brand
equity tracking process.
Commencement of a
comprehensive brand identity
management process.
Formulation of an e-commerce
strategy.
5HSRUWLQJWRWKH%RDUG
The Minutes of the Board Marketing
On behalf of the Board Marketing
Committee
Deepal Sooriyaarachchi
Chairman - Board Marketing Committee
Colombo, Sri Lanka
16th February 2016
By serving our
stakeholders
well we serve
our nation well...
Financial Statements
Financial Calendar
Annual Report of the Board of Directors on the Affairs of the Company
Directors Statement on Internal Control Over Financial Reporting
Independent Assurance Report to the Board of Directors of Sampath Bank PLC
4HUHNPUN+PYLJ[VYZHUK.YV\W*OPLM-PUHUJPHS6MJLYZ9LZWVUZPIPSP[`:[H[LTLU[
:[H[LTLU[VM+PYLJ[VYZ9LZWVUZPIPSP[`MVY-PUHUJPHS9LWVY[PUN
Independent Auditors Report to the Shareholders of Sampath Bank PLC
:[H[LTLU[VM7YV[VY3VZZ
Statement of Comprehensive Income
Statement of Financial Position
Statement of Cash Flow
Statement of Changes in Equity
Notes to the Financial Statements
301
Financial Calendar
Financial Calendar - 2015
2014 Annual Report and Audited Financial Statements signed on
29th Annual General Meeting held on
Rs 5.00 per share Cash Dividend for 2014 paid on
Rs 6.00 per share Scrip Dividend for 2014 paid on
2015 Annual Report and Audited Financial Statements signed on
30th Annual General Meeting to be held on
Rs 6.00 per share Cash Dividend for 2015 payable in
Rs 7.00 per share Scrip Dividend for 2015 payable in
19th February 2015

31st March 2015
9th April 2015
9th April 2015
16th February 2016
31st March 2016
11th April 2016*
11th April 2016*
Interim Financial Statements published in terms of Rule 8.3 of the Colombo Stock Exchange (CSE) and as per the requirements of the
Central Bank of Sri Lanka:
Colombo Stock
2014 4th Quarter interim results released on

2015 1st Quarter interim results released on
2015 2nd Quarter interim results released on
2015 3rd Quarter interim results released on
News Papers (as required by CBSL)
Exchange
English
Sinhala
Tamil
20th February 2015

15th May 2015
14th August 2015
13th November 2015
27th February 2015

22nd May 2015
21st August 2015
20th November 2015
4th March 2015

27th May 2015
24th August 2015
20th November 2015
4th March 2015

27th May 2015
24th August 2015
20th November 2015
Proposed Financial Calendar - 2016

2016 Annual Report and Audited Financial Statements to be signed in
31st Annual General Meeting to be held in
Dividend for 2016 to be payable in
February 2017
March 2017
April 2017**
Interim Financial Statements to be published in terms of Rule 8.3 of the Colombo Stock Exchange and as per the requirements of the
Central Bank of Sri Lanka:
Colombo Stock
2015 4th Quarter interim results to be

released on or before
1st Quarter interim results to be
2nd Quarter interim results to be
3rd Quarter interim results to be
4th Quarter interim results to be
Exchange
English
Sinhala
Tamil
29th February 2016
31st March 2016
31st March 2016
31st March 2016
13th May 2016
31st May 2016
31st May 2016
31st May 2016
15th August 2016
31st August 2016
31st August 2016
31st August 2016
15th November 2016 30th November 2016 30th November 2016 30th November 2016
28th February 2017
:\IQLJ[[VJVUYTH[PVUI`:OHYLOVSKLYZ
:\IQLJ[[VJVUYTH[PVUI`+PYLJ[VYZHUK:OHYLOVSKLYZ
302
News Papers (as required by CBSL)
31st March 2017
31st March 2017
31st March 2017
Annual Report of the Board of Directors on the

Affairs of the Company
1.
General
The Board of Directors of Sampath Bank

PLC has pleasure in presenting their
Annual Report on the State of Affairs
of the Company to the members of
:HTWH[O)HUR73*MVY[OLUHUJPHS`LHY
ended 31st December 2015, together
with the audited Financial Statements
of the Bank, Consolidated Financial
Statements of the Group for that year
and the Auditors Report on those
Financial Statements, conforming to the
requirements of the Companies Act No
7 of 2007 and the Banking Act No 30
of 1988. The Financial Statements were
reviewed and approved by the Board of
Directors on 16th February 2016.
This report includes the information
required by the Companies Act No 7
of 2007, Banking Act Direction No 11
of 2007 on Corporate Governance
for Licensed Commercial Banks and
subsequent amendments thereto, Listing
Rules of the Colombo Stock Exchange
and is also guided by the recommended
best practices on Corporate Governance.
Sampath Bank PLC (the Bank) is a
Licensed Commercial Bank registered
under the Banking Act No 30 of 1988
(Banking Act) and was incorporated
as a public limited liability company in
Sri Lanka on 10th March 1986 under
the Companies Act No 17 of 1982. The
Company was re-registered as per the
requirements of the Companies Act No
7 of 2007 (Companies Act) on 28th
April 2008 under the name Sampath
Bank PLC with the Registrar General of
Companies. The re-registration number of
the Bank is PQ 144.
The ordinary shares of the Bank are
listed on the main board of the Colombo
Stock Exchange in Sri Lanka. The Banks
unsecured subordinated redeemable
debentures are also listed on the
-P[JO9H[PUN3HURHOHZHMYTLK)HURZ
National Long Term rating at A+(lka)
with a Stable Outlook and subordinated

debentures at A(lka).
;OL9LNPZ[LYLK6MJLHZ^LSSHZ[OL/LHK
6MJLVM[OL)HURPZSVJH[LKH[5V
Sir James Peiris Mawatha, Colombo 02,
Sri Lanka.
2.
Vision, Values and

Corporate Conduct
The Banks Vision and Values are given

in page 52 of the Annual Report. The
business activities of the Bank are
conducted at a high level of ethical
standard in achieving its Vision.
3.
4.
Changes to the Group

Structure
The Bank invested a further sum of Rs

20 Mn in the equity of its fully owned
Subsidiary, Sampath Information
Technology Solutions Ltd, during the
year increasing its total investment in
that company from Rs 9 Mn to Rs 29
Mn. Other than the above there were no
changes made to the Group structure
during the year under review.
5. Review of Operations
Principal Business
Activities
The principal business activities of the

Bank and the Group during the year are
given below as required by the Section
168 (1) (a) of the Companies Act.
3.1 Bank
The principal activities of the Bank
include accepting deposits, corporate
HUKYL[HPSIHURPUNWYVQLJ[UHUJPUN
[YHKLUHUJPUN[YLHZ\Y`HUKPU]LZ[TLU[
services, issuing of local and international
credit and debit cards, off-shore banking,
resident and non-resident foreign
currency operations, electronic banking
services: such as telephone banking,
internet banking, mobile banking,
payment gateway, money remittance
facilities etc, pawning, leasing, factoring,
travel related services and dealing in
Government Securities.
3.2 Subsidiaries
The Bank has four Subsidiaries as at
31st December 2015. Names of the
Subsidiaries and their principal business
activities are as tabulated below:
(YL]PL^VM[OLUHUJPHSHUKVWLYH[PVUHS
performance of the Bank and the Group
together with important events that took
place during the year 2015 as required by
the Section 168 (1) (a) of the Companies
Act are contained in the Chairmans
Message (pages 44 & 45), the Managing
Directors Review (pages 46 to 51), and
the Operational Reviews (pages 63 to
142). These reports form an integral part
of the Annual Report of the Board of
Directors.
6.
Future Developments
[Section 168 (1) (a)]
The Bank focuses on a business

expansion drive through the existing
Branch Network, concentrating mainly on
its core banking operations to increase
P[ZTHYRL[ZOHYLHUKWYV[HIPSP[`;OPZ
will be further supplemented by a more
vigorous drive on innovative product
development, process improvements
HUKZ[HMMKL]LSVWTLU[HPTLKH[M\SSSPUN
the rapidly changing customer needs in
the challenging market conditions and
maximizing the value that we create for
all the stakeholders. 5 new branches
Entity
Principal Business Activities

Sampath Centre Ltd
S C Securities (Pvt) Ltd
Solutions Ltd
Leasing, factoring, pawning & accepting deposits

Renting of commercial property
Stock broking
Developing software solutions
and maintenance of hardware
Annual Report 2015 SAMPATH BANK PLC
303

were opened during the year and a
9LWYLZLU[H[P]LVMJLVM[OL)HUR^HZ
opened on 7th October 2015 in Yangon,
Myanmar with a view to establishing
Banks regional presence. Further as
required under Section 168 (1) (a) of the
Companies Act, an overview of the future
development of the Bank and the Group
is given in the Chairmans Message
(pages 44 & 45), the Managing Directors
Review (pages 46 to 51), Operational
Reviews (pages 63 to 142). These reports
form an integral part of the Annual Report
of the Board of Directors.
7.
Financial Statements
The Financial Statements of the Group

and the Bank have been prepared
in accordance with the Sri Lanka
Accounting Standards (SLFRSs & LKASs)
laid down by the Institute of Chartered
Accountants of Sri Lanka, and comply
with the requirements of the Companies
Act No 7 of 2007 and the Banking Act
No 30 of 1988. The aforementioned
Financial Statements for the year ended
31st December 2015 duly signed by
[OL.YV\W*OPLM-PUHUJPHS6MJLY[OYLL
Directors of the Bank and the Company
Secretary are given on pages 320 to 452
which form an integral part of this Annual
Report of the Board of Directors (as per
the Section 168 (1) (b) of the Companies
Act).
8.
Financial Statements appearing on

pages 320 to 452 have been prepared
in conformity with the requirements of
the Sri Lanka Accounting Standards,
Companies Act, Sri Lanka Accounting
and Auditing Standards Act No 15 of
1995, the Banking Act and amendments
thereto, the Listing Rules of the Colombo
Stock Exchange and the Corporate
Governance Code for Licensed
Commercial Banks issued by the Central
Bank of Sri Lanka (CBSL). The Statement
of Directors Responsibility for Financial
Reporting is given on pages 317 & 318
and forms an integral part of the Annual
Report of the Board of Directors.
9.
Auditors Report
The Auditors of the Bank are Messrs

Ernst & Young, Chartered Accountants.
Messrs Ernst & Young carried out the
audit on the Financial Statements of
the Group and the Bank for the year
ended 31st December 2015 and their
report on those Financial Statements, as
required by the Section 168 (1) (c) of the
Companies Act is given on page 319.
6LJQLFDQW$FFRXQWLQJ
Policies
;OLZPNUPJHU[HJJV\U[PUNWVSPJPLZ
adopted in the preparation of the
Financial Statements are given on pages
327 to 452 which comply with Section
168 (1) (d) of the Companies Act.
11. Financial Results and

Appropriations
11.1 Income
The Income of the Group for 2015
was Rs 49,101,837,000/- (2014: Rs
46,394,406,000/-) while the Banks
income was Rs 47,031,516,000/- (2014:
Rs 44,597,081,000/-). An analysis of the
income is given in Note 6 to the Financial
Statements.
3URWDQG$SSURSULDWLRQV
The Group has recorded a growth in
WYV[ILMVYL[H_HUKWYV[HM[LY[H_
of 35.1% and 25.8% respectively in
;OL)HURZWYV[ILMVYL[H_
HUKWYV[HM[LY[H_MVY[OL`LHY[VV
recorded a growth of 35.3% and 24.8%
respectively over 2014. Groups Total
Comprehensive Income (net of tax) for
the year is Rs 6,319,668,000/- (2014:
Rs 4,177,895,000/-) while the Bank has
recorded a total comprehensive income
(net of tax) of Rs 5,825,708,000/- (2014:
Rs 3,826,566,000/). A detailed breakup
VM[OLWYV[Z HWWYVWYPH[PVUZVM[OL)HUR
is given below:
12. Taxation
Income tax rate applicable on the Banks
domestic operations and on-shore and
off-shore operations of the off-shore
Banking Centre is 28% (2014: 28%).
Directors Responsibility
for Financial Reporting
The Directors are responsible for the

preparation of Financial Statements
VM[OL.YV\WHUK[OL)HUR[VYLLJ[H
true and fair view of its state of affairs.
The Directors are of the view that these
7YV[MVY[OL`LHYHM[LYWH`TLU[VMHSSVWLYH[PUNL_WLUZLZ
and provision for depreciation and contingencies
Less: Taxation
5L[WYV[HM[LY[H_H[PVU
Other comprehensive income (OCI)
(J[\HYPHSNHPUZ SVZZLZVUKLULKILUL[WSHUZ
Deferred tax effect on above
Unappropriated balance brought forward from previous year
Less : Super Gain Tax
Balance available before appropriation / adjustments
304
2015
Rs 000
2014
Rs 000
9,100,873
(2,966,932)

6,726,507
(1,812,717)

(32,463)
6,217,418
3,182,746
(676,765)
8,723,399

216,390
4,357,359
2,500,411
6,857,770
2015
Rs 000
2014
Rs 000
Appropriations
Transfer to Statutory Reserve Fund
Transfer from Investment Fund Account
Transfer to General Reserve
(310,000)
(3,500,090)
(245,851)
2,439,494
(4,526,036)
Dividend
Final cash dividend paid - 2013 (Rs 8.00 per share)
Final cash dividend paid - 2014 (Rs 5.00 per share)
Final scrip dividend paid - 2014 (Rs 6.00 per share)
Unappropriated balance carried forward
(839,551)
(1,007,461)
3,066,297
(1,342,631)
3,182,746
Proposed dividend
Final cash dividend - 2015 (Rs 6.00 per share)
Final scrip dividend - 2015 (Rs 7.00 per share)
Final cash dividend - 2014 (Rs 5.00 per share)
Final scrip dividend - 2014 (Rs 6.00 per share)
1,033,876
1,206,188
-
839,551
1,007,461
The Bank is also liable for VAT and NBT

VUUHUJPHS]HS\LHKKP[PVUH[!
12%) and 2% (2014: 2%) respectively.
The Group has also provided deferred
taxation on all known temporary
differences under the liability method, as
permitted by the Sri Lanka Accounting
Standard - LKAS 12 (Income Taxes).
13. Dividend
;OL+PYLJ[VYZYLJVTTLUK[OH[HUHS
dividend of Rs 13.00 per share (2014: Rs
WLYZOHYLILWHPKMVY[OLUHUJPHS
year ended 31st December 2015. This
will be paid by Rs 6.00 in the form of
cash dividend and balance Rs 7.00 in the
form of scrip dividend (2014: Rs 5.00 in
the form of cash dividend and balance Rs
6.00 in the form of scrip dividend).
The dividend is subject to Shareholder
approval at the Annual General Meeting.
;OL)VHYKVM+PYLJ[VYZ^HZZH[PZLK
that the Bank would meet the solvency
[LZ[PTTLKPH[LS`HM[LY[OLUHSKP]PKLUK
proposed, which will be paid in April
2016 in terms of the Section 31 (3) of the
Companies Act. The Board provided the
Statement of Solvency to the Auditors

HUKVI[HPULK*LY[PJH[LVM:VS]LUJ`MYVT
the Auditors in respect of the dividend
payment conforming to the statutory
provision. With this dividend payment, the
)HURPZHSZVM\SSSPUN[OLKLLTLKKP]PKLUK
requirement according to the provisions
of Inland Revenue Act.
Further details are given in Note 17 to the
Financial Statements.
14. Reserves
A summary of the Groups Reserves is
given below:
15. Capital Expenditure

The total capital expenditure on
acquisition of property, plant and
equipment and intangible assets of the
Group and the Bank amounted to Rs
1,190,589,000/- and
Statutory Reserve Fund

Revaluation Reserve
Available for Sale Reserve
General Reserve
9L[HPULK7YV[
Total
Rs 884,374,000/- respectively (2014

Group: Rs 1,022,307,000/- and Bank: Rs
821,449,000/-). Details are given in Notes
32 and 33 to the Financial Statements.
16. Capital Commitments

The capital expenditure approved and
contracted for, as at the reporting date
is given in Note 47.2 to the Financial
Statements.
17. Property, Plant and

Equipment (PPE)
Details of property, plant and equipment
are given on Note 32 to the Financial
Statements.
18. Market Value of

Freehold Properties
All freehold land and buildings of the
Group and the Bank were revalued as at
30th November 2013 by professionally
X\HSPLKPUKLWLUKLU[]HS\LYZHUK
brought into the Financial Statements.
The Directors are of the opinion that the
revalued amounts are not in excess of the
current market values of such properties.
The details of freehold properties owned
by the Bank are given in Note 32.4 to the
19. Stated Capital,

Debentures and Bonds
19.1 Stated Capital
The Stated Capital of the Bank as
at 31st December 2015 amounted
to Rs 5,381,405,000/- consisting of
172,312,655 ordinary shares (2014:
Rs 4,470,151,000/- consisting of
167,910,253 ordinary shares).
2015
Rs 000
2014
Rs 000
1,860,058
4,202,261
875,723
22,165,001

33,727,131
1,530,831
4,202,261
1,267,433
18,665,001

30,041,193
305

The number of shares in issue of the
Bank increased from 167,910,253
ordinary shares to 172,312,655 ordinary
ZOHYLZHZHYLZ\S[VM[OLWH`TLU[VMUHS
Scrip Dividend for 2014.
The details of the shares issued are given
in Note 42.2 to the Financial Statements.
19.2 Debt Capital
The Bank had issued unsecured,
subordinated, redeemable debentures
to the value of Rs 20,500,000,000/as at 31st December 2015 (2014: Rs
13,500,000,000/-), which are listed in the
The details of the unsecured,
subordinated, redeemable debentures
outstanding as at 31st December 2015
are given in Note 38.1 to the Financial
Statements. These debentures are eligible
for the Tier II Capital of the Bank.
The Bank had issued a deep discounted
zero coupon bond with a maturity
value of Rs 3,458,108,968/- for 20
years. The present paid up value of this
bond is Rs 1,780,008,000/- (2014: Rs
1,630,747,000/-) and this forms part of
the Tier II Capital. The above Bond was
issued in August 2003 and will mature
in August 2023. The details are given in
Note 38.2 to the Financial Statements.
on pages 134,135 and 137 of the

Annual Report. Details of top twenty
shareholders, percentages of their
holdings and percentage holding of
the public too are given in the Investor
Information section on page 138.
22. Equitable Treatment to

Shareholders
The Bank has at all times ensured that all
shareholders are treated equitably.
23. The Board of Directors

The Board of Directors of the Bank
consists of eleven (2014: twelve)
+PYLJ[VYZ^P[O^PKLUHUJPHSHUK
commercial knowledge and experience.
The names of the Directors of the Bank
during the period 1st January 2015
to 31st December 2015 are given
below as per Section 168 (1) (h) of the
*VTWHUPLZ(J[;OLPYIYPLMWYVSLZHYL
given on pages 8 to 17 of the Annual
9LWVY[;OLJSHZZPJH[PVUVM+PYLJ[VYZ
into Executive (ED), Non Executive (NED)
and Independent (IND), Non Independent
Directors (NID) is given against the names
as per Listing Rules and Corporate
21. Shareholding
There were 17,515 registered ordinary
shareholders as at 31st December
2015 (2014: 17,688). Information on
the distribution of shareholding and
the respective percentages are given
306
24. Changes in Directorate

The Bank has disclosed the names of
[OLWLYZVUZOVSKPUNVMJLHZ+PYLJ[VYZVM
the Bank as at the end of the accounting
period and the names of any persons
ÔVJLHZLK[VOVSKVMJLHZ+PYLJ[VYZVM
the Bank during the accounting period
in terms of Section 168 (1) (h) of the
Companies Act.
There were no new appointments to the
Board of Directors during the year. None
of the Directors resigned from the Board
during the year.
Mr Channa Prabodha Palansuriya, the
Deputy Chairman of the Bank ceased
to be a Director of the Bank with effect
from 12th of November 2015 in terms
of Section 3 (1) (vi) of the Banking Act
Direction No 11 of 2007 having been
unable to attend three (03) consecutive
meetings of the Board.
5HTLVM+PYLJ[VY
*SHZZPJH[PVU
9LTHYRZ
Mr Dhammika Perera
NED/NID
NED/NID
NED/IND
Mr Deshal De Mel
Mr Ranil Pathirana
NED/IND
NED/IND
NED/IND
NED/IND
NED/NID
NED/IND

Mr Aravinda Perera
NED/NID
ED
ED
Director since 01.08.2007;

Chairman since 01.01.2012
Director from 01.01.2012 to 12.11.2015
Deputy Chairman from 26.01.2012 to
12.11.2015
Director since 01.01.2012;
Senior Director since 26.01.2012
Director since 05.08.2010
Director since 01.01.2012, Independent
Executive Director since 25.11.2008;
Managing Director since 01.01.2012
Executive Director since 01.01.2009
20. Share Information

Information relating to earnings, dividend,
net assets and market value per share is
NP]LUPU[OL-PUHUJPHS/PNOSPNO[ZVUWHNL
36. Information on the trading of the
shares and movement in the number of
shares of the Bank is given in the Investor
Information section on pages 133 to 142.
Governance Rules of Colombo Stock

Exchange and Banking Act Direction No
11 of 2007 issued by the Central Bank of
Sri Lanka.
(ED - Executive Director, NED - Non Executive Director, IND - Independent Director and NID
- Non Independent Director)
25. Retirement and

Re-election /
Re-appointment of
Directors
In terms of Article No 86 and 87 of the
Articles of Association of the Company,
Mr Dhammika Perera, Mr Deshal De Mel,
Miss Annika Senanayake and
Mrs Saumya Amarasekera retire
by rotation and being eligible, offer
themselves for re-election on the
unanimous recommendation of the Board
Nomination Committee and the Board of
Directors.
No existing Director has reached the
age of 70 years and therefore re-election
under Sections 210 and 211 of the
Companies Act does not apply this year.
26. List of Directors of the

Subsidiaries of the Bank
Names of the Directors of Subsidiary
companies are as follows:
26.1 Sampath Centre Ltd
Mr I W Senanayake (Chairman)
Mr S G Wijesinha
Mr S P Kannangara
Mr Wije Dambawinne (resigned w.e.f.
12.10.2015)
Mr D Ihalalanda (appointed w.e.f.
03.12.2015)
Mr R Silva (appointed w.e.f. 03.12.2015)
26.3 Siyapatha Finance PLC

Mr Channa Palansuriya (Chairman)
Mr M A Abeynaike (Deputy Chairman)
Mr S G Wijesinha
Mr P M A Sirimane
+Y/:+:V`ZH
Mr W M P L De Alwis
Mr Aravinda Perera
Mr Tharaka Ranwala (appointed w.e.f.
28.07.2015)
28.1 Board Audit Committee

Mr Ranil Pathirana (Chairman)
26.4 Sampath Information

4Y312/L[[PHYH[JOP*OHPYTHU
Mr D J Gunaratne
Mr M V Indrasoma
4Y24:7/LYH[OYL[PYLK^LM
03.08.2015)
Mr M A Salgado (appointed w.e.f.
30.07.2015)
28.2 Board Human Resources and

Remuneration Committee
Mr Deshal De Mel
Mr Aravinda Perera
27. Register of Directors

and Secretaries
As required under Section 223 (1) of the
Companies Act, the Bank maintains a
Register of Directors and Secretaries
which contain the name, surname,
former name (if any), residential
address, business, occupation, dates
of appointment and dates of resignation
(if applicable) of each Director and the
Secretary.
The Report of the Board Audit Committee

is given on pages 282 to 284 which forms
an integral part of the Annual Report of
the Board of Directors.
;OL9LWVY[VM[OL)VHYK/\THU
Resources and Remuneration Committee
is given on pages 285 & 286 which forms
an integral part of the Annual Report of
the Board of Directors.
28.3 Board Nomination Committee
Miss Annika Senanayake (Chairperson)
Mr Dhammika Perera
28. Board Sub Committees

26.2 S C Securities (Pvt) Ltd
Mr D J Gunaratne (Chairman)
4Y5/2-LYUHUKV,_LJ\[P]L+PYLJ[VY
CEO)
Dr S Kelegama
Mr Deshal De Mel
Mr Aravinda Perera
Mr M N R Fernando
The Board, while assuming the overall

responsibility and accountability for the
management oversight of the Bank, has
also appointed Board Sub Committees
to ensure that the activities of the Bank
at all times are conducted with the
highest ethical standards and the best
interests of all its stakeholders. The
Board formed many Sub Committees
including the following four mandatory
Board Sub Committees as required by
the Banking Act Direction No 11 of 2007.
The compositions of these four Sub
Committees as at 31st December 2015
were as follows:
The Report of the Board Nominations

Committee is given on pages 287 & 288
which forms an integral part of the Annual
28.4 Board Integrated Risk
Mrs Dhara Wijayatilake (Chairperson)
Mr Aravinda Perera
307

The Report of the Board Integrated Risk

Management Committee is given on
pages 289 to 291 which forms an integral
part of the Annual Report of the Board of
Directors.
Further, in order to comply with the
Section 9 of the Colombo Stock
Exchange Listing Rules, the Bank formed
a new Board Sub Committee, Board
Related Party Transactions Review
Committee, on 30th July 2015.
28.5 Board Related Party
Mrs Dhara Wijayatilake (Chairperson)
The Report of the Board Related Party
Transactions Review Committee is given
on pages 292 & 293 which forms an
integral part of the Annual Report of the
Board of Directors.
(WHY[MYVT[OLHIV]L]LTHUKH[VY`
Board Sub Committees, the Board has
HSZVHWWVPU[LK[OLMVSSV^PUN]LUVU
mandatory Board Sub Committees:
28.6 Board Credit Committee
Prof Malik Ranasinghe (Chairman)
Mr Deshal De Mel
Mr Aravinda Perera
The Report of the Board Credit
Committee is given on pages 294 & 295
28.7 Board Strategic Planning

Committee
Mr Dhammika Perera (Chairman)
Mr Deshal De Mel
Mr Ranil Pathirana
Mr Aravinda Perera
28.10 Board Marketing Committee

Mr Deshal De Mel
The Report of the Board Strategic

Planning Committee is given on page 296
29. Directors Meetings
28.8 Board Shareholder Relations

Committee
Prof Malik Ranasinghe (Chairman)
(appointed w.e.f. 16th February 2016)
Mr Deshal De Mel
Mr Channa Palansuriya (Chairman)
The Report of the Board Shareholder
Relations Committee is given on pages
297 & 298 which forms an integral part
of the Annual Report of the Board of
Directors.
28.9 Board Treasury Committee
Mr Sanjiva Senanayake (Chairman)
Mr Deshal De Mel
Mr Aravinda Perera
The Report of the Board Treasury
Committee is given on page 299 and
forms an integral part of the Annual
The Report of the Board Marketing

Committee is given on page 300 which
forms an integral part of the Annual
The duties, responsibilities and
performance of the above Board Sub
Committees are discussed in the
respective Board Sub Committee reports.
The details of Directors meetings which

comprise Board meetings and the
Board Sub Committee meetings and the
attendance of Directors at these meetings
are given in the Corporate Governance
Report on page 238 of the Annual
Report.
30. Directors Interest

Register and Directors
Interest in Contracts or
Proposed Contracts
The Bank maintains the Directors Interest
Register as required under the provisions
of Section 168 (1) (e) of the Companies
Act. Directors of the Bank have made
necessary declarations of their interest
in contracts or proposed contracts, in
terms of the Sections 192 (1) and 192 (2)
of the Companies Act. These interests
have been recorded in the Interest
Register which is available for inspection
in terms of the Act. The particulars of the
Directors Interest in Contracts are given
on page 312 of the Annual Report and
form an integral part of the Annual Report
of the Board of Directors.
As a practice and in terms of Corporate
Governance, Directors have refrained
308
from voting on matters in which they were

materially interested. The Directors have
no direct or indirect interest in a contract
or a proposed contract with the Bank
other than those disclosed.
31. Related Party

Transactions
Directors have also disclosed
transactions if any, that could be
JSHZZPLKHZYLSH[LKWHY[`[YHUZHJ[PVUZPU
terms of Sri Lanka Accounting Standard LKAS 24 (Related Party Disclosure) which
is adopted in preparation of the Financial
Statements. Those transactions disclosed
by the Directors are given in Note 49 to
the Financial Statements which form an
integral part of the Annual Report of the
Board of Directors.
32. Directors Interest in

Ordinary Shares and
Debentures
The shareholdings of Directors were as
follows:
33. Directors Interest in

Shares and Debentures
of Subsidiaries
Mr Aravinda Perera and Mr Ranjith
Samaranayake hold one share each in
Siyapatha Finance PLC and one share
each in Sampath Information Technology
Solutions Ltd, as subscribers. These
shares are held in trust for Sampath
Bank. Mr Aravinda Perera also holds one
share each in S C Securities (Pvt) Ltd and
Sampath Centre Ltd for and on behalf of
the Bank.
34. Directors Remuneration

As required under the Section 168 (1)
(f), details of Directors emoluments and
V[OLYILUL[ZWHPKPUYLZWLJ[VM[OL
.YV\WHUK[OL)HURK\YPUN[OLUHUJPHS
year under review are given in Note
49.3.1 to the Financial Statements.
35. Our Team Members

The Bank believes that its real potential
rests on the strength and capabilities of
its team members in a rapidly changing

environment. All efforts are directed at
having a motivated and competent team
in order to grow and achieve results as
projected in the Strategic Plan and the
Budget.
As at 31st December 2015, the number
of employees on the payroll of the Bank
was 3,993 (2014: 4,000).
36. ESOPs
The Bank did not have any Employee
Share Ownership/Option Plans during the
year.
37. Environmental
Protection
To the best knowledge of the Board, the
Bank has not engaged in any activity
that is harmful or hazardous to the
LU]PYVUTLU[;OL+PYLJ[VYZHSZVJVUYT
that to the best of their knowledge
and belief the Bank has complied with
the relevant environmental laws and
regulations.
38. Statutory Payments
Mr Dhammika Perera*
No of Shares
as at 31st
December
2015
No of Shares
as at 31st
December
2014
9,668
73,710
21,872
9,422
71,827
21,314
25,765,740
25,107,454

Ms Annika Senanayake
Mr Deshal De Mel
Mr Ranil Pathirana
Mr Aravinda Perera
* Following Company is controlled by
Mr Dhammika Perera
Vallibel One PLC
The Directors, to the best of their

RUV^SLKNLHUKILSPLMHYLZH[PZLK
that all statutory payments due to the
Government, other regulatory bodies and
related to the employees have been paid
on a timely basis.
39. Outstanding Litigation

In the opinion of the Directors and in
consultation with the Banks lawyers,
litigation currently pending against the
Bank will not have a material impact
VU[OLYLWVY[LKUHUJPHSYLZ\S[ZVM
future operations of the Bank. Details
of litigation pending against the Bank
are given in Note 47.3 to the Financial
Statements.
None of the Directors directly hold any debentures issued by the Bank.
309

40. Events after the
Reporting Period
No circumstances have arisen since
the Statement of Financial Position date
which would require adjustments to, or
disclosure in, the accounts, except those
disclosed in Note 51 to the Financial
Statements.
41. Going Concern

The Directors after making necessary
inquiries and reviews including reviews
of the budget for the ensuing year,
capital expenditure requirements,
M\[\YLWYVZWLJ[ZHUKYPZRZJHZOV^Z
and such other matters required to be
addressed in the Code of Best Practice
on Corporate Governance issued jointly
of Sri Lanka and the Securities and
Exchange Commission of Sri Lanka and
the Direction on Corporate Governance
PZZ\LKI`[OL*):3HYLZH[PZLK[OH[[OL
Bank has adequate resources to continue
operations into the foreseeable future.
Accordingly, they continue to adopt the
going concern basis in preparing the
42. Donations
As required by the Section 168 (1) (g)
of the Companies Act, information
pertaining to donations made by the
Bank during the year is given below.
During the year the Bank made donations
to the value of Rs 2,487,000 (2014: Rs
49,148,000/-) in terms of the resolution
passed at the last Annual General
Meeting. Donations made by the
Group during the year amounted to Rs
2,487,000/- (2014: 49,153,000/-). Out of
the aforementioned sum, the donations
made by the Bank to Government
approved charities amounted to Rs Nil/(2014: 40,100,000/). The Bank does not
make donations for political purposes.
310
6LJQLFDQW
Shareholdings in Other
Organisations
The Bank continues to hold 9.47%
shareholding in LankaBangla Finance
Limited in Bangladesh. Details are given
in Note 28.3 to the Financial Statements.
44. Risk Management and

Internal Control
44.1 Material Foreseeable Risk
Factors
The Bank has an ongoing process in
place to identify, evaluate and manage
the risks that are faced by the Bank.
This process is detailed in the Risk
Management Report on pages 202 to
227. The Directors, on a regular basis
review the above mentioned process
through the Board Integrated Risk
Management Committee.
44.2 Internal Controls
The Directors of the Bank have taken
reasonable steps open to them to
safeguard the assets of the Group and
the Bank and to prevent and detect
frauds and any other irregularities. For
this purpose the Directors have instituted
effective and comprehensive systems of
internal controls for identifying, recording,
L]HS\H[PUNHUKTHUHNPUN[OLZPNUPJHU[
risks faced by the Bank throughout
the year and it is being regularly
reviewed by the Board of Directors.
This comprises internal reviews, internal
H\KP[HUK[OLÔVSLZ`Z[LTVMUHUJPHS
and other controls required to carry on
the operations in an orderly manner,
safeguard the assets, prevent and detect
frauds and other irregularities and secure,
as far as practicable, the accuracy and
reliability of the records.
45. Corporate Governance

The Directors of the Bank are committed
towards maintaining an effective
Corporate Governance Framework
and implementing processes required
to ensure that the Bank is compliant
with the Code of Best Practices on
Corporate Governance issued jointly by
the Institute of Chartered Accountants
of Sri Lanka and the Securities and
Exchange Commission of Sri Lanka and
the Direction on Corporate Governance
issued by the CBSL. Details are given on
Corporate Governance Report on pages
228 to 281 of this Annual Report.
As required by Section 3(8)(ii)(g) of the
Direction No 11 of 2007 of the Banking
Act on Corporate Governance for
Licensed Commercial Banks, issued
by the CBSL, the Board of Directors
JVUYTZ[OH[HSS[OLUKPUNZVM[OL
Factual Findings Reports of auditors
issued under Sri Lanka Related Services
Practice Statement 4750 have been
incorporated in the annual Corporate
Governance Report on pages 260 to 281
of this Annual Report.
46. Auditors
The Auditors of the Bank during the year
were Messrs Ernst & Young, Chartered
Accountants. They also function as
the Auditors for the Banks Subsidiary
companies namely, Sampath Centre
Ltd, SC Securities (Pvt) Ltd, Siyapatha
Finance PLC and Sampath Information
Technology Solutions Ltd. Audit fees
paid to Messrs Ernst & Young for the
year ended 31st December 2015 by the
Group and the Bank amounted to Rs
14,798,000/- (2014: Rs 13,418,000/-) and
Rs 11,299,000/- (2014: Rs 10,470,000/-)
respectively.
Further the Group and the Bank paid

Rs 5,379,000/- (2014: Rs 6,541,000/-) and
Rs 4,997,000/- (2014: Rs 6,541,000/-)
respectively to Messrs Ernst & Young
as Audit related fees and expenses. In
addition, they were paid Rs 8,113,000/(2014:
Rs 12,055,000/-) and Rs 4,969,000/(2014: Rs 11,092,000/-) by the Group
and the Bank respectively for permitted
non-audit related services including tax
consultancy services. Details of the Audit
fees paid are given on Note 13.1 to the
Based on the declaration provided by
Messrs Ernst & Young, and as far as the
Directors are aware, the Auditors do not
have any relationship with or interest with
Dhammika Perera
Chairman
the Bank that in their judgments, may

reasonably be thought to have a bearing
on their independence within the meaning
of the Code of Professional Conduct and
Ethics issued by the Institute of Chartered
Accountants of Sri Lanka, applicable on
the date of this report.
The retiring Auditors, Messrs Ernst &
Young, have expressed their willingness
[VJVU[PU\LPUVMJL;OL`JVTL\W
for re-election at the Annual General
Meeting, with the recommendation of the
Board Audit Committee and the Board
of Directors. In accordance with the
Companies Act, a resolution proposing
the re-appointment of Messrs Ernst
& Young, Chartered Accountants, as
Auditors is being proposed at the Annual
General Meeting.
Sanjiva Senanayake
Senior Director
Aravinda Perera
Managing Director
47. Notice of Meeting

The 30th Annual General Meeting of the
Bank will be held at )HSTVYHS/HSS, the
Kingsbury, Colombo 1 on 31st March
2016. The Notice of Meeting is given on
page 488 of the Annual Report.
As required by Section 168 (1) (k) of the
Companies Act the Board of Directors
hereby acknowledge the contents of this
report.
For and on behalf of the Board of
Directors.
Anuja Goonetilleke
Company Secretary
Colombo, Sri Lanka

16th February 2016
311

Directors Interest in Contracts with the Bank
Related party disclosures as required by Sri Lanka Accounting Standard LKAS 24 (Related Party Disclosures) are detailed in Note
49 to Financial Statements. In Addition, the Bank carries out transactions in the ordinary course of business in an arms length
basis with entities where the Chairman or Director of the Bank is the Chairman or a Director of such entities as detailed below.
Company
Relationship
Nature of the Facility
Balance
Outstanding
as at
31.12.2015
Balance
Outstanding
as at
31.12.2014
Rs 000
Rs 000
Rs 000
3,100,000
1,132,962
1,828,967
Current
Limit

Access Engineering PLC
Independent Non
Executive Director
Indirect Facilities
Deposits
619,946
13,525
Ceylon Knit Trend (Pvt) Ltd
Director
Deposits
156
439,522
CKT Apparel (Pvt) Ltd
Director
Deposits
12
Esna Power (Pvt) Ltd
Loan & Receivables
100,000
Indirect Facilities
984
Deposits
5,005
58,169
Mr Ranil Pathirana
/PYKHYHTHUP0UK\Z[YPLZ3[K
Director
Deposits
497
343
/PYKHYHTHUP7][3[K
Director
Deposits
17
444
/PYKHYHTHUP0U[LYUH[PVUHS
Exports (Pvt) Ltd
Director
Loan & Receivables
656,000
Deposits
73,281
466
Rosewood (Pvt) Ltd
Director
Deposits
396
956
Star Packaging (Pvt) Ltd
105,247
151,893
2,451
198
39
1,417
1,341
Deposits
2,123
Loan & Receivables
207,895
Indirect Facilities
Deposits
Windforce (Pvt) Ltd
Deposits
Odel PLC
Director
Loan & Receivables
75,000
Mr Aravinda Perera
Colombo Stock Exchange
Director
Deposits
30,006
21,980
Institute of Bankers of Sri

Lanka
Director
Deposits
8,346
14,621
Independent Non
Executive Director
Loan & Receivables
635,000
635,082
1,467
25,483
92,828
Pan Asia Power PLC
Indirect Facilities
Deposits
312
635,000
Directors Statement on Internal Control Over

Financial Reporting
Responsibility
In line with the Banking Act Direction No
11 of 2007, section 3 (8)(ii)(b), the Board of
Directors presents this report on Internal
Control Over Financial Reporting.
The Board of Directors (the Board)
is responsible for the adequacy and
effectiveness of the internal control
mechanism in place at Sampath Bank PLC,
(the Bank). In considering such adequacy
and effectiveness, the Board recognises that
the business of 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 highlighting
any deviations from the limits and indicators
which comprise the risk appetite of the
Bank. In this light, the system of internal
controls can only provide reasonable, but
not absolute assurance, against material
TPZZ[H[LTLU[VMUHUJPHSPUMVYTH[PVUHUK
YLJVYKZVYHNHPUZ[UHUJPHSSVZZLZVYMYH\K
The Board has established an ongoing
process for identifying, evaluating and
THUHNPUN[OLZPNUPJHU[YPZRZMHJLKI`[OL
Bank and this process includes enhancing
the system of Internal Control Over Financial
Reporting as and when there are changes
to business environment or regulatory
guidelines. The process is regularly
reviewed by the Board and accords with
the Guidance for Directors of Banks
on the Directors Statement on Internal
Control issued by the Institute of Chartered
Accountants of Sri Lanka. The Board has
assessed the Internal Control Over Financial
Reporting taking into account principles for
the assessment of internal control system
as given in that guidance.
The Board is of the view that the system of
Internal Controls Over Financial Reporting
in place is sound and adequate to provide
reasonable assurance regarding the
YLSPHIPSP[`VMUHUJPHSYLWVY[PUNHUK[OH[
[OLWYLWHYH[PVUVMUHUJPHSZ[H[LTLU[Z
for external purposes is in accordance
with relevant accounting principles and
regulatory requirements.
The Management assists the Board in the

implementation of the Boards policies and
procedures on risk and control by identifying
and assessing the risks faced, and in the
design, operation and monitoring of suitable
internal controls to mitigate and control
these risks.
Key Features of the Process

Adopted in Applying and
Reviewing the Design and
Effectiveness of the Internal
Control System Over
Financial Reporting
The key processes that have been
established in reviewing the adequacy and
integrity of the system of internal controls
^P[OYLZWLJ[[VUHUJPHSYLWVY[PUNPUJS\KL
the following:
Various Committees are established
by the Board to assist the Board in
ensuring the effectiveness of Banks
daily operations and that the Banks
operations are in accordance with
the corporate objectives, strategies
and the annual budget as well as the
policies and business directions that
have been approved.
The Internal Audit Division of the
Bank checks for compliance with
policies and procedures and the
effectiveness of the internal control
systems on an ongoing basis using
samples and rotational procedures
HUKOPNOSPNO[ZZPNUPJHU[UKPUNZ
in respect of any non-compliance.
Audits are carried out on all units and
branches, the frequency of which
is determined by the level of risk
assessed, to provide an independent
and objective report. The annual
audit plan is reviewed and approved
by the Board Audit Committee.
Findings of the Internal Audit
Department are submitted to the
Board Audit Committee for review at
their periodic meetings.
The Board Audit Committee of

the Bank reviews internal control
PZZ\LZPKLU[PLKI`[OL0U[LYUHS
Audit Department, the External
Auditors, regulatory authorities and
the Management; and evaluates
the adequacy and effectiveness of
the risk management and internal
control systems. They also review the
internal audit functions with particular
emphasis on the scope of audits and
quality of the same. The minutes of
the Board Audit Committee meetings
are forwarded to the Board on a
periodic basis. Further details of the
activities undertaken by the Board
Audit Committee of the Bank are set
out in the Board Audit Committee
Report on pages 282 to 284.
In assessing the internal control
Z`Z[LTV]LYUHUJPHSYLWVY[PUN
PKLU[PLKVMJLYZVM[OL)HUR
collated all procedures and controls
[OH[HYLJVUULJ[LK^P[OZPNUPJHU[
accounts and disclosures of the
UHUJPHSZ[H[LTLU[ZVM[OL)HUR
These in turn were observed and
checked by the internal audit
department for suitability of design
and effectiveness on an ongoing
basis. The Bank adopted the new
Sri Lanka Accounting Standards
comprising LKAS and SLFRS
in 2012. The processes and
procedures initially applied to adopt
the aforementioned Accounting
Standards were further strengthened
during the years 2013, 2014 and
2015 based on the feedback
received from the external auditors,
internal audit department, regulators
and the Board Audit Committee. The
Bank has documented procedures
pertaining to these new requirements
and updates the relevant procedure
manuals as and when necessary.
The Board has also recognised the
need to introduce an automated
UHUJPHSYLWVY[PUNWYVJLZZPUVYKLY
to comply with the requirements
313
Directors Statement on Internal Control Over

Financial Reporting
of recognition, measurement,
JSHZZPJH[PVUHUKKPZJSVZ\YLVM[OL
UHUJPHSPUZ[Y\TLU[ZTVYLLMMLJ[P]LS`
HUKLMJPLU[S`;OL4HUHNLTLU[PZ
currently reviewing various options
H]HPSHISL[VH\[VTH[L[OLUHUJPHS
reporting process. The assessment
did not include subsidiary companies
of the Bank.
The comments made by the
External Auditors in connection
with internal control system over
UHUJPHSYLWVY[PUNPUWYL]PV\Z`LHYZ
were reviewed during the year and
appropriate steps have been taken to
rectify them. The recommendations
made by the External Auditors
in 2015 in connection with the
PU[LYUHSJVU[YVSZ`Z[LTV]LYUHUJPHS
reporting will be dealt with in the
future.
&RQUPDWLRQ
Based on the above processes, the Board
JVUYTZ[OH[[OLUHUJPHSYLWVY[PUNZ`Z[LT
of the Bank has been designed to provide
a reasonable assurance regarding the
YLSPHIPSP[`VMUHUJPHSYLWVY[PUNHUK[OL
WYLWHYH[PVUVMUHUJPHSZ[H[LTLU[ZMVY
external purposes and has been done in
accordance with Sri Lanka Accounting
Standards and regulatory requirements of
the Central Bank of Sri Lanka.
By order of the Board
Review of the Statement by

External Auditors
The External Auditors, Messrs Ernst &
Young, have reviewed the above Directors
Statement on Internal Control over Financial
Reporting included in the Annual Report of
the Bank for the year ended 31st December
2015 and reported to the Board that
Ranil Pathirana
Dhammika Perera
Chairman Board Audit Committee
Chairman
Aravinda Perera
Managing Director
Anuja Goonetilleke
Company Secretary
Colombo, Sri Lanka

16th February 2016
314
nothing has come to their attention that

causes them to believe that the statement
is inconsistent with their understanding of
the process adopted by the Board in the
review of the design and effectiveness of the
PU[LYUHSJVU[YVSV]LYUHUJPHSYLWVY[PUNVM
the Bank. Their Report on the Statement of
Internal Control over Financial Reporting is
given on page 315 of this Annual Report.
Sanjiva Senanayake
Senior Director
Independent Assurance Report to the Board of

Directors of Sampath Bank PLC
Introduction
We were engaged by the Board of Directors
of Sampath Bank PLC (the Bank) to
provide assurance on the Directors
Statement on Internal Control over Financial
Reporting (the Statement) included in
the annual report for the year ended 31
December 2015.
Managements Responsibility
Management is responsible for the
preparation and presentation of the
Statement in accordance with the
Guidance for Directors of Banks on the
Directors Statement on Internal Control
issued in compliance with section 3(8)(ii)(b)
of the Banking Act Direction No. 11 of 2007,
by the Institute of Chartered Accountants of
Sri Lanka.
Our Responsibilities and

Compliance with SLSAE 3050
Our responsibility is to issue a report to the
board on the Statement based on the work
performed. We conducted our engagement
in accordance with Sri Lanka Standard on
Assurance Engagements SLSAE 3050
Assurance Report for Banks on Directors
Statement on Internal Control issued by the
Institute of Chartered Accountants of Sri
Lanka.
Summary of Work Performed

We conducted our engagement to assess
whether the Statement is supported by the
documentation prepared by or for Directors;
HUKHWWYVWYPH[LS`YLLJ[LK[OLWYVJLZZ
the Directors have adopted in reviewing
[OLZ`Z[LTVMPU[LYUHSJVU[YVSV]LYUHUJPHS
reporting of the Bank.
The procedures performed were limited

primarily to inquiries of bank personnel and
the existence of documentation on a sample
basis that supported the process adopted
by the Board of Directors.
SLSAE 3050 does not require us to
consider whether the Statement covers
all risks and controls or to form an opinion
on the effectiveness of the Banks risk and
control procedures. SLSAE 3050 also does
not require us to consider whether the
processes described to deal with material
PU[LYUHSJVU[YVSHZWLJ[ZVMHU`ZPNUPJHU[
problems disclosed in the annual report will,
in fact, remedy the problems.
Our Conclusion
Based on the procedures performed,
nothing has come to our attention that
causes us to believe that the Statement
included in the annual report is inconsistent
with our understanding of the process
the Board of Directors has adopted in the
review of the design and effectiveness of
PU[LYUHSJVU[YVSV]LYUHUJPHSYLWVY[PUNVM[OL
Bank.
Ernst & Young

Chartered Accountants
16 February 2016
Colombo
315
Managing Directors and Group Chief Financial

6MJLYZ9LZWVUZPIPSP[`:[H[LTLU[
The Financial Statement of Sampath Bank
PLC (the Bank) and the Consolidated
Financial Statements of the Bank and
its Subsidiaries (the Group) as at 31st
December 2015 are prepared in compliance
with the requirements of the following:
issued by the Institute of Chartered
Accountants of Sri Lanka;
Companies Act No 7 of 2007
(Companies Act);
Sri Lanka Accounting and Auditing
Standards Act No 15 of 1995;
Banking Act No 30 of 1988 and
amendments thereto;
The Listing Rules of the Colombo
Stock Exchange;
The Code of Best Practice on
jointly by the Institute of Chartered
Accountants of Sri Lanka,
Commission of Sri Lanka; and
Section 3(8)(ii)(g) of the Banking
Act Direction No 11 of 2007 on
Corporate Governance issued by the
Central Bank of Sri Lanka.
The formats used in the preparation of the
Financial Statements and disclosures made
comply with the formats prescribed by the
Central Bank of Sri Lanka, which is also in
compliance with the disclosure requirements
of the Sri Lanka Accounting Standard (LKAS
1) Presentation of Financial Statements.
The Accounting Policies used in the
preparation of the Financial Statements are
appropriate and are consistently applied
I`[OL.YV\W;OLZPNUPJHU[HJJV\U[PUN
policies and estimates that involve a high
degree of judgment and complexity were
discussed with the Board Audit Committee
and External Auditors. Comparative
information has been restated wherever
necessary to comply with the current
presentation and material departures, if
any, have been disclosed and explained in
the notes to the Financial Statements. We
JVUYT[OH[[V[OLILZ[VMV\YRUV^SLKNL
the Financial Statements give a true and
MHPY]PL^VM[OLHZZL[ZSPHIPSP[PLZUHUJPHS
316
position, results of the operations and

[OLJHZOV^ZVM[OL.YV\W>LOH]L
reasonable grounds to believe that the
Bank and its Subsidiaries have adequate
resources to continue in operational
existence for the foreseeable future.
Accordingly, we continue to adopt the going
concern basis in preparing the Financial
Statements.
The estimates and judgments relating to
the Financial Statements were made on a
prudent and reasonable basis; in order that
[OL-PUHUJPHS:[H[LTLU[ZYLLJ[PUH[Y\L
and fair manner, the form and substance
of transactions and that the Banks state of
affairs is reasonably presented. To ensure
this, the Bank and all of its Subsidiaries
OH]L[HRLUWYVWLYHUKZ\MJPLU[JHYLPU
installing a system of internal controls
and procedures for safeguarding assets,
preventing and detecting frauds and / or
errors as well as other irregularities which
are reviewed, evaluated and updated on
an ongoing basis. Our Internal Auditors
have conducted periodic audits to provide
reasonable assurance that the established
policies and procedures were consistently
MVSSV^LK/V^L]LY[OLYLHYLPUOLYLU[
limitations that should be recognised in
weighing the assurances provided by any
system of internal controls and accounting.
>LJVUYTJVTWSPHUJL^P[OZLJ[PVU
(ii)(b) of the Banking Act Direction No 11 of
2007 on Corporate Governance (Internal
Control Over Financial Reporting - ICOFR)
issued by the Central Bank of Sri Lanka
as of 31st December 2015 and that the
Banks Internal Controls Over Financial
Reporting is adequate and effective. The
Annual Report of the Directors on pages
[VOHZIYPL`JV]LYLK[OL.YV\WZ
Internal Control Over Financial Reporting.
In addition, Directors Statement on Internal
Control Over Financial Reporting is provided
on pages 313 & 314. The Banks External
Auditors, Messrs Ernst & Young, have
audited the effectiveness of the Banks
Internal Controls Over Financial Reporting
HUKOH]LNP]LUHU\UX\HSPLKVWPUPVUVU
page 315 of this Annual Report.

were audited by Messrs Ernst & Young,
Chartered Accountants, the independent
External Auditors. Their report is given on
page 319 of this Annual Report.
The Board Audit Committee of the Bank
meets periodically with the Internal Auditors
and the independent External Auditors to
review the manner in which these auditors
are performing their responsibilities and to
discuss issues relating to auditing, internal
JVU[YVSZHUKUHUJPHSYLWVY[PUNPZZ\LZ
To ensure complete independence, the
External Auditors and the Internal Auditors
have full and free access to the members
of the Board Audit Committee to discuss
any matter of substance. The Board Audit
Committee report is given on pages 282 to
284.
The Board Audit Committee approves
the audit and non-audit services provided
by Messrs Ernst & Young, in order to
ensure that the provision of such services
does not impair Messrs Ernst & Youngs
independence.
>LJVUYT[OH[[V[OLILZ[VMV\Y
knowledge:
The Group has complied with all
applicable laws, regulations and
prudential requirements;
There are no material non
compliances; and
There are no material litigations that
are pending against the Group other
than those disclosed in Note No 47.3
to the Financial Statements in the
Annual Report.
Aravinda Perera
Managing Director
Executive Director/Group Chief Financial
6MJLY
Colombo, Sri Lanka.
16th February 2016
Statement of Directors Responsibility for Financial

Reporting
The responsibilities of the Directors in
relation to the Financial Statements of
Sampath Bank PLC (the Bank) and the
Consolidated Financial Statements of the
Bank and its Subsidiaries (the Group) are
set out in the following Statement. The
responsibility of the Auditors in relation to
the Financial Statements is set out in the
Report of the Auditors given on page 319.
As per the provisions of the Companies Act
No 7 of 2007 (Companies Act), the Directors
of the Bank are responsible for ensuring
that the Bank and the Group keep proper
books of account of all the transactions
and they are required to prepare Financial
Statements that give a true and fair view
VM[OLUHUJPHSWVZP[PVUVM[OL)HURHUK
[OL.YV\WHZH[LUKVMLHJOUHUJPHS`LHY
and place them before a general meeting.
The Financial Statements comprise of the
Statement of Financial Position as at end of
[OLUHUJPHS`LHY[OL:[H[LTLU[VM7YV[VY
Loss, Statement of Comprehensive Income,
Statement of Changes in Equity, Statement
VM*HZO-SV^MVY[OLUHUJPHS`LHYLUKLK
and notes thereto.
The Financial Statements are prepared
under the supervision of the Group Chief
-PUHUJPHS6MJLYÔVPZHU,_LJ\[P]L
+PYLJ[VYVM[OL)HUR;OL+PYLJ[VYZJVUYT
that the Financial Statements of the Bank
and the Group give a true and fair view of:
1.
The state of affairs of the Bank and
the Group as at 31st December
2015: and

;OLUHUJPHSWLYMVYTHUJLZVM[OL
)HURHUK[OL.YV\WMVY[OLUHUJPHS
year ended 31st December 2015
The Financial Statements of the Bank
HUK[OL.YV\WOH]LILLUJLY[PLKI`[OL
.YV\W*OPLM-PUHUJPHS6MJLY[OLVMJLY
responsible for their preparation, as required
by the Companies Act. The accounts have
been circulated and reviewed by the Board
Audit Committee and Board of Directors.
Further, the Financial Statements of the
Bank and the Group have been signed by
three Directors and the Company Secretary
in conformity with the requirements of the
Companies Act.
In preparing these Financial Statements, the

Directors are required to ensure that:
1.
the appropriate accounting policies
have been selected and applied in
a consistent manner and material
departures, if any, have been
disclosed and explained;
2.
the Financial Statements are
presented in accordance with
(SLFRS/LKAS) and are consistent
with the underlying books of
account;
3.
reasonable and prudent judgments
and estimates have been made
so that the form and substance of
[YHUZHJ[PVUZHYLWYVWLYS`YLLJ[LK"
4.
the Financial Statements provide
the information required by the
Companies Act, Banking Act No
30 of 1988 (Banking Act) and the
Listing Rules of the Colombo Stock
Exchange.
5.
the companies within the Group
THPU[HPUZ\MJPLU[HJJV\U[PUN
YLJVYKZ[VKPZJSVZL[OLUHUJPHS
position of the Group with reasonable
accuracy.
The Directors are also required to ensure
that the Bank and the Group have adequate
resources to continue in operation and to
justify applying the going concern basis in
preparing these Financial Statements.
Financial Statements for the year 2015,
prepared and presented in this Annual
Report are consistent with the underlying
books of account and are in conformity with
the requirements of Sri Lanka Accounting
Standards, Companies Act, Sri Lanka
Accounting and Auditing Standards Act No
15 of 1995, Banking Act and amendments
thereto, the continuing Listing Rules of
the Colombo Stock Exchange (CSE) and
the Code of Best Practice on Corporate
Governance issued jointly by the Institute of
Chartered Accountants of Sri Lanka (ICASL)
& the Securities and Exchange Commission
of Sri Lanka (SEC). Further these Financial
Statements comply with the prescribed
format issued by the Central Bank of
Sri Lanka (CBSL) for the preparation of
annual Financial Statements of licensed

commercial banks. The Directors accept
responsibility for the integrity and objectivity
of the Financial Statements published in
[OPZ(UU\HS9LWVY[;OL+PYLJ[VYZJVUYT
that in preparing the Financial Statements
given on pages 320 to 452, appropriate
accounting policies have been selected and
HWWSPLKIHZLKVU[OLULÛHUJPHSYLWVY[PUN
framework on a consistent basis, while
reasonable and prudent judgments have
been made so that the form and substance
VM[YHUZHJ[PVUZHYLWYVWLYS`YLLJ[LK
The Directors have taken appropriate steps
to ensure that the Bank and the Group
maintain proper books of account and
YL]PL^[OLUHUJPHSYLWVY[PUNZ`Z[LTKPYLJ[S`
by them at their regular meetings and also
through the Board Audit Committee. The
Report of the Board Audit Committee is
given on pages 282 to 284. The Board of
Directors also approves the Interim Financial
Statements prior to their release, following
a review and recommendation by the Board
Audit Committee.
The Directors have taken all reasonable
steps open to them to safeguard the
assets of the Bank and the Group and to
prevent and detect frauds and any other
irregularities. For this purpose the Directors
have instituted effective and comprehensive
systems of internal controls for identifying,
recording, evaluating and managing
[OLZPNUPJHU[YPZRZMHJLKI`[OL)HUR
throughout the year and it is being under
regular review of the Board of Directors. This
comprises internal reviews, internal audit
HUK[OLÔVSLZ`Z[LTVMUHUJPHSHUKV[OLY
controls required to carry on the operations
in an orderly manner, safeguard the assets,
prevent and detect frauds and other
irregularities and secure as far as practicable
the accuracy and reliability of the records.
Based on their assessment of Internal
Control Over Financial Reporting (ICOFR),
in compliance with section 3(8)(ii)(b) of the
Banking Act Direction No 11 of 2007 on
Corporate Governance, the Directors have
concluded that, as of 31st December 2015,
[OL.YV\WZPU[LYUHSJVU[YVSZV]LYUHUJPHS
317
Statement of Directors Responsibility for

Financial Reporting
reporting are effective. The Directors
Statement on Internal Control Over Financial
Reporting and Annual Report of the Board
of Directors on the Affairs of the Company
are provided on pages 313 & 314 and
pages 303 to 312 respectively of this Annual
Report. The External Auditors Independent
Assurance Report on the Directors
Statement on Internal Control Over Financial
Reporting is given on page 315 of this
Annual Report.
As required by section 56(2) of the
Companies Act, the Directors have made
an assessment of the Solvency of the Bank,
immediately after the proposed dividend
HUKJVUYT[OH[[OL)HURZH[PZLZ[OL
Solvency Test required by the Section 57
of Companies Act. The Directors have also
VI[HPULK[OL*LY[PJH[LVM:VS]LUJ`MYVT[OL
External Auditors of the Bank, Messrs Ernst
& Young.
adequate and nothing has come to their

attention to indicate that any breakdown in
the functioning of these controls, resulting in
material loss to the Bank. The Directors also
JVUYT[OH[[OL)HUR^PSSOH]LHKLX\H[L
resources to continue in operational
existence and as a going concern for the
foreseeable future.
The Directors are of the view that they have
discharged their responsibilities as set out in
the above statement.
By order of the Board,
Anuja Goonetilleke
Company Secretary
Colombo, Sri Lanka
16th February 2016
Messrs Ernst & Young, Chartered

Accountants, the External Auditors
of the Bank were provided with every
opportunity to undertake the inspections
they considered appropriate. They have
examined the Financial Statements made
available to them by the Directors together
^P[OHSSUHUJPHSYLJVYKZYLSH[LKKH[H
minutes of the Shareholders meetings,
Directors meetings, Board Audit Committee
meetings and other Board Sub Committee
meetings and expressed their opinion as
reported by them in the Annual Report on
page 319.
Compliance Report
;OL+PYLJ[VYZJVUYT[OH[[V[OLILZ[VM
their knowledge, all taxes, duties and levies
payable by the Bank and its Subsidiaries, all
contributions, levies and taxes payable on
behalf of and in respect of the employees of
the Bank and its Subsidiaries and all other
known statutory dues as were due and
payable by the Bank and its Subsidiaries
as at reporting date have been paid or,
where relevant, provided for, except as
ZWLJPLKPU5V[L[V[OL-PUHUJPHS
Statements covering contingent liabilities.
;OL+PYLJ[VYZJVUYT[OH[IHZLKVU[OLPY
assessment, the accounting controls are
318
Independent Auditors Report

to the Shareholders of Sampath Bank PLC
Report on the Financial

Statements
We have audited the accompanying
UHUJPHSZ[H[LTLU[ZVM:HTWH[O)HUR73*
[OL)HURHUK[OLJVUZVSPKH[LKUHUJPHS
statements of the Bank and its subsidiaries
(the Group), which comprise the statement
VMUHUJPHSWVZP[PVUHZH[+LJLTILY
HUK[OLZ[H[LTLU[VMWYV[VYSVZZ
and comprehensive income, statement
of changes in equity and, statement of
JHZOV^MVY[OL`LHY[OLULUKLKHUKH
Z\TTHY`VMZPNUPJHU[HJJV\U[PUNWVSPJPLZ
and other explanatory information set out on
pages 320 to 452.
Boards Responsibility for

the Financial Statements
The Board of Directors (the Board) is
responsible for the preparation of these
UHUJPHSZ[H[LTLU[Z[OH[NP]LH[Y\LHUK
fair view in accordance with Sri Lanka
Accounting Standards, and for such internal
controls as Board determines is necessary
[VLUHISL[OLWYLWHYH[PVUVMUHUJPHS
statements that are free from material
misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion
VU[OLZLUHUJPHSZ[H[LTLU[ZIHZLK
on our audit. We conducted our audit
in accordance with Sri Lanka Auditing
Standards. Those standards require that
we comply with ethical requirements
and plan and perform the audit to obtain
reasonable assurance about whether the
UHUJPHSZ[H[LTLU[ZHYLMYLLMYVTTH[LYPHS
misstatement.
An audit involves performing procedures

to obtain audit evidence about the
HTV\U[ZHUKKPZJSVZ\YLZPU[OLUHUJPHS
statements. The procedures selected
depend on the auditors judgment,
including the assessment of the risks of
TH[LYPHSTPZZ[H[LTLU[VM[OLUHUJPHS
statements, whether due to fraud or error.
In making those risk assessments, the
auditor considers internal control relevant
[V[OLIHURZWYLWHYH[PVUVM[OLUHUJPHS
statements that give a true and fair view in
order to design audit procedures that are
appropriate in the circumstances, but not
for the purpose of expressing an opinion
on the effectiveness of the banks internal
control. An audit also includes evaluating
the appropriateness of accounting policies
used and the reasonableness of accounting
estimates made by Board, as well as
evaluating the overall presentation of the
UHUJPHSZ[H[LTLU[Z
We believe that the audit evidence we have
VI[HPULKPZZ\MJPLU[HUKHWWYVWYPH[L[V
provide a basis for our audit opinion.
Report on Other Legal and

Regulatory Requirements
As required by Section 163(2) of the
Companies Act No. 7 of 2007, we state the
following:
a)
The basis of opinion and scope and
limitations of the audit are as stated
above.
b)
In our opinion :
We have obtained all the information
and explanations that were required
for the audit and, as far as appears
from our examination, proper
accounting records have been kept
by the Bank,

;OLUHUJPHSZ[H[LTLU[ZVM[OL)HUR
NP]L[Y\LHUKMHPY]PL^VM[OLUHUJPHS
position as at 31 December 2015,
HUKVMP[ZUHUJPHSWLYMVYTHUJL
HUKJHZOV^ZMVY[OL`LHY[OLU
ended in accordance with Sri Lanka
Accounting Standards, and

;OLUHUJPHSZ[H[LTLU[ZVM[OL)HUR
and the Group, comply with the
requirements of Section 151 and 153
of the Companies Act No. 7 of 2007.
Opinion
0UV\YVWPUPVU[OLJVUZVSPKH[LKUHUJPHS
statements give a true and fair view of
[OLUHUJPHSWVZP[PVUVM[OL.YV\WHZH[
+LJLTILYHUKVMP[ZUHUJPHS
WLYMVYTHUJLHUKJHZOV^ZMVY[OL`LHY
then ended in accordance with Sri Lanka
Accounting Standards.
Ernst & Young

16 February 2016
Colombo
319
Bank
For the year ended 31st December
Gross income
Interest income
Less: Interest expense
Net interest income
Fee & commission income
Less: Fee & commission expense
Net fee & commission income
Group
Note
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
47,031,516
44,597,081
49,101,837
46,394,406
37,943,691
20,541,894
17,401,797
38,058,607
22,334,974
15,723,633
39,706,286
21,155,900
18,550,386
39,695,507
22,914,717
16,780,790
6,487,873
1,201,320
5,286,553
5,055,618
868,212
4,187,406
6,620,894
1,203,683
5,417,211
5,132,720
873,362
4,259,358
Net trading income

Other operating income
9
10
(341,316)
2,941,268
25,288,302
413,387
1,069,469
21,393,895
(341,316)
3,115,973
26,742,254
413,387
1,152,792
22,606,327
Less: Net impairment charge / (reversal) for loans & other losses
Net operating income
11
943,569
24,344,733
1,401,399
19,992,496
992,844
25,749,410
1,580,792
21,025,535
12
13
6,141,259
7,198,177
13,339,436
5,060,919
6,668,211
11,729,130
6,524,403
7,437,635
13,962,038
5,341,076
6,839,150
12,180,226
11,005,297
8,263,366
11,787,372
8,845,309
Less: Operating expenses

Personnel expenses
Other operating expenses
Total operating expenses
2SHUDWLQJSURWEHIRUHYDOXHDGGHGWD[9$7DQG
QDWLRQEXLOGLQJWD[1%7RQQDQFLDOVHUYLFHV
3LZZ!=(; 5);VUUHUJPHSZLY]PJLZ
3URWEHIRUHLQFRPHWD[

9,100,873

6,726,507

9,789,643

7,246,914
Less: Income tax expense

3URWIRUWKH\HDU
15
2,966,932
6,133,941
1,812,717
4,913,790
3,161,453
6,628,190
1,979,359
5,267,555
6,133,941
6,133,941
4,913,790
4,913,790
6,623,346
4,844
6,628,190
5,263,235
4,320
5,267,555
38.44
38.44
30.55
30.54
Attributable to:
Equity holders of the Bank
Non controlling interest
Earnings per share (Rs)

Earnings per share: Basic (Rs)
Earnings per share: Diluted (Rs)
16

Dividend per share: Gross (Rs)
Dividend per share: Net (Rs)
17
13.00*
11.75*
11.00
9.95
The Notes to the Financial Statements from pages 327 to 452 form an integral part of these Financial Statements.
* Calculated based on proposed dividend, which is to be approved at the Annual General Meeting.
320
Statement of Comprehensive Income

