Sampath Bank Annual Report 2014

99Stakeholder: EnvironmentLEADING BY EXAMPLE: OUR APPROACH As a leading business entity in the country, environmentalTO ENVIRONMENTAL STEWARDSHIP sustainability has always been predominantly featured GL©MSP©CDžMPRQ©RM©SLBCPQR?LB©A?JASJ?RC©?LB©?BBPCQQ©RFC©MANAGEMENT APPROACH impact on the environment resulting from the business.We are dedicated in preserving the naturalcomposition of air, water, energy and 0CE?PBJCQQ©MD©RFC©LCEJGEG@JC©GKN?AR©ML©RFC©CLTGPMLKCLR©biodiversity in order to make the earth a better caused by our own operations, we remain passionateplace to live. RM©BM©MSP©N?PR©DMP©RFC©@CLCdžR©MD©RFC©DSRSPC©ECLCP?RGMLQ© which would inherit the earth. With global resource2FC© ?LIQ©#AM.PMHCARQ©?PC©K?GLJW©DMASQCB©ML© depletion reaching critical levels, our conservationenvironmental conservation and protection. CDžMPRQ©J?SLAFCB©?APMQQ©RFC©AMSLRPW©QCCI©RM©PCNJCLGQF©RFC©Funding is extended only to those projects natural resources utilised as a consequence of greateror businesses that promote earth-friendly urbanisation and accelerated development. Hence, ourconcepts using modern technology and initiatives focus on a broad spectrum of environmentalsupport the principles of lean-resource themes that would serve the interest of the people of Sriconsumption while strictly complying with *?LI?©LMU©?LB©GL©RFC©DSRSPCall mandatory environment protectionregulations. A STRATEGIC APPROACH TO ENVIRONMENTAL MANAGEMENTWe are in accordance with Carbon Footprint STEP 1: IDENTIFICATION OF MATERIALcalculation for the second consecutive year ASPECTS AND BOUNDARIESand we became a carbon conscious Head-LjAC©GL© &?TGLE©GBCLRGdžCB©ACPR?GL©K?RCPG?J©?QNCARQ©?LB©RFCGP© QGELGdžA?LAC©MSP©CLTGPMLKCLR?J©NMJGAW©QNCJJQ©MSR© fundamental guidelines not only to help control and mitigate the environmental impact caused by our business, but also to address underlying environmental grievances. G4-DMA No Aspect Boundary Sustainability Sustainability 1GELGdžA?LAC©RM© 1GELGdžA?LACEnvironmental Sampath Bank Sampath Bank to Stakeholders1 Materials Sampath Bank2 Energy Sampath Bank *MU High3 Water Medium High4 Biodiversity Community High5 Emissions Community *MU High6 #ljSCLRQ©?LB©U?QRC Community Medium High7 .PMBSARQ©?LB©QCPTGACQ Customer Medium High8 Compliance Sampath Bank Medium *MU9 Transport Sampath Bank High10 Overall Sampath Bank *MU Medium11 Supplier environment assessment Suppliers High High12 Environment grievance mechanism Sampath Bank Medium Medium High Medium Medium Medium

100 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: EnvironmentSTEP 2: MATERIALITY ASSESSMENTSustainability Significance to Sampath Bank 8,10 2, 4, 5, 6 H M 9, 11, 12 *7 1,3 * MH H High Sustainability Significance to Stakeholders M Medium * *MUSTEP 3: SUBSCRIBING TO INTEGRATED Extending well beyond the obligatory considerations,#!-˔$0'#,\"*7© 31',#11©.0!2'!#1 our approach to manage environmental sustainability imparts a new paradigm in environmental consciousness.Having prioritized material environmental aspects As an integrated approach, our environmental stewardship model seeks to lessen the impact on thedirectly impacted by our activities, we use a range of environment through continuous engagement that triggers pre-emptive action.qualitative and quantitative benchmarks to help usmonitor and control our imprint on the environment.%GTCL©MSP©EM?J©RM©?AFGCTC©A?P@ML©AMLQAGMSQ©ACPRGdžA?RGML©for the entire branch network by 2017, we have steppedSN©CDžMPRQ©RM©OS?LRGDW©MSP©GKN?AR©ML©RFC©CLTGPMLKCLR©?R©all levels of the business. Achievements Strategic Focus Modular Focus Goal &C?B©-LjAC©@CGLE© .PMBSAR© %PCCL©*CLBGLE Obtain Carbon ACPRGdžCB©?Q©?©!?P@ML© 0CQNMLQG@GJGRW Conscious !MLQAGMSQ©-LjAC©GL© C.PMBSARQ Subscribing to !CPRGdžA?RGML©DMP©RFC© 2014 'LRCEP?RCB©#AM Carbon Footprint Bank by 2017 friendly Business Calculation .P?ARGACQ Eco Guidelines #LTGPMLKCLR?J©!10 *C?L©0CQMSPAC© Management 'LQNGPGLE©#KNJMWCCQ to embrace an Eco-friendly Mindset Community-based .PMEP?KKCQ

1011'6˔#!-©%3'\"#*',#1JRFMSEF©UC©?PC©LMR©@MSLB©@W©?LW©QNCAGdžA©CLTGPMLKCLR?J©regulations relevant to the Banking industry, voluntaryadherence to the six fundamental eco guidelines speltout by our environmental policy, make us strengthen toaddress and to minimise environmental grievances.1. Adopt lean resource consumption practices across Prof Sarath Kotagama our operations, to reduce the use of paper, energy and non-biodegradable material Department of Zoology, University of Colombo2. Ensure proper disposal of waste, to minimise harmful environmental impacts '©F?TC©?JU?WQ©EPC?RJW©?BKGPCB©RFC©AMKKGRKCLR© QFMUL©@W©1?KN?RF© ?LI©.*!©RMU?PBQ©CLTGPMLKCLR?J©3. Create awareness of protecting and conserving the concerns, despite having very little direct impact environment among employees, customers and PCQSJRGLE©DPMK©RFC© ?LIQ©MNCP?RGMLQ©'©F?TC©M@QCPTCB© other stakeholders a great willingness on the part of the Bank to ensure that its stakeholders including the families of4. Address critical environment related issues employees are also made aware of the importance through a tripartite involvement between the Bank, MD©CAMDPGCLBJW©NP?ARGACQ©'L©N?PRGASJ?P©'©PCA?JJ©RFC© employee and the community popular radio programme sponsored by the Bank under the theme \"A minute for the environment\", a5. Ensure compliance with environmental regulations highly informative documentary aimed at highlighting in all our business transactions the value of protecting the environment. Apart from RFGQ©'©?K©NCPQML?JJW©?U?PC©MD©RFC©LSKCPMSQ©CDžMPRQ©6. Facilitate green enterprises, through special launched by the Bank and nature protection club to incentives, grants, loans and guidance encourage its customers and employees to make the QFGNJ©RMU?PBQ©EPCCLCP©ASJRSPCSAMPATH BANK NATURE PROTECTIONCLUB 'L©?BBGRGML©RM©GKNJCKCLR?RGML©?LB©KMLGRMPGLE©CAM© NPMHCARQ©UGRFGL©RFC© ?LI©1,?.!©AMLRGLSCQ©RM©NJ?W©?© Project Statistics 2014 pivotal role in embedding the required green attitude ?KMLE©CKNJMWCCQ©-LEMGLE©CDžMPRQ©@W©1,?.!©RM©PC2MR?J©,M©MD©RPCC©NJ?LRGLE©NPMHCARQ 27 calibrate the employee mindset cognisant of our2MR?J©QR?Dž©GLTMJTCKCLR© 324 integrated work practices are seen as the key to,M©MD©FMSPQ©QNCLR 2,399 nurturing a green attitude. 2FC©1?KN?RF© ?LI©,?RSPC© MATERIAL ASPECT: MATERIAL .PMRCARGML©!JS@©1,?.!© Product and Services Responsibility is a voluntary entity that comprises members drawn %©©#,©©©©©©©©$1© from various disciplinesUGRFGL©RFC© ?LI©0CLJCARGLE©RFC©QWK@MJGA©PCJ?RGMLQFGN© We are aware that the impact on the environment@CRUCCL©K?L©?LB©L?RSPC©RFC©1,?.!©@?LLCP©GQ© resulting from our operations is decidedly limited,?NNPMNPG?RCJW©RFCKCB©Œ*MTC©*GDC©*MTC©,?RSPC© CGLE©?L© particularly given the nature of our business as aMDžQFMMR©MD©MSP©GLRCEP?RCB©?NNPM?AF©RFC©1,?.!Q©NPGK?PW© commercial Bank. However, environmental sustainabilityobjective is to support environmental sustainability in remains an important part of the product responsibilitythe longer term, while adhering to the above guidelines framework associated with our core business. Toto outline its role in promoting an eco-friendly business further demonstrate our commitment to this cause, wepractices. have developed a number of structured green lending schemes that have been instrumental in formulatingSAMPATH BANK PLC ECO COMPETITION: eco-friendly business propositions at concessionary©A?KN?GEL©GLGRG?RCB©@W©1,?.!©RM©APC?RC© rates. Moreover, in the recent past we have made agreater awareness among employees, on the QGX?@JC©GLTCQRKCLR©GL©BCTCJMNGLE©RFC©,ML!MLTCLRGML?J©importance of green concepts. By motivating 0CLCU?@JC©#LCPEW©,!0#©QCARMP©team members to conduct outstanding greenactivities, the eco-competition was designed tocompel a greener behavioural attitude among1?KN?RF© ?LI©.*!©CKNJMWCCQ

102 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: EnvironmentMini-hydro power projects Number of Projects Installed Capacity Loan AmountSolar power (MW) (Rs Mn)Total 7 12.55 1,669.00 17 0.09 18.15 24 12.64 1,687.15#˔©','2'2'4#1©˔©)#7©1712#+© GLGRG?RGTCQ©RFCQC©CDžMPRQ©?GK©RM©GLQRGE?RC©?L©CLTGPMLKCLR?J©DEVELOPMENT INITIATIVES THAT WOULD consciousness among our customers which help themHELP TRANSITION TOWARDS PAPERLESS determine their liability and responsibility towards theSOCIETY environment. As such our e-initiatives and paperless communication channels seek to transition customersWithin the framework of our core business we also aim towards more eco-friendly practices and allow them to account for their actions.to trigger solutions that would produce a broader changeperspective. Viewed as part of our product responsibilityOPERATIONAL LEVEL CHANGES THAT PROMOTE THE PAPERLESS CONCEPTArea of focus Initiative DescriptionDelivery Sampath Mobile Enables any person irrespective of them being customers to send money instantlychannels Cash to any person having any brand of mobile or CDMA phone with any service NPMTGBCP©2FGQ©NPMTGBCQ©?©AMQR©CDžCARGTC©?LB©D?QRCP©?JRCPL?RGTC©RM©RFC©RP?BGRGML?J© postal and money orders, revitalising the inland money transfer system across the country 'LRCPLCR© ?LIGLE Enhanced to provide additional features View inward cheques .?WKCLR©RCKNJ?RCQ #L?@JCB©GLTCQRKCLRQ©GL©džVCB©GLAMKC©QCASPGRGCQ View entire Banking portfolio Open savings and term deposit accounts 'LGRG?RC©KM@GJC©A?QF©RP?LQ?ARGMLQ Mobile Banking L©C ?LIGLE©?NNJGA?RGML©U?Q©BCQGELCB©DMP©RFC©LBPMGB©?LB©'-1©-NCP?RGLE©© Application systems Enhanced SMS $C?RSPCQ©CLF?LACB©RM©D?AGJGR?RC©LMRGdžA?RGMLQ©MD©?JJ©RP?LQ?ARGMLQ©TG?©1+1©K?IGLE© Alerts Sampath the only Bank to provide a comprehensive service Enhancements to #LF?LACB©RM©CL?@JC©QS@KGQQGML©MD©#KNJMWCCQ©.PMTGBCLR©$SLB©?LB©#KNJMWCC© Corporate Clients Trust Fund remittances online via e-Bank solution providing a single portal for Module multiple functions e- Statement / A new trilingual “e- mail indemnity” has been implemented to cover all e- Advice AMKKSLGA?RGMLQ©@W©RFC© ?LI©TG?©CK?GJ©'LRPMBSACB©UGRF©RFC©M@HCARGTC©MD© minimising the volume of paper, used for the purpose in addition to reducing the cost incurred on postage and stationary Sampath Employee This is a communication mechanism to send messages using the Short Message ,MRGdžA?RGML©1WQRCK© 1WQRCK©1+1©TG?©KM@GJC©RCJCNFMLC©LCRUMPI©DPMK©RFC©K?L?ECKCLR©RM©CKNJMWCCQ© 1#,1 on important matters / emergency situations which require urgent attention.

