Sampath Bank Annual Report 2013

entrepreneurs and farmers who otherwise will have Profit Before Tax &even more limited access to capital in the formal Profit After Taxbanking sector. However, the volatility in gold pricesin global markets makes it prudent to limit exposure Rs Bnto this product. 5.0The proportion of Current and Savings Accounts 3.4(CASA) in the deposit mix declined marginally withcustomers shifting funds from current and savings 7.4accounts to time deposits to take advantage of the 5.2higher interest rates. However, the Bank addressed 4.5this through timely and effective re-pricing of 3.4both asset and liability products to safeguard theNet Interest Margin. The Bank was in a favourable 2011position to re-price as most products were short 2012term and could be re-priced. 2013Safeguarding asset quality in the current operating Profit Before Taxenvironment was a challenge that the Bank Profit After Taxaddressed effectively despite the adverse impactsfrom the pawning portfolio. We continue to nurture a IInntteerreesstt EInxcpoemnsee&risk awareness culture in the organisation and investin technology to further enhance our capabilities in Rs Bnthe management of asset portfolios and the use ofmore predictive and proactive tools and techniques. 40.9Operating expenses of the Bank which stood at 21.1 31.9 26.6Rs 9,248 Mn in 2012, rose to Rs 10,634 Mn in 2013, 12.6 20.3recording an increase of Rs 1,386Mn (15%). Thisgrowth in operating expenses was largely due 2011 2012 2013to an increase in staff cadre coupled with salaryincrements given to the staff with effect from the Interest Income2nd quarter 2013, general inflation and upgrading Interest Expensebranches to a consistent standard. Since the Bankhas now adequately covered most of the strategic &NeNtIMInterest Incomelocations of the country, it expects to have only a Rs Bn %moderate expansion to its branch network in thecoming years. This will also help to manage the 4.17 Annual Report 2013 Sampath Bank PLCincrease in costs. 4.16Net Interest Income (NII) 8.94Interest Income increased by 28.4% from 11.61Rs 31.9 Bn in 2012 to Rs 40.9 Bn in 2013 due to 14.37growth in business volumes, timely re-pricing offunds and effective management of the fund base. 4.07Conversion of part of the foreign currency reservesof the FCBU into local currency in the early part of Net Interest Incomethe year which facilitated LKR lending contributed NIMto the increased Interest Income. Interest Expense 2011increased by 31.0% to Rs 26.6 Bn in 2013 compared 2012to Rs 20.3 Bn in 2012 due to increase in deposits and 2013foreign currency borrowings. NII increased fromRs 11.6 Bn in 2012 to Rs 14.4 Bn in 2013, an increaseof 23.7% mainly due to diverting resources to moreremunerative products and effective re-pricing ofboth asset and liability products. NII contributed73.7% of Total Operating Income in 2013 incomparison with 64.9% in 2012. 49

MANAGEMENTDISCUSSION &ANALYSISWE HAVE AGGRESSIVELY GROWN OUR CARDOPERATIONS AND ARE ONE OF THE LEADINGLOCAL BANKS IN THIS BUSINESS LINE.Fee and Commission Income Income accounted for 13.3% of Total OperatingFee and Commission income totalled Rs 3 Bn in 2013, Income, mainly due to the decrease in foreignan increase of 7.1% over the previous year. Net Fee currency revaluation gains in line with our strategyand Commission income represented 13.0% of the to decrease the proportion of income from volatileTotal Operating Income in line with aggressive growth sources.of business volumes in our card operations and tradeservices. We have aggressively grown our cardoperations and are one of the leading local Banks inthis business line. We also implemented a strategy togain market share in trade finance through provisionof a superior service and extended hours. Our branchnetwork, the dedicated and experienced teamand technology combined effectively to expediteprocessing of documentation to ensure a positivecustomer experience and enabling them to competeeffectively. Net fee & commision income Rs Mn SMS Alertz - keeps you updated about your account 1,811 Total Operating Income 2,149 Total operating income increased by 9.1% to Rs 19.5 Bn 2,543 in 2013 mainly driven by a significant increase in NII which accounted for 73.7% of Total Operating Income. 2011 Net Fee and Commission income also increased by 2012 18.3% accounting for 13.0% of Total Operating Income 2013 due to aggressive growth of card and trade related services. The decline in Other Operating Income is Net fee & commision income mainly due to the decrease in gains from foreign currency revaluation in line with corporate policy toOther Operating Income reduce reliance on income from volatile sources.Other operating Income comprises gains from foreigncurrency revaluations, income from investment Operating Expensessecurities, and other miscellaneous sources of income Operating expenses increased by 14.9% from Rsof which gains from foreign currency revaluation 9.2 Bn in 2012 to Rs 10.6 Bn in 2013 due to inflation,is the most significant. Gains from revaluation of increase in staff cost and the island-wide programmeforeign currency declined by 102% over the previous to upgrade branches to a consistent standard.year mainly due to a decrease in foreign currency Careful management of expenses has enabled us togains arising from the conversion of foreign currency achieve a deceleration of operating expenses growthreserves into rupees for expansion of the LKR credit rate for the second consecutive year. Curtailingportfolio and the slower depreciation of LKR against growth of operating expenses has been possiblethe US $. Net Trading Income and Other Operating due to our low cost branch model which deploys50

technology effectively to centralise specialised Impairment Loss on Loan and Receivablesfunctions. We have one of the lowest staff per branch Total impairment losses increased dramatically fromratios in the industry of 11 staff per branch. Rs 65 Mn to Rs 3,490 Mn mainly due to the impact of a sudden sharp decline in gold prices on theEOxppeernastiensg % pawning portfolio. The impairment charge against 14.9 the pawning portfolio for the year amounted to RsRs Mn 3,509 Mn. The net impairment charge from all other 14.8 advances was Rs 214 Mn. Financial investments recorded a mark to market gain of Rs 276 Mn. The8,0581.0 impairment provision on pawning has been computed 9,248 taking into account the gold prices prevailing as at 10,634 31st December 2013 for the entire pawning portfolio covering both facilities in the”fallen due” category as2011 well as “not fallen due” category. 2012 2013 Pre and Post Tax Profit The Bank’s pre-tax profit is Rs 4.5 Bn which is 39.3% Operating Expenses lower than the pre-tax profit of Rs 7.4 Bn in 2012 Growth Rate due to the higher impairment provisions in respect of the pawning portfolio necessitated by the sharpPersonnel Expenses & decline in gold prices in world markets coupled withOther Operating decrease in foreign currency gains arising from theExpenses conversion of foreign currency reserves into rupees and the slower depreciation of LKR against the USRs Mn $. Post tax profits were similarly affected reflecting a decrease of 34.4% from Rs 5.2 Bn in 2012 to Rs 6,217 3.4 Bn in 2013. Overall, the performance has been affected by the high exposure to pawning and the 5,239 limited opportunities for growth given the underlying economic conditions.3,560 4,009 4,417 4,499 Effective Tax Rate for the year reduced to 23.6% during the year compared with 29.3% in 2012. The2011 2012 2013 Bank managed to reverse Rs 355 Mn worth of tax provisions, which were provided in previous years, Personnel Expenses after finalising 2010 tax return with the Department Annual Report 2013 Sampath Bank PLC Other Operating Expenses of Inland Revenue.Shareholders fund Shareholders’ Funds Shareholders’ Funds increased by a modest Rs 2,774 Rs Mn Mn due to the relatively modest profits recorded for 2013. Stated Capital increased from Rs 3,56420,991 Mn as at 31st December 2012 to Rs 4,460 Mn due 21,344 to capitalisation of scrip dividend (1 new share for 33 shares held) paid in April 2013 and the exercise 25,645 of options by staff under the Employee Share 28,418 Ownership Plan amounting to Rs 885.4 Mn and Rs 10.8 Mn respectively. The increase in the investment2010 fund account is a mandatory requirement and 2011 comprises retentions of 8% of profits calculated for 2012 payment of Financial Services VAT and 5% of profit 2013 before tax computed for payment of income tax as per the relevant direction. These funds are utilised for lending for specified purposes and any amounts unutilised require transfer to the consolidated fund as per the most recent direction issued by CBSL in 2013. Sampath Bank has almost fully utilised the Investment Fund Account for the specified lending purposes and therefore will not need to transfer any funds to the Consolidated Fund. 51

MANAGEMENTDISCUSSION &ANALYSISTHE BANK HAS NOW COMPLETED ITSPREPARATIONS FOR MIGRATION TO THEINTERNAL RATING BASED FOUNDATIONAPPROACH (IRBFA) OF BASEL II IN 2014Dividend CashThe Directors have recommended a final cashdividend of Rs 8.00 per share. 8.00DividendPerformance Ratios 2013 2012 Rs 59.14% 58.24% Cost to Income Ratio per Share (with FSVAT) 0.99% 1.88% Return on Assets (after tax) 12.69% 22.25% worth of Rated Unsecured Subordinated Redeemable Return on Equity Debentures in December 2013. The Statutory Liquid Assets ratio improved due to the excess liquidity andThe Cost to Income ratio increased slightly due to is maintained at a reasonably high level over thedrop in income growth as a result of higher FCBU minimum regulatory requirement. It is lower thanrevaluation gain in 2012. Both ROA and ROE declined the industry average of 37.7% as the Bank maintainsin line with the decrease in profits due to the a prudent trade-off between liquidity and interestimpairment charge on the pawning portfolio and the earning assets.relatively low credit growth experienced during theyear. The Bank has now completed its preparations for migration to the Internal Rating Based FoundationTier I Capital Adequacy Ratio showed a decline over Approach (IRBFA) of Basel II in 2014 and looks forwardDecember 2012 due to reduction in profit after tax to better management of capital using techniquesand increase in assets. Total capital adequacy ratios available in Basel II.however improved from 13.6% in December 2012to 14.2% as at 31st December 2013 mainly due toadditional Tier II Capital raised by issuing Rs 5 BnCapital Ratios 2013 2012 Statutory Requirement Statutory Liquid Assets Ratio 27.6% 22.4% Capital Adequacy – Tier I 10.1% 11.8% 20.0% Capital Adequacy – Total 14.2% 13.6% 5.0% 10.0%52

The dividend proposed in 2012 (paid in 2013) was in the country. Underlying our strategy is a culturethe highest in the Banking sector and comprised 50% of striving for excellence, shared values andcash dividend and 50% scrip dividend which also respect for the rights of our stakeholders whichhelped to strengthen the Bank’s capital structure. The facilitates debate and discussion in arriving atoverall return to shareholders is among the highest optimal strategies and solutions that provide a solidin the sector and the market, a factor considered by foundation for sustainable growth.Euromoney when selecting Sampath Bank as theBest Bank in Sri Lanka for 2013. We have performed well on many fronts despite a challenging operating environment and have takenOperational Review measures to strengthen areas of concern where we fell short of our high expectations.STRATEGYOur strategic priorities for 2013 were based on The diagram below depicts the strategy of the Bankachieving growth leveraging on our competitive for its key business lines defining areas of growthstrengths which include a team that is focussed on within the risk appetite of the Bank linked to supporta common goal, a branch network that covers key services and delivery channels necessary to supportpotential markets and a heritage of technological the defined growth.innovations that have shaped the banking industry  Growth through inclusive banking Excellence in customer service Safeguard asset quality Technology driven banking Product innovation Operational efficiency Annual Report 2013 Sampath Bank PLC 53

MANAGEMENTDISCUSSION &ANALYSISCore areas of Stakeholders Delivery Strategyoperation ChannelsPersonal Banking Senior Citizens Children Growth through innovative productCorporate Banking Professionals design and excellence in customer careDevelopment FamiliesBanking IndividualsTrade Services Corporates Focussed growth through superiorTreasury service as a business partnerOperationsCredit and Debit CorporatesCard Operations SMEs Branch Network Selective growth ATM Network MSMEs Internet Banking Corporates Mobile Banking Expand Branch Note Operation Units, SMEs aggressive marketing, superior service Individuals and competitive pricing Migrant Workers Growth through trading and FX markets Local and Correspondent Banks Authorised Money Changers Corporates Individuals Local and Foreign Banks Cardholders Market penetration through promotions VISA, Master and AMEX payment and additional product features schemes Merchants Safeguard asset quality Maintain Stability Improve Risk Management, Compliance and Corporate Governance Wealth Creation Employees Shareholders Customers Suppliers and Government and Service Providers Regulators54

PERSONAL BANKING by Corporate Banking which are the most significantThe Bank’s key area of growth has been Personal contributors to both income and operating profit.Banking facilitated by the branch network followedGrowth through customer focus and inclusive bankingDeposit growth Sampath Bank deposit growth was 24.2% Deposits for 2013 reflecting an encouraging growth rate which was above the industry growth Rs Bn rate. This is attributable to the growth of branch business volumes and our focus 2010 153 on customer convenience through our 2011 196 innovative banking products. 2012 244 2013 302Three leading We are the only bank in Sri Lanka to have No of Credit Cardscard franchises the world’s three leading card franchises. Business growth has been encouraging Nos with growth in both the number and usage of cards despite a decline in both numbers 150,000 in the industry. 120,000 90,000 60,000 30,000 0 2010 2011 2012 2013Investment in We remain committed to bring unparalleled convenience to our customers throughTechnology investments in technology. Initiatives launched and expanded during the year include: Launch of mobile app for banking Annual Report 2013 Sampath Bank PLC Increasing Super Branches Extended banking hours Launch of the 1st cardless ATM in Asia/South East Asia using the latest technology to provide secure access. First bank in the country to have foreign currency changing ATMs 55

MANAGEMENTDISCUSSION &ANALYSIS Deposit Current Accounts Foreign Currency Accounts Products Savings Accounts Senior Citizens Accounts Term Deposits Minor Savings Accounts Advances Certificates of Deposit Products Credit Cards Housing Loans Pawning Channel Leasing Business Loans Products Loans against Gold Development Loans Personal Loans Agriculture Loans Educational Loans M-Commerce Products Branch Banking E-Remmittance Mobile Banking Door Step Banking ATM Banking Other Value Additions Internet Banking Internet Payment Gateway Pre-paid Cards Credit and Debit CardsPersonal Banking is a key business line for the Bank of products broadly categorised into Deposits,accounting for 58.8% of total advances and 67.0% of Advances and Channel products. We rely oninterest income which are respectively the largest excellence in customer care in both our face-to-faceasset base and highest proportion of income in the interactions and our technology driven interfaces.Bank. It is also the most profitable business linefor the Bank and relies on excellence in customer No of Branches andservices coupled with technology and innovation for ATMsgrowth. Personal Banking has the largest portfolio No of Branches 19% 171 17% 222 91% 13% 206 9% 255 19% 209 9% 23% 12% 264 212 274 2010 2011 2012 2013 Central Sabaragamuwa No of Branches Eastern Southern No of ATMs Northern Uva North Central Western North Western56

OUR FOCUS THIS YEAR WAS TO INCREASEBUSINESS VOLUMES FROM THE BRANCHNETWORK LEVERAGING ON EXCELLENCE INCUSTOMER CARE AND PRODUCT INNOVATIONWHILE SAFEGUARDING ASSET QUALITY.We continue to enhance arrangements with from 25.4% at the beginning of the year to 19.7% atCorrespondent Banks and Exchange Houses to the end of the year. Growth of card balances reflectedfacilitate inward remittances channelled by migrant a growth of 30% year on year for 2013 despite aworkers. The network covers 87 exchange houses marginal increase of Rs 7.4 Bn in industry credit cardlocated in 5 main countries represented by 10 balances. Regulations in place to limit penal interestBusiness Promotion Officers. rates to 2% and to limit credit card interest to 24% impacted profitability of card operations and alsoTotal Assets limited the tools to manage asset quality.Personal Banking accounts for 86.3% of the Bank’sdeposit base and 58.8% of advances for 2013. Growth Depositsof the Personal Banking advances portfolio was Growth in Personal Banking deposits was 21.8%encouraging at 16.9%, well above the industry average ahead of the industry growth rate of 15% and was aof 8.8%. Our focus this year was to increase business key success area for the Bank primarily due to thevolumes from the branch network leveraging on aggressive branch drive focussed on both savingsexcellence in customer care and product innovation and current accounts. Average deposit rates declinedwhile safeguarding asset quality. We strategically during the year as CBSL cut policy rates by 50 basisreduced the pawning portfolio (including interest points in May and again in October to stimulatereceivable) in view of the volatility in gold prices private sector investment and credit growth. Thewhich impacted the entire financial services sector excess liquidity in the banking sector also easedin April 2013 and have reduced the Bank’s exposure the intense competition for deposits observed Current Normal Current Accounts Accounts Sampath Supreme Payment Guaranteed Cheques Savings Account Pubudu and Sapiri for Minors Hit Saver Investment Account X-Set for Teens Sanhinda Saver for SeniorsTerm Deposits Double S Foreign Kalin Cash (Interest paid upfront) Sanhinda for Seniors Annual Report 2013 Sampath Bank PLC Currency Easy FD for withdrawals without Normal Fixed Deposits Accounts penalties Special Accounts Non Resident Foreign Currency Resident Non-National Accounts Foreign Currency Accounts Resident Foreign Currency Securities Investment Accounts Accounts Special Foreign Investment Export Foreign Currency Deposit Accounts Accounts Rupee Accounts for Non-Resident Sri Lankan Investors 57