Bank
3URWIRUWKH\HDU
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
6,133,941
4,913,790
6,628,190
5,267,555
Other comprehensive income

6[OLYJVTWYLOLUZP]LPUJVTL[VILYLJSHZZPLK[VWYV[VYSVZZ!
(Loss) / Gain arising on re-measuring available for
ZHSLUHUJPHSHZZL[Z
Exchange difference in translation
.HPU3VZZHYPZPUNMYVTJHZOVÔLKNL
1HWRWKHUFRPSUHKHQVLYHLQFRPHWREHUHFODVVLHG
WRSURWRUORVV

32,061
(391,710)

993
(698,807)

32,061
(391,710)

993
(698,807)

(391,710)
(530,793)
(391,710)
(530,793)

(32,463)
83,477

216,390
(556,431)

(32,027)
83,188

217,042
(558,867)
83,477
(556,431)
83,188
(558,867)
(308,233)
5,825,708
(1,087,224)
3,826,566
(308,522)
6,319,668
(1,089,660)
4,177,895
5,825,708
5,825,708
3,826,566
3,826,566
6,314,800
4,868
6,319,668
4,173,595
4,300
4,177,895
6[OLYJVTWYLOLUZP]LPUJVTLUV[[VILYLJSHZZPLK[VWYV[VYSVZZ!
(J[\HYPHSNHPUSVZZVUKLULKILUL[WSHUZ
1HWRWKHUFRPSUHKHQVLYHLQFRPHQRWWREHUHFODVVLHG
WRSURWRUORVV
Other comprehensive income net of tax
Total comprehensive income for the year net of tax
Attributable to:
321

Bank
As at 31st December
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
13,588,075
21,341,882
5,193,369

1,889,058
2,702,785
1,651,205
375,696,530
33,368,274
51,250,411
7,210,585
1,079,921
5,313,491
342,193
4,329,933
525,277,173
11,556,620
17,607,251
1,791,698
31,285,348

17,024,253
13,205,359
934,976
301,434,602
24,026,116
1,581,622
980,165
1,059,921
5,141,848
368,162
3,851,087
432,026,252
13,713,456
21,341,882
5,193,369

1,898,074
2,693,769
1,651,205
386,277,744
33,368,274
51,941,479
6,519,573
63,121
8,696,577
368,369
2,249
23,368
4,575,482
538,647,452
11,645,326
17,607,251
1,791,698
31,285,348

17,024,253
13,205,359
934,976
309,569,370
24,026,116
1,581,678
984,363
8,388,598
394,332
23,473
4,150,607
442,789,972
3,418,499

9,316,122
406,323,019
57,016,284
90,969
4,939,539
313,181
7,216,643
1,060,785
490,152,099
2,486,747

13,001,462
339,969,141
36,335,599
79,284
2,319,645
143,577
5,689,541
1,037,098
401,114,273
3,418,499

8,662,930
407,163,665
65,170,977
90,969
5,021,362
433,175
7,932,992
1,092,626
499,444,253
2,508,869

12,500,414
339,678,722
43,610,816
79,284
2,436,034
223,750
6,034,668
1,061,607
408,186,343
42
5,381,405
4,470,151
5,381,405
4,470,151
43
44
45
1,790,000
24,887,372
3,066,297
35,125,074
35,125,074
525,277,173
1,480,000
21,779,082
3,182,746
30,911,979
30,911,979
432,026,252
1,860,058
27,242,985
4,624,088
39,108,536
94,663
39,203,199
538,647,452
1,530,831
24,134,695
4,375,667
34,511,344
92,285
34,603,629
442,789,972
203.85
214,992,883
179.39
170,165,658
226.96
215,214,977
200.28
170,406,976
Note
ASSETS
Cash & cash equivalents
Balances with Central Bank of Sri Lanka
Placements with banks
Reverse repurchase agreements
+LYP]H[P]LUHUJPHSPUZ[Y\TLU[Z
Financial assets - held for trading
Financial assets - held for trading pledged as collaterals
Loans to & receivables from banks
Loans to & receivables from other customers
Other loans & receivables
Financial assets - available for sale
Financial assets - available for sale pledged as collaterals
Financial assets - held to maturity
Investment in subsidiaries
Property, plant & equipment
Intangible assets
Current tax receivables
Deferred tax assets
Other assets
Total Assets
LIABILITIES
Due to banks
Securities sold under repurchase agreements
Due to other customers
Debt issued & other borrowed funds
Dividend payable
Current tax liabilities
Deferred tax liabilities
Other liabilities
Other provisions
Total Liabilities
EQUITY
Stated capital
Reserves
Statutory reserves
Other reserves
Retained earnings
Total equity attributable to equity holders of the Bank
Total Equity
Total Liabilities & Equity
Net asset value per share (Rs)
Commitments & contingencies
Group
19
20
21

23
24
25
26
27
28
29
30
31
32
33
39
34
35
36

37
38
39
34
40
41
46
47
I certify that these Financial Statements are presented in compliance with the requirements of the Companies Act No 07 of 2007.
,_LJ\[P]L+PYLJ[VY.YV\W*OPLM-PUHUJPHS6MJLY
The Board of Directors is responsible for the preparation & presentation of these Financial Statements
Dhammika Perera
Chairman
Sanjiva Senanayake
Senior Director
16th February 2016

Colombo, Sri Lanka
322
Aravinda Perera
Managing Director
Anuja Goonetilleke
Company Secretary

Bank
Note
CasKRZVIURPRSHUDWLQJDFWLYLWLHV
Interest receipts
Net commission receipts
Interest payments
Receipts from other operating activities
Cash payments to employees
=(; 5);VUUHUJPHSZLY]PJLZ
Cash payments to other operating activities
2SHUDWLQJSURWEHIRUHFKDQJHVLQRSHUDWLQJ
assets & liabilities (Note a)
(Increase) / decrease in operating assets
Other assets
Increase / (decrease) in operating liabilities

Due to banks
Other liabilities
Net cash generated from / (used in) operating

activities before income tax
Income tax & super gain tax paid
Net cash (used in) / generated from
operating activities
&DVKRZVIURPLQYHVWLQJDFWLYLWLHV
Net proceeds from reverse repurchase agreements
Net proceeds from securities sold
under re -purchase agreements
5L[WYVJLLKZMYVTUHUJPHSHZZL[ZOLSKMVY[YHKPUN
5L[WYVJLLKZMYVTUHUJPHSHZZL[Z
held for trading pledged as collaterals
5L[WYVJLLKZMYVTUHUJPHSHZZL[ZOLSK[VTH[\YP[`
Net proceeds from other loans & receivables
5L[WYVJLLKZMYVTUHUJPHSHZZL[ZH]HPSHISLMVYZHSL
5L[WYVJLLKZMYVTUHUJPHSHZZL[Z
available for sale pledged as collaterals
+P]PKLUKYLJLP]LKMYVTUHUJPHSHZZL[Z
Dividend received from Subsidiaries
Investment in Subsidiary
Purchase of property, plant & equipment
Purchase of intangible assets
Proceeds from disposal of property plant & equipment
Net cash (used in) / generated from investing activities
&DVKRZVIURPQDQFLQJDFWLYLWLHV
Dividend paid to non controlling interest
Increase / (decrease) in debentures
Increase / (decrease) in commercial papers
Increase / (decrease) in other borrowed funds
Shares issued
Dividend paid
1HWFDVKJHQHUDWHGIURPXVHGLQQDQFLQJDFWLYLWLHV
Net cash generated / (used) during the year
Cash & cash equivalents at the beginning of the year
Cash & cash equivalents at the end of the year (Note b)
10
32
33
46
38.1
42.1
2015
Rs 000
Group
2014
Rs 000
2015
Rs 000
2014
Rs 000
37,700,779
5,393,014
(18,487,346)
2,796,738
(5,193,685)

(6,274,449)
38,496,849
4,207,516
(24,826,755)
951,097
(4,616,304)

(5,863,262)
39,476,071
5,523,670
(19,054,339)
3,030,137
(5,569,494)

(6,344,200)
40,133,240
4,279,467
(25,406,498)
1,084,164
(4,890,450)

(5,903,580)
14,116,247
6,817,419
15,149,736
7,703,085
(3,734,631)
(75,306,945)
(716,229)
(1,044,839)
(80,802,644)
(1,840,284)
(44,246,690)
(296,732)
222,264
(46,161,442)
(3,734,631)
(77,815,363)
(716,229)
(991,178)
(83,257,401)
(1,840,284)
(46,052,329)
(296,732)
463,781
(47,725,564)
64,698,283
1,111,503
1,170,695
66,980,481
42,026,920
96,858
372,039
42,495,817
65,802,936
1,111,503
1,541,506
68,455,945
41,904,065
96,858
361,578
42,362,501
294,084
(1,136,662)
3,151,794
(1,516,154)
348,280
(1,434,121)
2,340,022
(1,605,429)
(842,578)
1,635,640
(1,085,841)
734,593
31,045,000
(13,045,000)
31,045,000
(13,045,000)
(3,697,910)

9,624,269

(3,850,060)

9,457,654

10,502,574

(8,965,690)

(9,709,219)

(11,664,369)

10,511,589

(8,965,690)

(9,709,219)

(11,664,369)

(7,149,954)

58,950
(20,000)
(815,127)
(69,247)
14,322
(12,903,089)

49,972
(670,632)
(150,817)
14,708
5,427,557
(6,458,396)

(1,113,213)
(77,376)
14,747
(13,458,903)

(855,326)
(166,981)
16,795
5,008,000
7,000,000
13,294,302
(935,758)
19,358,544
7,000,000
(9,654,573)
9,812
(1,342,631)
(3,987,392)
(1,000)
6,732,670
(648,116)
15,068,622
(935,758)
20,216,418
(1,000)
7,914,500
37,081
(9,217,137)
9,812
(1,342,631)
(2,599,375)
5,612,877
12,837,960
18,450,837
3,075,805
9,762,155
12,837,960
5,671,674
12,904,544
18,576,218
3,143,218
9,761,326
12,904,544
323
RECONCILIATION STATEMENT
Bank
Note
Note (a)
5HFRQFLOLDWLRQRIRSHUDWLQJSURWEHIRUH
changes in operating assets and liabilities
7YV[ILMVYLPUJVTL[H_

Interest income accrued on impaired loans & receivables
7.1
Net trading income
9
Forward exchange contract revaluation loss / (gain)
Capital (gain) / loss
Dividend income
Net mark to market loss / (gain)
10
+P]PKLUKPUJVTLMYVTH]HPSHISLMVYUHUJPHSHZZL[Z

*HWP[HSNHPUSVZZMYVTH]HPSHISLMVYZHSLUHUJPHSHZZL[Z
Dividend income from Subsidiaries
7YV[VUKPZWVZHSVMWYVWLY[`WSHU[ LX\PWTLU[

Net impairment charge / (reversal) for loans & other losses
11
13
Depreciation of property, plant & equipment
Amortisation of intangible assets
Accrual for interest and commission income
Accrual for interest expense
Accrual on personnel and other expenses
6WLYH[PUNWYV[ILMVYLJOHUNLZPUVWLYH[PUNHZZL[ZSPHIPSP[PLZ
Note (b)
Reconciliation of cash & cash equivalents
Local currency in hand
Foreign currency in hand
Balances with local banks
Balances with foreign banks
Money at call and short notice
Unfavourable balances with local & foreign banks
Cash & cash equivalents at the end of the year
19
19
19
19
19
21
36
2015
Rs 000

(212,711)
Group
2014
Rs 000

(158,333)
2015
Rs 000

(212,873)

(158,841)
262,642
(76,249)
(15,505)
170,428
(365,238)
(287,776)
(27,385)
267,012
262,642
(76,249)
(15,505)
170,428
(365,238)
(287,776)
(27,385)
267,012

(58,950)

943,569

(49,972)

1,401,399

992,844

1,580,792
604,945
95,216
(88,121)
2,054,548
1,438,561

615,881
80,014
621,823
(2,491,781)
553,668

766,527
103,339
(75,262)
2,101,622
1,445,895

740,562
85,954
621,823
(2,491,781)
559,677

7,499,502
1,454,651
61,267
1,642,172
2,930,483
5,193,369
(330,607)
18,450,837
6,126,067
2,046,683
63,209
1,312,448
2,008,213
1,791,698
(510,358)
12,837,960
7,582,388
1,454,651
103,762
1,642,172
2,930,483
5,193,369
(330,607)
18,576,218
6,138,602
2,046,683
139,380
1,312,448
2,008,213
1,791,698
(532,480)
12,904,544
324
2014
Rs 000
245,851
1,480,000
9,812
9,812
4,470,151
310,000
1,790,000
911,254
911,254
5,381,405

-

-
1,480,000
1,480,000

-

-
4,470,151
4,470,151
1,234,149

-
(2,439,494)
-

-
2,439,494
1,846,649

-
1,846,649
1,846,649
1,846,649

-
1,846,649
Statutory Reserves
Statutory Investment Revaluation
Reserve
Fund
Reserve
Fund
Account (Note 44.1)
(Note 43.1) (Note 43.2)
Rs 000
Rs 000
Rs 000
4,460,339
Rs 000
Stated
Capital
(Note 42)
Transactions with equity holders, recognised directly in equity,

contributions by and distributions to equity holders
Final dividend for 2014 : Cash
Final dividend for 2014 : Scrip
Unclaimed dividend adjustment
Total contributions by and distributions to equity holders
Transfer to reserves during the year
Balance as at 31st December 2015
Balance as at 1st January 2015

Super gain tax (Note 39.2)
Balance after super gain tax
Total comprehensive income for the year 2015
7YV[MVY[OL`LHY

7YV[MVY[OL`LHY
ESOP-2010
Bank
875,723
(391,710)

(391,710)
1,267,433
1,267,433
1,267,433

(698,807)
(698,807)
1,966,240
Rs 000
General
Reserve
(Note 44.4)

-

168,014
168,014
(90)
(90)
3,500,090
22,165,000

-
18,665,000
18,665,000
(20)
(20)
4,526,036
18,665,000

-
(168,014) 14,138,984
Other Reserves
Available
Hedge
for Sale
Reserve
Reserve (Note 44.3)
(Note 44.2)
Rs 000
Rs 000

(1,087,224)
3,826,566
28,418,252
Rs 000
Total
Equity
5,825,708

(308,233)
(839,551)
(839,551)
(1,007,461)
(96,207)
(90)
(1,847,012)
(935,848)
(3,810,090)
3,066,297 35,125,074
6,217,418

83,477
3,182,746 30,911,979
(676,765)
(676,765)
2,505,981 30,235,214
9,812
(1,342,631) (1,342,631)
(20)
(1,342,631) (1,332,839)
(2,332,393)
3,182,746 30,911,979

(556,431)
4,357,359
2,500,411
Rs 000
Retained
Earnings
(Note 45)
325
326
1,271,913
4,460,339

-
329,227
1,860,058
5,381,405
911,254

1,530,831
1,530,831

(2,497,983)

2,497,983
Rs 000
4,202,261

4,202,261
4,202,261
4,202,261

4,202,261
Rs 000
(Note 44.1)
Reserve
Revaluation
911,254

-
7YV[MVY[OL`LHY
4,470,151
4,470,151
258,918
1,530,831
4,470,151
9,812
ESOP-2010
9,812

-
7YV[MVY[OL`LHY

Rs 000
Rs 000
(Note 43.2)
Fund
(Note 43.1)
Fund
Account
Reserve
(Note 42)
Investment
Statutory Reserves
Statutory
Stated
Capital
Group
for Sale
875,723
(391,710)
(391,710)

1,267,433
1,267,433
1,267,433
(698,807)
(698,807)

1,966,240
Rs 000
(Note 44.2)
Reserve

168,014
168,014

(168,014)
Rs 000
(Note 44.3)
Reserve
Hedge
Other Reserves
Available
22,165,001
3,500,090
(90)
(90)

18,665,001
18,665,001
18,665,001
4,526,036
(20)
(20)

14,138,985
Rs 000
(Note 44.4)
Reserve
General
4,624,088
(3,829,317)
(1,847,012)
(1,007,461)
(839,551)
6,706,510
83,164

3,593,907
(781,760)
4,375,667
4,375,667
(2,286,971)
(1,342,631)
(1,342,631)
4,704,388
(558,847)

3,300,881
Rs 000
(Note 45)
Earnings
Retained
39,108,536
(935,848)
(90)
(96,207)
(839,551)
6,314,800
(308,546)

33,729,584
(781,760)
34,511,344
34,511,344
(1,332,839)
(20)
(1,342,631)
9,812
4,173,595
(1,089,640)

31,670,588
Rs 000
Fund
Shareholders
Non
94,663
(1,000)
(1,000)
4,868
24

90,795
(1,490)
92,285
92,285
(1,000)
(1,000)
4,300
(20)

88,985
Rs 000
(Note 46)
Interest
Controlling
Total
39,203,199
(936,848)
(90)
(96,207)
(840,551)
6,319,668
(308,522)

33,820,379
(783,250)
34,603,629
34,603,629
(1,333,839)
(20)
(1,343,631)
9,812
4,177,895
(1,089,660)

31,759,573
Rs 000
Equity

1.
REPORTING ENTITY
1.1
General
Sampath Bank PLC (The Bank), is a

domiciled, public limited liability company
incorporated in Sri Lanka on 10th March
1986 under the Companies Act No 17 of
1982. It is a Licensed Commercial Bank
registered under the Banking Act No 30
of 1988 (Banking Act) and amendments
thereto. The Bank was re-registered with the
Registrar General of Companies as per the
requirements of the Companies Act No 7 of
2007 (Companies Act) on 28th April 2008
under the name of Sampath Bank PLC. The
YLNPZ[LYLKVMJLVM[OL)HURPZSVJH[LKH[5V
110, Sir James Peiris Mawatha, Colombo
02. The shares of the Bank have a primary
listing on the Colombo Stock Exchange.
The staff strength of the Bank as at 31st
December 2015 was 3,993 (2014: 4,000).
1.2
Consolidated Financial
Statements
The Consolidated Financial Statements of

the Bank as at and for the year ended 31st
December 2015 comprise the Bank (Parent
Company) and its Subsidiaries (together
referred to as the Group and individually
as Group entities). The Subsidiaries of
the Bank as at 31st December 2015 were
Sampath Centre Ltd, S C Securities (Pvt)
Ltd, Siyapatha Finance PLC and Sampath
Information Technology Solutions Ltd.
Sampath Bank PLC is the ultimate parent of
the Group.
1.3
1.3.1 Bank
The Bank provides a comprehensive
YHUNLVMUHUJPHSZLY]PJLZLUJVTWHZZPUN
accepting deposits, corporate and retail
IHURPUNWYVQLJ[UHUJPUN[YHKLUHUJL
treasury and investment services, issuing
of credit cards and debit cards, off shore
banking, resident and non-resident foreign
currency operations, electronic banking
services such as: telephone banking,
internet banking and money remittance
facilities, pawning, leasing, factoring, hire
purchase, travel related services and dealing
in government securities etc.
1.3.2 Subsidiaries
Ownership of Subsidiaries as of 31st
December 2015 and 31st December 2014
is given in the below table.
The Bank invested further Rs 20 Mn in
Sampath Information Technology Solutions
Ltd (SITS) during the year ended 31st
December 2015. SITS continues as a fully
owned Subsidiary of the Bank subsequent
to the above investment.
;OLYL^LYLUVZPNUPJHU[JOHUNLZPU[OL
nature of the principal activities of the Group
K\YPUN[OLUHUJPHS`LHY\UKLYYL]PL^
2.
BASIS OF
PREPARATION
Statement of Compliance
The Consolidated Financial Statements

of the Group and the Separate Financial
Statements of the Bank, which comprise
Subsidiary
Leasing, factoring, pawning

& accepting deposits
Renting of commercial
property
Share broking
Developing software
solutions and maintenance
of hardware

Sampath Information
31st December 31st December

2015
2014
100.00%
100.00%
97.14%
100.00%
100.00%
97.14%
100.00%
100.00%
Responsibility for Financial

Statements
The Board of Directors is responsible for the

preparation and presentation of Financial
Statements of the Group and the Bank as
per Sri Lanka Accounting Standards and
the provisions of the Companies Act No 7
of 2007.
2.3
Approval of Financial
Statements by Directors
The Financial Statements of the Group as

at and for the year ended 31st December
2015 were authorized for issue by the
Board of Directors in accordance with the
resolution of the Directors on 16th February
2016.
2.4
Ownership and Principal Activities of Subsidiaries
Sampath Centre Ltd
the Statement of Financial Position,

:[H[LTLU[VM7YV[VY3VZZ:[H[LTLU[
of Comprehensive Income, Statement of
Changes in Equity, Statement of Cash Flow
and Notes to the Financial Statements
have been prepared and presented in
accordance with Sri Lanka Accounting
Standards (SLFRSs and LKASs) laid down
of Sri Lanka and in compliance with the
requirements of the Companies Act No 7
of 2007. The presentation of the Financial
Statements is also in compliance with the
requirements of the Banking Act No 30 of
1988 and amendments thereto.
2.2
2.1
The Financial Statements of all companies
PU[OL.YV\WOH]LHJVTTVUUHUJPHS`LHY
which ends on 31st December.
Principal Activities and Nature of

Operations
Basis of Measurement
The Financial Statements of the Group have

been prepared on the historical cost basis,
except for the following material items in the
Statement of Financial Position:

+LYP]H[P]LUHUJPHSPUZ[Y\TLU[ZHYL
measured at fair value (Note 22)
Available for sale investments are
measured at fair value (Note 28 &
Note 29)

-PUHUJPHSPUZ[Y\TLU[ZJSHZZPLKHZ
MHPY]HS\L[OYV\NOWYV[VYSVZZHYL
measured at fair value (Note 23 &
Note 24)
Land and buildings which are
measured at cost at the time of
acquisition subsequently measured
at revalued amounts, which are the
fair values at the date of revaluation
(Note 32)
327
2.5
3PHIPSP[PLZMVYKLULKILUL[
obligations are recognised at the
WYLZLU[]HS\LVM[OLKLULKILUL[
obligation less the fair value of the
plan assets (Note 41)
Functional and Presentation

Currency

are presented in Sri Lankan Rupees
(Rs), which is the currency of the primary
economic environment in which Sampath
Bank PLC operates. Financial information
presented in Sri Lankan Rupees has been
rounded to the nearest thousand unless
indicated otherwise. There was no change
in the Groups presentation and functional
currency during the year under review.
2.6
Presentation of Financial
Statements
The assets and liabilities of the Group

presented in the Statement of Financial
Position are grouped by nature and listed in
HUVYKLY[OH[YLLJ[Z[OLPYYLSH[P]LSPX\PKP[`
and maturity pattern. No adjustments have
ILLUTHKLMVYPUH[PVUHY`MHJ[VYZHMMLJ[PUN
the Financial Statements. An analysis on
recovery or settlement within 12 months
after the reporting date (current) and more
than 12 months after the reporting date
(non-current) is presented in the Note 54.
2.7
Materiality and Aggregation
In compliance with Sri Lanka Accounting

Standard - LKAS 01 (Presentation of
Financial Statements), each material class
of similar items is presented separately in
the Financial Statements. Items of dissimilar
nature or functions too are presented
separately unless they are immaterial.
-PUHUJPHSHZZL[ZHUKUHUJPHSSPHIPSP[PLZ
are offset and the net amount reported in
the Statement of Financial Position only
when there is a legally enforceable right to
offset the recognised amounts and there
is an intention to settle on a net basis, or
to realise the assets and settle the liability
simultaneously. Income and expenses
HYLUV[VMMZL[PU[OL:[H[LTLU[VM7YV[VY
Loss unless required or permitted by an
Accounting Standard.
328
2.8
Comparative Information
;OLJVTWHYH[P]LPUMVYTH[PVUPZYLJSHZZPLK
wherever necessary to conform to the
current years presentation the details of
which are given in Note 48 to the Financial
Statements.
2.9
;OLJHZOV^Z[H[LTLU[OHZILLUWYLWHYLK
by using the direct method in accordance
with the Sri Lanka Accounting Standard LKAS 7 (Statement of Cash Flows), whereby
gross cash receipts and gross cash
WH`TLU[ZVMVWLYH[PUNHJ[P]P[PLZUHUJL
activities and investing activities have been
recognised. Cash and cash equivalents
comprise short term, highly liquid
investments that are readily convertible to
known amounts of cash and are subject to
HUPUZPNUPJHU[YPZRVMJOHUNLZPU]HS\L
Cash and cash equivalents include cash in
hand, balances with banks, placements with
banks, money at call and short notice net of
unfavourable local & foreign bank balances.
6LJQLFDQW$FFRXQWLQJ
Judgments, Estimates and
Assumptions
The preparation of Financial Statements
of the Group in conformity with Sri Lanka
Accounting Standards requires the
management to make judgments, estimates
and assumptions that affect the application
of accounting policies and the reported
amounts of assets, liabilities, income and
expenses. Actual results may differ from
these estimates.
Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the
period in which the estimate is revised and
in any future periods affected.
;OLTVZ[ZPNUPJHU[HYLHZVMLZ[PTH[PVU
uncertainty and critical judgments in
applying accounting policies that have most
ZPNUPJHU[LMMLJ[VU[OLHTV\U[ZYLJVNUPZLK
in the Financial Statements of the Group are
as follows:
2.10.1 Going Concern

The Directors have made an assessment
of the Groups ability to continue as a going
JVUJLYUHUKHYLZH[PZLK[OH[P[OHZ[OL
resources to continue in business for the
foreseeable future. Furthermore, Board is
not aware of any material uncertainties that
TH`JHZ[ZPNUPJHU[KV\I[\WVU[OL.YV\WZ
ability to continue as a going concern and
they do not intend either to liquidate or to
cease operations of the Group. Therefore,
the Financial Statements continue to be
prepared on the going concern basis.
2.10.2 Impairment Losses on Loans and
Advances
;OL.YV\WYL]PL^ZP[ZPUKP]PK\HSS`ZPNUPJHU[
loans and advances at each reporting date
to assess whether an impairment loss
should be recorded in the Statement of
7YV[VY3VZZ0UWHY[PJ\SHYTHUHNLTLU[Z
judgment is required in the estimation of
[OLHTV\U[HUK[PTPUNVMM\[\YLJHZOV^Z
when determining the impairment loss.
These estimates are based on assumptions
about a number of factors and actual results
may differ, resulting in future changes to the
impairment allowance made.
Loans and advances that have been
assessed individually and found to be not
PTWHPYLKHUKHSSPUKP]PK\HSS`PUZPNUPJHU[
loans and advances are then assessed
collectively, by categorising them
into groups of assets with similar risk
characteristics, to determine whether a
provision should be made due to incurred
loss events for which there is objective
evidence, but the effects of which are not
yet evident. The collective assessment takes
account of data from the loan portfolio such
as credit quality, portfolio size, concentration
etc. as well as judgments based on current
economic conditions. Impairment of loans
and advances is discussed in detail under
Note 3.3.8 (a) to the Financial Statements.
2.10.3 Impairment of Available for Sale
Investments
The Group review its debt securities
JSHZZPLKHZH]HPSHISLMVYZHSLH[LHJO
reporting date to assess whether they
are impaired. Objective evidence that an
available for sale debt security is impaired

PUJS\KLZHTVUNV[OLY[OPUNZZPNUPJHU[
UHUJPHSKPMJ\S[`VM[OLPZZ\LYHIYLHJOVM
contract such as a default or delinquency
in interest or principal payments etc. The
Group also record impairment charges
on available for sale equity investments
ÔLU[OLYLPZHZPNUPJHU[VYWYVSVUNLK
decline in fair value below their cost. The
KL[LYTPUH[PVUVMÔH[PZZPNUPJHU[VY
prolonged requires judgment. The Group
NLULYHSS`[YLH[ZZPNUPJHU[HZVY
more and prolonged as greater than six
months. In addition, the Group evaluates,
among other factors, historical share price
movements, duration and extent up to
which the fair value of an investment is less
than its cost.
2.10.4 Fair Value of Financial Instruments
;OLKL[LYTPUH[PVUVMMHPY]HS\LZVMUHUJPHS
HZZL[ZHUKUHUJPHSSPHIPSP[PLZYLJVYKLK
on the Statement of Financial Position
for which there is no observable market
price are determined using a variety of
valuation techniques that include the use
of mathematical models. The valuation of
UHUJPHSPUZ[Y\TLU[ZPZKLZJYPILKPUTVYL
detail in Note 3.3.11.
The Group measures fair value using the fair
]HS\LOPLYHYJO`[OH[YLLJ[Z[OLZPNUPJHUJL
of input used in making measurements. The
fair value hierarchy is given in Note 52.
2.10.5 Financial Assets and Liabilities
*SHZZPJH[PVU
The Groups accounting policies provide
scope for assets and liabilities to be
JSHZZPLKH[PUJLW[PVUPU[VKPMMLYLU[
HJJV\U[PUNJH[LNVYPLZ;OLJSHZZPJH[PVU
VMUHUJPHSPUZ[Y\TLU[ZPZNP]LUPU5V[L
18, Analysis of Financial Instruments by
Measurement Basis.
2.10.6 Taxation
The Group is subject to income tax and
judgment is required to determine the
total provision for current, deferred and
other taxes due to the uncertainties that
exist with respect to the interpretation
of the applicable tax laws, at the time of
preparation of these Financial Statements.
+LULK)LUL[7SHUZ
;OLJVZ[VM[OLKLULKILUL[WSHUZHUK
the present value of their obligations are
determined using actuarial valuations.
The actuarial valuation involves making
assumptions about discount rates, future
salary increases, mortality rates and
possible future pension increases if any.
Due to the long term nature of these plans,
Z\JOLZ[PTH[LZHYLZ\IQLJ[[VZPNUPJHU[
uncertainty. All assumptions are reviewed at
each reporting date.
In determining the appropriate discount rate,
management considers the interest rates of
Sri Lanka government bonds with maturities
corresponding to the expected duration of
[OLKLULKILUL[VISPNH[PVU;OLTVY[HSP[`
rate is based on publicly available mortality
tables. Future salary increases and pension
increases are based on expected future
PUH[PVUYH[LHUKL_WLJ[LKM\[\YLZHSHY`
increase rates of the Group.
2.10.8 Fair Value of Property, Plant and
Equipment
The freehold land and buildings of the
.YV\WHYLYLLJ[LKH[MHPY]HS\LH[[OL
date of revaluation less any accumulated
depreciation and impairment losses. The
Group engages independent valuation
specialists to determine fair value of freehold
lands and buildings in terms of the Sri Lanka
Accounting Standard -SLFRS 13, (Fair Value
Measurement). The details of freehold land
and buildings including methods of valuation
are given in Note 32 to the Financial
Statements.
2.10.9 Useful Life-time of the Property,
Plant and Equipment
The Group reviews the residual values,
useful lives and methods of depreciation
of property, plant and equipment at
each reporting date. Judgment of the
management is exercised in the estimation
of these values, rates, methods and hence
they are subject to uncertainty.
2.10.10 Commitments and Contingencies
All discernible risks are accounted for
in determining the amount of all known
liabilities. Contingent liabilities are possible

obligations whose existence will be
JVUYTLKVUSÌ`\UJLY[HPUM\[\YLL]LU[Z
or present obligations where the transfer of
LJVUVTPJILUL[PZUV[WYVIHISLVYJHUUV[
be reliably measured. Contingent liabilities
are not recognised in the Statement of
Financial Position but are disclosed unless
they are remote.
*SHZZPJH[PVUVM0U]LZ[TLU[
7YVWLY[PLZ
Management requires using its judgment
[VKL[LYTPULÔL[OLYHWYVWLY[`X\HSPLZ
as an investment property. The Group
has developed criteria so it can exercise
its judgment consistently. A property
that is held to earn rentals or for capital
appreciation or both and which generates
JHZOV^ZSHYNLS`PUKLWLUKLU[S`VM[OLV[OLY
assets held by the Group are accounted
for as investment properties. On the other
hand, a property that is used for operations
or in the process of providing services or for
administrative purposes and which do not
KPYLJ[S`NLULYH[LJHZOV^ZHZHZ[HUKHSVUL
asset are accounted for as property, plant
and equipment. The Group assesses on an
HUU\HSIHZPZ[OLHJJV\U[PUNJSHZZPJH[PVUVM
its properties taking into consideration the
current use of such properties. Currently
the Group does not have any investment
property.
3.
GENERAL
ACCOUNTING
POLICIES
The accounting policies set out below have

been applied consistently to all periods
presented in these Financial Statements,
unless otherwise indicated.
3.1 Basis of Consolidation

The Groups Financial Statements comprise
consolidation of the Financial Statements of
the Bank and its Subsidiaries in terms of the
Sri Lanka Accounting Standard - SLFRS 10
(Consolidated Financial Statements). The
Banks Financial Statements comprise the
amalgamation of the Financial Statements
of the Domestic Banking Unit and the OffShore Banking Unit.
329
3.1.1 Business Combinations and

Goodwill
Business combinations are accounted
for using the acquisition method as per
the requirements of Sri Lanka Accounting
Standard - SLFRS 03 (Business
Combinations).
The Group measures goodwill as the fair
value of the consideration transferred
including the recognised amount of any
non-controlling interest in the acquiree, less
the net recognised amount (generally fair
]HS\LVM[OLPKLU[PHISLHZZL[ZHJX\PYLK
and liabilities assumed, all measured as
of the acquisition date. When the excess
is negative, a bargain purchase gain is
YLJVNUPZLKPTTLKPH[LS`PUWYV[VYSVZZ
The Group elects on a transaction-bytransaction basis whether to measure
non-controlling interest at its fair value, or
at its proportionate share of the recognised
HTV\U[VM[OLPKLU[PHISLUL[HZZL[ZH[
the acquisition date. The consideration
transferred does not include amounts
related to the settlement of pre-existing
relationships. Such amounts are generally
YLJVNUPZLKPUWYV[VYSVZZ;YHUZHJ[PVU
costs, other than those associated with the
issue of debt or equity securities, that the
Group incurs in connection with a business
combination are expensed as incurred.
3.2
Foreign Currency Transactions

and Balances
All foreign currency transactions are

translated into the functional currency,
which is Sri Lankan Rupees, using the
exchange rates prevailing at the dates of the
transactions were affected.
Monetary assets and liabilities denominated
in foreign currencies at the reporting date
are translated to Sri Lanka Rupees using
the spot foreign exchange rate ruling at
that date and all differences arising on
non-trading activities are taken to Other
VWLYH[PUNPUJVTLPU[OL:[H[LTLU[VM7YV[
or Loss. The foreign currency gain or loss
on monetary items is the difference between
amortised cost in the functional currency
at the beginning of the period, adjusted for
effective interest and payments during the
period, and the amortised cost in foreign
330
currency translated at the rates of exchange

prevailing at the end of the reporting period.
Non monetary items in a foreign currency
that are measured in terms of historical cost
are translated using the exchange rates
as at the dates of the initial transactions.
Non monetary items in foreign currency
measured at fair value are translated using
the exchange rates at the date when the fair
value was determined.
Foreign exchange differences arising on
the settlement or reporting of monetary
items at rates different from those which
were initially recorded are dealt with in the
:[H[LTLU[VM7YV[VY3VZZ/V^L]LYMVYLPNU
currency differences arising on available-forZHSLLX\P[`PUZ[Y\TLU[ZUHUJPHSSPHIPSP[PLZ
designated as a hedge of a net investment
in a foreign operation, or qualifying cash
VÔLKNLZHYLYLJVNUPZLKPUV[OLY
comprehensive income.
Forward exchange contracts are valued
at the forward market rates ruling on the
reporting date. Resulting net unrealised
gains or losses are dealt within the
:[H[LTLU[VM7YV[VY3VZZ\UKLY5L[
Trading Income.
3.3
Financial Instruments - Initial

5HFRJQLWLRQ&ODVVLFDWLRQDQG
Subsequent Measurement
3.3.1 Date of Recognition

(SSUHUJPHSHZZL[ZHUKSPHIPSP[PLZHYLPUP[PHSS`
recognised on the trade date, i.e. the date
that the Group becomes a party to the
contractual provisions of the instrument.
This includes regular way trades. Regular
way trade means purchases or sales of
UHUJPHSHZZL[Z[OH[YLX\PYLKLSP]LY`VM
assets within the time frame generally
established by regulation or convention in
the market place.
3.3.2 Recognition and Initial
Measurement of Financial
Instruments
;OLJSHZZPJH[PVUVMUHUJPHSPUZ[Y\TLU[Z
at the initial recognition depends on their
purpose and characteristics and the
managements intention in acquiring them.
-\Y[OLYKL[HPSZVUJSHZZPJH[PVUVMUHUJPHS
HZZL[ZHUKUHUJPHSSPHIPSP[PLZHYLNP]LU\UKLY
Notes 3.3.3 & Notes 3.3.4 respectively. All

UHUJPHSPUZ[Y\TLU[ZHYLTLHZ\YLKPUP[PHSS`
at their fair value plus transaction costs that
are directly attributable to acquisition or
PZZ\LVMZ\JOUHUJPHSPUZ[Y\TLU[ZL_JLW[
PU[OLJHZLVMUHUJPHSHZZL[ZHUKUHUJPHS
SPHIPSP[PLZH[MHPY]HS\L[OYV\NOWYV[VYSVZZ
as per the Sri Lanka Accounting Standard LKAS 39 (Financial Instruments: Recognition
and Measurement). Transaction cost in
YLSH[PVU[VUHUJPHSHZZL[ZHUKUHUJPHS
SPHIPSP[PLZH[MHPY]HS\L[OYV\NOWYV[VYSVZZ
HYLKLHS[^P[OPU[OL:[H[LTLU[VM7YV[VY
Loss.
H+H`7YV[VY3VZZ
When the transaction price differs from
the fair value of other observable current
market transactions in the same instrument,
or based on a valuation technique whose
variables include only data from observable
markets, the Group recognises the
difference between the transaction price
HUKMHPY]HS\LH+H`WYV[VYSVZZPU[OL
:[H[LTLU[VM7YV[VY3VZZV]LY[OL[LUVYVM
[OLUHUJPHSPUZ[Y\TLU[\ZPUN[OLLMMLJ[P]L
interest rate method. In cases where fair
value is determined using data which is
not observable, the difference between the
transaction price and model value is only
YLJVNUPZLKPU[OL:[H[LTLU[VM7YV[VY
Loss when the inputs become observable,
or when the instrument is derecognised.
*SHZZPJH[PVUHUK:\IZLX\LU[
Measurement of Financial Assets
([[OLPUJLW[PVUHUHUJPHSHZZL[PZ
JSHZZPLKPU[VVULVM[OLMVSSV^PUN!
a.
I
c.
d.
Financial assets at fair value through

WYV[VYSVZZ
i.
Financial assets held for
trading
ii.
Financial assets designated at
MHPY]HS\L[OYV\NOWYV[VYSVZZ
/LSK[VTH[\YP[ÙHUJPHSHZZL[Z
Loans and receivables
Financial assets available for sale
;OLZ\IZLX\LU[TLHZ\YLTLU[VMUHUJPHS
HZZL[ZKLWLUKZVU[OLPYJSHZZPJH[PVU
H-PUHUJPHS(ZZL[ZH[-HPY=HS\L
[OYV\NO7YV[VY3VZZ
(UHUJPHSHZZL[PZJSHZZPLKHZMHPY]HS\L
[OYV\NOWYV[VYSVZZPMP[PZOLSKMVY[YHKPUN
VYPZKLZPNUH[LKH[MHPY]HS\L[OYV\NOWYV[
or loss.
HP-PUHUJPHS(ZZL[Z/LSKMVY
;YHKPUN
-PUHUJPHSHZZL[ZHYLJSHZZPLKHZOLSKMVY
trading if they are acquired principally for
the purpose of selling or repurchasing
in the near term or holds as a part of a
portfolio that is managed together for
ZOVY[[LYTWYV[VYWVZP[PVU[HRPUN;OPZ
JH[LNVY`HSZVPUJS\KLZKLYP]H[P]LUHUJPHS
instruments entered into by the Group that
are not designated as hedging instruments
PUOLKNLYLSH[PVUZOPWZHZKLULKI`:YP
Lanka Accounting Standard - LKAS 39
(Financial Instruments: Recognition and
Measurement).
Financial assets held for trading are
recorded in the Statement of Financial
Position at fair value. Changes in fair value
are recognised in Net trading income.
Dividend income is recorded in Net trading
income when the right to receive the
payment has been established. Interest
PUJVTLLHYULKMYVTUHUJPHSHZZL[ZOLSKMVY
trading is recorded under Interest income:
Financial assets held for trading using the
effective interest rate.
The Group evaluates its held for trading
asset portfolio, other than derivatives, to
determine whether the intention to sell
them in the near future is still appropriate.
When the Group is unable to trade these
UHUJPHSHZZL[ZK\L[VPUHJ[P]LTHYRL[ZHUK
managements intention to sell them in the
MVYLZLLHISLM\[\YLZPNUPJHU[S`JOHUNLZ[OL
.YV\WTH`LSLJ[[VYLJSHZZPM`[OLZLUHUJPHS
assets.
Financial assets held for trading include
instruments such as government securities
and equity instruments that have been
acquired principally for the purpose of
selling or repurchasing in the near term and
derivatives, including separated embedded
derivatives unless they are designated as
effective hedging instruments.
+L[HPSZVMUHUJPHSHZZL[ZOLSKMVY[YHKPUN
are given in Notes 23 & 24 to the Financial
Statements.
HPP-PUHUJPHS(ZZL[Z+LZPNUH[LKH[
-HPY=HS\L[OYV\NO7YV[VY3VZZ
;OL.YV\WKLZPNUH[LZUHUJPHSHZZL[ZH[MHPY
]HS\L[OYV\NOWYV[VYSVZZPU[OLMVSSV^PUN
circumstances:
Such designation eliminates or
ZPNUPJHU[S`YLK\JLZTLHZ\YLTLU[VY
recognition inconsistency that would
otherwise arise from measuring the
assets
The assets are part of a group of
UHUJPHSHZZL[ZUHUJPHSSPHIPSP[PLZ
or both, which are managed and
their performance evaluated on a
fair value basis, in accordance with
a documented risk management or
investment strategy
The asset contains one or more
embedded derivatives that
ZPNUPJHU[S`TVKPM`[OLJHZOV^Z
that would otherwise have been
required under the contract
Financial assets designated at fair value
[OYV\NOWYV[VYSVZZHYLYLJVYKLKPU[OL
Statement of Financial Position at fair
value. Changes in fair value are recorded
PU5L[NHPUVYSVZZVUUHUJPHSPUZ[Y\TLU[Z
KLZPNUH[LKH[MHPY]HS\L[OYV\NOWYV[VY
SVZZPU[OL:[H[LTLU[VM7YV[VY3VZZ
Interest earned is accrued under Interest
income, using the effective interest rate
method, while dividend income is recorded
under Other operating income when the
right to receive the payment has been
established.
;OL.YV\WOHZUV[KLZPNUH[LKHUÙHUJPHS
assets upon initial recognition as designated
H[MHPY]HS\L[OYV\NOWYV[VYSVZZ
I/LSK[V4H[\YP[`-PUHUJPHS(ZZL[Z
/LSK[VTH[\YP[ÙHUJPHSHZZL[ZHYLUVU
KLYP]H[P]LUHUJPHSHZZL[Z^P[O_LKVY
KL[LYTPUHISLWH`TLU[ZHUK_LKTH[\YP[PLZ
which the Group has the intention and
ability to hold to maturity. After the initial
YLJVNUP[PVUOLSK[VTH[\YP[ÙHUJPHS
investments are subsequently measured at
amortised cost using the effective interest
rate, less impairment. The amortisation
is included in Interest income in the

:[H[LTLU[VM7YV[VY3VZZ;OLSVZZLZ
arising from impairment of such investments
HYLYLJVNUPZLKPU[OL:[H[LTLU[VM7YV[VY
Loss.
Details of Financial investments - held
to maturity are given in Note 30 to the
J3VHUZHUK9LJLP]HISLZ
Loans and receivables include non
KLYP]H[P]LUHUJPHSHZZL[Z^P[O_LKVY
determinable payments that are not quoted
in an active market, other than:
Those that the Group intends to sell
immediately or in the near term and
those that the Group, upon initial
recognition, designates as fair value
[OYV\NOWYV[VYSVZZ
Those that the Group, upon initial
recognition, designates as available
for sale
Those for which the Group may not
recover substantially all of its initial
investment through contractual cash
V^ZV[OLY[OHUILJH\ZLVMJYLKP[
deterioration
After initial measurement, loans and
receivables are subsequently measured
at amortised cost using the effective
interest rate, less allowance for impairment.
The amortisation is included in Interest
PUJVTLPU[OL:[H[LTLU[VM7YV[VY3VZZ
The losses arising from impairment are
recognised in Impairment charge / reversal
for loans and other losses in the Statement
VM7YV[VY3VZZ
Loans and receivables include cash & cash
equivalents, balances with Central Bank,
placement with banks, reverse repurchase
agreements, loans to & receivables from
banks and other customers etc.
K-PUHUJPHS(ZZL[Z(]HPSHISLMVY:HSL
(]HPSHISLMVYZHSLUHUJPHSHZZL[ZPUJS\KL
equity and debt securities. Equity
PU]LZ[TLU[ZJSHZZPLKHZ(]HPSHISLMVYZHSL
HYL[OVZLÔPJOHYLULP[OLYJSHZZPLKHZ
/LSKMVY[YHKPUNUVY+LZPNUH[LKH[MHPY
]HS\L[OYV\NOWYV[VYSVZZ+LI[ZLJ\YP[PLZ
in this category are intended to be held
MVYHUPUKLUP[LWLYPVKVM[PTLHUKTH`
331
be sold in response to needs for liquidity

or in response to changes in the market
conditions. The Group has not designated
any loans or receivables as available for
sale.
After initial measurement, available for sale
UHUJPHSPU]LZ[TLU[ZHYLZ\IZLX\LU[S`
measured at fair value. Unrealised gains
and losses are recognised directly in
equity through Other comprehensive
income / expense in the Available for sale
reserve. When the investment is disposed
of, the cumulative gain or loss previously
recognised in equity is recognised in the
:[H[LTLU[VM7YV[VY3VZZ\UKLY6[OLY
operating income. Where the Group holds
more than one investment in the same
security, they are deemed to be disposed of
VUHYZ[PUYZ[V\[IHZPZ0U[LYLZ[LHYULK
ÔPSZ[OVSKPUN(]HPSHISLMVYZHSLUHUJPHS
investments is reported as Interest income
using the effective interest rate. Dividend
earned whilst holding Available for sale
UHUJPHSPU]LZ[TLU[ZHYLYLJVNUPZLKPU
[OL:[H[LTLU[VM7YV[VY3VZZHZ6[OLY
operating income when the right to
receive the payment has been established.
The losses arising from impairment of
such investments are recognised in
[OL:[H[LTLU[VM7YV[VY3VZZ\UKLY
Impairment charge for loans and other
losses and removed from the Available for
sale reserve.
Details of Financial assets - available for
sale are given in Note 28 & Note 29 to the
*SHZZPJH[PVUHUK:\IZLX\LU[
Measurement of Financial Liabilities
At the inception, the Group determines
[OLJSHZZPJH[PVUVMP[ZUHUJPHSSPHIPSP[PLZ
(JJVYKPUNSÙHUJPHSSPHIPSP[PLZHYLJSHZZPLK
as:
a.
b.
332
Financial liabilities at fair value

[OYV\NOWYV[VYSVZZ
i.
Financial liabilities held for
trading
ii.
Financial liabilities designated
H[MHPY]HS\L[OYV\NOWYV[VY
loss
Financial liabilities at amortised cost
H-PUHUJPHS3PHIPSP[PLZH[-HPY=HS\L
[OYV\NO7YV[VY3VZZ
-PUHUJPHSSPHIPSP[PLZH[MHPY]HS\L[OYV\NOWYV[
VYSVZZPUJS\KLUHUJPHSSPHIPSP[PLZOLSKMVY
[YHKPUNHUKUHUJPHSSPHIPSP[PLZKLZPNUH[LK
upon initial recognition as fair value
[OYV\NOWYV[VYSVZZ:\IZLX\LU[[VPUP[PHS
YLJVNUP[PVUUHUJPHSSPHIPSP[PLZH[MHPY]HS\L
[OYV\NOWYV[VYSVZZHYLTLHZ\YLKH[MHPY
value and changes there in are recognised
PUWYV[VYSVZZ
HP-PUHUJPHS3PHIPSP[PLZOLSKMVY
;YHKPUN
-PUHUJPHSSPHIPSP[PLZHYLJSHZZPLKHZOLSKMVY
trading if they are acquired principally for
the purpose of selling or repurchasing in the
near term or holds as a part of a portfolio
that is managed together for short-term
WYV[VYWVZP[PVU[HRPUN;OPZJH[LNVY`
PUJS\KLZKLYP]H[P]LUHUJPHSPUZ[Y\TLU[Z
entered into by the Group that are not
designated as hedging instruments in
OLKNLYLSH[PVUZOPWZHZKLULKI`[OL:YP
Lanka Accounting Standard - LKAS 39
Measurement).
HPP-PUHUJPHS3PHIPSP[PLZ+LZPNUH[LK
H[-HPY=HS\L[OYV\NO7YV[VY
3VZZ
;OL.YV\WKLZPNUH[LZUHUJPHSSPHIPSP[PLZ
H[MHPY]HS\L[OYV\NOWYV[VYSVZZPU[OL
following circumstances:
Such designation eliminates or
ZPNUPJHU[S`YLK\JLZTLHZ\YLTLU[VY
recognition inconsistency that would
otherwise arise from measuring the
liabilities
The liabilities are part of a group of
UHUJPHSSPHIPSP[PLZUHUJPHSHZZL[Z
or both, which are managed and
their performance evaluated on a
fair value basis, in accordance with
a documented risk management or
investment strategy
The liability contains one or
more embedded derivatives that
ZPNUPJHU[S`TVKPM`[OLJHZOV^Z
that would otherwise have been
required under the contract
;OL.YV\WOHZUV[KLZPNUH[LKHUÙHUJPHS
liabilities upon initial recognition as fair value
[OYV\NOWYV[VYSVZZ
I-PUHUJPHS3PHIPSP[PLZH[(TVY[PZLK
*VZ[
Financial instruments issued by the Group
[OH[HYLUV[JSHZZPLKHZMHPY]HS\L[OYV\NO
WYV[VYSVZZHYLJSHZZPLKHZUHUJPHS
liabilities at amortised cost under Due to
banks, Due to other customers, Securities
sold under repurchase agreements and
Debt issued and other borrowed funds
as appropriate, where the substance of
the contractual arrangement results in the
Group having an obligation either to deliver
JHZOVYHUV[OLYUHUJPHSHZZL[[VHUV[OLY
LU[P[`VY[VL_JOHUNLUHUJPHSHZZL[ZVY
UHUJPHSSPHIPSP[PLZ^P[OHUV[OLYLU[P[`\UKLY
conditions that are potentially unfavourable
to the entity or settling the obligation by
delivering variable number of entitys own
equity instruments.
(M[LYPUP[PHSYLJVNUP[PVUZ\JOUHUJPHS
liabilities are subsequently measured at
amortised cost using the effective interest
rate method. Amortisation is included in
0U[LYLZ[L_WLUZLZPU[OL:[H[LTLU[VM7YV[
or Loss. Gains and losses are recognised
PU[OL:[H[LTLU[VM7YV[VY3VZZÔLU[OL
liabilities are derecognised.
;OLKL[HPSZVM[OL.YV\WZUHUJPHSSPHIPSP[PLZ
at amortised cost are shown in Note 36
(Due to banks), Note 37 (Due to other
customers) and Note 38 (Debt issued and
other borrowed funds) to the Financial
Statements.
9LJSHZZPJH[PVUVM-PUHUJPHS
Instruments
H9LJSHZZPJH[PVUVM-PUHUJPHS
0UZ[Y\TLU[Z([MHPY]HS\L[OYV\NO
WYV[VYSVZZ
The Group does not reclassify derivative
UHUJPHSPUZ[Y\TLU[ZV\[VM[OLMHPY]HS\L
[OYV\NOWYV[VYSVZZJH[LNVY`ÔPSLP[PZ
held or issued.
5VUKLYP]H[P]LUHUJPHSPUZ[Y\TLU[Z
KLZPNUH[LKH[MHPY]HS\L[OYV\NOWYV[VYSVZZ
\WVUPUP[PHSYLJVNUP[PVUHYLUV[YLJSHZZPLK
Z\IZLX\LU[S`V\[VMMHPY]HS\L[OYV\NOWYV[
or loss category.
The Group may, in rare circumstances,
YLJSHZZPMÙHUJPHSPUZ[Y\TLU[ZV\[VMMHPY
]HS\L[OYV\NOWYV[VYSVZZJH[LNVY`PM
;OLMHPY]HS\LVMUHUJPHSPUZ[Y\TLU[ZH[
[OLKH[LVMYLJSHZZPJH[PVUPZ[YLH[LKHZ[OL
UL^JVZ[VYHTVY[PZLKJVZ[VM[OLUHUJPHS
PUZ[Y\TLU[HM[LYYLJSHZZPJH[PVU+PMMLYLUJL
between the new amortised cost and
the maturity value is amortised over the
remaining life of the asset using the effective
interest rate. Any gain or loss already
recognised in Other Comprehensive Income
PUYLZWLJ[VM[OLYLJSHZZPLKUHUJPHS
PUZ[Y\TLU[\U[PS[OLKH[LVMYLJSHZZPJH[PVUPZ
accounted as follows.
L
)LQDQFLDODVVHWVZLWK[HG
maturity: Gain or loss recognised
\W[V[OLKH[LVMYLJSHZZPJH[PVU
PZHTVY[PZLK[VWYV[VYSVZZV]LY
the remaining life of the investment
using the effective interest rate. If
[OLUHUJPHSHZZL[PZZ\IZLX\LU[S`
impaired, any previous gain or loss
that has been recognised in other
JVTWYLOLUZP]LPUJVTLPZYLJSHZZPLK
MYVTLX\P[`[VWYV[VYSVZZ
UHUJPHSHZZL[ILMVYLYLJSHZZPJH[PVUHUKMHPY
value is recognised in equity through other
LL
I9LJSHZZPJH[PVUVM(]HPSHISLMVY
ZHSL-PUHUJPHS0UZ[Y\TLU[Z
;OL.YV\WTH`YLJSHZZPMÙHUJPHSHZZL[Z
out of available for sale category as a result
of change in intention or ability or in rare
circumstances that a reliable measure of fair
value is no longer available.
0MHUHUJPHSHZZL[PZYLJSHZZPLKHUKPM
the Group subsequently increases its
estimates of future cash receipts as a
result of increased recoverability of those
cash receipts, the effect of that increase is
recognised as an adjustment to the effective
interest rate from the date of the change in
estimate rather than an adjustment to the
carrying amount of the asset at the date of
change in estimate.
3.3.6 Derecognition of Financial Assets

and Liabilities
H+LYLJVNUP[PVUVM-PUHUJPHS(ZZL[Z
;OL.YV\WKLYLJVNUPZLZHUHUJPHSHZZL[
VYÔLYLHWWSPJHISLHWHY[VMHUHUJPHS
HZZL[VYWHY[VMHNYV\WVMZPTPSHYUHUJPHS
assets) when:

[OLYPNO[Z[VYLJLP]LJHZOV^ZMYVT
the asset have expired; or
the Group has transferred its rights to
YLJLP]LJHZOV^ZMYVT[OLHZZL[VY
has assumed an obligation to pay
[OLYLJLP]LKJHZOV^ZPUM\SS^P[OV\[
material delay to a third party under
a pass-through arrangement and
either the Group has transferred
substantially all the risks and rewards
of the asset or the Group has neither
transferred nor retained substantially
all the risks and rewards of the asset,
but has transferred control of the
asset
(UHUJPHSHZZL[JSHZZPLKHZH]HPSHISLMVY
ZHSL[OH[^V\SKOH]LTL[[OLKLUP[PVU
of loans and receivables at the initial
YLJVNUP[PVUTHÌLYLJSHZZPLKV\[VM
available for sale category to the loans and
receivables category if the Group has the
intention and ability to hold such asset for
the foreseeable future or until maturity.
J9LJSHZZPJH[PVUVM/LSK[V
TH[\YP[`-PUHUJPHS0UZ[Y\TLU[Z
As a result of a change in intention or ability,
if it is no longer appropriate to classify an
investment as held to maturity, Group may
YLJSHZZPM`Z\JOUHUJPHSHZZL[ZHZH]HPSHISL
for sale and re- measured at fair value. Any
difference between the carrying value of the
6UKLYLJVNUP[PVUVMHUHUJPHSHZZL[[OL
difference between the carrying amount of
the asset (or the carrying amount allocated
to the portion of the asset derecognised)
and the sum of the consideration received
(including any new asset obtained less any
new liability assumed) and any cumulative
gain or loss that had been recognised in
such instruments are no longer held for

the purpose of selling or repurchasing in
the near term notwithstanding that such
UHUJPHSPUZ[Y\TLU[ZTHÒH]LILLU
acquired principally for the purpose of
selling or repurchasing in the near term.
-PUHUJPHSHZZL[ZJSHZZPLKHZMHPY]HS\L
[OYV\NOWYV[VYSVZZH[[OLPUP[PHSYLJVNUP[PVU
ÔPJO^V\SKOH]LHSZVTL[[OLKLUP[PVU
of loans and receivables as at that date
PZYLJSHZZPLKV\[VM[OLMHPY]HS\L[OYV\NO
WYV[VYSVZZJH[LNVY`VUS`PM[OL.YV\WOHZ
the intention and ability to hold such asset
for the foreseeable future or until maturity.
;OLMHPY]HS\LVMUHUJPHSPUZ[Y\TLU[ZH[
[OLKH[LVMYLJSHZZPJH[PVUPZ[YLH[LKHZ[OL
UL^JVZ[VYHTVY[PZLKJVZ[VM[OLUHUJPHS
PUZ[Y\TLU[HM[LYYLJSHZZPJH[PVU(U`NHPU
or loss already recognised in respect of the
YLJSHZZPLKUHUJPHSPUZ[Y\TLU[\U[PS[OL
KH[LVMYLJSHZZPJH[PVUPZUV[YL]LYZLK[V[OL
0MHUHUJPHSHZZL[PZYLJSHZZPLKHUKPM
the Group subsequently increases its
estimates of future cash receipts as a
result of increased recoverability of those
cash receipts, the effect of that increase is
recognised as an adjustment to the effective
interest rate from the date of the change in
estimate rather than an adjustment to the
carrying amount of the asset at the date of
change in estimate.
;OL.YV\WKVLZUV[YLJSHZZPM`HUÙHUJPHS
PUZ[Y\TLU[PU[V[OL-HPY]HS\L[OYV\NOWYV[
or loss category after initial recognition.
)LQDQFLDODVVHWVZLWKRXW[HG
maturity: Gain or loss recognised
\W[V[OLKH[LVMYLJSHZZPJH[PVU
PZYLJVNUPZLKPUWYV[VYSVZZVUS`
ÔLU[OLUHUJPHSHZZL[PZZVSKVY
V[OLY^PZLKPZWVZLKVM0M[OLUHUJPHS
asset is subsequently impaired, any
previous gain or loss that has been
recognised in other comprehensive
PUJVTLPZYLJSHZZPLKMYVTLX\P[`[V
WYV[VYSVZZ
/V^L]LYPM[OL.YV\W^LYL[VZLSSVY
YLJSHZZPM`TVYL[OHUHUPUZPNUPJHU[
amount of held to maturity investments
before maturity [other than in certain
ZWLJPJJPYJ\TZ[HUJLZWLYTP[[LKPU[OL
Sri Lanka Accounting Standard - LKAS 39
Measurement)], the entire category would
IL[HPU[LKHUK^V\SKOH]L[VILYLJSHZZPLK
as Available for sale. Furthermore, the
Group would be prohibited from classifying
HUÙHUJPHSHZZL[HZ/LSK[VTH[\YP[`
during the following two years
(IV]LYLJSHZZPJH[PVUZHYLH[[OLLSLJ[PVU
of management and determined on an
instrument by instrument basis. The Group
OHZUV[YLJSHZZPLKHUÙHUJPHSPUZ[Y\TLU[
during the year.
333
other comprehensive income is recognised

PUWYV[VYSVZZ
When the Group has transferred its rights
[VYLJLP]LJHZOV^ZMYVTHUHZZL[VYOHZ
entered into a pass-through arrangement
and has neither transferred nor retained
substantially all of the risks and rewards
of the asset nor transferred control of the
asset, the asset is recognised to the extent
of the Groups continuing involvement in
the asset. In that case, the Group also
recognises an associated liability. The
transferred asset and the associated liability
HYLTLHZ\YLKVUHIHZPZ[OH[YLLJ[Z[OL
rights and obligations that the Group has
retained.
When the Groups continuing involvement
that takes the form of guaranteeing
the transferred asset, the extent of the
continuing involvement is measured at
the lower of the original carrying amount
of the asset and the maximum amount of
consideration received by the Group that
the Group could be required to repay.
I+LYLJVNUP[PVUVM-PUHUJPHS
3PHIPSP[PLZ
(UHUJPHSSPHIPSP[`PZKLYLJVNUPZLKÔLU[OL
obligation under the liability is discharged
or cancelled or expired. Where an existing
UHUJPHSSPHIPSP[`PZYLWSHJLKI`HUV[OLYMYVT
the same lender on substantially different
terms or the terms of an existing liability are
Z\IZ[HU[PHSS`TVKPLKZ\JOHUL_JOHUNLVY
TVKPJH[PVUPZ[YLH[LKHZHKLYLJVNUP[PVUVM
the original liability and the recognition of a
new liability.
The difference between the carrying value
VM[OLVYPNPUHSUHUJPHSSPHIPSP[`HUK[OL
JVUZPKLYH[PVUWHPKPZYLJVNUPZLKPUWYV[VY
loss.
J9LW\YJOHZLHUK9L]LYZL
9LW\YJOHZL(NYLLTLU[Z
Securities sold under agreement to
YLW\YJOHZLH[HZWLJPLKM\[\YLKH[LHYL
not derecognised from the Statement of
Financial Position as the Group retains
substantially all of the risks and rewards
of ownership. The corresponding cash
received is recognised in the Statement
of Financial Position as a liability with
334
a corresponding obligation to return it,

including accrued interest under Securities
sold under repurchase agreements,
YLLJ[PUN[OL[YHUZHJ[PVUZLJVUVTPJ
substance to the Group. The difference
between the sale and repurchase prices is
treated as interest expense and is accrued
over the life of the agreement using the
effective interest rate. When the Group has
the right to sell or repledge the securities,
[OL.YV\WYLJSHZZPLZ[OVZLZLJ\YP[PLZPUP[Z
Statement of Financial Position as Financial
assets held for trading pledged as collateral
(Note 24) or Financial assets available for
sale pledged as collateral (Note 29), as
appropriate.
Conversely, securities purchased under
HNYLLTLU[Z[VYLZLSSH[HZWLJPLKM\[\YL
date are not recognised in the Statement of
Financial Position. The consideration paid,
including accrued interest, is recorded in
the Statement of Financial Position, under
9L]LYZLYLW\YJOHZLHNYLLTLU[ZYLLJ[PUN
the transactions economic substance to
the Group. The difference between the
purchase and resale prices is recorded as
Interest income and is accrued over the
life of the agreement using the effective
interest rate. If securities purchased under
agreement to resell are subsequently sold
to third parties, the obligation to return the
securities is recorded as a short sale within
Financial liabilities held for trading and
measured at fair value with any gains or
losses included in Net trading income.
3.3.7 Offsetting of Financial Instruments
-PUHUJPHSHZZL[ZHUKUHUJPHSSPHIPSP[PLZHYL
offset and the net amount presented in
the Statement of Financial Position when
and only when the Group has a legal right
to set off the recognised amounts and it
intends either to settle on a net basis or
to realise the asset and settle the liability
simultaneously. Income and expenses
are presented on a net basis only when
permitted under LKASs / SLFRSs or for
gains and losses arising from a group of
similar transactions such as in the Groups
trading activity.
3.3.8 Impairment of Financial Assets
The Group assesses at each reporting date,
whether there is any objective evidence
[OH[HUHUJPHSHZZL[VYHNYV\WVMUHUJPHS
assets not carried at fair value through
WYV[VYSVZZPZPTWHPYLK(UHUJPHSHZZL[
VYHNYV\WVMUHUJPHSHZZL[ZPZKLLTLK[V
be impaired if and only if there is objective
evidence of impairment as a result of one or
more events, that have occurred after the
initial recognition of the asset (an incurred
loss event) and that loss event (or events)
has an impact on the estimated future cash
V^ZVM[OLUHUJPHSHZZL[VY[OLNYV\W
VMUHUJPHSHZZL[Z[OH[JHUILYLSPHIS`
estimated.
H0TWHPYTLU[VM-PUHUJPHS(ZZL[Z
JHYYPLKH[(TVY[PZLK*VZ[
-VYUHUJPHSHZZL[ZJHYYPLKH[HTVY[PZLK
cost, such as amounts due from banks,
loans and advances taken by customers,
held to maturity investments etc., the
.YV\WYZ[HZZLZZLZPUKP]PK\HSS`ÔL[OLY
objective evidence of impairment exists
MVYUHUJPHSHZZL[Z[OH[HYLPUKP]PK\HSS`
ZPNUPJHU[VYJVSSLJ[P]LS`MVYUHUJPHS
HZZL[Z[OH[HYLUV[PUKP]PK\HSS`ZPNUPJHU[
In the event the Group determines that no
objective evidence of impairment exists
MVYHUPUKP]PK\HSS`HZZLZZLKUHUJPHS
asset, it includes the asset in a group
VMUHUJPHSHZZL[Z^P[OZPTPSHYJYLKP[YPZR
characteristics and collectively assesses
[OLTMVYPTWHPYTLU[/V^L]LYHZZL[Z[OH[
are individually assessed for impairment and
for which an impairment loss is or continues
to be recognised are not included in a
collective assessment of impairment.
HP0UKP]PK\HSS`(ZZLZZLK-PUHUJPHS
(ZZL[Z
The criteria used to determine whether there
is objective evidence of impairment include
and not limited to:

2UVÛJHZOV^KPMJ\S[PLZ
experienced by the borrower;
Past due contractual payments of
either principal or interest;
Breach of loan covenants or
conditions;
The probability that the borrower will
LU[LYIHURY\W[J`VYV[OLYUHUJPHS
reorganisation; and