103Area of focus Initiative DescriptionOperations SRMK?RGML©MD©@?AIMLjAC©DSLARGMLQ©MD©@P?LAFCQ©UFGAF©GLTMJTC©PCAMLAGJG?RGML© C0CAMLAGJG?RGML© and monitoring of transactions. The system integrates routine audit functions,Governance system ACLRP?J©KMLGRMPGLE©?LB©PGQI©K?L?ECKCLR©?ARGTGRGCQ©RM©GKNPMTC©CLjAGCLAW©JCTCJQ©&0©QWQRCKQ across the Bank Automated covering approval An online system for approval of facilities which reduce consumption of paper system ?LB©GLAPC?QC©NPMBSARGTGRW©UGRF©RFC©PCNJ?ACKCLR©MD©RFC©K?LS?J©QWQRCK e-Circulars .J?RDMPK©DMP©BGQQCKGL?RGLE©AGPASJ?PQ©CJCARPMLGA?JJW©?LB©CL?@JGLE©PCRPGCT?J©ML© demand 0CEGQRCP©MD© An automated system for tracking Directors’ interests & related party \"GPCARMPQ©'LRCPCQRQ transactions System to deliver and maintain history of Board papers to Directors over secure e-Board papers AMLLCARGMLQ©RM©G.?BQ C*C?PLGLE© 'LDP?QRPSARSPC©NPMTGBCB©RM©&0©RM©D?AGJGR?RC©PMJJ©MSR©MD©C*C?PLGLE©DMP©QR?Dž©RP?GLGLE platform Electricity Consumption per Employee 0CAWAJGLE©MD©!$*©@SJ@Q©GL©N?PRLCPQFGN©UGRF©&?WJCWQ© NCP©LLSK©&C?B©-LjAC©© #JCARPMLGAQ©*GEFRGLE©.TR©*RB© Campaign on reduction of Energy Consumption 2,812 kWh ?R©RFC©&C?B©-LjAC©RFCKCB©Œ SPL©!?JMPGCQ,MR© Electricity” was initiated to commemorate Green 2MR?J©#JCARPGAGRW©!MLQSKNRGML©&- Day 2014, with the objective of inculcating a habit of using the stairs as an eco-friendly alternative to 3,120,771 kWh the use of elevators. 2P?GLGLE©NPMEP?KKC©RM©CBSA?RC©QR?Dž©ML©#LCPEW© %©©#,©©©©© Saving TipsMATERIAL ASPECT: ENERGY 'L©?BBGRGML©RM©PCBSAGLE©CJCARPGAGRW©SQ?EC©GL©MSP©@SQGLCQQ©MANAGEMENT in 2014, we also took steps to promote energy saving at household level by encouraging our employees to reduceGiven the nature of our business, electricity remains RFCGP©KMLRFJW©FMSQCFMJB©AMLQSKNRGML©MD©#JCARPGAGRW©SLGRQ©the primary source of energy needed for the day-to- ?Q©NCP©RFC©CJCARPGAGRW©@GJJ©2FC©@CQR©CLCPEW©Q?TGLE©RC?K©U?Q©©day operations. To minimise the number of electricity awarded cash prizes at the Green Awards Ceremony heldunits consumed during the course of our operations, by the Bank in 2014. This initiative saved more than 12,100we have always sought energy saving alternatives that household electricity units in 2014 which can be used towould control usage and help manage our impact on provide electricity for 200 rural houses.the environment. Cognisant of this goal, the followinginitiatives were introduced during the year: GREEN LENDING SCHEMES 'LQR?JJ?RGML©MD©CLCPEW©CLjAGCLR©*#\"©JGEFRGLE© We believe that doing everything possible to raise the QMJSRGMLQ©RM©PCNJ?AC©CVGQRGLE©!$*©JGEFRGLE©.F?QC©© eco consciousness of our customers will go a long was introduced in 2014 and would be extended to way in ensuring a greener tomorrow. With the motive the entire branch network by end 2015 of encouraging the use of renewable energy sources, we continue to pursue solutions that would elicit environmental change on a broader scale such as Solar .MUCP©5GLB©.MUCP©&WBPM©.MUCP©?LB© GM©%?Q

104 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder:s:EEnnvvirioronnmmeennt tThe knowledge that meaningful change can be realised ?PC©BCBGA?RCB©RM©NPCQCPTC©1PG©*?LI?Q©PGAF©@GM©BGTCPQGRW©MLJW©RFPMSEF©?©AMJJCARGTC©CDžMPR©F?Q©NPMKNRCB©SQ©RM© through our enormous contribution towards the followingencourage our employees, to also embrace eco-friendly initiatives.lifestyles choices. SNAKE CONSERVATION INITIATIVES WITH'L©RFGQ©PCE?PB©MSP©DMASQ©GQ©RM©PCQF?NC©RFC©@CF?TGMSP?J© THE COMMANDO REGIMENT OF THEattitudes of our employees who would trigger a vibrant SRI LANKA ARMYeco movement at a national level in the future.MATERIAL ASPECT: WATER MANAGEMENTThough our operations have no direct impact to or fromwater, we have put in place a mechanism that regularlyKMLGRMPQ©RFC©U?RCP©AMLQSKNRGML©?R©MSP©&C?B©-LjAC© At an exhibition%PCCL©#LCPEW©*M?L©1AFCKC©from Sampath Bank Water Consumption per Employee Lt Col E M G H J B Dehideniya NCP©LLSK©&C?B©-LjAC©© 05.©01.© 35 m3 !MKK?LB?LR©!MKK?LBM©0CEGKCLR©1NCAG?JGQCB©5?PD?PC© 2MR?J©5?RCP©!MLQSKNRGML©&- Training School, Vedithaltivue - Mannar. 39,154 m3 As a keen advocate of environmental conservation, '©?K©GLBCCB©TCPW©F?NNW©RM©LMRC©RF?R©1?KN?RF© ?LI©Meanwhile, we also conduct regular employee awareness .*!©F?Q©PC?BGJW©CK@P?ACB©RFC©L?RGML?J©NMJGAW©DMP©programmes in order to minimise water wastage across the preservation of natural resources in the country.the Bank. Among the many initiatives taken by the Bank in this regard, the snake conservation programme is a uniqueMATERIAL ASPECT: CONSERVATION OF endeavour that aims to preserve the endemic serpentBIO DIVERSITY population and protect the rich bio-diversity of Sri *?LI?©'©?K©TCPW©EP?RCDSJ©DMP©RFC©QSNNMPR©CVRCLBCB©1?KN?RF© ?LI©.*!©F?Q©LM©MNCP?RGML?J©QGRCQ©MULCB© @W©1?KN?RF© ?LI©.*!©GL©NPMTGBGLE©RFC©PCQMSPACQ©leased or managed in protected areas of bio diversity. RM©CL?@JC©RFC©1PG©*?LI?©PKW©RM©GBCLRGDW©P?PC©QL?IC©2FMSEF©RFCPC©?PC©LM©QGELGdžA?LR©BGPCAR©MP©GLBGPCAR©GKN?ARQ© species and carry out public awareness programmeson bio diversity through our Banking operations, we across the country.

105With the motive of contributing to conserve habitats, '1*,\"˔5'\"#©20##©.*,2',%©.0-(#!21©Sampath Bank in collaboration with the Commando ˒#!-©!-+.#2'2'-,˓0CEGKCLR©1NCAG?JGQCB©5?PD?PC©2P?GLGLE©1AFMMJ©+?LL?P©initiated a project for the conservation of snakes Tree planting 2013 2014including endangered serpents. Through this project 42 62RFC© ?LI©F?Q©EP?LRCB©džL?LAG?J©?QQGQR?LAC©RM©BCTCJMN©?© ,M©MD©?NNPMTCB©Modern Serpentarium at the Warfare Training School. projects 42 27Further the Bank facilitated a public awareness campaign 67 43in this regard. ,M©MD©RC?KQ©UFGAF© 5,600 3,486 completed the projects 1,239,960 3,088,365 %©©#,©©©© ,M©MD©JMA?RGMLQ Dr P B Terney Pradeep Kumara ,M©MD©RPCCQ Approved project %CLCP?J©+?L?ECP©©+?PGLC©#LTGPMLKCLR©.PMRCARGML©SRFMPGRW AMQR©0Q +GLGQRPW©MD©#LTGPMLKCLR©?LB©0CLCU?@JC©#LCPEW©© Former Head, Department of Oceanography and Marine During 2014, 62 tree planting projects were approved for %CMJMEW©3LGTCPQGRW©MD©0SFSL? GKNJCKCLR?RGML©?R©?©AMQR©MD©0Q©©2UCLRW©1CTCL© projects were completed by the end of the year with 1?KN?RF© ?LI©.*!Q©!MP?J©0CQRMP?RGML©NPMEP?KKC© 3,486 trees covering 43 locations island-wide. GQ©?©AMKKCLB?@JC©CDžMPR©RF?R©?GKQ©RM©NPCQCPTC©RFC© L?RSP?J©@C?SRW©MD©1PG©*?LI?Q©@C?AFCQ©©Q©?©JC?BGLE© CONTRIBUTION TO THE WILD LIFE NPGT?RC©@?LI©GL©RFC©AMSLRPW©'©DCCJ©1?KN?RF© ?LI© PROTECTION FUND .*!©F?Q©AJC?PJW©SLBCPQRMMB©RFC©GKNMPR?LAC©MD©RFGQ© precious resource. The steps taken by the Bank in this 5C©AMLRGLSCB©RM©AMLRPG@SRC©0Q©©ML©C?AF©BC@GR©A?PB© regard have helped to enhance the natural beauty of issued by the Bank to a fund in support of conservation our island and lead to greater economic development GLGRG?RGTCQ©MD©RFC©5GJB©*GDC©?LB©,?RSPC©.PMRCARGML©1MAGCRW© in the country. 5*,.1©UFGAF©MNCP?RCQ©UGRF©RFC©NPGKC©M@HCARGTC©MD© preventing the destruction and harmful commercialTHE CORAL RESTORATION PROJECT exploitation of species of wild animals and plants, and wherever desirable and possible, to preserve wildlife'LGRG?RCB©GL©©RFC©!MP?J©0CQRMP?RGML©NPMHCAR©GQ©?L© GLR?AR©GL©L?RSP?J©AMLBGRGMLQ©GL©1PG©*?LI?©2FC© ?LI©MLEMGLE©CDžMPR©@W©1?KN?RF© ?LI©.*!©RM©NPMRCAR©RFC© AMLRPG@SRCB©0Q©©BSPGLE©K?PGLC©CLTGPMLKCLR©QSPPMSLBGLE©RFC©.MJFCL?© C?AF©GL©RFC©+?R?P?©\"GQRPGAR©.MQGRGMLCB©N?P?JJCJ©RM©RFC©AM?QRJGLC© MATERIAL ASPECT: EMISSIONthe designated marine environment consists of a 4 !?JASJ?RGML©MD©!?P@ML©$MMRNPGLR©?R©&C?B©-LjACkilometre stretch of coral reef located approximately©KCRPCQ©MDžQFMPC©$MJJMUGLE©RFC©AMKNJCRGML©MD©RFC© We have obtained professional assistance of The Carbon.F?QC©©GL©©.F?QC©©MD©RFC©NPMHCAR©GQ©ASPPCLRJW©GL© !MLQSJR?LAW©!MKN?LW©!!!©DMP©RFC©A?JASJ?RGML©MD©RFC©progress and is being conducted with the assistance of !?P@ML©$MMRNPGLR©?R©RFC©&C?B©-LjAC©?Q©?L©GLGRG?J©QRCN©the Department of Oceanography and Marine Geology of towards reducing our Carbon Footprint. The Carbon3LGTCPQGRW©MD©0SFSL?©2FC©NPMHCAR©GQ©FC?BCB©@W©\"P©2SPLCW© Footprint calculation is a multi-functional tool that helps)SK?P?©$MPKCP©&C?B©\"CN?PRKCLR©MD©-AC?LMEP?NFW© ascertain the business impact on the environment and?LB©+?PGLC©%CMJMEW©3LGTCPQGRW©MD©0SFSL? highlight areas where critical action is deemed necessary. The measurement of the CO2 emission forms the point of origin for the Carbon Footprint Calculation, which is preceded by an extensive data gathering exercise that FCJNQ©RM©?QACPR?GL©RFC©CVRCLR©MD©RFC© ?LIQ©CLTGPMLKCLR?J©