MANAGEMENTDISCUSSION &ANALYSISGROWTH IN PERSONAL BANKING DEPOSITSWAS 21.8% AHEAD OF THE INDUSTRY GROWTHRATE OF 15%in the previous year as well. Consequently AWDR launched for smart phones and tablets on bothdeclined during the year from 10.1% in December iOS platform and Android platforms and was made2012 to 9.4% by year end. However, the deposit mix available to the customers through the Apple andcontinued its declining trend for current and savings the Google Play Stores. We will continue to investaccounts (CASA) favouring high cost term deposits. in technology for branchless banking in view of theHowever, the Bank was able to maintain the CASA country’s high penetration rate over 100% for mobileat 33.9%, marginally below the 34.0% observed for phones and increasing internet based payments.the banking sector in Q3 2013. The Bank’s expandingrange of channel products enhances value to the Advancescustomer, facilitates ease of transacting with the The Personal Banking Advances portfolio accountsBank and managing their finances, which provides for 58.8% of the total advances of the Bank anda competitive edge. This year a mobile app was contributes 67.0% of the Total Interest Income. It Housing Loans Sampath Sevana Sampath Sevana Dayada for seniors Leasing Sampath Sevana for Professionals Loans Against Personal Vehicles Gold Commercial Vehicles Personal Loans Machinery Business Pawning Finance Biz Cash for businesses SME Loans Educational Loans Loans for Professionals Factoring Export Bills Purchasing Hire Purchase Import Financing Export Finance Working Capital Financing Packing Credit Guarantee Facilities Development Loans Agricultural Loans Microfinancing58

is responsible not just for the personal loans but 82Exchange Annual Report 2013 Sampath Bank PLCalso the small and medium enterprises that prefer Housescollateral based lending to cashflow based lending. Italso generated 43.5% of the total Fee Based Income 10Business Promotionfor the Bank through marketing of Trade Services,Guarantees, E-Remittances and credit cards. The Rs OfficersPersonal Banking Advances portfolio grew by 16.9%from Rs 135 Bn in 2012 to Rs 158 Bn in 2013. Out of the benefitted from this scheme and commenced theirgrowth of Rs 23 Bn, more than 80% was contributed secondary education at private universities withoutby the SME sector. burdening the parents.Housing loans grew by Rs 1.8 Bn, which is a 16.9% The Bank participated in 14 refinance credit schemesgrowth over the previous year despite the stiff disbursing Rs 4,660 Mn in 2013, to develop micro,competition in the market, mainly due to the small and medium scale entrepreneurs. The maincompetitive pricing, prompt approval of loans, tailor sectors assisted included agriculture, fishing, animalmade solutions to the customers in line with the husbandry, plantations including tea, rubber andrepayment capacity. In addition, tie ups with ma jor coconut, factory modernisations, infrastructurehousing projects at concessionary interest rates also development, Business Process Outsourcing (BPO),helped in improving the portfolio. tourism and education. The Investment Fund Account (IFA) set up from the proceeds of the saving on theExposure to Pawning sector was consciously Corporate Tax and Financial Services VAT due toreduced from 25.4% to 19.7% of the total advances the reduction of the rate from 35% to 28% and 20%portfolio (amortised cost) considering the declining to 12% respectively was extensively utilised to lendinternational prices in gold. The international gold to the SME sector in developing the entrepreneursprices dropped significantly by about 29.0% since engaged in agriculture, plantation, manufacturing,April 2013. Pawning facilities are handled by 210 infrastructure development, education and tourism.branches. Loan proceeds mainly supported the We granted 442 micro financing loan facilities tosectors including agriculture, SME and consumption. branches in the North and East, under the specialConsidering the volatile and declining market credit schemes set up to develop these areas. Thetrend, the Bank adopted a conservative approach loans granted under the Investment Fund Accountin determining the advances quantum and the loan exceeded Rs 2.3 Bn during the year, which benefitedto value ratios were reduced to more conservative the SME sector immensely with the opportunity tolevels. The world market prices were constantly have long term financing facilities at lower interestmonitored and the corrective measures were rates for the much needed capital expenditure andadopted. working capital requirements. In addition, loans were granted against borrowing from China DevelopmentThe leasing portfolio grew by 1.7% despite the Bank (CDB) for the SME sector at comparativelystiff competition from other banks and financial lower rate for a longer term.institutions, increase in the vehicle prices due toincrease in custom duties. Growth was driven by We have been able to maintain a high qualitythe main sectors including, agriculture, trading, asset portfolio due to the centralised creditconstruction and services. Leasing mainly supports appraisal system which continued during the yearthe SME sector in the formation of capital. Due to the 2013 providing clear segregation of duties andincrease in the unregistered vehicle prices, the used involving appraisal by highly skilled professionalsvehicle market was developed to a greater extent in appraising credit facilities. These processes willand Hire Purchase facility was introduced to exploit be strengthened with the upgrade of the Finaclethis segment. system improving the appraisal, documentation, disbursements, monitoring and control of theSpecial Loan schemes were introduced to cater portfolio.to the needs of the professionals and a separate  scheme for doctors at very concessionary interestrates with flexible terms and conditions. Speciallong term Educational loans were introducedconsidering the needs of the students to financetheir higher education. These loans were granted atconcessionary interest rates allowing the students torepay after completion of their education and onceemployed. A number of students who could not enterinto private universities due to financial difficulties 59

MANAGEMENT significant channel products are E Remittance andDISCUSSION & Credit and Debit Cards as they account for transactionANALYSIS highest volumes respectively.Channel Products Branch BankingThe main purpose of channels is to facilitate ease of The branch network expanded to 212 branchestransacting with the Bank by provision of alternative with 3 new branches added during the year tomethods of completing banking transactions which provide island wide coverage. These 212 branchesin turn saves time and resources for the customer. are organised into 21 Regions and assigned to 21We have seen a growth in both the need for face- Regional Managers in order to have a centralisedto-face transactions and the automated channels aswe achieve deeper penetration in providing financialservices. It is observed that key growth channels forpayments are mobile, cards and internet. The most Branch 212 Branches Banking 8 Super Branches Mobile Platinum Plus Priority Banking Centres Banking Sampath App (Apple & Android) SMS Banking ATM Banking Mobile Cash Telebanking SMS Alertz Internet Banking Extended ATM Network Easy Cheque Deposit Machines Cash Deposit ATMs Off Site ATMs Debit Cards Foreign Currency ATM Credit Cards Sampath Vishwa Sampath Pay-Easy M-Commerce Sampath Internet Payment Gateway Products Visa Debit Cards Sampath Cargills E-Remittance X-SET Co-Branded Card Sanhinda Saver Visa Debit Card Other Value Additions Visa and Master Classic Visa Signature Visa and Master Gold Visa Infinite Visa Platinum AMEX Travel MPOS (Mobile Merchant Banking) IVR E Ticket/NFC Mobile Top Up through Bank Account Sampath EMTs Direct Web Payment EMTs to Mobile Cash Web Service Payment Door Step Banking Safety Deposit Lockers60

decision making process to expedite credit and 212 Annual Report 2013 Sampath Bank PLCother operational approvals. All regional officesare equipped with expert credit teams, who would Branchesbe appraising the need of the customers whilemaintaining quality and the uniformity of the credit 274decisions. In addition the centralised credit approvalprocesses have been facilitated in safeguarding of ATMsthe asset quality of the branch portfolios. Branchprofitability improved during the year as business at the Welipenna Interchange Zone, for thevolumes grew in the relatively young branch network convenience of the commuters. We also installedand as a result 31 newly opened branches started the first foreign currency exchanging ATMs at threemaking profits. locations and the first cardless ATM in the country during the year. We are committed to keeping paceSuper branches which provide 365 day banking with technological advances in enhancing the easewere expanded to 8 by adding another 5 branches of banking to our customers.to the network. These branches are popular amongthe customers due to the convenient business hours. Mobile BankingThis network would be further extended depending There was a 20% and 23% increase in Mobile andon the customer needs. Additionally, banking hours Telebanking volumes and values respectively inwere extended from the normal time on selective the country during 2013. Our mobile cash productsbranches based on the demand of the customers can be used by account holders as well as othersand to improve customer convenience. Five branches to remit money island-wide and are delivered via awere relocated to provide better infrastructure secure sms service which enables parties to transactfacilities to our customers including extended lobby through any network.areas, additional parking facilities and improvedaccessibility. Two of the relocations during the The Sampath Mobile App launched this year isyear were to premises owned by the Bank which available from the Apple Store and the Google Playare at prime locations in key cities in the country. Store facilitating banking through a smart phone.A further 115 branches were renovated to reflect It has proved popular with our customers and hasthe brand with improved exteriors and interiors been downloaded over 10,000 times to date. Weconsistent across the network providing a pleasant expect this trend to continue as the price of smartenvironment for our valued customers. Safety phones declines making the technology available todeposit lockers were introduced to 20 branches a growing youth population.facilitating safe keeping of customers’ valuables asa special service. Our Platinum Branch continues Internet Bankingto provide exclusive service to our high net worth The volume and value of the financial transactionscustomers unparalleled by any bank. We also set up effected through internet banking increaseda bank unit at the Mattala Ra japakse International significantly by 30.7% and 52.8% respectively,Airport (MRIA) mainly to service the passengers. reflecting the growing popularity of internet banking during 2013.ATM NetworkOur ATM network is one of the main attractions of the We successfully connected the ATM network to 10 other ATMBank in improving the account base and the deposit networks of leading banks, facilitating Sampath customersbase due to the convenience provided in conducting to withdraw money from 1,842 ATMsbanking transactions. Our value added ATMsprovide the facilities of withdrawing, depositing,transferring of funds between accounts, obtainingmini statements, exchanging foreign currencynotes and paying utility bills. Our own ATM networkexpanded to 274 machines including 10 off site ATMs.Our customers can use 1,842 ATMs spread islandwide with the amalgamation of 10 banks into our ATMnetwork through the ATM SWITCH. On an averagewe disburse Rs 14 Bn per month via our ATM network.We have been able to maintain the ATM availabilitytime at 99% level due to the prudent management ofthe network and timely replacement of old machineswith new units and up grading of the software. Weinstalled 2 off-site ATMs at the Southern Expressway 61

MANAGEMENT13 This year we focussed on expanding the overseasDISCUSSION & 20 networks that facilitate these remittances to provideANALYSIS greater accessibility to migrant workers coupled with 2011 6 enhanced service delivery for local beneficiaries toRemittances 2012 gain market share in this growing business segment.Sri Lankan migrant worker remittances surged over2013 We grew the number of overseas business partnersUS$ 6.7 Bn in 2013 and increase of 11.7% from the from 53 to 82 during the year covering key growthUS$ 6 Bn recorded in 2012. Migrant worker markets such as Italy, Cyprus, Dubai and Qatar andremittances were the highest contribution from a also agressively expanded the partner network insingle sector to the country’s foreign revenue and Saudi Arabia, Kuwait, Bahrain and Oman. Additionallyremittances amounted to over 9.9% of the country’s we have 10 Business Promotion Officers, who areGDP. Remittances are expected to grow to US$ exclusive to Sampath Bank, in markets that have10 Bn by 2017 with the implementation of stated high potential such as Saudi Arabia, Kuwait, Qatar,Government policies to increase skilled worker UAE and Italy. The launch of a new channel productmigration which attracts better salaries and perks. to support this key customer segment by combiningAt present it is estimated that there are over 1.7 Mn E-Remittance with Mobile cash meant that familiesSri Lankans working overseas which represents 17% can receive funds instantly to the receiver’s mobileof the country’s working population. which can be converted to cash through any Sampath ATM. Deeper penetration in existing markets Remittance was also a strategic priority which we achieved Commission Income through excellence in customer care and efficient Growth service. We were able to increase the volume of transactions by 22.3% which contributed to a growth % of 20% increase in Commission Income. Remittance Sampath Bank sponsored the Qatar Avurudu Festival, Transaction volume Padova festival in Italy and the Oman Vesak Festival Growth continuing its sponsorship of events celebrating Sri Lankan culture in migrant worker markets and also % to gain brand association. We also conducted Cash Wasi loyalty raffle draws during the Ramadan season 11 and the New Year season to reward loyal customers. 12 22 Our customers benefit from the ability to send and receive cash instantly, ability to withdraw around the 2011 clock, 24 hours call centre assistance, accessibility 2012 through a wide agent network, remittance notification 2013 via sms to beneficiary and the support of an island wide network of 212 branches. They also have a choice of transaction types to suit their particular circumstances which include Pay on Identification, Sampath Bank account credits, other bank account credits, receive to mobile and withdraw from ATM and payment to wow.lk and anything.lk to purchase goods via internet. We will continue to increase accessibility and penetration into migrant worker markets and invest in product innovation to tailor solutions for this key customer segment. Credit and Debit Cards 25 Years in Cards Sampath Bank was the first bank to introduce Credit Cards to Sri Lanka soon after the launch of the Bank.62

Our initiatives in both Credit and Debit Cards have Our Productsshaped the way Sri Lankans carry out their day to Sampath Bank continues to be the only Bank inday transactions and provided ease of access to Sri Lanka to have the world’s three leading cardcapital for urgent personal needs. We continue to franchises: Visa, MasterCard and American Express®.provide value to our customers and enhance their We aim to be the leading Debit and Credit Cardlifestyle through innovation in security, service and issuer in the country by providing superior value,collaborative arrangements with our merchant security, transparency and convenience that meetnetwork. the lifestyle requirements of our customers. Introduction of ATM Launch of first Visa First and Only Bank (SET) facility to Signature and Visa in Sri Lanka with all Sri Lanka Infinite Credit Cards to three ma jor Credit 1988 Card franchises (Visa, Sri Lanka Issue of first October 2010 MasterCard and MasterCard Credit American Express®) Card in Sri Lanka Introduction of first exclusive internet payment 2012 February 1989 Visa WEB Card to Launch of first American Issue of first Debit Sri Lanka Express® Travel PrepaidCard in South Asia with 2002 “Travel Lite” Card Cirrus and Maestro Issue of first Visa 2013 1997 Platinum Credit Card in Sri Lanka 2002 Credit Cards Debit Cards Pre-paid CardsVisa MasterCard American Annual Report 2013 Sampath Bank PLC Express® Visa Web CardInfinite Signature Platinum Gold Silver Co-Branded Gold Silver Affinity Co-Branded Travel Lite 63

}MANAGEMENT Credit Card Acquiring2010 2010 DISCUSSION & Volume 2011 2011 ANALYSIS 2012 2012 Rs Bn 2013 2013 We aim to be the leading Debit and Credit Card 40 issuer in the country by 35 providing superior value, 30 security, transparency 25 and convenience. 20 15 Industry 10 The number of active cards in the country decreased by 2.7% from 952,256 at the beginning of the year 5 to 926,949 by the third quarter of 2013. Globally accepted cards account for 96.1% of the total active Credit Card Portfolio cards and cards accepted only locally account for the remaining 3.9%. Outstanding balances on credit Rs Mn cards recorded an increase of 5.6% by end of the first half in 2013 from Rs 44.4 Bn as at end 2012 to 6,000 Rs 46.9 Bn as at 30th June 2013, despite the decrease 5,000 in the number of cards reflecting an increase in 4,000 usage of cards. CBSL has a cap on the interest 3,000 chargeable on credit cards due to disparities of 2,000 rates charged historically which was decreased from 1,000 28% to 24% during 2013 in line with the interest rate movements in the country. 0 Debit Cards have grown in popularity with over 12 Credit Card Usage Mn active Debit cards in the country as at the end of the 3rd quarter reflecting a growth of 16.1% over the Rs Mn previous year. 15,000 Sampath Bank is the only bank in Sri Lanka to have the world’s three leading card franchises. 11,750 8,500 5,250 2,000 2010 2011 2012 201364