(ZPNUPJHU[KVÛNYHKPUNPUJYLKP[
rating by an external credit rating
agency.
If there is objective evidence that an

impairment loss has been incurred,
the amount of the loss is measured by
KPZJV\U[PUN[OLL_WLJ[LKM\[\YLJHZOV^Z
VMHUHUJPHSHZZL[H[P[ZVYPNPUHSLMMLJ[P]L
interest rate and comparing the resultant
WYLZLU[]HS\L^P[O[OLUHUJPHSHZZL[Z
current carrying amount. The impairment
HSSV^HUJLZVUPUKP]PK\HSS`ZPNUPJHU[
accounts are reviewed more regularly
when circumstances require. This normally
encompasses re-assessment of the
enforceability of any collateral held and the
timing and amount of actual and anticipated
receipts. Individually assessed impairment
allowances are only released when there
is reasonable and objective evidence of a
reduction in the established loss estimate.
Interest on impaired assets continues to be
recognised through the unwinding of the
discount.
When impairment losses are determined
MVY[OVZLUHUJPHSHZZL[ZÔLYLVIQLJ[P]L
evidence of impairment exists, the following
factors are considered:
Banks aggregate exposure to the
customer;
The viability of the customers
business model and their capacity
[V[YHKLZ\JJLZZM\SS`V\[VMUHUJPHS
KPMJ\S[PLZHUKNLULYH[LZ\MJPLU[
JHZOV^[VZLY]PJLKLI[VISPNH[PVUZ"
The amount and timing of expected
receipts and recoveries;
The extent of other creditors
commitments ranking ahead of,
or pari-passu with the Bank and
the likelihood of other creditors
continuing to support the company;
The complexity of determining the
aggregate amount and ranking of
all creditor claims and the extent
to which legal and insurance
uncertainties are evident;
The realisable value of security (or
other credit mitigants) and likelihood
of successful repossession;
The likely deduction of any costs
involved in recovery of amounts
outstanding;
The ability of the borrower to obtain
and make payments in the currency
of the loan if not denominated in local
currency; and
The likely dividend available on

liquidation or bankruptcy;
HPP*VSSLJ[P]LS`(ZZLZZLK-PUHUJPHS
(ZZL[Z
Impairment is assessed on a collective basis
in two circumstances:
To cover losses which have been
incurred but have not yet been
PKLU[PLKVUSVHUZZ\IQLJ[[V
individual assessment; and
For homogeneous groups of loans
that are not considered individually
ZPNUPJHU[
0UJ\YYLKI\[UV[`L[PKLU[PLKPTWHPYTLU[
0UKP]PK\HSS`HZZLZZLKUHUJPHSHZZL[Z
for which no evidence of loss has been
ZWLJPJHSS`PKLU[PLKVUHUPUKP]PK\HSIHZPZ
are grouped together according to their
credit risk characteristics for the purpose of
calculating an estimated collective loss. This
YLLJ[ZPTWHPYTLU[SVZZLZ[OH[[OL.YV\W
has incurred as a result of events occurring
before the reporting date, which the Group
is not able to identify on an individual loan
basis and that can be reliably estimated.
These losses will only be individually
PKLU[PLKPU[OLM\[\YL(ZZVVUHZ
information becomes available which
PKLU[PLZSVZZLZVUPUKP]PK\HSUHUJPHSHZZL[Z
^P[OPU[OLNYV\W[OVZLUHUJPHSHZZL[ZHYL
removed from the group and assessed on
an individual basis for impairment.
The collective impairment allowance is
determined after taking into account:

/PZ[VYPJHSSVZZL_WLYPLUJLPU
portfolios of similar credit risk; and
Managements experienced
judgment as to whether current
economic and credit conditions
are such that the actual level of
inherent losses at the reporting date
is like to be greater or less than that
suggested by historical experience.
/VTVNLULV\ZNYV\WZVMUHUJPHSHZZL[Z
Statistical methods are used to determine
impairment losses on a collective basis for
OVTVNLULV\ZNYV\WZVMUHUJPHSHZZL[Z
3VZZLZPU[OLZLNYV\WZVMUHUJPHSHZZL[Z
are recorded on an individual basis when
PUKP]PK\HSUHUJPHSHZZL[ZHYL^YP[[LUVMM
at which point they are removed from the

group.
Two alternative methods are used to
calculate historical loss experience on a
collective basis:

>OLU[OLNYV\WVMUHUJPHSHZZL[Z
by nature long term, the Group uses
migration analysis method. Under
this methodology the movements
in number of customers into bad
categories over the periods are used
[VLZ[PTH[L[OLHTV\U[VMUHUJPHS
assets that will eventually be written
off as a result of the events occurring
before the reporting date which the
Group is not able to identify on an
PUKP]PK\HSUHUJPHSHZZL[IHZPZHUK
that can be reliably estimated.
When the group of loan by nature
ZOVY[[LYT[OL.YV\W\ZLZUL[V^
rate method. Under this methodology
the movement in the outstanding
balance of customers into bad
categories over the periods are used
[VLZ[PTH[L[OLHTV\U[VMUHUJPHS
assets that will eventually be written
off as a result of the events occurring
before the reporting date which the
Group is not able to identify on an
individual loan basis and that can be
reliably estimated.
Under both methodologies, loans are
grouped into ranges according to the
number of days in arrears and statistical
analysis is used to estimate the likelihood
that loans in each range will progress
through the various stages of delinquency
and ultimately prove irrecoverable.
Current economic conditions and
portfolio risk factors are also evaluated
when calculating the appropriate level of
allowance required to cover inherent loss.
These additional macro and portfolio risk
factors may include:
Recent loan portfolio growth and

product mix
Unemployment rates
Gross Domestic Production (GDP)
growth
0UH[PVU
335
Exchange rates
Interest rates
Changes in government laws and
regulations
of collateral is generally assessed, at a

minimum, at inception and based on the
guidelines issued by the Central Bank of Sri
Lanka.
HPPP9L]LYZHSVM0TWHPYTLU[
If the amount of an impairment loss
decreases in a subsequent period and the
decrease can be related objectively to an
event occurring after the impairment was
recognised, the excess is written back by
YLK\JPUN[OLUHUJPHSHZZL[PTWHPYTLU[
allowance account accordingly. The writeIHJRPZYLJVNUPZLKPU[OL:[H[LTLU[VM7YV[
or Loss.
To the extent possible, the Group uses

HJ[P]LTHYRL[KH[HMVY]HS\PUNUHUJPHS
HZZL[ZOLSKHZJVSSH[LYHS6[OLYUHUJPHS
assets which do not have readily
determinable market value are valued using
TVKLSZ5VUUHUJPHSJVSSH[LYHSZ\JOHZYLHS
estate, is valued based on data provided by
third parties such as independent valuers,
Audited Financial Statements and other
independent sources.
HP]>YP[LVMMVM-PUHUJPHS(ZZL[Z
*HYYPLKH[(TVY[PZLK*VZ[
Financial assets (and the related impairment
allowance accounts) are normally written
off either partially or in full, when there is
no realistic prospect of recovery. Where
UHUJPHSHZZL[ZHYLZLJ\YLK[OPZPZNLULYHSS`
after receipt of any proceeds from the
realisation of security.
H]PP*VSSH[LYHS9LWVZZLZZLK
The Groups policy is to determine whether
a repossessed asset is best used for its
internal operations or should be sold.
Assets determined to be useful for the
internal operations are transferred to the
relevant asset category at the lower of the
repossessed value or the carrying value of
the original secured asset.
H]0TWHPYTLU[VM9LZJOLK\SLK
3VHUZHUK(K]HUJLZ
Where possible, the Group seeks to
restructure loans rather than to take
possession of collateral. This may involve
extending the payment arrangements and
the agreement of new loan conditions. Once
the terms have been renegotiated, any
impairment is measured using the original
effective interest rate as calculated before
[OLTVKPJH[PVUVM[LYTZHUK[OLSVHUPZUV
longer considered past due. Management
continually reviews renegotiated loans to
ensure that all criteria are met and that
future payments are likely to occur. The
loans continue to be subjected to individual
or collective impairment assessment,
calculated using the loans original effective
interest rate.
I0TWHPYTLU[VM-PUHUJPHS(ZZL[Z
(]HPSHISLMVY:HSL
-VYH]HPSHISLMVYZHSLUHUJPHSPU]LZ[TLU[Z
the Group assesses at each reporting date
whether there is objective evidence that an
investment is impaired. In the case of debt
PUZ[Y\TLU[ZJSHZZPLKHZH]HPSHISLMVYZHSL
the Group assesses individually whether
there is objective evidence of impairment
IHZLKVU[OLZHTLJYP[LYPHHZUHUJPHS
HZZL[ZJHYYPLKH[HTVY[PZLKJVZ[/V^L]LY
the amount recorded for impairment is the
cumulative loss measured as the difference
between the amortised cost and the current
fair value, less any impairment loss on that
investment previously recognised in the
:[H[LTLU[VM7YV[VY3VZZ-\[\YLPU[LYLZ[
income is based on the reduced carrying
amount and is accrued using the rate of
interest used to discount the future cash
V^ZMVY[OLW\YWVZLVMTLHZ\YPUN[OL
impairment loss. If, in a subsequent period,
the fair value of a debt instrument increases
and the increase can be objectively
related to a credit event occurring after
the impairment loss was recognised, the
impairment loss is reversed through the
H]P*VSSH[LYHS=HS\H[PVU
The Group seeks to use collateral, where
WVZZPISL[VTP[PNH[LP[ZYPZRZVUUHUJPHS
assets. The collateral comes in various
forms such as cash, gold, securities,
letters of credit/guarantees, real estate,
YLJLP]HISLZPU]LU[VYPLZV[OLYUVUUHUJPHS
assets and credit enhancements such
as netting agreements. The fair value
336
0U[OLJHZLVMLX\P[`PU]LZ[TLU[ZJSHZZPLK
as available for sale, objective evidence
^V\SKHSZVPUJS\KLHZPNUPJHU[VY
prolonged decline in the fair value
of the investment below its cost. The
KL[LYTPUH[PVUVMZPNUPJHU[HUK
prolonged is explained in Note 2.10.3
Where there is evidence of impairment, the
cumulative loss measured as the difference
between the acquisition cost and the
current fair value, less any impairment loss
on that investment previously recognised in
WYV[VY3VZZPZYLTV]LKMYVTLX\P[`HUK
YLJVNUPZLKPU[OL:[H[LTLU[VM7YV[VY
3VZZ/V^L]LYHU`Z\IZLX\LU[PUJYLHZL
in the fair value of an impaired available for
sale equity security is recognised in other
The Group writes-off certain available for
ZHSLUHUJPHSPU]LZ[TLU[ZÔLU[OL`HYL
determined to be uncollectible.
3.3.9 Hedge Accounting
The Group designates certain derivatives as
either:

/LKNLZVM[OLMHPY]HS\LVM
YLJVNUPZLKHZZL[ZSPHIPSP[PLZVYYT
commitments (fair value hedge);

/LKNLZVMOPNOS`WYVIHISLM\[\YL
JHZOV^ZH[[YPI\[HISL[VH
recognised asset or liability, or a
MVYLJHZ[[YHUZHJ[PVUJHZOV^
hedge); or

/LKNLZVM[OLUL[PU]LZ[TLU[VMH
foreign operation (net investment
hedges)
/LKNLHJJV\U[PUNPZ\ZLKMVYKLYP]H[P]LZ
designated in this way provided certain
criteria are met. The Group documents,
at the inception of the transaction, the
relationship between hedging instruments
and hedged items, as well as its risk
management objective and strategy for
undertaking various hedge transactions.
The Group also documents its assessment,
both at hedge inception and on an ongoing
basis, of whether the derivatives that are
used in hedging transactions are highly
effective in offsetting changes in fair values
VYJHZOV^ZVMOLKNLKP[LTZ
The Group did not designate any derivate as

a hedging instrument during the year ended
31st December 2015.
H*HZO-SV^/LKNL
The effective portion of changes in the fair
value of derivatives that are designated and
X\HSPLKHZJHZOVÔLKNLZPZYLJVNUPZLK
in equity. The gain or loss relating to the
ineffective portion is recognised immediately
PU[OL:[H[LTLU[VM7YV[VY3VZZ
Amounts accumulated in equity are
YLJSHZZPLK[V[OL:[H[LTLU[VM7YV[VY
Loss in the periods in which the hedged
P[LTHMMLJ[ZWYV[VYSVZZ>OLUHOLKNPUN
instrument expires or is sold or when a
hedge no longer meets the criteria for
hedge accounting, any cumulative gain or
loss existing in equity at that time remains in
equity and is recognised when the forecast
transaction is ultimately recognised in the
:[H[LTLU[VM7YV[VY3VZZ>OLUHMVYLJHZ[
transaction is no longer expected to
occur, the cumulative gain or loss that was
reported in equity is immediately transferred
[V[OL:[H[LTLU[VM7YV[VY3VZZ
The Group entered into a swap arrangement
with the Central Bank of Sri Lanka during
the year ended 31st December 2013 to
hedge the foreign borrowings amounted
to USD 100 Mn. The Group designated
[OLHIV]LZ^HWJVU[YHJ[HZHJHZOV^
hedge and accounted accordingly. The
said contract was matured during the year
3.3.10 Amortised Cost Measurement
;OLHTVY[PZLKJVZ[VMHUHUJPHSHZZL[VY
SPHIPSP[`PZ[OLHTV\U[H[ÔPJO[OLUHUJPHS
asset or liability is measured at initial
recognition, minus principal repayments,
plus or minus the cumulative amortisation
using the effective interest method of
any difference between the initial amount
recognised and the maturity amount, minus
any reduction for impairment.
3.3.11 Fair Value Measurement
Fair value is the price that would be
received to sell an asset or paid to
transfer a liability (exit price) in an orderly
transaction between market participants
at the measurement date in the principal
or, in its absence, the most advantageous

market to which the Group has access at
[OH[KH[L;OLMHPY]HS\LVMHSPHIPSP[`YLLJ[Z
its non-performance risk. When available,
the Group measures the fair value of an
instrument using the quoted price in an
active market for that instrument (Level 01
valuation). A market is regarded as active
if transactions for the asset or liability take
WSHJL^P[OZ\MJPLU[MYLX\LUJ`HUK]VS\TL
to provide pricing information on an ongoing
basis.
The fair value of a demand deposit is not

less than the amount payable on demand,
KPZJV\U[LKMYVT[OLYZ[KH[LVUÔPJO[OL
amount could be required to be paid.
If there is no quoted price in an active

market, then the Group uses valuation
techniques that maximise the use of relevant
observable inputs and minimise the use of
unobservable inputs. The chosen valuation
technique incorporates all of the factors that
market participants would take into account
in pricing a transaction.
The Group recognises transfers between

levels of the fair value hierarchy as of the
end of the reporting period during which the
change has occurred.
The best evidence of the fair value of a

UHUJPHSPUZ[Y\TLU[H[PUP[PHSYLJVNUP[PVUPZ
normally the transaction price - i.e. the fair
value of the consideration given or received.
If the Group determines that the fair value at
initial recognition differs from the transaction
price and the fair value is evidenced neither
by a quoted price in an active market for an
identical asset or liability (Level 01 valuation)
nor based on a valuation technique that
uses only data from observable markets
3L]LS]HS\H[PVU[OLU[OLUHUJPHS
instrument is initially measured at fair value,
adjusted to defer the difference between
the fair value at initial recognition and
the transaction price. Subsequently, that
KPMMLYLUJLPZYLJVNUPZLKPUWYV[VYSVZZ
on an appropriate basis over the life of
the instrument but not later than when the
valuation is wholly supported by observable
market data or the transaction is closed out.
-HPY]HS\LZYLLJ[[OLJYLKP[YPZRVM[OL
instrument and include adjustments to take
account of the credit risk of the Group entity
and the counterparty where appropriate.
Fair value estimates obtained from models
are adjusted for any other factors, such as
liquidity risk or model uncertainties; to the
extent that the Group believes a third-party
market participant would take them into
account in pricing a transaction.
A fair value measurement of a non

UHUJPHSHZZL[[HRLZPU[VHJJV\U[HTHYRL[
participants ability to generate economic
ILUL[ZI`\ZPUN[OLHZZL[PUP[ZOPNOLZ[HUK
best use or by selling it to another market
participant that would use the asset in its
highest and best use.
3.4
Finance and Operating Leases
The determination of whether an

arrangement is a lease, or it contains a
lease, is based on the substance of the
arrangement and requires an assessment of
ÔL[OLY[OLM\SSTLU[VM[OLHYYHUNLTLU[PZ
KLWLUKLU[VU[OL\ZLVMHZWLJPJHZZL[VY
assets and the arrangement conveys a right
to use the asset.
3.4.1 Finance Lease
Agreements which transfer to counterparties
incidental to the ownership of assets, but
UV[ULJLZZHYPS`SLNHS[P[SLHYLJSHZZPLK
HZUHUJLSLHZLZ>OLU[OL.YV\WPZ[OL
SLZZVY\UKLYUHUJLSLHZLZ[OLHTV\U[Z
due under the leases, after deduction of
unearned interest income, are included
in Note 25, Loans to & receivables from
banks and Note 26, Loans to & receivables
from other customers, as appropriate.
Interest income receivable is recognised in
Net interest income over the periods of the
leases so as to give a constant rate of return
on the net investment in the leases.
>OLU[OL.YV\WPZHSLZZLL\UKLYUHUJL
leases, the leased assets are capitalised
and included in Property, plant and
equipment and the corresponding liability
to the lessor is included in Other liabilities.
(UHUJLSLHZLHUKP[ZJVYYLZWVUKPUN
liability are recognised initially at the fair
value of the asset or if lower, the present
value of the minimum lease payments.
Finance charges payable are recognised in
337
Interest expenses over the period of the

lease based on the interest rate implicit in
the lease so as to give a constant rate of
interest on the remaining balance of the
liability.
3.4.2 Operating Lease
(SSV[OLYSLHZLZHYLJSHZZPLKHZVWLYH[PUN
leases. When acting as lessor, the Group
includes the assets subject to operating
leases in Property, plant and equipment
and accounts for them accordingly.
Impairment losses are recognised to the
extent that residual values are not fully
recoverable and the carrying value of the
assets is thereby impaired.
When the Group is the lessee, leased assets
are not recognised on the Statement of
Financial Position.
Rentals payable and receivable under
operating leases are accounted for on a
straight-line basis over the periods of the
leases and are included in Other operating
expenses and Other operating income,
respectively.
are lower than the unavoidable cost of

meeting its obligations under the contract.
The provision is measured as the present
value of the lower of the expected cost of
terminating the contract and the expected
net cost of continuing with the contract.
Before a provision is established, the
Group recognises any impairment loss on
the assets associated with that contract.
The expense relating to any provision is
WYLZLU[LKPU[OL:[H[LTLU[VM7YV[VY3VZZ
net of any reimbursement.
3.7
3.8
3.5
Fiduciary Assets
;OL.YV\WWYV]PKLZK\JPHY`ZLY]PJLZ[OH[
result in the holding of assets on behalf of its
J\Z[VTLYZ(ZZL[ZOLSKPUK\JPHY`JHWHJP[`
are not reported in the Financial Statements,
as they are not assets of the Group.
3.6
Provisions
A provision is recognised if, as a result

of a past event, the Group has a present
legal or constructive obligation that can be
estimated reliably, and it is probable that
HUV\[V^VMLJVUVTPJILUL[Z^PSSIL
required to settle the obligation. The amount
recognised is the best estimate of the
consideration required to settle the present
obligation at the reporting date, taking
in to account the risks and uncertainties
surrounding the obligation at that date.
Where a provision is measured using the
JHZOV^ZLZ[PTH[LK[VZL[[SL[OLWYLZLU[
obligation, its carrying amount is determined
based on the present value of those cash
V^Z(WYV]PZPVUMVYVULYV\ZJVU[YHJ[ZPZ
YLJVNUPZLKÔLU[OLL_WLJ[LKILUL[Z[V
be derived by the Group from a contract
338
Operational Risk Events
Provisions for operational risk events

are recognised for losses incurred by
the Bank which do not relate directly to
amounts of principal outstanding for loans
and advances. The amount recognised
as a provision is the best estimate of the
expenditure required to settle the present
obligation as at the reporting date, taking
into account the risks and uncertainties that
surround the events and circumstances that
affect the provision.
Recognition of Income
Revenue is recognised to the extent that

P[PZWYVIHISL[OH[[OLLJVUVTPJILUL[Z
^PSSV^[V[OL.YV\WHUK[OLYL]LU\LJHU
ILYLSPHIS`TLHZ\YLK:WLJPJYLJVNUP[PVU
criteria that must be met before revenue
is recognised is discussed under Note
7-Net Interest Income, Note 8 Net Fee
and Commission Income and Note 9-Net
Trading Income.
3.9
Other Taxes
3.9.1 Withholding Tax (WHT) on Dividend

+P]PKLUKKPZ[YPI\[LKV\[VM[H_HISLWYV[
of the local Subsidiaries attracts a 10%
deduction at source and is not available to
set off against the tax liability of the Bank.
;O\Z[OL>/;KLK\J[LKH[ZV\YJLVU[OL
dividends distributed by the Subsidiaries is
charged to the Consolidated Statement of
7YV[VY3VZZHZHJVUZVSPKH[PVUHKQ\Z[TLU[
>/;[OH[HYPZLMYVT[OLKPZ[YPI\[PVUVM
dividend by the Bank are recognised at the
same time as the liability to pay the related
dividend is recognised.
3.9.2 Economic Service Charge (ESC)

As per provisions of the Economic Service
Charge (ESC) Act No 13 of 2006 and
subsequent amendments thereto, ESC is
payable only on exempt turnover of the
Bank at 0.25% and is deductible from
income tax payable. ESC is not payable on
turnover on which income tax is payable.
3.10 Regulatory Provisions

3.10.1 Deposit Insurance and Liquidity
Support Scheme
In terms of the Banking Act Direction No 5
of 2010 Insurance of Deposit Liabilities
issued on 27th September 2010 and
subsequent amendments there to, all
Licensed Commercial Banks are required
to insure their deposit liabilities in the
Deposit Insurance Scheme operated by
the Monetary Board in terms of Sri Lanka
Deposit Insurance Scheme Regulations
No 1 of 2010 issued under Sections 32A
to 32E of the Monetary Law Act with effect
from 1st October 2010. The said scheme
was renamed as the Sri Lanka Deposit
Insurance and Liquidity Support Scheme
as per the Sri Lanka Deposit Insurance and
Liquidity Support Scheme Regulation No 1
of 2013.
Deposits to be insured include demand,
time and savings deposit liabilities and
exclude the following;
a)
b)
c)
d)
e)
deposit liabilities to member

institutions
deposit liabilities to government of Sri
Lanka
deposit liabilities to Directors, key
management personnel and other
YLSH[LKWHY[PLZHZKLULKPU)HURPUN
Act Direction No 11 of 2007 on
Corporate Governance of Licensed
Commercial Banks
deposit liabilities held as collateral
against any accommodation granted
deposit liabilities falling within the
meaning of abandoned property
in terms of the Banking Act and
dormant deposits in terms of the
Finance Business Act, funds of which
have been transferred to Central
Bank of Sri Lanka
Licensed Commercial Banks are required to

pay a premium of 0.10% on eligible deposit
liabilities if the Bank maintains a capital
adequacy ratio of 14% or above as at the
LUKVM[OLPTTLKPH[LS`WYLJLKPUNUHUJPHS
year and a premium of 0.125% on eligible
deposit liabilities for all other Licensed
Commercial Banks calculated on the total
amount of eligible deposits as at the end of
the quarter within a period of 15 days from
the end of the quarter.
3.10.2 Crop Insurance Levy
In terms of the Finance Act No 12 of 2013,
all institutions under the purview of Banking
Act No 30 of 1988, Finance Business Act
No 42 of 2011 and Regulation of Insurance
Industry Act No 43 of 2000 are required
[VWH`VM[OLWYV[HM[LY[H_HZ*YVW
Insurance Levy to the National Insurance
Trust Fund Board effective from 01st April
2013.
4.
STANDARDS ISSUED
BUT NOT YET
EFFECTIVE AS AT 31ST
DECEMBER 2015
The following Sri Lanka Accounting

Standards have been issued by the
Institute of Chartered Accountants of Sri
Lanka which are not yet effective as at
31st December 2015. Accordingly these
accounting standards have not been
applied in the preparation of the Financial
Statements for the year ended 31st
December 2015.
4.1
SLFRS 14 - Regulatory Deferral

Accounts
The objective of this Standard is to specify

[OLUHUJPHSYLWVY[PUNYLX\PYLTLU[ZMVY
regulatory deferral account balances that
arise when an entity provides goods or
services to customers at a price or rate that
is subject to rate regulation.
SLFRS 14 will become effective on 01st
January 2016. Implementation of this
Standard is not expected to have an impact
on the Consolidated Financial Statements.
4.2
SLFRS 15 - Revenue from

Contracts with Customers
Phase 3:Hedge accounting
The objective of this Standard is to establish

the principles that an entity shall apply
to report useful information to users of
Financial Statements about the nature,
amount, timing and uncertainty of revenue
HUKJHZOV^ZHYPZPUNMYVTJVU[YHJ[Z^P[O
customers.
SLFRS 15 will become effective on
01st January 2018. The impact on the
implementation of the above Standard has
UV[ILLUX\HU[PLK`L[
4.3
SLFRS 9 introduces a substantiallyreformed model for hedge accounting

with enhanced disclosures about risk
management activity. The new model
represents a substantial overhaul of hedge
accounting that aligns the accounting
treatment with risk management activities,
LUHISPUNLU[P[PLZ[VIL[[LYYLLJ[[OLZL
activities in their Financial Statements. In
addition, as a result of these changes,
users of the Financial Statements will be
provided with better information about
risk management and the effect of hedge
accounting on the Financial Statements.
SLFRS 9 - Financial Instruments
This standard will replace Sri Lanka

Accounting Standard - LKAS 39
(Financial Instruments : Recognition
and Measurement). The improvements
introduced by SLFRS 9 includes a logical
TVKLSMVYJSHZZPJH[PVUHUKTLHZ\YLTLU[
a single, forward-looking expected loss
impairment model and a substantiallyreformed approach to hedge accounting
which are detailed below.
SLFRS 9 will become effective on

01st January 2018. The impact on the
implementation of the above Standard has
UV[ILLUX\HU[PLK`L[.P]LU[OLUH[\YL
of the Groups operations, this standard is
expected to have a pervasive impact on
the Consolidated Financial Statements of
the Group. In particular, an increase in the
overall impairment allowance is expected
due to the introduction of the expected
credit loss model.
Phase 1: &ODVVLFDWLRQDQG
measurement
*SHZZPJH[PVUKL[LYTPULZOVÛHUJPHS
HZZL[ZHUKUHUJPHSSPHIPSP[PLZHYLHJJV\U[LK
for in the Financial Statements and, in
particular, how they are measured on an
ongoing basis. SLFRS 9 introduces a logical
HWWYVHJOMVY[OLJSHZZPJH[PVUVMUHUJPHS
HZZL[ZKYP]LUI`JHZOV^JOHYHJ[LYPZ[PJZ
and the business model in which an asset is
held. This single, principle-based approach
replaces existing rule-based requirements
[OH[HYLJVTWSL_HUKKPMJ\S[[VHWWS`
Phase 2: Impairment
5.
AMENDMENTS
TO EXISTING
ACCOUNTING
STANDARDS
EFFECTIVE FROM 01ST
JANUARY 2016
Amendments to existing Accounting

Standards with effect from 01st January
2016 as published by the Institute of
Chartered Accountants of Sri Lanka are
not expected to have an impact on the
Consolidated Financial Statements of the
Group.
SLFRS 9 introduces a new, expected loss

impairment model that will require more
timely recognition of expected credit losses.
:WLJPJHSS`[OLUL^:[HUKHYKYLX\PYLZ
entities to account for expected credit losses
MYVTÔLUUHUJPHSPUZ[Y\TLU[ZHYLYZ[
recognised and it lowers the threshold for
recognition of full lifetime expected losses.
339
6.
GROSS INCOME
Bank
Interest income (Note 7.1)

Net trading income (Note 9)
Other operating income (Note 10)
7.
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
37,943,691
6,487,873
(341,316)
2,941,268
47,031,516
38,058,607
5,055,618
413,387
1,069,469
44,597,081
39,706,286
6,620,894
(341,316)
3,115,973
49,101,837
39,695,507
5,132,720
413,387
1,152,792
46,394,406
NET INTEREST INCOME
Accounting Policy
Recognition of Interest Income and Interest Expense

-VYHSSUHUJPHSPUZ[Y\TLU[ZTLHZ\YLKH[HTVY[PZLKJVZ[PU[LYLZ[ILHYPUNUHUJPHSHZZL[ZJSHZZPLKHZH]HPSHISLMVYZHSLHUKUHUJPHS
PUZ[Y\TLU[ZKLZPNUH[LKH[MHPY]HS\L[OYV\NOWYV[VYSVZZPU[LYLZ[PUJVTLVYL_WLUZLPZYLJVYKLK\ZPUN[OLLMMLJ[P]LPU[LYLZ[YH[LTL[OVK
Effective interest rate is the rate that exactly discounts the estimated future cash payments or receipts through the expected life of the
UHUJPHSPUZ[Y\TLU[VYHZOVY[LYWLYPVKÔLYLHWWYVWYPH[L[V[OLUL[JHYY`PUNHTV\U[VM[OLUHUJPHSHZZL[VYUHUJPHSSPHIPSP[`
;OLJHSJ\SH[PVUVMLMMLJ[P]LPU[LYLZ[YH[L[HRLZPU[VHJJV\U[HSSJVU[YHJ[\HS[LYTZVM[OLUHUJPHSPUZ[Y\TLU[MVYL_HTWSLWYLWH`TLU[VW[PVUZ
and includes any fees or incremental costs that are directly attributable to the instrument and are an integral part of the effective interest
rate, but not future credit losses.
;OLJHYY`PUNHTV\U[VM[OLUHUJPHSHZZL[VYUHUJPHSSPHIPSP[`PZHKQ\Z[LKPM[OL.YV\WYL]PZLZP[ZLZ[PTH[LZVMWH`TLU[ZVYYLJLPW[Z;OL
adjusted carrying amount is calculated based on the original effective interest rate and the change in carrying amount is recorded as
PU[LYLZ[PUJVTLMVYUHUJPHSHZZL[ZHUKPU[LYLZ[L_WLUZLMVYUHUJPHSSPHIPSP[PLZ/V^L]LYMVYHYLJSHZZPLKUHUJPHSHZZL[MVYÔPJO[OL.YV\W
subsequently increases its estimates of future cash receipts as a result of increased recoverability of those cash receipts, the effect of that
increase is recognised as an adjustment to the effective interest rate from the date of the change in estimate.
6UJL[OLYLJVYKLK]HS\LVMHUHUJPHSHZZL[VYHNYV\WVMZPTPSHYUHUJPHSHZZL[ZOHZILLUYLK\JLKK\L[VHUPTWHPYTLU[SVZZPU[LYLZ[
PUJVTLJVU[PU\LZ[VILYLJVNUPZLK\ZPUN[OLYH[LVMPU[LYLZ[\ZLK[VKPZJV\U[[OLM\[\YLJHZOV^ZMVY[OLW\YWVZLVMTLHZ\YPUN[OL
impairment loss.
7.1
Interest Income
Bank
Placements with other banks

Interest income accrued on impaired loans & receivables
340
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
298,022
1,276,853
31,997,675
1,785,920
212,711
483,244
19,835
1,869,431
37,943,691
91,360
3,178,774
31,395,282
1,216,716
158,333
1,880,697
137,445
38,058,607
298,202
1,276,853
33,755,908
1,785,920
212,873
483,643
23,456
1,869,431
39,706,286
91,360
3,178,774
33,031,047
1,216,979
158,841
1,880,090
138,416
39,695,507
7.2
Interest Expense
Bank

Term borrowings
9LUHUJLIVYYV^PUNZ
Due to banks
Debentures
Net interest income
7.3
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
17,255,719
814,164

532,334
149,261
1,546,818
20,541,894
17,401,797
20,087,727
556,836

314,824
136,745
922,983
22,334,974
15,723,633
17,274,714
1,327,544

491,426
149,780
1,668,838
21,155,900
18,550,386
20,073,650
1,134,832

278,906
136,858
974,612
22,914,717
16,780,790
Net Interest Income from Sri Lanka Government Securities

Bank
Interest income
Net interest income from Sri Lanka government securities
7.4
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
4,512,112
532,334
3,979,778
5,762,376
314,824
5,447,552
4,516,132
491,426
4,024,706
5,763,347
278,906
5,484,441
Notional Tax Credit for Withholding Tax on Government Securities on Secondary Market Transactions
Section 137 of the Inland Revenue Act No 10 of 2006 provides that a company which derives interest income from the secondary market
transactions in government securities be entitled to a notional tax credit (being one ninth of the net interest income) provided such interest
income forms part of the statutory income of the company for that year of assessment.
Accordingly, net income earned from secondary market transactions in government securities for the year by the Bank has been grossed up
in the Financial Statements and the resulting notional tax credit amounted to Rs 25.70 Mn (2014 : Rs 196.78 Mn).
8.
NET FEE AND COMMISSION INCOME
Accounting Policy
Fee Income Earned from Services that are Provided over a Certain Period of Time
Fees earned for the provision of services over a period of time are accrued over that period. These fees include professional fees, trade
service fees, commission income and asset management fees etc. Loan commitment fees for loans that are likely to be drawn down and
other credit related fees are deferred (together with any incremental costs) and recognised as an adjustment to the effective interest rate
of the loan. When it is unlikely that a loan will be drawn down, the loan commitment fees are recognised over the commitment period on a
straight line basis.
Fee Income from Providing Transaction Services

Fees arising from negotiating or participating in the negotiation of a transaction for a third party, such as the arrangement of an acquisition
of shares or other securities or the purchase or sale of businesses, are recognised on completion of the underlying transaction. Fees or
components of fees that are linked to a certain performance are recognised as the related services are performed.
341
8.
NET FEE AND COMMISSION INCOME CONTD.
Expenses on Account of Customer Loyalty Programmes

(^HYKJYLKP[Z\UKLYJ\Z[VTLYSV`HS[`WYVNYHTTLZHYLHJJV\U[LKMVYHZHZLWHYH[LS`PKLU[PHISLJVTWVULU[VM[OL[YHUZHJ[PVUPUÔPJO[OL`
are granted. The fair value of the consideration received in respect of the initial sale is allocated between the award credits and the other
components of the sale. Expense incurred for customer loyalty programmes is accounted under Net fee and commission expenses.
Other Fee and Commission Expenses

Other Fee and commission expenses relate mainly to transactions and services fees which are expensed as the services are received. Fee
and commission expenses are recognised on an accrual basis.
Bank
Trade related services

Foreign remittance related services
Credit & debit card services
6[OLYIHURPUN UHUJPHSZLY]PJLZ
9.
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
1,454,404
227,707
1,332,715

5,286,553
1,156,440
189,906
1,121,513

4,187,406
1,454,404
227,707
1,332,715

5,417,211
1,156,440
189,906
1,121,513

4,259,358
NET TRADING INCOME
Accounting Policy
5L[[YHKPUNPUJVTLPUJS\KLZHSSNHPUZHUKSVZZLZMYVTJOHUNLZPUMHPY]HS\LYLSH[LKJHWP[HSNHPUSVZZHUKKP]PKLUKMYVTUHUJPHSHZZL[Z
/LSKMVY[YHKPUN+P]PKLUKPUJVTLPZYLJVNUPZLKÔLU[OL.YV\WZYPNO[[VYLJLP]L[OLWH`TLU[PZLZ[HISPZOLK;OPZJH[LNVY`HSZVPUJS\KLZ
foreign exchange differences arising from derivative contracts which are not designated as hedging instruments.
Bank & Group
Forward exchange contract revaluation (loss) / gain

Capital gain / (loss)
Dividend income
Net mark to market (loss) / gain
342
2015
Rs 000
2014
Rs 000
(262,642)
76,249
15,505
(170,428)
(341,316)
365,238
287,776
27,385
(267,012)
413,387
10. OTHER OPERATING INCOME

Bank
Exchange income
+P]PKLUKPUJVTLMYVTH]HPSHISLMVYZHSLUHUJPHSHZZL[Z
*HWP[HSNHPUSVZZMYVTH]HPSHISLMVYZHSLUHUJPHSHZZL[Z
Dividend income from Subsidiaries
7YV[VUKPZWVZHSVMWYVWLY[`WSHU[ LX\PWTLU[
Rental & other income
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
2,728,553

58,950

50,766
2,941,268
917,362

49,972

33,735
1,069,469
2,728,553

284,105
3,115,973
917,283

166,881
1,152,792
11. NET IMPAIRMENT CHARGE / (REVERSAL) FOR LOANS & OTHER LOSSES
Bank
Banks
Other customers
0UKP]PK\HSS`ZPNUPJHU[J\Z[VTLYSVHUPTWHPYTLU[
Collective loan impairment
Other debtors
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000

389,536
2,389
992,844

1,533,639
(3,825)
29,105
1,580,792

427,832
2,389
943,569

1,447,559
29,105
1,401,399
12. PERSONNEL EXPENSES

Accounting Policy
6KRUW7HUP(PSOR\HH%HQHWV
:OVY[[LYTLTWSV`LLILUL[VISPNH[PVUZHYLTLHZ\YLKVUHU\UKPZJV\U[LKIHZPZHUKHYLL_WLUZLKHZ[OLYLSH[LKZLY]PJLPZWYV]PKLK(
SPHIPSP[`PZYLJVNUPZLKMVY[OLHTV\U[L_WLJ[LK[VILWHPK\UKLYZOVY[[LYTJHZOIVU\ZVYWYV[ZOHYPUNWSHUZPM[OL.YV\WOHZHWYLZLU[
legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated
reliably.
'HQHG&RQWULEXWLRQ3ODQV
(KLULKJVU[YPI\[PVUWSHUPZHWVZ[LTWSV`TLU[ILUL[WSHU\UKLYÔPJOHULU[P[`WH`Z_LKJVU[YPI\[PVUZPU[VHZLWHYH[LLU[P[`HM\UK
HUK^PSSOH]LUVSLNHSVYJVUZ[Y\J[P]LVISPNH[PVU[VWH`M\Y[OLYJVU[YPI\[PVUZPM[OLM\UKKVLZUV[OVSKZ\MJPLU[HZZL[Z[VWH`HSSLTWSV`LL
ILUL[ZYLSH[PUN[VLTWSV`LLZLY]PJLZPU[OLJ\YYLU[HUKWYPVYWLYPVKZHZKLULKPU[OL:YP3HURH(JJV\U[PUN:[HUKHYK32(:
,TWSV`LL)LUL[Z
;OLJVU[YPI\[PVUWH`HISLI`[OLLTWSV`LY[VHKLULKJVU[YPI\[PVUWSHUPZPUWYVWVY[PVU[V[OLZLY]PJLZYLUKLYLK[V[OL.YV\WI`[OL
employees and is recorded as an expense under Personnel expenses as and when they become due. Unpaid contributions are recorded
as a liability under Other liabilities in Note 40.
The Group contributes 3% of the salary of each employee to the Employees Trust Fund. Further, the Subsidiary companies contribute
VU[OLZHSHY`VMLHJOLTWSV`LL[V[OL,TWSV`LLZ7YV]PKLU[-\UK;OLHIV]LL_WLUZLZHYLPKLU[PLKHZJVU[YPI\[PVUZ[V+LULK
*VU[YPI\[PVU7SHUZHZKLULKPU[OL:YP3HURH(JJV\U[PUN:[HUKHYK32(: ,TWSV`LL)LUL[Z
343
12. PERSONNEL EXPENSES CONTD.

'HQHG%HQHW3ODQV
(KLULKILUL[WSHUPZHWVZ[LTWSV`TLU[ILUL[WSHUV[OLY[OHUHKLULKJVU[YPI\[PVUWSHU(JJVYKPUNS`[OLWLUZPVUM\UKZ[HMMNYH[\P[`
HUK[OL,TWSV`LLZ7YV]PKLU[-\UKVM[OL)HUR^LYLJVUZPKLYLKHZKLULKILUL[WSHUZHZWLY:YP3HURH(JJV\U[PUN:[HUKHYK32(:
,TWSV`LL)LUL[Z
Pension Fund
The Bank has a pension fund for all members who joined the Bank for permanent employment before 1st June 2003. A member is eligible
for a monthly pension after attainment of 55 years of age and completion of 10 years uninterrupted service.
;OL)HURTLHZ\YLZ[OLWYLZLU[]HS\LVM[OLWLUZPVUVISPNH[PVUÔPJOPZHKLULKILUL[WSHU^P[O[OLHK]PJLVMHUPUKLWLUKLU[
professional actuary using the Projected Unit Credit (PUC) method as required by Sri Lanka Accounting Standard - LKAS 19 (Employee
)LUL[Z
An actuarial valuation is carried out at every year end to ascertain the full liability under the Fund.
;OL)HURZVISPNH[PVUPUYLZWLJ[VMKLULKILUL[WLUZPVUWSHUPZJHSJ\SH[LKI`LZ[PTH[PUN[OLHTV\U[VMM\[\YLILUL[[OH[LTWSV`LLZ
OH]LLHYULKPUYL[\YUMVY[OLPYZLY]PJLPU[OLJ\YYLU[HUKWYPVYWLYPVKZHUKKPZJV\U[PUN[OH[ILUL[[VKL[LYTPULP[ZWYLZLU[]HS\L[OLU
deducting the fair value of any plan assets to determine the net amount to be shown in the Statement of Financial Position. The value of any
KLULKILUL[HZZL[PZYLZ[YPJ[LK[V[OLWYLZLU[]HS\LVMHU`LJVUVTPJILUL[ZH]HPSHISLPU[OLMVYTVMYLM\UKZMYVT[OLWSHUVYYLK\J[PVUZ
PU[OLM\[\YLJVU[YPI\[PVUZ[V[OLWSHU0UVYKLY[VJHSJ\SH[L[OLWYLZLU[]HS\LVMLJVUVTPJILUL[ZJVUZPKLYH[PVUPZNP]LU[VHU`TPUPT\T
M\UKPUNYLX\PYLTLU[Z[OH[HWWS`[VHU`WSHUPU[OL)HUR(ULJVUVTPJILUL[PZH]HPSHISL[V[OL)HURPMP[PZYLHSPZHISLK\YPUN[OLSPMLVM[OL
plan, or on settlement of the plan liabilities.
;OL)HURKL[LYTPULZ[OLUL[PU[LYLZ[L_WLUZLPUJVTLVU[OLUL[KLULKILUL[SPHIPSP[`HZZL[I`HWWS`PUN[OLKPZJV\U[YH[L\ZLK[V
TLHZ\YL[OLKLULKILUL[VISPNH[PVUH[[OLILNPUUPUNVM[OLHUU\HSWLYPVK[V[OLUL[KLULKILUL[SPHIPSP[`HZZL[H[[OLILNPUUPUNVM[OL
annual period. The discount rate is the yield at the reporting date on government bonds that have maturity dates approximating to the terms
of the Banks obligations.
The increase in the pension fund liabilities attributable to the services provided by employees, who are members of the Fund, during the
`LHYLUKLKZ[+LJLTILYJ\YYLU[ZLY]PJLJVZ[OHZILLUYLJVNUPZLKPU[OL:[H[LTLU[VM7YV[VY3VZZ\UKLY7LYZVUULSL_WLUZLZ
together with the net interest income / expense.
The Bank recognises the total actuarial gain and loss that arise in calculating the Banks obligation in respect of a plan in other
comprehensive income during the period in which it occurs.
The demographic assumptions underlying the valuation are retirement age (55 yrs), early withdrawals from service and retirement on
medical grounds, death before and after retirement etc.
The assets of the fund are held separately from those of the Banks assets and are administered independently.
The Subsidiaries do not operate pension funds.
Gratuity
0UJVTWSPHUJL^P[O[OL.YH[\P[`(J[5VVM WYV]PZPVUPZTHKLPU[OLHJJV\U[ZMYVT[OLYZ[`LHYVMZLY]PJLMVYNYH[\P[`WH`HISL[V
employees who joined the Bank on or after 1st June 2003, as they are not in pensionable service of the Bank.
7YV]PZPVUPZUV[THKLPU[OLHJJV\U[ZMVYNYH[\P[`WH`HISL[VLTWSV`LLZÔVQVPULKWYPVY[VZ[1\ULHUKJVTWSL[LK]LVYTVYL
`LHYZVMJVU[PU\V\ZZLY]PJLHZ[OL)HUROHZP[ZVÛUVUJVU[YPI\[VY`WLUZPVUZJOLTLPUMVYJL/V^L]LYPMLTWSV`LLZÔVHYLLSPNPISLMVY
pension resign before retirement age, the Bank is liable to pay gratuity to such employees.
344
An actuarial valuation is carried out at every year end to ascertain the full liability under gratuity.
The gratuity liability is not externally funded. All Subsidiary companies too carry out actuarial valuations to ascertain their respective gratuity
liabilities.
;OL.YV\WKL[LYTPULZ[OLPU[LYLZ[L_WLUZLVU[OLKLULKILUL[SPHIPSP[Ì`HWWS`PUN[OLKPZJV\U[YH[L\ZLK[VTLHZ\YL[OLKLULKILUL[
SPHIPSP[`H[[OLILNPUUPUNVM[OLHUU\HSWLYPVK[V[OLKLULKILUL[SPHIPSP[`H[[OLILNPUUPUNVM[OLHUU\HSWLYPVK;OLKPZJV\U[YH[LPZ[OL
yield at the reporting date on government bonds that have maturity dates approximating to the terms of the Groups obligations.
The increase in gratuity liabilities attributable to the services provided by employees during the year ended 31st December 2015 (current
ZLY]PJLJVZ[OHZILLUYLJVNUPZLKPU[OL:[H[LTLU[VM7YV[VY3VZZ\UKLY7LYZVUULSL_WLUZLZ[VNL[OLY^P[O[OLUL[PU[LYLZ[L_WLUZL
The Group recognises the total actuarial gain and loss that arise in calculating the Groups obligation in respect of gratuity in other
comprehensive income during the period in which it occurs.
The demographic assumptions underlying the valuation are retirement age (55 yrs), early withdrawals from service and retirement on
medical grounds etc.
Employees Provident Fund - Bank

Employees Provident Fund is an approved private provident fund which has been set up to meet the provident fund liabilities of the Bank
to which the Bank and employees contribute 12% and 8% respectively on the salary of each employee. Employees who are members of
[OLM\UKLU[P[SL[VYLJLP]LPU[LYLZ[H[HN\HYHU[LLKYH[LVM5H[PVUHS:H]PUNZ)HURVUL`LHY_LKKLWVZP[YH[LUL[VM>/;VU[OLPYIHSHUJL
L]LUPM[OLM\UKLHYUZHSV^LYYL[\YUMYVTP[ZPU]LZ[TLU[PUHNP]LUUHUJPHS`LHY(JJVYKPUNS`[OPZVISPNH[PVU^HZ[YLH[LKHZHKLULKILUL[
liability and an actuarial valuation was conducted to value the Banks obligation on the same.
Unutilised Accumulated Leave

The Banks liability towards the accumulated leave which is expected to be utilised beyond one year from the end of the reporting period is
[YLH[LKHZV[OLYSVUN[LYTLTWSV`LLILUL[Z;OL)HURZUL[VISPNH[PVU[V^HYKZ\U\[PSPZLKHJJ\T\SH[LKSLH]LPZJHSJ\SH[LKI`KPZJV\U[PUN
[OLHTV\U[VMM\[\YLILUL[[OH[LTWSV`LLZOH]LLHYULKPUYL[\YUMVY[OLPYZLY]PJLPU[OLJ\YYLU[HUKWYPVYWLYPVKZ[VKL[LYTPUL[OLWYLZLU[
]HS\LVMZ\JOILUL[Z;OLKPZJV\U[YH[LPZ[OL`PLSKH[[OLYLWVY[PUNKH[LVUNV]LYUTLU[IVUKZ[OH[OH]LTH[\YP[`KH[LZHWWYV_PTH[PUN[V
the terms of the Banks obligation. The calculation is performed using the Projected Unit Credit method. Net change in liability for unutilised
HJJ\T\SH[LKSLH]LPUJS\KPUNHU`HJ[\HYPHSNHPUHUKSVZZHYLYLJVNUPZLKPU[OL:[H[LTLU[VM7YV[VY3VZZ\UKLY7LYZVUULSL_WLUZLZPU[OL
period in which they arise.
The Groups net obligation to the pension fund, gratuity, EPF interest guarantee and unutilised accumulated annual leave is disclosed under
Note 41 to the Financial Statements.
Share Based Payment Transactions

The Bank does not have any share based payment transactions in force as at 31st December 2015. The Employee Share Option Plan 2010
(ESOP 2010) which was an equity settled share based payment transaction as per Sri Lanka Accounting Standard - SLFRS 2 (Share-based
Payment), expired on 30th June 2014.
Sri Lanka Accounting Standard - SLFRS 2 (Share-based Payment) was not applied in respect of the ESOP 2010 as this was exempted
under the transitional provisions of the said Standard.
Bank
Salaries & bonus

Contributions to EPF & ETF
Provision for gratuity & pension
Others
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
4,761,458
505,189
354,986
519,626
6,141,259
3,959,720
441,921
213,647
445,631
5,060,919
5,076,036
533,466
362,298
552,603
6,524,403
4,193,601
463,287
219,659
464,529
5,341,076
345
13. OTHER OPERATING EXPENSES

Bank
Directors fees & expenses

Auditors remuneration (Note 13.1)
Professional & legal expenses
Depreciation of property, plant & equipment
Amortisation of intangible assets
Deposit insurance premium
Donations
6MJLHKTPUPZ[YH[PVU LZ[HISPZOTLU[L_WLUZLZ
Other expenses
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
53,935
21,265
75,940
604,945
95,216
428,670
2,487

2,706,366
7,198,177
47,877
28,103
41,420
615,881
80,014
297,012
49,148

2,426,067
6,668,211
69,950
28,290
92,757
766,527
103,339
429,373
2,487

2,847,704
7,437,635
65,465
32,014
67,079
740,562
85,954
297,012
49,153

2,549,321
6,839,150
13.1 Auditors Remuneration

Bank
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
Audit fees
Audit related fees & expenses
Non - audit expenses
11,299
4,997
4,969
21,265
10,470
6,541
11,092
28,103
14,798
5,379
8,113
28,290
13,418
6,541
12,055
32,014
14. VALUE ADDED TAX (VAT) AND NATION BUILDING TAX (NBT) ON FINANCIAL SERVICES
Accounting Policy
Value Added Tax

VAT on Financial Services is calculated in accordance with Value Added Tax Act No 14 of 2002 and subsequent amendments thereto.
;OLIHZLMVY[OLJVTW\[H[PVUVM]HS\LHKKLK[H_VUUHUJPHSZLY]PJLZPZ[OLHJJV\U[PUNWYV[ILMVYL=(;HUKPUJVTL[H_HKQ\Z[LKMVY[OL
LJVUVTPJKLWYLJPH[PVUHUKLTVS\TLU[ZWH`HISL[VLTWSV`LLZPUJS\KPUNJHZOILUL[ZUVUJHZOILUL[Z WYV]PZPVUZYLSH[PUN[V[LYTPUHS
ILUL[Z
Nation Building Tax

5);VUUHUJPHSZLY]PJLZPZJHSJ\SH[LKPUHJJVYKHUJL^P[O5H[PVU)\PSKPUN;H_5);(J[5V VM HUKZ\IZLX\LU[HTLUKTLU[Z
[OLYL[V^P[OLMMLJ[MYVTZ[1HU\HY`5);VUUHUJPHSZLY]PJLZPZJHSJ\SH[LKIHZLKVU[OL]HS\LHKKP[PVU\ZLKMVY[OLW\YWVZLVM=(;
VUUHUJPHSZLY]PJLZ
Bank
=HS\LHKKLK[H_VUUHUJPHSZLY]PJLZ
5H[PVUI\PSKPUN[H_VUUHUJPHSZLY]PJLZ
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000

1,904,424

1,536,859

1,997,729

1,598,395
15. INCOME TAX EXPENSE

Accounting Policy
(ZWLY:YP3HURH(JJV\U[PUN:[HUKHYK32(:0UJVTL;H_LZ[H_L_WLUZLPZ[OLHNNYLNH[LHTV\U[PUJS\KLKPUKL[LYTPUH[PVUVMWYV[
VYSVZZMVY[OLWLYPVKPUYLZWLJ[VMJ\YYLU[HUKKLMLYYLK[H_H[PVU0UJVTL[H_L_WLUZLPZYLJVNUPZLKPU[OL:[H[LTLU[VM7YV[VY3VZZ
except to the extent it relates to items recognised directly in equity or other comprehensive income in which case it is recognised in equity
or in other comprehensive income.
346
Current Taxation
Current tax assets and liabilities consist of amounts expected to be recovered from or paid to the Commissioner General of Inland Revenue
in respect of the current year, using the tax rates and tax laws enacted or substantively enacted on the reporting date and any adjustment
to tax payable in respect of prior years.
(JJVYKPUNS`WYV]PZPVUMVY[H_H[PVUPZIHZLKVU[OLWYV[MVY[OL`LHYHKQ\Z[LKMVY[H_H[PVUW\YWVZLZPUHJJVYKHUJL^P[O[OLWYV]PZPVUZVM[OL
0USHUK9L]LU\L(J[5VVMHUK[OLHTLUKTLU[Z[OLYL[VH[[OLYH[LZZWLJPLKPU5V[L[V[OL-PUHUJPHS:[H[LTLU[Z
Deferred Taxation
Deferred tax is provided on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying
HTV\U[ZMVYUHUJPHSYLWVY[PUNW\YWVZLZMVYHSS.YV\WLU[P[PLZ+LMLYYLK[H_SPHIPSP[PLZHYLYLJVNUPZLKMVYHSS[H_HISL[LTWVYHY`KPMMLYLUJLZ
except:
Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a
I\ZPULZZJVTIPUH[PVUHUKH[[OL[PTLVM[OL[YHUZHJ[PVUHMMLJ[ZULP[OLY[OLHJJV\U[PUNWYV[UVY[H_HISLWYV[VYSVZZ
In respect of taxable temporary differences associated with investments in Subsidiaries, where the timing of the reversal of the
temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, carried forward unused tax credits and unused tax losses (if
HU`[V[OLL_[LU[[OH[P[PZWYVIHISL[OH[[H_HISLWYV[^PSSILH]HPSHISLHNHPUZ[ÔPJO[OLKLK\J[PISL[LTWVYHY`KPMMLYLUJLZJHYYPLKMVY^HYK
unused tax credits and unused tax losses can be utilised except:
Where the deferred tax asset relating to the deductible temporary differences arising from the initial recognition of an asset or liability
PUH[YHUZHJ[PVU[OH[PZUV[HI\ZPULZZJVTIPUH[PVUHUKH[[OL[PTLVM[OL[YHUZHJ[PVUHMMLJ[ZULP[OLY[OLHJJV\U[PUNWYV[UVY
[H_HISLWYV[VYSVZZ
In respect of deductible temporary differences associated with investments in Subsidiaries, deferred tax assets are recognised only
[V[OLL_[LU[[OH[P[PZWYVIHISL[OH[[OL[LTWVYHY`KPMMLYLUJLZ^PSSYL]LYZLPU[OLMVYLZLLHISLM\[\YLHUK[H_HISLWYV[^PSSILH]HPSHISL
against which the temporary differences can be utilised.
;OLJHYY`PUNHTV\U[VMKLMLYYLK[H_HZZL[ZPZYL]PL^LKH[LHJOYLWVY[PUNKH[LHUKYLK\JLK[V[OLL_[LU[[OH[P[PZWYVIHISL[OH[Z\MJPLU[
[H_HISLWYV[^PSSILH]HPSHISL[VHSSV^[OLKLMLYYLK[H_HZZL[[VIL\[PSPZLK<UYLJVNUPZLKKLMLYYLK[H_HZZL[ZHYLYLHZZLZZLKH[LHJO
YLWVY[PUNKH[LHUKHYLYLJVNUPZLK[V[OLL_[LU[[OH[P[OHZILJVTLWYVIHISL[OH[M\[\YL[H_HISLWYV[^PSSHSSV^[OLKLMLYYLK[H_HZZL[[VIL
recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the
liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Current and deferred tax assets and liabilities are offset only to the extent that they relate to income taxes imposed by the same taxation
authority, there is a legal right and intentions to settle on a net basis and it is allowed under the tax law of the relevant jurisdiction. Details
of current tax liabilities / receivables and deferred tax assets / liabilities are given in Note 39 and Note 34 to the Financial Statements
respectively.
Bank
Current tax expense

;H_H[PVUIHZLKVUWYV[MVY[OL`LHY
(Over) / under provision in respect of previous years
Current tax expense (Note 15.1)
Deferred tax expense
Transfers to / (from) deferred taxation (Note 34.3)
Income tax expense
Effective tax rate
Effective tax rate (excluding deferred tax)
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000

2,829,791

(365,000)
1,143,934

3,759
2,983,950

(365,000)
1,288,125
137,141
2,966,932
668,783
1,812,717
177,503
3,161,453
691,234
1,979,359
32.6%
31.1%
26.9%
17.0%
32.3%
30.5%
27.3%
17.8%
347
15. INCOME TAX EXPENSE CONTD.

5HFRQFLOLDWLRQRIWKH$FFRXQWLQJ3URWWR&XUUHQW7D[([SHQVH
(YLJVUJPSPH[PVUIL[^LLU[H_L_WLUZLHUK[OLWYVK\J[VMHJJV\U[PUNWYV[T\S[PWSPLKI`HWWSPJHISL[H_YH[LZ^P[OHYLJVUJPSPH[PVUIL[^LLU
average effective tax rate and applicable tax rate for the years ended 31st December 2015 and 2014 are given below.
Bank
7YV[ILMVYL[H_
;H_LMMLJ[VUHJJV\U[PUNWYV[
before tax from operation
Tax effect on turnover
liable for income tax
Tax effect on
Disallowable expenses
Tax deductible expenses
Exempt income
Income from other sources
,SPTPUH[PVUVMWYV[SPHISLMVY
turnover based tax
Qualifying payments
Tax losses
(Over) / under provision in
respect of previous years
Group
2015
2014
2015
Rs 000
Rs 000
Rs 000
2014
%

Rs 000

28.0
2,548,244
28.0
1,883,422
28.0
2,741,100
28.0
2,029,136
5,192
5,210
13.0
(4.3)
(5.6)
-
1,185,408
(395,695)
(508,166)
-
14.2
(13.9)
(5.7)
-
954,227
(934,909)
(382,578)
-
12.8
(4.8)
(5.1)
-
1,255,056
(468,605)
(508,166)
273
14.0
(13.1)
(5.4)
-
1,014,956
(954,279)
(389,841)
341
(0.2)
-
(11,228)
-
(0.4)
-
(44,568)
(91)
(0.6)
(0.1)
-
(40,747)
(11,228)
(423)
31.1
2,829,791
22.4
1,508,934
30.5
2,980,191
22.8
1,653,125
(5.4)
(365,000)
3,759
(5.0)
(365,000)
31.1
2,829,791
17.0
1,143,934
30.5
2,983,950
17.8
1,288,125
15.1.1 Applicable Income Tax Rates
Income tax on Sampath Bank PLC

Income tax on S C Securities (Pvt) Ltd
Income tax on Siyapatha Finance PLC
Income tax on Sampath Information Technology Solutions Ltd
2015
2014
28%
28%
28%
28%
28%
28%
28%
28%
15.1.2 Income Tax on Sampath Centre Ltd

Sampath Centre Ltd is a company approved under BOI Law and the company was exempted from income tax for a period of seven years
JVTTLUJPUNMYVT[OLYZ[`LHYVMHZZLZZTLU[;OLYZ[`LHYVMHZZLZZTLU[PZ[OL`LHYPUÔPJO[OLJVTWHU`JVTTLUJLKTHRPUNWYV[Z
PUYLSH[PVU[VP[Z[YHUZHJ[PVUZPU[OH[`LHYVYHU``LHYVMHZZLZZTLU[UV[SH[LY[OHU]L`LHYZMYVT[OLKH[LVMP[ZYZ[JVTTLYJPHSVWLYH[PVUZ
whichever is earlier. Accordingly, Sampath Centre Ltd is liable for income tax at the rate of 2.0% of the rental income commencing from the
year of assessment 2006 / 2007. Income other than rental income is liable for tax at 28%.
348
16. EARNINGS PER SHARE

Accounting Policy
;OL.YV\WWYLZLU[ZIHZPJHUKKPS\[LK,HYUPUNZWLY:OHYL,7:KH[HMVYP[ZVYKPUHY`ZOHYLZ)HZPJ,7:PZJHSJ\SH[LKI`KP]PKPUN[OLWYV[VY
loss attributable to ordinary equity holders of the Bank by the weighted average number of ordinary shares outstanding during the period.
+PS\[LK,7:PZKL[LYTPULKI`HKQ\Z[PUNIV[O[OLWYV[VYSVZZH[[YPI\[HISL[V[OLVYKPUHY`LX\P[ÒVSKLYZHUK[OL^LPNO[LKH]LYHNLU\TILY
of ordinary shares outstanding, for the effects of all dilutive potential ordinary shares if any.
Details of earnings per share are given below.
16.1 Earnings per Share: Basic

2015
Amount used as the numerator
.YV\WWYV[HM[LY[H_MVY[OL`LHYH[[YPI\[HISL[VLX\P[ÒVSKLYZ9Z
2014

No of ordinary shares used as the denominator

Weighted average number of ordinary shares (Note 16.1.1)
Basic earnings per ordinary share (Rs)
172,312,655
38.44
172,269,389
30.55
16.1.1 Weighted Average Number of Ordinary Shares for Basic EPS

2015
Number of shares held as at 1st January

(KK!5\TILYVMZOHYLZPZZ\LKK\L[VUHSZJYPWKP]PKLUK
Add : Number of shares issued under ESOP
Number of shares held as at 31st December
2014
Outstanding
Weighted
Average
Outstanding
Weighted
Average
167,910,253

172,312,655
172,312,655
167,910,253

172,312,655
172,312,655
167,787,605

172,190,007
122,648
172,312,655
167,787,605

172,190,007
79,382
172,269,389
2015
2014
16.2 Earnings per Share: Diluted
Amount used as the numerator

.YV\WWYV[HM[LY[H_MVY[OL`LHYH[[YPI\[HISL[VLX\P[ÒVSKLYZ9Z
No of ordinary shares used as the denominator
Weighted average number of ordinary shares (Note 16.2.1)
Diluted earnings per ordinary share (Rs)

172,312,655
38.44
172,318,146
30.54
349
16. EARNINGS PER SHARE CONTD.

16.2.1 Weighted Average Number of Ordinary Shares for Diluted EPS
Weighted average number of ordinary shares used for basic EPS

Weighted average number of potential ordinary shares outstanding under ESOP
Weighted average number of potential ordinary shares that would have been issued at
weighted average market price
Weighted average number of potential ordinary shares that would have been issued for no
consideration under ESOP
Weighted average number of ordinary shares adjusted for the effect of dilution
2015
2014
172,312,655
-
172,269,389
79,473
(30,716)
172,312,655
48,757
172,318,146
17. DIVIDEND PAID AND PROPOSED

Accounting Policy
7YV]PZPVUMVYUHSKP]PKLUKPZYLJVNUPZLKH[[OL[PTL[OLKP]PKLUKPZYLJVTTLUKLKHUKKLJSHYLKI`[OL)VHYKVM+PYLJ[VYZHUKPZHWWYV]LK
by the shareholders. Interim dividend payable is recognised when the Board approves such dividend in accordance with the Companies Act
No 7 of 2007.
2015
2014
Gross
Dividend
Rs 000
Dividend
Tax
Rs 000
Net
Dividend
Rs 000
Gross
Dividend
Rs 000
Dividend
Tax
Rs 000
Net
Dividend
Rs 000
Final dividend paid for the years

2014 & 2013 respectively
Out of dividend received - free of tax
6\[VMUVYTHSWYV[
Scrip / cash dividend paid
Dividend per Ordinary Share (Rs)
83,194

1,847,012
11.00

176,382
83,194

1,670,630
9.95
131,818

1,342,631
8.00

121,081
131,818

1,221,550
7.28
Final dividend proposed for the years

2015 & 2014 respectively
Out of dividend received - free of tax
6\[VMUVYTHSWYV[
Scrip / cash dividend payable
Dividend per Ordinary Share (Rs)
78,465

2,240,064
13.00

216,160
78,465

2,023,904
11.75
83,194

1,847,012
11.00

176,382
83,194

1,670,630
9.95
;OL)VHYKVM+PYLJ[VYZVM[OL)HUROHZYLJVTTLUKLK[OLWH`TLU[VMHUHSKP]PKLUKVM9ZWLYZOHYLMVY[OL`LHYLUKLKZ[
December 2015, a distribution of approximately Rs 2,240.064 Mn. This will be paid Rs 6.00 in the form of cash dividend and the balance
Rs 7.00 in the form of scrip dividend.
0UHJJVYKHUJL^P[O:YP3HURH(JJV\U[PUN:[HUKHYK32(:,]LU[ZHM[LY[OL9LWVY[PUN7LYPVKHIV]LWYVWVZLKUHSKP]PKLUKOHZ
not been recognised as a liability as at the year end. Necessary disclosures have been made under Note 51 to the Financial Statements,
Events after the reporting period as required by the said standard.
350
18. ANALYSIS OF FINANCIAL INSTRUMENTS BY MEASUREMENT BASIS

Financial instruments are measured on an ongoing basis either at fair value or at amortised cost. The Accounting Policies describe how
LHJOJH[LNVY`VMUHUJPHSPUZ[Y\TLU[PZTLHZ\YLKHUKOV^PUJVTLHUKL_WLUZLZPUJS\KPUNMHPY]HS\LNHPUZHUKSVZZLZHYLYLJVNUPZLK;OL
MVSSV^PUN[HISLHUHS`ZLZ[OLJHYY`PUNHTV\U[ZVM[OLUHUJPHSPUZ[Y\TLU[ZI`JH[LNVY`HZKLULKPU:YP3HURH(JJV\U[PUN:[HUKHYK32(:
39 (Financial Instruments: Recognition & Measurement) under headings of the Statement of Financial Position.
18.1 Analysis of Financial Instruments by Measurement Basis - Bank

As at 31st December 2015
Note
Financial Assets
pledged as collaterals
Other assets
Total Financial Assets
Financial Liabilities
Due to banks
Securities sold under repurchase
agreements
Dividend payable
Other liabilities
Total Financial Liabilities
Held for
Trading
Rs 000
Amortised
Cost
Rs 000
Held to
Maturity
Rs 000
Available
for Sale
Rs 000
Rs 000

23

1,889,058
13,588,075
21,341,882
5,193,369

-

-

-
13,588,075
21,341,882
5,193,369

1,889,058
24
25
26
27
28
2,702,785
-
1,651,205
375,696,530
33,368,274
-
51,250,411
2,702,785
1,651,205
375,696,530
33,368,274
51,250,411
29
30
4,911,304
1,964,787
452,804,122
7,210,585
58,460,996
7,210,585
1,964,787
516,176,422
36

3,418,499

3,418,499

457,058
9,316,122
406,323,019
57,016,284
90,969
5,083,897
481,248,790
9,316,122
406,323,019
57,016,284
90,969
5,083,897
481,705,848
19
20
21
37
38
Total
351
18. ANALYSIS OF FINANCIAL INSTRUMENTS BY MEASUREMENT BASIS CONTD.