106 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: EnvironmentGKNPGLR©2FC©džPQR©NF?QC©MD©RFGQ©SLBCPR?IGLE©U?Q© AMPNMP?RC©MLjAC©?R©1GP©(?KCQ©.CGPGQ©+?U?RF?©successfully completed on 30th April 2014, with the Colombo 02.establishment of the carbon footprint for the Bank’sGREEN HOUSE GAS EMISSION SUMMARY FOR SAMPATH BANK PLC’SHEAD OFFICE OPERATIONSScope 1 Direct emissions released from sources that are owned or controlled 571.22 tCO2e by the BankScope 2 tCO2eScope 3 'LBGPCAR©CKGQQGMLQ©?QQMAG?RCB©DPMK©RFC©ECLCP?RGML©MD©GKNMPRCB©CLCPEW© 1,060.22 tCO2e2-2*©%&%©#+'11'-,1 All other indirect emission sources that are not released from sources 1,121.75 tCO2e mentioned under scope 1 & 2 Emissions from Scope 1, 2 & 3 2,753.20 GHG Protocol Scope Emission Source Data Quality1AMNC©©Š© CompleteDirect emissions Onsite fuel - stand by generator Complete Fugitive emissions Complete1AMNC©©Š© Company owned vehicles Complete.SPAF?QCB©CLCPEW *C?QCB©TCFGAJCQ Complete1AMNC©©Š© Grid electricity'LBGPCAR©CKGQQGMLQ Complete Hired vehicles Complete %©©#,©©©©© Third-party deliveries Estimated Waste Complete Foreign travel Estimated Employee commutingRECOMMENDATIONS FOR THE FUTUREFollowing the results of this Green House Gas assessment, CCC recommends that Sampath Bank.*!©DMPKSJ?RCQ©?©QRPSARSPCB©!?P@ML©+?L?ECKCLR©0CQNMLQC©.J?L©!+0.©GL©MPBCP©RM©QCR©A?P@ML©KGRGE?RGML©R?PECRQ©?LB©CL?AR©AJC?P©QRP?RCEGCQ©RM©?AFGCTC©RFCQC©R?PECRQ©©UCJJAMLQRPSARCB©!+0.©UGJJ©@C©?©QMSPAC©MD©@MRF©GLRCPL?J©?LB©CVRCPL?J©T?JSC©ECLCP?RGML©?TCLSCQ©!!!©F?Q©GBCLRGdžCB©ACPR?GL©K?L?ECKCLR©NP?ARGACQ©RF?R©K?W©@C©QCR©GL©NJ?AC©GL©MPBCP©RM©A?PPW©MSR©?©QRPSARSPCB©!+0.2FC©džPQR©QRCN©GL©DMPKSJ?RGLE©?©!+0.©UMSJB©@C©RM©BCQGEL?RC©RFC©1,?.!©RM©A?PPW©MSR©RFC©LCACQQ?PW©?ARGTGRGCQ©2FGQ©QFMSJB©GBC?JJW©GLAJSBC©?©APMQQ©QCARGML©MD©1?KN?RF© ?LI©.*!Q©&C?B©-LjAC©CKNJMWCCQ©DPMK©1CLGMP©+?L?ECKCLR©-NCP?RGMLQ©+?PICRGLE©$GL?LAC©&0©CRA©$MJJMUGLE©RFGQ©?©AJC?P©CLTGPMLKCLR?J©KGQQGML©QFMSJB©@C©DMPK?JGQCB©RM©PCBSAC©RFC©A?P@ML©DMMRNPGLR©?R©RFC©&C?B©-LjAC

107Carbon Conscious Office certificate for year 2014 MATERIAL ASPECT: WASTE MANAGEMENTCARBON FOOT PRINT 6.34 Our proactive approach to managing our environmental 14.29 impact has prompted us to embrace lean resource % management concepts together with the fundamentals 0.12 MD©0©0CBSAC©0CSQC©0CAWAJC©RM©BCPGTC©NP?EK?RGA© 4.68 solutions to be applied in our day-to-day operations. 2FCQC©MLEMGLE©CDžMPRQ©F?TC©FCJNCB©SQ©GLGRG?RC©@CRRCP© 33.37 waste management practices and reduce our annual energy and water consumption levels.2.07 38.51 +C?LUFGJC©UC©NPMKMRC©CLjAGCLR©BGQNMQ?J©MD©CU?QRC©0.43 in order to minimise the burden on the environment,0.07 GL©N?PRLCPQFGN©UGRF©2FGLI©%PCCL©.TR©*GKGRCB©UFGAF©GQ© GBCLRGdžCB©?Q©?©NGMLCCP©TCLRSPC©RF?R©NPMTGBCQ©Q?DC©?LB©0.12 reliable electronic waste management solutions in Sri *?LI?Company Owned Vehicles Based on the nature of our business, incidents ofLeased Vehicles Electricity F?X?PBMSQ©U?QRC©?LB©QGELGdžA?LR©QNGJJQ©F?X?PBMSQ© QS@QR?LAC©RF?R©A?L©?DžCAR©FSK?L©FC?JRF©J?LB©U?RCP©Hired Vehicles Third-party deliveries @MBGCQ©EPMSLB©U?RCP©CRA©F?TC©LMR©@CCL©PCAMPBCBWaste Foreign Travel E-wasteEmployee Commuting CU?QRC©QCLR©DMP©PCAWAJGLE©)E 2014 - 630.2 (2013 - 1,351.4) 1?TGLE©0Q©N©? 2014 - 99,731.5 (2013 - 197,071.5)Electricity Distribution & transmission lossOnsite Fuel - Stand by GeneratorSavings Total Volume of Disposed to be included 2013 2014 Growth % resulting from recycling of.?NCP©U?QRC©QCLR©DMP©PCAWAJGLE©)E 59,624 70,407 18.08 N?NCP©U?QRC©Š© N©? ,M©MD©DSJJW©EPMUL©RPCCQ 1,013 1,197 18.16 Electricity kWh 238,496 281,628 18.08 *GRPCQ©MD©U?RCP 1,894,850 2,237,534 18.09 *GRPCQ©MD©MGJ 104,640 123,564 18.08 !S@GA©KCRPCQ©MD©J?LBdžJJ 18.54 178 211MATERIAL ASPECT: COMPLIANCE stewardship model embodies a new dimension of transparent reporting and examines the underlying %©#,©© concerns of all stakeholders linked to our business. As QSAF©UC©F?TC©LMR©@CCL©QS@HCARCB©RM©?LW©džLCQ©MP©JGRGE?RGML©Steered by the clarity of our environmental policy, we at throughout the history of the Bank.1?KN?RF© ?LI©.*!©K?IC©GR©MSP©KGQQGML©RM©AMKNJW©UGRF©all mandatory regulations pertaining to the environment. We also continued to encourage our customers toOur campaign to observe the highest international focus on safeguarding the environment by obtainingstandards have prompted us to embrace global best CLTGPMLKCLR?J©AJC?P?LAC©©#LTGPMLKCLR?J©.PMRCARGML©practices for environmental governance and reporting *GACLQC©#.*©GL©AMKNJG?LAC©UGRF©RFC©ESGBCJGLCQ©QRGNSJ?RCB©@?QCB©ML©RFC©%0'©ESGBCJGLCQ©3LBCPQAMPCB©@W©RFCQC© @W©RFC©!CLRP?J©#LTGPMLKCLR?J©SRFMPGRW©!#CVCKNJ?PW©CRFGAQ©1?KN?RF© ?LI©.*!Q©CLTGPMLKCLR?J©

108 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: EnvironmentMATERIAL ASPECT: TRANSPORT MATERIAL ASPECT: SUPPLIER ENVIRONMENTAL ASSESSMENT #,©©©©© Our business as a Bank and the customer-driven businessCarbon emission of Bank owned vehicles, leased vehicles, template that we subscribe to, means we do not directlyhired vehicles, foreign travels, third-party deliveries monitor the environmental impact of our suppliers.?LB©CKNJMWCC©AMKKSRGLE©?R©&C?B©-LjAC©U?Q©©tCO2e in the respective year. Since employee commuting MATERIAL ASPECT: ENVIRONMENTALF?Q©AMLRPG@SRCB©RM©?©QGELGdžA?LR©NCPACLR?EC©MD©RFC© GRIEVANCES MECHANISMS ?LIQ©!?P@ML©$MMR©.PGLR©&C?B©-LjAC©UC©CLAMSP?EC© ,M©CLTGPMLKCLR?J©EPGCT?LAC©UGRF©PCE?PB©RM©MSP©our employees to minimise the negative impact on operations was reported during the review period fromenvironment due to their transportation preferences. stakeholders associated with our business. However, as a responsible corporate citizen we voluntarily engageMATERIAL ASPECT: OVERALL in addressing the environmental grievances of the AMKKSLGRW©GL©1PG©*?LI? Category Total Expenditure - 2014 (Rs)Emissions treatment 300,000.PCTCLRGML©?LB© 3,088,365environmental managementcost Location 'BCLRGdžCB©#LTGPMLKCLR?J©%PGCT?LAC©GL© Engagement MechanismKantale Dam the Community Sampath Team - Kantale and students of Agbopura MahaAthagala Kantale Dam has been polluted due to Vidyalaya carried out a campaign to clean the KantaleSenasanaya, dumping of garbage Dam and placed permanent garbage bins to ensure theAmpara cleanliness of the place.B/Janananda Athagala Senasanaya faced numerous 2C?K©'2©1WQRCK©\"CTCJMNKCLR©KMSLRCB©?©1MJ?P©.?LCJ©?Q©?©MMV, BGLjASJRGCQ©BSC©RM©SL?T?GJ?@GJGRW©MD© environmental friendly mechanism and train people in theDiyathalawa electricity, especially due to the threats village to maintain the solar panel of wild animalsKolonkandaJungle 2FC©1AFMMJ©DMSLB©GR©BGLjASJR©RM©BGQNMQC© Team Welimada has constructed a compost processing UnitHermitage, their daily garbage without polluting the in the school premises and conducted several educationalKaluaggala surrounding area sessions on environment protection and conservation to students The jungle hermitage had been severely 2C?K©0?RFK?J?L?©GLTMJTCB©GL©NPMRCARGLE©RFGQ©L?RSP?J© ?DžCARCB©DPMK©QMGJ©CPMQGML©BSC©RM©FC?TW© archaeological site from soil erosion by building stone rains barricades. Further the team reconstructed the temple and \"bomaluwa\" and facilitated the supply of Water to the hermitage.

109Stakeholder: ShareholdersOur shareholders have always been a monumentalstrength to us and it is their continued patronage whichhas been the basis on which we have built our bankinglegacy. Thus the commitment to our shareholdersremains deeply entrenched in our value culture and isintegrated into the fundamental principles by whichUC©MNCP?RC©R©1?KN?RF© ?LI©.*!©QF?PCFMJBCP©T?JSC©creation means so much more than the mere obligatoryresponse, indeed it is a non-negotiable item on thebusiness agenda. Mr U H Upawansa Mr K K Wijayaweera (SQRGAC©MD©RFC©.C?AC©©JJ©'QJ?LB©©1?KN?RF© ?LI©'LGRG?J© (SQRGAC©MD©RFC©.C?AC©©JJ©'QJ?LB©©1?KN?RF© ?LI©'LGRG?J© Shareholder Shareholder 'L©©'©GLTCQRCB©?©QGKNJC©0Q©©?LB©@CA?KC© '©DCCJ©BCCNJW©FMLMSPCB©RM©@C©?KMLE©RFC©TCPW©džPQR© MLC©MD©RFC©GLGRG?J©QF?PCFMJBCPQ©MD©1?KN?RF© ?LI©.*!© 2,553 depositors who were a part of Sampath Bank $PMK©RFC©TCPW©@CEGLLGLE©'©U?Q©AMLdžBCLR©RF?R©KW© .*!Q©QR?PRSN©MNCP?RGML©GL©©$PMK©RFCQC©FSK@JC© GLTCQRKCLR©UMSJB©@C©UCJJ©PCU?PBCB©'©ILMU©'©K?BC©?© @CEGLLGLEQ©'©LMRC©RF?R©RFC© ?LI©F?Q©EPMUL©RM©GRQ© UGQC©BCAGQGML©UFCL©'©QCC©FMU©KW©FSK@JC©GLTCQRKCLR© present status with 17,688 shareholders and over 220 F?Q©EPMUL©MTCP©RFC©WC?PQ©'©?K©GLBCCB©TCPW©NPMSB© @P?LAFCQ©QNPC?B©?APMQQ©1PG©*?LI?©Q©'©JMMI©@?AI©LMU© to have been part of this process and feel deeply '©?K©CQNCAG?JJW©RF?LIDSJ©DMP©RFC© ?LIQ©QF?PCFMJBCP© thankful that the Bank has continued to produce participation policy which has given me the QSAACQQ©WC?P©?NJCP©WC?P©UFGJC©PCK?GLGLE©RPSC©RM©GRQ© opportunity to be a part of this remarkable journey. core values at all times Mr M ThiyagarajaHence, over the years, we have worked with a strongpurpose to create a suitable value-based management !©$!+©'©' ©+ ©!.©RRMPLCW©?R©*?U©,MR?PW©formulae that would be an adequate representation .S@JGA©!MKKGQQGMLCP©DMP©-?RFQ©2?V©©*CE?J©!MLQSJR?LR©©MD©MSP©QF?PCFMJBCP©CVNCAR?RGMLQ©'R©GQ©RFGQ©RCL?AGRW©RF?R© Sampath Bank Shareholderhas reinforced our performance and helped us deliver aAMLQGQRCLRJW©FGEF©BGTGBCLB©WC?P©?NJCP©WC?P©$SPRFCPKMPC©MSP© $PMK©FSK@JC©@CEGLLGLEQ©1?KN?RF© ?LI©.*!©F?Q©QF?PCQ©F?TC©?JQM©@CCL©?@JC©RM©NPMBSAC©QGELGdžA?LR©A?NGR?J© transformed into one of the most technologicallygains for our shareholders from time to time, yet another advanced banks in the country, which has broughttestament to the sustainability of our business model. rich rewards to all shareholders over the years. As ?©KGLMPGRW©QF?PCFMJBCP©'©?K©GLBCCB©TCPW©F?NNW©RM©JQM©PCDCP©RFC©
'LTCQRMP©0CJ?RGMLQ
©QCARGML©ML©N?ECQ©© see that the Bank has used its expertise very well into 175 for further details. APC?RGLE©AMLQGQRCLR©@CLCdžRQ©DMP©@MRF©J?PEC©?LB©QK?JJ© shareholders alike.Aside from this results-driven rationale, we remaincommitted to abide by all legal and mandatorystipulations that would safeguard shareholder interests,now and in the future.