Our Performance special programme that proactively reaches out to Annual Report 2013 Sampath Bank PLCGrowth in the number of active cards was 17% during them. A staff turnover ratio of 2.5% was maintained2013 despite the industry experiencing a decline in the branch network. We recruited 264 staff to theof 2.7%. Similarly usage also increased by 13.7% branch network during 2013 of which the ma joritywhile the industry usage increased only by 1%. We was from the region covered by the allotted branch.continue to focus on growing our merchant networks The Bank continues to have one of the lowest staff towhich facilitate e-commerce and point of sale branch ratios in the sector of 11.transactions. Sampath Bank has the six largest chainmerchants in Sri Lanka on an exclusive basis due to Future Directionthe superior service provided by being responsive to We will continue to focus on growing our deposits,the needs of both the customer and the merchant. advances and remittances to increase our marketWe have also promoted e-commerce through share in each business line. Our focus, customercollaborative arrangements with e-commerce convenience through extended hours, a variety ofservice providers who are aggregators linking many delivery channels and taking our services to thesmall players. The introduction of mPOS by the Bank customer in order to further enhance customer valuehas facilitated linking SMEs to the merchant systems have served us well to date and we hope to buildas it has the ability to convert android mobiles to a upon our heritage of shaping the banking industry inpoint of sale terminal. We have converted more than the country through innovation.6,000 of our customers from printed statementsto e-statements since July 2013 in line with the We expect competition in deposit mobilisation toenvironmental targets of the department. Key intensify in the coming year as demand for creditfactors that facilitated our growth in 2013 include increases with the policy measures taken serve tothe positioning of our cards in the market as the stimulate private sector growth. Our focus will be`Responsible Choice` and our exclusive promotions on increasing our market share in each businesssuch as `Town on Sale`, sponsorship of the largest segment through increased business volumesretail events such as the Colombo International Book generated from the Branch network. Growth of theFair, the Singer Lifestyle Fair and the zero interest personal banking credit portfolio is likely to remaineasy payment scheme for consumer durables, travel moderate due to measures taken to reduce productand hospital bills. concentration in gold loans. Pressure on Net Interest Margins is expected to continue with intensifiedOutlook competition and regulatory measures that will favourOur overall strategy will be to grow all cards as we narrowing spreads in the industry. The slow growth inbelieve that the country’s economic aspirations the CASA mix is also expected to continue the trendcoupled with the pace of technological innovation affecting margins in the industry. Remittances andpresent exciting opportunities for growth. We cards are expected to be the key growth areas ofcontinue to focus on providing convenience and business in the coming year in line with global trends.lifestyle enhancements to our customers to fuel ourgrowth in line with changing consumer preferences. 65The Bank will continue to grow its merchant networkas well using technology and customer service tofacilitate merchant acquisition. We will continue tofocus on security as well to ensure that our card livesup to its promise of being the Responsible Choice.Investing in peopleThe Personal Banking Division is responsible forthe branch network of the Bank and therefore hasthe highest head count totalling 2,357 employeeswhich amounts to 63.9% of the total head countof the Bank. Developing and motivating our staffis a strategic imperative as our success dependson a highly motivated and productive team. Weinvest in training all our staff through a mix of faceto face workshops with both internal and externaltrainers and also e-learning products to nurturea culture of risk awareness and ensure sufficientknowledge of the Bank’s systems and processes.These programmes are done in co-ordinationwith the Bank’s Human Resources Function. A newinitiative has been launched to ensure that thebranch employees’ needs are identified through a

MANAGEMENTDISCUSSION &ANALYSISCORPORATE BANKINGAggressive business growth through superior customer serviceSetting The Corporate Finance Division of the Bank US$ 100 Mnbenchmarks for raised US$ 100 Mn through HSBC, the highest 24 Mwthe banking sector syndicated loan raised by a bank listed on the Colombo Stock Exchange in a single added to National Grid transaction.Leader in Development Banking has played a lead rolefinancing non- in financing the non conventional renewableconventional energy (NCRE) sector of the country andrenewable energy supported such projects to add over 24 Mw tosector the national grid during the year 2013.Aggressive Asset Corporate Credit asset portfolios grew Corporate CreditGrowth significantly despite the sector experiencing a moderation in credit growth 40%Growth in Export We were able to record a significant growth Growth Rate - Growth Rate –Volumes in export trade volumes through superior Bank Sri Lanka service and competitive pricing in a year when overall export volumes in the country shown a 30% 6.9% moderate growth Corporate Overdraft Facilities Receivable Financing/Securitisation Credit Money Market Loans Term Funding Import / Export Financing Margin Trading Development Banking Short, Medium and Long Term Loans Development Finance Corporate Sourcing and managing refinance funds Finance Syndication - Participation, Arrangement and Management FCBU Structuring and Investment in Corporate Debt Instruments Custodian Services International Fund Raising Activities One Stop Shop for FCBU Clients Working Capital Financing Trade Finance Term Funding and Advisory Services Trade Services International Operations Bank Note Operations66

OUR STRATEGY WAS TO SUPPORT THECOUNTRY’S AMBITION TO BE THE REGIONALHUB FOR ENERGY, AVIATION, MARITIME,KNOWLEDGE, COMMERCIAL AND TOURISM.Our corporate banking strategy is to support the country’s The Corporate Branch has the largest asset book of the Bankdrive towards Hub statusCorporate Banking is a key business line of the Maritime, Knowledge, Commercial and Tourism. We Annual Report 2013 Sampath Bank PLCBank providing tailored solutions for the financing also continued our support to the agriculture sector,and investment needs of our clients through the focussing particularly on the value addition to thesespecialised divisions which comprise Corporate commodities and also ensured that we maintain aCredit, Development Banking, Corporate Finance, minimum of 10% lending to the agriculture sector asForeign Currency Banking Unit (FCBU) and Trade directed by the Central Bank. The online process forServices. Our income is derived from interest income documentary credits was further streamlined andfrom loans and advances, commission through security features were added. Large Corporates withtrade related transactions, bank guarantees, inward branch networks were offered collection accountoutward remittances and exchange income on sale facilities which can be managed through Sampathof FCY notes. Vishwa improving the CASA mix for the Bank while providing an enhanced service to the customer.Corporate Banking accounted for 17.6% InterestIncome and 34.0% of the Bank’s Advances portfolio Corporate Creditduring 2013. The Advances portfolio of Corporate 2013 was a challenging year for corporate lendingBanking grew by 38.2% in 2013 surpassing the due to low demand for credit from the private sectorgrowth rate of the previous year despite an overall and the excess liquidity circulation in the marketdeceleration in demand for private sector credit leading to a downward trend in the lending rates.growth observed in the Banking Sector. The Bank was Despite the challenges, the Corporate Branch wasable to increase its market share in this intensely able to record a 40% growth in advances duringcompetitive customer segment due to measures the year which was due to increasing the sharetaken to enhance its service levels. An intensive of existing clients’ wallets and canvassing of newtraining initiative to enhance the knowledge clients through continuous marketing efforts madeand productivity of the Corporate Banking team by the team. The Corporate Branch also contributedmembers enabled the Departments to compete significantly to the overall performance of the Bankeffectively while increasing their competency and with the largest asset book of the Bank. The growthefficiency. Our strategy was to support the country’s in advances was achieved while maintaining aambition to be the regional hub for Energy, Aviation, quality loan book. 67

MANAGEMENTDISCUSSION &ANALYSISGROWTH IS PLANNED THROUGH DEEPERRELATIONSHIPS WITH THE EXISTING CLIENTSAS THEIR PREFERRED FINANCIAL SOLUTIONPROVIDERThough we anticipated a larger contribution from beneficial to both the Bank and the customer.trade financing towards the advances growth, the In order to achieve the business strategy our specialyear was not so conducive for importers. Most of the emphasis would be given towards generating lowlarge corporates engaged in commodity sales took cost funds, reaping the benefits of the mergerconcentrated efforts to cut down on their imports with the Head Quarters Branch in 2012. We willdue to selling and collection constraints in the market endeavour to offer total solutions to corporate clientsresulting from slack economic conditions which covering investments, deposits, collection and cashprevailed during the year. Heavy rains and drought management which will be mutually beneficial tohad adversely affected certain segments of the the Bank and the client as this effort will help us toagriculture sector resulting in a drop in the fertiliser offer competitive rates to our prime clients whileand chemical imports. Food and consumer durable attracting a fair share of their business. We will addimports closed the year with a positive growth. more staff to the business development team toAccordingly, we were able to record a growth of 14.4% facilitate identifying opportunities and convertingin import turnover compared to 2012. them to business while increasing back office support to deliver superior service standards.Export turnovers grew by 37.7% despite the setbacksin the Middle East region. A larger quantum of tea Development Bankingexports was to this region but with the constraints The Development Banking Division (DB) recorded anexperienced in the said market, our exporters have impressive 55% advances growth over the last yeartaken measures prudently by market diversification mainly fuelled by the Renewable Energy sector whichand new markets development to retain their due contributed 56% of the total Development Bankingshare. Our customised export financing solutions to loan book.exporters by sharing the benefit of low cost fundingavailable in the market enabled us to acquire market The following illustrates the sector wise lending of DB;share during the year. Sectorwise lendingFuture Outlook of DBThe Corporate Branch will focus on business strategyto contribute actively towards the economic 0.10% 1.03 0.04%renaissance of the country to reach beyond middleincome status by 2016. Growth is planned through 0.18%deeper relationships with the existing clients as theirpreferred financial solution provider by catering for 1.67%growth while developing new targetted relationshipsto increase market penetration. Accordingly, 8.01% 9.81%we will identify potential clients in the selected 7.65%priority sectors, namely, energy, aviation, maritime,education, commercial & tourism and expand our 11.93%exposure to those sectors maintaining the risk andreturn in line with the Bank’s defined risk appetite. We 59.58%will also enhance our market share in trade financingby offering structured trade financing solutions to Agriculture Other Customersthe importers and exporters which will be mutually Construction Other Services Infrastructure Tourism Manufacturing Traders New Economy Transport68

Rs 123 Mn to Micro ProjectsMul Oya Hydro Project - Powering the Nation - The Cleaner & Refinance and Subsidized Funding Annual Report 2013 Sampath Bank PLCGreener Way We have facilitated the lending of nearly Rs 6.3 Bn under refinance and subsidised credit lines sourcedKey Activities externally from the World Bank, Asian DevelopmentThe ma jor activity under the Development Banking Bank, Central Bank of Sri Lanka (CBSL), Ministry ofDivision is to carry out project financing activities for Finance, Ministry of Industry & Commerce and themedium, large and extra large categories. Coconut Cultivation Board during the year. In order to promote refinance lending and SME financingDB sources refinance and subsidise credit through the branch network, DB has taken severalschemes for the MSME (Micro, Small and Medium initiatives by enhancing competencies of creditEntrepreneurs) sectors. Lending activities utilising officers across regional offices and branches. Thesethe Bank’s Investment Fund Account are also included training nearly 200 credit officers selectedadministrated by the DB. from the branch network and 21 regional offices on SME project financing.We also engage especially with Micro entrepreneursto develop their technical capacity and improve Furthermore, the Investment Fund Account (IFA)financial reporting to provide increased access introduced in 2011 continued its growth momentumto capital for business growth through the branch further strengthening the Bank’s strategic focusnetwork. on the SME sector. The Bank’s reach across 212 branches virtually representing all parts of theThe Bank’s overall strategic direction for country has been a key strength in promoting thedevelopment banking is closely aligned to national above credit lines to the SME sector in line withpriorities and a dedicated team of highly skilled the country priorities for increasing provincial GDP.specialists have been developed to carry out the The Bank’s utilisation of the IFA funds in lending toabove activities. the sectors identified by Central Bank of Sri Lanka (CBSL) is around 96%. The Bank is confident that itProject Financing can disburse the balance 4% to qualifying loans andThe Development Banking Division provides therefore it will not be necessary to transfer fundsproject financing for medium, large and extra to the Consolidated Fund as per the CBSL directionlarge commercial ventures. We take a lead role in issued this year since the total value of facilitiesfinancing the non-conventional renewable energy approved under IFA and pending disbursement can(NCRE) sector of the country and our portfolio cover the balance amount.includes projects relating to almost all NCRE sources,the most prominent being hydro power together with Developing Micro Entrepreneurswind power and bio-mass projects. The hydro power Under Micro financing, due attention was givenprojects include run-off the river and regulated water to “financial inclusiveness” where we disbursedways as well as low head and high head projects. 442 loans by 31st December 2013 amounting to anThese projects have added over 24 Mw to the approximate value of Rs 123 Mn to start up micronational grid during the year 2013. enterprises or expanding existing enterprises in agriculture, livestock, domestic/cottage industries and trading sectors. Customer awareness and training programmes conducted included the under-served Provinces such as North, East, Uva,Total Loans Granted under IFA (Rs Mn) 2013 - Rs Mn 2012 - Rs Mn % Change 2,339 1,356 72.5 69

MANAGEMENTDISCUSSION &ANALYSISSabaragamuwa, North Central and North Western. Future OutlookA special focus was given to the branch network Development Banking will continue to drive businessin the Northern and Eastern provinces covering volumes through financing the energy sector,Vavuniya, Mannar, Kilinochchi, Jaffna, Manipay, Kayts, infrastructure development, agriculture, ICT andNelliady, Chunnakam, Chankanai, Mallavi, Thirunelveli, software development. We will also focus on selectedChavakachcheri, Oddamavady, Chenkalady, investments in the education sector for tertiaryBatticaloa, Kaluwanchikudy, Kinniya, Trincomalee, education, tourism and healthcare in line with theKantale, Muttur and Ninthavur. country’s identified areas of growth. The focus on entrepreneurship development and capacity buildingDuring 2013, we continued the “Specialised Micro activities will continue particularly focussing onEntrepreneurs Development Project” to inculcate support for MSMEs engaged in priority sectors andand improve entrepreneurial and technical skills with persuade them to follow and comply with the normsthe assistance of German Technical Corporation of social and environmental concerns and statutory(GTZ) and Competency-based Economies through requirements. Internal programs aimed at enhancingFormation of Enterprise (CEFE) Net Sri Lanka for 300 competencies and knowledge of team members ofmicro entrepreneurs who are ex-LTTE combatants branches and regional offices will be continued toand war widows to help them to start up or expand sustain the support towards the vital MSME sector.existing businesses in the Kilinochchi, Mullaitivu andVavuniya Districts. Identified entrepreneurs werefinanced through credit lines at concessionary rates.International Trade Services International Bank Notes Operations Operations Back Office Inward and Bank Notes functions of Outward Repatriation Imports and remittances Exports Operation of SWIFT Pay Offices at Operations Katunayake and Mattala Airports Correspondent BankingThe International Division is responsible for Trade processing of documentary credits on the sameServices, International Operations and the Bank day. The centralised department also establishedNotes Operations. Trade Services and International an office dedicated to Imports within the Old MoorOperations function as cost centres as the revenue Street branch to cater to the specific needs of theis accounted for in the respective marketing functions customers of this branch. This structure has enabledwhile the Bank Notes Operations functions as a us to provide competitive rates to our customersprofit centre. for both foreign currencies and tariffs due to productivity efficiencies. We have also minimisedTrade Services processing times and errors using robust IT platformsTrade Services continued to operate extended which form the backbone of our infrastructure.Banking hours to facilitate later cut-off times and Improvements were also made to Sampath Vishwa70