18.2 Analysis of Financial Instruments by Measurement Basis - Bank
Note
Financial Assets
Loans to & receivables from
other customers
Other assets
Due to banks
agreements
Dividend payable
Other liabilities
352
Held for
Trading
Rs 000
Amortised
Cost
Rs 000
Held to
Maturity
Rs 000
Available
for Sale
Rs 000
Rs 000

23

17,024,253
11,556,620
17,607,251
1,791,698
31,285,348

-

-

-
11,556,620
17,607,251
1,791,698
31,285,348

17,024,253
24
25
13,205,359
-
934,976
13,205,359
934,976
26
27
28
301,434,602
24,026,116
-
1,581,622
301,434,602
24,026,116
1,581,622
29
30
30,406,836
1,157,226
389,793,837
980,165
980,165
1,581,622
980,165
1,157,226
422,762,460
36

2,486,747

2,486,747

52,179
13,001,462
339,969,141
36,335,599
79,284
3,854,603
395,726,836
13,001,462
339,969,141
36,335,599
79,284
3,854,603
395,779,015
19
20
21
37
38
Total
18.3 Analysis of Financial Instruments by Measurement Basis - Group

Note
Financial Assets
other customers
Other assets
Due to banks
Securities sold under
repurchase agreements
Dividend payable
Other liabilities
Held for
Trading
Rs 000
Amortised
Cost
Rs 000
Held to
Maturity
Rs 000
Available
for Sale
Rs 000
Rs 000

23

1,898,074
13,713,456
21,341,882
5,193,369

-

-

-
13,713,456
21,341,882
5,193,369

1,898,074
24
25
2,693,769
-
1,651,205
2,693,769
1,651,205
26
27
28
386,277,744
33,368,274
-
51,941,479
386,277,744
33,368,274
51,941,479
29
30
4,911,304
2,099,327
463,645,257
63,121
63,121
6,519,573
58,461,052
6,519,573
63,121
2,099,327
527,080,734
36

3,418,499

3,418,499

457,058
8,662,930
407,163,665
65,170,977
90,969
5,391,243
489,898,283
8,662,930
407,163,665
65,170,977
90,969
5,391,243
490,355,341
19
20
21
37
38
Total
353
18. ANALYSIS OF FINANCIAL INSTRUMENTS BY MEASUREMENT BASIS CONTD.

18.4 Analysis of Financial Instruments by Measurement Basis - Group
Note
Financial Assets
other customers
Other assets
Due to banks
Dividend payable
Other liabilities
354
Held for
Trading
Rs 000
Amortised
Cost
Rs 000
Held to
Maturity
Rs 000
Available
for Sale
Rs 000
Rs 000

23

17,024,253
11,645,326
17,607,251
1,791,698
31,285,348

-

-

-
11,645,326
17,607,251
1,791,698
31,285,348

17,024,253
24
25
13,205,359
-
934,976
13,205,359
934,976
26
27
28
309,569,370
24,026,116
-
1,581,678
309,569,370
24,026,116
1,581,678
29
30
30,406,836
1,372,780
398,232,865
984,363
984,363
1,581,678
984,363
1,372,780
431,205,742
36

2,508,869

2,508,869

52,179
12,500,414
339,678,722
43,610,816
79,284
3,878,578
402,256,683
12,500,414
339,678,722
43,610,816
79,284
3,878,578
402,308,862
19
20
21
37
38
Total
19. CASH & CASH EQUIVALENTS

Accounting Policy
*HZOHUKJHZOLX\P]HSLU[ZJVTWYPZLJHZOPUOHUKIHSHUJLZ^P[OIHURZTVUL`H[JHSSHUKZOVY[UV[PJL[OH[HYLZ\IQLJ[[VHUPUZPNUPJHU[
risk of changes in their value. Cash and cash equivalents are carried at amortised cost in the Statement of Financial Position.
-VY[OLW\YWVZLVM[OL:[H[LTLU[VM*HZO-SV^JHZOHUKJHZOLX\P]HSLU[ZJVUZPZ[VMJHZOHUKZOVY[[LYTKLWVZP[ZHZKLULKHIV]L
placements with banks, net of unfavourable balances with local & foreign banks.
Details of cash and cash equivalents in the Statement of Financial Position are given below.
Bank
As at 31st December
Local currency in hand

Foreign currency in hand
Balances with local banks
Balances with foreign banks
Money at call & short notice
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
7,499,502
1,454,651
61,267
1,642,172
2,930,483
13,588,075
6,126,067
2,046,683
63,209
1,312,448
2,008,213
11,556,620
7,582,388
1,454,651
103,762
1,642,172
2,930,483
13,713,456
6,138,602
2,046,683
139,380
1,312,448
2,008,213
11,645,326
20. BALANCES WITH CENTRAL BANK OF SRI LANKA

Accounting Policy
As required by the provisions of Section 93 of the Monetary Law Act, a cash balance is maintained with the Central Bank of Sri Lanka. As
at 31st December 2015, the minimum cash reserve requirement was 6% (2014: 6%) of the rupee deposit liabilities. There is no reserve
requirement for foreign currency deposit liabilities of the Domestic Banking Unit (DBU) and the deposit liabilities of the Foreign Currency
Banking Unit (FCBU).
Balances with Central Bank of Sri Lanka are carried at amortised cost in the Statement of Financial Position.
Bank & Group
As at 31st December
Statutory reserve requirement
2015
Rs 000
2014
Rs 000
21,341,882
21,341,882
17,607,251
17,607,251
355
21. PLACEMENTS WITH BANKS

Bank & Group
As at 31st December
Placements - in Sri Lanka

Placements - out side Sri Lanka
2015
Rs 000
2014
Rs 000
5,193,369
5,193,369
1,791,698
1,791,698
22. DERIVATIVE FINANCIAL INSTRUMENTS

Accounting Policy
+LYP]H[P]LZHYLUHUJPHSPUZ[Y\TLU[Z[OH[KLYP]L[OLPY]HS\LPUYLZWVUZL[VJOHUNLZPUPU[LYLZ[YH[LZUHUJPHSPUZ[Y\TLU[WYPJLZJVTTVKP[`
prices, foreign exchange rates, credit risk and indices. Derivatives are categorised as trading unless they are designated as hedging
instruments.
(SSKLYP]H[P]LZHYLPUP[PHSS`YLJVNUPZLKHUKZ\IZLX\LU[S`TLHZ\YLKH[MHPY]HS\L^P[OHSSYL]HS\H[PVUNHPUZYLJVNUPZLKPU[OL:[H[LTLU[VM7YV[
VY3VZZL_JLW[ÔLYLJHZOV^VYUL[PU]LZ[TLU[OLKNPUNOHZILLUHJOPL]LKPUÔPJOJHZL[OLLMMLJ[P]LWVY[PVUVMJOHUNLZPUMHPY]HS\L
is recognised within other comprehensive income). Fair values may be obtained from quoted market prices in active markets, recent market
[YHUZHJ[PVUZHUK]HS\H[PVU[LJOUPX\LZPUJS\KPUNKPZJV\U[LKJHZOV^TVKLSZHUKVW[PVUWYPJPUNTVKLSZHZHWWYVWYPH[L>OLYL[OLPUP[PHSS`
recognised fair value of a derivative contract is based on a valuation model that uses inputs that are not observable in the market, it follows
[OLZHTLPUP[PHSYLJVNUP[PVUHJJV\U[PUNWVSPJ`HZMVYV[OLYUHUJPHSHZZL[ZHUKSPHIPSP[PLZ(SSKLYP]H[P]LZHYLJHYYPLKHZHZZL[ZÔLUMHPY]HS\LPZ
positive and as liabilities when fair value is negative.
*LY[HPUKLYP]H[P]LZLTILKKLKPUV[OLYUHUJPHSPUZ[Y\TLU[ZZ\JOHZ[OLJVU]LYZPVUVW[PVUPUHJVU]LY[PISLIVUKOLSKHYL]HS\LKHZ
separate derivatives when their economic characteristics and risks are not closely related to those of the host contract and the host
JVU[YHJ[PZUV[JHYYPLKH[MHPY]HS\L[OYV\NOWYV[VYSVZZ;OLZLLTILKKLKKLYP]H[P]LZHYLTLHZ\YLKH[MHPY]HS\L^P[OJOHUNLZPU
MHPY]HS\LYLJVNUPZLKPU[OL:[H[LTLU[VM7YV[VY3VZZ,TILKKLKKLYP]H[P]LZJVU[PU\L[VILWYLZLU[LK^P[O[OLOVZ[JVU[YHJ[HUKHYLUV[
separately disclosed or included within derivatives. The Group did not have separated embedded derivatives as at 31st December 2015.
;OL[HISLILSV^ZOV^Z[OLMHPY]HS\LZVMKLYP]H[P]LUHUJPHSPUZ[Y\TLU[ZVM[OL)HUR.YV\WYLJVYKLKHZHZZL[ZVYSPHIPSP[PLZ[VNL[OLY^P[O
their notional amounts. The notional amounts indicate the volume of transactions outstanding at the year end and are indicative of neither
the market risk nor the credit risk.
Bank & Group

As at 31st December
Forward foreign exchange contracts

- Sales
- Purchases
Currency SWAPS
-Sales
-Purchases
356
2015
Assets
Liabilities
Rs 000
2014
Assets
Liabilities
Rs 000
Notional
Amount
Rs 000
Rs 000
Rs 000
Notional
Amount
Rs 000
17,137
103,876
196,952
20,537
11,466,029
4,391,390
55,262
20,934
20,836
20,249
7,674,169
3,457,169
358
198,090
319,461
239,256
313
457,058
14,967,515
13,421,768
44,246,702
95,138
5,890
177,224
3,804
7,290
52,179
12,889,382
7,005,445
31,026,165
23. FINANCIAL ASSETS HELD FOR TRADING

Bank
As at 31st December
Government securities - treasury bills (Note 23.1)

Quoted equity securities (Note 23.2)
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
1,767,317
121,741
1,889,058
16,331,920
692,333
17,024,253
1,776,333
121,741
1,898,074
16,331,920
692,333
17,024,253
23.1 Government Securities - Treasury Bills

Bank
As at 31st December
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
Amortised cost
1,767,522
16,319,224
1,776,536
16,319,224
Gain / (loss) from mark to market valuation as at 1st January

Movement during the year
Gain / (loss) from mark to market valuation as at 31st December
Market value
12,696
(12,901)
(205)
1,767,317
332,397
(319,701)
12,696
16,331,920
12,696
(12,899)
(203)
1,776,333
332,397
(319,701)
12,696
16,331,920
357
23. FINANCIAL ASSETS HELD FOR TRADING CONTD.

23.2 Quoted Equity Securities
Bank & Group
As at 31st December
2015
No of
Ordinary
Shares
2014
Cost of
Investment
Market
Value
Rs 000
Rs 000
No of
Ordinary
Shares
Cost of
Investment
Market
Value
Rs 000
Rs 000
Name of the company

%DQNVQDQFH LQVXUDQFH
Commercial Bank of Ceylon PLC
Pan Asia Banking Corporation PLC
/H[[VU5H[PVUHS)HUR73*
National Development Bank PLC
DFCC Bank PLC

600,000
-

107,943
107,943

116,460
116,460
821,902
1,380,532

600,000
39,000
79,883
10,932

107,943
7,559
242,139
140,546
35,756

150,000
8,541
369,076
'LYHUVLHGKROGLQJV
Aitken Spence PLC
1VOU2LLSSZ/VSKPUNZ73*
1VOU2LLSSZ/VSKPUNZ73*>HYYHU[
1VOU2LLSSZ/VSKPUNZ73*>HYYHU[
:VM[SVNPJ/VSKPUNZ73*
Vallibel One PLC

245,600

6,140
6,140

5,281
5,281
270,000

245,600
54,512

6,140
282,034
27,945

5,870
266,771
114,083
121,741
483,200
10,237
10,237
534,410
56,486
56,486
692,333
Manufacturing
Royal Ceramics Lanka PLC
Total
Gain / (loss) from mark to market
valuation as at 1st January
Gain / (loss) from mark to market
valuation as at 31st December
Market value
358
157,923
(150,265)
113,244
44,679
7,658
121,741
157,923
692,333
24. FINANCIAL ASSETS HELD FOR TRADING PLEDGED AS COLLATERALS

The Bank pledges assets that are in its Statement of Financial Position in day to day transaction which are conducted under the usual
terms and conditions applying such agreements. The Bank has pledged the investments in government securities held for trading purposes
against securities hold under repurchase agreements. Market value of the pledged securities are given below.
Bank
As at 31st December
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
Amortised cost
2,702,335
13,197,647
2,693,321
13,197,647

Market value
7,712
(7,262)
450
2,702,785
(298)
8,010
7,712
13,205,359
7,712
(7,264)
448
2,693,769
(298)
8,010
7,712
13,205,359
2015
Rs 000
2014
Rs 000
1,651,205
1,651,205
934,976
934,976
2015
Rs 000
2014
Rs 000
8,265
1,543,325
99,615
1,651,205
9,062
925,914
934,976
25. LOANS TO & RECEIVABLES FROM BANKS

Bank & Group
As at 31st December
Gross loans & receivables (Note 25.1)

Less: Provision for impairment losses
25.1 At Amortised Cost:

As at 31st December
Leasing
Term loans
Overdraft
26. LOANS TO & RECEIVABLES FROM OTHER CUSTOMERS

Bank
As at 31st December
Gross loans & receivables

Staff loan fair value adjustment (Note 35.1)
0UKP]PK\HSS`ZPNUPJHU[J\Z[VTLYSVHUPTWHPYTLU[5V[L
Collective loan impairment (Note 26.2.2)
Total impairment (Note 26.2)
Net loans & receivables
2015
Rs 000
384,605,379
(1,911,559)
382,693,820

(3,977,675)
(6,997,290)
375,696,530
Group
2014
Rs 000
310,485,813
(2,043,632)
308,442,181

(4,128,681)
(7,007,579)
301,434,602
2015
Rs 000
395,565,780
(1,911,559)
393,654,221

(4,132,558)
(7,376,477)
386,277,744
2014
Rs 000
318,946,399
(2,043,632)
316,902,767

(4,321,659)
(7,333,397)
309,569,370
359
26. LOANS TO & RECEIVABLES FROM OTHER CUSTOMERS CONTD.

26.1 At Amortised Cost:
Bank
As at 31st December
Bills of exchange
Leasing (Note 26.4)
/V\ZPUNSVHUZ
Export loans
Import loans
9LUHUJLSVHUZ
Term loans
/PYLW\YJOHZL5V[L
Loans against investment fund account (IFA)
Overdrafts
Staff loans
Pawning
Credit cards
Money market loans
Factoring
Others
Staff loan fair value adjustment (Note 35.1)
Provision for impairment losses (Note 26.2)
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
3,380,096
18,674,969

16,851,433
44,276,694

156,978,522

1,240,321
66,577,001
6,573,733
13,471,959
7,852,432
18,211,645
1,382,810
236,863
384,605,379
(1,911,559)
382,693,820
(6,997,290)
375,696,530
3,089,587
8,309,654

14,077,805
37,390,081

107,853,318

1,993,647
52,863,856
5,759,553
24,588,444
6,677,703
24,194,339
642,780
129,109
310,485,813
(2,043,632)
308,442,181
(7,007,579)
301,434,602
3,380,096
27,984,868

16,851,433
44,276,694

154,054,403

1,252,356
66,403,013
6,645,599
14,262,043
7,852,432
18,211,645
2,619,645
737,236
395,565,780
(1,911,559)
393,654,221
(7,376,477)
386,277,744
3,089,587
11,785,593

14,077,805
37,390,081

107,004,243

2,020,084
52,734,375
5,759,553
25,061,548
6,677,703
23,654,339
1,676,269
786,820
318,946,399
(2,043,632)
316,902,767
(7,333,397)
309,569,370
26.2 Provision for Impairment Losses

Bank
As at 31st December
0UKP]PK\HSS`ZPNUPJHU[J\Z[VTLYSVHUPTWHPYTLU[5V[L
Collective loan impairment (Note 26.2.2)
Total impairment (Note 26.3)
360
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000

3,977,675
6,997,290

4,128,681
7,007,579

4,132,558
7,376,477

4,321,659
7,333,397
0UKP]PK\HSS`:PNUPJHU[*\Z[VTLY3VHU0TWHPYTLU[
Bank
2015
Rs 000
Group
2014
Rs 000
2015
Rs 000
2014
Rs 000
Balance as at 1st January

5L[JOHYNLYL]LYZHS[VWYV[VYSVZZ5V[L
Write-off during the year
Interest accrued on impaired loans & receivables (Note 7.1)
Other movements
Balance as at 31st December
2,878,898

(260,357)
(212,711)
100,437
3,019,615
3,152,348

(195,890)
(158,333)
156,038
2,878,898
3,011,738

(260,357)
(212,873)
104,492
3,243,919
3,192,766

(208,385)
(158,841)
164,325
3,011,738
Gross amount of loans individually determined to be impaired,

before deducting the individually assessed impairment provision
4,919,097
4,816,164
5,506,819
4,987,894
26.2.2 Collective Loan Impairment

Bank
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
4,128,681

(590,252)
11,414
3,977,675
6,827,729

(4,146,381)
(226)
4,128,681
4,321,659

(590,252)
11,615
4,132,558
6,940,917

(4,152,328)
(569)
4,321,659
Loans &
Receivables
2015
Total
2014
Total
Rs 000
Leasing
& Hire
Purchase
Rs 000
Rs 000
Rs 000
Rs 000
402,939

(459,319)
116,346

-
6,488,294

(391,290)
7,007,579

(850,609)
9,980,077

(4,342,271)
35,718
140,678
(212,711)
111,851
6,820,894
(212,711)
111,851
6,997,290
(158,333)
155,812
7,007,579

5L[JOHYNLYL]LYZHS[VWYV[VYSVZZ5V[L
Other movements
26.3 Movement in Provision for Impairment Losses - by Product

Bank

5L[JOHYNLYL]LYZHS[VWYV[VYSVZZ
Interest accrued on impaired
loans & receivables (Note 7.1)
Other movements
Pawning
361

26.3 Movement in Provision for Impairment Losses - by Product Contd.
Group
Pawning
Rs 000
5L[JOHYNLYL]LYZHS[VWYV[VYSVZZ
Interest accrued on impaired
loans & receivables (Note 7.1)
Other movements
Leasing
& Hire
Purchase
Rs 000
Loans &
Receivables
2015
Total
2014
Total
Rs 000
Rs 000
Rs 000
419,850

(459,319)
302,738

-
6,610,809

(391,290)
7,333,397

(850,609)
10,133,683

(4,360,713)
54,963
202
286,681
(212,873)
115,905
7,034,833
(212,873)
116,107
7,376,477
(158,841)
163,756
7,333,397
26.4 Leasing
Bank
As at 31st December
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
Total lease rentals receivable

Unearned lease interest income
Gross lease receivable
Impairment allowance for lease receivable
Net lease receivable
22,443,211
(3,768,242)
18,674,969
(134,998)
18,539,971
10,229,716
(1,920,062)
8,309,654
(112,909)
8,196,745
34,436,790
(6,451,922)
27,984,868
(227,155)
27,757,713
14,676,006
(2,890,413)
11,785,593
(237,392)
11,548,201
Gross lease receivable within one year (Note 26.4.1)

Gross lease receivable after one year (Note 26.4.2)
5,398,278
13,276,691
18,674,969
2,858,331
5,451,323
8,309,654
7,969,809
20,015,059
27,984,868
4,168,102
7,617,491
11,785,593
26.4.1 Gross Lease Receivable within One Year

Bank
As at 31st December
Total lease rentals receivable within one year from reporting date
Gross lease receivable within one year
Net lease receivable within one year
362
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
7,081,283
(1,683,005)
5,398,278
(39,023)
5,359,255
3,821,165
(962,834)
2,858,331
(38,838)
2,819,493
10,831,195
(2,861,386)
7,969,809
(67,770)
7,902,039
5,616,644
(1,448,542)
4,168,102
(89,411)
4,078,691
26.4.2 Gross Lease Receivable after One Year

Bank
As at 31st December
Total lease rentals receivable after one year from reporting date
Gross lease receivable after one year
Net lease receivable after one year
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
15,361,928
(2,085,237)
13,276,691
(95,975)
13,180,716
6,408,551
(957,228)
5,451,323
(74,071)
5,377,252
23,605,595
(3,590,536)
20,015,059
(159,385)
19,855,674
9,059,362
(1,441,871)
7,617,491
(147,981)
7,469,510
26.5 Hire Purchase

Bank
As at 31st December
Total hire purchase rentals receivable

Unearned hire purchase interest income
Gross hire purchase receivable
Impairment allowance for hire purchase receivable
Net hire purchase receivable
Gross hire purchase receivable within one year (Note 26.5.1)
Gross hire purchase receivable after one year (Note 26.5.2)
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
1,000,204
(182,044)
818,160
(5,680)
812,480
1,060,033
(233,787)
826,246
(3,437)
822,809
3,642,230
(686,654)
2,955,576
(59,526)
2,896,050
6,745,360
(1,606,652)
5,138,708
(65,346)
5,073,362
260,619
557,541
818,160
211,670
614,576
826,246
1,191,985
1,763,591
2,955,576
1,685,197
3,453,511
5,138,708
26.5.1 Gross Hire Purchase Receivable within One Year

Bank
As at 31st December
Total hire purchase rentals receivable within

one year from reporting date
Gross hire purchase receivable within one year
Net hire purchase receivable within one year
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
351,504
(90,885)
260,619
(1,810)
258,809
313,219
(101,549)
211,670
(880)
210,790
1,597,529
(405,544)
1,191,985
(27,036)
1,164,949
2,502,503
(817,306)
1,685,197
(24,720)
1,660,477
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
648,700
(91,159)
557,541
(3,870)
553,671
746,814
(132,238)
614,576
(2,557)
612,019
2,044,701
(281,110)
1,763,591
(32,490)
1,731,101
4,242,857
(789,346)
3,453,511
(40,626)
3,412,885
26.5.2 Gross Hire Purchase Receivable after One Year

Bank
As at 31st December
Total hire purchase rentals receivable after

one year from reporting date
Gross hire purchase receivable after one year
Net hire purchase receivable after one year
Group
363

26.6 Loans to & Receivables from Other Customers - by Currency
Bank
As at 31st December
Sri Lanka Rupee

United States Dollar
Euro
Great Britain Pounds
Australian Dollar
Swiss Franc
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
336,021,611
46,393,449
1,431,338
725,310
33,627
44
384,605,379
267,457,370
39,064,748
3,255,627
707,696
372
310,485,813
346,982,012
46,393,449
1,431,338
725,310
33,627
44
395,565,780
275,917,956
39,064,748
3,255,627
707,696
372
318,946,399
26.7 Loans to & Receivables from Other Customers - by Product

Bank
As at 31st December
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
By Product - LKR
Bills of exchange
Leasing
/V\ZPUNSVHUZ
Export loans
Import loans
9LUHUJLSVHUZ
Term loans
/PYLW\YJOHZL
Loans against investment fund account (IFA)
Overdrafts
Staff loans
Pawning
Credit cards
Money market loans
Factoring
Others
Sub total
602,014
18,674,969

929,341
40,114,922

133,581,764

1,240,321
64,580,408
6,573,733
13,471,959
7,852,432
18,211,645
1,382,810
91,276
336,021,611
479,659
8,309,654

436,145
30,880,518

89,818,764

1,993,647
50,863,149
5,759,553
24,588,444
6,677,703
24,194,339
642,780
28,749
267,457,370
602,014
27,984,868

929,341
40,114,922

130,657,645

1,252,356
64,406,420
6,645,599
14,262,043
7,852,432
18,211,645
2,619,645
591,649
346,982,012
479,659
11,785,593

436,145
30,880,518

88,969,689

2,020,084
50,733,668
5,759,553
25,061,548
6,677,703
23,654,339
1,676,269
686,460
275,917,956
By Product - Foreign Currency

Bills of exchange
/V\ZPUNSVHUZ
Export loans
Import loans
Term loans
Overdrafts
Others
Sub total
Total
2,778,082

15,922,092
4,161,772
23,396,758
1,996,593
145,587
48,583,768
384,605,379
2,609,928

13,641,660
6,509,563
18,034,554
2,000,707
100,360
43,028,443
310,485,813
2,778,082

15,922,092
4,161,772
23,396,758
1,996,593
145,587
48,583,768
395,565,780
2,609,928

13,641,660
6,509,563
18,034,554
2,000,707
100,360
43,028,443
318,946,399
364
26.8 Loans to & Receivables from Other Customers - by Industry

Bank
As at 31st December
Agriculture & related

Manufacturing
Tourism
Transport
Construction
Traders
Financial and business services
Government
Infrastructure
Other services
Consumers
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
39,028,789
56,131,661
23,906,626
9,333,403
53,484,404
95,369,936
27,068,203
495,801
13,542,815
15,459,626
50,784,115
384,605,379
36,588,318
44,684,989
18,563,405
5,525,194
35,233,551
75,853,270
20,213,178
269,729
13,947,757
9,887,238
49,719,184
310,485,813
39,806,376
56,692,291
24,026,527
9,582,623
53,823,140
97,410,518
24,235,514
495,801
13,542,815
25,166,060
50,784,115
395,565,780
37,272,480
45,376,142
18,563,405
5,756,247
35,554,309
77,760,625
19,005,565
269,729
13,947,757
15,720,956
49,719,184
318,946,399
2015
Rs 000
2014
Rs 000
7,182,407
22,642,983

33,368,274
4,543,481
17,201,320

24,026,116
27. OTHER LOANS & RECEIVABLES

Bank & Group
As at 31st December
Debentures - quoted (Note 27.1)

Preference shares (Note 27.2)
Sri Lanka Development Bonds (SLDBs)
3LHZLKIHJRLK[Y\Z[JLY[PJH[LZ5V[L
365
27. OTHER LOANS & RECEIVABLES CONTD.

27.1 Debentures - Quoted
Bank & Group
As at 31st December
Name of the Company

Banks, Finance & Insurance
Alliance Finance PLC
Central Finance Company PLC
Commercial Leasing & Finance PLC
DFCC Vardhana Bank
/V\ZPUN+L]LSVWTLU[-PUHUJL*VYWVYH[PVU)HURVM:YP3HURH
Lanka Orix Leasing Company PLC
Orient Finance PLC
Pan Asia Banking Corporation PLC
Peoples Leasing & Finance PLC
Senkadagala Finance PLC
Singer Finance PLC
Softlogic Finance PLC
Vanik Incorporation Ltd
Constructions & Engineering

Access Engineering PLC
MTD Walkers PLC
'LYHUVLHG+ROGLQJV
Abans PLC
/H`SL`Z73*
/LTHZ/VSKPUNZ73*
Singer Sri Lanka PLC
Others
Kotagala Plantations PLC
Lion Brewery Ceylon PLC
Urban Development Authority
Provision for impairment
366
2015
Amortised
Cost
Rs 000
2014
Amortised
Cost
Rs 000
254,447
347,876
470,935
224,863

511,342
418,745
49,790
742,520
41,052
237,083
425,248
750
4,071,712
242,102
131,725

504,685
400,595
596,382
41,052
424,851
750
2,487,173
303,707
512,421
816,128
731,072

758,672
1,707,278
711,972

308,067
1,032,701
78,146
509,893
588,039
7,183,157
(750)
7,182,407
78,146
502,580
443,631
1,024,357
4,544,231
(750)
4,543,481
27.2 Preference Shares

Bank & Group
As at 31st December
Texpro Industries Ltd

(15% non cumulative redeemable preference shares of Rs 10/- each redeemable over a period of
6 years commencing from 30th June 2003)
2015
Amortised
Cost
Rs 000
2014
Amortised
Cost
Rs 000
12,604
12,604
(12,604)
-
12,604
12,604
(12,604)
-
2015
Amortised
Cost
Rs 000
2014
Amortised
Cost
Rs 000
206,090
2,834,301
226,893
275,600
3,542,884
3,542,884
300,438
1,924,869
19,534
36,474
2,281,315
2,281,315
/HDVH%DFNHG7UXVW&HUWLFDWHV
Bank & Group
As at 31st December
Citizens Development Business Finance PLC

Peoples Leasing & Finance PLC
Associated Motor Finance Company PLC
Mercantile Investment & Finance PLC
UB Finance Co Ltd
28. FINANCIAL ASSETS AVAILABLE FOR SALE

Bank
As at 31st December
Government securities - treasury bills (Note 28.1)

Government securities - treasury bonds (Note 28.2)
Quoted equity securities (Note 28.3)
Unquoted equity securities (Note 28.4)
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
44,649,558
5,327,185
1,217,611
56,057
51,250,411
1,533,863
47,759
1,581,622
45,340,570
5,327,185
1,217,611
56,113
51,941,479
1,533,863
47,815
1,581,678
367
28. FINANCIAL ASSETS AVAILABLE FOR SALE CONTD.

28.1 Government Securities - Treasury Bills
Bank
As at 31st December
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
Amortised cost
44,653,195
45,344,754

(Loss) / gain from mark to market valuation as at 31st December
Market value
(3,637)
(3,637)
44,649,558
(4,184)
(4,184)
45,340,570
2015
Rs 000
2014
Rs 000
Amortised cost
5,328,569

Market value
(1,384)
(1,384)
5,327,185
28.2 Government Securities - Treasury Bonds

Bank & Group
As at 31st December
28.3 Quoted Equity Securities

Quoted equity securities include the investment in ordinary shares of LankaBangla Finance Ltd in Bangladesh.
Bank & Group
As at 31st December
2015
No of
Ordinary
Shares
Cost of the investment as at 1st January

Exchange gain / (loss)
Scrip dividend received during the year
Cost of the investment as at 31st December
Market Value
368
20,720,700
2,072,070
22,792,770
2014
Rs 000
289,628
32,061
33,855
355,544
1,244,235
(382,168)
862,067
1,217,611
No of
Ordinary
Shares
19,734,000
986,700
20,720,700
Rs 000
272,065
993
16,570
289,628
1,944,035
(699,800)
1,244,235
1,533,863
28.4 Unquoted Equity Securities

As at 31st December
2015
No of
Ordinary
Shares
Bank
Name of the company
LankaBangla Securities Ltd
Credit Information Bureau
SWIFT
Fitch Rating Lanka Ltd
Lanka Financial Services Bureau Ltd
Lanka Rating Agency Ltd
Total
242,550
1,700
26
62,500
2,000,000
225,000
1,241,263
Impairment provision as at 1st January

Impairment provision as at 31st December
Market value
Group
Name of the company
SWIFT
Fitch Rating Lanka Ltd
Lanka Financial Services Bureau Ltd
Lanka Rating Agency Ltd
Total
Impairment provision as at 1st January
Impairment provision as at 31st December
Market value
2014
Cost of
Investment
Market
Value
Rs 000
Rs 000
42,434
170
6,556
625
20,000
2,250
15,516
87,551
10,940
170
6,556
625
20,000
2,250
15,516
56,057
No of
Ordinary
Shares
220,500
1,700
18
62,500
2,000,000
225,000
1,241,263
(29,105)
(2,389)
(31,494)
56,057
242,550
1,800
26
62,500
2,000,000
225,000
1,241,263
42,434
226
6,556
625
20,000
2,250
15,516
87,607
(29,105)
(2,389)
(31,494)
56,113
Cost of
Investment
Market
Value
Rs 000
Rs 000
38,238
170
65
625
20,000
2,250
15,516
76,864
9,133
170
65
625
20,000
2,250
15,516
47,759
(29,105)
(29,105)
47,759
10,940
226
6,556
625
20,000
2,250
15,516
56,113
220,500
1,800
18
62,500
2,000,000
225,000
1,241,263
38,238
226
65
625
20,000
2,250
15,516
76,920
9,133
226
65
625
20,000
2,250
15,516
47,815
(29,105)
(29,105)
47,815
Directors carried out an impairment assessment of the unquoted share investments held by the Bank and concluded that a further
impairment of Rs 2.389 Mn (Note 11) to be made against the investment in LankaBangala Securities Ltd since there is a permanent
decline in value of the investment. The valuation technique and the assumptions used to determine the fair value of the said investment are
disclosed in Note 52.5.2.
Other unquoted available for sale equity securities are recorded at cost since it is the most reasonable value available to represent the
market value of these investments as at the reporting date.
369
29. FINANCIAL ASSETS AVAILABLE FOR SALE PLEDGED AS COLLATERALS

Bank
As at 31st December
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
Amortised cost
7,247,167
6,555,608
(Loss) /gain from mark to market valuation as at 1st January

Market value
(36,582)
(36,582)
7,210,585
(36,035)
(36,035)
6,519,573
30. FINANCIAL ASSETS HELD TO MATURITY

Bank
As at 31st December
Government securities - treasury bills & bonds
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
980,165
980,165
63,121
63,121
984,363
984,363
31. INVESTMENT IN SUBSIDIARIES

Accounting Policy
Subsidiaries are entities that are controlled by the Bank. The Bank is presumed to control an investee when it is exposed or has rights to
variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. At each
reporting date the Bank reassesses whether it controls an investee if facts and circumstances indicate that there are changes to one or
more elements of control mentioned above.
The Financial Statements of Subsidiaries are fully consolidated from the date on which control is transferred to the Bank and continue to
be consolidated until the date when such control ceases. The Financial Statements of the Banks Subsidiaries are prepared for the same
reporting year as per the Bank, using consistent accounting policies.
The cost of acquisition of a Subsidiary is measured as the fair value of the consideration, including contingent consideration, given on the
KH[LVM[YHUZMLYVM[P[SL;OLHJX\PYLKPKLU[PHISLHZZL[ZSPHIPSP[PLZHUKJVU[PUNLU[SPHIPSP[PLZHYLTLHZ\YLKH[[OLPYMHPY]HS\LZH[[OLKH[LVM
acquisition. Subsequent to the initial measurement, the Bank continues to recognise the investments in Subsidiaries at cost.
The total assets and liabilities of the Subsidiaries as at the reporting date are included in the Consolidated Statement of Financial Position.
;OL[V[HSWYV[VYSVZZMVY[OL`LHYVM[OL:\IZPKPHYPLZPZPUJS\KLKPU[OL*VUZVSPKH[LK:[H[LTLU[VM7YV[VY3VZZ;OLUVUJVU[YVSSPUNPU[LYLZ[
is presented in the Consolidated Statement of Financial Position within equity, separately from the equity attributable to the equity holders
VM[OL)HUR5VUJVU[YVSSPUNPU[LYLZ[PU[OLWYV[VYSVZZVM[OL.YV\WPZKPZJSVZLKPU[OL*VUZVSPKH[LK:[H[LTLU[VM*VTWYLOLUZP]L0UJVTL
Total comprehensive income is allocated to the owners of the parent and to the non controlling interests even if this results in non controlling
PU[LYLZ[ZOH]PUNHKLJP[IHSHUJL
Intra-group balances and any income and expenses arising from intra-group transactions are eliminated in preparing the Consolidated
Financial Statements. Unrealised losses are eliminated in the same way as unrealised gains, except that they are only eliminated to the
extent that there is no evidence of impairment.
When a Subsidiary is acquired or sold during the year, operating results of such Subsidiary is included from the date of acquisition or to the
370
date of disposal. Upon the loss of control, the Group derecognises the assets and liabilities of the Subsidiary, any non controlling interests
HUK[OLV[OLYJVTWVULU[ZVMLX\P[`YLSH[LK[V[OL:\IZPKPHY`(U`Z\YWS\ZVYKLJP[HYPZPUNVU[OLSVZZVMJVU[YVSPZYLJVNUPZLKPU[OL
Statement of Changes in Equity.
If the Group retains any interest in the previous Subsidiary, then such interest is measured at fair value at the date that control is lost.
:\IZLX\LU[S`P[PZHJJV\U[LKMVYHZHULX\P[`HJJV\U[LKPU]LZ[LLVYPUHJJVYKHUJL^P[O[OL.YV\WZHJJV\U[PUNWVSPJ`MVYUHUJPHS
PUZ[Y\TLU[ZKLWLUKPUNVU[OLSL]LSVMPU\LUJLYL[HPULK
The Group did not acquire / dispose any Subsidiary during the years ended 31st December 2015 and 31st December 2014.
The Bank invested further Rs 20 Mn in Sampath Information Technology Solutions Ltd (SITS) during the year ended 31st December 2015.
SITS continues as a fully owned Subsidiary of the Bank subsequent to the above investment.
;OLYLHYLUVZPNUPJHU[YLZ[YPJ[PVUZVU[OLHIPSP[`VM[OL:\IZPKPHYPLZ[V[YHUZMLYM\UKZ[V[OL)HURPU[OLMVYTVMJHZOKP]PKLUKZVYYLWH`TLU[
of loans and advances.
All Subsidiaries of the Bank have been incorporated in Sri Lanka.
Bank
As at 31st December
Subsidiary

Sampath Centre Ltd
Sampath Information
2015
Principal
Activities
Leasing, factoring, pawning &

accepting deposits
Renting of commercial property
Share broking
Developing software solutions &
maintenance of hardware
Cost
2014
Rs 000
Directors
Valuation
Rs 000
Cost
Rs 000
Directors
Valuation
Rs 000
525,000
447,000
78,921
1,548,750
3,231,700
145,928
525,000
447,000
78,921
1,215,375
3,099,100
153,163
29,000
1,079,921
85,028
5,011,406
9,000
1,059,921
52,587
4,520,225
Subsidiaries are not quoted in the Colombo Stock Exchange except Siyapatha Finance PLC.
The Directors valuation of investments in subsidiaries has been carried out on net asset basis.
Summarised Financial Statements of Subsidiaries within the Group are given in Note 31.1.
371
372
Total liabilities & equity
14,639,326
1,611,132
10,925,421
2,102,773
13,028,194

Other liabilities
Total liabilities
Total equity
13,680,275
139,586
819,465
14,639,326
2015
Rs 000
1,332,263
679,804

267,934

(1,980)
382,545
2015
Rs 000

PPE & intangible assets
Other assets
Total assets
As at 31st December

Less : Operating expenses
7YV[ILMVYL[H_LZ
Less: Taxes
7YV[HM[LY[H_
Net other comprehensive income
Total comprehensive income
10,417,792
1,311,646
8,612,843
493,303
9,106,146
9,659,030
114,813
643,949
10,417,792
2014
Rs 000
1,015,022
547,930

206,914

(909)
259,269
2014
Rs 000
Siyapatha
Finance PLC
31.1 Summarised Financial Information of Subsidiaries
31. INVESTMENT IN SUBSIDIARIES CONTD.
3,398,280
3,313,163
1,064
84,053
85,117
2,942,204
456,076
3,398,280
2015
Rs 000
281,244
100,442

11,249

834
170,387
2015
Rs 000
3,320,474
3,229,938
90,536
90,536
2,962,425
358,049
3,320,474
2014
Rs 000
274,646
114,256

9,170

(723)
150,497
2014
Rs 000
Sampath
Centre Ltd
275,253
147,155
71,210
56,888
128,098
12,031
263,222
275,253
2015
Rs 000
35,559
52,792

171

609
(16,795)
2015
Rs 000
282,660
163,949
42,433
76,278
118,711
7,382
275,278
282,660
2014
Rs 000
37,749
47,610

61

(412)
(10,334)
2014
Rs 000
S C Securities
(Pvt) Ltd
415,958
86,603
271,840
57,515
329,355
315,442
100,516
415,958
2015
Rs 000
155,214
123,666

8,473

248
23,323
2015
Rs 000
234,220
46,046
166,323
21,851
188,174
188,301
45,919
234,220
2014
Rs 000
90,073
70,226

12,031

(391)
7,425
2014
Rs 000
Sampath
Solutions Ltd
32. PROPERTY, PLANT AND EQUIPMENT

Accounting Policy
Recognition
Property, plant and equipment are tangible items that are held for use in the production or supply of services, for rental to others or for
administrative purposes and are expected to be used during more than one period. The Group applies the requirements of the Sri Lanka
Accounting Standard - LKAS 16 (Property, Plant and Equipment) in accounting for these assets. Property, plant and equipment are
YLJVNUPZLKPMP[PZWYVIHISL[OH[M\[\YLLJVUVTPJILUL[ZHZZVJPH[LK^P[O[OLHZZL[^PSSV^[V[OL.YV\WHUK[OLJVZ[VM[OLHZZL[JHUIL
reliably measured.
Measurement
(UP[LTVMWYVWLY[`WSHU[HUKLX\PWTLU[[OH[X\HSPLZMVYYLJVNUP[PVUHZHUHZZL[PZPUP[PHSS`TLHZ\YLKH[P[ZJVZ[*VZ[PUJS\KLZL_WLUKP[\YL
that is directly attributable to the acquisition of the asset and cost incurred subsequently to add to, replace part of an item of property, plant
& equipment. The cost of self constructed assets includes the cost of materials and direct labour, any other costs directly attributable to
bringing the asset to a working condition for its intended use and the costs of dismantling and removing the items and restoring the site on
which they are located. Purchased software that is integral to the functionality of the related equipment is capitalised as part of computer
equipment. When parts of an item of property or equipment have different useful lives, they are accounted for as separate items (major
components) of property, plant and equipment.
Cost Model
The Group applies cost model to property, plant and equipment except for freehold land and buildings and records at cost of purchase or
construction together with any incidental expenses thereon less accumulated depreciation and any accumulated impairment losses.
Revaluation Model
The Group applies the revaluation model to the entire class of freehold land and buildings. Such properties are carried at a revalued amount,
being their fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment
losses. Freehold land and buildings of the Group are revalued every three years to ensure that the carrying amounts do not differ materially
from the fair values at the reporting date. The Group last revalued its freehold lands & buildings as at 31st December 2013.
On revaluation of an asset, any increase in the carrying amount is recognised in Other comprehensive income and accumulated in equity,
under capital reserve or used to reverse a previous revaluation decrease relating to the same asset, which was charged to the Statement
VM7YV[VY3VZZ0U[OPZJPYJ\TZ[HUJL[OLPUJYLHZLPZYLJVNUPZLKHZPUJVTL[V[OLL_[LU[VM[OLWYL]PV\Z^YP[LKVÛ(U`KLJYLHZLPU[OL
JHYY`PUNHTV\U[PZYLJVNUPZLKHZHUL_WLUZLPU[OL:[H[LTLU[VM7YV[VY3VZZVYKLIP[LK[V[OLV[OLYJVTWYLOLUZP]LPUJVTL[V[OLL_[LU[
of any credit balance existing in the capital reserve in respect of that asset.
The decrease recognised in other comprehensive income reduces the amount accumulated in equity under capital reserves. Any balance
remaining in the revaluation reserve in respect of an asset is transferred directly to retained earnings on retirement or disposal of the asset.
Subsequent Cost
The subsequent cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of the item
PMP[PZWYVIHISL[OH[[OLM\[\YLLJVUVTPJILUL[ZLTIVKPLK^P[OPU[OH[WHY[^PSSV^[V[OL.YV\WHUKP[ZJVZ[JHUILYLSPHIS`TLHZ\YLK;OL
JVZ[ZVMKH`[VKH`ZLY]PJPUNVMWYVWLY[`WSHU[HUKLX\PWTLU[HYLJOHYNLK[V[OL:[H[LTLU[VM7YV[VY3VZZHZPUJ\YYLK
Derecognition
;OLJHYY`PUNHTV\U[VMHUP[LTVMWYVWLY[`WSHU[HUKLX\PWTLU[PZKLYLJVNUPZLKVUKPZWVZHSVYÔLUUVM\[\YLLJVUVTPJILUL[ZHYL
expected from its use. The gain or loss arising from de-recognition of an item of property, plant and equipment is included in the Statement
VM7YV[VY3VZZÔLU[OLP[LTPZKLYLJVNUPZLK>OLUYLWSHJLTLU[JVZ[ZHYLYLJVNUPZLKPU[OLJHYY`PUNHTV\U[VMHUP[LTVMWYVWLY[`
plant and equipment, the remaining carrying amount of the replaced part is derecognised. Major inspection costs are capitalised. At each
such capitalisation, the remaining carrying amount of the previous cost of inspections is derecognised.
373
32. PROPERTY, PLANT AND EQUIPMENT CONTD.

Depreciation
The Group provides depreciation from the date the assets are available for use up to the date of disposal, at the following rates on a straight
SPULIHZPZV]LY[OLWLYPVKZHWWYVWYPH[L[V[OLLZ[PTH[LK\ZLM\SSP]LZIHZLKVU[OLWH[[LYUPUÔPJO[OLHZZL[ZM\[\YLLJVUVTPJILUL[ZHYL
expected to be consumed by the Group.
Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will
obtain ownership by the end of the lease term.
Freehold lands are not depreciated.
+LWYLJPH[PVUVMHUHZZL[JLHZLZH[[OLLHYSPLYVM[OLKH[L[OH[[OLHZZL[PZJSHZZPLKHZOLSKMVYZHSLVY[OLKH[L[OH[[OLHZZL[PZ
derecognised. Depreciation does not cease when the asset becomes idle or is retired from active use unless the asset is fully depreciated.
Depreciation Rate
per Annum (%)
Asset Category
Freehold buildings
Leasehold properties and improvements
Computer equipment
Motor vehicles
6MJLLX\PWTLU[
-P_[\YLZ [[PUNZ
2015
2014
2.00 - 2.50
20.00 - 25.00
15.00 - 25.00
12.50

2.00 - 2.50
20.00 - 25.00
15.00 - 25.00
12.50

Changes in Estimates
Depreciation methods, useful lives and residual values are reassessed at each reporting date and adjusted if appropriate.
+\YPUN[OL`LHYLUKLKZ[+LJLTILY[OL.YV\WJVUK\J[LKHUVWLYH[PVUHSLMJPLUJ`YL]PL^HUKJVUJS\KLK[OH[[OLYLPZUV
requirement to change the previous estimates.
Capital Work in Progress

These are expenses of capital nature directly incurred in the construction of buildings, major plant and machinery and system development,
awaiting capitalisation. Capital work-in-progress would be transferred to the relevant asset when it is available for use, i.e. when it is in the
location and condition necessary for it to be capable of operating in the manner intended by management. Capital work-in-progress is
stated at cost less any accumulated impairment losses.
Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset have been capitalised as
part of the cost of the asset in accordance with Sri Lanka Accounting Standard - LKAS 23 (Borrowing Costs). A qualifying asset is an asset
which takes substantial period of time to get ready for its intended use or sale. Capitalisation of borrowing costs ceases when substantially
HSS[OLHJ[P]P[PLZULJLZZHY`[VWYLWHYL[OLX\HSPM`PUNHZZL[MVYP[ZPU[LUKLK\ZLHYLJVTWSL[LK6[OLYIVYYV^PUNJVZ[ZHYLYLJVNUPZLKPUWYV[
or loss in the period in which they are incurred.
374
375
24,820
25,103
49,923
3,480,030
3,286,161
Accumulated Depreciation
Charge for the year
Disposals during the year
Written off during the year
Sub category transfers during the year
Transfers / adjustments
Accumulated depreciation as at 31st December
Net book value as at 31st December 2015
711,140
120,533
(3,302)
(11,941)
816,430
234,357
261,527
972,667
96,214
(3,370)
(14,472)
(252)
1,050,787
1,431,302
212,571
(10,321)
(59,926)
1,573,626
746,932
672,482
2,103,784
292,404
(10,571)
(65,059)
2,320,558
970,772
198,268
(18,627)
(17,515)
4
1,132,902
697,223
733,976
1,704,748
178,809
(20,513)
(32,942)
23
1,830,125
103,990
22,848
(371)
(4,895)
(4)
121,568
56,825
58,549
162,539
22,499
(455)
(6,167)
(23)
178,393
108,224
25,622
(22,257)
(7)
111,582
98,124
112,220
220,444
23,162
(33,889)
(11)
209,706
Rs 000
4V[VY
Vehicles
16,933
16,933
26,280
(43,213)
-
*HWP[HS
Work-in
Progress
Rs 000
3,350,248
604,945
(54,878)
(94,284)
3,806,031
5,313,491
8,492,096
815,127
(68,798)
(118,651)
(252)
9,119,522
Rs 000
2015
Total
5,141,848
3,178,221
615,881
(82,233)
(361,613)
(8)
3,350,248
8,312,952
670,632
(87,832)
(362,367)
(41,289)
8,492,096
Rs 000
2014
Total
Freehold lands
Freehold buildings
Total
As at 31st December
718,309
909,869
1,628,178
Rs 000
Cost
147,879
147,879
Accumulated
Depreciation
Rs 000
2015
718,309
761,990
1,480,299
Carrying
Value
Rs 000
718,309
871,735
1,590,044
Rs 000
Cost
2014
125,715
125,715
Accumulated
Depreciation
Rs 000
32.1 (a) The carrying amount of Banks revalued freehold land and buildings, if they were carried at cost less accumulated depreciation, would be as follows:
718,309
746,020
1,464,329
Carrying
Value
Rs 000
;OL)HUROHKYL]HS\LKP[ZMYLLOVSKSHUKHUKI\PSKPUNZI`WYVMLZZPVUHSS`X\HSPLKPUKLWLUKLU[]HS\LYZPU5V[L(JJVYKPUNS`HYL]HS\H[PVUZ\YWS\ZHTV\U[PUN[V9Z4U
had been credited to the revaluation reserve account in 2013. Net impairment loss of Rs 8.7 Mn in respect of freehold land and buildings based on the above revaluation was charged
[VWYV[VYSVZZPU
There were no capitalised borrowing costs related to the acquisition of property, plant and equipment during the year.
3,310,981
175,759
43,213
3,529,953
3LHZLOVSK *VTW\[LY
6MJL -P_[\YLZ
Properties & Equipment Equipment
Fittings
Improvements
Rs 000
Rs 000
Rs 000
Rs 000
Rs 000
-YLLOVSK3HUK
& Buildings
Cost / Valuation
Additions & improvements
Transferred from capital work-in- progress
Cost / valuation as at 31st December
32.1 Bank
376
80,011
68,293
148,304
6,370,147
6,196,504
Accumulated Depreciation
Charge for the year
Accumulated depreciation as at 31st December
711,140
120,533
(3,302)
(11,941)
816,430
234,357
261,527
972,667
96,214
(3,370)
(14,472)
(252)
1,050,787
1,535,772
305,684
(10,321)
(59,926)
1,771,209
1,069,286
868,045
2,403,817
512,308
(10,571)
(65,059)
2,840,495
1,005,598
208,837
(18,673)
(22,146)
4
1,173,620
799,434
819,608
1,825,206
206,027
(20,629)
(37,573)
23
1,973,054
116,990
33,954
(1,633)
(5,983)
(4)
143,324
106,651
92,905
209,895
49,173
(1,815)
(7,255)
(23)
249,975
120,930
29,226
(22,257)
(7)
127,892
116,702
133,076
254,006
24,488
(33,889)
(11)
244,594
Rs 000
4V[VY
Vehicles
Rs 000
2015
Total
Rs 000
2014
Total
16,933
3,570,441
766,527
(56,186)
(100,003)
4,180,779
8,696,577
8,388,598
3,282,555
740,562
(86,071)
(366,597)
(8)
3,570,441
16,933 11,959,039 11,609,574

26,280
1,113,213
855,326
(70,274)
(97,220)
(124,370)
(367,352)
(43,213)
(252)
(41,289)
- 12,877,356 11,959,039
*HWP[HS
Work-in
Progress
Rs 000
Freehold land
Freehold buildings
Total
As at 31st December
853,309
1,640,252
2,493,561
Rs 000
Cost
306,186
306,186
Accumulated
Depreciation
Rs 000
2015
853,309
1,334,066
2,187,375
Carrying
Value
Rs 000
853,309
1,580,686
2,433,995
Rs 000
Cost
269,389
269,389
Accumulated
Depreciation
Rs 000
2014
32.2 (a) The carrying amount of Groups revalued freehold land and buildings, if they were carried at cost less accumulated depreciation, would be as follows:
853,309
1,311,297
2,164,606
Carrying
Value
Rs 000
;OL.YV\WOHKYL]HS\LK[OLPYMYLLOVSKSHUKHUKI\PSKPUNZI`WYVMLZZPVUHSS`X\HSPLKPUKLWLUKLU[]HS\LYZPU(JJVYKPUNS`HYL]HS\H[PVUZ\YWS\ZHTV\U[PUN[V9Z 4UOHK
been credited to the revaluation reserve account in 2013. Net impairment loss of Rs 8.7 Mn in respect of freehold land and buildings based on the above revaluation was charged to
WYV[VYSVZZPU
There were no capitalised borrowing costs related to the acquisition of property, plant & equipment during the year.
6,276,515
198,723
43,213
6,518,451
3LHZLOVSK *VTW\[LY
6MJL -P_[\YLZ
Properties & Equipment Equipment
Fittings
Improvements
Rs 000
Rs 000
Rs 000
Rs 000
Rs 000
-YLLOVSK3HUK
& Buildings
Cost / Valuation
Transferred from capital work-in- progress
Cost / valuation as at 31st December
32.2 Group
377
Market comparable method

Income basis
Method of Valuation
31.12.2013 Income basis
Subsidiaries
Valuer - P B Kalugalagedara
Sampath Centre - No 110, Sir James Peiris Mawatha,
Colombo 2
Total - Group

24.10.2013
21.11.2013
28.10.2013
22.11.2013
24.10.2013
21.11.2013
24.10.2013
Valuer - Sarath Fernando

No 31 & 33, Negombo Road, Kurunegala
No 373A, Galle Road, Panadura
No 591, Galle Road, Wellawatta
5V+OHYTHWHSH4H^H[OH/\U\WP[P`H*VSVTIV
No 1/87, Victoria Range, Digana, Kandy
Total - Bank
26.11.2013 Income basis
Valuer - K T D Tissera
No 280 & 280/1, Negombo Road, Wattala

02.11.2013
02.11.2013
02.11.2013
19.10.2013
Valuer - G M Gamage
5V/HRTHUH9VHK4H[HYH
5V/HW\NHOH^HSH^H[[H0OHSHNHTH9VHK+LUP`H`H
No 25-27, Main Street, Tissamaharama
19.10.2013 Market comparable method
07.11.2013
08.11.2013
09.11.2013
09.11.2013
08.11.2013
09.11.2013
08.11.2013
Valuer - C Wellappili
No 1022, Maradana Road, Borella
5V (/PNO3L]LS9VHK4HOHYHNHTH
No 312/A, Galle Road, Kalutara
No 7/5, Giriulla Road, Alawwa
5V(UN\Y\^H[V[H9VHK/VYHUH
No 150, Colombo Road, Gampaha (land only)
Valuer - E M Wimalasena
"Nuwarawewakele", Maithreepala Senanayake Mw,
Anuradhapura
08.11.2013
08.11.2013
08.11.2013
08.11.2013
08.11.2013
Date of
Valuation
Bank
Valuer - P B Kalugalagedara
No 180 (part), Bodiraja Mawatha, Pettah
No 61A, Moratuwa Road, Piliyandala
No 371, Old Moor St, Masangasweediya, Colombo 12
No 475, Elvitigala Mawatha, Narahenpita
Location
32.3 Details of Banks / Groups Land & Buildings Stated at Valuation
2,787.0
789.0
86.8
43.8
43.4
107.5
216.2
597.0
5.3
1,998.0
53.9
131.2
15.1
0.9
10.0
92.8
127.5
29.7
52.4
60.0
8.3
20.8
29.9
19.1
46.9
122.0
77.7
Land
Rs Mn
1,867.8
1,143.3
65.9
47.4
62.5
52.1
77.0
52.6
9.7
724.4
43.9
29.2
23.8
30.4
64.0
25.1
20.0
15.3
-
50.0
22.7
27.8
5.0
-
Building
Rs Mn
Net Book Value

Before Revaluation
3,587.4
1,265.0
121.0
54.0
63.8
113.0
228.5
645.4
5.5
2,322.4
80.0
131.1
16.6
6.0
14.4
123.9
140.3
46.4
78.7
67.5
16.5
31.0
49.8
22.0
56.0
126.0
85.0
Land
Rs Mn
2,437.8
1,631.0
75.0
46.0
66.2
60.0
94.5
54.6
10.1
806.8
40.0
30.6
20.4
28.6
70.8
26.7
20.6
21.5
-
62.4
21.5
31.5
26.0
-
Building
Rs Mn
Revaluation
Amount
800.4
476.0
34.2
10.2
20.4
5.5
12.3
48.4
0.2
324.4
26.1
1.6
5.1
4.4
31.1
12.8
16.6
26.2
7.5
8.3
10.3
19.9
2.9
9.1
4.0
7.3
Land
Rs Mn
570.1
487.7
9.1
(1.4)
3.7
7.9
17.5
2.0
0.4
82.4
(3.9)
1.4
(3.4)
(1.8)
6.7
1.5
0.6
6.2
-
12.4
(1.2)
3.7
21.0
-
Building
Rs Mn
Revaluation
Gain / (Loss)
1,370.4
963.7
43.3
8.8
24.1
13.4
29.8
50.4
0.6
406.8
22.2
1.4
(1.8)
5.1
2.7
31.1
19.5
18.1
26.8
7.5
14.4
10.3
19.9
12.4
1.8
12.8
25.0
7.3
Total
Rs Mn
(8.7)
(1.4)
(8.7)
(3.9)
(3.4)
-
Rs Mn
1,379.1
963.7
43.3
10.2
24.1
13.4
29.8
50.4
0.6
415.4
26.1
1.4
1.6
5.1
2.7
31.1
19.5
18.1
26.8
7.5
14.4
10.3
19.9
12.4
1.8
12.8
25.0
7.3
Rs Mn
Revaluation Gain / (Loss)

Recognised in
7YV[VY3VZZ
OCI
378
140,250
121,795
80,000
131,148
46,350
16,644
6,000
22,000
56,000
123,850
54,000
126,000
14,430
63,800
78,660
16,345
11,206
5,314
11,141
6,310
5,325
Bare Land
5,520
8,037
8,974
6,020
10,280
10,815
7,811
5,400
Sq.ft
Perches
Cost /
Revaluation
of Land
Rs 000
5,124
Buildings
Land
Extent
Bank
1
Pettah
No 180, Bodiraja Mawatha, Pettah
2
Borella
25.5
No 1022, Maradana Road, Borella
3
Kurunegala
45.9
No 31 & 33, Negombo Road, Kurunegala
4
Wattala
42.5
No 256/1, Negombo Road, Wattala
5
Matara
47.7

5V/HRTHUH9VHK4H[HYH
6
Maharagama
15.5

5V (/PNO3L]LS9VHK4HOHYHNHTH
7
Deniyaya
17.5
8
Deniyaya
40.0

5V/HW\NHOH^HSH^H[[H0OHSHNHTH9VHK+LUP`H`H
9
Ratmalana
10.9
10 Piliyandala
37.5
No 61A, Moratuwa Road, Piliyandala
11 Anuradhapura
41.3
Nuwara wewakele, Maithreepala Senanayake Mw, Anuradhapura
12 Panadura
27.3
No 373A, Galle Road, Panadura
13 Old Moor Street
24.0
No 371, Old Moor St, Masangasweediya, Colombo 12
14 Tissamaharama
22.2
No 25-27, Main Street, Tissamaharama
15 Katugastota
24.1
16 Galle
17.5
Location
32.4 Freehold Land and Buildings

21,085
66,200
29,104
26,000
50,643
73,604
32,920
21,500
28,857
26,650
30,598
41,962
80,348
70,750
62,400
Cost /
Revaluation
of Buildings
Rs 000
99,745
130,000
43,534
152,000
104,643
197,454
88,920
43,500
6,000
45,501
73,000
161,746
121,962
202,143
211,000
62,400
1,082
3,446
1,507
1,353
2,562
2,706
1,682
1,119
1,450
1,387
1,593
2,124
4,036
3,683
3,248
98,663
126,554
42,027
150,647
102,081
194,748
87,238
42,381
6,000
44,051
71,613
160,153
119,838
198,107
207,317
59,152
Total Accumulated
2015
Value Depreciation Net Book
Value
Rs 000
Rs 000
Rs 000
1.5%
2.0%
0.7%
2.4%
1.6%
3.1%
1.4%
0.7%
0.1%
0.7%
1.1%
2.5%
1.9%
3.1%
3.3%
0.9%
98,742
128,209
42,754
151,297
102,598
185,996
88,061
42,918
6,000
44,772
72,279
160,918
118,967
198,461
209,086
60,712
As a %
2014
of Total Net Book
NBV
Value
Rs 000
379
Bare Land
15,026
6,350
4,485
2,320
Land only
Bare Land
20.8
25.4
119.4
25.0
20.1
10.1
41.5
157.8
950.2
8,245
20.7
Subsidiaries
28 Sampath Centre
No 110, Sir James Peiris Mawatha, Colombo 2
Total - Group
9,400
30.0
220,301
406,256
185,955
8,731
18.5
792.4
7,776
Sq.ft
Perches
21.5
Buildings
Land
Extent
Wellawatte
No 591, Galle Road, Wellawatta
18 Narahenpita
No 475, Elvitigala Mawatha, Narahenpita
19 Kalutara
No 312/A, Galle Road, Kalutara
20 Alawwa
No 7/5, Giriulla Road, Alawwa
21 Horana

5V(UN\Y\^H[V[H9VHK/VYHUH
22 Kandy Corporate
23 Dharmapala Mawatha

5V+OHYTHWHSH4H^H[OH/\U\WP[P`H*VSVTIV
24 Gampaha
No 150, Colombo Road, Gampaha
25 Victoria Range
No 1/87, Victoria Range, Digana, Kandy
26 Panchikawatta
No 85/87, Panchikawatta Road, Colombo 10
27 Negombo
No 408, Main Street, Negombo
Total - Bank
17
Location
1,265,000
3,725,773
2,460,773
72,625
65,000
5,501
49,800
645,400
228,500
31,000
16,520
67,500
85,000
113,000
Cost /
Revaluation
of Land
Rs 000
1,723,498
2,792,678
1,069,180
10,422
43,356
72,268
94,500
21,679
43,213
59,042
62,079
Cost /
Revaluation
of Buildings
Rs 000
2,988,498
6,518,451
3,529,953
72,625
65,000
15,923
93,156
717,668
323,000
31,000
38,199
110,713
144,042
175,079
72,625
65,000
15,391
90,932
714,426
318,081
31,000
37,080
110,713
142,359
171,853
98,381 2,890,117
148,304 6,370,147
49,923 3,480,030
532
2,224
3,242
4,919
1,119
1,683
3,226
Total Accumulated
2015
Value Depreciation Net Book
Value
Rs 000
Rs 000
Rs 000
15,326
92,016
707,612
320,443
31,000
37,419
67,500
129,670
173,405
45.4% 2,910,343
100.0% 6,196,504
54.6% 3,286,161
1.1%
1.0%
0.2%
1.4%
11.2%
5.0%
0.5%
0.6%
1.7%
2.2%
2.7%
As a %
2014
of Total Net Book
NBV
Value
Rs 000

32.5 (a) Leasehold Buildings
Bank & Group
As at 31st December
01 - 05 years
06 - 10 years
Above 10 years
Total
Cost of
Buildings
Rs 000
Accumulated
Depreciation
Rs 000
2015
Net Book
Value
Rs 000
2014
Net Book
Value
Rs 000
200,432
823,164
27,191
1,050,787
158,137
650,700
7,593
816,430
42,295
172,464
19,598
234,357
111,343
138,920
11,264
261,527
32.5 (b) Fully Depreciated Property, Plant and Equipment

A class-wise analysis of the initial cost of fully depreciated property, plant and equipment of the Bank which are still in use as at reporting
date is as follows.
Bank
As at 31st December
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
514,857
1,611,528

11,307
2,619,826
359,850
1,458,699

12,186
2,210,415
514,857
1,650,977

13,383
2,672,602
359,850
1,499,021

14,016
2,267,957
Asset class
Leasehold properties & improvements

Computer equipment & software
6MJLLX\PWTLU[
-P_[\YLZ [[PUNZ
Motor vehicles
Total
32.5 (c) Temporarily Idle Property, Plant and Equipment - Bank / Group
-V\YSHUKZ+LUP`H`H/VYHUH5LNVTIVHUK7HUJOPRH^H[[H^VY[OVM9Z4U^LYLPKSLHZH[Z[+LJLTILY!9Z
Mn). The Bank holds these lands with the intention of constructing buildings in the near future.
32.5 (d) Property, Plant and Equipment Retired from Active Use - Bank / Group
There were no property, plant and equipment retired from active use as at the reporting date (2014: Nil)
32.5 (e) Title Restriction on Property, Plant and Equipment - Bank / Group
There were no restriction on the title of property, plant and equipment as at 31st December 2015.
32.5 (f) Property, Plant and Equipment Pledged as Security for Liabilities - Bank / Group
There were no items of property, plant and equipment pledged as securities for liabilities.
32.5 (g) Compensation from Third Parties for Items of Property, Plant and Equipment - Bank / Group
There were no compensation received during the year from third parties for items of property, plant and equipment that were impaired, lost
or given up (2014: Nil).
380
33. INTANGIBLE ASSETS

Accounting Policy
Recognition
(UPU[HUNPISLHZZL[PZHUPKLU[PHISLUVUTVUL[HY`HZZL[^P[OV\[WO`ZPJHSZ\IZ[HUJLOLSKMVY\ZLPU[OLWYVK\J[PVUVYZ\WWS`VMNVVKZ
or services, for rental to others or for administrative purposes. An intangible asset is recognised if it is probable that the future economic
ILUL[Z[OH[HYLH[[YPI\[HISL[V[OLHZZL[^PSSV^[V[OLLU[P[`HUK[OLJVZ[VM[OLHZZL[JHUILTLHZ\YLKYLSPHIS`(UPU[HUNPISLHZZL[PZ
initially measured at cost. Expenditure incurred on an intangible item that was initially recognised as an expense by the Group in previous
annual Financial Statements or interim Financial Statements are not recognised as part of the cost of an intangible asset at a later date.
Computer Software
Cost of purchased licenses and all computer software costs incurred, licensed for use by the Group, which are not integrally related to
HZZVJPH[LKOHYK^HYLÔPJOJHUILJSLHYS`PKLU[PLKYLSPHIS`TLHZ\YLKHUKP[ZWYVIHISL[OH[[OL`^PSSSLHK[VM\[\YLLJVUVTPJILUL[ZHYL
included in the Statement of Financial Position under the category Intangible assets and carried at cost less accumulated amortisation and
any accumulated impairment losses.
Goodwill
Goodwill, if any that arises upon the acquisition of Subsidiaries is included in intangible assets. Goodwill is measured at initial recognition in
accordance with Note 3.1.1.
Subsequent Expenditure
Expenditure incurred on software is capitalised only when it is probable that this expenditure will enable the asset to generate future
LJVUVTPJILUL[ZPUL_JLZZVMP[ZVYPNPUHSS`HZZLZZLKZ[HUKHYKVMWLYMVYTHUJLHUK[OPZL_WLUKP[\YLJHUILTLHZ\YLKHUKH[[YPI\[LK[V[OL
asset reliably. All other expenditure is expensed as incurred.
Goodwill is measured at cost less accumulated impairment losses.
Amortisation of Intangible Assets

0U[HUNPISLHZZL[ZL_JLW[MVYNVVK^PSSHYLHTVY[PZLKVUHZ[YHPNO[SPULIHZPZPU[OL:[H[LTLU[VM7YV[VY3VZZMYVT[OLKH[LÔLU[OL
HZZL[PZH]HPSHISLMVY\ZLV]LY[OLILZ[LZ[PTH[LVMP[Z\ZLM\SLJVUVTPJSPMLIHZLKVUHWH[[LYUPUÔPJO[OLHZZL[ZLJVUVTPJILUL[ZHYL
JVUZ\TLKI`[OL.YV\W(TVY[PZH[PVUTL[OVKZ\ZLM\SSP]LZHUKYLZPK\HS]HS\LZHYLYL]PL^LKH[LHJOUHUJPHS`LHYLUKHUKHKQ\Z[LKPM
appropriate. The Group assumes that there is no residual value for its intangible assets.
Asset Category
Computer software
Licenses
Useful Life (Years)

2015
2014
4 - 10
5 - 20
4 - 10
5 - 20
381
33. INTANGIBLE ASSETS CONTD.