BUSINESS REVIEW real value, sustainable growth

111Personal Banking: DepositsA widespread campaign Sampath DoubleSto stimulate organicCASA growth was OPERATIONAL GOALS AND OBJECTIVESlaunched with all FOR THE YEAR:branches being assigneda mandate to boost .PMKMRC©MPE?LGA©?LB©GLMPE?LGA©EPMURF©MD©!1CASA volumes. Focus on low cost short term deposits and reduce dependency on high-cost term depositsOPERATIONAL FOCUS FOR THE YEAR: KEY OPERATIONAL TARGETS FOR THEWith the impact of low market interest rates gradually YEAR:unfolding throughout best part of the year, the savingsand deposit market was viewed as a less attractive Grow CASA by 19%investment option, signalling a much lower industry-wide5\"0©TCP?EC©5CGEFRCB©\"CNMQGR©0?RC©?LB©5$\"0© PERFORMANCE REVIEW:TCP?EC©5CGEFRCB©$GVCB©\"CNMQGR©0?RC©?Q©?R©QR©December 2014. 2FC© ?LIQ©!1©NMPRDMJGM©QRMMB©?R©̎©UGRF©RFC©GLBSQRPW© ?TCP?EC©QCRRJGLE©?R©̎©DMP©RFC©WC?P©2FC© ?LIQ©5\"0©As the industry continued to feel the pinch, for its part, remained more or less the same as the previous year.1?KN?RF© ?LI©.*!©J?SLAFCB©?©AMLACPRCB©CDžMPR©RM©CVN?LB©RFC©!1©!SPPCLR©AAMSLRQ©?LB©1?TGLEQ©AAMSLRQ© Measures taken to realign the deposit mix were alsoTMJSKCQ©GL©©?Q©?©džPQR©QRCN©RMU?PBQ©MTCPAMKGLE© evidently a success, with the mainstream CASA mixthese challenges. A deliberate decision was also taken to QFGNJGLE©GL©D?TMSP©MD©LJCVG@JC©JMUAMQR©QFMPR©RCPK©BCNMQGRQ©ease away from costly term deposits in favour of smaller while the Bank continued to shed the quantum of highT?JSC©JMUAMQR©MDžCPGLEQ cost term deposits..?P?JJCJ©RM©RFCQC©CDžMPRQ©?©UGBCQNPC?B©A?KN?GEL©RM© 1WQRCK?RGA©CDžMPRQ©RM©DSJdžJ©K?PICR©LCCBQ©Q?U©RFC©J?SLAF©stimulate organic CASA growth was launched with all MD©RFC©DMJJMUGLE©LCU©MDžCPGLEbranches being assigned a mandate to boost CASAvolumes. While each branch was mandated to carry out “Sampath Samaja” -©©LCUJW©PCT?KNCB©MDžCPGLE©BCQGELCB©a minimum of three localised campaigns for the year, to cater to the needs of community-based institutionsthis highly focused endeavour was also designed to ?LB©?NNPMTCB©?QQMAG?RGMLQ©-DžCPGLE©TCPQ?RGJC©QMJSRGML©©inspire a more meaningful savings culture among the @?QCB©AMLTCLGCLAC©RFGQ©LCU©MDžCPGLE©GQ©BCCKCB©RM©QCPTC©masses. Engaging local schools, community, and business a long felt need in the market.NJ?RDMPKQ©GL©?©PC?JGQRGA©CDžMPR©RM©R?PECR©LCU©ASQRMKCPQ©©number of key promotional activities were carried out intandem with the 2014 volume drive.Meanwhile, alongside the use of the diverse rangeof delivery channels, the Bank continued to emulatethe ideals of relationship banking to qualify a uniquebanking experience that delivers unparalleled customerconvenience.

112 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformancePersonal Banking: DepositsTOTAL DEPOSITS VS 47 %CASA % 34 49 42 Rs Bn 35 350 28 21 300 14 41 7 0 250 35 200 196 150 244 302 342 100 50 0 2011 2012 2013 2014 Total Deposits CASAFUTURE OUTLOOK:For the immediate future, the focus would rely onsteadily expanding the low-cost CASA base across thecountry. Supported by localised promotional campaigns,the Bank would strive to generate organic growth ofmainstream CASA. Meanwhile, the heightening marketcompetition is likely to provoke a new level of customerQCPTGAC©UFGAF©UMSJB©?AR©?Q©?©ICW©K?PICR©BGDžCPCLRG?RMPFrom a longer term perspective, the proliferation of?©LCU©SP@?L©KGBBJC©GLAMKC©C?PLCP©GQ©JGICJW©RM©MDžCP©unprecedented growth opportunities for the personaldeposit business. Given that a major portion of thiscritical market would consist of a highly tech-savvyyouth generation, the key to tapping into this potentialwould depend on the ability to deliver highly innovativeASQRMKCP©ACLRPGA©NPMBSARQ©&GEFJW©ASQRMKGQCB©MDžCPGLEQ©these products would need to convey an unprecedentedlevel of convenience in cognisance of the evolving needsof the future customer. While a strong0©©\"©DSLARGML©UMSJB©@C©GKNCP?RGTC©GL©DSJdžJJGLE©RFCQC©aspirations, investments in the use big data analyticswould undoubtedly help develop customised solutionsto capture these emerging niche markets in the yearsahead.

113Personal Banking: Loans and AdvancesThe Bank also focused ICW©NPGMPGRW©DMP©1?KN?RF© ?LI©.*!©GL©©#K@?PIGLE©on deriving a healthy on a rigorous campaign to boost volumes of all lendinglending mix by striking a products, the Bank sought to arrest depleting margins.balance between short Securing the support of the island-wide branch network,term and long term CDžMPRQ©UCPC©QRCNNCB©SN©RM©NPMKMRC©RFC©CVGQRGLE©JCLBGLE©MDžCPGLEQ MDžCPGLEQ©RM©?JJ©ASQRMKCP©QCEKCLRQ©?APMQQ©RFC©AMSLRPW© Overseen by the newly set up personalised lending unit,OPERATIONAL FOCUS FOR THE YEAR: specialised managers were appointed to drive growth of QNCAGdžA©QCEKCLRQ!MKNPGQGLE©MTCP©̎©©MD©RFC© ?LIQ©RMR?J©?BT?LACQ©?LB©PCQNMLQG@JC©DMP©̎©MD©RFC©GLRCPCQR©GLAMKC©.CPQML?J© Meanwhile a re-pricing strategy was put in place to@?LIGLE©NJ?WQ©?©ICW©PMJC©GL©1?KN?RF© ?LI©.*!Q©MTCP?JJ© encourage customers to make use of the current low-business model. Following the rapid growth in the GLRCPCQR©@MPPMUGLE©CLTGPMLKCLR©'L©?BBGRGML©RFC© ?LI©island-wide network, branch banking now accounts for a also focused on deriving a healthy lending mix by strikingsizeable portion of the personal banking business, both in ?©@?J?LAC©@CRUCCL©QFMPR©RCPK©?LB©JMLE©RCPK©MDžCPGLEQ©terms of volumes and revenue. Consequently, the following promotional campaigns were initiated, in a bid to stimulate customer demand for credit and grow island-wide volumes;ADVANCES AND DEPOSITS -BRANCHES Rs Bn 300250 102 166200 135150 205100 164 24850 177 2990 2011 2012 2013 2014 Total Advances Total DepositsFrom an industry perspective, as low market interest 1NCAG?J©.CPQML?J©*M?L©1AFCKC©DMP©+CBGA?J©rates became the new norm in 2014, competition within Officers and Consultants From Sampath Bankthe industry continued to deepen as the year progressed.With private sector credit growth remaining stubbornly Moreover, as in the past, the Bank continued to pursueresistant, despite the low interest rates, widespread re- tie-ups with major housing development projects as partpricing was being deployed across the industry, as players MD©RFC©CDžMPR©BCJGTCP©?©T?JSC©?BBCB©QCPTGAC©RM©ASQRMKCPQ©scrambled to engage the limited market possibilities. Asa consequence, the loan book continued to be burdened Aside from the above volume driven initiatives, strictUGRF©BGKGLGQFGLE©,'+Q©RFPMSEFMSR©RFC©WC?P© management and control measures were exercised to ensure the pawning portfolio remains within acceptable!F?JJCLECB©@W©BCAJGLGLE©,'+Q©AMSLRCP?ARGLE©RFC©NMRCLRG?J© limits.negative connotations on the bottom line became a

114 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformancePersonal Banking: Loans and AdvancesThe commercial loan commercial lending, personal loans, leasing, hirebook experienced a purchase and housing loans.YoY growth of 24.8%indicative of the Commercial Lendingsuccessful mid-year \"CQNGRC©RFC©QRGDž©K?PICR©AMKNCRGRGML©RFC©AMKKCPAG?J©re-pricing strategy loan book experienced a YoY growth of 24.8% indicativeadopted by the Bank. of the successful mid-year re-pricing strategy adopted @W©RFC© ?LI©'L©RFC©GKKCBG?RC©?NJCPK?RF©RFC©RP?BGLE© *C?QGLE©&W@PGB©!?PLGT?J construction and hospitality sectors were seen takingOperational Goals and Objectives for the year: ?BT?LR?EC©MD©RFC©PCBSACB©JCLBGLE©P?RCQ©RM©DSJdžJ©RFCGP© capital expenditure and working capital requirements. On Grow the overall loan book the other hand, the new facilities granted at low interest Ensure a healthy mix between short term and long P?RCQ©AMLRGLSCB©RM©AMKNPMKGQC©,'+Q©RFPMSEFMSR©RFC© term lending products WC?P©UFGJC©QGKSJR?LCMSQJW©GKN?ARGLE©RFC©NPMdžR?@GJGRW© 0CBSAC©CVNMQSPC©RM©N?ULGLE MD©@P?LAF©LCRUMPI©0CK?PI?@JW©FMUCTCP©RFC©BCAJGLC©GL© RFC©NPMdžRQ©U?Q©J?PECJW©MDžQCR©@W©RFC©EPMURF©GL©TMJSKCQ©Performance Review: resulting from the aggressive promotional agenda outlined above. Overall Advances PortfolioThe total advances portfolio excluding pawning grew Leasing and Hire Purchaseby a robust 31.4%. This commendable increase was 2FC© ?LIQ©*C?QGLE©.MPRDMJGM©EPCU©@W©̎©7M7©due mainly to the successful campaign to promote supported by strong contributions from leasing facilities extended to individuals alongside a healthy growth GL©D?AGJGRGCQ©MDžCPCB©RM©RFC©1+#©QCARMP©'L©RFGQ©AMLRCVR© the Bank continued to play a leading role in extending support to SMEs engaged in agriculture, manufacturing, construction and services by providing necessary capital for acquiring vehicles, machinery and equipment. 5CJJ©PCACGTCB©@W©RFC©K?PICR©RFC©QNCAG?J©Œ*C?QGLE© Quarter” promotional campaign designed to promote FW@PGB©TCFGAJCQ©RM©RFC©1+#©QCARMP©?JQM©K?BC©?©QGELGdžA?LR© contribution towards overall volumes in 2014. Meanwhile, keen to capture the emerging market requirements, the following new product was launched during the year. Hire Purchase for Hybrid Vehicles © © *CB©@W©RFC©EPMUGLE©LSK@CP©MD©PCAMLBGRGMLCB© vehicles being imported to the country, the Bank introduced a new hire purchase MDžCPGLE©DMP©QCAMLBF?LB©TCFGAJCQ©GL©?©@GB© to penetrate this growing market. The overwhelming response for the facility seen in September and October months following its launch on 25th September 2013, translated well for the leasing portfolio, with the facility accounting for 4.7% over of the overall growth in the hire purchase portfolio in 2014.