Corporate Trade facilitating submission and branch network and the foreign currency ATMs. Annual Report 2013 Sampath Bank PLCmonitoring of documentary credits/collection online. Competition in this business line has increased dueAdditionally, the Trade Service Department was to new entrants into the market which has resultedrefurbished to create a more spacious customer in narrowing margins. The volatility of foreignfriendly environment for trade customers. The currencies during the first half of the year alsocentralised one stop shop concept has also meant impacted the income levels. Actions to maintainhigher levels of specialisation and expertise that is our leadership position in this business segmentunique to Sampath Bank. Our staff includes Certified were implemented during the year thus enablingDocumentary Credit Specialists who are able to us to consolidate our position. We opened theoffer expert advice to our customers. Our network second Bank Notes Operations Collection unit inof correspondent banks has also grown by 32 during Negombo and conducted awareness programmesthe year. These initiatives enabled us to increase on foreign currency notes within the branch networkexport volumes by 30% and import volumes by 2.3% to increase business volumes from branches. Theduring the year although country earnings from foreign currency ATMs provided a new source ofexports increased only by 6.9% and expenditure on bank notes and we were able to canvass one of theimports decreased by 0.7% respectively. Income leading money exchange companies and some newgrowth was 14.5% for 2013 due to increased team authorised money changers to our operation whichproductivity, efficacy and effectiveness of the also helped increase the volumes of bank notes. Theprocesses. BNO Team has acquired the specialised knowledge and skill levels to detect any type of counterfeit FCYInternational Operations notes which has minimised errors and investment inThe International Operations Department is the expensive counterfeit detecting hardware.centralised processing unit for Inward and OutwardTelegraphic Transfers (TT) of the Bank. Volumes Future Outlookof Inward TTs’ have grown by 15% and Outward We expect the exports to increase in 2014 in lineTTs’ by 20% during the year due to the shifting of with the trend observed in the second half of 2013payment methods of Exports to Open Account and and a slight increase in imports as well althoughImports to Advance Payment and Open Account growth is likely to remain in the low single digits.despite a challenging environment with intense However, business volumes for documentary creditsprice competition and development of alternative are likely to decline as imports to Sri Lanka arechannel products in the banking sector. Income shifting from other payment methods to Advancegrowth was 47% during 2013 due to the increased Payment and Open Account methods with thebusiness volumes. It is noteworthy that productivity removal of exchange control restrictions in 2011.of the team and efficient processes enabled us to Exports are also shifting to Open Account methodhandle the increased volumes without adding to the due to global trends. However, as the Sri Lankanhead count of the business unit. We also completed economy is import driven, we expect changes inimplementation of the centralisation process for the tightening measures which have curtailed theOutward TTs by fully utilising the expert knowledge growth of imports and consequentially, a growthat the centre. This has resulted in minimal lapses and in trade volumes. We also expect a boom in theenhanced the efficiency and effectiveness of the construction and tourism sectors in the comingprocess and also enhanced the knowledge within the years which will contribute positively towards andivision. We also introduced shift work for the SWIFT increase in trade volumes as well. Consequently,Unit to offer a more flexible and efficient service to International Operations Department is expected tothe branches and departments of the Bank in order grow as Inward and Outward TTs increase with tradeto handle increased volumes of business. HSBC Bank related transactions migrating towards Advance(USA) and Citi Bank (USA) have presented us with Payment and open account methods. We are in theawards of excellence in achieving a very high rate of process of implementing fully automated processesStraight Through Process (STP) for payments for the for both Inward and Outward remittances in orderyear 2012. to provide a more efficient service to customers and also to attract higher business volumes resultingBank Notes Operations (BNO) from the above migration. We are confident thatSampath Bank imports foreign currency notes to the initiatives taken to strengthen the Bank Notesthe country and is the largest bank repatriating Operations will enable us to retain and furtherforeign currency notes from the country. We derive consolidate our leadership position as the largestexchange income from these operations which exporter of foreign currency notes in the country.amounted to Rs 140 Mn in 2013, reflecting a growthof 12.6% over the previous year. Income growth wasmainly due to increased volumes of currency notescollected from banks, money exchanges, our own 71

MANAGEMENTDISCUSSION &ANALYSISForeign Currency Banking Unit (FCBU) Corporate Finance has also raised short term workingThe FCBU advances grew by 21.7% from US$ 133.8 Mn capital funds from foreign banks on both bilateralto US$ 162.9 Mn during the year despite the relaxation terms as well as via structured Trade backed Bankersof exchange controls allowing easier access to foreign Acceptance loans for the Bank enabling the Bank tocurrency loans for local companies, thus reducing offer competitive rates for onward foreign currencythe demand for FCBU loans. Lending to apparel lending on a needs basis.and related sectors contributed to 28.0% of assetgrowth with the rubber-based manufacturing sector We have also been active in the growing market foraccounting for a further 26.0%. Profitability increased corporate debt instruments and grown this portfolioby 18.9% due to increased interest income and by over 100%. Renewed interest in debenture issuessourcing low cost funds from foreign borrowings. The following 2013 Budget proposal to exempt withholdingunit continued to be one of the leading providers of tax on interest income earned by investing in listedtrade finance services to this sector, and was the main corporate bonds and debentures to create a morecontributor of the growth in trade volumes in the Bank. vibrant corporate debt market provided many opportunities. Accordingly we invested in listedTaking advantage of an influx of interest from debentures totalling to over Rs 1.3 Bn based on a risk /overseas banks to lend to local banks, especially rewards assessment in line with the Bank’s investmentfrom the Middle East, our funding base shifted from policies.reliance on deposits to very competitively pricedborrowings. The Bank was the co-arranger for a securitised note issue of Rs 3 Bn for a top rated Finance Company inAt the same time FCBU operations were also which the Bank also invested Rs 1 Bn. The Bank alsoimpacted by intense competition for trade finance entered into Syndicate partnerships for an off-shorebusiness from the foreign banks domiciled locally, power project, a hotel development project in Colombowhich directly utilised their own low cost fund base to as well as a PET processing plant in the South of theoffer lower rates to attract higher business volumes. country which we expect to disburse fully in 2014. As a result Corporate Finance was successful in recording anWhilst FCBU’s lending for overseas projects did not outstanding growth of 56%, with its portfolio reachinghave a significant growth, several facilities in the Rs 17.4 Bn.pipeline are expected to be booked during the firsthalf of 2014. TREASURY OPERATIONS The Bank Treasury concluded another successfulCorporate Finance year under trying circumstances and as the centralCorporate Finance handles the fund raising to meet administrator of all fund movement of the Bankthe requirements of the Bank and also arranges short managed to provide all stakeholders with the muchterm working capital lines for specific requirements of needed support to carry out their daily functionscorporate clients. During the year this division raised while achieving the desired profit levels to improveUS$ 120 Mn for the Bank in two separate transactions. the profitability of the Bank. In doing so the TreasuryA syndicated loan of US$ 100 Mn was arranged also ensured that all regulatory requirements inthrough HSBC which took the deal to the market for maintaining liquidity and statutory ratios were met.US$ 45 Mn and closed the deal at US$ 100 Mn in viewof the very vibrant appetite for the syndication. This One of the main challenges the Bank had to facewas the first such successfully concluded deal over during the year was balancing excess liquid fundsthe US$ 100 Mn mark among the Sri Lankan private throughout the year. This was mainly due to the factsector banks. We also arranged a credit line of US$ that with the confidence the depositors had with20 Mn from Proparco, the ‘private sector’ arm of the Bank, they continued to deposit funds to thethe French Development Agency (AFD) in which the Bank despite the Fixed Deposit rates being reducedFrench government has a ma jority stake. These long throughout the year. As a result the Treasury had theterm funds are specifically earmarked for renewable task of managing the excess liquidity while providingenergy projects: expected to be a key growth area the best rate of return to the Bank. This task provedfor the country. a further challenge as the yields of Treasury Bills, the main source of investment for liquid assets was on a downward trend for most part of the year.72

Interest Rate Money Market Products Products Fixed Income Securities Repurchase Transactions in Government Debt Derivative Interest Rate Hedging Products FCY and Interest Rate Swaps Foreign Forward Rate Agreements Exchange LKR and FX Options Products FX Dealing Customer Forward Contracts FX HedgingThe 364 day Treasury Bill Yield had dropped by One year Treasury bill rate movement in 20133.09% from 11.38% at the beginning of the yearto 8.29% by December. This brought significant %pressure on the Net Interest Margin of the Bank’sLiquid Funds as the reinvestment yields of maturities 11.7 11.3during the year were significantly lower. 11.1 11.4 10.7 10.6 11.3 10.9 10.0 10.6 10.6USD/LKR Movement in 2013 (Rs)Rs 9.7 127.65 127.53 132.95 131.25 8.3 130.40 131.75 132.05 Dec-12 130.90 Jan-13 130.75 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 126.70126.20 126.75 126.45 The year also saw several policy rate adjustments by the Central Bank. The main CBSL Repurchase Rates and Reverse Repurchase rates which stood at 7.5% and 9.5% were reduced by 0.5% to 7.0% and 9.0% in May and again by 0.5% to 6.5% and 8.5% respectively in December. The Statutory Reserve Requirement which stood at 8.0% too was reduced by 2.0% to 6.0% in July. The reduction of these rates too meant that the liquidity further increased providing more funds for the Treasury to manage. The Bank Notes Operation under the purview of the Treasury continued its impressive performance in 2013. The Bank managed to exceed the repatriation achieved in 2012 thus recording the highest volume in the history of the Bank. The Treasury continues to provide the much needed competitive rates for the Bank Notes Operation to bring in the large volumes while maintaining the profit margins. This was done by the Treasury continuously monitoring the movements in the global foreign currency marketsDec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Annual Report 2013 Sampath Bank PLCThe Sri Lankan Rupee was volatile against the US$throughout the year which saw it appreciating byRs 2.25 to Rs 125.40 per US$ by April, from the 2012year end rate of Rs 127.65 per US$. The Sri LankanRupee then depreciated to Rs 133.20 per US$ byAugust only to see it appreciating again to Rs 130.75per US$ by December. This continued volatilityprovides opportunities to make substantial profits ifthe market movements were anticipated correctly.Throughout the year the Treasury managed to havepositions in the correct side of the market thusmanaging to maintain the required profitabilitylevels. 73

MANAGEMENTDISCUSSION &ANALYSISTHROUGH THIS EFFECTIVE OPERATION THE BANKMANAGED TO MAINTAIN ITS DOMINANCE IN THEBANK NOTES OPERATION DESPITE INCREASEDCOMPETITION FROM NEW ENTRANTS.and also the local factors that govern the Bank Notes The Treasury will continue with its current policiesOperations and quoting rates accordingly. Through to the year 2014 as well which aims to provide athese rates provided from the Treasury the Bank superior service to all stake holders through efficientNotes Operations department and special units set service standards and products suited for individualup at Colombo and Negombo acted as effective customer requirements.collection points for Bank Notes. Through thiseffective operation the Bank managed to maintain RECOVERIESits dominance in the Bank Notes Operation despite The Recoveries Department is key to the overallincreased competition from new entrants. performance of the Bank as its main function is to manage overdue advances with the objectiveThe Treasury was instrumental in facilitating the of minimising Non Performing Advances throughgrowth in the Remittance business by providing intervention with the customer and other relevantcompetitive rates to all Foreign Currency Remittance divisions of the Bank such as the branch network,houses especially in the Middle Eastern Region. As a credit and legal divisions.result the Bank’s overseas representatives managedto canvass more business to the Bank and enhance Performancethe status of Sampath Bank as one of the ma jor The Recoveries Department continued its focusforces in the remittance business. on minimising new entrants to the Non Performing portfolio through constant monitoring of arrearsThe Treasury was instrumental in coordinating the and initiating prompt action in collaboration withraising of a listed Debenture Issue from the market in Branches to prevent arrears escalating to theDecember, 2013. non performing category. Greater automation of monitoring activities using software developed withinAWPLR (Monthly) Movement in 2013 (%) the Bank has facilitated tracking of recovery actions and provides up to date information to all involved in% recovery process, greatly enhancing decision making and follow up activity. The department also focussed 14.1 13.1 on providing reports customised for branches and 13.9 automation of arrears letters and reminders with 11.8 11.8 communications in all three languages to ensure to 14.4 12.5 facilitate greater understanding of the customer. 13.6 11.9 10.9 We create more customer friendly mindset among 11.5 the staff of Recoveries Department thereby the borrower is made to feel that whatever the steps we 9.9 are taking is in his own interest. The Bank goes to the clients / business venues to negotiate for settlement 10.3 arrangements, without waiting them to visit the Bank. Officers of Recoveries Department made highestDec-12 number of visits during last 12 months to have direct Jan-13 interaction/discussion to provide “solutions” to the Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-1374

customers in arrears instead of “pressurising” them. The Acquired Assets Division within the RecoveriesNegotiated settlement continues to be the preferred Department was successful in disposing acquiredmethod of recovery to ensure that the customer properties which contributed to the profitability ofhas every chance to repay. Officers have been the Bank as impairment charges had been incurredempowered to negotiate and recommend waivers previously.of interest to expedite the normalising processesand encourage the customer to repay. Recovery The Recovery Division feeds back to the Creditof advances that cannot be resolved through the Policy Review Committee to ensure that there isnegotiated settlement process can be escalated learning from the recovery processes to improvethrough normal legal action, parate execution and the Bank’s credit granting policies and procedures.mortgage bond action. The Bank made every effort The Recoveries Department also conducts trainingto rehabilitate the borrower by reviving the business programmes for its division and Branch Managersand offering easy repayment terms instead of filing on a regular basis to promote knowledge sharing,inactions, unless the borrower is notoriously inflexible order to improve the recovery process.or ill motivated. Outlook The Bank will continue to improve its processes for minimising new entrants to NPA and implementing successful strategies for recovery of NPAs. Prudent provisioning policies provide impetus to recovery of dues as there is prompt recognition of possible losses and escalating levels of attention. We expect our credit quality to improve with the actions taken to curtail exposure to pawning and the extensive impairment provisions made during the year.Statue of prosperity that brings successEMPLOYEESCreating a winning culture through effective talent managementDeveloping We invested Rs 40.7 Mn in developing and Investment in TrainingTalent training our employees through internal and external training programmes. The training Rs Mn programmes covered 90% of our employees in 2013. 26.0 62.2 We have also promoted 243 members of our Annual Report 2013 Sampath Bank PLC team reaping the benefits of our investments in 34.9 the past. 40.7 Sampath Bank won awards for Talent 2010 Management and Training and Development 2011 Award at the National HR Conference 2013 2012 organised by Institute of Personnel Management 2013 of Sri Lanka. 75

MANAGEMENTDISCUSSION &ANALYSISEMPLOYEES CONTD.Creating a winning culture through effective talent managementRetaining Sampath Bank has a high employee retention Retention rateTalent rate due to: high levels of employee engagement 97% opportunities for career progression an organisation culture that lives the values a platform that allows employees to realise their potentialDiversity We are an equal opportunity employer and have Female Female participation a diverse team as regards to gender, age and participation at in Labour Force ability. Sampath Bank We encourage fluency in all three languages and 37% 36.3% provide opportunities to learn English and TamilProductivity as the ma jority are fluent in Sinhala. ERmevpelnouyeeeper Employee productivity has increased over the Rs Mn Rs Mn years in terms of revenue per employee. The 11 13 profit per employee is also on an upward trend if the impairment charge for losses on gold loans 46,526 is disregarded. A commitment to develop our team, efficient systems and processes combined with investments in technology are the key drivers of employee productivity. 9 38,797 2011 27,577 *20122013 Revenue Revenue per Employee1 Source: Sri Lanka Labour Force Statistics, Quarterly Bulletin, 2nd Quarter 2013Sampath Bank relies on a highly motivated team of The Board HR and Remuneration Committee has3,688 Employees who serve in Head Office and in oversight responsibility and the Managing Directorthe Branch Network island-wide to deliver results on has executive responsibility for the functions ofour defined strategic goals in line with our values. the HR Department. Annual plans, policies andOur team includes 372 new employees recruited in recruitment of Key Management Personnel (KMP) are2013 of which 195 were to fill new positions created approved by them.during the year. Growth of our employees was limiteddue to the high level of recruitment over the past The HR model which has been developed internallythree years and was limited to 5% for 2013. The Bank encapsulates the vision and the values of the Bankhas invested Rs 40.7 Mn on training and leadership and provides a framework for HR planning anddevelopment which covered 90% of our team activities.members. Retention remains high at 97% due to highsatisfaction levels in our team.76