Derecognition of Intangible Assets
;OLJHYY`PUNHTV\U[VMHUP[LTVMPU[HUNPISLHZZL[PZKLYLJVNUPZLKVUKPZWVZHSVYÔLUUVM\[\YLLJVUVTPJILUL[ZHYLL_WLJ[LKMYVTP[Z
\ZL;OLNHPUVYSVZZHYPZPUNMYVTKLYLJVNUP[PVUVMHUP[LTVMPU[HUNPISLHZZL[PZPUJS\KLKPU[OL:[H[LTLU[VM7YV[VY3VZZÔLU[OLP[LTPZ
derecognised.
There were no restrictions on the title of the intangible assets as at the reporting date. Further, there were no items pledged as securities for
liabilities.
Bank
Cost
Cost as at 31st December
Accumulated Amortisation
Charge for the year
Accumulated amortisation as at 31st December
Net book value as at 31st December
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
1,120,548
69,247
1,189,795
1,019,448
150,817
(49,717)
1,120,548
1,173,913
77,376
1,251,289
1,056,649
166,981
(49,717)
1,173,913
752,386
95,216
847,602
342,193
722,089
80,014
(49,717)
752,386
368,162
779,581
103,339
882,920
368,369
743,344
85,954
(49,717)
779,581
394,332
34. DEFERRED TAX LIABILITIES / (ASSETS)

Bank
As at 31st December
Recognised under assets

Recognised under liabilities
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
313,181
313,181
143,577
143,577
(23,368)
433,175
409,807
(23,473)
223,750
200,277
Net deferred tax assets / liabilities of one entity cannot be set-off against another entitys assets / liabilities since there is no legally
enforceable right to set-off. Therefore net deferred tax assets and liabilities of different entities are separately recognised in the Statement of
Financial Position.
Bank
As at 31st December
Deferred tax liabilities (Note 34.1)

Deferred tax assets (Note 34.2)
382
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
1,192,424
(879,243)
313,181
847,003
(703,426)
143,577
1,594,429
(1,184,622)
409,807
1,023,251
(822,974)
200,277
383
Unclaimed impairment provision loans & receivables

Tax losses
+LULKILUL[VISPNH[PVU7YV[VYSVZZ
+LULKILUL[VISPNH[PVU6*0
Others
As at 31st December
34.2 Deferred Tax Assets
Accelerated depreciation for tax purposes

Leased assets
Revaluation surplus on buildings - OCI
As at 31st December
34.1 Deferred Tax Liabilities
1,163,885
1,595,380
265,749
3,025,014
2014
Rs 000
27,062
1,418,515

52,606
3,140,151
2015
Rs 000
366,811
407,265

37,680
2,512,234
2014
Rs 000
Temporary Difference
1,071,705
2,921,203
265,749
4,258,657
2015
Rs 000
2015
Rs 000
2015
Rs 000
102,707
114,034

10,550
703,426
2014
Rs 000
Tax Effect
7,577
397,184

14,730
879,243
Bank
325,887
446,706
74,410
847,003
2014
Rs 000
Tax Effect
300,077
817,937
74,410
1,192,424
Bank
1,163,885
2,224,832
265,749
3,654,466
2014
Rs 000
27,062
2,306,982

224,843
4,230,793
2015
Rs 000
366,811
610,978

166,089
2,939,192
2014
Rs 000
2015
Rs 000
102,707
171,074

46,505
822,974
2014
Rs 000
Tax Effect
325,887
622,954
74,410
1,023,251
2014
Rs 000
Tax Effect
7,577
645,956

62,956
1,184,622
2015
Rs 000
300,077
1,219,942
74,410
1,594,429
Group
1,071,705
4,356,934
265,749
5,694,388
2015
Rs 000
Group
34. DEFERRED TAX LIABILITIES / (ASSETS) CONTD.

34.3 Recognition of Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities are attributable to the following;
34.3.1 Bank
Tax Effect

Leased assets
Deferred tax assets

Tax losses
+LULKILUL[VISPNH[PVUWYV[VYSVZZ
Others
P&L
OCI
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
300,077
817,937
74,410
1,192,424
325,887
446,706
74,410
847,003
(25,810)
371,231
345,421
35,255
136,888
172,143
7,577
397,184

14,730
879,243
313,181
102,707
114,034

10,550
703,426
143,577
(95,130)
283,150

4,180
208,280
137,141
(618,340)
101,405

3,829
(496,640)
668,783

(32,463)
32,463

216,390
(216,390)
34.3.2 Group
Tax Effect

Leased assets
Deferred tax assets

Tax losses
+LULKILUL[VISPNH[PVUWYV[VYSVZZ
Others
384
P&L
OCI
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
300,077
1,219,942
74,410
1,594,429
325,887
622,954
74,410
1,023,251
(25,810)
596,988
571,178
35,309
209,255
244,564
7,577
645,956

62,956
1,184,622
409,807
102,707
171,074

46,505
822,974
200,277
(95,130)
474,882

16,451
393,675
177,503
(627,575)
102,877

39,784
(446,670)
691,234

(32,027)
32,027

217,042
(217,042)
35. OTHER ASSETS

Bank
As at 31st December
Pre-paid expenses
Other debtors
Pre-paid staff cost (Note 35.1)
Refundable deposit at fair value
Pre-paid cost on refundable deposit
*VTTPZZPVUYLJLP]HISLVUUHUJPHSN\HYHU[LLZ5V[L
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
246,869
1,968,597
1,911,559
75,884
2,915

4,329,933
274,087
1,321,387
2,043,632
76,982
3,520

3,851,087
274,441
2,243,696
1,911,559
18,762
2,915

4,575,482
302,909
1,654,840
2,043,632
14,227
3,520

4,150,607
2015
Rs 000
2014
Rs 000
2,043,632
115,709
(247,782)
1,911,559
1,708,351
569,516
(234,235)
2,043,632
2015
Rs 000
2014
Rs 000
131,479
10,852
(18,222)
124,109
137,589
11,412
(17,522)
131,479
35.1 The Movement in the Pre-Paid Staff Cost

Bank & Group

Adjustment for new grants net of settlements
Charge to personnel expenses
35.2 Commission Receivable on Financial Guarantees

Bank & Group

Interest income
Commission received
36. DUE TO BANKS

Bank
As at 31st December
Call & time deposits

Unfavourable balances with local & foreign banks
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
3,087,892
330,607
3,418,499
1,976,389
510,358
2,486,747
3,087,892
330,607
3,418,499
1,976,389
532,480
2,508,869
385
37. DUE TO OTHER CUSTOMERS

Bank
As at 31st December
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
Local Currency Deposits

Demand
Savings
Call deposits
Fixed deposits
*LY[PJH[LZVMKLWVZP[Z
Margin deposits
Total local currency deposits
29,511,406
146,551,907
674,388
178,534,080

1,382,811
369,680,037
23,781,400
120,910,287
2,031,762
149,153,301

982,780
308,747,635
29,409,394
146,539,292
674,388
179,490,003

1,382,811
370,521,333
23,781,003
120,844,465
2,031,762
148,929,499

982,780
308,457,614
Foreign Currency Deposits

Demand
Savings
Call deposits
Fixed deposits
Margin deposits
Total foreign currency deposits
Total deposits
3,289,832
14,139,760
60,565
19,076,628
76,197
36,642,982
406,323,019
1,707,131
10,587,769
158,024
18,736,117
32,465
31,221,506
339,969,141
3,289,832
14,139,110
60,565
19,076,628
76,197
36,642,332
407,163,665
1,707,131
10,587,371
158,024
18,736,117
32,465
31,221,108
339,678,722
37.1 Current Accounts and Savings Accounts (CASA)

Bank
As at 31st December
CASA
Local currency deposits
Foreign currency deposits
Total Deposits
Due to bank - Call & time deposits (Note 36)
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
176,063,313
17,429,592
193,492,905
144,691,687
12,294,900
156,986,587
175,948,686
17,428,942
193,377,628
144,625,468
12,294,502
156,919,970
406,323,019
3,087,892
409,410,911
339,969,141
1,976,389
341,945,530
407,163,665
3,087,892
410,251,557
339,678,722
1,976,389
341,655,111
47.3
45.9
47.1
45.9
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
20,581,099
1,780,008
3,200,561
3,081,384
24,179,687

57,016,284
13,500,000
1,630,747
1,200,204
15,630,453

36,335,599
206
21,601,700
1,780,008
3,200,561
10,215,270
24,179,687

65,170,977
648,322
14,767,330
1,630,747
1,200,204
5,359,565
15,630,453

43,610,816
CASA as a percentage (%) of total deposits
38. DEBT ISSUED & OTHER BORROWED FUNDS

Bank
As at 31st December
Commercial papers
Redeemable debentures (Note 38.1)
Long term bond (Note 38.2)
Call borrowings
Term borrowings
Foreign currency borrowings
9LUHUJLIVYYV^PUNZ
Group
The Bank has not had any default of principal, interest or other breaches with regard to any liability during 2015 and 2014.
386
38.1 Redeemable Debentures

Bank

Debentures issued
Debentures redeemed
Interest payable
Interest paid
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
13,500,000
7,000,000
20,500,000
1,546,818
(1,465,719)
20,581,099
6,500,000
7,000,000
13,500,000
922,983
(922,983)
13,500,000
14,767,330
7,000,000
(267,330)
21,500,000
1,668,838
(1,567,138)
21,601,700
6,852,830
8,000,000
(85,500)
14,767,330
974,612
(974,612)
14,767,330
Details of Debentures Issued

Amortised Cost
Note
No of Debentures
Face Value
Rs 000
2015
Rs 000
2014
Rs 000
Debentures issued by the Bank

Debentures issued in 2012
38.1.1
38.1.2
38.1.3
38.1.4
15,000,000
50,000,000
70,000,000
70,000,000
1,500,000
5,000,000
7,000,000
7,000,000
20,500,000
1,500,000
5,000,000
7,000,000
7,081,099
20,581,099
1,500,000
5,000,000
7,000,000
13,500,000
Debentures issued by Subsidiary,

Debentures issued in 2011 / 2012
38.1.5
38.1.6
38.1.7
114,000
1,450,000
10,000,000
114,000
145,000
1,000,000
1,259,000
1,020,601
1,020,601
114,000
153,330
1,000,000
1,267,330
21,759,000
21,601,700
14,767,330
Total debentures issued by the Group
Debentures Issued by the Bank :

38.1.1 Debentures Issued in 2012
Rated unsecured subordinated redeemable 5-year debentures of Rs 100/- each issued in 2012. The debentures are quoted on the
Amortised Cost
No of Debentures
Face
Value
Rs 000
2015
2014
Allotment
Date
Maturity
Date
Rate of Interest
Rs 000
Rs 000
10,776,800
1,077,680
1,077,680
1,077,680
12-Oct-12
11-Oct-17
247,790
247,790
12-Oct-12
11-Oct-17
174,530
174,530
174,530
12-Oct-12
11-Oct-17
Fixed - 16.5 % per annum

payable annually
payable monthly
Floating rate is equivalent
to the six months treasury bill rate
(gross) plus 2.0 % per annum
payable semi-annually
2,477,900
247,790
1,745,300
15,000,000
1,500,000
1,500,000
1,500,000
387
38. DEBT ISSUED & OTHER BORROWED FUNDS CONTD.

Amortised Cost
No of Debentures
Face
Value
Rs 000
2015
2014
Allotment
Date
Maturity
Date
Rate of Interest
Rs 000
Rs 000
15,541,900
1,554,190
1,554,190
1,554,190
04-Dec-13
04-Dec-18
3,445,810
3,445,810
04-Dec-13
04-Dec-18

payable semi-annually
payable annually
34,458,100
3,445,810
50,000,000
5,000,000
5,000,000
5,000,000

Amortised Cost
No of Debentures
Face
Value
Rs 000
2015
2014
Allotment
Date
Maturity
Date
Rate of Interest
Rs 000
Rs 000
31,765,500
3,176,550
3,176,550
3,176,550
15-Dec-14
14-Dec-19
3,823,450
3,823,450
15-Dec-14
14-Dec-19
Fixed - 8.25% per annum

payable annually
payable semi annually
38,234,500
3,823,450
70,000,000
7,000,000
7,000,000
7,000,000

Amortised Cost
No of Debentures
Face
Value
Rs 000
2015
2014
Rs 000
Rs 000
67,412,700
6,741,270
6,819,894
2,587,300
258,730
70,000,000
7,000,000
388
Allotment
Date
Maturity
Date
Rate of Interest
18-Nov-15
17-Nov-20
261,205
18-Nov-15
17-Nov-20

Floating rate is equivalent
to the six months treasury bill
rate (net) plus 1.25 % per
annum payable semi-annually
7,081,099
Debentures Issued by the Subsidiary, Siyapatha Finance PLC:

38.1.5 Debentures Issued in 2011 / 2012
Guaranteed redeemable debentures of Rs 1,000/- each issued in 2011/2012
Amortised Cost
No of Debentures
Face
Value
Rs 000
2015
2014
Allotment
Date
Maturity
Date
Rate of Interest
Rs 000
Rs 000
60,000
60,000
60,000
11-Jan-12
31-Dec-15
14,000
04-Jan-12
31-Dec-15
40,000
40,000
30-Dec-11
31-Dec-15

payable quarterly
payable quarterly
payable quarterly
14,000
14,000
40,000
114,000
114,000
114,000

Rated unsecured redeemable debentures of Rs 100/- each issued in 2012
Amortised Cost
No of Debentures
Face
Value
Rs 000
2015
2014
Allotment
Date
Maturity
Date
Rate of Interest
Rs 000
Rs 000
950,000
95,000
100,458
27-Jul-12
31-Jul-15
52,872
17-Dec-12
17-Dec-15

500,000
50,000
1,450,000
145,000
153,330

Amortised Cost
No of Debentures
Face
Value
Rs 000
2015
2014
Rs 000
Rs 000
10,000,000
1,000,000
1,020,601
1,000,000
10,000,000
1,000,000
1,020,601
1,000,000
Allotment
Date
Maturity
Date
Rate of Interest
24-Dec-14
24-Dec-19

payable annually
389
38. DEBT ISSUED & OTHER BORROWED FUNDS CONTD.

38.2 Long Term Bond
The Bank has issued a redeemable zero coupon bond in 2003 with a redemption value of Rs 3,458 Mn which will be matured on 1st
August 2023.
Bank & Group

Interest accrued
2015
Rs 000
2014
Rs 000
1,630,747
149,261
1,780,008
1,494,001
136,746
1,630,747
39. CURRENT TAX LIABILITIES / (RECEIVABLES)

Bank
Group
As at 31st December
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000

4,939,539
4,939,539
2,319,645
2,319,645
5,021,362
(2,249)
5,019,113
2,436,034
2,436,034
39.1 Current Tax Liabilities/Receivables

Bank

(K]HUJLWH`TLU[[YHUZMLYYLK[VZL[VMMHNHPUZ[UHUJL=(;
Current year provision
(Over) / under provision in respect of previous years
Payment of tax
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
2,319,645

2,829,791
(459,897)
4,939,539
2,691,865

1,508,934
(365,000)
(1,516,154)
2,319,645
2,436,034

2,980,191
3,759
(650,871)
5,019,113
2,753,338

1,653,125
(365,000)
(1,605,429)
2,436,034
39.2 Super Gain Tax

(ZWLY[OLWYV]PZPVUZVM7HY[000VM[OL-PUHUJL(J[5VVMÔPJO^HZJLY[PLKVU[O6J[VILY[OL)HURHUK[OL.YV\WHYL
liable for super gain tax of Rs 676.8 Mn and Rs 783.3 Mn respectively. According to the Act, the super gain tax shall be deemed to be
an expenditure in the Financial Statements relating to the year of assessment which commenced on 1st April 2013. The Act supersedes
the requirements of the Sri Lanka Accounting Standards, hence the expense of super gain tax is accounted in accordance with the
requirements of the said Act as recommended by the Statement of Alternative Treatment (SoAT) on Accounting for super gain tax issued by
the Institute of Chartered Accountants of Sri Lanka, dated 24th November 2015.
390
40. OTHER LIABILITIES

Bank
As at 31st December
Deposit insurance premium

Deferred guarantee income
Other payable
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
115,822
51,206
7,049,615
7,216,643
77,645
57,953
5,553,943
5,689,541
115,973
51,206
7,765,813
7,932,992
77,645
57,953
5,899,070
6,034,668
41. OTHER PROVISIONS

Bank
As at 31st December
Provision for gratuity (Note 41.1)

Leave accrual plan (Note 41.2)
EPF Interest guarantee plan (Note 41.3)
Liability for pension fund (41.4)
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
414,373
140,186
78,992
427,234
1,060,785
322,384
126,239
65,103
523,372
1,037,098
446,214
140,186
78,992
427,234
1,092,626
346,893
126,239
65,103
523,372
1,061,607
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
322,384
132,502
454,886

414,373
255,548
81,892
337,440

322,384
346,893
140,539
487,432

446,214
271,439
90,992
362,431

346,893
41.1 Provision for Gratuity

Net Liability Recognised in the Statement of Financial Position
Bank

Provision made during the year (Note 41.1.1)
)LUL[ZWHPKI`[OLWSHU
Balance as at 31st December (Note 41.1.2)
Group
41.1.1 Provision Made During the Year

(TV\U[Z9LJVNUPZLKPU7YV[VY3VZZ
Bank
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
Current service cost

5L[PU[LYLZ[VU[OLUL[KLULKILUL[SPHIPSP[`
;V[HSHTV\U[YLJVNUPZLKPUWYV[VYSVZZ
41,742

36,690

46,692

40,822

391
41. OTHER PROVISIONS CONTD.

Amounts Recognised in OCI
Bank
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
(Gain) / loss due to changes in assumptions*

Experience loss / (gain) arising during the year
Total actuarial loss / (gain) recognised in OCI
(109)
61,049
60,940
217
16,712
16,929
(3,786)
65,451
61,665
3,486
16,531
20,017
132,502
81,892
140,539
90,992
Provision made during the year
:PNUPJHU[HZZ\TW[PVUZ\ZLKMVY[OLHJ[\HYPHS]HS\H[PVUHYLNP]LUPU5V[L
+LULK)LUL[6ISPNH[PVU9LJVUJPSPH[PVU
Bank

Interest cost
)LUL[ZWHPKMYVTWSHU
(Gain) / loss due to changes in assumptions
Experience loss / (gain)
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
322,384
41,742
29,820

(109)
61,049
414,373
255,548
36,690
28,273

217
16,712
322,384
346,893
46,692
32,182

(3,786)
65,451
446,214
271,439
40,822
30,153

3,486
16,531
346,893
An actuarial valuation of the gratuity fund of the Bank was carried out as at 31st December 2015 by Messrs Piyal S Goonetilleke &
(ZZVJPH[LZHYTVMWYVMLZZPVUHSHJ[\HYPLZ;OL]HS\H[PVUTL[OVK\ZLKI`[OLHJ[\HY`[V]HS\L[OL-\UKPZ[OL7YVQLJ[LK<UP[*YLKP[
4L[OVKYLJVTTLUKLKI`:YP3HURH(JJV\U[PUN:[HUKHYK32(: ,TWSV`LL)LUL[Z
(SS:\IZPKPHYPLZVM[OL.YV\W[VVJHYY`V\[HJ[\HYPHS]HS\H[PVUZ[VHZJLY[HPU[OLPYYLZWLJ[P]LNYH[\P[`SPHIPSP[PLZ/V^L]LYHZZ\TW[PVUZHUK
the sensitivity of the assumptions have been given only for the gratuity fund of the Bank since Subsidiary gratuity liabilities do not have a
material impact on the Group Financial Statements.
41.1.3 Actuarial Assumptions - Bank
Discount rate as at 31st December

Future salary increment rate
Mortality
Retirement age
Expected average future working life of the active participants is 11 years.
392
2015
2014
9.80%
8.80%
GA 1983 Mortality Table
55 years
9.25%
8.25%
55 years
41.1.4 Sensitivity of Assumptions Employed in Gratuity Valuation - Bank

9LHZVUHIS`WVZZPISLJOHUNLZH[[OLYLWVY[PUNKH[L[VVULVM[OLZPNUPJHU[HJ[\HYPHSHZZ\TW[PVUZOVSKPUNV[OLYHZZ\TW[PVUZJVUZ[HU[
would have affected the gratuity liability / Statement of Comprehensive Income by the amounts shown below.
Increase /
(Decrease) in
Discount rate
Increase /
(Decrease) in
Salary Increment
Rate
2015
2014
Sensitivity Effect
on Comprehensive
Income Statement
Increase/ (Decrease)
in Comprehensive
Income for the Year
(Rs Mn)
Sensitivity Effect
on Gratuity Liability
in Liability
Sensitivity Effect
on Gratuity Liability
in Liability
(Rs Mn)
Sensitivity Effect
on Comprehensive
Income Statement
in Comprehensive
Income for the Year
(Rs Mn)
(Rs Mn)
1%
39.6
(39.6)
31.6
(31.6)
(1%)
(47.7)
47.7
(38.1)
38.1
1%
(47.0)
47.0
(37.6)
37.6
(1%)
39.8
(39.8)
31.7
(31.7)
41.2
Leave Accrual Plan
41.2.1 Net Liability Recognised in the Statement of Financial Position

Bank & Group

Provision made during the year
41.3
2015
Rs 000
2014
Rs 000
126,239
13,947
140,186
127,682
(1,443)
126,239
EPF Interest Guarantee Plan
Employees Provident Fund (EPF) is an approved private provident fund which has been set up to meet the provident fund liabilities of the
Bank to which the Bank and employees contribute 12% and 8% respectively on the salary of each employee. Employees who are members
VM[OLM\UKHYLLU[P[SLK[VYLJLP]LPU[LYLZ[H[HN\HYHU[LLKYH[LVM5H[PVUHS:H]PUNZ)HURZVUL`LHY_LKKLWVZP[YH[LUL[VM>/;VU[OLPY
IHSHUJLL]LUPM[OLM\UKLHYUZHSV^LYYL[\YUMYVTP[ZPU]LZ[TLU[PUHNP]LUUHUJPHS`LHY(ZWLY:LJ[PVUVM[OL,7-*VUZ[P[\[PVU[OL)HUR
shall contribute any shortfall in the revenue account of the fund, after payment of interest at the said rate and other cost of administering
the fund. Thus the Banks obligation to EPF is not limited to only 12% contribution referred to above and accordingly the fund was treated
HZHKLULKILUL[SPHIPSP[`HZWLY:YP3HURH(JJV\U[PUN:[HUKHYK32(: ,TWSV`LL)LUL[Z(UHJ[\HYPHS]HS\H[PVU^HZJHYYPLKV\[I`
4LZZYZ7P`HS:.VVUL[PSSLRL (ZZVJPH[LZHYTVMWYVMLZZPVUHSHJ[\HYPLZ[V]HS\L[OL)HURZHKKP[PVUHSVISPNH[PVUHYPZPUNMYVT:LJ[PVUVM
the EPF constitution as at 31st December 2015.
393

Bank & Group
As at 31st December
Fair value of plan assets as at 31st December

Fund obligation as at 31st December
Net liability recognised in the Statement of Financial Position
2015
Rs 000
2014
Rs 000
(8,064,408)
8,143,400
78,992
(7,047,409)
7,112,512
65,103
2015
Rs 000
2014
Rs 000
5,185

4,143

2015
Rs 000
2014
Rs 000
5,544
(2,862)
2,682
(3,967)
570
(3,397)
2015
Rs 000
2014
Rs 000
65,103
11,207
2,682
78,992
57,979
10,521
(3,397)
65,103
2015
2014
9.80%
8.80%
8.21%
8.46%
9.25%
8.25%
5.75%
6.00%
Bank & Group

0U[LYLZ[L_WLUZLVUKLULKILUL[SPHIPSP[`

41.3.3 Amounts Recognised in OCI

Bank & Group
Actuarial loss / (gain) due to changes in assumptions*

Actuarial (gain) / loss due to experience adjustments
Total amount recognised in OCI
41.3.4 Movement of the Net Liability Recognised in the Statement of Financial Position
Bank & Group

Current service cost and interest cost
Actuarial loss / (gain)
41.3.5 Actuarial Assumptions - Bank
Discount rate
Return from EPF investments
Long term guaranteed EPF interest rate (net of tax)
Expected average future working life of the active participants is 11 years.
394
41.3.6 Sensitivity of Assumptions Employed in EPF Interest Guarantee Plan Valuation

would have affected the EPF interest guarantee liability / Statement of Comprehensive Income by the amounts shown below.
Increase /
(Decrease) in
Discount Rate
Increase /
(Decrease) in
Salary Increment
Rate
2015
2014
Sensitivity Effect
on Comprehensive
Income Statement
Increase /
(Decrease) in
Comprehensive
Income for the Year
(Rs Mn)
Sensitivity Effect on
,TWSV`TLU[)LUL[
Obligation
Increase /
(Decrease)
in Liability
(Rs Mn)
Sensitivity Effect
on Comprehensive
Income Statement
Increase /
(Decrease) in
Comprehensive
Income for the Year
(Rs Mn)
,TWSV`TLU[)LUL[
Obligation
Increase /
(Decrease)
in Liability
(Rs Mn)
1%
8.1
(8.1)
6.6
(6.6)
(1%)
(9.4)
9.4
(7.7)
7.7
1%
(1.4)
1.4
(1.2)
1.2
(1%)
1.3
(1.3)
1.1
(1.1)
41.4 Pension Fund

Bank & Group
As at 31st December
Fair value of plan assets as at 31st December (Note 41.4.4)

Present value of funded obligations as at 31st December (Note 41.4.5)
Funded status
7YLZLU[]HS\LVM\UM\UKLKILUL[VISPNH[PVU
Net liability recognised in the Statement of Financial Position
2015
Rs 000
2014
Rs 000
(5,169,780)
5,597,014
427,234

427,234
(4,661,449)
5,184,821
523,372

523,372
2015
Rs 000
2014
Rs 000
225,925
185,680

2015
Rs 000
2014
Rs 000
(213,954)
16,802
17,590
(179,562)
554,485
108,833
95,971
759,289
Bank & Group

5L[PU[LYLZ[L_WLUZLPUJVTLVU[OLUL[KLULK
ILUL[SPHIPSP[`HZZL[

41.4.3 Amounts Recognised in OCI

Bank & Group
Actuarial (gain) / loss due to changes in assumptions*

Actuarial loss / (gain) due to experience adjustments
Actuarial loss / (gain) from plan assets
Total amount recognised in OCI
395

41.4.4 Fair Value of Plan Assets Reconciliation
Bank & Group
2015
Rs 000
Fair value of plan assets as at 1st January
Interest income on plan assets
Actual employer contributions
(J[\HSILUL[ZWHPKMYVTWSHU
Actuarial (loss) / gain from plan assets
Fair value of plan assets as at 31st December
4,661,449
422,097
200,000

(17,590)
5,169,780
2014
Rs 000
4,371,027
475,503

(95,971)
4,661,449
+LULK)LUL[6ISPNH[PVU9LJVUJPSPH[PVU
Bank & Group
2015
Rs 000
+LULKILUL[VISPNH[PVUHZH[Z[1HU\HY`
Interest cost
(J[\HSILUL[ZWHPKMYVTWSHU
Actuarial (gain) / loss due to changes in assumptions
Actuarial loss / (gain) due to experience adjustments
+LULKILUL[VISPNH[PVUHZH[Z[+LJLTILY

225,925
479,596

(213,954)
16,802

2014
Rs 000

185,680
438,507

554,485
108,833

(UHJ[\HYPHS]HS\H[PVUVM[OL7LUZPVU-\UK^HZJHYYPLKV\[HZH[Z[+LJLTILYI`4LZZYZ7P`HS:.VVUL[PSSLRL (ZZVJPH[LZHYT
of professional actuaries. The valuation method used by the actuary to value the Fund is the Projected Unit Credit Method, recommended
I`:YP3HURH(JJV\U[PUN:[HUKHYK32(: ,TWSV`LL)LUL[Z
41.4.6 Actuarial Assumptions
Discount rate as at 31st December

Expected return on assets
Mortality
Retirement age
2015
2014
9.80%
8.80%
9.80%
Normal retirement age or
age on valuation date,
if greater
9.25%
8.25%
9.25%
Normal retirement age or
age on valuation date,
if greater
The plan assets consist of term deposits, repurchase agreements , debenture investments in listed companies and listed equity
shares.
Expected average future working life of the active participants is 9.4 years.
396
41.4.7 Sensitivity of Assumptions Employed in Pension Fund Valuation

would have affected the net pension liability / Statement of Comprehensive Income by the amounts shown below.
Increase /
(Decrease) in
Discount Rate
Increase /
(Decrease) in
Salary Increment
Rate
2015
2014
Sensitivity Effect
on Statement of
Comprehensive
Income
Increase /
(Decrease) in
Comprehensive
Income for the Year
(Rs Mn)
,TWSV`TLU[)LUL[
Obligation
Increase /
(Decrease) in Net
Pension Liability
(Rs Mn)
Sensitivity Effect
on Comprehensive
Income Statement
Increase /
(Decrease) in
Comprehensive
Income for the Year
(Rs Mn)
,TWSV`TLU[)LUL[
Obligation
Increase /
(Decrease) in Net
Pension Liability
(Rs Mn)
1%
663.7
(663.7)
634.3
(634.3)
(1%)
(804.5)
804.5
(774.8)
774.8
1%
(372.1)
372.1
(357.2)
357.2
(1%)
339.0
(339.0)
323.6
(323.6)
42. STATED CAPITAL

42.1 Stated Capital
Bank & Group
Ordinary shares as at 1st January

Issue of shares under ESOP
Scrip dividend
Ordinary Shares as at 31st December
2015
Rs 000
2014
Rs 000
4,470,151
911,254
5,381,405
4,460,339
9,812
4,470,151
Rights, preferences and restrictions of classes of capital

The holders of ordinary shares have the right to receive dividend as declared from time to time and are entitled to one vote per share at the
Annual General Meeting of the Bank.
42.2 Reconciliation of Number of Shares
Ordinary shares as at 1st January

5\TILYVMZOHYLZPZZ\LKK\L[VUHSZJYPWKP]PKLUK
Number of shares issued under ESOP
Ordinary shares as at 31st December
2015
2014
167,910,253

172,312,655
167,787,605

122,648
167,910,253
397
42. STATED CAPITAL CONTD.

42.3 Share Based Payment Transaction: Employee Share Option Plan (ESOP) - 2010
The shareholders approved an Employee Share Option Plan (ESOP 2010) at the Extra Ordinary General Meeting held on 21st August 2010.
ESOP 2010 was introduced in the year 2011 having achieved targets set for 2010. The option exercisable period was 3 years, from the
entitlement date of 30th June 2011.
Accordingly, the option scheme was closed on 30th June 2014. The stated capital of the Bank increased by Rs 238.6 Mn as a result of the
consideration paid by the staff under the ESOP from 30th June 2011 to 30th June 2014.
Sri Lanka Accounting Standards - SLFRS 2 (Share - based Payment) did not apply on this transaction due to the transitional arrangement in
the Standard.
ESOP Position
As at 31st December
2015
Number of
shares
2014
Number of
shares
Number of options granted

Number of options exercised
Number of options expired
Number of options remaining
3,056,159
(2,982,941)
(73,218)
-
Option price (Rs)

Weighted average market price (Rs)
80
206.99
5VUHUJPHSHZZPZ[HUJL^HZWYV]PKLKI`[OL)HUR[V[OLZ[HMM[VW\YJOHZL[OLZOHYLVW[PVUZ
43. STATUTORY RESERVES

Bank
As at 31st December
Statutory reserve fund (Note 43.1)

Investment fund account (Note 43.2)
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
1,790,000
1,790,000
1,480,000
1,480,000
1,860,058
1,860,058
1,530,831
1,530,831
43.1 Statutory Reserve Fund

Bank

Transfer during the year
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
1,480,000
310,000
1,790,000
1,234,149
245,851
1,480,000
1,530,831
329,227
1,860,058
1,271,913
258,918
1,530,831
The statutory reserve fund is maintained as required by Section 20 (1) of the Banking Act No 30 of 1988. Accordingly, a sum equivalent to
UV[SLZZ[OHUVM[OLWYV[HM[LY[H_ILMVYLHU`KP]PKLUKPZKLJSHYLKVYHU`WYV[ZHYL[YHUZMLYYLK[VLSZLÔLYLZOV\SKIL[YHUZMLYYLK[V
HIV]LYLZLY]L\U[PS[OLYLZLY]LPZLX\HS[VVM[OL)HURZZ[H[LKJHWP[HS;OLYLHM[LYHM\Y[OLYZ\TLX\P]HSLU[[VVMZ\JOWYV[ZZOV\SK
be transferred to the statutory reserve until the amount of the said reserve fund is equal to the stated capital of the Bank.
398
43.2 Investment Fund Account

Bank

Transferred to retained earnings
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
2,439,494
(2,439,494)
-
2,497,983
(2,497,983)
-
The operation of the investment fund account was ceased with effect from 1st October 2014. Accordingly the Bank / Group transferred the
balance remaining in the investment fund account as at 30th September 2014 to retained earnings.
44. OTHER RESERVES

Bank
As at 31st December
Revaluation reserve (Note 44.1)

Available for sale reserve (Note 44.2)
/LKNLYLZLY]L5V[L
General reserve (Note 44.4)
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
1,846,649
875,723

22,165,000
24,887,372
1,846,649
1,267,433

18,665,000
21,779,082
4,202,261
875,723

22,165,001
27,242,985
4,202,261
1,267,433

18,665,001
24,134,695
44.1 Revaluation Reserve

Bank

Revaluation surplus
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
1,846,649
1,846,649
1,846,649
1,846,649
4,202,261
4,202,261
4,202,261
4,202,261
2015
Rs 000
2014
Rs 000
1,267,433
1,966,240
Revaluation reserve represents the fair value changes of free hold land & buildings as at the date of revaluation.
44.2
Available for Sale Reserve
Bank & Group

(Loss) / gain arising on re-measuring available for
ZHSLUHUJPHSHZZL[Z

32,061
875,723

993
1,267,433
;OLH]HPSHISLMVYZHSLYLZLY]LJVTWYPZLZ[OLJ\T\SH[P]LUL[JOHUNLPUMHPY]HS\LVMH]HPSHISLMVYZHSLUHUJPHSHZZL[Z\U[PS[OL`HYL
derecognised or impaired.
399
44. OTHER RESERVES CONTD.

44.3 Hedge Reserve
Bank & Group

.HPUSVZZHYPZPUNMYVTJHZOVÔLKNL
2015
Rs 000
2014
Rs 000

-
(168,014)

-
;OLLMMLJ[P]LWVY[PVUVMJOHUNLZPUMHPY]HS\LVMKLYP]H[P]LZ[OH[HYLKLZPNUH[LKHUKX\HSPLKHZJHZOVÔLKNLZPZYLJVNUPZLKPU[OLOLKNL
reserve.
44.4 General Reserve

Bank

Transfer during the year
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
18,665,000
(90)
3,500,090
22,165,000
14,138,984
(20)
4,526,036
18,665,000
18,665,001
(90)
3,500,090
22,165,001
14,138,985
(20)
4,526,036
18,665,001
;OL)HUR[YHUZMLYZJLY[HPUHTV\U[VMWYV[MYVTYL[HPULKLHYUPUNZ[VNLULYHSYLZLY]LHJJV\U[LHJO`LHY;OLW\YWVZLVM[OLHIV]L[YHUZMLY
is to build an adequate reserve to meet potential future unknown liabilities / commitments.
45. RETAINED EARNINGS

Bank
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000

3,182,746
(676,765)
2,505,981
2,500,411
2,500,411
4,375,667
(781,760)
3,593,907
3,300,881
3,300,881
7YV[MVY[OL`LHY
Deferred tax effect
Transfers to reserves during the year

(32,463)
(839,551)
(1,007,461)
(3,810,090)
3,066,297

216,390
(1,342,631)
(2,332,393)
3,182,746

(32,027)
(839,551)
(1,007,461)
(3,829,317)
4,624,088

217,042
(1,342,631)
(2,286,971)
4,375,667
400
46. NON CONTROLLING INTEREST

Non controlling interest represents 2.86% of net assets of the Subsidiary, Sampath Centre Ltd.
Group

Super gain tax
7YV[MVY[OL`LHY
Dividend paid
2015
Rs 000
2014
Rs 000
92,285
(1,490)
90,795

(1,000)
94,663
88,985
88,985

(1,000)
92,285
47. COMMITMENTS AND CONTINGENCIES

Accounting Policy
*VU[PUNLU[SPHIPSP[PLZHYLWVZZPISLVISPNH[PVUZÔVZLL_PZ[LUJL^PSSILJVUYTLKVUSÌ`\UJLY[HPUM\[\YLL]LU[ZVYWYLZLU[VISPNH[PVUZÔLYL
[OL[YHUZMLYVMLJVUVTPJILUL[ZPZUV[WYVIHISLVYJHUUV[ILYLSPHIS`TLHZ\YLKHZKLULKPU[OL:YP3HURH(JJV\U[PUN:[HUKHYK32(:
37 (Provisions, Contingent Liabilities and Contingent Assets).
;VTLL[[OLUHUJPHSULLKZVMJ\Z[VTLYZ[OL)HURLU[LYZPU[V]HYPV\ZPYYL]VJHISLJVTTP[TLU[ZHUKJVU[PUNLU[SPHIPSP[PLZ;OLZLJVUZPZ[
VMUHUJPHSN\HYHU[LLZSL[[LYZVMJYLKP[HUKV[OLY\UKYHÛJVTTP[TLU[Z[VSLUK3L[[LYZVMJYLKP[N\HYHU[LLZHUKHJJLW[HUJLZJVTTP[
[OL)HUR[VTHRLWH`TLU[ZVUILOHSMVMJ\Z[VTLYZPU[OLL]LU[VMHZWLJPJHJ[NLULYHSS`YLSH[LK[V[OLPTWVY[VYL_WVY[VMNVVKZ;OL`
carry a similar credit risk to loans. Operating lease commitments of the Bank (as a lessor and as a lessee) and pending legal claims against
the Bank too form part of commitments of the Bank. Contingent liabilities are not recognised in the Statement of Financial Position but are
disclosed unless they are remote. But these contingent liabilities do contain credit risk and are therefore form part of the overall risk of the
Bank.
Financial guarantees are initially recognised in the Statement of Financial Position (within other liabilities) at fair value, being the premium
received. Subsequent to initial recognition, the Banks liability under each guarantee is measured at the higher of the amount initially
YLJVNUPZLKSLZZJ\T\SH[P]LHTVY[PZH[PVUYLJVNUPZLKPU[OL:[H[LTLU[VM7YV[VY3VZZHUK[OLILZ[LZ[PTH[LVML_WLUKP[\YLYLX\PYLK[V
ZL[[SLHUÙHUJPHSVISPNH[PVUHYPZPUNHZHYLZ\S[VM[OLN\HYHU[LL
(U`PUJYLHZLPU[OLSPHIPSP[`YLSH[PUN[VUHUJPHSN\HYHU[LLZPZYLJVYKLKPU[OL:[H[LTLU[VM7YV[VY3VZZ\UKLY0TWHPYTLU[JOHYNLMVYSVHUZ
V[OLYSVZZLZ;OLWYLTP\TYLJLP]LKPZYLJVNUPZLKPU[OL:[H[LTLU[VM7YV[VY3VZZ\UKLY5L[MLLZHUKJVTTPZZPVUPUJVTLVUH
straight line basis over the life of the guarantee.
47.1 Commitments and Contingencies

Bank
As at 31st December
Commitments
Commitment for unutilised facilities - Direct credit facilities
- Indirect credit facilities
Capital commitments (Note 47.2)
Contingent Liabilities
Acceptances
Documentary credit
Guarantees
Bills sent for collection
Others
Forward exchange contracts

Currency SWAPs
Total commitment & contingencies
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
63,409,991
34,379,494
177,752
97,967,237
49,383,326
23,609,202
338,282
73,330,810
63,625,062
34,379,494
184,775
98,189,331
49,611,384
23,609,202
351,542
73,572,128
15,858,037
17,049,372
39,676,660
177,440
17,435
72,778,944
12,193,392
16,561,496
36,935,789
104,104
13,902
65,808,683
15,858,037
17,049,372
39,676,660
177,440
17,435
72,778,944
12,193,392
16,561,496
36,935,789
104,104
13,902
65,808,683
15,857,419
28,389,283
44,246,702
214,992,883
11,131,338
19,894,827
31,026,165
170,165,658
15,857,419
28,389,283
44,246,702
215,214,977
11,131,338
19,894,827
31,026,165
170,406,976
401
47. COMMITMENTS AND CONTINGENCIES CONTD.

47.2 Capital Commitments
Capital expenditure approved by the Board of Directors, for which provisions have not been made in the Financial Statements are detailed
below.
Bank
As at 31st December
Approved & contracted for

Approved but not contracted for
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
69,224
108,528
177,752
159,576
178,706
338,282
76,247
108,528
184,775
159,576
191,966
351,542
47.3 Litigation against the Bank

Litigation is a common occurrence in the banking industry due to the nature of the business undertaken. The Bank has formal controls and
policies for managing legal claims. Once professional advice has been obtained and the amount of loss reasonably estimated, the Bank
THRLZHKQ\Z[TLU[Z[VHJJV\U[MVYHK]LYZLLMMLJ[ZÔPJO[OLJSHPTZTHÒH]LVUP[ZUHUJPHSZ[HUKPUN;OLYL^LYLUVWLUKPUNSP[PNH[PVU
against the Bank as at 31st December 2015 which would have a material impact on the Financial Statements other than those disclosed
below.
i.
Commercial High Court Case No HC (Civil) 11 / 2004 (1)
The Plaintiff has instituted action against the Bank claiming a sum of Rs 273,272,295.16 on a transfer of funds done by the Bank. In
addition, the Plaintiff is seeking a further sum of Rs 53,411,299.34 and a sum of Rs 4,906,796.63 per month from the date of action (i.e.
26th January 2004) until payment, as losses and damages. The Bank has denied the claim of the Plaintiff and has vigorously defended the
claim. The Judgment has been delivered in favour of the Bank against which the Plaintiff has appealed in the Supreme Court under the
Case No SC 06/2013 (f) and same is yet to be listed.
ii.
Following Cases are Filed against the Bank in Order to Recover Damages
H *HZL5V+49
The Plaintiffs action against the Bank has been dismissed by the District Court. The Plaintiff has preferred an appeal against the judgment
to the Civil Apellate Courts. Appeal is pending.
(b )
Case No - DMR 1904 / 2012
The Plaintiff has allegedly instituted this action against the Bank claiming a sum of Rs 2.5 Mn as damages on the basis that the Bank has
PSSLNHSSÒHUKLKV]LY[OL*LY[PJH[LVM9LNPZ[YH[PVUWLY[HPUPUN[V[OL]LOPJSLSLHZLK\UKLY[OL3LHZL(NYLLTLU[5V3:)32\SP[V
the spouse and the consent letter given by the spouse is challenging in Courts.
(c)
Case No - 7058 / DMR
The Plaintiff has instituted this action against the Bank, claiming a sum of Rs 20 Mn on the basis that the Bank has increased the rate of
PU[LYLZ[PUYLZWLJ[VM[OLOV\ZPUNSVHUVI[HPULKIÒPTHUKOLZ\MMLYLKKHTHNLZHZHYLZ\S[VM[OH[/V^L]LY[OL3L[[LYVM6MMLYJVUYTZ
that the Bank has the right to increase the rate of interest.
(d)
Case No - CHC 320 / 2011
7SHPU[PMMOHZPUZ[P[\[LKSLNHSHJ[PVUHNHPUZ[[OLIHURZ[+LMLUKHU[VM[OPZJHZLPUVYKLY[VVI[HPUHUVYKLYMYVT[OL*VTTLYJPHS/PNO*V\Y[
of Western Province for the cancellation of resale of the property described in the plaint.
(e)
Case No - 58032 / MR
;OL7SHPU[PMMOHZSLK[OPZHJ[PVUHNHPUZ[[OL)HURHZ^LSSHZ[OL*90)JSHPTPUN9Z4UHZKHTHNLZVU[OLIHZPZ[OH[OPZ*VTWHU`
namely Jagath Robotics (Pvt) Ltd has been reported to the CRIB, under an irrelevant reference due to negligence of the Bank. The Bank is
defending the above action and chances for the Plaintiff to succeed in this case are very remote.
(f)
Case No - 11938 / M - Embilipitiya
Plaintiff has instituted this action against the Bank claiming damages of Rs 1.0 Mn for the payment of Rs 0.1 Mn from a Savings account, to
a person who has forged the Plaintiffs signature.
402
(g)
DC Colombo Case No 891 / 13 - Jayantha Dadigama
;OLWSHPU[PMMOHZSLKHJHZLHNHPUZ[[OL)HURJSHPTPUNKHTHNLZVM9Z4UVU[OLIHZPZ[OH[[OL)HUROHZ\USH^M\SS`H\J[PVULKOPZ
property under the provisions of Act No 04 of 1990. The basis of the case is not favourable to the Plaintiff since the Bank has acted all the
time as per the provisions of law.
(h)
CHC Colombo Case No 29 / 13 / MR - R J Technology Systems
;OLHIV]LJHZL^HZSLKI`+3+79VZOHU1H`HZPUNOL[OLWYVWYPL[VYVM91;LJOUVSVN`:`Z[LTZHNHPUZ[[OL)HURJSHPTPUNKHTHNLZVM
Rs 40 Mn on the basis that the Bank illegally suspended his credit balance of Rs 299,209.43 and as a result, two cheques issued by him
got returned.
Over Rs 3 Mn is due to the Bank from the said customer on a charge back created through the payment gateway, which was utilized by the
customer and the Bank is defending this action on the right of set off recognised by law relating to banking facilities.
(i)
CHC Colombo Case No 299 / 13 / MR R J Technology Systems
;OLHIV]LJHZL^HZSLKI`+3+79VZOHU1H`HZPUNOL[OLWYVWYPL[VYVM91;LJOUVSVN`:`Z[LTZHNHPUZ[[OL)HURJSHPTPUNKHTHNLZVM
Rs 250 Mn, on the basis that the Bank has illegally suspended operation of his current account and the payment gateway facility provided
to him by the Bank.
Over Rs 3 Mn is due to the Bank from the said customer on a charge back created through the payment gateway, which was utilised by the
customer and the Bank is defending this action on the right of set off recognised by law relating to banking facilities.
(j)
D C Polonnaruwa case No 16139 / L / 15 - P A S N R Kularathne
The plaintiff has instituted above action against the Bank claiming a sum of Rs 120 Mn as damages, and also seeking an order from courts
declaring that he is the owner of the land and property acquired by the Bank under Parate Execution. Further he claims that the Bank has
fraudulently acted with one of the customers of the Bank who died recently and got transferred the land owned by plaintiff in the name of
the deceased customer together with the rice mill and hence he has suffered a loss of Rs 120 Mn.
:PUJL[OLYLPZUVTLYP[VM[OLJHZL)HURPZJVUKLU[[OH[^LJHUKLMLUKHUKZHMLN\HYKV\YWVZP[PVUPUJV\Y[
iii.
The Following Cases are Filed Against the Bank in Order to Prevent the Bank from Enforcing the Mortgages to Recover
its Dues:
(a)
:L]LUHJ[PVUZOH]LILLUSLKPU:\WYLTL*V\Y[PU*HZL5VZ:* :*:* :* :*:*

11, 24 / 2008 SC.
(b)
;^VHJ[PVUZOH]LILLUSLKPU*V\Y[VM(WWLHSPU*HZL5VZ*(3(*(
(c )
;^VHJ[PVUZOH]LILLUSLKPU*P]PS(WWLHSPU*HZL5VZ*(3(*(3(3(
(d)
:L]LUHJ[PVUZOH]LILLUSLKPU*VTTLYJPHS/PNO*V\Y[PU*HZL5VZ49494949
/ 2014 / MR, 153 / 11 MR, 427 / 15 / MR
(e)
5PULHJ[PVUZOH]LILLUSLKPU+PZ[YPJ[*V\Y[VM*VSVTIVPU*HZL5VZ3+:7+3449
2014 DSP, 84 / 14 / DSP, 146 / 15 DSP, 721 / 15 MR, 11 / 15 DSP, One in District Court of Kurunegala in Case No 8660 / SP, Three
in District Court of Marawila in Case Nos 1613 / L, 1070 / S,1747 / L, Three in District Court of Kandy in Case Nos 228 / 10 DPA,
36599 / MR, 401 / 14 DMR, One in District Court of Monaragala in Case No 1691 / SPL, One in District Court of Minuwangoda in
Case No 12 / SPL, One in District Court of Chilaw in Case No 4127 / 11 / L, One in District Court of Kalutara in Case No 4369 /
SPL, One in District Court of Ratnapura in Case No 30132 / M, Two in District Court of Matale in Case Nos 6257 / L, 6048 /L, One in
District Court of Galle in Case No 3480/SP, One in District Court of Gampaha in Case No 1885/L, One in District Court of Batticaloa
in Case No 5487 / L / 11, One in District Court of Bandarawela in Case No 302 / SPL, Two in District Court of Kegalle in Case Nos
8031 / SPL, 8067 / SPL, One in District Court of Nikaweratiya in Case No 37 / SPL, One in the District Court of Ruwanwella in Case
No 168 / P, One in the District court of Wariyapola in Case No 16 / L, One in the District court of Nawalapitiya in Case No 62 / 14 / P,
6ULPU[OL+PZ[YPJ[JV\Y[VM/VTHNHTHPU*HZL5V 76ULPU[OL+PZ[YPJ[JV\Y[VM7VSVUUHY\^HPU*HZL5V 36ULPU
[OL+PZ[YPJ[*V\Y[VM([[HUHNHSSHPU*HZL5V 36ULPU[OL+PZ[YPJ[*V\Y[VM/VYHUHPU*HZL5V 7
Litigation against the Group

6[OLY[OHU[OVZLKPZJSVZLKHIV]L[OLYLPZUVJHZLSLKHNHPUZ[[OL.YV\WÔPJO^V\SKOH]LTH[LYPHSPTWHJ[VU[OLUHUJPHSWVZP[PVUVM[OL
Group.
403
48. COMPARATIVE INFORMATION

;OLJVTWHYH[P]LPUMVYTH[PVUPZYLJSHZZPLKÔLYL]LYULJLZZHY`[VJVUMVYT[V[OLJ\YYLU[`LHYZWYLZLU[H[PVUHUKKL[HPSZHYLNP]LUILSV^
6WDWHPHQWRI3URWRU/RVV
Bank
5V[L
9LJSHZZPLK
(Z (KQ\Z[TLU[ 9LJSHZZPLK

disclosed
in 2014
Rs 000
Rs 000
Rs 000
(Z (KQ\Z[TLU[
disclosed
in 2014
Rs 000
Rs 000
5,055,618
868,212
3,357,982
271,058
1,697,636
597,154
5,132,720
873,362
3,435,084
276,208
1,697,636
597,154
1,069,469
3,639,080
(2,569,611)
1,152,792
3,790,375
(2,637,583)
6,668,211
1,401,399
7,273,770
2,264,969
(605,559)
(863,570)
6,839,150
1,580,792
7,512,681
2,444,362
(673,531)
(863,570)
Rs 000
Fee & commission expense
Net impairment charge /
(reversal) for loans &
other losses
48.1.1
48.1.2
48.1.1,48.1.3
48.1.4 & 48.1.5
48.1.2,48.1.3
& 48.1.5
48.1.4
Group
48.1.1 -LLZYLJV]LYLK9Z 4UÔPJO^HZWYL]PV\ZS`YLWVY[LK\UKLYV[OLYVWLYH[PUNPUJVTLOHZILLUYLJSHZZPLK\UKLYMLL

commission income.
48.1.2 *HYKYLSH[LKMLLL_WLUZLZ9Z 4UÔPJO^HZWYL]PV\ZS`YLWVY[LK\UKLYV[OLYVWLYH[PUNL_WLUZLZOHZILLUYLJSHZZPLK\UKLY
fee & commission expenses.
48.1.3 Postage recovered (Rs 8.4 Mn) which was previously reported under other operating income has been netted with the postage
L_WLUZLZHUKYLJSHZZPLK\UKLYV[OLYVWLYH[PUNL_WLUZLZ
48.1.4 9L]LYZHSVMPTWHPYTLU[WYV]PZPVUZ9Z4UÔPJO^HZWYL]PV\ZS`YLWVY[LK\UKLYV[OLYVWLYH[PUNPUJVTLOHZILLUYLJSHZZPLK
under net impairment charge / (reversal) for loans & other losses.
48.1.5 Removal of Rs 68 Mn from both other operating income and other operating expenses of the Group.
48.2 Statement of Financial Position

;OLYL^LYLUVYLJSHZZPJH[PVUZK\YPUN[OL`LHY
404
49. RELATED PARTY DISCLOSURES

;OL)HURHUK[OL.YV\WJHYYPLZV\[[YHUZHJ[PVUZPU[OLVYKPUHY`JV\YZLVMI\ZPULZZ^P[O[OLWHY[PLZÔVHYLKLULKHZYLSH[LKWHY[PLZPU:YP
Lanka Accounting Standards - LKAS 24 (Related Party Disclosures), the details of which are reported below.
49.1 Terms and Conditions

The pricing applicable to such transactions is based on the assessment of risk and pricing model of the Bank and is comparable with what
is applied to transactions between the Bank & the Group and its unrelated customers with similar credit standing.
The subsidiary companies are carried out transactions in the ordinary course of business on an arms length basis at commercial rates.
49.2 Parent and Ultimate Controlling Party

;OL)HURKVLZUV[OH]LHUPKLU[PHISLWHYLU[VMP[ZVÛ
49.3 Transactions with Key Management Personnel (KMP)

As per Sri Lanka Accounting Standard - LKAS 24 (Related Party Disclosures), key management personnel (KMP) are those having authority
HUKYLZWVUZPIPSP[`MVYWSHUUPUNKPYLJ[PUNHUKJVU[YVSSPUN[OLHJ[P]P[PLZVM[OLLU[P[`(JJVYKPUN[V[OLHIV]LKLUP[PVUHWLYZVUJHUUV[IL
considered as a KMP unless such person have both the authority and responsibility to carry out all the three activities mentioned in the
HIV]LKLUP[PVUPLWSHUUPUNKPYLJ[PUNHUKJVU[YVSSPUN[OLHJ[P]P[PLZVM[OLLU[P[`
Accordingly the Board of Directors of the Bank are considered as KMP of the Bank and the Group.
49.3.1 Compensations of KMP
Bank
:OVY[[LYTLTWSV`LLILUL[Z
;LYTPUHSILUL[Z
7VZ[LTWSV`TLU[ILUL[Z
Directors fees & expenses
Total
Group
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000

53,935
97,972

47,877
85,515

55,095
99,132

48,937
86,575
0UHKKP[PVU[V[OLHIV]L[OL)HUROHZHSZVWHPKUVUJHZOILUL[ZZ\JOHZM\LSTLKPJHSILUL[Z[V247ÔVHYLLTWSV`LLZVM[OL)HURPU
SPUL^P[O[OLHWWYV]LKILUL[WSHUZVM[OL)HUR
405
49. RELATED PARTY DISCLOSURES CONTD.

49.4 Transactions, Arrangements and Agreements involving KMP and their Close Family Members (CFMs)
*-4ZVM[OL247HYL[OVZLMHTPS`TLTILYZÔVTHÌLL_WLJ[LK[VPU\LUJLVYILPU\LUJLKI`[OH[247PU[OLPYKLHSPUNZ^P[O[OL
entity. They may include KMPs domestic partner, children of the KMPs domestic partner and dependants of the KMP.
49.4.1 Loans and Advances to KMP and their CFMs are detailed below:
2015
Limit
Loans & receivables

Credit cards
2014
Rs 000
Closing
Balance
Rs 000
Average
Balance
Rs 000
4,000
7,740
1,039
1,267
Limit
Rs 000
Closing
Balance
Rs 000
Average
Balance
Rs 000
4,000
8,740
743
1,163
49.4.2 Deposits and Investments from KMP and their CFMs are detailed below:
2015
2014
Closing
Balance
Rs 000
Average
Balance
Rs 000
Closing
Balance
Rs 000
Average
Balance
Rs 000
269,158
254,253
226,636
216,775
2015
2014
Cash dividend (Rs 000)

631
3,303
985
-
Deposits and investments

49.4.3 Share Based Payments to KMP
49.5 Transactions, Arrangements and Agreements involving Entities which are Controlled and / or Jointly Controlled by the KMP or their
CFMs (excluding transactions with Banks Subsidiaries)
Loans & receivables

Documentary credits
Acceptance
Guarantees
Deposits
Total
Closing Balance
Average Balance
2015
Rs 000
2014
Rs 000
2015
Rs 000
2014
Rs 000
2,633,870
396,270
634,144
682,452
204,843
4,551,580
3,888,017
509,942
408,071
549,955
163,295
5,519,280
3,176,441
458,410
401,958
491,080
188,966
4,716,854
3,217,568
434,268
530,081
535,694
143,932
4,861,543
Siyapatha Finance PLC has granted a lease facility amounting to Rs 0.9 Mn (Rs 1.8 Mn - 2014) to an entity which is controlled by a KMP.
406
49.6 Credit Card Facilities to entities which are controlled and / or jointly controlled by the KMP or their CFMs are detailed below:
2015
Limit
Credit Card Facilities
2014
Rs 000
Closing
Balance
Rs 000
Average
Balance
Rs 000
4,050
428
615
Limit
Rs 000
Closing
Balance
Rs 000
Average
Balance
Rs 000
1,650
467
495
49.7 Share Based Payments to entities which are controlled and / or jointly controlled by the KMP or their CFMs are detailed below:

Cash dividend (Rs 000)
2015
2014
125,537
658,286
200,860
-
49.8 Interest Income & Expense to KMP and their CFMs and Entities which are controlled and / or jointly controlled by the KMP or their
CFMs are detailed below:
Interest income
Interest expense
2015
Rs 000
2014
Rs 000
197,747
17,900
257,823
22,179
49.9 Payment for Promotional Activities

During the year, the Bank had paid following amounts for the credit card promotional activities carried out with the entities where KMPs
have either control and / or joint control.
For the Year ended 31st December
2015
Rs 000
2014
Rs 000
Payment for credit card promotional activities
33,157
11,489
49.10 Goods and Services Purchased & Sold

During the year, goods and services purchased and sold from / to the entities where KMPs have either control and / or joint control in the
normal course of the business, are detailed below.
The Bank has made the following payments during the year.
2015
Rs 000
2014
Rs 000
Expenses on goods & services purchased

Income from goods & services sold
37,596
-
35,890
-
Siyapatha Finance PLC and Sampath Centre Limited have paid Rs 22 Mn (Rs 21 Mn - 2014) for the entities which are controlled by KMP.
407
49. RELATED PARTY DISCLOSURES CONTD.

49.11 Transactions with Subsidiaries
;OL)HUROHK[OLMVSSV^PUNUHUJPHSKLHSPUNZK\YPUN[OL`LHY^P[OP[Z:\IZPKPHY`JVTWHUPLZ
2015
Subsidiary Company
Nature of Facility/
Transaction
Sampath Centre Ltd
As at
Deposits
Other assets
Other liabilities
For the year ended
Income and fees received (Net)
Expenses and fees paid
As at
Guarantees
Deposits
Investments - treasury bills
For the year ended
Income and fees received
As at
Other liabilities
For the year ended
Sampath Information
Technology Solutions Ltd As at
Other liabilities
Deposits
For the year ended
Purchase of computer
hardware & software
408
2014
31st
December
Rs 000
Average
Balance
Rs 000
31st
December
Rs 000
Average
Balance
Rs 000
341,256
63,172
39,961
384,385
5,093
62,754
48,282
290,005
62,754
40,001
201,050
1,140
62,754
66,696
34,000
373,067
61,007
1,750
7
11,912
30,600
270,575
58,358
1,750
11,619
7,564
2,990
2,770,729
703,677
19,851
114,973
20,252
58,191
1,750
10,992
10,011
1,952
2,170,254
631,308
39,335
192,289
266,372
28,590
650
42,433
1,750
15
11,359
1,315,504
489,685
1,674,560
594,842
35,044
182,936
185,765
43,120
426
160,620
10,594
398
11,345
97,709
10,241
201,555
365
7UDQVDFWLRQVZLWK3RVW(PSOR\PHQW%HQHW3ODQVRIWKH%DQN
As at 31st December
Nature of Transaction
2015
Rs 000
2014
Rs 000
Sampath Bank Employees Provident Fund
Deposits
Investment in repo
Debentures
3,226,994
1,431,300
749,077
531,500
497,750
Sampath Bank Employees Pension Fund
Deposits
Treasury bills
Debentures
Investment in Sampath Bank shares market value
Investment in Repo
1,309,237
530,682
1,590,881
557,000
795,182
696,101
2,337,639
623,924
922,177
50. SEGMENT INFORMATION

Accounting Policy
An operating segment is a component of the Group that engages in business activities from which it may earn revenue and incur expenses,
including revenue and expenses that relate to transactions with any of the Groups other components, whose operating results are reviewed
regularly by the chief operating decision maker to make decisions about resources allocated to each segment and assess its performance,
HUKMVYÔPJOKPZJYL[LUHUJPHSPUMVYTH[PVUPZH]HPSHISL
-VYTHUHNLTLU[W\YWVZLZ[OL.YV\WOHZPKLU[PLKMV\YVWLYH[PUNZLNTLU[ZIHZLKVUWYVK\J[ZHUKZLY]PJLZHZMVSSV^Z!
Banking
Leasing, hirepurchase & factoring
Dealing / Investment
Others
3LHZPUNOPYLW\YJOHZL MHJ[VYPUNYLWYLZLU[Z[OLUHUJLSLHZPUNOPYLW\YJOHZL MHJ[VYPUNI\ZPULZZLZVM[OL)HURHZ^LSSHZ[OLHIV]L
activities of its Subsidiary, Siyapatha Finance PLC. Dealing / Investment involves activities such as stock broking, securities dealing,
investment banking, venture capital businesses and foreign currency related services.
Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation
HUKWLYMVYTHUJLHZZLZZTLU[:LNTLU[WLYMVYTHUJLPZL]HS\H[LKIHZLKVUVWLYH[PUNWYV[ZVYSVZZLZÔPJOPUJLY[HPUYLZWLJ[ZHYL
TLHZ\YLKKPMMLYLU[S`MYVTVWLYH[PUNWYV[ZVYSVZZLZPU[OL*VUZVSPKH[LK-PUHUJPHS:[H[LTLU[Z0UJVTL[H_LZHYLTHUHNLKVUHNYV\WIHZPZ
and are not allocated to operating segments.
Interest income is reported net as management primarily relies on net interest revenue as a performance measure, not the gross income
and expense. Transfer prices between operating segments are on an arms length basis in a manner similar to transactions with third
parties.
Revenue from transactions with a single external customer or counterparty did not exceed 10% or more of the Banks total revenue in 2015
or 2014.
409
410
318,107,110
389,623,046
7YV[MVY[OL`LHY

7YV[H[[YPI\[HISL[VLX\P[`
holders of the Bank
*HZOV^ZMYVTVWLYH[PUN
activities
*HZOV^ZMYVTPU]LZ[PUN
activities
*HZOV^ZMYVTUHUJPUN
activities
Capital expenditure
Total liabilities
Unallocated liabilities
Segment liabilities
Total assets
Unallocated assets
1,635,641
(806,741)
(3,987,392)
821,449
(842,578)
(890,051)
19,358,544
884,374
269,757,100
333,980,396
269,757,100
333,980,396
318,107,110
389,623,046
Less: Income tax expenses
Segment assets
8,835,108
9,324,448
6,722,010
10,722,172
Less : Total operating expenses
Segment result
3LZZ!=(; 5);VUUHUJPHS
services
1,346,748
16,046,458
916,848
19,557,280
17,393,206
20,474,128
17,393,206
20,474,128
42,090
497,856
1,038,173
55,297
4,159,869
12,693,391
2014
Rs 000
5,211,283
14,169,375
2015
Rs 000
Banking

Less: Impairment charge /
(reversal) for loans & other
losses
Inter segment revenue
Other income
Total revenue from external
customers
-VYLPNUL_JOHUNLWYV[
Dividend Income
Net interest income
3,546,384
57,213
(57,289)
(3,415,347)
38,469,399
38,469,399
33,229,202
33,229,202
814,229
1,313,892
2,128,121
73,607
2,201,728
2,201,728
133,547
173,978
1,894,203
6,772
(12,019,811)
(46,557)
1,019,485
49,350
(19,632)
130,858,604
130,858,604
97,015,827
97,015,827
1,991,186
2,035,967
4,027,153
2,389
4,029,542
4,029,542
(75,654)
1,427,738
36,004
155,564
2,485,890
2015
Rs 000
621
6,233,677
4,644
119,655,618
119,655,618
88,562,747
88,562,747
1,448,038
2,153,262
3,601,300
25,280
3,626,580
3,626,580
19,411
784,744
37,881
137,402
2,647,142
2014
Rs 000
Dealing / Investment
(803,696)
20,926,417
20,926,417
18,990,214
18,990,214
550,548
846,962
1,397,510
208,764
1,606,274
1,606,274
105,091
61,800
1,439,383
Leasing, Hire purchase &

Factoring
2015
2014
Rs 000
Rs 000
50. SEGMENT INFORMATION CONTD.