115 Housing Loans9,014 FUTURE OUTLOOK:,MRUGRFQR?LBGLE©RFC©QRGDž©K?PICR©AMKNCRGRGML©RFC© ?LIQ©10,352&MSQGLE©*M?L©NMPRDMJGM©CVNCPGCLACB©?©7M7©EPMURF©MD©12,157 Given the rapid transformation seen in many of the̎©GL©©5FGJC©AMLRGLSGLE©UGRF©LJCVG@JC©R?GJMPK?BC©14,554personal banking parametres, better managementsolutions, the growing popularity of housing loans at ?LB©AMLRPMJ©MD©,'+Q©UMSJB©@C©RFC©ICW©RM©QSQR?GLGLE©RFC©?©NPMTGLAG?J©JCTCJ©GQ©GLBGA?RGTC©MD©RFC© ?LIQ©QSAACQQDSJ© personal banking function in the years ahead. Meanwhile,endeavour to nurture development at all levels of society. supporting the mainstream lending portfolio can only be done by adopting the fundamentals of the lean HOUSING LOANS management philosophy which would help trim costs and improve productivity, thereby sanctioning a more Rs Mn resourceful operational prototype for the future. 15,000 From a marketing perspective, a proactive customer- centric approach that envisions the needs of the 12,000 customer and provides a greater degree of solution based convenience, is deemed to be the catalyst of 9,000 EPMURF©GL©RFC©LCVR©©Š©©WC?P©RGKC©DP?KC©'L©RFGQ©AMLRCVR© RFC©DMASQ©UMSJB©QFGNJ©RMU?PBQ©BWL?KGA©GLLMT?RGML©JCB© 6,000 '2©NPMBSARQ©?LB©QCPTGAC©CLF?LACKCLRQ©N?AI?ECQ©RF?R© correspond to the evolving needs of the customer. 3,000 .PCQCLRGLE©RFCQC©BCJGTCP?@JCQ©RM©RFC©ASQRMKCP©UMSJB© A?JJ©SNML©DPCQF©CDžMPRQ©RM©QRPCLERFCL©RFC©Œ1?KN?RF© 0 brand image, accompanied by a widespread marketing 2011 2012 2013 2014 communication agenda that targets diverse market QCEKCLRQ©+C?LUFGJC©AMELGQ?LR©MD©RFC© ?LIQ©JMLECP© Pawning term business goals, managing the product mix wouldGiven the continuing instability of the world market’s also remain a critical success factor that would helpgold prices, the exposure to the pawning sector was realise future business targets.consciously reduced from 19.7% to 7.9% of the total?BT?LACQ©NMPRDMJGM©!MLQCOSCLRJW©RFC© ?LIQ©N?ULGLE©NMPRDMJGM©BCAJGLCB©@W©0Q©© L©AMKN?P?RGTC©RM©RFC©previous year. Moreover, in deciding the quantumof advances, the Bank exercised further caution byK?GLR?GLGLE©?L©*24©P?RGM©@CJMU©̎©&MUCTCP©RFC©! 1*©sanctioned Credit Guarantee Scheme introduced on 2nd(SJW©©NSQFCB©SN©RFC©*24©P?RGM©RM©̎©?JJMUGLE©pawning customers to access a higher value on theirEMJB©?PRGAJCQ©2FGQ©KMTC©ML©RFC©N?PR©MD©RFC©! 1*©GQ©UGBCJW©seen as a positive step towards improving the quality ofthe pawning product and minimising the risk to the BankPCQSJRGLE©DPMK©?BTCPQC©LJSARS?RGML©GL©RFC©UMPJB©K?PICR©prices.PAWNING ADVANCES VS ADVANCESOTHER THAN PAWNING Rs Bn 350300250 137 162200 218 285150100500 41 55 53 25 2011 2012 2013 2014 Pawning Advances Other than Advances - Gross Pawning - Gross

116 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformancePersonal Banking: CardsWe are the only A satisfied merchant, Mr Janaka Fonseka,local bank presently +\"©©4GQGML©!?PC©.TR©*RB©authorised to issue cardsunder the three major cards unit. Meanwhile, ensuring the security and integrityglobal franchises, namely of the card function continued to be a key priority for4'1©+?QRCP!?PB©?LB© RFC©SLGR©'L©RFGQ©PCE?PB©RFC© ?LI©AMLRGLSCB©UGRF©MLEMGLE©American Express. processes to validate the security interface of the card network at all times.OPERATIONAL FOCUS FOR THE YEAR: Meanwhile, value addition was an integral part of theSignifying 25 years in the card business, the year 2014 strategy to engage existing customers and encourageU?Q©?©KMKCLRMSQ©WC?P©DMP©1?KN?RF© ?LI©.*!Q©!?PBQ© more frequent use of the card. Spearheaded by thisSLGR©'LBCCB©?©HMSPLCW©MD©RP?LQDMPK?RGML©1?KN?RF© ?LI© objective, in 2014, the Bank featured a widespread.*!Q©A?PB©@SQGLCQQ©F?Q©@CCL©QS@HCAR©RM©?©RPCKCLBMSQ© promotional agenda that presented a range ofevolutionary process which has served to reinforce its iconic special deals on shopping, dining, entertainment andNPCQCLAC©GL©1PG©*?LI?Q©A?PBQ©QNFCPC©2FC©MLJW©JMA?J©@?LI© travel among others. Aimed at captioning the needscurrently authorised to issue cards under the three major of cardholders across the country, some of the keyEJM@?J©DP?LAFGQCQ©L?KCJW©4'1©+?QRCP!?PB©?LB©KCPGA?L© highlights are outlined below;#VNPCQQ©RFC©F?JJK?PI©MD©1?KN?RF© ?LIQ©JCE?AW©F?Q©?JU?WQ©been traditional values and innovative leadership. Promotion to Commemorate 25 Years of SampathCardsMore recently, driven by varying business dimensionsand cosmopolitan socio-economic paradigms, change To mark the 25th Anniversary and reward loyalF?Q©AMKC©?R©?©AMJMQQ?J©QNCCB©'K@G@GLE©QSAF©AF?LEC©F?Q© !?PBFMJBCPQ©RFC© ?LI©SLTCGJCB©CVAGRGLE©QC?QML?J©MDžCPQ©prompted the Bank to deploy a whole new approach to including special deals on clothing, groceries, travel,the card business. While staying true to the conventional dining, hotels, furniture & home appliances, Motorvalue proposition of being the responsible choice, 'LQSP?LAC©CRASampath branded cards strive to reshape industry@CLAFK?PIQ©GL©1PG©*?LI? Town-on-sale ExtravaganzaThus the focus for 2014, was to develop a multi- A unique concept launched to promote special dealsfunctional operational model that would ensure a MDžCPCB©@W©KCPAF?LR©N?PRLCPQ©GL©?©QCJCARCB©RMUL©MP©AGRW©sustainable platform for growth in the longer term. Held for the fourth time, the \"Town-on-sale\" campaignCognisant of this aim, the Bank pursued an aggressive tied up with 18 merchants in Galle in August 2014, tomerchant acquisition strategy, to broaden accessibility MDžCP©BC?JQ©ML©QSNCP©K?PICRQ©AJMRFGLE©BGLGLE©FMKC©@MRF©L?RGML?JJW©?LB©EJM@?JJW©.?P?JJCJ©RM©KMTCQ©R?ICL© appliances, books, hotels and eye wear products.to expand the merchant network, a series of merchantdevelopment measures saw the introduction of diverse U Shop V Drope-commerce and point-of-sale platforms that aim toBCJGTCP©?©KMPC©AMKNPCFCLQGTC©N?AI?EC©MDžCPGLE©RM©RFC© Seasonal campaigns launched to coincide with bothcustomer. RFC©©1GLF?JCQC©?LB©2?KGJ©,CU©7C?P©?LB©!FPGQRK?Q© QC?QML©MDžCPGLE©BGQAMSLRQ©@CRUCCL©̎©©̎©?R©#DžMPRQ©UCPC©?JQM©GLGRG?RCB©RM©EPMU©A?PB©TMJSKCQ©TGQcTGQ© selected merchantsa prudent credit strategy that would at the same timemake a consistent contribution to the bottom line of the

117 Furthermore, while usage statistics show that card usage in the industry increased by 4.8%, the usage of Sampath Cards on the other hand saw a phenomenal increase MD©̎©GL©©HSQRGDWGLE©RFC© ?LIQ©EPMURFDMASQCB© promotional campaign. Loyalty Programme Consequently, the credit card portfolio also shot up by 20.9% YoY. A continuing trend seen for the past few years,©@CQR©GL©AJ?QQ©JMW?JRW©NPMEP?KKC©MDžCPGLE©+GJCQ©?LB© this consistent growth in the portfolio is indicative of the0CU?PBQ©RM©!?PBFMJBCPQ©CL?@JGLE©RFCK©RM©PCBCCK©RFC© versatility and security associated with the Sampath Cards.+GJCQ©?LB©0CU?PBQ©?R©LSKCPMSQ©?GPJGLCQ©?©KSJRGRSBC©MD©high-end international hotels and a host of international Meanwhile, the following new developments wereretailers and service providers in addition to a number of GLRPMBSACB©BSPGLE©RFC©WC?P©?Q©N?PR©MD©RFC©MLEMGLE©CDžMPRQ©leading local retail partners. RM©?SEKCLR©RFC©OS?JGRW©MD©RFC©A?PB©MDžCPGLEOPERATIONAL GOALS AND OBJECTIVES © $SJJWLJCBECB©K.-1©.PMBSAR©FOR THE YEAR: Having launched the concept as a pilot undertaking Develop a versatile card brand in cognisance of GL©©RFC©DSJJWLJCBECB©MDžCPGLE©U?Q©PCJC?QCB© market trends to the market in January 2014. Forming a part Strive to benchmark industry standards for of the merchant development initiatives, the performance, technological superiority and service LCU©MDžCPGLE©F?Q©?BBCB©?©AMLQGBCP?@JC©@MMQR©GL© quality enlisting SMEs and sole proprietorships into the merchant network. Delivery service providers wereKEY OPERATIONAL TARGETS FOR THE also brought in as a subsequent addition duringYEAR: the year. Using the highly secure EMV encryption RCAFLMJMEW©RFC©GLRPMBSARGML©MD©RFC©K.-1©D?AGJGRW© Grow the number of cards by 34% also saw a considerable investment being made Grow the credit card portfolio by 29% RM©BCTCJMN©'2©GLDP?QRPSARSPC©?LB©@?AI©MLjAC© management operations in order to ensure thePERFORMANCE REVIEW: security of terminal management systems and adequate capacity control tools.Sampath Cards demonstrated a strong performancefor the year, with the number of active cards tabling?©7M7©EPMURF©MD©̎©©'L©AMLRP?QR©RFC©GLBSQRPW©U?Q©able to only record a YoY growth of 7.6% . The growingpopularity of debit cards also made a strong contributiontowards the performance tabled by SampathCards.

118 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformancePersonal Banking: CardsK.-1©SQCB©@W©1RC?K© M?R©0CQR?SP?LR©DMP©GRQ©BCJGTCPW GROWTH OF SAMPATH CREDIT CARDS Sampath Bank American Express® Platinum Ultramiles Credit Card 16.4%Sampath Bank, with a rich history of introducing many 2014džPQRQ©RMMI©WCR©?LMRFCP©EG?LR©JC?N©GL©PCDMPKGLE©1PG©*?LI?Q©credit card market when they introduced the Sampath GROWTH OF SAMPATH CREDIT CARD PORTFOLIO ?LI©KCPGA?L©#VNPCQQ}©.J?RGLSK©3JRP?KGJCQ©!PCBGR©!?PB© 20.9%?R©?©E?J?©J?SLAF©CTCLR©FCJB©GL©+?JBGTCQ©GL©,MTCK@CP©©2FC© ?LI©LJCU©?©EPMSN©MD©T?JSCB©ASQRMKCPQ©RM©+?JBGTCQ©GL© 2014?L©CVAJSQGTC©AF?PRCPCB©LJGEFR©DMP©RFGQ©SLGOSC©J?SLAF©CTCLR©UFGAF©U?Q©FCJB©?R©RFC©&MJGB?W©'LL©0CQMPR©GL©)?LBMMK?© CARD ACQUIRING VOLUMEMaldives. Attended by the senior management teams fromSampath Bank and American Express, the Sampath Bank Rs BnKCPGA?L©#VNPCQQ}©.J?RGLSK©3JRP?KGJCQ©!PCBGR©!?PB©U?Q© 50introduced to customers with much fanfare. 402FC©1?KN?RF© ?LI©KCPGA?L©#VNPCQQ}©.J?RGLSK©Ultramiles Card is the fastest and highest miles earning 30!PCBGR©!?PB©GL©1PG©*?LI?©?Q©GR©NPMTGBCQ©!?PB©KCK@CPQ©UGRF©KSJRGNJC©?TCLSCQ©RM©C?PL©?LB©PCBCCK©Ž3JRP?KGJCQ©!?PB© 20members are extended a superior convenience that hasLCTCP©@CCL©MDžCPCB©@W©?LW©MRFCP©@?LIGLE©GLQRGRSRGML©GL© 101PG©*?LI?©@CDMPC 0 Visa Debit Platinum Display Card 2011 2012 2013 20142FC©4GQ?©\"C@GR©.J?RGLSK©\"GQNJ?W©!?PB©GQ©?JQM©?©SLGOSC© would be underpinned by strong brand value thatNPMBSAR©UFGJC©@CGLE©?LMRFCP©džPQR©MD©GRQ©IGLB©RM©@C© AMK@GLCQ©TCPQ?RGJGRW©?LB©AMLTCLGCLAC©.PMKNRCB©@W©GLRPMBSACB©RM©RFC©1PG©*?LI?L©K?PICR©2FGQ©NPMBSAR© these market demands, the skilful use of technologyCL?@JCQ©!?PBFMJBCPQ©RM©AMKNJCRC©RFCGP©'LRCPLCR©@?LIGLE© to generate greater solution based convenience wouldand e-Commerce transactions, with an additional layer of result in the introduction of dynamic e-commercesecurity which will be visible to them on the display panel modules that cater to the next generation of consumers.embedded in the card plastic, in the form of a secondfactor of authentication. Moreover, the demand for corporate cards is also viewed as a potential growth area for the future. To adequatelyFUTURE OUTLOOK: capture this market, the Bank would need to rethink the conventional cards model and develop a more vibrantGiven the growing trend in favour of a cashless society, needs-based platform to cater to the demand forGR©GQ©CLTGQ?ECB©RF?R©A?PB©@SQGLCQQ©UMSJB©LJMSPGQF©GL©RFC© corporate cards.years ahead, as new emerging markets continued toopen up. Certainly, the key to harnessing this potential Meanwhile, amid heightening competition in the market, security and transaction authenticity are likely to underpin the success of the entire card model. Seeking to develop suitable solutions would therefore require much CDžMPR©?LB©MLEMGLE©GLTCQRKCLRQ©GL©RCAFLMJMEW©RM©KGLGKGQC© misuse and fraud, in the future.