Recruitment Policy The Bank has a comprehensive framework of HR policies formulated to develop employees in line with its Transparent and Consistent HR Policies + Employee Value Proposition Talent Talent Acquisition Vision: The Growing Force in Sri Lankan Financial Services strategic business needs and nurture a performance oriented culture. Management Career and Succession Training and People, Profit, Planet Development Policy Winning Culture Sampath Values Governance / Compliance Winning Culture Learning Customer Focus Leadership Development HR Policy Framework Benefit Management OUTCOMES: Effective Processes / High Performance / Customer Delight / Corporate Image / Employee Relations Performance Motivated Team Policy Results Training and Development Knowledge Management Reward Team Work Management Policy Continuous Process – Improvement Professional Performance Standards Innovative Solutions Management Policy (Cost, Quality, Delivery, Flexibility, Industrial Relations Customer Service) Policy Effective Performance Annual Report 2013 Sampath Bank PLC Management Rewards and Recognition High Productivity Internal Communication Interpersonal Relations Industrial Relations Code of ethics Responsible and Sensitive Individuals77

MANAGEMENTDISCUSSION &ANALYSISThe above policies are reviewed once in three years Our Reward and Recognition Policy was extendedand updated whenever necessary. Application of to children of employees for the first time inpolicies in a consistent manner is key to effective two programmes - a scholarship scheme tomanagement of an ambitious and able team of reward outstanding academic and national levelprofessionals that make up the Sampath Team. achievements and a contest which encouraged the development of talents and rewarded those withEmployee Engagement outstanding performance.A high level of employee engagement is key to ahighly motivated team and we have provided many We also encourage our employees to acquaintplatforms for formal and informal engagement themselves with the financial performance of theamong our employees. Bank as key stakeholders. Quarterly results of the Bank are circulated to all staff to keep them apprisedAs the ma jority of team members are assigned to the of the financial position and performance againstBranches we implemented a new programme named key indicators of the Bank. As a large number of teamRegional HR Coordinator Programme to proactively members are shareholders of the Bank, they get thereach each individual team member, to identify opportunity to air their voices at the Annual Generaltheir issues and growth potential in order to provide Meeting.appropriate HR solutions. This has enabledus to improve their motivation and performance Diversitylevels by addressing the issues identified together Sampath Bank is an equal opportunity employer andwith the line managers. We achieved 70% coverage we have a team that is diverse in terms of gender,on this programme in 2013 and will continue it on an age and physical ability. Overall female participationongoing basis. on our team of 37% is higher than the country’s female participation in the labour force which standsA structured Employee Communication Plan was at 36.3% as at September 2013, as per the mostimplemented with the following elements to facilitate recently published Sri Lanka Labour Force Statistics,knowledge sharing and ideation in addition to the Quarterly Bulletin, 2nd Quarter 2013. There is femalegeneral communication. The elements include a participation at all levels of management althoughmonthly knowledge sharing publication, in the the participation rate declines in the higher levels ofBusiness forum to share creative business proposals management.with the Managing Director and Team Brief inputsto Heads of Departments to discuss with teams at Our team includes employees whose ages vary frommonthly meetings. In addition, the Sampath Bank the lowest band of 19 to 21 years to those who areEmployee Handbook was re-designed to be more over 55 years. The ma jority of the employees are incomprehensive. The Employee Grievance Handling the 21 - 30 year category as many were recruitedprocess was also re-designed for better alignment during the rapid expansion phase which took placewith the HR policy framework in order to strengthen within the last four years. There is more externalthe process. We also established an employee recruitment at entry level than at other stages duecounselling cell branded as “Helping Hands” which to the Bank’s policy of giving preference to internalis to ensure that employees have access to internal candidates in selecting employees for higherexpert advice on handling issues that may arise. positions.All employees have access to the intranet toincrease the ease of communication, knowledge We are conscious of the need to ensure that oursharing and knowledge management. Sampath staff is able to communicate in all languages andSandeshaya, a quarterly newsletter updates team therefore have provided opportunities to improvemembers on events and achievements of the Bank their English and Tamil language proficiency. We haveand its employees. 10 team members with hearing impairments who work in identified areas of the business where theirThe Bank launched a competition to gather creative impairments do not affect the quality of workideas on future banking operations titled ‘Banking carried out.industry 2020’ encouraging our staff to visualisewhat the banking sector would be in 2020.78

Employees analysed by Category and Gender as at 31st December 2013 Male Female Total Male Female Participation % Participation %Corporate 15 4 19 79 21ManagementSenior Management 63 14 77 82 18Executive 100 36 136 74 26ManagementMiddle Management 383 154 537 71 29Junior Management 485 258 743 65 35Operational Staff 1,252 733 1,985 63 37Other Grades 36 155 191 19 81Total 2,334 1,354 3,688 63 37% of Employees of 63 37 100Sampath BankEmployees analysed by Gender and Geographical RegionProvince Male Female Total Male Female Participation % Participation %Central 140 88 228 61 39Uva 74 17 91 81 19Southern 179 88 267 67 33Sabaragamuwa 96 41 137 70 30North Central 81 17 98 83 17North Western 147 75 222 66 34Northern 89 39 128 70 30Eastern 137 22 159 86 14Western 654 584 1,238 53 47Departments 737 383 1,120 66 34Total 2,334 1,354 3,688 63 37New Recruits analysed by Geographical RegionProvince Number Male Female % 17Central 61 56 5 2 7 0 9Eastern 7 8 5 26 2 8Northern 34 16 3 7 27 2 10North Central 18 25 5 4 Annual Report 2013 Sampath Bank PLC 32 2 38North Western 30 14 25 117 52 100Sabaragamuwa 27 320Southern 37Uva 16Western 142Total 372 79

MANAGEMENTDISCUSSION &ANALYSISEmployees analysed by Type of Employment Contract and Gender Male Female Male Participation Female Participation %%Permanent 1,795 1,231 59 41EmploymentTrainees 523 106 83 17Probationers 11 15 42 58Fixed Term Contract 52 71 29Total 2,334 1,354 63 37 No of Employees Employees analysed by period of service 1,354 300 2,334 304 1,656 281 1,147 Male Above 21 years Female 16 -20 years 11 - 15 yearsEmployees analysed by Age 6 - 10 YearsAge Below 06 YearsAbove 5551 - 55 Number Percentage41- 50 0.1431 - 40 05 1.7021 - 30 63 11.66Below 21 430 22.15Total 817 2,341 63.48 32 0.87 3,688 100.00Development in their fields. The faculty consists of 150 resourceThe Bank has a comprehensive development persons maintaining a healthy ratio of 1 resourceplan which encompasses technical and soft skills person for every 25 employees of the Bank. Wetraining, leadership development, on the job training, maintain two Auditoriums and a Computer Lab atexperiential learning and counselling. This forms the the Head Office and facilities to conduct Regionalblue print for training and development activity in training in 13 locations. We regularly upgrade ourthe coming year and the achievement of outcomes is training facilities to create a conducive environmentassessed at regular intervals to monitor progress in for learning. Our efforts in developing and nurturingline with the plan. The Bank’s training faculty includes our staff have been recognised by the Institute ofinternal and external professionals who are experts Personnel Management which awarded Sampath Bank80

the Talent Management Award and the Training and initiated by senior managers who participated in theDevelopment Award at the National HR Conference Leadership Development Programme conducted by2013. the National University of Singapore in 2011. Owners of the best five projects will be selected based onAn Annual Training plan is designed based on the the performance to follow Harvard Business Schoolresults of the Training Need Analysis which includes Leadership courses. We also conducted a Leadershipcompetency assessments, customer expectations Development Programme for Branch Managersand developments in the Banking sector. This with CRISIL Ltd of India. We have also institutedexercise is carried out in collaboration with the separate Leadership Development programmes forHeads of Departments who are then provided with newly promoted Executives and Junior Executivesthe plans relevant to their Departments. We have to motivate and inspire them and enhance theirconducted 466 class room sessions with 106,894 leadership skills. A programme to monitor jobman hours of training and a total of 60,515 man rotation was implemented to ensure that there ishours of e-learning. There are 25 business projects at sufficient branch bench strength and also to developvarious stages of implementation which have been multi skilled professionals.Investment in Training and Professional Education 2013 2012 2011Investment In Professional Education (Rs Mn) 13.5 10.8 7.7Investment in Training (Rs Mn) 27.2 24.1 54.4Total investment in Training and Professional 40.7 34.9 62.1Education (Rs Mn)Total Training Hours 167,409 91,623 104,489Average Training Time per Employee (Hours) 45 26 32 More than167,000 Hrs of TrainingNew Recruitsanalysed byGeographical Region 61 Annual Report 2013 Sampath Bank PLC142 7 16 37 34 18 30 27Central Sabaragamuwa Staff training sessions in progressEastern SouthernNorthern UvaNorth Central WesternNorth Western 81

MANAGEMENTDISCUSSION &ANALYSISProductivity, Work Life Balance and Rewards RetentionEmployee productivity as measured by revenue Sampath Bank prides itself in its high retentionper employee has continued to increase over the rates which we believe are due to a combinationyears driven by higher levels of skill and efficient of factors that increase employee satisfactionprocesses as we gain more employee participation which include a framework of policies that promotein streamlining them. Profit per employee which career progression, personal development, diversity,was trending upward declined only due to the high meritocracy & recognition, a stimulating & ethicalimpairment loss incurred on the pawning portfolio in environment, high standards of professionalism,2013. We are confident that the team will continue to rewards and benefits, many of which have beendeliver on these bench marks not by compromising discussed above. We provide a number of benefitswork life balance but through higher participation to our permanent staff in addition to statutoryin streamlining, re-engineering and automating benefits which include pension plans, productivityprocesses to eliminate unproductive tasks and and profit related bonuses, staff loan schemes onimprove service standards. The Bank initiated several special interest rates to cater to a variety of needs,programmes to promote a sustainable work life comprehensive medical scheme, payment of fees forbalance for employees and commenced programmes professional education, reimbursement of trainingthat employees have expressed interest in such courses and examinations, fully furnished staffas yoga and sport activities play a ma jor role in quarters, travelling and accommodation allowancesbalancing worklife at Sampath Bank. An in-house for staff attached to outstation branches and holidaygymnasium provides our staff with an opportunity for bungalows.exercise in order to maintain physical well - being.Winners of the Annual Athletic Meet 2013 Winners of the Annual Quiz competition 2013 Employee Service Analysis Total % Period of Service 8 Above 20 years 300 8 Above 15 – 20 years 304 8 Above 10-15 years 281 31 Above 6 – 10 years 1,147 Below 6 years 1,656 45 3,688 10082

INFORMATION TECHNOLOGYShaping the Banking industry through IT innovationCustomer We launched the Sampath Mobile App this Mobile App DownloadsFocussed IT year enabling customers to do banking through their mobiles and tablets. It also 10,000+ has a number of useful features for non- customers as well. The App is available from Internet Banking the Apple Store and the Google Play store Payment Value and has passed the 10,000 download mark. Rs MnGrowth in Internet The volumes of transactions for ourBanking Volumes eRemittance and Sampath Vishwa have increased by 22.3% and 41.5% respectively during 2013 demonstrating the convenience 2010 873 to customers. 2011 1,217 2012 1,579 2013 1,861We continue to invest in Information Technology to Sampath Vishwa to help customers to manage Annual Report 2013 Sampath Bank PLCto provide the Bank a competitive edge as its all their routine banking transactions from theirimportance in customer interfaces and achieving computers. Further we were able to implementoperational efficiency increases. As trend setters in process improvements related to Sampath Vishwainformation technology we were unchallanged in to improve the efficiency of the administration2013. The Bank gained industry-wide recognition by which facilitated a superior customer service. Thesebecoming the Silver Medal winner for the Sampath enhancements enabled us to grow the volume andMobile App at the National Best Quality Software value of transactions over 40% and 50% respectively.Award 2013 in the Financial Category and Merit Awardwinner for the Sampath e-Reconciliation System at The e-Remittance system, introduced the conceptthe National Best Quality Software Award in the In- of online real time fund transfer for the first timeHouse category. Further our internet banking solution through a web service to the Sri Lankan Banking‘Sampath Vishwa’ was selected as the “Runners Up” Industry. This enhanced system connected ma jorat the National Project Management Awards 2013 in exchange house systems and enabled both accountthe Private Sector Category. holders and non account holders to obtain the use of online real time fund transfer facility. FurtherFocus on Customer Convenience process improvements were done to e-RemittanceThe Sampath Mobile App was launched in 2013 Administration system to lower the operationalallowing customers to do their banking through cost and to improve the efficiency. This facilitatedtheir mobiles and tablets with unique and versatile the growth of volumes and values of e-Remittancefeatures, free of charge. It can be downloaded from transactions over 22% and 31% respectively.the Apple App Store and the Google Play Store bycustomers and the general public as it has many The ATM switch was upgraded to includefeatures that are extremely useful. Sampath Bank several architectural advancements focusing onMobile App, which was launched recently, has performance improvements, service availability andalready passed the 10,000+ download mark, on par compliance with the EMV standard for ATM cardwith the other global competitive banking Apps. issuance, a global standard for a smart card chip- based payment application which also combats cardWe also enhanced features of Sampath Vishwa, frauds.our internet banking product, for retail customers.Card Systems and Treasury Systems were linked 83

MANAGEMENTDISCUSSION &ANALYSISAS A KEY STRATEGIC INITIATIVE, SAMPATH BANKEMBARKED ON A PROCESS RE-ENGINEERINGDRIVE TO IMPROVE THE PROCESS EFFICIENCIESAND TO REDUCE COSTS.Sampath Vishwa Corporate was improved by adding improvements to the hunting charges systemvarious online features to be used by corporate improved the fee collection of the Bank leading tocustomers such as adding EPF and ETF online improvements in profitability. We also integrated thepayments. Corporate customers are able to pay their Treasury system with other trading platforms suchEPF and ETF payments online real time 24 X 7 without as Bloomberg which streamlined the e-remittancevisiting the authorities which saves time and money. payment module. An in-house system was developedWe also implemented the Documentary Credit to implement and launch ‘Hire Purchase’ productamendments module enabling corporate customers during the year 2013 which was launched within a veryto amend their documentary credits online without short period since initiation and with a minimum cost.visiting the Bank. Improvements were made to the Risk Management systems as well which facilitate compliance with theDriving Operational Efficiency Basel II requirements which are more fully described inAs a key strategic initiative, Sampath Bank embarked the Risk Report on pages 160 to 187.on a process reengineering drive to improve theprocess efficiencies and to reduce costs. These Quality Assuranceinitiatives included automation of key reconciliation Quality assurance processes have been furtherprocesses, a form management system which enhanced by streamlining the development andfacilitates documentation, an automated Board testing process. The Software development processPaper Approval system, server virtualisation which has also been improved by implementing industryenhances process efficiencies and optimisation of standards and frameworks in order to achieveIT Equipment Life Cycle Management through the maximum efficiency into software development.Managed Services. We also effected improvements Automating and multi phase testing has beento enhance process efficiencies of the Documentary introduced to minimise bugs creeping into the finalCredits module which facilitated further operational product which has led to produce high qualityefficiencies in Trade Services. Availability of customer software products.delivery channels was improved by providing aspecially managed storage environment to lift Future Outlookthe benchmarks set for availability in the industry We will heavily use Near Field Communication (NFC)enabling them to receive up-to-date information technology in 2014 which is an evolving technologyeliminating a number of manual processes. and new innovative products and services willAdditionally, the functions of the Internal Audit be launched using the same. Sampath SystemsDepartment were successfully automated using a Development methodology which will focus on agileworld renowned software solution. methodologies to cater to future demand in servicing on time delivery within the cost budget.IT also implemented further automation of monthend processes which increased the accuracy and The Bank’s core banking system will be upgradedthe efficacy of support services departments. The to meet the requirement of the current businessautomation of the specific provisioning process environment. This will further strengthen theoptimises the utilisation of security values for the capabilities of the Bank to serve customers moreprovision calculation directly impacting the Bank’s efficiently and facilitate introduction of innovativeprofitability. At present no other local commercial products to the banking industry. We will continuebank has a similar system. Automation of the loan our focus on enhancing customer convenience whichinterest provisioning was another such project which includes incorporating new features to Sampathfacilitated a smoother month end process. Process Vishwa to enable eCommerce activities. Expanded84