Other
2,754
242,230
(242,228)
244,328
414,473
414,473
3,814,238
3,814,238
212,349
224,109
436,458
436,458
436,458
436,213
(673)
918
2015
Rs 000
61,370
150,887
(150,887)
246,912
278,709
278,709
3,554,693
3,554,693
180,237
184,482
364,719
364,719
364,719
364,116
(79)
(192)
874
2014
Rs 000
(2,691,264)
-
(249,524)
2,947,388
(4,278,619)
(4,278,619)
14,965,139
20,323,679
(5,358,540)
(65,500)
(334,102)
(399,602)
(399,602)
(399,602)
(337,271)
(3,381)
(58,950)
2015
Rs 000
307,162
-
(221,492)
(348,908)
(2,431,501)
(2,431,501)
13,575,208
17,066,630
(3,491,422)
(55,524)
(328,928)
(384,452)
(384,452)
(384,452)
(334,480)
(49,972)
2014
Rs 000
Eliminations/Unallocated
20,216,418
1,190,589
(13,458,903)
(1,085,841)
499,444,253
499,444,253
538,647,452
20,323,679
518,323,773
6,623,346
(4,844)
6,628,190
3,161,453
1,997,729
11,787,372
13,962,038
25,749,410
992,844
26,742,254
26,742,254
212,132
2,465,911
5,417,211
96,614
18,550,386
5,263,235
(4,320)
5,267,555
1,979,359
1,598,395
8,845,309
12,180,226
21,025,535
1,580,792
22,606,327
22,606,327
196,228
1,282,521
4,259,358
87,430
16,780,790
2014
Rs 000
(2,599,375)
1,022,307
5,008,000
734,593
408,186,343
408,186,343
442,789,972
17,066,630
425,723,342
Total
2015
Rs 000
51. EVENTS AFTER THE REPORTING PERIOD

Accounting Policy
Events after the reporting period are those events, favourable and unfavourable, that occur between the reporting date and the date when
the Financial Statements are authorised for issue.
5VJPYJ\TZ[HUJLZOH]LHYPZLUZPUJL[OLYLWVY[PUNKH[LÔPJO^V\SKYLX\PYLHKQ\Z[TLU[Z[VVYKPZJSVZ\YLPU[OLUHUJPHSZ[H[LTLU[ZV[OLY
than those disclosed below.
51.1 Bank
51.1.1 Proposed Dividends
+PYLJ[VYZOH]LYLJVTTLUKLKHUHSKP]PKLUKVM9ZWLYZOHYL[VILWHPKMVY[OLUHUJPHS`LHYLUKLKZ[+LJLTILY;OPZ
will be paid by Rs 6.00 in the form of cash dividend and the balance Rs 7.00 in the form of scrip dividend. Further this dividend is to be
approved by the shareholders at the Annual General Meeting to be held on 31st March 2016.
0UHJJVYKHUJL^P[O:YP3HURH(JJV\U[PUN:[HUKHYK32(:,]LU[Z(M[LY[OL9LWVY[PUN7LYPVK[OPZWYVWVZLKUHSKP]PKLUKOHZ
not been recognised as a liability as at 31st December 2015. As required by section 56 (2) of the Companies Act No 7 of 2007, the
)VHYKVM+PYLJ[VYZOHZJVUYTLK[OH[[OL)HUROHZZH[PZLK[OLZVS]LUJ`[LZ[OH]PUNVI[HPULKHJLY[PJH[LMYVT[OLH\KP[VYZWYPVY[V
YLJVTTLUKPUN[OLUHSKP]PKLUKMVY[OL`LHY
Under the Inland Revenue Act No 10 of 2006, a Withholding Tax of 10% has been imposed on dividend declared.
52.
FAIR VALUE OF ASSETS & LIABILITIES
52.1
Assets & Liabilities Recorded at Fair Value
The following is a description of how fair values are determined for assets and liabilities that are recorded at fair value. These incorporate the
Banks estimate of assumptions that a market participant would make when valuing assets and liabilities.
Derivatives - Assets & Liabilities

Derivative products which consist of SWAPs, forward foreign exchange contracts and hedges are valued using a valuation technique with
market-observable inputs. The most frequently applied valuation techniques include forward foreign exchange spot and forward premiums.
Financial Assets - Available for Sale

(]HPSHISLMVYZHSLUHUJPHSHZZL[ZWYPTHYPS`JVUZPZ[VMX\V[LK\UX\V[LKLX\P[`ZLJ\YP[PLZHUKNV]LYUTLU[ZLJ\YP[PLZ.V]LYUTLU[ZLJ\YP[PLZ
are valued using the yield curve published by the Central Bank of Sri Lanka. Quoted equity securities are valued using quoted market prices
in the active markets as at the reporting date.
Unquoted equity securities (except LankaBangla Securities Ltd) are carried at cost since it is the most reasonable value avalable to
represent the price of such securities. Fair value of LankaBangla Securities Ltd is derived using a valuation model, the details of which are
given in Note 52.5.2.
Trading Assets & Other Assets Measured at Fair Value

Trading assets and other assets measured at fair value are the government securities and quoted equity securities. Government securities
are valued using yield curve published by the Central Bank of Sri Lanka. For quoted equity securities, the Bank uses quoted market prices
in the active market as at the reporting date.
Property, Plant & Equipment

Freehold land and buildings are carried at revalued amount, being their fair value at the revaluation date less any subsequent accumulated
depreciation and subsequent accumulated impairment losses.
411
52.
FAIR VALUE OF ASSETS & LIABILITIES CONTD.
52.2
Valuation Model
-VYHSSUHUJPHSPUZ[Y\TLU[ZÔLYLMHPY]HS\LZHYLKL[LYTPULKI`YLMLYYPUN[VL_[LYUHSS`X\V[LKWYPJLZVYVIZLY]HISLWYPJPUNPUW\[Z[VTVKLSZ
independent price determination or validation is obtained. In an inactive market, direct observation of a traded price may not be possible. In
[OLZLJPYJ\TZ[HUJLZ[OL)HUR\ZLZHS[LYUH[P]LTHYRL[PUMVYTH[PVU[V]HSPKH[L[OLUHUJPHSPUZ[Y\TLU[ZMHPY]HS\L^P[ONYLH[LY^LPNO[NP]LU
to information that is considered to be more relevant and reliable.
Fair value of freehold land and buildings was determined by using Market Comparable Method or Income Basis. These valuations
WLYMVYTLKI`[OL]HS\LYZHYLIHZLKVUHJ[P]LTHYRL[WYPJLZZPNUPJHU[S`HKQ\Z[LKMVYKPMMLYLUJLPU[OLUH[\YLSVJH[PVUVYJVUKP[PVUVM[OL
ZWLJPJWYVWLY[`4HUHNLTLU[KL[LYTPULK[OH[MYLLOVSKSHUKHUKI\PSKPUNZJVUZ[P[\[LVULJSHZZVMHZZL[\UKLY:YP3HURH(JJV\U[PUN
Standard - SLFRS 13 (Fair Value Measurement), based on the nature, characteristics and risks of the property.
Fair values are determined according to the following hierarchy:
Level 1 Quoted market price (unadjusted): quoted prices for identical assets and liabilities in active markets.
Level 2 Valuation technique using observable inputs: quoted prices for similar assets and liabilities in active markets or quoted prices for
PKLU[PJHSVYZPTPSHYHZZL[ZHUKSPHIPSP[PLZPUPUHJ[P]LTHYRL[ZHUKHYL]HS\LK\ZPUNTVKLSZÔLYLHSSZPNUPJHU[PUW\[ZHYLVIZLY]HISL
Level 3 =HS\H[PVU[LJOUPX\L^P[OZPNUPJHU[\UVIZLY]HISLPUW\[Z!HZZL[ZHUKSPHIPSP[PLZ]HS\LK\ZPUN]HS\H[PVU[LJOUPX\LZÔLYLVULVY

TVYLZPNUPJHU[PUW\[ZHYL\UVIZLY]HISL
52.3 Valuation Framework

The Bank has an established control framework with respect to the measurement of fair values of trading and investment operations and all
V[OLYZPNUPJHU[HZZL[ZHUKSPHIPSP[PLZ:WLJPJJVU[YVSZPUJS\KL!

(YL]PL^HUKHWWYV]HSWYVJLZZMVYZPNUPJHU[Q\KNTLU[ZHUKHZZ\TW[PVUZUL^TVKLSZJOHUNLZ[VL_PZ[PUNQ\KNTLU[Z
assumptions and models involving Board Audit Committee.
Periodic (at least quarterly) reviewing of fair value measurements against observable market data.

7LYPVKPJH[SLHZ[HUU\HSS`YL]PL^PUNVMMHPY]HS\LTLHZ\YLTLU[TVKLSZHNHPUZ[JOHUNLZPUTHYRL[JVUKP[PVUZZPNUPJHU[Q\KNTLU[Z
and assumptions.
Use of sophisticated software for fair value measurements of trading and investment securities and derivatives.

0UKLWLUKLU[HUHS`ZPZHUKPU]LZ[PNH[PVUVMZPNUPJHU[KHPS`]HS\H[PVUTV]LTLU[ZPU[YHKPUNHUKPU]LZ[TLU[ZLJ\YP[PLZHUKKLYP]H[P]LZ

(K\HS]LYPJH[PVUWYVJLZZMVYTHYRL[KH[HPUW\[Z[V[OLMHPY]HS\LTLHZ\YLTLU[ZVM[^HYL
52.4 Assets & Liabilities Measured at Fair Value - Fair Value Hierarchy
The following table shows an analysis of assets and liabilities recorded at fair value by level of the fair value hierarchy into which the fair value
measurement is categorised. The amounts are based on the value recognised in the Statement of Financial Position.
412
413
31st December 2015
Financial liabilities measured at fair value

Currency SWAPs
-
7,210,585
62,996,782
49,976,743
1,217,611
51,194,354
2,702,785
1,767,317
121,741
1,889,058
8\V[LK7YPJLZ
in Active
Markets
(Level 1)
Rs 000
;V[HS 8\V[LK7YPJLZ
in Active
Markets
(Level 1)
Rs 000
Rs 000
3,480,030
3,480,030
56,057
56,057
56,057
239,569
217,489
457,058
3,480,030
3,480,030
7,210,585
63,372,300
49,976,743
1,217,611
56,057
51,250,411
2,702,785
1,767,317
121,741
1,889,058
198,448
121,013
319,461
31,763,475
1,533,863
1,533,863
13,205,359
16,331,920
692,333
17,024,253
11,094
41,085
52,179
177,224
101,028
76,196
177,224
3,286,161
3,286,161
47,759
47,759
47,759
:PNUPJHU[
:PNUPJHU[
Observable Unobservable
Inputs
Inputs
(Level 2)
(Level 3)
Rs 000
Rs 000
11,094
41,085
52,179
3,286,161
3,286,161
31,988,458
1,533,863
47,759
1,581,622
13,205,359
16,331,920
692,333
17,024,253
101,028
76,196
177,224
Rs 000
;V[HS
* The independent valuers provide the fair value of land and buildings once in three years according to the Banks policy. Therefore the fair value exist in the recent valuation (31st December 2013)
ÔPJO^HZJHYYPLKV\[I`WYVMLZZPVUHSS`X\HSPLKPUKLWLUKLU[]HS\LYZPUJVTWSPHUJL^P[O:YP3HURH(JJV\U[PUN:[HUKHYK:3-9:-HPY=HS\L4LHZ\YLTLU[SLZZZ\IZLX\LU[HJJ\T\SH[LK
depreciation and impairment losses is considered as the fair value exist as at the reporting date (31st December 2015).
239,569
217,489
457,058
319,461
198,448
121,013
319,461
:PNUPJHU[
:PNUPJHU[
Inputs
Inputs
(Level 2)
(Level 3)
Rs 000
Rs 000
2014
Fair Value Measurement Using
2015
There were no material transfers between levels of fair value hierarchy during 2015 and 2014.
31st December 2015
31st December 2015
31st December 2015
1RQQDQFLDODVVHWVPHDVXUHGDWIDLUYDOXH
Freehold land & buildings (under
property, plant & equipment) *

Government securities

Quoted equity securities
Unquoted equity securities
31st December 2015
31st December 2015


31st December 2015
Date of
Valuation
Financial assets measured at fair value

Currency SWAPs
As at 31st December
52.4.1 Bank
414

-
6,519,573
62,996,782
50,667,755
1,217,611
51,885,366
2,693,769
1,776,333
121,741
1,898,074
;V[HS 8\V[LK7YPJLZ
in Active
Markets
(Level 1)
Rs 000
Rs 000
6,370,147
6,370,147
56,113
56,113
56,113
239,569
217,489
457,058
6,370,147
6,370,147
6,519,573
63,372,356
50,667,755
1,217,611
56,113
51,941,479
2,693,769
1,776,333
121,741
1,898,074
198,448
121,013
319,461
31,763,475
1,533,863
1,533,863
13,205,359
16,331,920
692,333
17,024,253
11,094
41,085
52,179
177,224
101,028
76,196
177,224
6,196,504
6,196,504
47,815
47,815
47,815
:PNUPJHU[
:PNUPJHU[
Inputs
Inputs
(Level 2)
(Level 3)
Rs 000
Rs 000
11,094
41,085
52,179
6,196,504
6,196,504
31,988,514
1,533,863
47,815
1,581,678
13,205,359
16,331,920
692,333
17,024,253
101,028
76,196
177,224
Rs 000
;V[HS
* The independent valuers provide the fair value of land and buildings once in three years according to the Groups policy. Therefore the fair value exist in the recent valuation (31st December 2013)
ÔPJO^HZJHYYPLKV\[I`WYVMLZZPVUHSS`X\HSPLKPUKLWLUKLU[]HS\LYZPUJVTWSPHUJL^P[O:YP3HURH(JJV\U[PUN:[HUKHYK:3-9:-HPY=HS\L4LHZ\YLTLU[SLZZZ\IZLX\LU[HJJ\T\SH[LK
depreciation and impairment losses is considered as the fair value exist as at the reporting date (31st December 2015).
239,569
217,489
457,058
319,461
198,448
121,013
319,461
:PNUPJHU[
:PNUPJHU[
Inputs
Inputs
(Level 2)
(Level 3)
Rs 000
Rs 000
2014
2015
There were no material transfers between levels of fair value hierarchy during 2015 and 2014.
Financial liabilities measured at fair value

Currency SWAPs
31st December 2015
31st December 2015
1RQQDQFLDODVVHWVPHDVXUHGDWIDLUYDOXH
Freehold land & buildings (under

property, plant & equipment) *
31st December 2015
31st December 2015


31st December 2015
31st December 2015


31st December 2015
Date of
Valuation
Financial assets measured at fair value

Currency SWAPs
As at 31st December
8\V[LK7YPJLZ
in Active
Markets
(Level 1)
Rs 000
52.4.2 Group
52.
52.5 Level 3 Fair Value Measurement

52.5.1 Reconciliation
The following table shows a reconciliation from the beginning balances to the ending balances of fair value measurements in Level 3 of the
fair value hierarchy.

Additions
Disposals / deductions
;V[HSNHPUZSVZZLZYLJVNUPZLKPUWYV[VYSVZZ!
Impairment charge for the year (Note 11)
Depreciation of buildings
Additions
Disposals / deductions
;V[HSNHPUZSVZZLZYLJVNUPZLKPUWYV[VYSVZZ!
Impairment charge for the year (Note 11)
Depreciation of buildings
Bank
Group
Assets Measured at Level 3
Assets Measured at Level 3
Unquoted
Equity
Securities
Rs 000
Freehold
Land and
Buildings
Rs 000
Unquoted
Equity
Securities
Rs 000
Freehold
Land and
Buildings
Rs 000
76,556
308
-
3,175,522
134,858
(1,136)
76,612
308
-
6,123,391
148,318
(1,136)
(29,105)
47,759
10,687
-
(23,083)
3,286,161
218,972
-
(29,105)
47,815
10,687
-
(74,069)
6,196,504
241,936
-
(2,389)
56,057
(25,103)
3,480,030
(2,389)
56,113
(68,293)
6,370,147
415
416
1,019,257
2,460,773
10,940
Bank
Fair Value
as at 31st
December
2015
Rs 000
2,644,374
3,725,773
10,940
Group
Fair Value
as at 31st
December
2015
Rs 000
Income basis
Dividend growth model
=HS\H[PVU
Technique
Rs 48 - 97
Rs 48 - 113
0%
0% - 5%
5% - 6.2%
Expected market rental growth

Bank
Group
Discount rate
Bank / Group
Rs 2,529 - 8,475
Rs 150,000 - 8,985,450
BDT 1.59 - 1.75

(BDT = Bangladesh Taka)
4.41% - 4.64%
10.92%
>LPNO[LK(]LYHNL
Range of Estimates
for Unobservable
Inputs
Estimated price per sq.ft

Bank / Group
Estimated rental value per sq.ft
Bank
Group
Estimated price per perch

Bank / Group
Estimated future dividend

per share
Expected dividend growth rate
Discount rate
:PNUPJHU[
Unobservable
Inputs
:PNUPJHU[PUJYLHZLZKLJYLHZLZPUHU`VM[OLZLPUW\[ZPUPZVSH[PVU^V\SKYLZ\S[PUHZPNUPJHU[SÒPNOLYSV^LYMHPY]HS\L
:PNUPJHU[PUJYLHZLZKLJYLHZLZPU[OPZPUW\[PUPZVSH[PVU^V\SKYLZ\S[PUHZPNUPJHU[S`SV^LYOPNOLYMHPY]HS\L
- Freehold buildings

- Freehold land
Unquoted equity investment in

Type of Asset
**
*
*
*
*
*
*
**
-HPY=HS\L
Measurement
Sensitivity to
Unobservable
Inputs
52.5.2 Unobservable Inputs Used In Measuring Fair Value

;OL[HISLILSV^ZL[ZV\[PUMVYTH[PVUHIV\[ZPNUPJHU[\UVIZLY]HISLPUW\[Z\ZLKPUTLHZ\YPUNMHPY]HS\LVM[OLHZZL[ZJH[LNVYPZLK\UKLY3L]LSVM[OLMHPY]HS\LOPLYHYJO`
52.
52.6 Fair Value of Financial Assets and Liabilities Carried at Amortised Cost
;OLMVSSV^PUNKLZJYPILZ[OLTL[OVKVSVNPLZHUKHZZ\TW[PVUZ\ZLK[VKL[LYTPULMHPY]HS\LZVM[OVZLUHUJPHSPUZ[Y\TLU[ZÔPJOHYLUV[
already recorded at fair value in the Financial Statements.
Assets of which Fair Value Approximates Carrying Value

-VYUHUJPHSHZZL[ZHUKSPHIPSP[PLZ[OH[OH]LHZOVY[[LYTTH[\YP[`P[PZHZZ\TLK[OH[[OLJHYY`PUNHTV\U[ZHWWYV_PTH[L[OLPYMHPY]HS\LZ;OPZ
HZZ\TW[PVUPZHSZVHWWSPLK[VKLTHUKKLWVZP[ZHUKZH]PUNZKLWVZP[ZÔPJOKVUV[OH]LHZWLJPJTH[\YP[`
Fixed Rate Financial Instruments

;OLMHPY]HS\LVM_LKYH[LUHUJPHSHZZL[ZHUKSPHIPSP[PLZJHYYPLKH[HTVY[PZLKJVZ[HYLLZ[PTH[LKI`JVTWHYPUNTHYRL[PU[LYLZ[YH[LZÔLU
[OL`^LYLYZ[YLJVNUPZLK^P[OJ\YYLU[THYRL[YH[LZMVYZPTPSHYUHUJPHSPUZ[Y\TLU[Z;OLLZ[PTH[LKMHPY]HS\LVM_LKPU[LYLZ[ILHYPUN
KLWVZP[ZPZIHZLKVUKPZJV\U[LKJHZOV^Z\ZPUNWYL]HPSPUNTHYRL[PU[LYLZ[YH[LZMVYKLI[Z^P[OZPTPSHYJYLKP[YPZRHUKTH[\YP[`-VYX\V[LK
KLI[PZZ\LK[OLMHPY]HS\LZHYLKL[LYTPULKIHZLKVUX\V[LKTHYRL[WYPJLZ-VY]HYPHISLYH[LPUZ[Y\TLU[Z^P[OH_LKJYLKP[ZWYLHKHU
HKQ\Z[TLU[PZTHKL[VYLLJ[[OLJOHUNLPUJYLKP[ZWYLHKZPUJL[OLPUZ[Y\TLU[^HZYZ[YLJVNUPZLK
Variable Rate Financial Instruments

=HYPHISLYH[LPZHMHPYTLHZ\YLÔPJOYLLJ[ZTHYRL[TV]LTLU[Z/LUJL[OLJHYY`PUN]HS\LYLWYLZLU[Z[OLMHPY]HS\LVM[OL]HYPHISLYH[L
instruments.
417
418
1,650,881

- 57,243,238
- 268,685,795
1,650,881
Total
Rs 000
1,651,205
Value
Rs 000
Carrying

- 57,243,238 57,016,284
- 268,685,795 268,387,390
- 375,822,035 375,696,530
- 33,426,857 33,368,274
- 410,899,773 410,716,009
Level 3
Rs 000
Fair Value
Level 2
Rs 000
- 375,822,035
- 33,426,857
- 410,899,773
Level 1
Rs 000
Bank
1,650,881

- 65,412,377
- 277,814,111
1,650,881
Total
Rs 000
1,651,205
Value
Rs 000
Carrying

- 65,412,377 65,170,977
- 277,814,111 277,498,006
- 386,523,879 386,277,744
- 33,426,857 33,368,274
63,658
63,121
- 421,665,275 421,360,344
Level 3
Rs 000
Fair Value
Level 2
Rs 000
- 386,523,879
- 33,426,857
63,658
63,658 421,601,617
Level 1
Rs 000
Group
Liabilities
Due to banks
Savings, demand & margin deposits in Due to other customers
Dividend payable
6[OLYUHUJPHSSPHIPSP[PLZ
Assets

6[OLYUHUJPHSHZZL[Z
;OLMVSSV^PUN[HISLSPZ[Z[OVZLUHUJPHSPUZ[Y\TLU[ZMVYÔPJO[OLPYJHYY`PUNHTV\U[ZHYLHYLHZVUHISLHWWYV_PTH[PVUVMMHPY]HS\LZILJH\ZLMVYL_HTWSL[OL`HYLZOVY[[LYTPUUH[\YLVY
re-priced to current market rates frequently.
Financial liabilities
Due to other customers - Call,
_LK JLY[PJH[LVMKLWVZP[Z
Financial assets
other customers
Financial assets held to maturity
:L[V\[ILSV^PZHJVTWHYPZVUVM[OLJHYY`PUNHTV\U[ZHUKMHPY]HS\LZVM[OL)HURZUHUJPHSPUZ[Y\TLU[ZI`JSHZZLZ[OH[HYLUV[JHYYPLKH[MHPY]HS\LPU[OL-PUHUJPHS:[H[LTLU[Z;OPZ
[HISLKVLZUV[PUJS\KL[OLMHPY]HS\LZVMUVUUHUJPHSHZZL[ZHUKUVUUHUJPHSSPHIPSP[PLZ
52.
419
935,553
Level 2
Rs 000

- 37,145,149
- 217,179,345
- 303,464,668
- 24,154,084
980,148
980,148 328,554,305
Level 1
Rs 000
935,553
Total
Rs 000
934,976
Value
Rs 000
Carrying

- 37,145,149 36,335,599
- 217,179,345 218,302,908
- 303,464,668 301,434,602
- 24,154,084 24,026,116
980,148
980,165
- 329,534,453 327,375,859
Level 3
Rs 000
Fair Value
Bank
935,553
Level 2
Rs 000

- 44,420,365
- 224,234,926
- 312,701,484
- 24,154,084
984,818
984,818 337,791,121
Level 1
Rs 000
935,553
Total
Rs 000
934,976
Value
Rs 000
Carrying

- 44,420,365 43,610,816
- 224,234,926 225,354,323
- 312,701,484 309,569,370
- 24,154,084 24,026,116
984,818
984,363
- 338,775,939 335,514,825
Level 3
Rs 000
Fair Value
Group
Due to banks
Savings, demand & margin deposits in Due to other customers
Dividend payable
6[OLYUHUJPHSSPHIPSP[PLZ

6[OLYUHUJPHSHZZL[Z
;OLYL^LYLUVYLJSHZZPJH[PVUZK\YPUNHUK
5HFODVVLFDWLRQRI)LQDQFLDO$VVHWV /LDELOLWLHV
Liabilities
Assets
;OLMVSSV^PUN[HISLSPZ[Z[OVZLUHUJPHSPUZ[Y\TLU[ZMVYÔPJO[OLPYJHYY`PUNHTV\U[ZHYLHYLHZVUHISLHWWYV_PTH[PVUVMMHPY]HS\LZILJH\ZLMVYL_HTWSL[OL`HYLZOVY[[LYTPUUH[\YLVY
re-priced to current market rates frequently.
Financial liabilities
Due to other customers - Call,
_LK JLY[PJH[LVMKLWVZP[Z
Financial assets
other customers
Financial assets held to maturity
53. RISK MANAGEMENT

53.1 Introduction
9PZRPZPUOLYLU[PU[OL)HURZHJ[P]P[PLZI\[PZTHUHNLK[OYV\NOHWYVJLZZVMVUNVPUNPKLU[PJH[PVUTLHZ\YLTLU[HUKTVUP[VYPUNZ\IQLJ[[V
YPZRSPTP[ZHUKV[OLYJVU[YVSZ;OPZWYVJLZZVMYPZRTHUHNLTLU[PZJYP[PJHS[V[OL)HURZJVU[PU\V\ZWYV[HIPSP[`HUKLHJOPUKP]PK\HS^P[OPU[OL
Bank is accountable for the risk exposures relating to his or her responsibilities. The Bank is mainly exposed to;
Credit risk
Liquidity risk
Market risk
Operational risk
The Banks exposure to each of the above risks, its risk management objectives, policies and processes associated with measuring and
managing such risks with its strategy on capital management is detailed below.
Risk Management Framework
The Board of Directors has overall responsibility for the establishment and oversight of the Banks risk management framework. The Board
has delegated its authority to Board Integrated Risk Management Committee (BIRMC) which is responsible for developing and monitoring
Banks risk management policies. The Committee comprises of Executive and Non Executive Directors. Meetings of BIRMC are held
regularly and the Board of Directors are duly updated of its activities.
The Banks risk management policies are established to identify and analyse the risks faced by the Bank to set appropriate risk limits and
JVU[YVSZHUK[VTVUP[VYHKOLYLUJL[VLZ[HISPZOLKSPTP[Z9PZRTHUHNLTLU[WVSPJPLZHUKZ`Z[LTZHYLYL]PL^LKYLN\SHYS`[VYLLJ[JOHUNLZPU
market conditions, products and services offered. The Bank, through its training and management standards and procedures continuously
updates and maintains a disciplined and constructive control environment, in which all employees are assigned and made to understand
their respective roles and responsibilities.
Integrated Risk Management Unit
;OL)\ZPULZZ\UP[ZPL*YLKP[+LWHY[TLU[Z)YHUJOLZ9LNPVUHS6MJLZ;YLHZ\Y`L[JOH]LWYPTHY`YLZWVUZPIPSP[`MVY9PZR4HUHNLTLU[
;OL0U[LNYH[LK9PZR4HUHNLTLU[<UP[ÔPJOOHZUVYLZWVUZPIPSP[`MVYWYV[VY]VS\TL[HYNL[ZHJ[ZHZ[OLUKSPULVMKLMLUZLHUKYLWVY[Z[V
[OL.YV\W9PZR6MJLY.96ÔVPU[\YUKPYLJ[S`YLWVY[Z[V[OL)094*
Asset / Liability Management Committee (ALCO)
ALCO is chaired by the Managing Director and has representatives from Treasury Department, Credit Departments, Marketing Department,
-PUHUJL+LWHY[TLU[[OL.YV\W*OPLM-PUHUJPHS6MJLY*OPLM6WLYH[PUN6MJLYHUK[OL.YV\W9PZR6MJLY;OL*VTTP[[LLTLL[ZYLN\SHYS`
to monitor and manage the assets & liabilities of the Bank and also overall liquidity position to keep the Banks liquidity at healthy levels,
whilst satisfying regulatory requirements.
Risk Measurement and Reporting
The Banks risks are measured using appropriate techniques based on the type of risk and industry best practices. The Bank also carries
out Stress Testing to identify the effect of extreme events/worst case scenarios in most of the major types of risks and the results are
reported to Board Integrated Risk Management Committee on a periodic basis.
Monitoring and controlling of different types of risks is primarily performed based on policies, limits and thresholds established by the Bank.
;OLZLSPTP[ZYLLJ[[OLI\ZPULZZZ[YH[LN`HUKTHYRL[LU]PYVUTLU[VM[OL)HURHZ^LSSHZ[OLSL]LSVMYPZR[OH[[OL)HURPZ^PSSPUN[VHJJLW[
(Risk Appetite).
Risk Mitigation
As part of its overall risk management, the Bank obtains various types of collaterals to mitigate the risk. Details such as nature of the
JVSSH[LYHS[OH[JV\SKILHJJLW[LKYLX\PYLKZLJ\YP[`THYNPUL[JHYLJSLHYS`KLULKPU[OL*YLKP[7VSPJ`VM[OL)HURHUKHU`KL]PH[PVUZ[OH[
YLX\PYLZWLJPJHWWYV]HS/V^L]LYYLZWLJ[P]LHWWYV]PUNH\[OVYP[PLZ^V\SK[HRLPU[VHJJV\U[[OLH]HPSHIPSP[`VMZLJ\YP[`VUS`HZ[OLZLJVUKHY`
source of repayment.
420
53.2 Credit Risk

*YLKP[YPZRPZ[OLYPZRVMUHUJPHSSVZZ[V[OL)HURPMHIVYYV^LYVYJV\U[LYWHY[`[VHUHUJPHSPUZ[Y\TLU[MHPSZ[VTLL[P[ZJVU[YHJ[\HS
obligations, and arises principally from the Banks loans and advances to customers/other banks and investments in debt securities. In
addition to the credit risk from direct funding exposures, the Bank would also be exposed to indirect liabilities such as Letters of Credit,
guarantees etc, which would carry credit risk.
The Bank considers and consolidates all elements of credit risk exposure (such as individual obligor default risk, country and sector
concentration risks) to ensure stringent Credit Risk Management.
53.2.1 Impairment Assessment
The methodology of the impairment assessment has explained in the Note No 3.3.8 under Accounting Policies.
+LYP]H[P]L-PUHUJPHS0UZ[Y\TLU[Z
*YLKP[YPZRHYPZPUNMYVTKLYP]H[P]LUHUJPHSPUZ[Y\TLU[ZPZH[HU`[PTLSPTP[LK[V[OVZL^P[OWVZP[P]LMHPY]HS\LZHZYLJVYKLKPU[OL:[H[LTLU[
of Financial Position. With grosssettled derivatives, the Bank is also exposed to a settlement risk, being the risk that the Bank honours its
obligation, but the counterparty fails to deliver the counter value.
53.2.2 Creditrelated Commitments Risks
The Bank makes available to its customers guarantees that may require that the Bank makes payments on their behalf and enters into
commitments to extend credit lines to secure their liquidity needs. Letters of Credit and guarantees (including standby Letters of Credit)
JVTTP[[OL)HUR[VTHRLWH`TLU[ZVUILOHSMVMJ\Z[VTLYZPU[OLL]LU[VMHZWLJPJHJ[NLULYHSS`YLSH[LK[V[OLPTWVY[VYL_WVY[VMNVVKZ
Such commitments expose the Bank to risks similar to loans and are mitigated by the same control processes and policies.
53.2.3 Collateral and Other Credit Enhancements
H5L[L_WVZ\YL[VJYLKP[YPZR
The amount and type of collateral required depends on an assessment of the credit risk of the counterparty. Guidelines are in place covering
the acceptability and valuation of each type of collateral. The main types of collateral obtained are as follows:
For commercial lending : charges over real estate properties, inventory and trade receivables
For retail lending : mortgages over residential properties
The Bank also obtains guarantees from parent companies for loans to their subsidiaries.
Management monitors the market value of collateral and will request additional collateral in accordance with the underlying agreement. It
is the Banks policy to dispose repossessed properties in an orderly manner. The proceeds are used to recover the outstanding claim. In
general, the Bank does not occupy repossessed properties for business use.
421
53. RISK MANAGEMENT CONTD.

53.2.3 Collateral and Other Credit Enhancements Contd.
The following tables show the maximum exposure and net exposure (Net of fair value of any collaterals held) to credit risk by class of
UHUJPHSHZZL[
As at 31st December
2015
Note
Bank
Financial Assets
Other assets
Total
19
21

23
24
25
26
27
28
29
30
As at 31st December
Financial Assets
Other assets
Total
Maximum
Exposure to
Credit Risk
Rs 000
Net
Exposure
Net
Exposure
Rs 000
Maximum
Exposure to
Credit Risk
Rs 000
13,588,075
5,193,369

1,889,058
2,702,785
1,651,205
375,696,530
33,368,274
51,250,411
7,210,585
1,964,787
494,834,540
4,633,922
5,193,369

1,889,058
2,702,785
1,345,728
182,191,627
28,272,762
51,250,411
7,210,585
1,964,787
286,974,495
11,556,620
1,791,698
31,285,348

17,024,253
13,205,359
934,976
301,434,602
24,026,116
1,581,622
980,165
1,157,226
405,155,209
3,383,870
1,791,698

17,024,253
13,205,359
500,645
147,874,168
20,079,026
1,581,622
980,165
1,157,226
207,755,256
2015
Note
Group
2014
19
21

23
24
25
26
27
28
29
30
Rs 000
2014
Maximum
Exposure to
Credit Risk
Rs 000
Net
Exposure
Net
Exposure
Rs 000
Maximum
Exposure to
Credit Risk
Rs 000
13,713,456
5,193,369

1,898,074
2,693,769
1,651,205
386,277,744
33,368,274
51,941,479
6,519,573
63,121
2,099,327
505,738,852
4,676,417
5,193,369

1,898,074
2,693,769
1,345,728
183,395,985
28,272,762
51,941,479
6,519,573
63,121
2,099,327
288,419,065
11,645,326
1,791,698
31,285,348

17,024,253
13,205,359
934,976
309,569,370
24,026,116
1,581,678
984,363
1,372,780
413,598,491
3,460,041
1,791,698

17,024,253
13,205,359
500,645
148,172,996
20,079,026
1,581,678
984,363
1,372,780
208,350,063
Rs 000
I6MMZL[[PUNUHUJPHSHZZL[Z SPHIPSP[PLZ
-PUHUJPHSHZZL[ZHUKUHUJPHSSPHIPSP[PLZHYLVMMZL[HUK[OLUL[HTV\U[PZWYLZLU[LKPU[OLZ[H[LTLU[VM-PUHUJPHS7VZP[PVUÔLU[OL.YV\W
has a legal right to set off the recognised amounts and it intends either to settle on a net basis or to realise the asset and settle the liability
simultaneously.
422
J-PUHUJPHSHZZL[Z SPHIPSP[PLZUV[Z\IQLJ[[VVMMZL[[PUN
Amounts that do not qualify for offsetting include netting arrangements that only permit outstanding transactions with the same
counterparty to be offset in an event of default or occurrence of other predetermined events. Such netting arrangements include repurchase
arrangements and other similar secured lending and borrowing arrangements.
;OLHTV\U[VM[OLUHUJPHSJVSSH[LYHSYLJLP]LKVYWSLKNLKZ\IQLJ[[VUL[[PUNHYYHUNLTLU[ZI\[UV[X\HSPLKMVYVMMZL[[PUNHYLKPZJSVZLK
below.
Bank
As at 31st December
2015
Gross
Amount
Financial Assets
other customers
2014
Net
Amount
Gross
Amount
Rs 000
Amount
Subject to
Netting but
do Not
Qualify for
Offsetting
Rs 000
Gross
Amount
Rs 000
Amount
Subject to
Netting but
do Not
Qualify for
Offsetting
Rs 000
Rs 000
36,503,175
24,780,279
11,722,896
28,653,915
22,071,315
6,582,600
9,316,122
9,316,122
13,001,462
13,001,462
Rs 000
Group
As at 31st December
2015
Gross
Amount
Financial Assets
other customers
2014
Net
Amount
Gross
Amount
Rs 000
Amount
Subject to
Netting but
do Not
Qualify for
Offsetting
Rs 000
Gross
Amount
Rs 000
Amount
Subject to
Netting but
do Not
Qualify for
Offsetting
Rs 000
Rs 000
36,503,175
24,780,279
11,722,896
28,653,915
22,071,315
6,582,600
8,662,930
8,662,930
12,500,414
12,500,414
Rs 000
53.2.4 Credit Quality by Class of Financial Assets

;OL)HURTHUHNLZ[OLJYLKP[X\HSP[`VMUHUJPHSHZZL[Z\ZPUNPU[LYUHSJYLKP[YH[PUNZ;OL[HISLZILSV^ZOV^[OLJYLKP[X\HSP[Ì`[OLJSHZZVM
HZZL[MVYHSSUHUJPHSHZZL[ZL_WVZLK[VJYLKP[YPZR;OLHTV\U[ZWYLZLU[LKHYLNYVZZVMPTWHPYTLU[HSSV^HUJLZ
423
424
Bank - as at 31st December 2015
96,256
92,575,464
7,210,585
823,805
275,701,544
1,651,190
87,961,960
1,597,865
2,702,785
141,467,937
31,267,917
49,976,743
1,217,611
-
40,744
1,218,854

-
Rs 000
Rs 000
13,547,331
21,341,882
3,974,515

1,883,778
Standard
Grade
3,224,972
3,224,972
-

-
Sub
Standard
Grade
Rs 000
Neither Past Due nor Impaired

High
Grade
27,255
21,236,495
20,677,257
502,492

5,280
Rs 000
Unrated

1
76,160,901
Less than
30 Days
Rs 000
(NLHUHS`ZPZVMWHZ[K\LPLMHJPSP[PLZPUHYYLHYZVMKH`HUKHIV]LI\[UV[PTWHPYLKSVHUZI`JSHZZVMUHUJPHSHZZL[Z

Other assets
Total

Financial Assets
(a)
+LUP[PVUVM7HZ[+\L
The Bank considers that any amount uncollected one day or more beyond their contractual due date as past due.
100,354,461
15
100,354,446
-

-
Rs 000
but Not
Impaired
Past Due
4,962,281
14
15,365,168
31 to 60
Days
Rs 000
4,537,691
61 to 90
Days
Rs 000
42,434
4,919,097
750

-
Rs 000
Impaired
Individually
4,290,686
More than
90 Days
Rs 000
Past Due but Not Impaired
1,017,471
25,150,739
45,117
24,088,151
-

-
Exposures
Not Subject
to Ratings
Rs 000
15
100,354,446
Rs 000
Total
1,964,787
523,205,956
7,210,585
49,976,743
1,217,611
87,551
2,702,785
1,651,205
382,693,820
33,369,024
13,588,075
21,341,882
5,193,369

1,889,058
Rs 000
Total
425
37,552
60,704,481
980,165
155,267
234,965,885
58,323,436
1,210,102
13,205,359
934,976
117,178,118
22,816,014
1,533,863
-
10,219
1,080,607

41,626
Rs 000
Rs 000
11,546,401
17,607,251
711,091
31,240,340

16,926,141
Standard
Grade
High
Grade
1,717,964
1,717,964
-

-
Sub
Standard
Grade
Rs 000
44,539
18,033,425
17,842,006
-
45,008

56,486
Rs 000
Unrated
51,847,129
Less than
30 Days
Rs 000

Other assets
Total

Financial Assets
(b)
77,149,240
77,149,240
-

-
Rs 000
but Not
Impaired
4,855,152
15,510,887
31 to 60
Days
Rs 000
4,866,341
61 to 90
Days
Rs 000
38,238
4,816,164
750

-
Rs 000
Impaired
Individually
4,924,883
More than
90 Days
Rs 000
919,868
32,373,747
38,626
31,415,253
-

-
Exposures
Not Subject
to Ratings
Rs 000
Past Due
77,149,240
Rs 000
Total
980,165
1,157,226
429,799,894
1,533,863
76,864
13,205,359
934,976
308,442,181
24,026,866
11,556,620
17,607,251
1,791,698
31,285,348

17,024,253
Rs 000
Total
426
Group - as at 31st December 2015
96,256
92,575,464
6,519,573
63,121
823,805
272,914,725
1,651,190
87,961,960
1,597,865
2,693,769
138,492,626
31,267,917
50,667,755
1,217,611
-
40,744
1,218,854

-
Rs 000
Rs 000
13,672,702
21,341,882
3,974,515

1,892,794
Standard
Grade
3,224,972
3,224,972
-

-
Sub
Standard
Grade
Rs 000

High
Grade
70,051
29,795,810
29,193,766
502,492
10

5,280
Rs 000
Unrated

Other assets
1
78,717,526
10,706
Less than
30 Days
Rs 000

Other assets
Total

Financial Assets
(c)
141,412
105,255,487
15
105,114,060
-

-
Rs 000
but Not
Impaired
Past Due
109,492
5,659,495
14
16,619,800
65,213
31 to 60
Days
Rs 000
5,116,331
50,280
61 to 90
Days
Rs 000
42,434
5,506,819
750

-
Rs 000
Impaired
Individually
4,660,403
15,213
More than
90 Days
Rs 000
911,609
25,116,800
45,173
24,160,018
-

-
Exposures
Not Subject
to Ratings
Rs 000
15
105,114,060
141,412
Rs 000
Total
63,121
2,152,625
534,542,753
6,519,573
50,667,755
1,217,611
87,607
2,693,769
1,651,205
393,654,221
33,369,024
13,713,456
21,341,882
5,193,369

1,898,074
Rs 000
Total
427
37,552
60,704,481
984,363
155,267
233,540,222
58,323,436
1,210,102
13,205,359
934,976
115,659,561
22,816,014
1,533,863
-
10,219
1,080,607

41,626
Rs 000
Rs 000
11,635,097
17,607,251
711,091
31,240,340

16,926,141
Standard
Grade
High
Grade
1,717,964
1,717,964
-

-
Sub
Standard
Grade
Rs 000
45,172
23,858,090
23,666,028
-
10
45,008

56,486
Rs 000
Unrated

Other assets
53,750,445
13,810
Less than
30 Days
Rs 000

Other assets
Total

Financial Assets
(d)
171,499
81,304,130
81,132,631
-

-
Rs 000
but Not
Impaired
97,395
5,124,277
16,420,601
76,490
31 to 60
Days
Rs 000
5,428,159
50,125
61 to 90
Days
Rs 000
38,238
4,987,894
750

-
Rs 000
Impaired
Individually
5,533,426
31,074
More than
90 Days
Rs 000
919,868
32,373,803
38,682
31,415,253
-

-
Exposures
Not Subject
to Ratings
Rs 000
Past Due
81,132,631
171,499
Rs 000
Total
984,363
1,426,753
438,622,967
1,533,863
76,920
13,205,359
934,976
316,902,767
24,026,866
11,645,326
17,607,251
1,791,698
31,285,348

17,024,253
Rs 000
Total

53.2.5 Credit Risk Exposure for Each Internal Credit Risk Rating
It is the Banks policy to maintain accurate and consistent risk ratings across the credit portfolio. This facilitates focused management of the
applicable risks and the comparison of credit exposures across all lines of business, geographic regions and products. The rating system
is supported by a variety of qualitative as well as quantitative variables for the measurement of counterparty risk. All internal risk ratings are
tailored to various categories and are derived in accordance with the Banks Rating Policy. The risk ratings of the business borrowers are
updated at least annually or earlier if required. The table below shows the Banks internal credit rating of the loans to & receivables from
banks and loans to & receivables from other customers.
Banks Internal Credit Rating
Bank
Rating
Fitch
Rating
As at 31st December
Historical
Default
Rate
2015
%
Total
2015
Rs 000
Historical
Default
Rate
2014
%
Total
2014
Rs 000
High Grade
Risk Rating Class 1
Risk Rating Class 2
Risk Rating Class 3
Risk Rating Class 4
A+
A
AB+
AAA to AA+
AA to AAA+ to A
A- to BBB+
0.27
0.37
0.46
0.63
13,995,620
45,917,402
59,070,618
60,344,556
0.35
0.40
0.40
1.74
16,695,671
30,099,352
47,112,538
49,365,928
Standard Grade
Risk Rating Class 5
Risk Rating Class 6
Risk Rating Class 7
B
BC+
BBB to BBBBB+ to BB
BB- to B+
0.72
0.99
1.13
72,681,236
39,916,564
24,741,902
1.09
1.78
2.57
49,599,355
25,996,086
20,290,568
Sub Standard Grade

Risk Rating Class 8
Risk Rating Class 9
C
C-
B to BCCC to CC
1.90
0.90
4,054,666
1,606,637
1.49
2.17
3,512,971
2,324,494
0.71
31,261,353
1.41
25,279,238
3.45
3,883,160
2.31
3,457,368
Unrated
Impaired
Risk Rating Class 10
Exposures Not Subject to Ratings
Pawning
Others
Total
C to D
13,471,959
13,399,352
384,345,025
24,588,444
11,055,144
309,377,157
53.2.6 Analysis of Risk Concentration

Risk concentrations: maximum exposure to credit risk without taking account of any collateral and other credit enhancements .
The Concentration risk is monitored/managed through borrower/group, sector, product etc. Maximum exposure of both funded and non
funded facilities to a company and a group as at the reporting date was Rs 6,217 Mn and Rs 10,974 Mn respectively. The following tables
show the maximum exposure to credit risk for the components of the Statement of Financial Position, including geography of counterparty
and sector.
428
429
11,945,903
21,341,882

1,889,058
2,702,785
1,651,205
372,538,253
33,368,274
50,021,859
7,210,585
1,806,760
504,759,562
Sri Lanka

Rs 000
229,852
3,110,333

27,255
3,401,316
Europe

Rs 000
Central
Eastern
North Central
North Western
Northern
Sabaragamuwa
Southern
Uva
Western
Total
Province
19,987,109
6,249,030
9,693,926
14,915,648
5,566,651
7,492,794
17,630,812
6,608,062
284,394,221
372,538,253
Rs 000
7YV]PUJPHSIYLHRKVÛMVYSVHUZ[V YLJLP]HISLZMYVTV[OLYJ\Z[VTLYZ^P[OPU:YP3HURH
Financial Assets
Loans to & receivables from other customers **
Other assets
Total
*V\U[Y`9PZR.LVNYHWOPJHS(UHS`ZPZ
(a)
943,234
747,297

441,518
96,256
2,228,305
America

Rs 000
148,283

2,460,432
1,228,552
33,600
3,872,268
South Asia

Rs 000
304,499
1,335,739

912
1,642,318
Asia
7HJPJ
Rs 000
16,304

256,327
4
272,653
Middle East
(MYPJH
Rs 000
13,588,075
21,341,882
5,193,369

1,889,058
2,702,785
1,651,205
375,696,530
33,368,274
51,250,411
7,210,585
1,964,787
516,176,422
Rs 000
Total
430
10,244,172
17,607,251
31,285,348

17,024,253
13,205,359
934,976
298,356,229
24,026,116
38,626
980,165
920,301
414,789,826
Sri Lanka

Rs 000
899,166

94,915
35,369
1,036,098
Europe

Rs 000
Central
Eastern
North Central
North Western
Northern
Sabaragamuwa
Southern
Uva
Western
Total
Province
13,410,832
4,775,115
7,596,532
12,197,934
4,429,587
6,262,100
14,015,577
5,029,285
230,639,267
298,356,229
Rs 000
Financial Assets
Other assets
Total
(b)
39,303
597,847

462,022
37,550
1,138,559
America

Rs 000
40,076

2,188,601
1,542,996
154,683
3,926,356
South Asia

Rs 000
326,222
1,193,851

12,967
136
1,534,885
Asia
7HJPJ
Rs 000
7,681

319,868
9,187
336,736
Middle East
(MYPJH
Rs 000
11,556,620
17,607,251
1,791,698
31,285,348

17,024,253
13,205,359
934,976
301,434,602
24,026,116
1,581,622
980,165
1,157,226
422,762,460
Rs 000
Total
431
12,071,284
21,341,882

1,898,074
2,693,769
1,651,205
383,119,467
33,368,274
50,712,927
6,519,573
63,121
1,941,300
515,663,874
Sri Lanka

Rs 000
229,852
3,110,333

27,255
3,401,316
Europe

Rs 000
Central
Eastern
North Central
North Western
Northern
Sabaragamuwa
Southern
Uva
Western
Total
Province
21,662,872
7,228,440
10,165,610
16,481,262
5,617,883
8,179,753
18,474,948
7,015,061
288,293,638
383,119,467
Rs 000
Financial Assets
Other assets
Total
(c)
943,234
747,297

441,518
96,256
2,228,305
America

Rs 000
148,283

2,460,432
1,228,552
33,600
3,872,268
South Asia

Rs 000
304,499
1,335,739

912
1,642,318
Asia
7HJPJ
Rs 000
16,304

256,327
4
272,653
Middle East
(MYPJH
Rs 000
13,713,456
21,341,882
5,193,369

1,898,074
2,693,769
1,651,205
386,277,744
33,368,274
51,941,479
6,519,573
63,121
2,099,327
527,080,734
Rs 000
Total
432
10,332,878
17,607,251
31,285,348

17,024,253
13,205,359
934,976
306,490,997
24,026,116
38,682
984,363
1,135,855
423,233,108
Sri Lanka

Rs 000
899,166

94,915
35,369
1,036,098
Europe

Rs 000
Central
Eastern
North Central
North Western
Northern
Sabaragamuwa
Southern
Uva
Western
Total
Province
14,661,573
5,437,742
7,910,020
13,201,191
4,435,785
6,592,222
14,476,620
5,124,525
234,651,319
306,490,997
Rs 000
Financial Assets
Other assets
Total
(d)
39,303
597,847

462,022
37,550
1,138,559
America

Rs 000
40,076

2,188,601
1,542,996
154,683
3,926,356
South Asia

Rs 000
326,222
1,193,851

12,967
136
1,534,885
Asia
7HJPJ
Rs 000
7,681

319,868
9,187
336,736
Middle East
(MYPJH
Rs 000
11,645,326
17,607,251
1,791,698
31,285,348

17,024,253
13,205,359
934,976
309,569,370
24,026,116
1,581,678
984,363
1,372,780
431,205,742
Rs 000
Total
433

-
55,109,060
509,893
-
55,618,953
37,964,426
78,146
38,042,572
Rs 000

Rs 000
Agriculture Manufacturing
and Related
Financial Assets
Quoted equities
Other equity securities
Other assets
Total
(a)
23,615,591
23,615,591
-

Rs 000
Tourism
9,227,359
9,227,359
-

Rs 000
Transport
52,080,200
51,264,072
816,128

Rs 000
Construction
94,526,599
92,803,866
1,694,617
5,280

Rs 000
Traders
1,084
53,669,860
1,228,552
1,651,205
26,911,127
7,613,845
116,461
10,657,592
5,193,369

Banks,
Financial
and
Business
Services
Rs 000
0UK\Z[Y`(UHS`ZPZ
The following tables show the risk concentration by industry for the components of the Statement of Financial Position
7,210,585
109,063,701
49,976,743
-
2,702,785
490,923
22,642,983
1,767,317
-
2,930,483
21,341,882

Rs 000
13,235,134
13,235,134
-

Rs 000
Government Infrastructure
1,963,703
17,291,996
45,116
15,270,515
12,662

Rs 000
Other
Services
49,804,457
49,804,457
-

Rs 000
Consumers
7,210,585
1,964,787
516,176,422
49,976,743
1,273,668
2,702,785
1,651,205
375,696,530
33,368,274
1,767,317
121,741
13,588,075
21,341,882
5,193,369

Rs 000
Total
434

56,486
43,815,396
502,581
-
44,374,463
35,491,240
78,146
35,569,386
Rs 000

Rs 000
and Related
Financial Assets
Quoted equities
Other assets
Total
(b)

18,336,405
18,336,405
-

Rs 000
Tourism
5,456,299
5,456,299
-

Rs 000
Transport
33,056,175
33,056,175
-

Rs 000
Construction
74,520,613
73,205,957
1,020,039
266,772

Rs 000
Traders
141,570
41,211,412
1,542,996
934,976
19,912,352
4,767,738
369,075
11,556,620
1,791,698
45,008

Banks,
Financial
and
Business
Services
Rs 000
980,165
97,276,351
13,205,359
266,366
17,644,950
16,331,920
-
17,607,251
31,240,340

Rs 000
13,702,188
13,702,188
-

Rs 000
1,015,656
10,805,337
38,626
9,738,393
12,662

Rs 000
Other
Services
48,453,831
48,453,831
-

Rs 000
Consumers
980,165
1,157,226
422,762,460
1,581,622
13,205,359
934,976
301,434,602
24,026,116
16,331,920
692,333
11,556,620
17,607,251
1,791,698
31,285,348

Rs 000
Total
435

-
55,668,366
509,893
-
56,178,259
38,654,097
78,146
38,732,243
Rs 000

Rs 000
and Related
Financial Assets
Quoted equities
Other assets
Total
(c)
23,734,749
23,734,749
-

Rs 000
Tourism
9,463,003
9,463,003
-

Rs 000
Transport
52,411,980
51,595,852
816,128

Rs 000
Construction
96,479,793
94,757,060
1,694,617
5,280

Rs 000
Traders
69,426
51,030,894
1,228,552
1,651,205
24,078,438
7,613,845
116,461
10,782,973
5,193,369

Banks,
Financial
and
Business
Services
Rs 000
6,519,573
63,121
109,126,878
50,667,811
-
2,693,769
490,923
22,642,983
1,776,333
-
2,930,483
21,341,882

Rs 000
13,235,134
13,235,134
-

Rs 000
1,803,374
26,656,817
45,116
24,795,665
12,662

Rs 000
Other
Services
226,527
50,030,984
49,804,457
-

Rs 000
Consumers
6,519,573
63,121
2,099,327
527,080,734
50,667,811
1,273,668
2,693,769
1,651,205
386,277,744
33,368,274
1,776,333
121,741
13,713,456
21,341,882
5,193,369

Rs 000
Total
436

56,486
44,453,202
502,581
-
45,012,269
36,114,274
78,146
36,192,420
Rs 000

Rs 000
and Related
Financial Assets
Quoted equities
Other assets
Total
(d)

18,336,405
18,336,405
-

Rs 000
Tourism
5,673,305
5,673,305
-

Rs 000
Transport
33,370,285
33,370,285
-

Rs 000
Construction
76,387,619
75,072,963
1,020,039
266,772

Rs 000
Traders
203,349
40,004,018
1,543,053
934,976
18,554,416
4,767,738
369,075
11,645,326
1,791,698
45,008

Banks,
Financial
and
Business
Services
Rs 000
984,363
97,280,549
13,205,359
266,366
17,644,950
16,331,920
-
17,607,251
31,240,340

Rs 000
13,702,186
13,702,186
-

Rs 000
932,713
16,556,137
38,625
15,572,137
12,662

Rs 000
Other
Services
236,718
48,690,549
48,453,831
-

Rs 000
Consumers
984,363
1,372,780
431,205,742
1,581,678
13,205,359
934,976
309,569,370
24,026,116
16,331,920
692,333
11,645,326
17,607,251
1,791,698
31,285,348

Rs 000
Total
53.2.7 Commitments and Contingencies

;VTLL[[OLUHUJPHSULLKZVMJ\Z[VTLYZ[OL)HURLU[LYZPU[V]HYPV\ZJVTTP[TLU[ZHUKJVU[PUNLU[SPHIPSP[PLZ,]LU[OV\NO[OLZL
obligations may not be recognised in the Statement of Financial Position, they do contain credit risk and are, therefore, part of the overall
risk of the Bank.
;OLTH_PT\TL_WVZ\YL[VJYLKP[YPZRYLSH[PUN[VHUHUJPHSN\HYHU[LLPZ[OLTH_PT\THTV\U[[OL)HURZOV\SKOH]L[VWH`PM[OLN\HYHU[LL
is called upon. The maximum exposure to credit risk relating to a loan commitment is the full amount of the commitment. In both cases, the
TH_PT\TYPZRL_WVZ\YLPZZPNUPJHU[S`NYLH[LY[OHU[OLHTV\U[YLJVNUPZLKHZHSPHIPSP[`PU[OL:[H[LTLU[VM-PUHUJPHS7VZP[PVU;OL)HURZ
maximum credit risk exposure for commitments and contingencies are disclosed in the Note no 47.1.
53.3 Liquidity Risk and Funding Management

3PX\PKP[`YPZRPZ[OLYPZR[OH[[OL)HUR^PSSLUJV\U[LYKPMJ\S[PLZPUTLL[PUNP[ZUHUJPHSJVTTP[TLU[Z[OH[HYLZL[[SLKI`KLSP]LYPUNJHZOVY
HUV[OLYUHUJPHSHZZL[/LUJL[OL)HURTHÌL\UHISL[VTLL[P[ZWH`TLU[VISPNH[PVUZÔLU[OL`MHSSK\L\UKLYIV[OUVYTHSHUKZ[YLZZ
JPYJ\TZ[HUJLZ;VSPTP[[OPZYPZRTHUHNLTLU[OHZHYYHUNLKKP]LYZPLKM\UKPUNZV\YJLZPUHKKP[PVU[VP[ZJVYLKLWVZP[IHZLHUKHKVW[LKH
WVSPJ`VMJVU[PU\V\ZS`THUHNPUNHZZL[Z^P[OSPX\PKP[`PUTPUKHUKVMTVUP[VYPUNM\[\YLJHZOV^ZHUKSPX\PKP[`VUHKHPSÌHZPZ;OL)HUROHZ
developed internal control processes and contingency plans for managing liquidity risk. This incorporates an assessment of expected cash
V^ZHUK[OLH]HPSHIPSP[`VMOPNONYHKLJVSSH[LYHSÔPJOJV\SKIL\ZLK[VZLJ\YLHKKP[PVUHSM\UKPUNPMYLX\PYLK
The Bank maintains a portfolio of highly marketable and diverse assets assumed to be easily liquidated in the event of an unforeseen
PU[LYY\W[PVUVML_WLJ[LKJHZOV^;OL)HURHSZVOHZJVTTP[[LKSPULZVMJYLKP[[OH[JV\SKIL\[PSPaLK[VTLL[SPX\PKP[ÙLLKZ-\Y[OLY[OL
Bank maintained a statutory deposit with the Central Bank of Sri Lanka equal to 6% of customer deposits. In accordance with the Banks
policy, the liquidity position is assessed and managed under a variety of scenarios, giving due consideration to stress factors relating to
IV[O[OLTHYRL[PUNLULYHSHUKZWLJPJ[V[OL)HUR;OLTVZ[PTWVY[HU[VM[OPZPZ[VTHPU[HPU[OLYLX\PYLKYH[PVVMSPX\PKHZZL[Z[VSPHIPSP[PLZ
to meet the regulatory requirement (20%). Liquid assets consist of cash, shortterm bank deposits and liquid debt securities available for
immediate sale. Further the Statutory Liquid Assets Ratio of the Bank for the month of December 2015 is as follows.
53.3.1 Statutory Liquid Assets Ratio (SLAR)
For the month of December 2015 : 22.05% ( 2014 : 24.54% )
53.3.2 Loans to & receivables from banks and other customers (Advances) to Due to banks and other customers (Deposits) Ratio
The Bank is aware of the importance of due to banks & other customers as a source of funds for its lending operations.
This is monitored using the following ratio, which compares loans to & receivables from banks and other customers (Advances) as a
percentage of due to banks & due to other customers (Deposits).
Loans to & receivables from banks and other customers (Advances) to Due to banks and other customers (Deposits) Ratio
As at 31st December 2015 : 93.89% ( 2014 : 90.48% )
437

53.3.3 Analysis of Financial Assets and Liabilities by Remaining Contractual Maturities
;OL[HISLZILSV^Z\TTHYPZL[OLTH[\YP[`WYVSLVM[OL\UKPZJV\U[LKJHZOV^ZVM[OL)HURZUHUJPHSHZZL[ZHUKUHUJPHSSPHIPSP[PLZHZH[
Z[+LJLTILY9LWH`TLU[ZÔPJOHYLZ\IQLJ[[VUV[PJLHYL[YLH[LKHZPMUV[PJL^LYL[VILNP]LUPTTLKPH[LS`/V^L]LY[OL)HUR
L_WLJ[Z[OH[THU`J\Z[VTLYZ^PSSUV[YLX\LZ[YLWH`TLU[VU[OLLHYSPLZ[KH[LP[JV\SKILYLX\PYLK[VWH`HUK[OL[HISLZKVUV[YLLJ[[OL
L_WLJ[LKJHZOV^ZPUKPJH[LKI`P[ZKLWVZP[YL[LU[PVUOPZ[VY`
Contractual Maturities of Undiscounted Cash Flows of Financial Assets and Financial Liabilities
(a)
Financial Assets
other customers
Other assets
Up to 3
Months
Rs 000
3 - 12
Months
Rs 000
1-3
Years
Rs 000
3-5
Years
Rs 000
Over 5
Years
Rs 000
Total
Rs 000
13,588,075
14,885,289
3,974,566

1,889,058
5,127,411
1,228,966

-
556,303

-
445,854

-
327,025

-
13,588,075
21,341,882
5,203,532

1,889,058
2,702,785
262,742
414,058
812,204
447,918
2,702,785
1,936,922
149,519,859
5,002,111
51,250,411
72,870,391
4,067,153
-
94,557,772
22,371,438
-
48,371,124
5,567,624
-
38,088,688
20,685
-
403,407,834
37,029,011
51,250,411
7,210,585
741,515
251,204,965
679,128
84,528,599
44,562
118,342,279
43,487
54,876,007
509,914
38,946,312
7,210,585
2,018,606
547,898,162
Due to banks
Dividend payable
Other liabilities
2,918,371

520,942

3,439,313

8,834,839
283,689,067
19,047,924
90,969
2,331,761
317,092,913
531,967
100,047,099
7,707,129
2,051,568
111,135,781
11,149,194
19,170,343
211,095
30,530,632
8,437,783
17,951,498
26,389,281
5,683,617
4,702,562
199,786
10,585,965
9,366,806
409,006,760
68,579,456
90,969
4,794,210
495,734,572
Total Net Financial Assets /

(Liabilities)
(65,887,948)
(26,607,182)
87,811,647
28,486,726
28,360,347
52,163,590
438
(b)
Financial Assets
other customers
Other assets
Up to 3
Months
Rs 000
3 - 12
Months
Rs 000
1-3
Years
Rs 000
3-5
Years
Rs 000
Over 5
Years
Rs 000
Total
Rs 000
11,561,165
13,082,910
711,124
31,439,466

17,024,253
4,190,992
1,091,211

-
195,905

-
136,280

-
1,164

-
11,561,165
17,607,251
1,802,335
31,439,466

17,024,253
13,205,359
64,785
311,400
498,050
216,426
13,205,359
1,090,661
156,545,212
2,257,947
1,581,622
67,768,758
4,912,877
-
62,512,861
15,992,750
-
33,030,996
3,950,133
-
24,318,048
51,239
-
344,175,875
27,164,946
1,581,622
611,158
248,166,609
1,000,000
328,801
79,699,655
38,660
79,238,226
41,815
37,375,650
198,154
24,568,605
1,000,000
1,218,588
469,048,745

2,486,747

Due to banks
Dividend payable
Other liabilities
11,874,374
252,459,316
7,395,879
79,284
1,402,391
275,730,671
1,178,269
85,048,491
4,010,045
2,203,932
92,460,236
4,082,469
13,641,124
26,757
17,750,350
3,413,749
15,800,890
19,214,639
36,786
5,559,765
163,569
5,760,120
13,052,643
345,040,811
46,407,703
79,284
3,796,649
410,916,016

(Liabilities)
(27,564,062)
(12,760,581)
61,487,876
18,161,011
18,808,485
58,132,729
2,486,747

439

(c)
Financial Assets
other customers
Other assets
Up to 3
Months
Rs 000
3 - 12
Months
Rs 000
1-3
Years
Rs 000
3-5
Years
Rs 000
Over 5
Years
Rs 000
Total
Rs 000
13,713,456
14,885,289
3,974,566

1,898,074
5,127,411
1,228,966

-
556,303

-
445,854

-
327,025

-
13,713,456
21,341,882
5,203,532

1,898,074
2,693,769
262,742
414,058
812,204
447,918
2,693,769
1,936,922
152,703,049
5,002,111
51,941,479
75,791,847
4,067,153
-
99,817,251
22,371,438
-
50,310,584
5,567,624
-
38,183,627
20,685
-
416,806,358
37,029,011
51,941,479
6,519,573
2,400
835,770
254,610,247
56,447
627,522
87,454,896
67,274
123,624,470
73,739
56,845,719
4,274
699,475
39,235,086
6,519,573
63,121
2,303,780
561,770,418
Due to banks
Dividend payable
Other liabilities
2,918,371

520,942

3,439,313

8,226,745
283,474,695
20,991,599
90,969
2,898,177
318,780,538
478,897
101,095,042
9,495,273
2,051,568
113,918,798
11,219,297
22,653,909
211,097
34,084,303
8,442,873
20,119,532
28,562,405
5,683,617
4,702,562
247,436
10,633,615
8,705,642
409,915,524
77,962,875
90,969
5,408,278
505,979,659

(Liabilities)
(64,170,291)
(26,463,902)
89,540,167
28,283,314
28,601,471
55,790,759
440
(d)
Financial Assets
other customers
Other assets
Up to 3
Months
Rs 000
3 - 12
Months
Rs 000
1-3
Years
Rs 000
3-5
Years
Rs 000
Over 5
Years
Rs 000
Total
Rs 000
11,649,873
13,082,910
711,124
31,439,466

17,024,253
4,190,992
1,091,211

-
195,905

-
136,280

-
1,164

-
11,649,873
17,607,251
1,802,335
31,439,466

17,024,253
13,205,359
64,785
311,400
498,050
216,426
13,205,359
1,090,661
157,996,520
2,257,947
1,581,678
69,712,100
4,912,877
-
66,006,397
15,992,750
-
34,248,090
3,950,133
-
24,347,538
51,239
-
352,310,645
27,164,946
1,581,678
586,529
249,682,052
1,000,000
593,931
81,908,127
70,524
82,763,626
47,697
38,598,626
4,198
135,462
24,539,601
1,004,198
1,434,143
477,492,032

2,508,869

Due to banks
Dividend payable
Other liabilities
11,382,289
252,168,898
8,823,228
79,284
1,418,064
276,413,312
1,169,310
85,048,491
5,537,577
2,203,932
93,978,809
4,082,469
16,114,197
26,757
20,223,423
3,413,749
17,648,153
21,061,902
36,786
5,559,765
171,872
5,768,423
12,551,599
344,750,393
53,682,920
79,284
3,820,625
417,445,869

(Liabilities)
(26,731,260)
(12,070,682)
62,540,203
17,536,724
18,771,178
60,046,163
2,508,869

441

53.3.4 Remaining Contractual Maturities of Commitments and Contingencies
The tables below show the contractual expiry by remaining maturity of the Banks contingent liabilities and commitments. Each undrawn
loan commitment is included in the time band containing the earliest date it can be drawn down. For issued guarantee contracts, the
maximum amount of the guarantee is allocated to the earliest period in which the guarantee could be called.
(a)
Guarantees
Acceptance
Forward contracts
Documentary credit
Others
Total Contingencies
Commitments
Undrawn overdrafts
Undrawn loans
Undisbursed cash loans
Undrawn credit card limits
Undrawn indirect credit facilities
Capital commitments
Total Commitments
Total Commitments & Contingencies
(b)
Less than
3 Months
Rs 000
3 to 12
Months
Rs 000
1 to 5
Years
Rs 000
Over 5
Years
Rs 000
Total
Rs 000
3,806,464
25,608
151,301
365,467
1,129,271
17,435
5,495,546
12,568,497
11,249,117
26,139
16,397,635
13,410,939
53,652,327
12,529,043
4,566,008
27,483,600
1,875,857
46,454,508
4,941,850
17,304
633,305
5,592,459
5,830,806
5,830,806
39,676,660
15,858,037
177,440
44,246,702
17,049,372
17,435
117,025,646
34,782,721
13,865,183
14,762,087
34,379,494
177,752
97,967,237
103,462,783
53,652,327
46,454,508
5,592,459
5,830,806
34,782,721
13,865,183
14,762,087
34,379,494
177,752
97,967,237
214,992,883
On
Demand
Rs 000
Less than
3 Months
Rs 000
3 to 12
Months
Rs 000
1 to 5
Years
Rs 000
Over 5
Years
Rs 000
Total
Rs 000
2,402,223
29,011
104,104
7,457
652,869
13,902
3,209,566
13,681,503
7,665,776
13,394,053
13,045,129
47,786,461
13,671,534
4,482,861
17,624,655
2,863,498
38,642,548
4,740,183
15,744
4,755,927
2,440,346
2,440,346
36,935,789
12,193,392
104,104
31,026,165
16,561,496
13,902
96,834,848
30,328,520
7,482,801
750
11,571,255
23,609,202
338,282
73,330,810
76,540,376
47,786,461
38,642,548
4,755,927
2,440,346
30,328,520
7,482,801
750
11,571,255
23,609,202
338,282
73,330,810
170,165,658
Guarantees
Acceptance
Forward contracts
Documentary credit
Others
Total Contingencies
Commitments
Undrawn overdrafts
Undrawn loans
Capital commitments
Total Commitments
442
On
Demand
Rs 000
(c)
Guarantees
Acceptance
Forward contracts
Documentary credit
Others
Total Contingencies
Commitments
Undrawn overdrafts
Undrawn loans
Undrawn commitments factoring
Capital commitments
Total Commitments
(d)
On
Demand
Rs 000
Less than
3 Months
Rs 000
3 to 12
Months
Rs 000
1 to 5
Years
Rs 000
Over 5
Years
Rs 000
Total
Rs 000
3,806,464
25,608
151,301
365,467
1,129,271
17,435
5,495,546
12,568,497
11,249,117
26,139
16,397,635
13,410,939
53,652,327
12,529,043
4,566,008
27,483,600
1,875,857
46,454,508
4,941,850
17,304
633,305
5,592,459
5,830,806
5,830,806
39,676,660
15,858,037
177,440
44,246,702
17,049,372
17,435
117,025,646
34,682,721
13,865,183
14,762,087
315,071
34,379,494
184,775
98,189,331
103,684,877
53,652,327
46,454,508
5,592,459
5,830,806
34,682,721
13,865,183
14,762,087
315,071
34,379,494
184,775
98,189,331
215,214,977
On
Demand
Rs 000
Less than
3 Months
Rs 000
3 to 12
Months
Rs 000
1 to 5
Years
Rs 000
Over 5
Years
Rs 000
Total
Rs 000
2,402,223
29,011
104,104
7,457
652,869
13,902
3,209,566
13,681,503
7,665,776
13,394,053
13,045,129
47,786,461
13,671,534
4,482,861
17,624,655
2,863,498
38,642,548
4,740,183
15,744
4,755,927
2,440,346
2,440,346
36,935,789
12,193,392
104,104
31,026,165
16,561,496
13,902
96,834,848
30,328,520
7,482,801
750
11,571,255
228,058
23,609,202
351,542
73,572,128
76,781,694
47,786,461
38,642,548
4,755,927
2,440,346
30,328,520
7,482,801
750
11,571,255
228,058
23,609,202
351,542
73,572,128
170,406,976
Guarantees
Acceptance
Forward contracts
Documentary credit
Others
Total Contingencies
Commitments
Undrawn overdrafts
Undrawn loans
Undrawn commitments factoring
Capital commitments
Total Commitments
443