119Channel Products: Branch Banking©LCU©DSJJWLJCBECB© As part of the campaign to deliver greater value to thebranches were opened customer, the Bank also continued to enhance the visualduring the year to bring NPMdžJC©MD©?JJ©@P?LAFCQ©JGELCB©RM©?©BGQRGLARGTC©GK?EC©the total number of the identical visual theme was replicated across thebranches to 220. entire network, creating a sense of much needed brand uniformity for both the exterior and the interior layout ofOPERATIONAL FOCUS FOR THE YEAR: the branch. While strengthening the island wide market presence, this move is widely expected to transform theHaving successfully achieved a nation-wide market “Sampath” brand perception across the country in thepresence, the rapid expansion of the Sampath Bank longer term..*!Q©GQJ?LBUGBC©@P?LAF©LCRUMPI©AMLRGLSCB©RM©C?QC©MDž©somewhat in 2014. Having substantially increased the #DžCARGTC©AMQR©K?L?ECKCLR©QRP?RCEGCQ©?LB©MLEMGLE©branch footprint in the past four years following the 2010 NPMACQQ©CLjAGCLAGCQ©?JQM©AMLRGLSCB©RM©@C©?NNJGCB©RM©strategic expansion drive, growth in the network did ensure the branch value proposition was being optimisedcontinue during the year, albeit at a more moderate pace at each branch tier.than that seen in the past few years. $MP©?JJ©DSJJW©LJCBECB©@P?LAFCQ©N?P?JJCJ©RM©RFC©?NNMGLRKCLR©NUMBER OF NEW BRANCHES OPENED MD©0CEGML?J©+?L?ECPQ©RM©QRPC?KJGLC©RFC©BCAGQGML©K?IGLE© process, a number of key operational functions were40 40 centralised during the year, in a bid to minimise the35 35 processing time and improve the credit quality of the overall branch portfolio.30 Additionally, while staying true to the core operational25 KMBCJ©DMP©1SNCP©@P?LAFCQ©?LB©RFC©.J?RGLSK©@P?LAF© ?©AMLACPRCB©CDžMPR©U?Q©K?BC©RM©DSPRFCP©PCdžLC©RFC©20 DSLARGML?J©CLjAGCLAGCQ©MD©C?AF©QCEKCLR©RM©@CRRCP©QCPTC© 18 the evolution of its customer base.15 OPERATIONAL GOALS AND OBJECTIVES FOR THE YEAR:10 9 9 33 8 5 Selective growth in the branch network .PMKMRGLE©?©KMPC©CDžCARGTC©T?JSC©NPMNMQGRGML©RM©0 the customer via the branch concept 2007 2008 2009 2010 2011 2012 2013 2014 Strengthening Brand association by resonating an identical visual appeal across the entire branch1FGNJGLE©?U?W©DPMK©CVN?LQGML©RFC©MTCPPGBGLE©DMASQ©DMP© networkRFC©WC?P©QFGNJCB©RMU?PBQ©BCPGTGLE©?©KMPC©NP?EK?RGA© 'KNJCKCLRGLE©AMQR©K?L?ECKCLR©QRP?RCEGCQ©?LB©branch model that would make a robust contribution NPMACQQ©CLjAGCLAGCQ©RM©GKNPMTC©RFC©OS?JGRW©MD©RFC©RM©RFC© ?LIQ©@MRRMK©JGLC©GL©RFC©JMLECP©RCPK©5GRF©RFC© branch portfolio and sustain a satisfactory bottomLCRUMPI©AMLQGQRGLE©MD©DSJJWLJCBECB©@P?LAFCQ©BCTCJMNGLE© line for each branch tiera sustainable operational platform is deemed imperativeto ensure the branch function is optimised. Moreover, PERFORMANCE REVIEW:much emphasis was also placed on consolidating the Fully Fledged Branchesbranch function to generate a more meaningful valueNPMNMQGRGML©DMP©RFC©ASQRMKCP©'L©RFGQ©AMLRCVR©GR©U?Q©DMSLB© With the expansion of the branch network transitioningthat, in cities and townships that have a high population towards a more selective growth model, 8 new fully-density, opening a second branch unit would greatly help LJCBECB©@P?LAFCQ©©UCPC©AMKKGQQGMLCB©BSPGLE©RFC©WC?P©customise the needs of all customers in these highly to bring the total number of branches to 220 as at 31stpopulated area. December 2014. To enhance the customer experience, 8 branches were also relocated to more prominent locations that support better physical attributes including extended lobby areas, additional parking and better accessibility.

120 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceChannel Products: Branch BankingOpening of Borella Super Branch cost structure would certainly become questionable in the years ahead.Meanwhile, underpinned by the strategy to exploitK?PICR©MNNMPRSLGRGCQ©?LB©QCPTC©QNCAGdžA©ASQRMKCP©LCCBQ© \"CKMLQRP?RGLE©RFC© ?LIQ©AMKKGRKCLR©RM©CLE?EC©?©safety deposit lockers continued to be introduced at more customer-centric agenda cognisant of the evolvingselected branches across the island. needs of the market, the Bank proposes to enact a series of pro-active strategies that would reshapeMoreover, in response to the customer demand, banking the network strategy in the years ahead. The BankFMSPQ©?R©RFC©,CEMK@M©?LB©0?RL?NSP?©@P?LAFCQ©UCPC© would thus be called upon to strike a balance betweenCVRCLBCB©SLRGJ©©NK©?LB©RFC©(?DžL?©@P?LAF©RGJJ©© multichannel delivery mediums as a means of replacingpm, with the possibility of upgrading to super branch RFC©AMLTCLRGML?J©@P?LAF©@?LIGLE©KMBCJ©'L©RFGQ©AMLRCVR©status in the future. ?©LJCVG@JC©?RRGRSBC©UFGAF©AMKNJCKCLRQ©RFC©ŒJGDC©QRWJC© banking” philosophy would underpin the technology- Super Branches BCNCLBCLR©KSJRGAF?LLCJ©@P?LAF©KMBCJ©UFGAF©MDžCPQ©?L© automated solution for most mainstream banking needs.The Super branch concept introduced in 2011 continued !MLQCOSCLRJW©GL©RFC©WC?PQ©?FC?B©Œ*GEFR©@P?LAFCQ©UMSJB©to be well received, as demonstrated by the growing be commissioned, accompanied by automated self-number of transactions resulting from the extended service kiosks which leverages on innovative technology@?LIGLE©FMSPQ©D?AGJGRW©SLBCP©RFC©1SNCP©@P?LAF©KMBCJ©'L© to enhance customer convenience.2014, a further 4 branches were added to Super branchnetwork with the opening one new branch in Borella +C?LUFGJC©?©QCJCARGTC©MDžCPGLE©MD©PCEGML?J©DSJJ©QCPTGAC©while the facilities at the Kandy Dalada Veediya branch, hubs would also be maintained to deliver the entireMaharagama Singer Mega branch and Anuradhapura gamut of banking services to those customers whobranch were upgraded on par with Super branch status. demand the traditional bricks and mortar banking KMBCJ©,MR?@JW©RFGQ©FS@©@?LIGLE©AMLACNR©UMSJB©?JQM©'LTCQRKCLRQ©UCPC©?JQM©K?BC©RM©GLRPMBSAC©QCJDQCPTGAC© ?AR©?Q©?©A?R?JWQR©GL©NPMKMRGLE©1?KN?RF© ?LI©.*!Q©cash deposits kiosks, to further augment the facilities inclusive banking goals in the coming years, which wouldavailable at the Super branch, with the initial unit being see the Bank strive to encourage the country’s vastcommissioned at the Colombo Super branch located at rural unbanked population to embrace formal bankingDharmapala Mw, Colombo 7. channels.FUTURE OUTLOOK: \"CR?GJQ©MD©RFC© P?LAF©,CRUMPI©GQ©EGTCL©ML©N?ECQ©© to 159.Having achieved the underlying strategic objectivesof the branch expansion initiative, the Bank is likely to Opening of Dickwella BranchPCRFGLI©RFC©TG?@GJGRW©MD©RFC©RP?BGRGML?J©DSJJWLJCBECB©@P?LAF©format in the years ahead. Given that the low interestP?RC©PCEGKC©?LB©BCAJGLGLE©,'+Q©?PC©JGICJW©RM©NPCT?GJ©DMP©the foreseeable future, the viability of the existing branch

121Channel Products: ATM NetworkAnticipating the -NCLGLE©MD©?L©-DD1GRC©2+©.CLQGML©\"CN?PRKCLRpotential demandfor 24/7 access from GROWTH IN ON-SITE AND OFF-SITE ATMScustomers in emergingnew markets across the %country, many of thenewly commissioned on- 300site ATMs, were located 250 273in cities and townshipswhich were found to 200have a higher populationdensity. 150OPERATIONAL FOCUS FOR THE YEAR: 100Spearheaded by the decision taken in 2013, moves to 50expand the number of customer touch points continuedGL©RFGQ©WC?P©RMM©TGQcTGQ©RFC©P?NGB©EPMURF©GL©RFC© ?LIQ© 0 17 22 8island-wide ATM network. The campaign to grow the ATM 4network led to the commissioning of a series of on-site?LB©MDžQGRC©2+Q©RM©?BB©RM©RFC©CVGQRGLE©LCRUMPI©MD©RCJJCP© 3machines. -50 (23) (10).MQGRGMLCB©?BH?ACLR©RM©RFC©@P?LAF©MLQGRC©2+Q© 2011 2012 2013 2014are intended primarily to complement the bankingrequirements of a particular region. Anticipating the Growth in Growth inpotential demand for 24/7 access from customers inemerging new markets across the country, many of On-Site ATMS % Off-Site ATMS %the newly commissioned on-site ATMs, were located incities and townships which were found to have a higher On-site ATMspopulation density. The strategy for on-site ATMs wasthus strongly appended to the growth in the branch 285network. -DžQGRC©2+Q\"CQGELCB©RM©MDžCP©?©KMPC©TCPQ?RGJC©?NNPM?AF©RM©ASQRMKCP©AMLTCLGCLAC©RFC©ECMEP?NFGA?J©NMQGRGMLGLE©MD©MDžQGRC© 41ATMs focused on bringing the Bank \"closer to the customer” by facilitating the day-to-day needs of varying ASQRMKCP©QCEKCLRQ©GL©1PG©*?LI?©\"SPGLE©RFC©WC?P© MDžQGRC©2+Q©UCPC©RFSQ©GLQR?JJCB©GL©FMSQGLE©QAFCKCQ© educational institutions and public transport terminals across the country.