DNS load balancing and enhancing delivery channel as per provisions of The Finance Business Act No Annual Report 2013 Sampath Bank PLCavailability are also on the radar to ensure that we 42 of 2011 from September 2013. As its acquisitionmaintain high service standards on our electronic of the license is recent, activities during 2013 werebanking channels for greater customer convenience. mainly focussed on growing the business of a Leasing company under its previous identity andPlanned IT projects for strengthening the regulatory fund mobilisation programs. Key business lines forand compliance aspects of the Bank include a system the company have been motor vehicle leasing, andallowing Audit, Risk, and Compliance, IT or Financial factoring. The key target market for the companyControl professionals to gain immediate insight into has been the SME sector as there are a number ofthe transactional data underlying their business finance requirements that are not addressed by theprocesses — moving from a reactive traditional Banks for this key growth sector of the economy.model, to an immediate, proactive approach, thatcontinuously protects the bottom line. Board of Directors Mr I W Senanayake (Chairman)We will continue to drive operational efficiency Mr S G Wijesinha (Deputy Chairman)through process improvements and planned projects Mr P M A Sirimanewhich include a Re-finance System which will Dr H S D Soysaautomate the process of maintaining the records Ms M A Karunaratneabout the refinances received, payments, provisions Mr W M P L De Alwisand other records that are maintained by the Mr M A AbeynaikeDevelopment Banking Division. A project to adopt Mr Aravinda Pereracloud technologies has also commenced. This will Mr Ranjith Samaranayakefacilitate the end-user computing needs as well as Green IT initiatives by reducing the operational costs Industry Overviewin terms of power utilisation. Other deposit taking Financial Institutions which account for 6.9% of the Financial sector assetsAs IT has been at the heart of key product roll outs had some relief during 2013 in comparison to theat the Bank, we will continue to focus on supporting previous year. The company’s business volumesnew product development and have already increased with the relaxation of import duty ratescommenced work implementing a software solution and the issuance of transferable motor vehicleto handle Factoring Services for its customers. permits as reflected in the asset growth of 54.6%.Once this product is implemented another avenue The decline in interest rates also helped increasewill be opened for the Bank to increase its income Net Interest Margins of the company as loans linkedgeneration. to AWPLR were re-priced during the year reducing the effective borrowing cost. However, the sectorPerformance of Subsidiaries was adversely impacted by declining gold prices as a number of players in the sector had significantThe subsidiaries contribute approximately 6% of exposure to pawning. This in turn resulted inthe Group profits and comprise support services or deterioration of the asset quality of the portfolio andcomplementary financial service companies. Their increased charges for impairment which contributedprogress during the year is summarised below for to sharp decreases in profit. Consequently the sectorour stakeholders. recorded a negative profit growth of 21.6%, whereas the company’s profits increased by 10.1%.SIYAPATHA FINANCE LTD - FORMERLY SAMPATHLEASING AND FACTORING LTD Regulation was strengthened as CBSL issued sixSiyapatha Finance Ltd is the successor to Sampath guidelines covering structural changes, writing offLeasing and Factoring Ltd, a strategic change in accommodations, debt instruments, liquid assets,identity following the successful application for a interest rates and corporate governance.license to operate as a registered finance companyPerformance - Siyapatha Finance Ltd 2013 2012 Change %Rs Mn 57.6Revenue 1,753 1,112 19.4Profit before Tax 301 252 10.5Profit after Tax 221 200 54.6Total Assets 5,811 8,986 85

MANAGEMENTDISCUSSION &ANALYSISThe company achieved a milestone in its history as it in our core lending products, leasing and factoring.obtained a licence to operate as a finance company Mobilising deposits is expected to increase bothin September 2013 and it is now geared to expand profitability and growth as our ability to competeits operations as permitted by the license with a effectively on price is enhanced. The businessparticular focus on deposit mobilisation. Fitch Ratings environment is expected to remain challenging dueLanka has affirmed the company’s rating as National to the high border tariffs and margin requirementsLong-Term rating at ‘A(lka)’ with a stable outlook on imports of motor vehicles in place. We will lookand the outstanding senior unsecured redeemable to further grow factoring as the expertise anddebentures at National Long-Term ‘A(lka)’ in March systems developed within the company add value2013. The branch network expanded with the to corporates. We also plan to obtain a listing onupgrading of windows to branches in Kuliyapitiya the Colombo Stock Exchange through an initialand Anuradhapura. Three pawning windows were public offering in the coming year as required by theopened in Kandy, Kalmunai and Kurunegala in Finance Business Act.anticipation of an aggressive drive on pawning onwhich we have now adopted a risk averse approach SAMPATH CENTRE LTDfollowing the decline in gold prices since April. Sampath Centre owns and manages the Head OfficeAsset growth was satisfactory at 54.6% which was building occupied by Sampath Bank and derivesincidentally higher than the industry growth rate of revenue from rental paid by the parent company.17.9% despite operating in an intensely competitivemarket. A key contributor was the growth of the Directorsfactoring portfolio as corporates were attracted Mr I W Senanayake (Chairman)by the debt or management facilities provided by Mr S G Wijesinhaus which enabled them to improve their working Mr S P Kannangaracapital management. There was little impact from Mr L R Jayakodydeclining gold prices as pawning was added as abusiness line only in February 2013 and the issues Turnover declined during the year due to the loss ofwith price volatility after which we curtailed growth rental income from 7th and 8th floors for nearly 6of this product. We have now limited exposure to months as there were no occupied tenants. Rentalsthe agriculture sector due to the inherent risks of were revised during the year. Extensive renovationsthe sector. Profitability improved from Rs 200 Mn in were carried out on several floors to improve the2012 to Rs 221 Mn in 2013 due to declining borrowing office interiors which enhanced the value of thecosts as loans linked to AWPLR were re-priced more landmark commercial building resulting in a fair valuefavourably during the year. gain of Rs 76 Mn. This has substantially increased the total assets of the company as at the year’s end.Future OutlookWe will focus on expanding our business lines to Future Outlookinclude innovative deposit products that cater to a We will focus on improving the energy efficiencywider clientele and also look to increase market share of the building in 2014 which relies on plant andPerformance 2013 - Rs Mn 2012 - Rs Mn Change % 194 196 (1.0) Sampath Centre Ltd 103 123 95 117 (16.3) Revenue (18.8) Profit before Tax 3,203 2,230 Profit after Tax 43.6 Total Assets86

machinery installed in an era where energy moderately but remained less than expected. Marketefficiency was at a lower benchmark. With the PERs have decreased marginally with the PER at end-country’s policy of greater pass through of energy December at 15.3x relative to 15.9x a year earlier.costs, it is imperative that we replace the air Foreign inflows to the bourse remained buoyantconditioning to a more energy efficient model which through 2013, despite the lacklustre performance ofis expected to cost over Rs 250 Mn. We will also the key indices.glaze the building to minimise the pass throughof heat requiring less energy to cool the interior The Debt market was relatively vibrant as there wasspaces. We also intend to install a new lighting a significant increase in the number of debenturessystem which is expected to generate significant issued due to the exemption from withholding taxsavings and the exterior of the building will be on interest earned on debentures. However, as manyenhanced with cladding in keeping with modern investors buy and hold to maturity, there is littlearchitecture of its surroundings. These projects will trading activity on debt.significantly increase the value of the building andgenerate savings in energy costs at the same time to Interest rates declined in 2012 for the secondour parent company. consecutive year and we expect prospects for equities in 2014 to be strong, particularly in theSC SECURITIES (PVT) LTD context that slower GDP growth will likely implySC Securities (Pvt) Ltd, is the stock broking arm of lower rates. Corporate earnings were moderate andthe Sampath Group and a fully owned Subsidiary of failed to spur higher levels of investor activity inSampath Bank. It is a debt and equity member firm equity trading.of the Colombo Stock Exchange, and is governedby the regulatory framework of the Securities SC Securities along with other stock brokingand Exchange Commission of Sri Lanka and the companies continued to be severely impacted byColombo Stock Exchange (CSE). SC Securities’ the lacklustre performance of the CSE in 2012 andteam of investment advisors are backed by a skilled 2013. The intense competition among the brokingresearch team and a competent back office. The houses continue unabated as institutional investorscompany has two branches in Kandy and Matara for continue to be wary of equity investments. We havethe convenience of its retail clients and to promote strengthened our retail operations and continue toinvesting in the share market in the regions. focus on group synergies by using the Sampath Bank network to expand our client base.DirectorsMr D J Gunaratne (Chairman) Future OutlookMr N H K Fernando (Executive Director / CEO) We expect investor interest on equities that areDr S Kelegama backed by strong fundamentals, as many of theseMr M N R Fernando are trading at attractive prices with potential for attractive returns. Activity in corporate debt is likelyIndustry Overview to increase with both retail and institutional investorsThe performance of equities listed on the Colombo showing interest and it is expected that secondaryStock Exchange was disappointing with both the All trading will increase over time. We expect theShare Price Index and the S&P 20 fluctuating within economic situation to improve in 2014 due to thea relatively narrow band mainly due to the negative policy measures implemented by the Governmentsentiment which weighed markets down through which in turn will have a positive impact on themost of 2013, Corporate earnings for the period up performance of the CSE.to September 2013 on a year on year basis enhancedPerformance 2013 - Rs Mn 2012 - Rs Mn Change % Annual Report 2013 Sampath Bank PLC 25 33 (24.2) SC Securities (Pvt) Ltd (23.5) (42) (34) (76.5) Revenue (30) (17) 20.3 Profit before Tax 362 301 Profit after Tax Total Assets 87

MANAGEMENTDISCUSSION &ANALYSISTHE COMPANY HAS GROWN ITS OPERATIONSCONSIDERABLY DURING THE YEAR WITHREVENUE AND PROFITABILITY INCREASING DUETO NEW BUSINESS LINES AND OPERATIONALEFFICIENCIES WHICH CONTROLLED EXPENSES.SAMPATH INFORMATION TECHNOLOGY clientele comprises the financial sector in Sri LankaSOLUTIONS LTD (SITS) including the parent company and other subsidiaries.SITS key business lines include business consulting,software application development, project Directorsmanagement, software quality assurance and testing, Mr L J K Hettiaratchi (Chairman)hardware provisioning, infrastructure maintenance Mr D J Gunaratne and document management solutions. Its main Mr M V Indrasoma Mr K M S P Herath PerformanceSampath Information Technology Solutions Ltd (SITS) 2013 - Rs Mn 2012 - Rs Mn Change % 54 88.9Revenue 102 4 3 525.0Profit before Tax 25 86 700.0Profit after Tax 24 53.5Total Assets 132New Head Office Building - SITS The company has grown its operations considerably during the year with revenue and profitability increasing due to new business lines and operational efficiencies which controlled expenses. The new initiatives included a secondment agreement with Infosys for supporting and implementation of their core banking product Finacle. We also developed a business partnership with Fiserv Inc, a leading IT solutions provider for the financial services sector to provide business development and implementation support in Sri Lanka. Managing outsourced IT functions for clients was also a growth area for the company which enabled us to grow beyond the financial services sector and improve profitability. Managing working capital was a key challenge due to growth of managed IT facilities88

Secondment Annual Report 2013 Sampath Bank PLC Agreement with Infosyswhich is capital intensive and this is evident in themovement of the current ratio. We have managedthis by optimising growth in line with availableresources.Future OutlookWe expect the managing of outsourced IT functionsto grow rapidly in the coming years which willpresent challenges to the company as it is relativelycapital intensive due to the need to invest inhardware. SITS is also reviewing other businessopportunities that will increase the source of incometo SITS within its mandate of providing IT solutionsto companies in Sri Lanka. We will also exploreoverseas business opportunities together with ourkey business partners to extend our geographicalfootprint which will also serve to facilitate retentionof talented and ambitious IT professionals whoprovide us with a key competitive edge. 89

BRANCHNETWORKCENTRAL PROVINCEBranch name Address Telephone No Fax No E-mail Branch 03 CodeDambulla No 622, Anuradhapura Road, Dambulla (066) 2283085/87 (066) 2283067 [email protected] Branches 90 Matale DistrictDigana No 42, Mahiyangana Road, Digana, (081) 2376765 (081) 2376765 [email protected] Ra jawella 85Galewela (066) 2287727 [email protected] No 31C, Kurunegala Road, Galewela (066) 2287725/6 (081) 2350571 [email protected] 190Hatton (051) 2225405 [email protected] 101Kandy - No 06, Panabokke Mawatha, Gampola (081) 2350564/5 80DaladaVeediya (081) 2232779 [email protected] No 173, Dimbula Road, Hatton (051) 2225403/5 7 13Kandy City Centre (081) 2205827 [email protected] No 19, Dalada Veediya, Kandy (081) 2232778 - 123 Branches Kandy DistrictKandy - Metro 2233838 (081) 2200098 [email protected] (081) 2499123 [email protected] Shop No L 1-6 Level One, Kandy City Centre (081) 2205825/6 (081) 2421767 [email protected] Building, Dalada Veediya, Kandy (066) 2224094 [email protected] (081) 2376549 [email protected] No 29, Cross Street, Kandy (081) 2200096/8 (054) 2223920 [email protected] 100 Nuwara Eliya DistrictNuwara Eliya (052) 2222948 [email protected] No 187, Madawala Road, Katugastota (081) 2498932/4 (081) 2384054 [email protected] 0332Pussellawa (081) 2478036 [email protected] No 232, Digana Road, Kundasale (081) 2421763/4 (081) 2577396 [email protected] 133Rikillagaskada (081) 2365023 [email protected] 25 BranchesWattegama No 184 - 186, Trincomalee Street, Matale (066) 2223861/2 (081) 2470600 [email protected] 184 195 No 54A, Madawala Road, Menikhinna (081) 2376547/8 84 51 No 92, Gampola Road, Nawalapitiya (054) 2223277/700 152 150 No 01, Lawson Street, Nuwara Eliya (052) 2222946/7 163 105 No 676 A, Peradeniya Road, Kandy (081) 2387876/7 No 551, Nuwara Eliya Road, Pusselllawa (081) 2478034/5 No 246, Colombo Road, Pilimatalawa (081) 2577341, 336 No 120, Kandy Road, Rikillagaskada (081) 2365021/2 No 134/A/1, Kandy Road, Wattegama (081) 2476876/7EASTERN PROVINCEBranch name Address Telephone No Fax No E-mail Branch Matale District CodeAkkaraipattu No 61, Sulaiman Shopping Complex, Main (067) 2279197/8 (067) 2279199 [email protected] 04 Street, Akkaraipattu 111Ampara (063) 2223840/1 (063) 2223444 [email protected] BranchesBatticaloa No 9, D S Senanayake Road, Ampara (065) 2227581/2 (065) 2227583 [email protected] 62Batticaloa 02 No 32, Thamaraikeny Road, Batticaloa (065) 2228240/1 (065) 2228242 [email protected] 107 BatticaloaChenkalady No 395, Trinco Road, Batticaloa [email protected] 139 District (065) 2241348/9 (065) 2241350 121Dehiattakandiya Main Road, Chenkalady [email protected] 06Kalmunai (027) 2250418/9 (027) 2250420 [email protected] 167Kaluwanchikudy No F 79, New Town, Dehiattakandiya (067) 2220448/9 (067) 2222020 [email protected] 112 BranchesKantale No 18, Police Station Road, Kalmunai (065) 2251177, (065) 2250208 [email protected] 125Kattankudy 2250807 (026) 2234492 [email protected] 172 07Kinniya Hospital Road, Kaluwanchikudy (026) 2234490/1 (065) 2247932 [email protected] 115Muttur (065) 2247930/2 (026) 2236350 [email protected] 177 BranchesNinthavur No 70/1, Agrabodhi Road, Kantale (026) 2238183 [email protected] 208 Ampara DistrictOddamavady No 57,59, Main Street, Kattankudy 03 (026) 2236348/9 (067) 2251390 [email protected] 185 No 106, 108 ,110 Main Road [Right Side], (065) 2258211 124Pottuvil Kinniya 03 (026) 2238181/2 [email protected] No 67, Main Street, Muttur (067) 2251388/9 (063) 2248196 [email protected] 130Trincomalee No 45/4A, Main Street, Ninthavur (065) 2257372, [email protected] 126 Colombo Road, Mavadichenai, 2258210 66 Oddamavady Cassim Moulavi Building, Main Street, (063) 2248190/4 Pottuvil Main Street, Sainthamaruthu - 16 (067) 2225310/320 (067) 2225330 No 262, Central Road, Trincomalee (026) 2225387/9 (026) 2225389NORTHERN PROVINCE 08Jaffna District BranchesBranch name Address Telephone No Fax No E-mail Branch Code 01 Kilinochchi DistrictChankanai Main Street, Chankanai (021) 2250072/3 (021) 2250072 [email protected] 164 Branch Mullathivu DistrictChavakachcheri Kandy Road, Chavakachcheri (021) 2270091/2 (021) 2270093 [email protected] 169Chunnakam No 160, K K S Road, Chunnakam (021) 2240721/2 (021) 2240723 [email protected] 128 01 01 02Branch No 56/16, Link Road, Off Stanley Road, Branch BranchesJaffna Jaffna (021) 2221025/6 (021) 2221027 [email protected] 120 Vavuniya District Suruvil Road, KaytsKayts Unit 1-4, Antonipillai Building, Kilinochchi (021) 3215432/4 (021) 3215428 [email protected] 171Kilinochchi No 103, Jaffna Road, Manipay (021) 2285340/1 (021) 2285342 [email protected] 148Manipay Thunnukai Road, Mallavi (021) 2255041/2 (021) 2255043 [email protected] 147Mallavi (021) 3734802/3 (021) 3734804 [email protected] 174Mannar No 28, Field Street, Ward No.06, Mannar (023) 2251320/1 (023) 2251322 [email protected] 119 Mannar District90