53.4 Market Risk
4HYRL[YPZRPZ[OLYPZR[OH[[OLMHPY]HS\LVYM\[\YLJHZOV^ZVMUHUJPHSPUZ[Y\TLU[Z^PSS\J[\H[LK\L[VJOHUNLZPUTHYRL[]HYPHISLZZ\JOHZ
PU[LYLZ[YH[LZMVYLPNUL_JOHUNLYH[LZJVTTVKP[`WYPJLZHUKLX\P[`WYPJLZ;OL)HURJSHZZPLZL_WVZ\YLZ[VTHYRL[YPZRPU[VLP[OLY[YHKPUN
or nontrading portfolios and manages each of those portfolios separately.
53.4.1 Interest Rate Risk
0U[LYLZ[YH[LYPZRHYPZLZMYVT[OLWVZZPIPSP[`[OH[JOHUNLZPUPU[LYLZ[YH[LZ^PSSHMMLJ[M\[\YLJHZOV^ZVY[OLMHPY]HS\LZVMUHUJPHSPUZ[Y\TLU[Z
The Banks policy is to continuously monitor positions on a daily basis and hedging strategies are used to ensure positions are maintained
within prudential levels.
;OLMVSSV^PUN[HISLKLTVUZ[YH[LZ[OLZLUZP[P]P[`VM[OL)HURZ:[H[LTLU[VM7YV[VY3VZZMVY[OL`LHYLUKLKZ[+LJLTILYHUKZ[
December 2014 to a reasonable possible change in interest rates, with all other variables held constant.
Rate Sensitive Assets (RSA) & Rate Sensitive Liabilities (RSL) as at 31st December
Rate Sensitive Assets (RSA)*

Rate Sensitive Liabilities (RSL)*
GAP (RSA - RSL)
0TWHJ[VU:[H[LTLU[VM7YV[VY3VZZK\L[V0U[LYLZ[9H[L:OVJRZHZH[Z[+LJLTILY
Interest Rate Shock

0.50%
1.00%
(0.50%)
(1.00%)
2015
Rs 000
2014
Rs 000
388,781,320
408,244,998
(19,463,678)
293,284,711
330,828,558
(37,543,847)
2015
Rs 000
2014
Rs 000
46,103
92,206
(46,103)
(92,206)
(90,704)
(181,408)
90,704
181,408
*The above computation is based on the rate sensitive assets and liabilities which are matured or repriced within one year.
Interest Rate Sensitivity Analysis

;OL[HISLZILSV^HUHS`ZL[OL)HURZPU[LYLZ[YH[LYPZRL_WVZ\YLVUUHUJPHSHZZL[ZHUKSPHIPSP[PLZ;OL)HURZHZZL[ZHUKSPHIPSP[PLZHYL
included at carrying amount and categorised by the earlier of contractual repricing or maturity dates.
444
445
Interest Rate Sensitivity Gap
32,265,517
1,022,617

8,799,570
263,474,883
20,553,003
293,850,073
Due to banks
Dividend payable
Other liabilities
Up to 3
Months
Rs 000
2,930,483
3,974,515

1,767,317
2,702,785
1,643,868
250,229,790
5,679,504
49,976,743
7,210,585
326,115,590
Financial Assets
Other assets
(a)
(51,729,195)
506,559

516,552
102,508,929
10,862,885
114,394,925
1,218,854

1,321
42,078,447
19,367,108
62,665,730
3 - 12
Months
Rs 000
32,858,296

4,794,856
8,321,786
13,116,642

2,925
41,358,223
4,613,790
45,974,938
1-3
Years
Rs 000
7,345,336

1,263,591
14,921,128
16,184,719

3,091
19,837,287
3,689,677
23,530,055
3-5
Years
Rs 000
19,585,088

20,514
2,357,482
2,377,996

21,944,889
18,195
21,963,084
Over 5
Years
Rs 000
(5,854,468)
1,889,323

34,260,246
90,969
5,083,897
41,781,493
10,657,592
21,341,882

121,741
247,894
1,273,668
1,964,787
35,927,025
Non Interest
Bearing
Rs 000
34,470,574
3,418,499

9,316,122
406,323,019
57,016,284
90,969
5,083,897
481,705,848
13,588,075
21,341,882
5,193,369

1,889,058
2,702,785
1,651,205
375,696,530
33,368,274
51,250,411
7,210,585
1,964,787
516,176,422
Rs 000
Total
446
479

11,854,431
225,385,581
8,492,214
245,732,705
(20,829,528)
Due to banks
Dividend payable
Other liabilities
Up to 3
Months
Rs 000
2,008,213
711,091
31,285,348

16,331,920
13,205,359
52,314
148,924,630
12,384,302
224,903,177
Financial Assets
Other assets
(b)
(16,714,319)

1,147,031
81,350,481
2,598,341
85,095,853
1,080,607

253,439
58,318,972
7,748,351
980,165
68,381,534
3 - 12
Months
Rs 000
36,504,292

4,313,099
9,347,438
13,660,537

429,094
48,586,868
1,148,867
50,164,829
1-3
Years
Rs 000
14,116,378

2,395,157
13,231,016
15,626,173

200,129
26,834,216
2,708,206
29,742,551
3-5
Years
Rs 000
15,978,621

21,047
2,666,590
2,687,637

18,629,868
36,390
18,666,258
Over 5
Years
Rs 000
(2,071,999)
2,486,268

26,503,776
79,284
3,854,603
32,976,110
9,548,407
17,607,251

692,333
140,048
1,581,622
1,157,226
30,904,111
Non Interest
Bearing
Rs 000
26,983,445
2,486,747

13,001,462
339,969,141
36,335,599
79,284
3,854,603
395,779,015
11,556,620
17,607,251
1,791,698
31,285,348

17,024,253
13,205,359
934,976
301,434,602
24,026,116
1,581,622
980,165
1,157,226
422,762,460
Rs 000
Total
447
28,040,815
1,022,617

8,197,892
263,256,007
27,548,849
300,025,365
Due to banks
Dividend payable
Other liabilities
Up to 3
Months
Rs 000
2,930,483
3,974,515

1,776,333
2,693,769
1,643,868
252,177,924
5,679,504
50,667,811
6,519,573
2,400
328,066,180
Financial Assets
Other assets
(c)
(50,446,436)
506,559

465,038
103,505,488
10,899,722
115,376,807
1,218,854

1,321
44,286,641
19,367,108
56,447
64,930,371
3 - 12
Months
Rs 000
37,154,165

4,854,407
8,413,813
13,268,220

2,925
45,805,670
4,613,790
50,422,385
1-3
Years
Rs 000
9,068,816

1,267,003
14,930,510
16,197,513

3,091
21,573,561
3,689,677
25,266,329
3-5
Years
Rs 000
18,809,926

20,514
3,378,083
3,398,597

22,186,054
18,195
4,274
22,208,523
Over 5
Years
Rs 000
(5,901,893)
1,889,323

34,260,246
90,969
5,391,243
42,088,839
10,782,973
21,341,882

121,741
247,894
1,273,668
2,099,327
36,186,946
Non Interest
Bearing
Rs 000
36,725,393
3,418,499

8,662,930
407,163,665
65,170,977
90,969
5,391,243
490,355,341
13,713,456
21,341,882
5,193,369

1,898,074
2,693,769
1,651,205
386,277,744
33,368,274
51,941,479
6,519,573
63,121
2,099,327
527,080,734
Rs 000
Total
448
22,601

11,362,341
225,095,958
9,919,562
246,400,462
(20,045,538)
Due to banks
Dividend payable
Other liabilities
Up to 3
Months
Rs 000
2,008,656
711,091
31,285,348

16,331,920
13,205,359
52,314
150,375,934
12,384,302
226,354,924
Financial Assets
Other assets
(d)
(16,289,551)

1,138,073
81,350,481
4,125,873
86,614,427
1,080,607

253,439
60,262,314
7,748,351
980,165
70,324,876
3 - 12
Months
Rs 000
37,524,754

4,313,099
11,820,512
16,133,611

429,094
52,080,404
1,148,867
53,658,365
1-3
Years
Rs 000
13,486,210

2,395,157
15,078,279
17,473,436

200,129
28,051,311
2,708,206
30,959,646
3-5
Years
Rs 000
16,012,310

21,047
2,666,590
2,687,637

18,659,359
36,390
4,198
18,699,947
Over 5
Years
Rs 000
(1,791,305)
2,486,268

26,502,980
79,284
3,878,578
32,999,289
9,636,670
17,607,251

692,333
140,048
1,581,678
1,372,780
31,207,984
Non Interest
Bearing
Rs 000
28,896,880
2,508,869

12,500,414
339,678,722
43,610,816
79,284
3,878,578
402,308,862
11,645,326
17,607,251
1,791,698
31,285,348

17,024,253
13,205,359
934,976
309,569,370
24,026,116
1,581,678
984,363
1,372,780
431,205,742
Rs 000
Total
53.4.2 Currency Risk

*\YYLUJ`YPZRHYPZLZHZHYLZ\S[VM\J[\H[PVUZPU[OL]HS\LVMHUHUJPHSPUZ[Y\TLU[K\L[VJOHUNLZPUMVYLPNUL_JOHUNLYH[LZ;OL)HURZ
Board has set limits on positions by currency. In accordance with the Banks policy, positions are monitored on a daily basis and hedging
strategies are used to ensure positions are maintained within established limits.
;OL[HISLZILSV^PUKPJH[L[OLJ\YYLUJPLZ[VÔPJO[OL)HUROHKZPNUPJHU[L_WVZ\YLZHZH[Z[+LJLTILYHUKZ[+LJLTILY
and the effect to the gains/losses in case of a market exchange rates increase/decrease by 5 % and 10%. The analysis calculates the
effect of a reasonably possible movement of the currency rate against the LKR, with all other variables held constant, on the Statement of
7YV[VY3VZZK\L[V[OLMHPY]HS\LVMJ\YYLUJ`ZLUZP[P]LUVU[YHKPUNTVUL[HY`HZZL[ZHUKSPHIPSP[PLZHUKLX\P[`K\L[VJOHUNLPUMHPY]HS\L
VMJ\YYLUJ`Z^HWZHUKMVY^HYKL_JOHUNLJVU[YHJ[Z\ZLKHZJHZOVÔLKNLZ(ULNH[P]LHTV\U[PU[OL0TWHJ[VU:[H[LTLU[VM7YV[
VY3VZZJVS\TUVM[OL[HISLYLLJ[ZHWV[LU[PHSUL[YLK\J[PVUPU:[H[LTLU[VM7YV[VY3VZZVYLX\P[`ÔPSLHWVZP[P]LHTV\U[YLLJ[ZHUL[
potential increase.
Foreign Exchange Position as at 31st December
Currency
USD
GBP
EUR
JPY
AUD
CAD
*/-
SGD
/2+
Sub Total
Other Currencies
Grand Total
/PNOLYVM3VUNVY:OVY[
2015
2014
Net Overall
Long
Rs 000
Net Overall
Short
Rs 000
Net Overall
Long
Rs 000
Net Overall
Short
Rs 000
536,238
24,897
82,446
7,764
21,051
29,355

17,188

763,245
112,621
875,866

4,128
31,298
1,217
4,212
26,682

14,119

130,605
165,126
295,731

248,002

248,002
9,523
257,525

0TWHJ[VU:[H[LTLU[VM7YV[VY3VZZK\L[V
Exchange Rate Shocks
Exchange Rate Shocks

5%
10%
-5%
-10%
2015
2014
Net Open
Impact on
Position Statement of
(M[LY9H[L 7YV[VY3VZZ
Shocks)
for the year
ended 31st
December
Rs 000
Rs 000
919,659
963,452
832,072
788,279
43,793
87,587
(43,793)
(87,587)
Net Open
Impact on
Position Statement of
(M[LY9H[L 7YV[VY3VZZ
Shocks)
for the year
ended 31st
December
Rs 000
Rs 000
310,518
325,305
280,945
266,159
14,787
29,573
(14,787)
(29,573)
53.4.3 Equity Price Risk

Equity price risk is the risk that the fair value of equities decreases as a result of changes in the level of equity indices and individual stocks.
Investment Committee reviews and approves all equity investment decisions. Further the market value of the Banks equity portfolio as of
31st December 2015 is Rs. 121,740,400/-. (2014: Rs 692,332,623/-).
449

53.5 Operational Risk
Operational risk is the risk of losses arising from failed internal processes, systems failure, human error, fraud or external events. When
JVU[YVSZMHPS[VWLYMVYTVWLYH[PVUHSYPZRZJHUJH\ZLKHTHNL[VYLW\[H[PVUOH]LSLNHSVYYLN\SH[VY`PTWSPJH[PVUZVYSLHK[VUHUJPHSSVZZ
Strategic and Reputational Risks are not covered in Operational Risk.
Operational Risks of the Bank are mitigated and managed through a Board approved Operational Risk Management Policy control
framework which consists of monitoring and responding to potential risks such as segregation of duties, access, authorisation and
reconciliation procedures, staff education and assessment processes, Business Continuity Planning etc. Operational Risk Management Unit
YLWVY[Z[V.YV\W9PZR6MJLYHUK[OL)VHYK0U[LNYH[LK9PZR4HUHNLTLU[*VTTP[[LLÔPJOTHPU[HPUZHOPNOSL]LSV]LYHSSZ\WLY]PZPVUVM
managing Operational Risks of the Bank.
53.6 Capital Management

The Banks capital management objectives can be summarised as follows:
4HPU[HPUZ\MJPLU[JHWP[HS[VTLL[TPUPT\TYLN\SH[VY`JHWP[HSYLX\PYLTLU[Z
/VSKZ\MJPLU[JHWP[HS[VZ\WWVY[[OL)HURZYPZRHWWL[P[L
Provide additional capital to business segments of the Bank to achieve the overall strategic objectives
Provide a cushion or buffer in absorbing potential losses arising from various risks and safeguarding the depositors funds
Regulatory Capital
The Bank manages its capital considering the regulatory capital requirements. The Central Bank of Sri Lanka (CBSL) sets and monitors
capital requirements for licensed commercial banks in Sri Lanka based on the Basel framework. Accordingly commercial banks in Sri
Lanka need to maintain a total capital adequacy ratio of 10% and a core capital adequacy ratio (Tier I) of at least 5%. The Bank has always
maintained the Capital Adequacy Ratios above the minimum regulatory requirements .
450
54. MATURITY ANALYSIS

(a)
Maturity Gap Analysis as at 31st December 2015

Bank
Assets
Loans to & receivables from other
customers
Intangible assets
Deferred tax assets
Other assets
Total Assets
Within 12
Months
Rs 000
After 12
Months
Rs 000
13,588,075
20,012,700
5,193,369

1,889,058
Group
Total
Rs 000
Within 12
Months
Rs 000
After 12
Months
Rs 000
Total
Rs 000
1,329,182

-
13,588,075
21,341,882
5,193,369

1,889,058
13,713,456
20,012,700
5,193,369

1,898,074
1,329,182

-
13,713,456
21,341,882
5,193,369

1,898,074
2,702,785
554,045
1,097,160
2,702,785
1,651,205
2,693,769
554,045
1,097,160
2,693,769
1,651,205
224,927,132
8,699,601
51,250,411
150,769,398
24,668,673
-
375,696,530
33,368,274
51,250,411
229,458,847
8,699,601
51,941,479
156,818,897
24,668,673
-
386,277,744
33,368,274
51,941,479
7,210,585
1,782,343
338,129,565
1,079,921
5,313,491
342,193
2,547,590
187,147,608
7,210,585
1,079,921
5,313,491
342,193
4,329,933
525,277,173
6,519,573
58,847
2,249
1,933,215
342,998,685
4,274
8,696,577
368,369
23,368
2,642,267
195,648,767
6,519,573
63,121
8,696,577
368,369
2,249
23,368
4,575,482
538,647,452
Liabilities
Due to banks
agreements
Dividend payable
Other liabilities
Other provisions
Total Liabilities
3,418,499

3,418,499

3,418,499

3,418,499

9,316,122
382,311,407
24,217,241
90,969
3,691,556
6,445,350
429,948,202
24,011,612
32,799,043
1,247,983
313,181
771,293
1,060,785
60,203,897
9,316,122
406,323,019
57,016,284
90,969
4,939,539
313,181
7,216,643
1,060,785
490,152,099
8,662,930
383,089,090
30,912,047
90,969
3,773,379
7,141,806
437,545,778
24,074,575
34,258,930
1,247,983
433,175
791,186
1,092,626
61,898,475
8,662,930
407,163,665
65,170,977
90,969
5,021,362
433,175
7,932,992
1,092,626
499,444,253
Maturity Gap
(91,818,637)
126,943,711
35,125,074
(94,547,093)
133,750,292
39,203,199
Cumulative Gap
(91,818,637)
35,125,074
(94,547,093)
39,203,199
451
54. MATURITY ANALYSIS CONTD.

(b)
Maturity Gap Analysis as at 31st December 2014

Bank
Assets
Loans to & receivables from other
customers
Intangible assets
Deferred tax assets
Other assets
Total Assets
Within 12
Months
Rs 000
After 12
Months
Rs 000
11,556,620
17,273,902
1,791,698
31,285,348

17,024,253
Group
Total
Rs 000
Within 12
Months
Rs 000
After 12
Months
Rs 000
Total
Rs 000
333,349

-
11,556,620
17,607,251
1,791,698
31,285,348

17,024,253
11,645,326
17,273,902
1,791,698
31,285,348

17,024,253
333,349

-
11,645,326
17,607,251
1,791,698
31,285,348

17,024,253
13,205,359
305,753
629,223
13,205,359
934,976
13,205,359
305,753
629,223
13,205,359
934,976
207,383,649
6,326,903
1,581,622
94,050,953
17,699,213
-
301,434,602
24,026,116
1,581,622
210,772,594
6,326,903
1,581,678
98,796,776
17,699,213
-
309,569,370
24,026,116
1,581,678
980,165
1,461,090
310,353,586
1,059,921
5,141,848
368,162
2,389,997
121,672,666
980,165
1,059,921
5,141,848
368,162
3,851,087
432,026,252
980,165
1,505,192
313,875,395
4,198
8,388,598
394,332
23,473
2,645,415
128,914,577
984,363
8,388,598
394,332
23,473
4,150,607
442,789,972
Liabilities
Due to banks
agreements
Dividend payable
Other liabilities
Other provisions
Total Liabilities
2,486,747

2,486,747

2,508,869

2,508,869

13,001,462
334,114,721
9,697,744
79,284
2,319,645
5,279,837
367,031,619
5,854,420
26,637,855
143,577
409,704
1,037,098
34,082,654
13,001,462
339,969,141
36,335,599
79,284
2,319,645
143,577
5,689,541
1,037,098
401,114,273
12,500,414
333,824,302
12,652,625
79,284
2,435,816
5,538,607
369,592,096
5,854,420
30,958,191
218
223,750
496,061
1,061,607
38,594,247
12,500,414
339,678,722
43,610,816
79,284
2,436,034
223,750
6,034,668
1,061,607
408,186,343
Maturity Gap
(56,678,033)
87,590,012
30,911,979
(55,716,701)
90,320,330
34,603,629
Cumulative Gap
(56,678,033)
30,911,979
(55,716,701)
34,603,629
452
Looking towards
even greater
success in the
years that lie ahead
Supplementary Information
:[H[LTLU[VM7YV[VY3VZZPU<:
:[H[LTLU[VM*VTWYLOLUZP]L0UJVTLPU<:
:[H[LTLU[VM-PUHUJPHS7VZP[PVUPU<:
=HS\L(KKP[PVU
;LU@LHYZH[H.SHUJL
8\HY[LYS`:[H[PZ[PJZ
*HWP[HS(KLX\HJ`

.90.*VU[LU[0UKL_
.90-PUHUJPHS:LY]PJLZ:LJ[VY+PZJSVZ\YLZ
:\WWSLTLU[HY`:\Z[HPUHIPSP[`0UKPJLZ
0UKLWLUKLU[(ZZ\YHUJL9LWVY[
.SVZZHY`VM-PUHUJPHSHUK)HURPUN;LYTZ
(IIYL]PH[PVUZ
:HTWH[O:VUN
5V[PJLVM(UU\HS.LULYHS4LL[PUN
-VYTVM7YV_`
:[HRLOVSKLY-LLKIHJR-VYT
453
:[H[LTLU[VM7YV[VY3VZZPU<:
Bank
Group
2015
<:
2014
<:
2015
<:
2014
<:
Gross income
326,154
339,917
340,513
353,616
Interest income
Net interest income
263,132
142,454
120,678
290,081
170,236
119,845
275,356
146,712
128,643
302,557
174,655
127,902
44,992
8,331
36,661
38,534
6,618
31,916
45,915
8,348
37,567
39,121
6,656
32,465
Net trading income

(2,367)
20,397
175,370
3,151
8,151
163,063
(2,367)
21,609
185,453
3,151
8,787
172,304
Less: Net impairment charge / (reversal) for loans & other losses
6,544
168,826
10,681
152,382
6,886
178,567
12,048
160,256
Less: Operating expenses

Personnel expenses
Total operating expenses
42,588
49,918
92,506
38,574
50,825
89,399
45,246
51,578
96,824
40,709
52,128
92,837
2SHUDWLQJSURWEHIRUHYDOXHDGGHGWD[9$7DQG

QDWLRQEXLOGLQJWD[1%7RQQDQFLDOVHUYLFHV
76,320
62,983
81,743
67,419

63,113

51,269

67,889

55,236
20,575
42,538
13,816
37,453
21,924
45,965
15,087
40,149
42,538
42,538
37,453
37,453
45,932
33
45,965
40,116
33
40,149

Less: Fee & commission expense
3LZZ!=(; 5);VUUHUJPHSZLY]PJLZ
3URWEHIRUHLQFRPHWD[
Less: Income tax expense
3URWIRUWKH\HDU
Attributable to:
Earnings per share (US$)

Earnings per share: Basic (US$)
Earnings per share: Diluted (US$)
Dividend per share (US$)
Dividend per share: Gross (US$)
Dividend per share: Net (US$)
0.27
0.27
0.09*
0.08*
0.08
0.08
Exchange rate of US$ was Rs 144.20 as at 31st December 2015 (Rs 131.20 as at 31st December 2014)
* Calculated based on proposed dividend, which is to be approved at the Annual General Meeting.
454
:[H[LTLU[VM*VTWYLOLUZP]L0UJVTLPU<:
Bank
3URWIRUWKH\HDU
Group
2015
<:
2014
<:
2015
<:
2014
<:
42,538
37,453
45,965
40,149

223
(2,716)

8
(5,326)

223
(2,716)

8
(5,326)

(2,716)

(4,046)

(2,716)

(4,046)

(225)
579

1,649
(4,241)

(222)
577

1,654
(4,260)
579
(4,241)
577
(4,260)
(2,137)
40,401
(8,287)
29,166
(2,139)
43,826
(8,306)
31,843
40,401
40,401
29,166
29,166
43,792
34
43,826
31,811
33
31,844

6[OLYJVTWYLOLUZP]LPUJVTL[VILYLJSHZZPLK[VWYV[VYSVZZ!
(Loss) / Gain arising on re-measuring available for
ZHSLUHUJPHSHZZL[Z
.HPU3VZZHYPZPUNMYVTJHZOVÔLKNL
1HWRWKHUFRPSUHKHQVLYHLQFRPHWREHUHFODVVLHGWRSURWRUORVV
6[OLYJVTWYLOLUZP]LPUJVTLUV[[VILYLJSHZZPLK[VWYV[VYSVZZ!
1HWRWKHUFRPSUHKHQVLYHLQFRPHQRWWREHUHFODVVLHG
WRSURWRUORVV
Other comprehensive income net of tax
Total comprehensive income for the year net of tax
Attributable to:
455
:[H[LTLU[VM-PUHUJPHS7VZP[PVUPU<:
Bank
As at 31st December
ASSETS
Intangible assets
Deferred tax assets
Other assets
Total Assets
LIABILITIES
Due to banks
Dividend payable
Other liabilities
Other provisions
Total Liabilities
Group
2015
<:
2014
<:
2015
<:
2014
<:
94,231
148,002
36,015

13,100
18,743
11,451
2,605,385
231,403
355,412
50,004
7,489
36,848
2,373
30,028
3,642,699
88,084
134,202
13,656
238,455

129,758
100,651
7,126
2,297,520
183,126
12,055
7,471
8,079
39,191
2,806
29,352
3,292,883
95,100
148,002
36,015

13,163
18,681
11,451
2,678,764
231,403
360,204
45,212
438
60,309
2,555
16
162
31,729
3,735,419
88,760
134,202
13,656
238,455

129,758
100,651
7,126
2,359,523
183,126
12,055
7,503
63,937
3,006
179
31,636
3,374,924
23,707

64,606
2,817,774
395,397
631
34,255
2,172
50,045
7,356
3,399,113
18,954

99,097
2,591,228
276,948
604
17,680
1,094
43,365
7,905
3,057,273
23,707

60,076
2,823,604
451,949
631
34,822
3,004
55,012
7,577
3,463,552
19,122

95,278
2,589,015
332,400
604
18,567
1,705
45,995
8,092
3,111,176
EQUITY
Stated capital
Reserves
Statutory reserves
Other reserves
Retained earnings
Total equity attributable to equity holders of the Bank
Total Equity
Total Liabilities & Equity
37,319
34,071
37,319
34,071
12,413
172,589
21,265
243,586
243,586
3,642,699
11,280
165,999
24,260
235,610
235,610
3,292,883
12,899
188,925
32,067
271,210
657
271,867
3,735,419
11,668
183,953
33,352
263,044
704
263,747
3,374,924
Net asset value per share (US$)

Commitments & contingencies
1.41
1,490,935
1.37
1,296,994
1.57
1,492,476
1.53
1,298,834
456
Value Addition
G4-EC 01,02
Economic Value Addition - Bank

2015
Rs Mn
2014
Rs Mn
Average shareholders funds

Provision for impairment losses
33,019
6,997
40,016
29,665
7,008
36,673

944
(851)
6,227

1,401
(4,342)
1,973
8.6%
3,441
2,786
8.7%
3,191
(1,218)
7YV[H[[YPI\[HISL[VZOHYLOVSKLYZ
Impairment charge / (reversal) for loans & other losses
Amounts written off - loans & receivables
Economic cost ( 12 months average Treasury Bill rate plus 2% risk premium)
Economic cost
Economic value addition
;OLLJVUVTPJ]HS\LJYLH[LKI`[OL)HUR[VP[ZZOHYLOVSKLYZK\YPUN[OLWLYPVKPZYLLJ[LKPU[OLHIV]LHUHS`ZPZ
Direct Economic Value Generated & Distributed - Bank

Information on the creation and distribution of economic value provides a basic indication of how the bank has created wealth for
stakeholders
2015
Rs Mn
Direct Economic Value Generated
Interest income
Foreign exchange income
Commission income
Investment income
Other income
2014
Rs Mn
37,944
2,466
6,488
249
55
47,202
38,059
1,283
5,056
425
42
44,865
18,995
18,995
21,412
21,412
700
1,201
6,418
8,319
696
868
5,858
7,422

6,141

5,061
2,830

61
4,795
1,144

49
2,730
Economic Value Distributed

To Depositors and Lenders
Interest expenses
Operating Costs
Depreciation & amortisation set aside
Fee & commission expenses
To Employees
,TWSV`LLZHSHYPLZ ILUL[Z
Payments to Government
Income tax expenses
Crop insurance levy
To Community
Social responsibility projects
Donations
Payments to Providers of Capital
Interest to debenture holders
Dividend to shareholders
Economic Value Distributed
Economic Value Retained (after payment of dividend to shareholders)
16
2
18
18
49
67
1,547
2,240
3,787
923
1,847
2,770
42,055
5,147
47,202
39,462
5,403
44,865
457
Ten Years at a Glance

Operating Results (Rs Mn)
Gross income
Interest income
Interest expenses
Net interest income
Exchange income
Other income
Operating expenses
Impairment losses
7YV[ILMVYLPUJVTL[H_
Income tax expense
7YV[HM[LY[H_
2006
2007
SLAS
2008
2009
2010
12,340
9,997
5,890
4,107
646
1,697
6,450
3,131
444

1,240

17,400
14,950
9,947
5,003
505
1,944
7,452
3,614
1,003

1,167

22,243
19,451
12,801
6,650
647
2,144
9,441
4,662
1,252

1,150

25,213
20,970
13,165
7,805
774
3,469
12,048
5,484
1,203

1,878

24,333
18,477
9,953
8,525
498
5,357
14,380
6,320
1,944

1,199

2006
2007
27,577
21,111
12,168
8,943
837
4,792
14,572
8,059
618

1,606

2012
SLFRS
2013
2014
38,796
31,882
20,269
11,613
2,154
4,105
17,872
9,248
65

2,170

47,509
41,892
26,556
15,336
520
4,901
20,757
10,634
4,736

1,061

44,597
38,059
22,335
15,724
1,283
4,387
21,394
11,729
1,401

1,813

47,032
37,944
20,542
17,402
2,466
5,421
25,288
13,339
944

2,967

2015
2009
2010
2011
2012
SLFRS
2013
2014
2015
Assets (Rs Mn)

Cash & cash equivalents including placements
Loans & advances
Investment in associates & subsidiaries
Other assets
Total assets
8,814
9,108
6,923
5,868
75,970
93,430
95,655
98,685
1,096
970
970
992
1,823
3,080
3,289
3,420
21,847
26,608
31,702
47,197
109,550 133,196 138,539 156,162
6,048
124,067
992
4,278
55,929
191,314
16,073
442
169,681
1,055
4,528
55,879
247,658
19,220
816
208,184
1,060
4,560
75,570
309,410
10,094
638
259,402
1,060
5,135
105,713
382,042
13,348
935
301,435
1,060
5,142
110,106
432,026
18,781
1,651
375,697
1,080
5,313
122,755
525,277
Liabilities (Rs Mn)

Due to banks & other customers (Deposits Only)
9LUHUJLIVYYV^PUNZ
Other liabilities evidenced by paper
Borrowings from banks & debt issued and other borrowed funds
Other liabilities
Total liabilities
81,432
99,419 107,380 126,091

2,734
4,433
4,514
3,102
15,984
16,618
12,276
10,304
102,924 124,627 128,762 144,316
153,310 195,900 243,575 302,429 341,946 409,411

8,702
20,225
29,206
39,194
36,846
57,347
8,311
10,189
10,985
12,000
22,322
23,394
170,323 226,314 283,766 353,623 401,114 490,152
As at 31st December
Shareholders Fund (Rs Mn)

Stated capital
Reserves
1,582
5,044
SLAS
2008
2011
1,582
6,987
1,582
8,195
1,582
10,265
1,786
19,204
2,744
18,600
3,564
22,080
4,460
23,958
4,470
26,442
5,381
29,744
Dividend paid / proposed (Rs Mn)
Dividend cover (times)
Net assets per share (Rs)
4HYRL[WYPJLWLYZOHYL9Z/PNO
Market price per share (Rs) - Low
Market price as at 31st December (Rs)
172.2
206.7
275.6
473.6
6.0
5.1
5.1
4.4
96.17
124.39
141.92
77.52

75.25
100.00
65.00
65.00
109.75
120.00
68.00
204.25
1,235.8 1,427.0 1,954.1 1,342.6 1,847.0 2,240.0

2.7
2.4
2.6
2.6
2.6
2.7
131.18
129.00
152.96
169.37
179.39
203.85

201.00
191.00
148.50
161.60
164.20
235.20
271.90
195.00
200.50
171.90
236.30
248.00
Other Information
Exchange rate (US $)
Number of staff as at 31st December
Number of branches as at 31st December
107.52
2,039
96
110.95
2,688
171
Ratios
Growth of income (%)
*VZ[[VPUJVTLYH[PV^P[O=(;HUK5);VUUHUJPHSZLY]PJLZ
*VZ[[VPUJVTLYH[PV^P[OV\[=(;HUK5);VUUHUJPHSZLY]PJLZ
Growth of deposits (%)
Growth of advances (%)
Return on average assets (after tax) (%)
Return on average equity (after tax) (%)
Property plant and equipment to shareholders fund (%)
Total assets to shareholders fund (Times)
Liquid assets ratio (%)
$VVSHFLHGLQ%DQNLQJ$FW1RRI
Capital adequacy ratios (%)
- TIER I
- TIER I+II
108.65
2,213
105
113.00
2,364
112
114.47
2,388
131
(3.5)

19.4
30.3
8.09
1.94
24.59
20.4
9.1
113.90
3,230
206
127.65
3,455
209
130.75
3,688
212
131.20
4,000
220
144.20
3,993
225
13.3

27.8
37.1
9.00
1.55
16.17
21.2
11.6
40.7

24.3
22.9
12.00
1.88
22.26
17.8
12.1
22.5

24.2
24.4
8.00
0.98
12.88
18.1
13.4
(6.1)

13.1
16.3
11.00
1.23
16.35
16.6
14.0
5.50

19.7
24.8
13.0
1.28
18.42
15.1
15.0
41.8

23.5
26.4
2.50
1.06
16.78
27.5
16.5
41.0

22.4
23.0
3.00
0.87
13.84
35.9
15.5
27.8

8.1
2.4
4.00
1.04
15.41
33.6
14.2
13.4

17.5
3.2
6.25
1.42
19.41
28.9
13.2
31.3
29.0
29.5
30.5
26.3
25.0
22.4
27.6
24.5
22.1
8.38
10.82
7.58
11.58
8.10
11.95
10.40
13.45
10.71
12.91
10.24
11.45
11.80
13.61
10.08
14.22
8.83
13.62
7.90
12.26
*VTWHYH[P]LPUMVYTH[PVUMVY[OL`LHYOHZILLUYLJSHZZPLKÔLYL]LYULJLZZHY`[VJVUMVYT[V[OLJ\YYLU[`LHYZWYLZLU[HPVU
458
4,506
1,395
(246)
1,093
6,748
400
6,348
3,202

844

235
1,987
178
6,364
3,895

713

(85)
1,302
30th
September
Rs Mn
489,344
1,682
343,660
381,986
34,500
30th
September
Rs Mn
4,416
1,453
40
633
6,542
31st
December
Rs Mn
525,277
1,651
375,697
406,323
35,125
31st
December
Rs Mn
2015
2015
337
5,990
3,222

698

(120)
1,444
4,433
1,220
115
560
6,328
30th
June
Rs Mn
461,004
1,292
329,512
362,391
32,513
30th
June
Rs Mn
*VTWHYH[P]LPUMVYTH[PVUMVY[OL`LHYOHZILLUYLJSHZZPLKÔLYL]LYULJLZZHY`[VJVUMVYT[V[OLJ\YYLU[`LHYZWYLZLU[H[PVU
6WDWHPHQWRI3URWRU/RVV
Net interest income
Net trading income
Less: Impairment charge / (reversal)
for loans & other losses
Less: Total operating expenses
Income tax expense
7YV[MVY[OLWLYPVK
Other comprehensive income for the period
Total comprehensive income for the period
For the three months ended

Total assets
Total equity
As at
29
5,642
3,021

712

(338)
1,093
4,047
1,219
(250)
655
5,671
31st
March
Rs Mn
438,703
868
308,704
348,511
31,070
31st
March
Rs Mn
201
5,444
3,307

573

(814)
386
4,037
1,186
(36)
458
5,645
31st
December
Rs Mn
432,026
935
301,435
339,969
30,912
31st
December
Rs Mn
468
5,041
3,076

541

320
1,354
3,936
1,087
73
413
5,509
30th
September
Rs Mn
396,192
485
267,568
327,209
30,526
30th
September
Rs Mn
2014
2014
306
4,857
2,719

231

(571)
909
3,783
973
16
391
5,163
30th
June
Rs Mn
385,349
532
253,278
319,761
29,172
30th
June
Rs Mn
425
4,651
2,626

468

(22)
1,178
3,968
941
360
(193)
5,076
31st
March
Rs Mn
378,084
595
249,801
311,998
29,600
31st
March
Rs Mn
Quarterly Statistics
459
460
Regulatory Liquidity
Bank ( % )
Domestic banking unit ( % )
Off-Shore banking unit ( % )
22.05
21.84
27.24
1.64
0.46
7.90
12.26
Capital Adequacy Ratio

Tier I ( % )
Tier I + II ( % )
Assets Quality
Gross NPA ratio ( % )
Net NPA ratio ( % )
3.64
1.90
18.42
31st
December

246.00
248.00
31st
December
3URWDELOLW\
Interest Margin ( % )
Return on assets (before tax) ( % )
Return on equity (after tax) ( % )
As at
Market price per share ( Rs )

/PNOLZ[
Lowest
Closing
For the three months ended
21.39
21.14
25.98
1.70
0.50
7.95
12.12
3.75
2.02
19.41
30th
September

248.10
258.20
30th
September
2015
2015
21.06
20.89
26.37
1.71
0.47
8.47
12.87
3.80
1.97
19.00
30th
June

240.00
259.30
30th
June
22.83
22.72
26.68
1.84
0.55
8.27
12.78
3.77
2.00
18.73
31st
March

235.20
252.10
31st
March
24.54
24.38
23.75
1.93
0.53
8.83
13.62
3.95
1.69
16.35
31st
December

225.60
236.30
31st
December
26.45
26.12
31.46
2.39
0.73
9.43
12.74
4.04
1.71
16.68
30th
September

199.00
241.80
30th
September
2014
2014
27.93
27.52
30.56
2.60
0.84
9.85
13.25
2.77
1.78
18.77
30th
June

173.00
200.20
30th
June
29.11
28.60
32.64
2.38
0.93
9.89
13.85
2.98
1.78
16.78
31st
March

164.20
182.10
31st
March
Quarterly Statistics
Capital Adequacy
Capital Adequacy is one of the key
UHUJPHSPUKPJH[VYZÔPJOPSS\Z[YH[LZ[OL
soundness and the stability of a bank by
measuring the adequacy of its capital
to meet unexpected losses arising from
various risks, associated with business
of banking, such as credit risk, market
risk, operational risk etc. The capital of
a bank acts as a cushion or buffer
in absorbing potential losses arising
from these risks and safeguarding the
depositors funds.
Capital Adequacy Ratio (CAR) is a
measure of the amount of a banks
Capital expressed as a percentage of its
Risk-weighted Assets.
*(9PZKLULKHZ!
CAR =
Tier I Capital + Tier II Capital

Risk-weighted Assets
Tier I Capital
The Tier I Capital mainly consists of
stated capital, non-redeemable and
non-cumulative preference shares,
other capital and revenue reserves after
deducting the total value of intangible
assets, 50% of the investments made
in shares and debentures of other
IHURZHUKUHUJPHSJVTWHUPLZHUK
\UJVUZVSPKH[LKIHURPUNHUKUHUJPHS
subsidiary companies.
Risk-weighted Assets (RWA)

Risk-weighted Assets are a measure
of the amount of the banks assets and
off-balance sheet exposures, weighted
according to their risks. Different classes
of assets have different risk weights
associated with them.
At present, Capital Adequacy
computation is prepared as per the
BASEL Accord which is an universally
accepted framework put forward by the
Basel Committee on Bank Supervision
(BCBS) of the Bank for International
Settlements (BIS).
Basel I
In 1988, the BCBS published the 1988
Basel Accord for minimum capital
requirement. This was enforced by law
in the Group of Ten (G-10) countries in
1992. The Basel Accord also known as
Basel I was adopted by Sri Lankan
banks to compute the Capital Adequacy
Ratios up to 31st December 2007.
Basel I accord was criticized mainly for
taking a too simplistic approach to setting
credit risk weights and for ignoring other
types of risks.
These criticisms have led to the creation
of a new Basel Capital Accord, known as
Basel II, which added operational risk and
HSZVKLULKUL^JHSJ\SH[PVUZMVYJYLKP[
risk.
Tier II Capital
Tier II Capital includes revaluation
reserves approved by CBSL, general loan
loss provisions, and subordinated term
debts approved by CBSL, after deducting
50% of the investments made in shares
and debentures of other banks and
UHUJPHSJVTWHUPLZHUK\UJVUZVSPKH[LK
IHURPUNHUKUHUJPHSZ\IZPKPHY`
companies.
These new set of rules known as Basel II

was later developed to replace the Basel I
accord by the Basel Committee.
Basel II
The Basel Committee on Bank
Supervision (BCBS) published the
International Convergence of Capital
Measurement and Capital Standards,
a revised framework (Basel II), in June
2004. Certain amendments to the above
were introduced in June 2006. This is the

basis currently used by Sri Lankan banks
for the computation of Capital Adequacy
Ratio effective from 1st January 2008.
Basel II comprises three mutually
reinforcing pillars,
Pillar 1 - Minimum Capital
Requirement
Pillar 2 - Supervisory Review
process
Pillar 3 - Market Discipline
Pillar 1 Minimum Capital

Requirement
Pillar-1 deals with maintenance of
regulatory capital calculated for three
major components of risks that a bank
faces: credit risk, operational risk,
and market risk. Other risks are not
considered fully at this stage.
The credit risk component can be
calculated in three different ways of
varying degrees of sophistication, namely
Standardised Approach, Foundation IRB
(Internal Rating-Based) Approach and
Advanced IRB (Internal Rating-Based)
Approach. In accordance with the current
regulatory framework in the country the
Bank has adopted the Standardised
Approach for calculating credit and
market risk while the Basic Indicator
Approach has been used in calculating
operational risk.
Pillar 2 Supervisory Review

Process
Pillar - 2 sets forth the framework for
the Supervisory Review Process (SRP)
and the framework for Internal Capital
Adequacy Assessment Process (ICAAP)
of banks. Pillar - 2 recognises risks in a
wider sense including risks not captured
and accounted by Pillar - 1. (e.g. credit
concentration risk, liquidity risk, business
and strategic risk etc.). It also covers
the Stress Tests which are used to
measure the impact on possible adverse
movements in different market scenarios.
461
Capital Adequacy
Pillar 3 Market Discipline
Basel III
Pillar - 3 presents a number of disclosure

requirements. The objective is to
raise the level of market discipline by
giving external stakeholders a better
understanding of capital adequacy
calculations and the procedures involved
in a bank. This Pillar is seen as particularly
important because under the advanced
approaches of Basel II, banks are allowed
to rely more heavily on internal methods
for determining risk, giving them greater
discretion in determining their capital
needs.
0U[OLHM[LYTH[OVM UHUJPHS
crisis, the BCBS agreed on reforms to
strengthen global capital and liquidity
rules with the goal of promoting a more
resilient banking sector, which is being
YLMLYYLK[VHZ)HZLS000/LUJL[OLTHPU
objective of Basel III is to minimize the
WVZZPIPSP[`VMVJJ\YYLUJLVMHUHUJPHS
crisis.
Main Areas of Reform in

Basel III
Capital requirement
Revised minimum equity and Tier I Capital
Requirement
Banks need to maintain a minimum
Common Equity Tier I (CET I) ratio
of 4.5% at all times.
Additional Tier I (AT I) capital of
1.5% will be enforced in sagged
basis.
Tier II capital will be at 4%.
Basel III: Capital and Leverage Standards

4VYLYLZ[YPJ[P]LKLUP[PVUVMJHWP[HS
More demanding capital ratios, bigger
capital buffers

/PNOLYJHWP[HSJOHYNLZMVYJV\U[LYWHY[`YPZR
Formal leverage ratio
Micro prudential
Basel III: Quantitative Liquidity Standards
Liquidity Coverage Ratio to survive
1 - month stress period
Net Stable Funding Ratio to require longer
term funding sources
Reform Agenda
of Basel III
Macro prudential
Systemic Risk
SIFIs (Systemically Important Financial
Institutions). Too big too fail
Surcharges in Capital
OTC (Over-the-Counter) derivatives in
central clearing institutions
New cross Border Resolution

Countercyclical Provisioning
462
Additional three buffers,

Capital Conservation Buffer (CCB)
2.5%
Domestic Systemically Important
Banks (D-SIBs) 1.5%
Countercyclical Buffer as and
when necessary
will be introduced to straighten the capital
requirement.
Leverage ratio
Basel III has introduced a
framework with a simple,
transparent, non-risk based
leverage ratio to act as a credible
supplementary measure to the risk
based capital requirement.
;OLSL]LYHNLYH[PVPZKLULKHZ[OL
capital measure (the numerator)
divided by the exposure measure
(the denominator) and the ratio is
expressed as a percentage.
Capital Measure
Leverage
=

Ratio
Exposure Measure
Capital Measure: The capital measure
MVY[OLSL]LYHNLYH[PVPZKLULKHZ;PLY
Capital.
Exposure Measure: The total exposure
measure is the sum of the followings:
All on - balance sheet and offbalance sheet (OBS) exposures
Derivative exposures
Securities Financing Transaction

(SFT) exposures
Liquidity requirement
Liquidity Coverage Ratio (LCR)
The objective of this ratio is maintenance
of high quality liquid assets that can be
converted into cash, to meet funding
needs of bank over the next 30 days,
under a highly stressed scenario.
Net Stable Funding Ratio (NSFR)
NSFR measures the long term capability
of bank. It ensures that banks hold a
minimum amount of stable funding
based on the liquidity characteristics
of their assets and activities over a one
year horizon. The objective is to reduce
maturity mismatches between the asset
and liability items on the balance sheet,
funding and rollover risk.
Implementation of Basel III in Sri Lanka
Basel III is very likely to be implemented in
Sri Lanka in 2016 once the Central Bank
decides on the effective date. Sampath
)HURPZJVUKLU[[OH[P[^PSSJVTWS`^P[O
HSS[OLYLX\PYLTLU[ZVM)HZLS000/V^L]LY
it is equally important for the Sri Lankan
banks to migrate into the advanced
approaches of Basel III as quickly as
possible, in order to reap the full capital
ZH]PUNZILUL[ZVM)HZLSSS0U[OPZ
connection, Sampath Bank is ready with
its internal rating system for measuring
the credit risk and could implement same
once the regulatory validation is obtained.
463
464
Claims on central government &

Central Bank of Sri Lanka
Claims on public sector entities
Claims on banks exposures
*SHPTZVUUHUJPHSPUZ[P[\[PVUZ
Claims on corporates
Retail claims
Claims secured by residential property
Non performing assets
Non performing assets secured by
residential property
Cash / gold against loans
Other assets
Total
Risk-weighted Assets for Credit Risk
336
2,679

227,337
80,666
18,272
4,654
240
40
8,225
356,988
250
55,119
8,225
506,157
Risk
Weighted
Assets
Rs Mn
2015
47,189
336
8,189

239,521
94,857
23,721
3,281
Rs Mn
Assets
Computation of Capital Adequacy Ratios - Basel II
316
57,160
7,599
434,175
304
29
7,599
269,227
370
2,204

178,063
58,119
9,745
3,761
Risk
Weighted
Assets
Rs Mn
2014
67,290
805
6,331

187,764
69,466
15,354
2,889
Rs Mn
Assets
Bank
250
55,202
13,269
519,625
240
40
13,269
371,864
336
2,692

238,745
80,666
18,272
4,648
Risk
Weighted
Assets
Rs Mn
2015
47,252
336
8,232

250,929
94,857
23,721
3,275
Rs Mn
Assets
316
57,173
11,972
445,600
304
29
11,972
280,674
370
2,280

184,985
58,119
9,745
3,874
Risk
Weighted
Assets
Rs Mn
2014
67,294
805
6,407

194,686
69,466
15,354
3,002
Rs Mn
Assets
Group
Capital Adequacy
465
2.0
50.0
13,306
13,306
45,016
45,016
211,708
6,653
6,653
900
900
43,541
84,958
20.0
20.0
20.0
84,958
6,998
416
3,410
3,172
34,988
2,080
17,050
15,858
50.0
80/77.5
0.0
23,023
23,023
5,967
3,945
2,022
4,619
4,619
35,528
35,528
145,783
45,239
45,239
31,475
2,672
16,610
12,193
20,418
20,418
8,504
6,074
2,430
2,309
2,309
711
711
34,653
6,295
534
3,322
2,439
20,418
20,418
4,920
3,037
1,883
2015
2014
Principal
Credit
Principal
Credit
Amount Equivalent Amount of Equivalent
of Off
of Off
Off
of Off
Balance
Balance
Balance
Balance
Sheet
Sheet
Sheet
Sheet
Items
Items
Items
Items
Rs Mn
Rs Mn
Rs Mn
Rs Mn
23,023
23,023
10,417
7,891
2,526
100.0
Credit
Conversion
Factor (%)
Direct credit substitutes

General guarantees of indebtedness
Transaction-related contingencies
Performance bonds, bid bonds & warranties
Others
Short-term self-liquidating trade-related
contingencies
Shipping guarantees
Documentary letters of credit
Trade related acceptances
Other commitments with an original maturity
VM\W[VVUL`LHYVYÔPJOJHUIL
\UJVUKP[PVUHSS`JHUJLSSLKH[HU`[PTL
Undrawn overdraft facilities/unused
credit card lines
Other commitments with an original
TH[\YP[`VMV]LYVUL`LHY
Undrawn term loans
Foreign exchange contracts
Original maturity-less than one year
Total
Off Balance Sheet Items
Bank
13,306
13,306
45,016
45,016
211,309
84,958
84,958
34,988
2,080
17,050
15,858
22,624
22,624
10,417
7,891
2,526
6,653
6,653
900
900
43,142
6,998
416
3,410
3,172
22,624
22,624
5,967
3,945
2,022
2015
Principal
Credit
Amount Equivalent
of Off
of Off
Balance
Balance
Sheet
Sheet
Items
Items
Rs Mn
Rs Mn
4,619
4,619
35,528
35,528
145,783
45,239
45,239
31,475
2,672
16,610
12,193
20,418
20,418
8,504
6,074
2,430
2,309
2,309
711
711
34,653
6,295
534
3,322
2,439
20,418
20,418
4,920
3,037
1,883
2014
Principal
Credit
Amount Equivalent
of Off
of Off
Balance
Balance
Sheet
Sheet
Items
Items
Rs Mn
Rs Mn
Group
Capital Adequacy
Bank
Risk-weighted Amount for Market Risk
Interest rate risk
General risk
:WLJPJYPZR
Equity risk
General risk
:WLJPJYPZR
Foreign exchange & gold risk
Total capital charge for market risk
Total Risk-weighted amount for market risk
(total capital charge x 10)
2015
Rs Mn
Group
2014
Rs Mn
396
396

2
1

120
518
296
296

55
33

47
398
5,178
3,983
2015
Rs Mn
396
396

2
1

120
518
(]LYHNLUL[PUJVTLMVYSHZ[[OYLLUHUJPHS`LHYZ
Deductions:
9LHSPZLKWYV[ZMYVT[OLZHSLVMZLJ\YP[PLZ
H]LYHNLVMSHZ[[OYLLUHUJPHS`LHYZ
Extraordinary / irregular item of income
H]LYHNLVMSHZ[[OYLLUHUJPHS`LHYZ
Gross income
Total capital charge for operational risk
.YVZZPUJVTL_
Total Risk-weighted amount for operational risk
(Total capital charge for operational risk x 10)
Computation of total Risk-weighted amount
Risk-weighted amount for credit risk
Risk-weighted amount for market risk
Risk-weighted amount for operational risk
Total Risk-weighted amount
466
296
296

55
33

47
398
5,178
Bank
Risk-weighted Amount for Operational Risk
2014
Rs Mn
3,983
Group
2015
Rs Mn
2014
Rs Mn
2015
RRs Mn
2014
Rs Mn

-

-

-

-

22,336

18,044

23,508

18,947
3,350
2,707
3,526
2,842
33,504
27,066
35,262
28,421
356,988
5,178
33,504
395,670
269,227
3,983
27,066
300,276
371,864
5,178
35,262
412,304
280,674
3,983
28,421
313,078
Bank
Computation of Capital Base
Core Capital (Tier I)
Stated capital
Statutory reserve fund
7\ISPZOLKYL[HPULKWYV[Z
General and other reserves
Minority interests (consistent with the
above capital constituents)
Deductions/Adjustments-Tier I
Goodwill
Net deferred tax assets
Other intangible assets
50% of investments in unconsolidated banking
HUKUHUJPHSZ\IZPKPHY`JVTWHUPLZ
50% investments in the capital of other banks and
UHUJPHSPUZ[P[\[PVUZ
Total Core Capital
Supplementary Capital (Tier II)
Revaluation reserves (as approved by CBSL)
General provisions
Approved subordinated term debt
Deductions-Tier II
50% of investments in unconsolidated banking and
UHUJPHSZ\IZPKPHY`JVTWHUPLZ
50% investments in the capital of other banks and
UHUJPHSPUZ[P[\[PVUZ
Eligible Tier II Capital
Base Capital (Tier I + Tier II)
Group
2015
Rs Mn
2014
Rs Mn
2015
Rs Mn
2014
Rs Mn
5,381
1,790

22,165
4,470
1,480

18,665
5,381
1,860

22,165
4,470
1,531

18,665
95
92
342
368
368
394

31,246

26,522

33,158

28,047
427
1,693
15,623
427
1,279
13,261
427
1,693
16,579
427
1,279
13,530

17,244
48,490

14,375
40,897

18,463
51,621

14,907
42,954
Limits:
(i)
Approved subordinated term debt is limited to 50% of total Tier I capital.
(ii)
The total of Tier II supplementary elements should not exceed a maximum of 100% of Tier I elements.
(iii)
General provision should not exceed 1.25% of Risk-weighted assets.
Bank
Group
2015
2014
2015
2014
Core Capital Ratio (minimum ratio - 5%)

Core Capital (Tier 1) x 100
Total Risk-weighted Assets
31,246 x 100
395,670
26,522 x 100
300,276
33,157 x 100
412,304
28,047 x 100
313,078
Total Capital Ratio (minimum ratio - 10%)

Capital Base x 100
Total Risk-weighted Assets
48,490 x 100
395,670
40,897 x 100
300,276
51,619 x 100
412,304
42,954 x 100
313,078
7.90
12.26
8.83
13.62
8.04
12.52
8.96
13.72
Core Capital (Tier I) Ratio (%)

Total Capital Ratio (%)
467
GRI G4 Content Index

GRI G4 : IN ACCORDANCE COMPREHENSIVE
GRI
Indicator
GRI Disclosure Description
Page Reference
External
Assurance
Provided*
GRI
OECD/UNGC
Principles
G4 GENERAL STANDARD DISCLOSURES

STRATEGY AND ANALYSIS
G4-1
Statement from the highest governance body
Yes
46-51
G4-2
A description of key impacts, risks, and opportunities
Yes
55-56
ORGANIZATIONAL PROFILE
G4-3
Name of the organization
Yes
Inner Back Cover
G4-4
Primary brands, products and services
Yes
30-31
G4-5
Location of the organizations headquarters
Yes
Inner Back Cover
G4-6
Number of countries where the organization operates
Yes
125-132
G4-7
Nature of ownership and legal form
Yes
3, Inner Back
Cover
G4-8
Markets served
Yes
117-124
G4-9
Scale of the organization
Yes
133,159
G4-10
Workforce
*UNGC Principle 06 The elimination of discrimination in
respect of employment and occupation
Yes
159
Total employees covered by collective bargaining agreements

*OECD Employment and industrial relations
*UNGC Principle 03 Businesses should uphold the
freedom of association and the effective recognition of the
right to collective bargaining
Yes
G4-12
Organizations supply management procedures
Yes
176-177
G4-13
:PNUPJHU[JOHUNLZK\YPUN[OLYLWVY[PUNWLYPVK
Yes
49-51
G4-11
152-153
149
149-155
149
G4-14
Application of the precautionary principle
Yes
173
G4-15
Details of externally developed economic, environmental and

social charters, principles, or other initiatives
Yes
41
G4-16
Memberships of associations
Yes
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

G4-17
Entities representing the consolidated performance of Sampath

Bank PLC
Yes
327
G4-18
7YVJLZZMVYKLUPUNYLWVY[JVU[LU[HUKHZWLJ[IV\UKHYPLZ
Yes
59-61
G4-19
Material aspects
Yes
60-61
G4-20
Aspect boundaries within the Bank
Yes
60-61
G4-21
Aspect boundaries outside the Bank
Yes
60-61
G4-22
Effects of any restatements
Yes
404
G4-23
:PNUPJHU[JOHUNLZMYVTWYL]PV\ZYLWVY[PUNWLYPVK
Yes
61
:;(2,/63+,9,5.(.,4,5;
G4-24
Stakeholder groups who engage by the organization
Yes
58,145,146,
161,174,175,
178
G4-25
)HZPZMVYPKLU[PJH[PVUHUKZLSLJ[PVUVMZ[HRLOVSKLYZ
Yes
58
G4-26
Organizations approach to stakeholder engagement
Yes
145,146,161,
174,175,178
468
GRI
Indicator
G4-27
External
Assurance
Provided*
Key topics and concerns raised by stakeholders and the Bank's

response to these key topics and concerns
Page Reference
GRI
Yes
145,146,161,
174,175,178
Yes
41
OECD/UNGC
Principles
REPORT PROFILE
G4-28
Reporting period
G4-29
Date of most recent previous report
Yes
41
G4-30
Reporting cycle
Yes
41
G4-31
Contact point for questions regarding the report or its content
Yes
Inner Back Cover
G4-32
In Accordance option selected
Yes
41
G4-33
Assurance
Yes
41,478
GOVERNANCE
G4-34
Governance structure including committees responsible for

decision making on economic, environmental and social impacts
Yes
230,232,233,
235
G4-35
Process for delegating authority for economic, environmental and

social topics
Yes
179
G4-36
Executive-level positions responsible for economic, environmental Yes

and social topics
179,230
G4-37
Processes for consultation between stakeholders and the highest

governance body
57,180
Yes
G4-38
Composition of the highest governance body and its committees
Yes
233-235
G4-39
*OHPYHUKL_LJ\[P]LVMJLYWVZP[PVUZ
Yes
234
G4-40
Nomination and selection processes for Sampath Bank PLCs

Board and its committees
Yes
262,267,275
G4-41
7YVJLZZ[VLUZ\YLJVUPJ[ZVMPU[LYLZ[HYLH]VPKLKH[)VHYKSL]LS
Yes
265,277,278,
292
G4-42
Development, approval and updating of matters related to

economic, environmental and social impacts
Yes
54-55,
228,296
G4-43
Measures taken to develop and enhance the collective

knowledge of the board on economic, environmental and social
topics
Yes
240,243,248
G4-44
Processes for evaluation of the performance of the Board with

regard to economic, environmental and social topics and the
actions taken in response to the evaluation
Yes
240,243,248
G4-45
/PNOLZ[NV]LYUHUJLIVK`ZYVSLPU[OLPKLU[PJH[PVUHUK
management of economic, environmental and social impacts,
risks, and opportunities
Yes
56
G4-46
/PNOLZ[NV]LYUHUJLIVK`ZYVSLPUYL]PL^PUN[OLLMMLJ[P]LULZZVM
the organizations risk management processes
Yes
56
G4-47
Frequency of the highest governance bodys review of economic,

environmental and social impacts, risks, and opportunities
Yes
237-239
G4-48
The committee that formally reviews and approves the

sustainability report to ensure that all material aspects are
covered
Yes
56,59
G4-49
Process for communicating critical concerns to the Board
Yes
254,261
G4-50
Scope and total number of critical concerns that were

communicated to the Board
Yes
172
469
GRI
Indicator
Page Reference
External
Assurance
Provided*
GRI
G4-51
Remuneration policies applicable for the board of directors and

senior management
Yes
251,285,286
G4-52
Process for determining remuneration
Yes
251,285
G4-53
Process of obtaining stakeholders views regarding remuneration
Yes
Not Applicable
G4-54
Ratio of the annual total compensation for the highestpaid individual as a percentage of the median annual total
compensation for all employees (excluding the highest-paid
individual)
No
**
G4-55
Ratio of the increase in annual total compensation for the highest- No

paid individual as a percentage of the median increase in annual
total compensation for all employees (excluding the highest-paid
individual)
**
OECD/UNGC
Principles
,;/0*:(5+05;,.90;@
G4-56
Values, principles, standards and norms of behaviour such as

codes of conduct
Yes
52-53,236
G4-57
Internal and external mechanisms for seeking advice on ethical

and lawful behaviour, and matters related to the Bank's integrity
Yes
257,284
G4-58
Internal and external mechanisms for reporting concerns

regarding unethical or unlawful behaviour, and matters related to
the Bank's integrity
Yes
204,270,284
G4 SPECIFIC STANDARD DISCLOSURES

CATEGORY: ECONOMIC
*OECD Taxation
DMA
346-348
Disclosures on management approach
44-51
ASPECT: ECONOMIC PERFORMANCE

G4-EC1
Direct economic value generated and distributed
Yes
457
G4-EC2
Risks and opportunities posed by climate change
Yes
197
G4-EC3
*V]LYHNLVM[OL)HURZKLULKILUL[WSHUVISPNH[PVUZ
Yes
329,344,392
G4-EC4
Financial assistance received from Government
Yes
348
ASPECT: MARKET PRESENCE

G4-EC5
Standard entry level wage by gender
Yes
146
G4-EC6
Senior management who hired from local community
Yes
159
ASPECT: INDIRECT ECONOMIC IMPACTS

G4-EC7
Development and impact of infrastructure investments and

services supported
Yes
181-182
G4-EC8
0KLU[PLKPUKPYLJ[LJVUVTPJPTWHJ[Z
Yes
183
Yes
177
ASPECT: PROCUREMENT PRACTICES

G4-EC9
Spending on local suppliers
CATEGORY: ENVIRONMENTAL
*OECD VI Environment
*UNGC Principle 07 Precautionary approach to environmental
challenges
*UNGC Principle 08 Initiatives to promote greater environmental
responsibility
*UNGC Principle 09 Developments and diffusion of environmentally
friendly technologies
470
191-200
192
192-195,198200
78-80
GRI
Indicator
DMA
External
Assurance
Provided*
Page Reference
GRI
OECD/UNGC
Principles
191
ASPECT: MATERIALS
G4-EN1
Materials use to produce primary products
Yes
191,195,200
G4-EN2
Recycling mechanisms
Yes
194,200
ASPECT: ENERGY
G4-EN3
Direct energy consumption
Yes (Partial)
192
G4-EN4
Indirect energy consumption
Yes
194
G4-EN5
Energy Intensity
Yes
192
G4-EN6
Energy consumption statistics
Yes
192
G4-EN7
Product related energy consumption
Yes
192
Total water withdrawal by source
Yes (Partial)
194
G4-EN9
>H[LYZV\YJLZHYLZPNUPJHU[S`HMMLJ[LKMYVT^P[OKYH^HSVM^H[LY
Yes
194
G4-EN10
Percentage and total volume of water recycled and reused
Yes
194
ASPECT: WATER
G4-EN8
ASPECT: BIODIVERSITY
G4-EN11
Owned operational sites owned, leased, managed in, or adjacent

to protected areas and areas of high Biodiversity value outside
protected areas
Yes
197
G4-EN12
Yes
:PNUPJHU[PTWHJ[ZVMHJ[P]P[PLZWYVK\J[ZHUKZLY]PJLZVU
biodiversity in protected areas and areas of high biodiversity value
outside protected areas
199
G4-EN13
/HIP[H[ZWYV[LJ[LKVYYLZ[VYLK
Yes
199
G4-EN14
IUCN red list species and national conservation list species with
habitats in areas affected by operations
Yes
199
ASPECT: EMISSIONS
G4-EN15
+PYLJ[NYLLUOV\ZLNHZ./.LTPZZPVUZ:JVWL
Yes
195-197
G4-EN16
,ULYN`PUKPYLJ[NYLLUOV\ZLNHZ./.LTPZZPVUZ:JVWL
Yes
195-197
G4-EN17
6[OLYPUKPYLJ[NYLLUOV\ZLNHZ./.LTPZZPVUZ:JVWL
Yes
195-197
G4-EN18
.YLLUOV\ZLNHZ./.LTPZZPVUZPU[LUZP[`
Yes
195-197
G4-EN19
9LK\J[PVUVMNYLLUOV\ZLNHZ./.LTPZZPVUZ
Yes
191,195-197
G4-EN20
Emissions of ozone-depleting substances (ODS)
Yes
197
G4-EN21
NOX, SOXHUKV[OLYZPNUPJHU[HPYLTPZZPVUZ
Yes
197-199
ASPECT: EFFLUENTS AND WASTE

G4-EN22
Total water discharge by quality and destination
Yes
194
G4-EN23
Total weight of waste by type and disposal method
Yes
194
G4-EN24
;V[HSU\TILYHUK]VS\TLVMZPNUPJHU[ZWPSSZ
Yes
194
G4-EN25
Weight of transported, imported, exported, or treated waste

deemed hazardous under the terms of the Basel convention 2
Yes
194
G4-EN26
Identity, size, protected status, and biodiversity value of

^H[LYIVKPLZHUKYLSH[LKOHIP[H[ZZPNUPJHU[S`HMMLJ[LKI`[OL
organizations discharges of water and runoff
Yes
194
ASPECT: PRODUCTS AND SERVICES

G4-EN27
Mitigation of environmental impacts of products and services
Yes
195
G4-EN28
Product packaging
Yes
194,200
471
GRI
Indicator
Page Reference
External
Assurance
Provided*
GRI
Yes
197
Yes
197
Yes
191
OECD/UNGC
Principles
ASPECT: COMPLIANCE
G4-EN29
Compliance
ASPECT: TRANSPORT
G4-EN30
Environmental impact of transport
ASPECT: OVERALL
G4-EN31
Expenditure incurred on environmental protection
ASPECT: SUPPLIER ENVIRONMENTAL ASSESSMENT

G4-EN32
Environment screening of suppliers
Yes
177
G4-EN33
(ZZLZZTLU[VMZPNUPJHU[HJ[\HSHUKWV[LU[PHSULNH[P]L
environmental impacts in the supply chain and actions taken
Yes
177
Yes
178
(:7,*;!,5=09654,5;(3.90,=(5*,4,*/(50:4:
G4-EN34
Environmental grievances
CATEGORY: SOCIAL
SUB CATEGORY : LABOUR PRACTICES AND DECENT WORK
*UNGC Principle 06 - The elimination of discrimination in respect of
employment and occupation
DMA
149-155
152-153
146
ASPECT: EMPLOYMENT
G4-LA 1
New employee hires and employee turnover
Yes
156
G4-LA 2
)LUL[ZWYV]PKLK[VM\SS[PTLLTWSV`LLZ
Yes
148
G4-LA 3
Parental leave
Yes
157
ASPECT: LABOUR/MANAGEMENT RELATIONS