122 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceChannel Products: ATM NetworkTo further supplement CLCPEW©CLjAGCLR©KMT?@JC©MNRGML©MDžCPQ©RFC©Q?KC©QCPTGAC©the conventional stand- platform as traditional teller machines and is deemed toalone ATM concept, play a crucial role in broad-basing the “Sampath” brandin 2014, the Bank ?APMQQ©KSJRGNJC©ASQRMKCP©QCEKCLRQ©GL©1PG©*?LI?introduced portable2+Q©©©AMQR©CDžCARGTC© FUTURE OUTLOOK:eco-friendly alternativeRM©RFC©AMLTCLRGML?J©MDž With widespread infrastructure development takingsite ATM model, this place across the country, a host of new customerpioneering endeavour segments are likely to materialise in the years ahead,AMLTCPRQ©NPCSQCB©NJ© opening up multiple opportunities to serve the needscontainers to house the MD©RFCQC©CKCPEGLE©K?PICRQ©$PMK©1?KN?RF© ?LI©.*!Q©teller machine unit. perspective, expanding the number of ATM touch points across the country would help provide the required traction to secure these markets.Container ATM at BorellaTo further supplement the conventional stand-alone ATMconcept, in 2014, the Bank introduced movable ATMs.©AMQR©CDžCARGTC©CAMDPGCLBJW©?JRCPL?RGTC©RM©RFC©AMLTCLRGML?J©MDžQGRC©2+©KMBCJ©RFGQ©NGMLCCPGLE©CLBC?TMSP©AMLTCPRQ©NPCSQCB©NJ©AMLR?GLCPQ©RM©FMSQC©the teller machine unit. The epitome of convenience, this

123Channel Products: Mobile and Tele-bankingThe Bank’s focus forthe year sought toenlist the mountingpopularity of socialmedia as a means ofbroadening the scope ofdigital communicationaccessible to customers.OPERATIONAL FOCUS FOR THE YEAR: PERFORMANCE REVIEW:The advent of smartphones have undoubtedly played a !MPPCQNMLBGLE©RM©RFC© ?LIQ©QRP?RCEW©RM©D?AGJGR?RC©?©KMPC©pivotal role in determining the way in which the modern KC?LGLEDSJ©AMKKSLGA?RGTC©ASJRSPC©1?KN?RF© ?LI©.*!©customers interact with their bank. Consequently, MLjAG?JJW©TCLRSPCB©GLRM©RFC©1MAG?J©KCBG?©QN?AC©UGRF©RFC©in the recent past, the escalating demand for digital J?SLAF©MD©GRQ©NPCQCLAC©ML©$?AC@MMI©2UGRRCP©*GLICB'L©?LB©communication mediums have steadily outpaced the 7MSRS@C©'LBCCB©?©FGEFJW©CLAMSP?EGLE©QGEL©RFC©ASQRMKCP©demand for conventional banking channels. PCQNMLQC©RM©RFC© ?LIQ©BGEGR?J©NPCQCLAC©F?Q©@CCL© overwhelming since the initiation of the process.Capitalising on this growing phenomenon, the Bank’sfocus for the year sought to enlist the mounting 2M©DSPRFCP©?SEKCLR©RFC© ?LIQ©BGEGR?J©NPCQCLAC©RFC©popularity of social media as a means of broadening Sampath Mobile App, version 2 was also launched onthe scope of digital communication accessible to 23rd July 2014. An upgrade to version 1 launched incustomers. The move is seen as an innovative step 2013, the new App allows for an integrated solutiontowards eliminating the perceived communication gap that capture the needs of the digital age customer byRF?R©K?W©CVGQR©@CRUCCL©RFC© ?LI©?LB©GRQ©ASQRMKCPQ©'L© combining the entire gamut of mobile and tele-bankingCQQCLAC©?©FGEFJW©CDžCARGTC©DCCB@?AI©NMPR?J©RFC©QMAG?J© services. Moreover, supporting a much higher level ofmedia landscape also acts as a barometer helping the functionality, the Sampath Mobile App version 2 alsoBank to gauge evolving demands and cater to the high facilitates live streaming and real-time connectivityexpectations of the digitally-savvy younger generation. associated with social media access..?P?JJCJ©RM©RFCQC©KC?QSPCQ©RFC© ?LI©AMLRGLSCB©UGRF© Consequent to these developments mobile bankingCDžMPRQ©RM©DSPRFCP©PCdžLC©RFC©DSLARGML?JGRW©MD©RFC©CVGRGLE© volumes experienced a 269% YoY growth, while tele-KM@GJC©?LB©RCJC@?LIGLE©AF?LLCJQ©'L©RFGQ©PCE?PB© banking volumes rose by 15% YoY.underpinned by the need to facilitate greater customerconvenience, the Bank sought to introduce proactive NEW OFFERINGS:value additions that would complement the changinglifestyles of the modern customer. © +M@GJC©!?QF©Š©©NGMLCCPGLE©CDžMPR©@W©1?KN?RF© ?LI© .*!©+M@GJC©A?QF©GQ©?©D?AGJGRW©UFGAF©?JJMUQ©RFC©SQCP©Meanwhile, leveraging on the country’s burgeoning ©?AACQQ©RM©A?QF©TG?©RFC© ?LIQ©GQJ?LBUGBC©mobile telephone market the Bank also launched an ATM network. An extension of the card-less cashaggressive campaign to promote SMS alerts among the concept launched in 2013, the facility is availableisland-wide customer base. To complement this move, to both customers as well as non-customers andsteps were taken during the year to expand the numberMD©MDžCPGLEQ©SLBCP©RFC©NSPTGCU©MD©RFC©1+1©?JCPR©DSLARGML©introduced in 2014.

124 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceChannel Products: Mobile and Tele-banking LIKES / FOLLOWERS IN SOCIAL CHANNELS39,825 Meanwhile, reinforced by the positive response received 2014 for the mobile cash concept, the Bank would also look at extending the number of touch points across the island, 40,000 MDžCPGLE©EPC?RCP©?AACQQG@GJGRW©RM©RFC©K?QQ©SL@?LICB© 35,000 NMNSJ?RGML©GL©RFC©AMSLRPW©'L©RFC©DMPRFAMKGLE©WC?P©RFC© 30,000 Bank would thus pursue partnerships with grass root 25,000 level organisations in order to broaden Sampath Bank 20,000 .*!Q©NPCQCLAC©?KMLE©NPMTGLAG?J©?LB©PSP?J©K?PICRQ©?Q© 15000 well. 10,000 While the long term prospects of the mobile and tele- 5,000 banking framework remain strongly appended to the 0 global developments in the mobile telephony, the Facebook KCBGSK©RCPK©MSRJMMI©AMLRGLSCQ©RM©MDžCP©AMLQGBCP?@JC© Twitter 541 growth opportunities for the Bank, particularly given the emerging new generation of young adults demanding YouTube 167 1+02©QMJSRGMLQ©2FC©ICW©RM©A?NRGMLGLE©RFCQC©LCCBQ© LinkedIn 1,779 UMSJB©LCACQQGR?RC©RFC© ?LI©RM©CQR?@JGQF©1+02©BCTGAC based tools and hi-concept branches, parallel to enlisting NUMBER OF APPS DOWNLOADED the power of social media marketing in order to promote E?KGdžA?RGML©MD©K?GLQRPC?K©NPMBSARQ©GL©RFC©WC?PQ©?FC?B 30,000 19,749 25,000 29,879 20,000 15,000 10,000 5,000 0 2013 2014 can be activated by a one-time pre-registration Sampath Mobile Cash NPMACBSPC©-DžCPGLE©?©LCU©BGKCLQGML©RM©ASQRMKCP© convenience, the mobile cash concept also serves to augment the operational controls of the AMPNMP?RC©N?PRLCP©?Q©UCJJ©#DžMPRQ©RM©NPMKMRC©RFC© convenience of the mobile cash facility to insurance claimants, saw the Bank tie up with Janashakthi .*!©BSPGLE©RFC©WC?P©?QQSPGLE©?NNJGA?LRQ©MD©RFCGP© claims within a few hours of completing the documentary procedure.FUTURE OUTLOOK:'L©RFC©LC?P©RCPK©1?KN?RF© ?LI©.*!©UMSJB©CLBC?TMSP©RM©PCQF?NC©CVGQRGLE©MDžCPGLEQ©GL©MPBCP©RM©ICCN©N?AC©UGRF©AF?LEGLE©ASQRMKCP©NPCDCPCLACQ©'L©RFGQ©PCE?PB©RFC©DMASQ©for the immediate future would be, to embed a highly?BT?LACB©TMGAC©PCAMELGRGML©40©NPMRMAMJ©DMP©?JJ©CVGQRGLE©MDžCPGLEQ©

125Channel Products: Internet BankingBeing one of the Following the unveiling of the newly revamped personal internet banking interface, the corporate internetpioneers of mainstream banking facility was also re-launched during the year and featured the following tools;e-commerce solutionsGL©1PG©*?LI?©RFC© ?LI© Online documentary credit procedurehas always sought to © -LJGLC©#.$©?LB©#2$©K?L?ECKCLRDSJdžJ©RFC©CTCPEPMUGLE©demands of modern Online payment gateway to expedite payments to Government institutions including Customs dutiescommerce. ?LB©.MPRQ©SRFMPGRW©N?WKCLRQ Being one of the pioneers of mainstream e-commerceOPERATIONAL FOCUS FOR THE YEAR: QMJSRGMLQ©GL©1PG©*?LI?©RFC© ?LI©F?Q©?JU?WQ©QMSEFR©RM© DSJdžJ©RFC©CTCPEPMUGLE©BCK?LBQ©MD©KMBCPL©AMKKCPAC©While completely altering the boundaries of the global With e-commerce rapidly becoming the most favouredmarketplace, the unprecedented speed with which the global business tool, the Bank took proactive steps tointernet has developed in the past few years continues engage the widely untapped e-commerce market in Srito transform the scope of global business practices. *?LI?©!MLQCOSCLRJW©?©QCPGCQ©MD©GLTCQRKCLRQ©UCPC©K?BC©2PGEECPCB©@W©RFGQ©N?P?BGEK©QFGNJ©1?KN?RF© ?LI©.*!Q© RM©SNEP?BC©RFC©CVGQRGLE©CAMKKCPAC©QMNJU?PC©GL©MPBCP©core internet banking platform too came under strict RM©DSPRFCP©QRPC?KJGLC©RFC©MNCP?RGML?J©CLjAGCLAW©MD©RFC©QAPSRGLW©BSPGLE©RFC©WC?P©#DžMPRQ©RM©?PRGASJ?RC©?©KMPC© payment gateway mechanism currently in place.SQCPDPGCLBJW©GLRCPLCR©@?LIGLE©NPMRMAMJ©Q?U©RFC© ?LIQ©Sampath Vishwa, personal internet banking module being OPERATIONAL GOALS AND OBJECTIVESre-engineered in line with a more versatile framework. FOR THE YEAR:Entirely developed in-house using the latest metro designlayout, the new format corresponds to a responsive As a strategic initiative the Bank focused on revampingweb design that combines a seamless device adjustable of the Sampath Vishwa personal internet bankinginterface to facilitate easy access, anywhere, anytime. GLRCPD?AC©?LB©RFC©MLJGLC©AMPNMP?RC©@?LIGLE©MDžCPGLE©?LB©$SLARGMLGLE©LMR©MLJW©?Q©?©TCPGR?@JC©NCPQML?J©džL?LAG?J© QRPCLERFCLGLE©RFC©CAMKKCPAC©MDžCPGLEmanagement tool for customers, the following keyresource upgrades were also introduced as part of the 1?KN?RF©'LRCPLCR© ?LIGLELCU©4GQFU?©D?ACJGNJ © 1GKNJGdžCB©QGELSN©NPMACBSPC©DMP©CVGQRGLE©ASQRMKCPQ © 0CTGQCB©QGELSN©NPMACBSPC©DMP©LCU©ASQRMKCPQ©TG?© the virtual branch © 'LRPMBSARGML©MD©RFC©MLJGLC©?AAMSLR©MNCLGLE©NPMACQQ© for new accounts via the interactive deposit modelling function © ©LCU©N?P?BGEK©QFGNJ©DPMK©RFC©RP?BGRGML?J©N?WKCLR© model to embrace a range of unconventional alternatives vis-à-vis the introduction of multiple payment options coupled with a diverse range of merchants partners

126 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceChannel Products: Internet Banking'LRCPLCR©@?LIGLE©transactions for the yearrecorded an overall YoYgrowth of 63.5%.PERFORMANCE REVIEW:2FC©FGEFJW©DMASQCB©CDžMPRQ©BCNJMWCB©BSPGLE©RFC©WC?P©RM©BCTCJMN©RFC© ?LIQ©GLRCPLCR©@?LIGLE©?PK©NPMTCB©RM©@C©successful with business volumes gaining momentumfollowing the 31st July 2014 launch of the newlyPCT?KNCB©NCPQML?J©GLRCPLCR©@?LIGLE©KMBSJC©'LRCPLCR©banking transactions for the year recorded an overall YoYgrowth of 63.5%.Moreover, both mainstream and customised e-commercesolutions also made healthy contributions to the bottomJGLC©MD©RFC©GLRCPLCR©@?LIGLE©SLGR©HSQRGDWGLE©RFC© ?LIQ©decision to diversify the e-commerce suite.FUTURE OUTLOOK:The future of internet banking in general would beBCNCLBCLR©ML©RFC©?@GJGRW©RM©MDžCP©KSJRGNSPNMQC©QMJSRGMLQ©that correlate to the dynamism of modern commerce.From the Bank’s perspective, doing so would requirethe internet banking framework to deliver versatile@SLBJC©MDžCPGLEQ©RF?R©?K?JE?K?RC©K?GLQRPC?K©QMJSRGMLQ©alongside customised value additions.The emerging growth prospects from online payment andcollection, would necessitate a future-ready e-commerceNJ?RDMPK©UFGAF©UMSJB©?AR©?Q©RFC©APGRGA?J©BGDžCPCLRG?RMP©that would drive sustainable long term growth in thissphere.