NORTHERN PROVINCE CONTD.Branch name Address Telephone No Fax No E-mail Branch CodeNelliady No. 169, Jaffna Road, Nelliady (021) 2262474, (021) 2264951 [email protected] 2264950 129Thirunelveli Palaly Road, Thirunelveli North, Jaffna (021) 2224801/3 (021) 2224802 [email protected] No. 25, Station Road, Vavuniya (024) 2222959 (024) 4589500 [email protected] 186Vavuniya Super No:7A, Horowpatana Road, Vavuniya (024) 2226227/8 (024) 2226229 [email protected] 55 170NORTH CENTRAL PROVINCEBranch name Address Telephone No Fax No E-mail Branch (025) 2235028 CodeAnuradhapura No 38, Rex Building, Main Street, (025) 2235026/7 [email protected] 21 06Anuradhapura District Anuradhapura (025) 2226192Anuradhapura (025) 2226190/1 (027) 2257206 anuradhapura_newt.mgr@ 168New Town No 521/19, Maithripala Senanayake (027) 2257204/5 (027) 2245302 sampath.lk 154 Mawatha, New Town, Anuradhapura (027) 2245300/1 [email protected] 110 (027) 2225569 [email protected] No 113, New Town, Aralaganwila (027) 2225567/8 Branches 03Hingurakgoda (025) 2247069 No 88, D S Senanayake Veediya, (025) 2247087/70 (025) 2265268 Hingurakgoda (025) 2265266/7 (025) 2257334 (025) 2257332/3 (025) 2275072Kaduruwela No 626B, Dharmasiri Building, Main Street, (025) 2276836, [email protected] 38 Branches Kaduruwela 2275072 PolonnaruwaKahatagasdigiliya No 67, Anuradhapura Road, [email protected] 203 District KahatagasdigiliyaKekirawa No 56, Main Street, Kekirawa [email protected] 149Nochchiyagama [email protected] 138 No 62, Puttalam Road, NochchiyagamaThambuththegama [email protected] 48 No 255 C, Anuradhapura Road, ThambuttegamaNORTH WESTERN PROVINCEBranch name Address Telephone No Fax No E-mail Branch CodeAlawwa No 9, 9/1 Giriulla Road, Alawwa (037) 2279209, (037) 2279209 [email protected] 2279463 [email protected] 53Anamaduwa No 69, Galgamuwa Road, Anamaduwa (032) 2263042/3 (032) 2263044 [email protected] 08Chilaw No 64, Colombo Road, Chilaw (032) 2222677/8 (032) 2222777 [email protected] 143Dankotuwa No 63, Nattandiya Road, Dankotuwa (031) 2261361/2 (031) 2261360 [email protected] 108 BranchesGiriulla No 103/A, Negombo Road, Giriulla (037) 2289482 (037) 2289482 [email protected] 196 Puttalam DistrictHettipola Kurunegala Road, Hettipola (037) 2291082/3 (037) 2291084 [email protected] 95 [email protected] 187Kuliyapitiya No 259, Madampe Road, Kuliyapitiya (037) 2281860/1, (037) 2281861 [email protected] 11 2281866 [email protected] 23Kurunegala Super No 31, Negombo Road, Kurunegala (037) 2223509 [email protected] BranchesMadampe No 16, New Town, Medagama Road, (037) 2223500/2 [email protected] 6Maho MadampeMarawila No 112-114, Moragollagama Road, Maho (032) 2249222/444 (032) 2249555 [email protected] 189 No 87, Chilaw Road, Marawila [email protected] (037) 2275170/1 (037) 2275172 [email protected] 197 Kurunegala District (032) 2250861 [email protected] 194Mawathagama No 95, Kurunegala Road, Mawathagama (032) 2250862/3 [email protected] (037) 2296088 [email protected] 109 (037) 2296088/ [email protected] 2296288Narammala No 77 & 89 1/1, Kuliyapitiya Road, (037) 2248945/6 (037) 2248947 99 Narammala 132Nattandiya (032) 2250263/4 (032) 2250265 102Nikaweratiya No 149, Kuliyapitiya Road, Nattandiya (037) 2260918/9 (037) 2260920 166 156 No 136, Kurunegala Road, Nikaweratiya (037) 2246250, (037) 2245272 44 2245270 30Pannala No 100, Negombo Road, Pannala (032) 2266314 (032) 2266312/3Puttalam No 114 A, Kurunegala Road,PuttalamWariyapola (037) 2268707/8 (037) 2268144Wennappuwa Nawinna Office & Shopping Complex, Kalugamuwa Road, Wariyapola (031) 2256925/7 (031) 2256926 No 191/A, Colombo Road, WennappuwaSABARAGAMUWA PROVINCEBranch name Address Telephone No Fax No E-mail Branch 06 CodeBalangoda No 117, Barnes Ratwatta Mawatha, (045) 2288793/5 (045) 2288795 [email protected] Branches Annual Report 2013 Sampath Bank PLC Balangoda 97 Kegalla DistrictDeraniyagala No 63, Noori Road, Deraniyagala. (036) 2249500 (036) 2249500 [email protected] No 02, Ratnapura Road, Eheliyagoda (036) 2258031/2 (036) 2258031 [email protected] 49 06Embilipitiya No 62, Main Street, Embilipitiya (047) 2261203/4 (047) 2261205 [email protected] 20Kalawana (045) 2255793/4 (045) 2255795 [email protected] 43 BranchesKegalle No 54/B, 54/C, Manana, Kalawana 41 Ratnapura DistrictMawanella (035) 2230597/ 8 (035) 2230519 [email protected] No 142, 142A, Kandy Road, Kegalle (035) 2246963 [email protected] 64 (035) 2246961/2 (045) 2275922 [email protected] 160Rambukkana No 209, New Kandy Road, Mawanella (045) 2275920 - 2 103 No 77B, Main Street, Pelmadulla (035) 2265641, (035) 2266244 [email protected] New Pradeshiya Sabha Building, 2266466 188Ruwanwella Rambukkana (045) 2232261/2 (045) 2224361 [email protected] No 180 – 82, Main Street, Ratnapura (036) 2266971/2 (036) 2266973 [email protected] 33 No 4, Veyangoda Road, Ruwanwella (035) 2267981/2 (035) 2267983 [email protected] 201 No 95, Kandy Road, Warakapola 205 91

BRANCHNETWORKSOUTHERN PROVINCEBranch name Address Telephone No Fax No E-mail Branch 07 06Hambantota DistrictAhangama (091) 2282904 [email protected] CodeAkuressa No 71A, Matara Road, Ahangama (091) 2282902/3 (041) 2284652 [email protected] 182 09 BranchesAmbalangoda No 14/16, Pitabeddara Road, Akuressa (041) 2284650/1 (091) 2255573 [email protected] 179 BranchesAmbalantota No 118 A, New Road, Ambalangoda (091) 2255571/3 (047) 2225508 [email protected] 72 BranchesBaddegama No 138 D, Tissa Road, Ambalantota (047) 2225506 - 8 (091) 2293232 [email protected] 104Beliatta No 112, Diyawagura, Kumme, Baddegama (091) 2293230/1 (047) 2251553 [email protected] 118 Galle District Matara DistrictDeniyaya No 53/1, Dickwella Road, Beliatta (047) 2251551/2 (041) 2273255 [email protected] 180 (041) 2273225,Elpitiya No 28-30, Main Street, Deniyaya 2273255 (091) 2291963 [email protected] 14Galle Super (091) 2245645 [email protected] Bazaar No 10, Royal Building, Ambalangoda Road, (091) 2291961/2 (091) 2248584 [email protected] 204 Elpitiya 35Habaraduwa No 5, Wackwella Road, Galle (091) 2245646/7 (091) 2282774 [email protected] 159Kamburupitiya ‘Krishna Building ‘, No:69, Old Matara Road, (041) 2294703 [email protected] Pettigalawatte, Galle (091) 2248582/3 (091) 2248458 [email protected] 181Matara Super No 1270, ‘Lanerolle’ Super Centre, Matara (041) 2223268 [email protected] Bazaar Road, Habaraduwa (091) 2282772/3 (041) 2234057 [email protected] 206 No 48, Mulatiyana Road, Kamburupitiya 141Middeniya No 598F, Hirimbura Road, Karapitiya (041) 2294701/2 (047) 2248233 [email protected] 10 No 3, Hakmana Road, Matara (091) 2248456/7Morawaka No 37, New Tangalle Road, Kotuwegoda, (041) 2223260/1 (041) 2282312 [email protected] 153Neluwa Matara - [email protected] ‘Abeysinghe Building’, Walasmulla Road, (041) 2234055/6 (047) 2288157 [email protected] 158Tangalle Middeniya (047) 2241870 [email protected] ‘Ranaweera Building’, Akuressa, Deniyaya (047) 2248231/2 (047) 2237058 [email protected] 15 Road, MorawakaWeligama Dellawa Road, Main Street, Neluwa (041) 2282310/11 (041) 2254003 [email protected] 54 No 6719, Ambalantota Road, Sooriyawewa 157 No 61, Muhudu Mawatha, Tangalle (091) 3783010/11 116 (047) 2288155/6 No 25 – 27, Main Street, Tissamaharamaya (047) 2241865/6 28 (047) 2237056, No 253, Matara Road, Weligama 2237058 209 (041) 2253003, 2254002UVA PROVINCEBranch name Address Telephone No Fax No E-mail BranchBadulla [email protected] CodeBandarawela No 14, Dharmadutha Road, Badulla (055) 2225450/1 (055) 2225452 [email protected] 93Bibile (057) 2223722 [email protected] 46Buttala No 253, 255, Main Street, Bandarawela (057) 2223720/1 (055) 2265400 [email protected] 161 05Mahiyangana [email protected] No 31, Mahiyangana Road, Bibile (055) 2265398/9 (055) 2273537 [email protected] 145 BranchesPassara [email protected] Badulla DistrictWelimada ‘Madurapperuma Building’, Kataragama (055) 2273530/4 (055) 2258181 [email protected] 56Wellawaya Road, Buttala [email protected] 04 (055) 2277222 74 No 28, 29, New Town, Mahiyangana (055) 2258180 Branches (055) 2288313 146 Monaragala District No 75, Pothuwil Road, Monaragala (055) (057) 2244468 81 2277222/290/1 (055) 2274470 113 No 187/1, Badulla Road, Passara (055) 2288311/2 No 54, Nuwara Eliya Road, Welimada (057) 2244466/7 No 70/D, Kumaradasa Mawatha, Wellawaya (055) 2274445/419/ 470WESTERN PROVINCEBranch name Address Telephone No Fax No E-mail BranchAluthgama (034) 2290863 [email protected] CodeAthurugiriya No 405, Galle Road, Aluthgama (034) 2290861/2 79Attidiya (011) 2156080 [email protected] No 106, Borella Road, Athurugiriya (011) 2563612, 67Bambalapitiya 2156081 - [email protected] No 202, Main Road, Attidiya (036) 2222010 [email protected] 89Battaramulla No 64, Yatiyanthota Road, Avissawella (011) 2725668 (011) 2501829 [email protected] 22Boralesgamuwa No 1-01, Ma jestic City, Station Road, (038) 2293056 [email protected] Bambalapitiya, Colombo 04 (036) 2222011/2 (011) 2861807 [email protected] 11 No 61/A, Kalutara Road, Bandaragama (011) 2502686, (011) 2545248 [email protected] No 157, Main Street, Battaramulla 2501829 (011) 2686066 [email protected] 59Colombo Super No 192, Kesbewa Road, Boralesgamuwa (038) 2289898/9 61Dehiwala No 1022, Maradana Road, Borella, (011) 2861805/6 (011) 2434217 [email protected] 142Delgoda Colombo 08 (011) 2545245/6 (011) 2336115 [email protected] No 55, D.R.Wijewardena Mawatha, (011) 2691121- (011) 2738461 [email protected] 4 Colombo 10 3,2687222 (011) 2403385 [email protected] No 103, Dharmapala Mawatha, Colombo 07 (011) 2328569, (031) 2243423 [email protected] 1 2434431 No 155, Galle Road, Dehiwala (011) 2336112/3 175 (011) 2738481, No 351/1, New Kandy Road, Delgoda 2738422 17 No 69, Kurunegala Road, Divulapitiya (011) 2403383/4 (031) 2243431/13 202 19892