*UNGC Principle 03 Businesses should uphold the freedom of
association and the effective recognition of the right to collective
bargaining
G4-LA 4
5V[PJLWLYPVKZVUVWLYH[PVUHSJOHUNLZZWLJPLKPUJVSSLJ[P]L
agreements
149
Yes
149
(:7,*;!6**<7(;065(3/,(3;/(5+:(-,;@
*OECD Environment
G4-LA 5
/LHS[OHUKZHML[`JVTTP[[LLZ
153
Yes
153
G4-LA 6
Occupational diseases, lost days and absenteeism
Yes
153,157
G4-LA 7
Workers with high incidence or high risk of diseases related to

their occupation
Yes
153
G4-LA 8
/LHS[OHUKZHML[`[VWPJZJV]LYLKPUMVYTHSHNYLLTLU[Z^P[O[YHKL Yes
unions
149,153
ASPECT: TRAINING AND EDUCATION

*OECD Environment
G4-LA 9 -11 Training and education for employees
151-152,157158
Yes
157-158
ASPECT: DIVERSITY AND EQUAL OPPORTUNITY

*UNGC Women empowerment principles
G4-LA 12
Diversity and equality of committees
153
Yes
159
Yes
160
ASPECT: EQUAL REMUNERATION FOR WOMEN AND MEN

G4-LA 13
472
Remuneration for men and women
GRI
Indicator
Page Reference
External
Assurance
Provided*
GRI
OECD/UNGC
Principles
ASPECT: SUPPLIER ASSESSMENT FOR LABOUR PRACTICES

G4-LA 14
Labour screening practices for suppliers
Yes
177
G4-LA 15
Assessment of potential negative impacts for labour practices in

the supply chain and actions taken
Yes
177
Yes
160
(:7,*;!3()6<979(*;0*,:.90,=(5*,4,*/(50:4:
G4-LA 16
5\TILYVMNYPL]HUJLZHIV\[SHIV\YWYHJ[PJLZSLKHKKYLZZLK
and resolved through formal grievance mechanisms
*OECD Bribe solicitation and extortion
:<)*(;,.69@!/<4(590./;:
6,*+/\THUYPNO[Z
*UNGC Principle 01 Business support and respect towards the
protection of proclaimed human rights
*UNGC Principle 02 Ensure the non-complicit in human right abuses
152
152,157
160
ASPECT: INVESTMENT
./9
:PNUPJHU[PU]LZ[TLU[HNYLLTLU[Z
Yes
184
./9
Training on human rights
Yes
183
ASPECT: NON-DISCRIMINATION
*UNGC Principle 06 - The elimination of discrimination in respect of
employment and occupation
./9
Incidents of discrimination
149-155
152-153
Yes
152
ASPECT: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

*UNGC Principle 03 Businesses should uphold the freedom of
association and the effective recognition of the right to collective
bargaining
./9
6WLYH[PVUZHUKZ\WWSPLYZPKLU[PLKPUÔPJO[OLYPNO[[VL_LYJPZL
freedom of association
149
149
Yes
149,177
(:7,*;!*/03+3()6<9
*UNGC Principle 05 Effective abolition of child labour
./9
Measures taken to the effective abolition of child labour in

operations and suppliers
152,177
152,177
Yes
152,177
ASPECT: FORCED OR COMPULSORY LABOUR

*UNGC Principle 04 Elimination of all forms of forced and compulsory
labour
./9
Measures taken to the elimination of all forms of forced or

compulsory labour
152,177
152,177
Yes
152,177
Yes
153
Yes
152
ASPECT: SECURITY PRACTICES

./9
Training of security personnel in relation to human rights policies

or procedures that are relevant to operations
(:7,*;!05+0.,56<:90./;:
./9
Total number of incidents of violations involving rights of

indigenous people and actions taken
473
GRI
Indicator
Page Reference
External
Assurance
Provided*
GRI
Yes
152
ASPECT: ASSESSMENT
*UNGC principles and principles for responsible investment
./9
Total number and percentage of operations that have been

subject to human rights reviews or impact assessments
OECD/UNGC
Principles
330,367
(:7,*;!:<7730,9/<4(590./;:(::,::4,5;
*UNGC principles and principles for responsible investment
330,367
./9
Supplier screening
Yes
177
./9
Negative human rights impacts in the supply chain
Yes
177
Yes
160
(:7,*;!/<4(590./;:.90,=(5*,4,*/(50:4:
./9
/\THUYPNO[ZNYPL]HUJLZ
SUB CATEGORY: SOCIETY

DMA
178
ASPECT: LOCAL COMMUNITIES

*UNGC Principle 01 - Business support and respect towards the
protection of proclaimed human rights
152,157
G4-SO1
Local community engagement, impact assessments and

development programs
Yes
178,180,182
G4-SO2
6WLYH[PVUZ^P[OZPNUPJHU[HJ[\HSHUKWV[LU[PHSULNH[P]LPTWHJ[Z
on local communities
Yes
181
ASPECT: ANTI-CORRUPTION
*UNGC Principle 10 Business works against all forms of corruption,
including extortion and bribery
176,183,236
G4-SO3
Operations assessed for risks related to corruption and the

ZPNUPJHU[YPZRZPKLU[PLK
Yes
183
G4-SO4
Communication and training on anti-corruption policies and

procedures
Yes
183
G4-SO5
*VUYTLKPUJPKLU[ZVMJVYY\W[PVUHUKHJ[PVUZ[HRLU
Yes
183
ASPECT: PUBLIC POLICY

*UNGC Principle 10 Business works against all forms of corruption
including extortion and bribery
G4-SO6
7VSP[PJHSJVU[YPI\[PVUZI`JV\U[Y`HUKYLJPWPLU[ILULJPHY`
176,183,236
Yes
181
Yes
183
(:7,*;!(5;0*647,;0;0=,),/(=06<9
*OECD Competition
G4-SO7
Legal actions for anti-competitive behaviour, anti-trust and

monopoly practices and their outcomes
183
ASPECT: COMPLIANCE
*OECD Competition
G4-SO8
474
Yes
4VUL[HY`]HS\LVMZPNUPJHU[ULZHUK[V[HSU\TILYVMUVU
monetary sanctions for non-compliance with laws and regulations
183
183
GRI
Indicator
External
Assurance
Provided*
Page Reference
GRI
ASPECT: SUPPLIER ASSESSMENT FOR IMPACTS ON SOCIETY

6,*+/\THUYPNO[Z
*OECD - Environment
*OECD - Bribe solicitation and extortion
*OECD - Competition
175-177
175-177
175-177
G4-SO9
Suppliers screened using criteria for impacts on society
Yes
177
G4-SO10
(ZZLZZTLU[VMZPNUPJHU[HJ[\HSHUKWV[LU[PHSULNH[P]LPTWHJ[Z
on society in the supply chain and actions taken
Yes
177
(:7,*;!.90,=(5*,4,*/(50:4:-69047(*;:65:6*0,;@
6,*+/\THUYPNO[Z
*OECD - Environment
*OECD - Bribe solicitation and extortion
*OECD - Competition
G4-SO11
.YPL]HUJLZHIV\[PTWHJ[ZVUZVJPL[`SLKHKKYLZZLKHUK
resolved through formal grievance mechanisms
180-185
180-185
180-185
Yes
178
SUB CATEGORY: PRODUCT RESPONSIBILITY

*OECD - Consumer interests
DMA
OECD/UNGC
Principles
161-173
161
(:7,*;!*<:;64,9/,(3;/(5+:(-,;@
*OECD - Environment
161-173
G4-PR1
Safety of products and services
Yes
171
G4-PR2
/LHS[OHUKZHML[`JVTWSPHUJL
Yes
171
Yes
170
ASPECT: PRODUCT AND SERVICE LABELLING

G4-PR3
Product information and labelling
G4-PR4
Compliance
Yes
170
G4-PR5
Results of surveys measuring customer satisfaction
Yes
169
ASPECT: MARKETING COMMUNICATIONS

G4-PR6
Banned or disputed products
Yes
163
G4-PR7
Compliance
Yes
163
Yes
171
Yes
172
ASPECT: CUSTOMER PRIVACY

G4-PR8
Customer complaints on customer privacy
ASPECT: COMPLIANCE
G4-PR9
Overall compliance of all aspects pertaining to product

responsibility
(SS[OLZ[HUKHYKKPZJSVZ\YLHUKZWLJPJZ[HUKHYKKPZJSVZ\YLP[LTZPUHJJVYKHUJL[V.90.OH]LILLUHZZ\YLKI`L_[LYUHSH\KP[VYZ,YUZ[HUK@V\UN7SLHZL
refer the page number 478 for the External Assurance Statement on sustainability in this regard.
** Information cannot be disclosed.
475
GRI Financial Services Sector Disclosures

SPECIFIC STANDARD DISCLOSURES FOR THE SECTOR
Indicator
:LJ[VY:WLJPJ+PZJSVZ\YLZ
Page Reference
CATEGORY: ECONOMIC
DMA
Economic performance
179,182
G4-EC1
Direct economic value generated and distributed
181-190,457
CATEGORY: ENVIRONMENTAL
G4-EN15
+PYLJ[NYLLUOV\ZLNHZ./.LTPZZPVUZZJVWL
196,197
G4-EN16
,ULYN`PUKPYLJ[NYLLUOV\ZLNHZ./.LTPZZPVUZZJVWL
196,197
G4-EN17
6[OLYPUKPYLJ[NYLLUOV\ZLNHZ./.LTPZZPVUZZJVWL
196,197
G4-EN23
,M\LU[ZHUK^HZ[L
194
CATEGORY: SOCIAL
SUB CATEGORY: Labour Practices and Decent Work
DMA
Occupational health and safety
151-152,173
:<)*(;,.69@!/\THU9PNO[Z
./9
Investment
No
SUB CATEGORY: Society

DMA
Local Communities
FS13
Access points in low-populated or economically disadvantaged areas by type
166
FS14
0UP[PH[P]LZ[VPTWYV]LHJJLZZ[VUHUJPHSZLY]PJLZMVYKPZHK]HU[HNLKWLVWSL
166-168
SUB CATEGORY: Product Responsibility

DMA
Product and Service Labelling
FS15
7VSPJPLZMVY[OLMHPYKLZPNUHUKZHSLVMUHUJPHSWYVK\J[ZHUKZLY]PJLZ
163
FS16
0UP[PH[P]LZ[VLUOHUJLUHUJPHSSP[LYHJÌ`[`WLVMILULJPHY`
93-94,183-185
DMA
Product Portfolio
FS1
7VSPJPLZ^P[OZWLJPJLU]PYVUTLU[HSHUKZVJPHSJVTWVULU[ZHWWSPLK[VI\ZPULZZSPULZ
179-180,198-200
FS2
Procedures for assessing and screening environmental and social risks in business lines
202-225
FS3
Processes for monitoring clients implementation of and compliance with environmental and social requirements
included in agreements or transactions
No
FS4
Process(es) for improving staff competency to implement the environmental and social policies and procedures as No
applied to business lines
FS5
Interactions with clients/investees/business partners regarding environmental and social risks and opportunities
No
FS6
7LYJLU[HNLVM[OLWVY[MVSPVMVYI\ZPULZZSPULZI`ZWLJPJYLNPVUZPaLLN4PJYV:4,3HYNLHUKI`ZLJ[VY
No
FS7
4VUL[HY`]HS\LVMWYVK\J[ZHUKZLY]PJLZKLZPNULK[VKLSP]LYHZWLJPJZVJPHSILUL[MVYLHJOI\ZPULZZSPULIYVRLU No
down by purpose
FS8
4VUL[HY`]HS\LVMWYVK\J[ZHUKZLY]PJLZKLZPNULK[VKLSP]LYHZWLJPJLU]PYVUTLU[HSILUL[MVYLHJOI\ZPULZZ
line broken down by purpose
No
DMA
Audit
FS9
Coverage and frequency of audits to assess implementation of environmental and social policies and risk
assessment procedures
DMA
Active Ownership
FS12
Voting policy(ies) applied to environmental or social issues for shares over which the reporting organization holds
the right to vote shares or advises on voting
No
FS10
Percentage and number of companies held in the institutions portfolio with which the reporting organization has
interacted on environmental or social issues
No
FS11
Percentage of assets subject to positive and negative environmental or social screening
No
476
No
Supplementary Sustainability Indices

IFC Sustainability Framework Index
No
Performance Standard Disclosure
Page Reference
Assessment and management of environmental and social risks and impacts
180,182,202-225
Labour and working conditions
146-160
9LZV\YJLLMJPLUJ`HUKWVSS\[PVUWYL]LU[PVU
192-195
Community health, safety and security
171,173,182
Land acquisition and involuntary resettlement
No
Biodiversity conservation and sustainable management of living natural resources
199-200
Indigenous people
152
Cultural heritage
No
International Integrated Reporting Framework: Six Capital Index

(Note: Please refer page 52-53 for Value Creation Business Model)
Capitals
Description
Page Reference
Financial capital
Funds available to an organization for use in the production of goods or the

provision of services.
320-324
6I[HPULK[OYV\NOUHUJPUNZ\JOHZKLI[LX\P[`VYNYHU[ZVYNLULYH[LK[OYV\NO 322-326
operations or investments.
Manufactured
capital
Manufactured physical objects (as distinct from natural physical objects) that are
available to an organization for use in the production of goods or the provision of
services.
78-80,110,117,163168,
Intellectual capital
Intellectual property
30-31
Organizational capital such as tacit knowledge, systems, procedures and

protocols.
109-111,195
Alignment with and support for an organizations governance framework, risk

management approach, and ethical values.
203,228-230
Ability to understand, develop and implement an organizations strategy.
144-145
Loyalties and motivations for improving processes, goods and services, including
their ability to lead, manage and collaborate.
54-56
/\THUJHWP[HS
Social and
Shared norms and common values and behaviours
Relationship Capital
Key stakeholder relationships, and the trust and willingness to engage that
an organization has developed and strives to build and protect with external
stakeholders.
52-53
Natural capital
92,195,200
All renewable and nonrenewable environmental resources and processes that

provide goods or services that support the past, current or future prosperity of an
organization.
57-58,145-200
477
Independent Assurance Report
Independent Assurance Report

to Sampath Bank PLC on the
Sustainability Reporting Criteria
Presented Under the Integrated
Annual Report- 2015
Introduction and scope of the
engagement
The management of Sampath Bank PLC
(the Bank) engaged us to provide an
independent assurance on the following
elements of the sustainability reporting
criteria presented under the annual report2015 (the Report).
Reasonable assurance on the information
VUUHUJPHSWLYMVYTHUJLHZZWLJPLKVU
page 457 of the Report.
Limited assurance on other information
presented in the Report, prepared in
accordance with the requirements of
the Global Reporting Initiative G4 In
accordance - Comprehensive guidelines.
Basis of our work and level of assurance

We performed our procedures to provide
limited assurance in accordance with Sri
Lanka Standard on Assurance Engagements
(SLSAE 3000): Assurance Engagements
6[OLY[OHU(\KP[ZVY9L]PL^ZVM/PZ[VYPJHS
Financial Information, issued by the Institute
of Chartered Accountants of Sri Lanka
(CASL).
The evaluation criteria used for this limited
assurance engagement are based on the
Sustainability Reporting Guidelines (GRI
Guidelines) and related information in
particular, the requirements to achieve
GRI G4 In accordance - Comprehensive
guideline publication, publicly available
at GRIs global website at www.
globalreporting.org.
Our engagement provides limited assurance
as well as reasonable assurance. A limited
assurance engagement is substantially
less in scope than a reasonable assurance
engagement conducted in accordance with
SLSAE-3000 and consequently does not
478
enable to obtain assurance that we would

ILJVTLH^HYLVMHSSZPNUPJHU[TH[[LYZ[OH[
TPNO[ILPKLU[PLKPUHYLHZVUHISLHZZ\YHUJL
engagement. Accordingly, we do not express
an opinion providing reasonable assurance.
Management of the Banks responsibility

for the Report
The management of the bank is responsible
for the preparation of the self-declaration, the
information and statements contained within
the Report, and for maintaining adequate
records and internal controls that are
designed to support the sustaining reporting
process in line with the GRI Sustainability
Reporting Guidelines.
Ernst & Youngs responsibility
Our responsibility is to express a conclusion
as to whether we have become aware of
any matter that causes us to believe that the
Report is not prepared in accordance with
the requirements of the Global Reporting
Initiative G4 In accordance - Comprehensive
guidelines. This report is made solely to the
Bank in accordance with our engagement
letter dated 09 December 2015. We disclaim
any assumption of responsibility for any
reliance on this report to any person other
than the bank or for any purpose other than
that for which it was prepared. In conducting
our engagement, we have complied with the
independence requirements of the Code for
Ethics for Professional Accountants issued
by the CASL.
Key assurance procedures
We planned and performed our procedures
to obtain the information and explanations
JVUZPKLYLKULJLZZHY`[VWYV]PKLZ\MJPLU[
evidence to support our limited assurance
conclusions. Key assurance procedures
included:
Interviewing relevant banks personnel
to understand the process for collection,
analysis, aggregation and presentation of
data.
Reviewing and validation of the
information contained in the Report.
Checking the calculations performed

by the bank on a sample basis through
recalculation.
Reconciling and agreeing the data
VUUHUJPHSWLYMVYTHUJLHYLWYVWLYS`
KLYP]LKMYVT[OLIHURZH\KP[LKUHUJPHS
statements for the year ended 31
December 2015.
Comparison of the content of the
Report against the criteria for a Global
Reporting Initiative G4 In accordance Comprehensive guidelines.
Our procedures did not include testing
electronic systems used to collect and
aggregate the information.
Limitations and considerations

Environmental and social performance data
are subject to inherent limitations given
their nature and the methods used for
determining, calculating and estimating such
data.
Conclusion
Based on the procedures performed, as
described above, we conclude that;
;OLPUMVYTH[PVUVUUHUJPHSWLYMVYTHUJL
HZZWLJPLKVUWHNLVM[OL9LWVY[
are properly derived from the audited
UHUJPHSZ[H[LTLU[ZVM[OL)HURMVY[OL
year ended 31 December 2015.
Nothing has come to our attention
that causes us to believe that other
information presented in the Report
are not fairly presented, in all material
respects, in accordance with the Banks
sustainability practices and policies
some of which are derived from GRIG4-In accordance Comprehensive
Sustainability Reporting Guidelines.
Ernst & Young

16 February 2016
Colombo
Glossary of Financial and Banking Terms

A
Acceptances
Promise to pay created when the drawee
of a time draft stamps or writes the word
"accepted" above his signature and a
designated payment date.
Accounting Policies
;OLZWLJPJWYPUJPWSLZIHZLZ
conventions, rules and practices adopted
by an entity in preparing and presenting
Accrual Basis
Recognition of the effects of transactions
and other events when they occur
without waiting for receipt or payment of
cash or its equivalents.
Amortisation
The systematic allocation of the
depreciable amount of an intangible asset
over its useful life.
Amortised Cost
;OLHTVY[PZLKJVZ[VMHUHUJPHSHZZL[
VYUHUJPHSSPHIPSP[`PZ[OLHTV\U[H[
ÔPJO[OLUHUJPHSHZZL[VYUHUJPHS
liability is measured at initial recognition
minus principal repayments, plus or
minus the cumulative amortisation using
the effective interest method of any
difference between that initial amount
and the maturity amount, and minus any
reduction (directly or through the use of
an allowance account) for impairment or
uncollectability.
Asset and Liability Committee (ALCO)
A risk-management committee in a bank
that generally comprises the seniormanagement levels of the institution.
The ALCOs primary goal is to evaluate,
monitor and approve practices relating
to risk due to imbalances in the capital
structure. Among the factors considered
are liquidity risk, interest rate risk,
operational risk and external events
that may affect the banks forecast and
strategic balance-sheet allocations.
Associate Company
An associate is an entity, including
an unincorporated entity such as a
partnership, over which the investor has
ZPNUPJHU[PU\LUJLHUK[OH[PZULP[OLY
a subsidiary nor an interest in a joint
venture.
International Settlement (BIS) and as

TVKPLK[VZ\P[SVJHSYLX\PYLTLU[ZI`[OL
Central Bank of Sri Lanka.
Available For Sale (AFS) Financial

Assets
5VUKLYP]H[P]LUHUJPHSHZZL[Z[OH[HYL
designated as available for sale or are not
JSHZZPLKHZHSVHUZHUKYLJLP]HISLZ
(b) held-to-maturity investments or (c)
UHUJPHSHZZL[ZH[MHPY]HS\L[OYV\NOWYV[
or loss.
Cash Equivalents
Cash equivalents are short-term, highly
liquid investments that are readily
convertible to known amounts of cash
HUKÔPJOHYLZ\IQLJ[[VHUPUZPNUPJHU[
risk of changes in value.
Average Weighted Deposit Rate

(AWDR)
AWDR is calculated by the Central
Bank monthly based on the weighted
average of all outstanding interest bearing
deposits of commercial banks and the
corresponding interest rates.
Average Weighted Prime Lending Rate
(AWPLR)
AWPLR is calculated by the Central Bank
weekly based on commercial bank's
lending rates offered to their prime
customers during the week.
Cash Flows
*HZOV^ZHYLPUV^ZHUKV\[V^ZVM
cash and cash equivalents.
Collectively Assessed Loan
Impairment Provisions
Also known as portfolio impairment
provisions. Impairment assessment on
a collective basis for homogeneous
groups of loans that are not considered
PUKP]PK\HSS`ZPNUPJHU[HUK[VJV]LYSVZZLZ
that has been incurred but has not yet
ILLUPKLU[PLKH[[OLYLWVY[PUNKH[L
Typically assets within the consumer
banking business (housing, personal,
vehicle loans, credit cards etc) are
assessed on a portfolio basis.
Basel III
Commercial Paper (CP)

An unsecured, short-term debt
instrument issued by a corporation,
[`WPJHSS`MVY[OLUHUJPUNVMHJJV\U[Z
receivable, inventories and meeting shortterm liabilities. The debt is usually issued
H[HKPZJV\U[YLLJ[PUNWYL]HPSPUNTHYRL[
interest rates.
The BCBS issued the Basel III rules

text, which presents the details of
strengthened global regulatory standards
on bank capital adequacy and liquidity.
Commitments
Credit facilities approved but not yet
utilized by the clients as at the reporting
date.
Bills sent for Collection

A bill of exchange drawn by an exporter
usually at a term, on an importer overseas
and brought by the exporter to his bank
with a request to collect the proceeds.
Consolidated Financial Statements

*VUZVSPKH[LKUHUJPHSZ[H[LTLU[ZHYL[OL
UHUJPHSZ[H[LTLU[ZVMHNYV\WPUÔPJO
the assets, liabilities, equity, income,
L_WLUZLZHUKJHZOV^ZVM[OLWHYLU[
and its subsidiaries are presented as
those of a single economic entity.

The percentage of risk-adjusted assets
Z\WWVY[LKI`JHWP[HSHZKLULK\UKLY
the framework of risk-based capital
standards developed by the Bank for
Contingencies
A condition or situation, the ultimate
outcome of which (gain or loss) will be
JVUYTLKVUS`VU[OLVJJ\YYLUJLVY
Basel II
The capital adequacy framework issued
by the Basel Committee on Banking
Supervision (BCBS) in the form of the
International Convergence of Capital
Measurement and Capital Standards.
479
non-occurrence of one or more uncertain

future events.
Control
An investor controls an investee when
the investor is exposed, or has rights, to
variable returns from its involvement with
the investee and has the ability to affect
those returns through its power over the
investee.
The process by which corporate entities
are governed. It is concerned with the
way in which power is exercised over
the management and direction of entity,
the supervision of executive actions and
accountability to owners and others.
Correspondent Bank
A bank in a foreign country that offers
banking facilities to the customers of a
bank in another country.
Cost Method
A method of accounting whereby the
investment is recorded at cost. The
0UJVTL:[H[LTLU[YLLJ[ZPUJVTLMYVT
the investment only to the extent that
the investor receives distributions from
HJJ\T\SH[LKUL[WYV[ZVM[OLPU]LZ[LL
arising subsequent to the date of
acquisition.
&RVW3XVK,QDWLRQ
A continuous increase in average price
levels due to an increase in production
costs.
Cost to Income Ratio
Operating expenses excluding
impairment charge for loans and other
losses as a percentage of total operating
income.
Country Risk
The risk that a foreign government will
UV[M\SSSP[ZVISPNH[PVUZVYVIZ[Y\J[Z[OL
remittance of funds by debtors, either for
UHUJPHSYLHZVUZ[YHUZMLYYPZRVYMVYV[OLY
reasons (political risk).
Credit Rating
An evaluation of a corporate's ability to
repay its obligations or likelihood of not
defaulting, carried out by an independent
rating agency.
480
Credit Risk
*YLKP[YPZRPZ[OLYPZRVMUHUJPHSSVZZ[V
the Bank if a customer or counter party
[VHUHUJPHSPUZ[Y\TLU[MHPSZ[VTLL[
its contractual obligations, and arises
principally from the loans and advances
to customers and other banks and
investment debt securities.
Credit Risk Mitigation
A technique to reduce the credit
risk associated with an exposure by
application of credit risk mitigants such
as collateral, guarantee and credit
protection.
Currency Risk
The risk that the fair value or future
JHZOV^ZVMHUHUJPHSPUZ[Y\TLU[^PSS
\J[\H[LILJH\ZLVMJOHUNLZPUMVYLPNU
exchange rates.
Currency SWAPs
The simultaneous purchase of an amount
of a currency for spot settlement and the
sale of the same amount of the same
currency for forward settlement.
Customer Deposits
Money deposited by account holders.
Such funds are recorded as liabilities.
D
Deferred Tax
:\TZL[HZPKLPU[OLUHUJPHSZ[H[LTLU[Z
for taxation that may become payable/
YLJLP]HISLPUHUHUJPHS`LHYV[OLY
[OHU[OLJ\YYLU[UHUJPHS`LHY0[HYPZLZ
because of temporary differences
between tax rules and accounting
conventions.
Delinquency
(KLI[VYV[OLYUHUJPHSVISPNH[PVUPZ
considered to be in a state of delinquency
when payments are overdue. Loans and
advances are considered to be delinquent
when consecutive payments are missed.
Also known as Arrears.
Depreciation
The systematic allocation of the
depreciable amount of an asset over its
useful life.
Derecognition
Derecognition is the removal of a
WYL]PV\ZS`YLJVNUPZLKUHUJPHSHZZL[VY
UHUJPHSSPHIPSP[`MYVTHULU[P[`ZZ[H[LTLU[
VMUHUJPHSWVZP[PVU
Derivatives
(KLYP]H[P]LPZHUHUJPHSPUZ[Y\TLU[
or other contract, the value of which
changes in response to some underlying
variable (e.g. an interest rate), that has an
initial net investment smaller than would
be required for other instruments that
have a similar response to the variable,
and that will be settled at a future date.
Discount Rate
A rate used to place a current value on
M\[\YLJHZOV^Z0[PZULLKLK[VYLLJ[
the fact that money has a time value.
Dividend Cover
7YV[HM[LY[H_KP]PKLKI`NYVZZKP]PKLUK
This ratio measures the number of times
dividend is covered by the current years
KPZ[YPI\[HISLWYV[Z
Dividend Yield
Dividend earned per share as a
percentage of its market value.
Documentary Letters of Credit (LCs)
Written undertakings by a bank on
behalf of its customers, authorising a
third party to draw on the Bank up to a
Z[PW\SH[LKHTV\U[\UKLYZWLJPJ[LYTZ
and conditions. Such undertakings are
established for the purpose of facilitating
international trade.
E
Earnings per Share (EPS)
;OLWYV[H[[YPI\[HISL[VLHJOVYKPUHY`
ZOHYLPU[OL)HURIHZLKVU[OLWYV[MVY
the period after tax and after deducting
minority interest and preference share
Dividend.
Economic Value Added (EVA)
A measure of productivity which takes
into consideration cost of total invested
equity.
Effective Interest Rate (EIR)
Rate that exactly discounts estimated
future cash payments or receipts
[OYV\NO[OLL_WLJ[LKSPMLVM[OLUHUJPHS
instruments or, when appropriate, a

shorter period to the net carrying amount
VM[OLUHUJPHSHZZL[VYUHUJPHSSPHIPSP[`
Effective Tax Rate (ETR)
Provision for taxation excluding deferred
[H_KP]PKLKI`[OLWYV[ILMVYL[H_H[PVU
Equity Instrument
An equity instrument is any contract
that evidences a residual interest in the
assets of an entity after deducting all of
its liabilities.
Equity Method
The equity method is a method of
accounting whereby the investment is
initially recognised at cost and adjusted
thereafter for the post-acquisition change
in the investors share of net assets of the
PU]LZ[LL;OLWYV[VYSVZZVM[OLPU]LZ[VY
PUJS\KLZ[OLPU]LZ[VYZZOHYLVM[OLWYV[
or loss of the investee.
ESOP (Employee Share Ownership
Plan)
A method of giving employees shares in
the business for which they work.
Events after the Reporting Period
Events after the reporting period
are those events, favourable and
unfavourable, that occur between the end
of the reporting period and the date when
[OLUHUJPHSZ[H[LTLU[ZHYLH\[OVYPZLK
for issue
Expected Loss (EL)
A regulatory calculation of the amount
expected to be lost on an exposure using
a 12 month time horizon and downturn
loss estimates. EL is calculated by
multiplying the Probability of Default (a
percentage) by the Exposure at Default
(an amount) and Loss Given Default (a
percentage).
Exposure
A claim, contingent claim or position
ÔPJOJHYYPLZHYPZRVMUHUJPHSSVZZ
F
Fair Value
Fair Value is the price that would be
received to sell an asset or paid to
transfer a liability in an orderly transaction
between market participants at the
measurement date.
Finance Lease
(UHUJLSLHZLPZHSLHZL[OH[[YHUZMLYZ
incidental to ownership of an asset. Title
may or may not eventually be transferred.
Financial Guarantee Contract
(UHUJPHSN\HYHU[LLJVU[YHJ[PZH
contract that requires the issuer to make
ZWLJPLKWH`TLU[Z[VYLPTI\YZL[OL
holder for a loss it incurs because a
ZWLJPLKKLI[VYMHPSZ[VTHRLWH`TLU[
when due in accordance with the original
VYTVKPLK[LYTZVMHKLI[PUZ[Y\TLU[
Financial Instrument
Financial instrument is any contract that
NP]LZYPZL[VHUHUJPHSHZZL[VMVULLU[P[`
HUKHUHUJPHSSPHIPSP[`VYLX\P[`PUZ[Y\TLU[
of another entity.
Firm Commitment
(YTJVTTP[TLU[PZHIPUKPUN
agreement for the exchange of a
ZWLJPLKX\HU[P[`VMYLZV\YJLZH[H
ZWLJPLKWYPJLVUHZWLJPLKM\[\YLKH[L
or dates.
Foreign Exchange Income
The realised gain recorded when assets
or liabilities denominated in foreign
currencies are translated into Sri Lankan
Rupees on the reporting date at prevailing
rates which differ from those rates in force
at inception or on the previous reporting
date. Foreign exchange income also
arises from trading in foreign currencies.
neither the intention nor the need to

liquidate or curtail materially the scale of
its operations.
Gross Dividend
;OLWVY[PVUVMWYV[ZKPZ[YPI\[LK[V[OL
shareholders including the tax withheld.
Group
A group is a parent and its subsidiaries.
Guarantees
A promise made by a third party
(guarantor), who is not a party to a
contract between two others, that the
guarantor will be liable if the guarantee
MHPSZ[VM\SSS[OLJVU[YHJ[\HSVISPNH[PVUZ
H
Hedging
A strategy under which transactions
are effected with the aim of providing
cover against the risk of unfavourable
price movements (interest rate, foreign
exchange rate, commodity prices, etc)
Held to Maturity (HTM) Financial
Assets
/LSK[VTH[\YP[`PU]LZ[TLU[ZHYLUVU
KLYP]H[P]LUHUJPHSHZZL[Z^P[O_LK
VYKL[LYTPUHISLWH`TLU[ZHUKH_LK
maturity that an entity has the positive
intention and ability to hold to maturity.
Forward Exchange Contract

Agreement between two parties to
exchange one currency for another at a
future date at a rate agreed upon today.
High Quality Liquid Assets (HQLA)

/83(HYLHZZL[Z[OH[JHUILLHZPS`HUK
immediately converted into cash at little
or no loss of value, that can be readily
sold or used as collateral to obtain
funds in a range of stress scenarios and
are unencumbered, i.e., without legal,
regulatory or operational impediments.
Global Reporting Initiative (GRI)

GRI is a leading organization in the
Z\Z[HPUHIPSP[`LSK.90WYVTV[LZ[OL
use of sustainability reporting as a
way for organizations to become more
sustainable and contribute to sustainable
development.
Impaired Loans
Impaired loans are loans where the
Group does not expect to collect all
[OLJVU[YHJ[\HSJHZOV^ZVYL_WLJ[Z
to collect them later than they are
contractually due.
Going Concern
;OLUHUJPHSZ[H[LTLU[ZHYLUVYTHSS`
prepared on the assumption that an
entity is a going concern and will continue
in operation for the foreseeable future.
/LUJLP[PZHZZ\TLK[OH[[OLLU[P[ÒHZ
Impairment
This occurs when recoverable amount of
an asset is less than its carrying amount.
Impairment Provisions
Impairment provisions are provisions held
on the Statement of Financial Position as
481
a result of the raising of a charge against

WYV[MVY[OLPUJ\YYLKSVZZ
responsibility for planning, directing and

controlling the activities of the entity.
,QGLYLGXDOO\6LJQLFDQW/RDQ
,PSDLUPHQW3URYLVLRQ6SHFLF
Impairment Provision)
Impairment is measured individually for
HZZL[Z[OH[HYLPUKP]PK\HSS`ZPNUPJHU[[V
the Group.
Intangible Asset
(UPU[HUNPISLHZZL[PZHUPKLU[PHISL
non-monetary asset without physical
substance.
Interest Cover
A ratio showing the number of times
interest charges is covered by earnings
before interest and tax.
Interest Margin
Net interest income expressed as a
percentage of average interest earning
assets.
Interest Rate Risk
The risk that the fair value or future
JHZOV^ZVMHUHUJPHSPUZ[Y\TLU[^PSS
\J[\H[LILJH\ZLVMJOHUNLZPUTHYRL[
interest rates.
Interest Rate SWAP
An agreement between two parties where
one stream of future interest payments is
exchanged for another stream of future
PU[LYLZ[WH`TLU[ZIHZLKVUHZWLJPLK
principal amount.
Interest Spread
This represents the difference between
the average interest rate earned and the
average interest rate paid on funds.
Investment Properties
Investment property is property (land
or a building - or part of a building or
both) held (by the owner or by the lessee
\UKLYHUHUJLSLHZL[VLHYUYLU[HSZVY
for capital appreciation or both, rather
than for use in the production or supply
of goods or services or for administrative
services; or sale in the ordinary course of
business.
Liquidity Coverage Ratio (LCR)

Banks are required to maintain an
HKLX\H[LSL]LSVM\ULUJ\TILYLK/PNO
8\HSP[`3PX\PK(ZZL[Z/83([OH[JHUIL
converted into cash to meet their liquidity
needs for a 30 calendar day time horizon
\UKLYHZPNUPJHU[S`ZL]LYLSPX\PKP[`Z[YLZZ
scenario. LCR is computed by dividing
[OLZ[VJRVM/83(I`[OL[V[HSUL[JHZO
V\[V^ZV]LY[OLUL_[JHSLUKHYKH`Z
Liquid Assets
Assets that are held in cash or in a form
that can be converted to cash readily,
such as deposits with other banks, bills of
exchange and treasury bills and bonds.
Liquidity Risk
The risk that an entity will encounter
KPMJ\S[`PUTLL[PUNVISPNH[PVUZHZZVJPH[LK
^P[OUHUJPHSSPHIPSP[PLZ
Loans and Receivables
5VUKLYP]H[P]LUHUJPHSHZZL[Z^P[O_LK
or determinable payments that are not
quoted in an active market other than
those intends to sell immediately or in the
near term and designated as fair value
[OYV\NOWYV[VYSVZZVYH]HPSHISLZHSLVU
initial recognition.
Loss Given Default (LGD)
LGD is the percentage of an exposure
that a lender expects to loose in the event
of obligor default.
M
Market Capitalisation
The value of a company obtained by
multiplying the number of ordinary shares
in issue by its market value as at a date.
Market Risk
Market risk is the risk that changes in
market prices, such as interest rates,
equity prices, foreign exchange rates and
credit spreads (not relating to changes in
the obligors/issuers credit standing) will
affect the Banks income or the value of
P[ZOVSKPUNZVMUHUJPHSPUZ[Y\TLU[Z

Key management personnel are
those persons having authority and
482
Materiality
;OLYLSH[P]LZPNUPJHUJLVMH[YHUZHJ[PVU
or an event, the omission or misstatement
VMÔPJOJV\SKPU\LUJL[OLKLJPZPVUZVM
\ZLYZVMUHUJPHSZ[H[LTLU[Z
N
Net Asset Value Per Share
Shareholders funds divided by the
number of ordinary shares in issue.
Net-Interest Income (NII)
The difference between what a bank
earns on assets such as loans and
securities and what it pays on liabilities
Z\JOHZKLWVZP[ZYLUHUJLM\UKZHUK
inter-bank borrowings.
Nostro Account
A bank account held in foreign country
by a domestic bank, denominated in the
currency of that country. Nostro accounts
are used to facilitate the settlement of
foreign exchange trade transactions.
Non-Controlling Interest
Non controlling interest is the equity in
a subsidiary not attributable, directly or
indirectly to a parent.
O
Operational Risk
Operational risk refers to the losses
arising from fraud, negligence, oversight,
human error, process errors, system
failures, external events, etc.
P
Parent
A parent is an entity that controls one or
more entities.
Power
The Power is the existing rights that give
the current ability to direct the relevant
activities.
Price Earnings Ratio (P/E Ratio)
The current market price of the share is
divided by the earnings per share of the
Bank.
Probability of Default (PD)
The probability that an obligor will default
within a one-year time horizon.
Prudence
Inclusion of a degree of caution in the
exercise of judgment needed in making
the estimates required under conditions
of uncertainty, such that assets or income
are not overstated and liabilities or
expenses are not understated.
R
Relevant Activities
Relevant activities are activities of the
PU]LZ[LL[OH[ZPNUPJHU[S`HMMLJ[[OL
investee's returns.
Repurchase Agreement
This is a contract to sell and subsequently
repurchase government securities at a
NP]LUWYPJLVUHZWLJPLKM\[\YLKH[L
Return on Average Assets (ROA)
7YV[HM[LY[H_L_WYLZZLKHZHWLYJLU[HNL
of average total assets, used along with
96,HZHTLHZ\YLVMWYV[HIPSP[`HUK
as a basis of intra-industry performance
comparison.
Return on Average Equity (ROE)
7YV[HM[LY[H_SLZZWYLMLYYLKZOHYL
dividends if any, expressed as a
percentage of average ordinary
shareholders equity.
Revenue Reserves
Reserves set aside for future distribution
and investment.
Reverse Repurchase Agreement
Transaction involving the purchase of
government securities by a bank or
dealer and resale back to the seller at a
NP]LUWYPJLVUHZWLJPJM\[\YLKH[L
Rights Issue
Issue of shares to the existing
shareholders at an agreed price, generally
lower than market price.
Risk-weighted Assets
Used in the calculation of risk-based
capital ratios. The face amount of lower
risk assets is discounted using risk
^LPNO[PUNMHJ[VYZPUVYKLY[VYLLJ[H
comparable risk per rupee among all
types of assets. The risk inherent in
commitment & contingencies is also
YLJVNUPZLKYZ[I`HKQ\Z[PUNUV[PVUHS
values to Statement of Financial Position
(or credit) equivalents and then by

applying appropriate risk weighting
factors.
U
Unit Trust
An undertaking formed to invest in
securities under the terms of a trust deed.
S
Segmental Analysis
(UHS`ZPZVMUHUJPHSPUMVYTH[PVUI`
ZLNTLU[ZVMHULU[LYWYPZLZWLJPJHSS`
the different industries and the different
geographical areas in which it operates.
Useful Life
Useful life is the period over which an
asset is expected to be available for use
by an entity or the number of production
or similar units expected to be obtained
from the asset by an entity.
Shareholders Funds
Total of issued and fully paid share capital
and capital and revenue reserves.
Single Borrower Limit

30% of Tier II Capital.
Statutory Reserve Fund
A capital reserve created as per the
provisions of the Banking Act No. 30 of
1988.
Subsidiary
A Subsidiary is an entity that is controlled
by another entity.
Substance over Form
The consideration that the accounting
[YLH[TLU[HUK[OLWYLZLU[H[PVUPUUHUJPHS
statements of transactions and events
should be governed by their substance
HUKUHUJPHSYLHSP[`HUKUV[TLYLSÌ`
legal form.
Value Added
Wealth created by providing banking
and other services less the cost of
providing such services. The value added
is allocated among the employees, the
providers of capital, to government by
way of taxes and retained for expansion
and growth.
Vostro Account
A local currency account maintained by
a local bank for a foreign (correspondent)
bank. For the foreign bank, it is a nostro
account. The domestic bank acts as
custodian or manages the account of a
foreign counterpart.
Y
Yield to Maturity
Discount rate at which the present value
of future payments would equal the
securitys current price.
Tier I Capital (Core Capital)

Consists of the sum total of paid up
ordinary shares, non cumulative & non
redeemable preference shares, share
premium, statutory reserve funds,
W\ISPZOLKYL[HPULKWYV[ZNLULYHS V[OLY
reserves less goodwill.
Tier II Capital (Supplementary Capital)
Supplementary capital includes, approved
revaluation reserves, general provisions,
hybrid (debt/equity) capital items and
approved subordinated term debts.
Total Capital
Capital base is summation of the core
capital (Tier I) and the supplementary
capital (Tier II).
483
Abbreviations
&
And
BIA
Business Impact Analysis
CNY
Chinese Yuan Renminbi
24/7-365
At any time, all year round
BIRMC
CO2e
AC
Air Conditioner

ACU
Asian Clearing Union
BIS
ADB
Asian Development Bank
Bank for International

Settlements
Carbon Dioxide Equivalent,

is a standard unit for
measuring carbon
footprints
Emirati Dirham
Bn
Billions
CRIB
AED
AFS
Available for Sale
BNO
Bank Notes Operation

of Sri Lanka
BOD
Board of Directors
CRMU
Credit Risk Management

Unit
BRPTRC
CRRF
Credit Risk Review

Function
Asset & Liability

Board Related Party

Transaction Review
Committee
BSS
Baseline Standard
CSE
Colombo Stock Exchange
Anti Money Laundering
BWC
Bolgoda Wetland Complex
CSR
AML
Corporate Social
Responsibility
API
Application Program
Interface
CAD
Canadian Dollar
DBU
Development Banking Unit
CAR
DGM
Deputy General Manager
A self-contained program
or piece of software
KLZPNULK[VM\SSSH
particular purpose; an
application, especially as
downloaded by a user to a
mobile device.
CASA
Current and Savings

Accounts
DKK
Danish Krone
CASL
Chartered Accountants of
Sri Lanka (ICASL)
DPS
Dividend per Share
DRP
Disaster Recovery Plan
D-SIB
Domestic Systemically
Important Bank
EAR
Earnings at Risk
ASA
ED
Executive Director
AGM
ALCO
APP
Assistant General
Manager/Annual General
Meeting (as appropriate)
CBSL
Central Bank of Sri Lanka
CCB
Capital Conservation Buffer
Alternative Standardised
Approach
CCC
Carbon Consultancy
Company
AT I
Additional Tier I
CCD
Central Cash Department
EI
Executive I
ATM
Automated Teller Machine
CCPU
EII
Executive II
AUD
Australian Dollar
Central Credit Processing

Unit
EIR
Effective Interest Rate
AWDR
Average Weighted Deposit

Rate
CCU
Credit Control Unit
EPF
Employee Provident Fund
CCY
Currency
EPS
Earnings per Share
CDP
Carbon Disclosure Project
ESC
Economic Service Charges
CEA
Central Environmental
Authority
ESOP
Employee Share Option

Plan
CEFE
Competency-based
Economies through
Formation of Enterprise
ETF
Employee Trust Fund
ETR
Effective Tax Rate
EUR
Euro
EVE
Economic Value of Equity
EWS
Early Warning Signals
FCBU
Foreign Currency Banking

Unit
AWPLR
Average Weighted Prime

Lending Rate
B2B
Business to Business
B2C
Business to Customer
BA
Business Analytics
BAC
BBS
Branch Bench Strength
BCBS
Basel Committee on Bank

Supervision
BCP
Business Continuity Plan
BDT
Bangladesh Taka
)/9 9*
)VHYK/\THU9LZV\YJLZ
and Remuneration
Committee
484
CEO
*OPLM,_LJ\[P]L6MJLY
CET I
Common Equity Tier I
CFMs
Close Family Members
CFO
*OPLM-PUHUJPHS6MJLY
*/-
Swiss Franc
FSVAT
CIT
Cheque Imaging and

Truncating
Financial Services Value

Added Tax
GBP
British Pound
CKD
Chronic Kidney Disease
GCC
Gulf Cooperation Council
CNP
Card Not Presented
GCFO
Group Chief Financial

6MJLY
KPI
Key Performance Indicator
NSC
Network Service Centre
KPO
2H[\UH`HRL7H`6MJL
NSFR
Net Stable Funding Ratio
GCO
.YV\W*VTWSPHUJL6MJLY
KRI
Key Risk Indicator
NZD
New Zealand Dollar
GDP
Gross Domestic Production
kWh
Kilowatt-hour
OBS
Off - Balance Sheet
./.
.YLLU/V\ZL.HZ
KYC
Know Your Customer
OCI
GRI
Global Reporting Initiative
LCB
Local Commercial Bank
Other Comprehensive
Income
GRO
.YV\W9PZR6MJLY
LCR
Liquidity Coverage Ratio
ORMU
//0
/LYUKHOS/PYZOTHU
Index
LED
Light Emitting Diode
Operational Risk
Management Unit
LFSB
Lanka Financial Services

Bureau
OTC
Over-the-Counter
pa
Per Annum
/2+
/VUN2VUN+VSSHY
/6
/LHK6MJL
LGD
Loss Given Default
P/E Ratio
Price Earnings Ratio
/83(
/PNO8\HSP[`3PX\PK(ZZL[Z
LKAS
PAT
7YV[(M[LY;H_
/9
/\THU9LZV\YJLZ
Sri Lanka Accounting

Standard
PBT
7YV[)LMVYL;H_
/9+
/\THU9LZV\YJLZ
Development
LSUB
Lanka SWIFT User Group
PD
Probability of Default
LTV Ratio
Loan to Value Ratio
PoS
Point of Sale
/;4
/LSK[V4H[\YP[`
M3
Cubic meter
Prof
Professor
ICAAP

Assessment Process
MBA
Master of Business
Administration
PUC
Projected Unit Credit
Q&A
Question and Answer
ICASL
The Institute of Chartered

Accountants of Sri Lanka
(CASL)
MD
Managing Director
R&D
Research & Development
Mn
Millions
RCSA
MoM
Month on Month
Risk and Control Self

Assessments
mPOS
Mobile Point of Sale
RM
Relationship Manager
Internal Control Over

Financial Reporting
MSME
Micro, Small and Medium

Scale Entrepreneur
RMU
Risk Management Unit
RO Plant
IFA
Investment Fund Account
MW
Megawatt
Reverse Osmosis Drinking

Water Plant
IIRC
International Integrated
Reporting Council
NAITA
ROA
Return on Average Assets
ROCE
IND
National Apprenticeship
and Industrial Training
Authority
Return on Capital
Employed
IRB
Internal Rating - Based
NBFI
Non-Bank Financial
Institution
ROE
Return on Equity
IRMU
Integrated Risk
Management Unit
RPT
NBT
Nations Building Tax
Related Party Transaction/

(s)
IT
NCRE
Non-Conventional
Renewable Energy
RSA
Rate Sensitive Assets
JEI
Junior Executive I
RSL
Rate Sensitive Liabilities
NED
JEII
Junior Executive II
RWA
Risk Weighted Assets
NEDA
JPY
Japanese Yen
National Entrepreneur
Development Authority
SBEA
Kg
Kilograms
Sampath Bank Employee

Association
NID
Non Independent Director
Km
Kilometre
SDF
Standing Deposit Facility
NII
Net Interest Income
Km2
Square kilometre
SEC
NIM
Net Interest Margin
Securities and Exchange

Commission of Sri Lanka
KMP
Key Management
Personnel
NOK
Norwegian Krone
SEI
Senior Executive I
NPA
Non Performing Assets
Kms
Kilo Meters
SEII
Senior Executive II
NPL
Non Performing Loans
SEK
Swedish Krona
ICC
ICOFR
International Chamber of
Commerce
485
Abbreviations
SENS
Sampath Employee
5V[PJH[PVU:`Z[LT
UK
United Kingdom
SFT
Securities Financing
Transaction
UPS
Uninterruptible Power
Supply
US
United States
SGD
Singapore Dollar
USD US$
United States Dollar
SID
Senior Independent
Director
VAR
Value at Risk
VAT
Value Added Tax
SIFI
Systemically Important
Financial institutions
Vis--vis
In relation to, counterpart
SITS
Sampath Information
>/;
Withholding Tax
YoY
Year on Year
ZAR
South African Rand
SLA
Statutory Liquid Assets
SLAR
Statutory Liquid Asset

Ratio
SLAS

Standard
SLDB
Sri Lanka Development

Bonds
SLF
Standing Lending Facility
SLFRS

Standard
SLIPS
Sri Lanka Interbank

Payments System
SME
Small & Medium

Enterprises
SMS
Short Message Service
SNaPC
Sampath Nature Protection

Club
sq ft / ft2
Square Feet
SREP
Supervisory Review
Process
STP
Straight Through Process
SWIFT
Society for Worldwide

Interbank Financial
Telecommunication
tCO2e
Tones of Carbon Dioxide

Equivalent
TLE
Terminal Line Encryption
Tn
Trillion
TT
Telegraphic Transfer
UAE
United Arab Emirates
486
Sampath Song
ne iu.sfhka ho je,la fia
Wial fkdn,d
fy oyfhka l<ska bjqKq
uy rc uerhs im;a nexl=j
k.d ch oo uyd kula f.k
fy<h tl lr,d
kd m<uq ;ek jecfUhs wo k
f,dfjka ms ,o im;a nexl=j
l=,f.d;a mgq jegfldgq |yer
tl mjq,la f,i fy<hu i,lk$$
fy< is;g ;g uq,a ;ek fok
cd;sfha i,l=K im;a nexl=j
rq;fpypj; njhlHNghy;
If;fpakhf Ngjq;fs; ghuhky;>
fz;zPH tpaHit mbj;jsk;
nfhz;l kh khspifNa
rk;gj; tq;fp
ntw;wpf; nfhbAld; ew;ngaH
ngw;W Njrj;ij xd;wpizj;J>
Kjyplkile;J rpwg;gha;
kpspUk; cyfg;GfOld;
rk;gj; tq;fp
kj f,dj keK fkdyeru wrf.k

,s f.fhka fiajh i,ik$$
? oyj,a hehs fn brla ke;s
ksji iis ;ek im;a nexl=j
To be united in loving connection
With similarity for all
With our tears and sweat we have
built this
Citadel of wonder Sampath Bank
To fly our flag of well we pride and
Enlightening our land
To reach the top and be there always
World renown as Sampath Bank
kd m<uq ;ek jecfUhs wo k
f,dfjka ms ,o im;a nexl=j
Sinhala Lyrics by : Ms Sunethra Kumarasinghe
487
Notice of Annual General Meeting

Notice is hereby given that the 30th
Annual General Meeting of Sampath
Bank PLC will be held at the Balmoral
/HSS;OL2PUNZI\Y`5V1HUHKOPWH[OP
Mawatha, Colombo 01, on 31st March
2016 at 9.30 a.m. for the following
purposes.
1.
2.
To receive and consider the Annual

Report of the Board of Directors
on the affairs of the Company and
the Statement of Audited Accounts
for the year ended 31st December
2015 with the Report of the Auditors
thereon.
To declare a dividend of Rs 13.00 per
ZOHYLMVY[OLUHUJPHS`LHYIL
declared payable as follows:
a.
b.
Cash Dividend of Rs 6.00 per

share; and
Scrip Dividend of Rs 7.00 per
share
and therefore to consider and if

[OV\NO[[[VWHZZ[OLMVSSV^PUN
resolution by way of an Ordinary
Resolution.
It is hereby resolved that a dividend
VM9ZWLYZOHYLMVY[OLUHUJPHS
year 2015 payable as follows;
Rs 6.00 be distributed in the
form of cash amounting to a total
payment of a sum of Rupees One
Billion and Thirty Three Million
,PNO[/\UKYLKHUK:L]LU[`-P]L
;OV\ZHUK5PUL/\UKYLKHUK;OPY[`
(Rs. 1,033,875,930/-). Rupees Nine
/\UKYLKHUK5PUL[`:L]LU4PSSPVU:P_
/\UKYLKHUK:P_[`6UL;OV\ZHUK
6UL/\UKYLKHUK-PM[`-V\Y9Z
997,661,154/-) of the cash dividend
shall be subject to dividend tax at the
rate of 10% whilst the remainder is
exempt from dividend tax; and
Rs. 7.00 be distributed in the form

of scrip dividend amounting to total
sum of Rupees One Billion and
;^V/\UKYLKHUK:P_4PSSPVU6UL
/\UKYLKHUK,PNO[`,PNO[;OV\ZHUK
HUK-P]L/\UKYLKHUK,PNO[`-P]L
(Rs. 1,206,188,585/-). Rupees One
)PSSPVUHUK6UL/\UKYLK:P_[`;OYLL
4PSSPVU5PUL/\UKYLKHUK;OPY[`
Eight Thousand and Twelve (Rs
1,163,938,012/-) of the scrip dividend
shall be subject to dividend tax at
the rate of 10% whilst the remainder
is exempt from dividend tax. The
shares issued in the scrip dividend
shall be valued at Rs 233.44 per
share which result in one (01) share
being issued for each existing Thirty
Six point Nine One Zero Three Two
Zero (36.910320) shares held by the
shareholders at the end of trading on
the Colombo Stock Exchange on the
date of the Annual General Meeting.
Consequently the total number of
shares to be issued under the scrip
dividend shall be Four Million Six
/\UKYLKHUK:P_[`,PNO[;OV\ZHUK
-V\Y/\UKYLKHUK-V\Y[LLU
(4,668,414) Ordinary Shares.
It is further resolved that the shares
issued for the scrip dividend be listed
on the Colombo Stock Exchange
It is further resolved that the shares
arising from the aggregation of the
residual fractions consequent to the
scrip dividend be disposed of in the
market by a trustee to be nominated
by the Board of Directors and the
proceeds to be distributed amongst
those shareholders entitled to the
fraction of such shares.
3.
To re-elect Mr Dhammika Perera who

retires at the Annual General Meeting
as a Director in terms of Article No.
87 of the Articles of Association of the
Company.
4.
To re-elect Mr Deshal De Mel who

retires at the Annual General Meeting
as a Director in terms of Article No.
87 of the Articles of Association of the
Company.
5.
To re-elect Miss Annika Senanayake

who retires at the Annual General
Meeting as a Director in terms of
Article No. 87 of the Articles of
Association of the Company.
6.
To re-elect Mrs Saumya Amarasekera

who retires at the Annual General
Meeting as a Director in terms of
Article No. 87 of the Articles of
7.
To approve the Donations and

Contributions made by the Directors
during the year under review.
8.
To re-appoint M/s Ernst & Young,

Chartered Accountants, as Auditors
of the Company for the ensuing year
and to authorize the Directors to
determine their remuneration.
By Order of the Board
Anuja Goonetilleke
Company Secretary
Colombo, Sri Lanka
16th February 2016
5V[L!
A member is entitled to appoint a Proxy to attend and vote on his/her behalf and a Proxy need not be a member of the Company. A Form of Proxy
PZH[[HJOLKMVY[OLW\YWVZL;OLPUZ[Y\TLU[HWWVPU[PUNH7YV_`T\Z[ILKLWVZP[LKH[[OL9LNPZ[LYLK6MJLVM[OL)HURH[5V:PY1HTLZ7LPYPZ
4H^H[OH*VSVTIVUV[SLZZ[OHUMVY[`LPNO[OV\YZILMVYL[OL[PTL_LKMVYOVSKPUNVM[OL4LL[PUN
@V\HYLRPUKS`YLX\LZ[LK[VIYPUN^P[O`V\`V\Y5H[PVUHS0KLU[P[`*HYKVYHU`]HSPKZV\YJLVMPKLU[PJH[PVULN+YP]PUNSPJLUZL7HZZWVY[
488
Form of Proxy
Thirtieth Annual General Meeting
Sampath Bank PLC
110, Sir James Peiris Mawatha,
Colombo - 02.
I/We,.................................................................................................................................................................................................of
...................................................................
being a member/members of Sampath Bank PLC hereby appoint Mr/Mrs/Miss/Ven/Rev....................................
...............................................................................................................of
...Failing him/her
Mr. Dhammika Perera of 27th Floor, East Tower, World Trade Centre, Echelon Square, Colombo 01, failing him Mr. Sanjiva Senanayake
VM5H^HSH9VHK5\NLNVKHMHPSPUNOPT4Y(YH]PUKH7LYLYHVM-3HRL9VHK(]LYPOLUH/VRHUKHYH:V\[OMHPSPUN
him Mr. Ranjith Samaranayake of 51A, Weerapuranappu Mawatha, Laxapathiya, Moratuwa, failing him Mr. Deepal Sooriyaarachchi of
28/10 Birnamwood, Wijesekera Mawatha, Mirihana, Nugegoda, failing him Prof. Malik Ranasinghe of 18, Layards Road, Colombo 05,
failing him Mrs. Dharani Wijayatilake of 78/1, Old Road, Nawala, failing her Mr. Deshal De Mel of 103/1, Rosemead Place, Colombo 07,
failing him Mr. Ranil Pathirana of 243/5, Lake Gardens, Sri Jayawardenapura Mawatha, Rajagiriya, failing him Miss. Annika Senanayake
of 18/1, Alfred Place, Colombo 03, failing her Mrs. Saumya Amarasekera of 03, Sravasti Place, Colombo 07. as my/our proxy to
attend and vote for me/us on my/our behalf at the Thirtieth Annual General Meeting of the Company to be held at Balmoral /HSS, The
Kingsbury, No. 48, Janadhipathi Mawatha, Colombo 01, on 31st March 2016 at 9.30 a.m. and at any adjournment thereof.
FOR
1
To receive and consider the Audited Financial Statements and the Annual Report of the
Board for the year ended 31st December 2015.
To declare the recommended Cash Dividend of Rs 6.00 per share and the Scrip Dividend of
Rs 7.00 per Share for the Financial Year 2015 along with the Ordinary Resolutions set out in
the Notice convening the meeting.
To re-elect Mr Dhammika Perera as a Director under Article No. 87 of The Articles of

To re-elect Mr Deshal De Mel as a Director under Article No. 87 of The Articles of Association
of the Company.
To re-elect Miss Annika Senanayake as a Director under Article No. 87 of The Articles of
To re-elect Mrs Saumya Amarasekera as a Director under Article No. 87 of The Articles of
To approve donations/contributions made by the Directors during the year under review.
To re-appoint M/s Ernst & Young, Chartered Accountants, as Auditors of the Company for
the ensuing year and authorise the Directors to determine their remuneration.
AGAINST
Mark your preference with X

Signed on this Day of . 2016
Signature/s
Note:
1. Proxy need not be a member of the Company

2. Instructions regarding completion of Proxy are given in next page
489
Form of Proxy
INSTRUCTIONS AS TO COMPLETION
2PUKS`WLYMLJ[[OLMVYTVMWYV_`HM[LYSSPUNPUSLNPIS``V\YM\SSUHTLHUKHKKYLZZHUKI`ZPNUPUNVU
the space provided.
;OLJVTWSL[LKMVYTVMWYV_`ZOV\SKILKLWVZP[LKH[[OL9LNPZ[LYLK6MJLVM[OL*VTWHU`H[5V
110, Sir James Peiris Mawatha, Colombo 02, not less than 48 hours before, the appointed time for
the holding of the meeting.
3. If you wish to appoint a person other than Chairman or a Director of the Company as your proxy,
please insert the relevant details in the space provided [above names of the Board of Directors] on
the Proxy Form.
4. Article No. 73 of the Articles of Association of Company provides that: Any corporation which is a
member of the Company may by resolution of its directors or other governing body, authorize such
WLYZVUHZP[[OPURZ[[VHJ[HZP[ZYLWYLZLU[H[P]LH[HU`TLL[PUNVM[OL*VTWHU`VYVMHU`JSHZZ
of members of the Company, and the person so authorized shall be entitled to exercise the same
powers on behalf of such corporation as the corporation could exercise if it were an individual
member of the Company.
5.
Please indicate with an x in the space provided how your Proxy is to vote on each resolution, if
UVPUKPJH[PVUPZNP]LU[OL7YV_`H[OPZKPZJYL[PVU^PSS]V[LHZOL[OPURZ[
6.
In the case of a Company/Corporation, the Proxy must be under its Common Seal which should
ILHM_LKHUKH[[LZ[LKPU[OLTHUULYWYLZJYPILKI`P[Z(Y[PJSLZVM(ZZVJPH[PVU
7. In the case of a Proxy signed by an Attorney, the Power of Attorney must be deposited at the
9LNPZ[LYLK6MJLVM[OL*VTWHU`MVYYLNPZ[YH[PVU
490
Name of Shareholder
:.....................................................................................................
N I C No of Shareholder
:.....................................................................................................
:OHYL*LY[PJH[L5V4LTILYZOPW5V
!
CDS A/C No [if applicable]
:.....................................................................................................
No of shares
:.....................................................................................................
Name of Proxy holder
:.....................................................................................................
N I C No of Proxy holder
:.....................................................................................................
Stakeholder Feedback Form

To request information or submit a comment / query to the Bank, please complete the following and return this page to:
Company Secretary,
Sampath Bank PLC,
No 110, Sir James Peiris Mawatha,
Colombo 02, Sri Lanka.
e-mail: company_secretary@sampath.lk
Tel: +94 11 4730418 / 420 / 548
We also appreciate your comments on this Annual Report.
Which stakeholder groups do you belong to? (You may tick more than one)
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491
Stakeholder Feedback Form
Comments / Queries
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492
Name of Company
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Mr Deshal De Mel
- Non Executive Director
Mr Ranil Pathirana
Mr Aravinda Perera
- Managing Director/Executive Director
Executive Director
Sampath Bank PLC
Mrs Anuja Goonetilleke

Attorney-at-Law
Subsidiary Companies
Corporate
Information
Legal Form
A Public Limited Liability Company
incorporated in Sri Lanka on 10th March
1986 under the Companies Act No 17
of 1982 and listed in the Colombo Stock
Exchange. A Licensed Commercial Bank
under the Banking Act No 30 of 1988.
Re-registered on 28th April 2008 under
the Companies Act No 7 of 2007.
Company Registration
Number
PQ 144
+HDG2IFH 5HJLVWHUHG
2IFH
No.110, Sir James Peiris Mawatha,
Colombo 02, Sri Lanka
Telephone
+94 (011) 2300260, +94 (011) 2358358,
+94 (011) 4730630, +94 (011) 5331441,
+94 (011) 5600600
6WRFN([FKDQJH/LVWLQJV
172,312,655 Ordinary Shares
15,000,000 Listed Unsecured
Subordinated Redeemable Debentures of
Rs 100/- each - 2012/2017
Rs 100/- each - 2013/2018

Rs 100/- each - 2015/2020
134001194 7000
Credit Rating
Fitch Rating: Fitch Rating Lanka Limited
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of A+ (lka) stable to Sampath Bank.
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oper.mgr@sampath.lk
info@sampath.lk
Web Page
www.sampath.lk
Auditors
Messrs Ernst & Young
Lawyers
Messrs Nithya Partners
Attorneys-at-Law
97.14
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Mr Dhammika Perera - Chairman
- Deputy Chairman/Non Executive
Director (until 12th November 2015)
Mr Sanjiva Senanayake - Senior Director
Renting of
Commercial
Property
SC Securities 100.00
(Pvt) Ltd
Stock Broking
Siyapatha
Finance PLC
100.00
Leasing,
factoring,
pawning &
accepting
deposits
Sampath
Information
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Solutions Ltd
100.00
Developing
Software
Solutions &
Maintenance
of Hardware
VAT Registration Number
+94 (011) 2303085
E-mail
Sampath
Centre Ltd

Rs 100/- each - 2014/2019
Fax
SWIFT Code
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For Investor Relations and

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Company Secretary,
Sampath Bank PLC,
No. 110, Sir James Peiris Mawatha,
Colombo 02, Sri Lanka
E-mail: company_secretary@sampath.lk
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Photography by Taprobane Street

Sampath 2015

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Imagine the future.

Sampath Bank is proud to be one of Sri Lankas most future

SAMPATH BANK PLC Annual Report 2015

SAMPATH BANK PLC Annual Report 2015

175 Collaborating with Our Partners

Please recycle this Annual Report

Sampath Bank PLC is a public limited company incorporated in

Ranked as one of the top-tier banks in the country, Sampath Bank

Create a bank account online

I HAVE A VISHWA TOKEN

SAMPATH BANK PLC Annual Report 2015

Renting of Commercial Property

Names of Board of Directors

Mr Wije Dambawinne (resigned w.e.f. 12.10.2015)

Mr D Ihalalanda (appointed w.e.f. 03.12.2015)

Mr R Silva (appointed w.e.f. 03.12.2015)

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Names of Board of Directors

Leasing, Factoring, Pawning and Accepting

Names of Board of Directors

Mr Tharaka Ranwala (appointed w.e.f. 28.07.2015)

SAMPATH BANK PLC Annual Report 2015

Developing Software Solutions and

Names of Board of Directors

Mr K M S P Herath (retired w.e.f. 03.08.2015)

Mr M A Salgado (appointed w.e.f. 30.07.2015)

Society for Worldwide Interbank Financial Telecommunication (SWIFT)

Lanka Financial Services Bureau (LFSB)

Lanka SWIFT User Group (LSUG)

Member & Treasurer

Lanka Clear (Pvt) Ltd

Leasing Association of Sri Lanka

The Association of Banking Sector Risk Professionals - Sri Lanka

International Chamber of Commerce ICC Sri Lanka

Italian Business Council

CSR Lanka (Guarantee) Ltd

The European Chamber of Commerce of Sri Lanka

Sri Lanka Banks Association (Guarantee) Ltd

The Ceylon Chamber of Commerce

The Financial Ombudsman Sri Lanka (Guarantee) Ltd

American Chamber of Commerce in Sri Lanka

Sri Lanka Forex Association ( SLFA)

Association of Primary Dealers (APD)

Clearing Association of Bankers

Payment Card Association of Sri Lanka

Sri Lanka Association of Software and Service Companies (SLASSCOM)

SAMPATH BANK PLC Annual Report 2015

2013 Launch of the Cardless

Celebrations to mark Sampath

Gold Award (Banking

Asset portfolio crossed

Reclaimed the prestigious title of

Bank of the Year 2015

SAMPATH BANK PLC Annual Report 2015

The Uni-Banking system

Received the Best

Invested in a new stateof-the-art ATM switch, as

The Sampath eRemittance

Recognized as the Best Commercial

Adjudged as the Overall

SAMPATH BANK PLC Annual Report 2015

SAMPATH BANK PLC Annual Report 2015

The Directors bring together a

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