WESTERN PROVINCE CONTD.Branch name Address Telephone No Fax No E-mail Branch 25 [email protected] CodeEmbuldeniya No 282, Old Kottawa Road, Embuldeniya, (011) 2836410/1 (011) 2836412 Branches Nugegoda 114 Gampaha DistrictFort (011) 2447231/2, (011) 2421453 No 98, Chatham Street, Colombo 01 2327379, 2436889 [email protected] 12 57 Colombo DistrictGampaha (033) 2226640/1, (033) 2226642 No 8, Mangala Road, Gampaha 2222396 [email protected] 16 BranchesGampaha Super 033-2239771, 033-2239773Ganemulla No 150, Colombo Road, Gampaha 033-2239772 (011) 5336558 [email protected] 212 10Gangodawila (033) 2264630 (011) 2814149 [email protected] 78Gothatuwa New No 367/E, Kadawatha Road, Ganemulla [email protected] 135 BranchesTown No 374, High Level Road, Gangodawila, (011) 2814147/8 (011) 2411612 Kalutara DistrictGrandpass Nugegoda (011) 2472392Gregory’s Road No 55/4, Kotikawatta Road, Gothatuwa (011) 2411609/10 (011) 2681145 [email protected] 173Harbour View New Town (011) 2393017 [email protected] 127Hanwella No 64, Jethawana Road, Colombo 14 (011) 2472390/1 (036) 2254447 [email protected] 70Head Quarters No 106, Wijerama Mawatha, Colombo 07 (011) 2681144 (011) 5331485 [email protected] 58 No 256, Srimath Ramanathan Mawatha, [email protected] 137Hendala Colombo 15 (011) 2393017 (011) 2981644 [email protected] 29Homagama No 148/A, Pahala Hanwella, Hanwella (011) 2855985Horana (036) 2254445/6 (034) 2260377 [email protected] 96Ingiriya No 110, Sir James Peiris Mw, Colombo 02 (011) 4730305/7, (034) 2268588Ja-ela 2358358 (011) 2245895 [email protected] 69Kadawatha No 210, Hendala Road, Hendala, Wattala (011) 2933098, (011) 2921001 [email protected] 57Kalutara 2931021 (034) 2235602 [email protected] 140Kandana No 46, 1st Lane, Station Road, Homagama (011) 2855975/6 (011) 2229249 [email protected] 98Kaduwela No 114, Sri Somananda Mawatha, Horana (034) 2260345/6 (011) 2537541 [email protected] 60 No. 68D, Panadura Road, Ingiriya (034) 2268288/488Karagampitiya No 165, Realty Plaza, Negombo Road, Ja-ela (011) 2245896/7 011-2710492 [email protected] 50 No 174/3, Ragama Road, Kadawatha (011) 2921001/2/5Keselwatta No 314, Main Street, Kalutara South, (038) 2299550 [email protected] 76 Kalutara (034) 2235600/1Kiribathgoda No 72, Colombo Road, Kandana (011) 2910515 [email protected] 162Kiribathgoda No 510/1 & 510/2, Avissawella Road, (011) 2229218/9Super Kaduwela [email protected] 210Kirindiwela (011) 2537539/40Kirulapone No 182/A, Hill Street, Dehiwela [email protected] 151Kochchikade 011-2710462,Kohuwala No 41A, Galle Road, Keselwatta, Panadura 011-2710472 [email protected] 5 (038) 2299633,Kollupitiya No 259, Kandy Road, Dalugama, Kelaniya 2299566 (011) 2910457,Kotahena 2910514KottawaKottawa Laugfs No 139, Kandy Road, Kiribathgoda (011) 2910368/9 (011) 2910367 [email protected] 200Sun Up No 91, Gampaha Road, Kirindiwela (033) 2247150 (033) 2247150 [email protected] 83 No 136,138 & 140, High Level Road, (011) 2513828/9 (011) 2513830 Kirulapone (031) 2279647/8 (031) 2279522 [email protected] 117 No 163, Chilaw Road, Kochchikade (011) 2814480/455 (011) 2814480 No 81, S De S Jayasinghe Mawatha, [email protected] 165 Kohuwala (011) 2590682/3 (011) 2590684 Ground Floor, Platinum Residencies (011) 2384012 [email protected] 94 Building, No 01, Bagatale Road, (011) 2384010/1 (011)2782684 Colombo 03 (011) 2782684/6, [email protected] 134 No 165, George R De Silva Mw, Colombo 13 2782690 [email protected] 37 No 124/8, High Level Road, Kottawa [email protected] 52 No 364/10, High Level Road, Kottawa (011) 2783100 (011) 2783100 [email protected] 87Maharagama No 81, High Level Road, Maharagama (011) 2840950/1/2/3 (011) 2851352 [email protected] 13Maharagama No 272, High Level Road, Maharagama (011) 2842442 (011) 2842442 [email protected] 92Singer MegaMain Street No 110,114, Main Street, Colombo 11 (011) 2386732/3 (011) 2386734 [email protected] 42 Annual Report 2013 Sampath Bank PLCMakola No 94/3A, Makola South, Makola (011) 2964978/9 (011) 2964980 [email protected] 207Malabe No 895, Athurugiriya Road, Malabe (011) 2762222/3 (011) 2762224 [email protected] 39Maligawatte No 65, Maligawatte Road, Colombo 10 (011) 2672507/8 (011) 2672509 [email protected] 191 No 657, Kularathne Mawatha, MaradanaMaradana Road, Colombo 10 (011) 2678541/2 (011) 2678543 [email protected] 144 No 86/A, Mirigama Road,Marandagahamula Marandagahamula (031) 2243515/517 (031) 2243518 [email protected] 183 No 102/40, Salgas Junction, MattegodaMattegoda No 214 A, Aluthgama Road, Matugama (011) 2178444/5 (011) 2178446 [email protected] 176Matugama No 31/1, Negombo Road, Minuwangoda (034) 2247233/4 (034) 2247235 [email protected] 106Minuwangoda No 54, Giriulla Road, Mirigama (011) 2299131/2 (011) 2299133 [email protected] 65Mirigama No 38, Sri Premarathne (033) 2276901/3 (033) 2276903 [email protected] 86 Mawatha,MoratumullaMoratumulla No 653, Galle Road, Rawatawatta, (011) 2654040/075 (011) 2654048 [email protected] 155 MoratuwaMoratuwa No 294, Galle Road, Mount Lavinia (011) 2644737/8 (011) 2644739 [email protected] 31 No 811, Aluthmawatha Road, Colombo 15Mount Lavinia No 193, Kirula Road, Narahenpita, (011) 2719581/7 (011) 2719582 [email protected] 199Mutwal Colombo 05 (011) 2540575/6 (011) 2540577 [email protected] 193 No 143, Nawala Road, NugegodaNarahenpita No 46/38, Nawam Mawatha, Colombo 02 (011) 2552820/1 (011) 2552822 [email protected] 40 No 293, Main Street, NegomboNawala (011) 2812331/2 (011) 2812333 [email protected] 82Nawam Mawatha (011) 2305025/7 (011) 2305028 [email protected] 9Negombo (031) 2224345 -7 (031) 2224347 [email protected] 24 93

BRANCHNETWORKWESTERN PROVINCE CONTD.Branch name Address Telephone No Fax No E-mail Branch [email protected] CodeNegombo 02 No 203D, Telwatte Junction, Colombo Road, (031) 2221930/1 (031) 2227282 Negombo 88Nittambuwa ‘Sri Ramya Building’, Kandy Road, (033) 2295905/6 (033) 2295907 Nittambuwa [email protected] 71Nugegoda No 79 A, Stanley Thillekeratne Mw, (011) 2856907 - 9, (011) 2856908 Nugegoda 2816288 [email protected] 3Old Moor Street (011) 2452490/2, (011) 2424074Padukka No 371, Old Moor Street, Colombo 12 2424075 (011) 2757733 [email protected] 27Panadura Super (038) 2235101Panadura - No 15, Horana Road, Padukka (011) 2757731/2 (038) 2244457 [email protected] 192Wekada [email protected] 26Pelawatte No 373, Galle Road, Panadura (038) 2235100, (011) 2786118Peliyagoda No 111B & 111C, Horana Road, Wekada, (038) 2244545, (011) 2940156 [email protected] 47 Panadura 2244534Pettah No 452, Pannipitiya Road, Pelawatta, (011) 2432303 [email protected] 63Piliyandala Battaramulla (011) 2787209, (011) 2614664Pitakotte 2786119 (011) 2874574 [email protected] 136Platinum Plus No 304, Negombo Road, Peliyagoda (011) 2695196Ragama (011) 2940279, (011) 2960659 [email protected] 2Ra jagiriya No 999, People’s Park, Bodhira ja Mw, 2938797 (011) 2864988Ratmalana Colombo 11 (011) 2730819 [email protected] 19Talahena No 61, Moratuwa Road, Piliyandala (011) 2432324, 262, 011-2790459 [email protected] 91 2394596 [email protected] 131Thalawathugoda (011) 2796672Thimbirigasyaya (011) 2614664/65 (011) 2505003 [email protected] 73Veyangoda (033) 2296330Wadduwa No 463, Kotte Road, Pitakotte (011) 2874574/577 (038) 2284505 ra [email protected] 122 [email protected] 18Wattala No 18, Cambridge Place, Colombo 07 (011) 2695073/237 (011) 2931568Wellampitiya (011) 2533498 [email protected] 211Wellawatta Super No 26/05, 26/06, UDA Premises, Kadawatha (011) 2960659/629 (011) 2507609Yakkala Road, Ragama (033) 4674602 No 620, Kotte Road, Ra jagiriya (011) 2864922/944 No 261, Galle Road, Ratmalana (011) 2730820/1 No 557, Talangama North, Talangama 011-2790457, [email protected] 178 011-2790458 [email protected] 34 No 244/4, Pannipitiya Road, [email protected] 77 Thalawathugoda (011) 2796670/1 [email protected] 75 No 154, Havelock Road, Colombo 05 (011) 2505001/2 No 121, Negombo Road, Veyangoda (033) 2296330 [email protected] 8 No 555, Galle Road, Wadduwa [email protected] 45 No 280, 280/1, Negombo Road, Wattala (038) 2284960, [email protected] 36 2285132 [email protected] 68 (011) 2931569/70, 2941526/7 No 268, Kolonnawa Road, Wellampitiya (011) 2533498 No 591A, Galle Road, Colombo 06 (011) 2507607/8 No 88, Kandy Road, Yakkala (033) 2232670, 223423094

NOSTRO ACCOUNTSMCUAIRNRTEANINCEIDESIN SPECIFICCountry / Name of the Swift Code CCY Country / Name of the Swift Code CCYBank & Address AUD Bank & Address HYVEDEMM EUR ACU- SCBLHKHHAUSTRALIA DOLLAR UNICREDIT BANK AG - HKD MUNICH BCEYIN5MNATIONAL AUSTRALIA NATAAU33 CAD (HYPOVEREINSBANK) ACU-BANK - MELBOURNE Am Tucherpark 1 BCEYIN5M DOLLAR500, Bourke Street, CNY D-80538 Munich, SCBLINBBMelbourne, Victoria Germany ACU-3000, Australia DKK EURO EUR HONGKONGBANGLADESH EUR ACU- STANDARD CHARTERED DOLLARSTANDARD CHARTERED SCBLBDDX BANK (HONG KONG) LTDBANK – DHAKA 15/F, Standard Chartered EUR2, Dilkusha Commercial Tower, 388 Kwun Tong EURArea, Dhaka 1000, Road, Kwun TongBangladesh Kowloon, Hong Kong 95CANADA INDIABANK OF MONTREAL - BOFMCAT2 BANK OF CEYLON -TORONTO CHENNAICorrespondent Bank No 20/21, Casa Ma jorServices Road250, Yonge Street, 17th No 2, (Old No 11) Zeraldfloor, Toronto, Ontario, GardenM5B 2M8 Canada, Second Lane Egmore Chennai - 600CHINA 008 IndiaCITI BANK (CHINA) CO CITICNSX BANK OF CEYLON -LTD CHENNAISHANGHAI BRANCH, No 20/21, Casa Ma jor34F, Citigroup Tower RoadNo 33, Hua Yuan Shi Qiao No 2 (Old No 11), ZeraldRoad, GardenLu Jia Zui Finance and Second LaneTrade Area Egmore Chennai - 600Shanghai 200120, PRC 008 IndiaDENMARK STANDARD CHARTERED BANK - MUMBAIDANSKE BANK A/S – DABADKKK 90, Mahatma Gandhi Annual Report 2013 Sampath Bank PLCCOPENHAGEN Road,Holmens Kanal 2-12, Mumbai 400 001, IndiaDK-1092 Copenhagen K,Denmark ITALYGERMANY UNICREDIT SPA - MILANO Piazza Gae Aulenti 3DEUTSCHE BANK AG DEUTDEFF Tower B UNCRITMMTheodor-Heuss Allee 70 6th floor 20154 Milan60486, Frankfurt am ItalyMain, GermanyCOMMERZ BANK AG COBADEFF BANCA.POPOLARE SOC BAPPIT22Financial Institutions COOP VERONAKaiserplatz, 60261 2 Piazza Nogara, 37121Frankfurt am Main, Verona, ItalyGermany

NOSTRO ACCOUNTSMAINTAINEDIN SPECIFIC CURRENCIESCountry / Name of the Swift Code CCY Country / Name of the Swift Code CCYBank & Address BOTKJPJT JPY Bank & Address OCBCSGSG SGD SCBLJPJT JPY ESSESESS SEKJAPAN SMBCJPJT OVERSEA CHINESE UBSWCHZH80A CHF JPY BANKING CORP LTD BOMLAEAD AEDBANK OF TOKYO BKNZNZ22 65 Chulia Street, OCBC EBILAEAD AEDMITSUBISHI UFJ LTD – DNBANOKK NZD Centre, BCEYGB2L GBPTOKYO SCBLPKKX Singapore 049513, GBP7-1, Marunouchi FIRNZAJJ NOK Singapore USD2-Chome , Chiyoda -Ku, UOVBSGSG ACU-Tokyo 100-0005, Japan DOLLAR SWEDEN ZARSTANDARD CHARTERED SGD SKANDINAVISKABK – TOKYO ENSKILDA BANKEN AB21st Floor, Sanno Park (PUBL) - STOCKHOLMTower, Kungsträdgårdsgatan 8,2-11-1 Nagatacho, 10640 Stockholm,Chiyoda-ku, SwedenTokyo 100-6155, Japan SWITZERLANDSUMITOMO MITSUIBANKING CORPORATION UBS AG- ZURICHGlobal Institutional The Bank for Banks,Banking Deparment, P.O.BOX, CH-8098,1-2, Marunouchi Zürich,1-Chome, Chiyoda -Ku, SwitzerlandTokyo 100-0005, Japan UNITED ARAB EMIRATESNEW ZEALAND MASHREQ BANK PSC -BANK OF NEW ZEALAND- DUBAIWELLINGTON 3rd Floor MashreqbankBank Sector – Head Office, Omer BinInstitutional banking, Al Khattab Road, PO BoxLevel 5 Pier 1, Harbour 1250,Deira, Dubai,Quays, 60 Waterloo UAEQuayWellington, New Zealand Emirates NBD Bank PJSCNORWAY 6 th Floor, Head Office BuildingDNB BANK ASA- OSLO Baniyas Road , DeiraHead Office, Stranden PO Box 777, Dubai,0021, Oslo, Norway UAEPAKISTAN UNITED KINGDOMSTANDARD CHARTERED BANK OF CEYLON (UK)BANK - KARACHI LTDPO Box 5556, 11, 1 Devonshire Square,Chundrigar Road, London, EC2M 4WD, UKKarachi 74000, Pakistan BARCLAYS BANK PLC BARCGB22SOUTH AFRICA Barclays Corporate, London Service CentreFIRSTRAND BANK LTD PO Box 69961, 1 ChurchillP O BOX 786273, PlaceSandton 2146, South London, E14 1NP, UnitedAfrica KingdomSINGAPORE UNITED STATES OF AMERICAUNITED OVERSEAS DEUTSCHE BANK TRUST BKTRUS33BANK LTD COMPANY AMERICAS NY80 Raffles Place, 60, Wall Street, NewUOB Plaza York, NY, USASingapore 048624,Singapore96

Country / Name of the Swift Code CCYBank & Address USD USDCITI BANK NA CITIUS33 USD399, Park Avenue, NewYork, NY 10022, USA USD USDHSBC BANK USA NA MRMDUS33452, Fifth Avenue, NewYork, NY 10018, USAJP MORGAN CHASE BANK CHASUS33NA270, Park Avenue, NewYork,NY 10017-2014, USAMASHREQ BANK PSC MSHQUS3350, Broadway, 15 th floor,Suite 1500, New York, NY10004, USAWELLS FARGO BANK NA PNBPUS3NNYC375, Park Avenue, NY4080New York, NY 101152, USA Annual Report 2013 Sampath Bank PLC 97

CORRESPONDENTBCAONMKPSANANIEDSEXCHANGE 8 47 54 34 15 6 13 9 23 32 17 38 53 12 5 2 20 16 48 41 10 45 26 3946 7 25 18 51 11 40 28 24 3 27 14 19 42 52 36 31 50 49 35 4 37 21 30 29 49 22 1 44 33Country SWIFT Code Country SWIFT Code Country SWIFT Code ING Belgium SA/NV BBRUBEBB Deutsche Bank (China) DEUTCNSH1. Australia KBC Bank NV KREDBEBB Co Ltd HSBCCNSH 6. Brazil HSBC Bank (China) Co Ltd CHASCNSHAustralia and New Zealand ANZBAU2S Deutsche Bank SA DEUTBRSP JP Morgan Chase Bank SCBLCNSXBanking Group Ltd 7. Bulgaria (China) Co Ltd PNBPCNSH UnicreditBulbank AD UNCRBGSF Standard Chartered BankCitibank NA CITIAU2X 8. Canada (China) Ltd SOGECY2N Bank of Montreal BOFMCAT2 Wells Fargo Bank NAHongkong& Shanghai HSBCAU2S HSBC Bank Canada HKBCCATT 11. Cyprus COBACZPXBanking Corporation Ltd Royal Bank of Canada ROYCCAT2 SocieteGenerale Bank of Nova Scotia NOSCCATT Cyprus LtdJP Morgan Chase Bank NA CHASAU2X 9. Chile 12. Czech Republic Banco del Estado BECHCLRM Commerzbank AGNational Australia Bank NATAAU33 CITICLRSLtd de Chile Citibank NA BKCHCNBJ2. Austria 10. China CITICNSX Bank of China COBACNSXRaiffeisenlandesbank RWGAT2B Citibank (China) Co Ltd Commerzbank AGUnicredit Bank Austria AG BKAUATWW3. BahrainHSBC Bank Middle East Ltd BBMEBHBX Unicredit Bank Czech Republic AS4. Bangladesh BACXCZPPDhaka Bank Ltd DHBLBDDHStandard Chartered Bank SCBLBDDX 13. Denmark Danske Bank AS5. Belgium DnB NOR Bank ASA DABADKKK DNBADKKXCommerzbank AG COBABEBX98