127Remittances*CTCP?EGLE©ML©RFC©UCJJ 2P?GLGLE©1CQQGML©©0CKGRR?LAC©\"CN?PRKCLRestablished “Sampath”brand value, the Meanwhile, given the challenges resulting from theMobile Cash concept highly competitive market environment and the relativelywas instrumental ECLCPGA©L?RSPC©MD©RFC©NPMBSAR©MDžCPGLE©GL©?JPC?BW©in penetrating new established markets, the Bank focused on value additionsemerging opportunities ?Q©RFC©ICW©BGDžCPCLRG?RMP©RF?R©UMSJB©FCJN©@MJQRCP©TMJSKCQ©in provincial and rural With increasing emphasis being placed on developingtier markets in the fee-based activities, many of the add-ons were promotedcountry. ?Q©@SLBJCB©QMJSRGML@?QCB©MDžCPGLEQ©EC?PCB©NPGK?PGJW©RM© facilitate greater customer convenience.OPERATIONAL FOCUS FOR THE YEAR: As in the past, the expansion of the overseas network$MPCGEL©CVAF?LEC©GLLJMUQ©EPCU©DMP©RFC©WC?P©UGRF© also remained a key priority in 2014. Measures takenmigrant worker remittances continuing to head the list in this regard were intended to further strengthen theas the country’s top foreign currency earner for 2014. Bank’s presence in existing inward remittance corridors,Demonstrating a YoY growth of 23.3% in transaction L?KCJW©GL©#SPMNC©?LB©RFC©%SJD©!MPNMP?RGML©!MSLAGJ©%!!©volumes, the inward remittances arena continued countries in the Middle-East.RM©LJMSPGQF©?RRP?ARGLE©?©J?PEC©LSK@CP©MD©LCU©QCPTGAC©agents aiming to capitalise on the industry’s seemingly OPERATIONAL GOALS AND OBJECTIVESunconstrained growth trajectory. FOR THE YEAR:From a Bank’s perspective, having been in the business Grow market share at a provincial and ruralDMP©RFC©N?QR©RUM©BCA?BCQ©1?KN?RF© ?LI©.*!©AMLRGLSCQ© marketsto increase the market share in the inward remittances To grow seasoned markets and promote valuemarket, regardless of the growing level of market additions vis-à-vis solution based customerAMKNCRGRGML©#DžMPRQ©RM©QRPCLERFCL©RFGQ©K?PICR©QF?PC©?LB© convenience@MMQR©TMJSKCQ©Q?U©RFC©J?SLAF©MD©?©FGEFJW©DMASQCB©CDžMPR© Strengthen presence in overseas marketsRM©UGBCL©RFC© ?LIQ©PC?AF©?APMQQ©RFC©GQJ?LB©*CTCP?EGLE©on the well-established “Sampath” brand value, the KEY OPERATIONAL TARGETS FOR THEMobile Cash concept was instrumental in penetrating YEAR:new emerging opportunities in provincial and ruraltier markets in the country. To further complement Grow transaction volumes 22%RFCQC©CDžMPRQ©?©QCPGCQ©MD©ECLCP?J©?U?PCLCQQ©UMPIQFMNQ© Grow commission income 28%were conducted to advocate the savings habit among@CLCdžAG?PGCQ©?LB©CLAMSP?EC©RFCK©RM©BCTCJMN©?Q© PERFORMANCE REVIEW:sustainable communities in the longer term while alsoCBSA?RGLE©RFCK©ML©RFC©1?KN?RF©#©0CKGRR?LAC©QSGRC© Demonstrating healthy signs of growth for the year,MDžCPCB©@W©@P?LAFCQ© ?JJ©).'Q©PCK?GLCB©UCJJ©?@MTC©RFC©GLBSQRPW©?TCP?EC©DMP© ©,MR?@JW©RP?LQ?ARGML©TMJSKCQ©EPCU©@W©̎©UFGJC© commission income also recorded a robust growth of 27.9%.

128 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceRemittancesWith the Mobile Cash facility gaining momentum6 NEW OFFERINGS:DMJJMUGLE©GRQ©,MTCK@CP©©J?SLAF©RP?LQ?ARGML©TMJSKCQ©13attributable to the facility doubled in 2014, signalling the20 Concentration on the B2B solutions saw theSLOSCQRGML?@JC©NMNSJ?PGRW©MD©RFC©MDžCPGLE© 20 introduction of exclusive tie up with wow.lk where the Bank’s inward remittance platform was used#DžMPRQ©RM©QRPCLERFCL©RFC© ?LIQ©DMPCGEL©NPCQCLAC©?JQM©22 as a payment gateway for online purchases, aproved to be successful with a sizeable number of new24 previously untapped market segment.additions to the existing partner network as at 31stDecember 2014.11 FUTURE OUTLOOK: 12.?P?JJCJ©RM©BCTCJMNGLE©QSAF©@SQGLCQQ©JGLI?ECQ©RFC© ?LI© With the inward remittance market set to grow evenalso sponsored the Dubai Vesak Festival, a promotional further in the years ahead, the key challenge would beCLBC?TMSP©RM©CLE?EC©RFC©1?KN?RF©@P?LB©UGRF©1PG©*?LI?L© to retain and indeed expand market share amid themigrant worker communities in the Middle-East region. intensifying competition. The Bank’s strategic thrust would thus be to strengthen the island-wide reach while REMITTANCE COMMISSION concurrently pursuing a highly focused promotional INCOME GROWTH agenda to reinforce the “Sampath” brand identity among @CLCdžAG?PGCQ©$SPRFCP©?Q©?©KC?LQ©MD©EPMUGLE©K?PICR© % share, the Bank is also likely to pursue other viable 20 non-organic business alternatives including remittance partner acquisitions that would produce obvious 15 synergies for future growth 10 Moreover, with the Bank’s clear strategic vision to use value additions as the key volume driver, product 5 innovation and enhanced value creation are deemed to play a crucial role in achieving the desired transaction 0 volumes in the medium term. 2011 2012 2013 2014 'L©RFC©AMKGLE©WC?PQ©RFC© ?LI©UGJJ©?JQM©JMMI©?R©QCASPGLE© REMITTANCE TRANSACTION at least a quota of the potential market by enlisting the VOLUME GROWTH support of the migrant workers at source itself. Achieving RFGQ©UMSJB©PCOSGPC©?©BCdžLGRGTC©JMLE©RCPK©R?ARGA?J©JMW?JRW© % programme in order to secure the commitment of the 25 migrant workers prior to their departure for overseas employment. 20 Meanwhile, expanding the Bank’s overseas presence, 15 particularly in Europe and the Far-East also remains an important long term goal. While greatly easing the 10 habitual dependence on GCC countries, broad-basing the business framework in this manner would also help 5 overcome many of the underlying market challenges that could manifest in the years ahead. 0 2011 2012 2013 2014

129Corporate Banking: Corporate CreditAccounting for a healthy OPERATIONAL GOALS AND OBJECTIVES12.9% of the Bank’s FOR THE YEAR:top-line and 28.5%of the bottom-line Generate organic growth through priceas at 31st December competitiveness by optimising CASA mix among2014, Corporate Credit corporate clientsWCR©?E?GL©HSQRGdžCB© Strengthening the presence in existing sectorsits position as a key while exploring emerging sectorscontributor to the Maintaining the quality of the portfolio and controloverall performance of MD©,.©P?RGM©the Bank. KEY OPERATIONAL TARGET FOR THEOPERATIONAL FOCUS FOR THE YEAR: YEAR:As market liquidity swelled amidst progressively declining Grow the loan book by 25%market interest rates, credit growth remained stubbornlyQJSEEGQF©GL©RFC©džPQR©F?JD©MD©RFC©WC?P©UGRF©M@TGMSQ© PERFORMANCE REVIEW:GKNJGA?RGMLQ©DMP©RFC© ?LIQ©AMLTCLRGML?J©!MPNMP?RC©!PCBGR©model. Overcoming the challenges caused by the credit Amid a series of challenges that dominated the businessGKN?QQC©JCB©1?KN?RF© ?LI©.*!Q©!MPNMP?RC©!PCBGR© landscape in 2014, the deepening credit slump andarm to rethink the primary credit strategy in a bid to D?JJGLE©K?PICR©P?RCQ©AMLRGLSCB©RM©GKNGLEC©ML©,CR©'LRCPCQR©stimulate the corporate credit appetite in the second half +?PEGLQ©,'+©DMP©KSAF©MD©RFC©WC?P©5GRF©,'+©QRPCQQCB©RM©of the year. Accordingly, the loan book was re-priced in RFC©JGKGR©QWQRCK?RGA©*!-©GLRCPTCLRGMLQ©UCPC©Q?LARGMLCB©?L©CDžMPR©RM©CJGAGR©?©KC?QSPC©MD©MPE?LGA©EPMURF©UFGJC©RFC© to regularise any potential asset-liability mismatch incore CASA base was appraised and re-structured pricing order to stem further deterioration in the margins.?JRCPL?RGTCQ©UCPC©MDžCPCB©RM©QCASPC©?©EPC?RCP©NMPRGML©of the collection / transactional accounts of corporate 0CE?PBJCQQ©MD©RFGQ©RCLSMSQ©K?PICR©CLTGPMLKCLR©RFC©customers. performance of Corporate Credit remained consistent throughout the year. Accounting for a healthy 12.9%\"PGTCL©@W©CDžMPRQ©RM©EPMU©RFC©AMPNMP?RC©JM?L©@MMI©RFC© of the Bank’s top-line and 28.5% of the bottom-line asBGTGQGML©NPSBCLRJW©DMASQCB©ML©QRPCLERFCLGLE©RFC© ?LIQ© at 31st December 2014, Corporate Credit yet againpresence in already established sectors throughout the HSQRGdžCB©GRQ©NMQGRGML©?Q©?©ICW©AMLRPG@SRMP©RM©RFC©MTCP?JJ©year, while guardedly exploring possibilities in versatile performance of the Bank.new sectors emerging in the market. A well-thought outtactical move, the strategy also underpinned the need to +C?LUFGJC©RFC©?BKGP?@JW©JMU©,.©P?RGM©MD©̎©K?GLR?GL©RFC©OS?JGRW©MD©RFC©NMPRDMJGM©?LB©AMLR?GL©RFC©,.© evidences the success of the Bank’s lending model,ratio to a manageable level. where the conventional lending mix continued to take precedence during the year. While the Bank’s share of the corporate market remained intact, lending was predominantly to already established sectors. Traditional exposure limits remained more or less unchanged, with RFC©MLJW©LMR?@JC©AF?LEC©M@QCPTCB©@CGLE©RFC© ?LIQ© growing presence in the leisure sector. Characterised as a volume driven year, the Corporate Credit loan book grew by a commendable 26.7% for the year, a testament to the sound strategic refocusing process that was initiated in mid-2014. Given the surplus market liquidity, supplementary credit lines were seen as unnecessary and a two-pronged approach was adopted RM©?SEKCLR©TMJSKCQ©'L©RFC©?@QCLAC©MD©?LW©LCU©JMUAMQR© credit lines, the re-pricing of the loan book was carried

130 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceCorporate Banking: Corporate CreditHotel Citrus - Waskaduwa and ensure the fastest possible turnaround time for the cargo clearance procedure. While introducingMSR©?Q©?©džPQR©QRCN©RMU?PBQ©PC?JGELGLE©RFC©AMPNMP?RC©!1© a whole new dimension to customer convenience,KGV©?LB©@MJQRCPGLE©BCAJGLGLE©,'+©\"CTG?RGLE©DPMK©RFC© the facility which is extended to both Sampathtraditionally market driven framework, this rate re-pricing model featured a risk and allocation based pricing ?LI©.*!©ASQRMKCPQ©?Q©UCJJ©?Q©LMLASQRMKCPQ©DMPK?R©UFGAF©QMSEFR©RM©MNRGKGQC©RFC©CLjAGCLAW©MD©A?NGR?J© is a strategic move that aims to capture a largerdeployment. Moreover, a highly focused marketing number of corporate collection accounts. Ancampaign to boost fee-based income by leveraging on CTCLR©RM©K?PI©RFC©J?SLAF©MD©RFC©LCU©MDžCPGLE©U?Q©advisory services and speciality banking concepts was held on 24th June 2014, under the patronage ofalso initiated during the year, well supported by the EMTCPLKCLR©PCNPCQCLR?RGTCQ©?LB©1*.©MLjAG?JQ© ?JMLEQGBC©?©J?PEC©E?RFCPGLE©MD©RFC© ?LIQ©AMPNMP?RC© ?LIQ©PCJ?RGMLQFGN©@?LIGLE©KMBCJ© clientele. Following the launch, the overwhelming PCQNMLQC©RM©RFC©LCU©MDžCPGLE©F?Q©WCR©?E?GL©NPMTCL©Moreover, underscored by the long term goal to secure RFC© ?LIQ©A?N?@GJGRW©RM©MDžCP©RGKCJW©?LB©PCJCT?LR©a larger portion of the collection accounts of corporate solutions to customers.ASQRMKCPQ©?©QCPGCQ©MD©LCU©MDžCPGLEQ©UCPC©?JQM©JMMICB©?R©BSPGLE©RFC©WC?P©#DžMPRQ©GL©RFGQ©PCE?PB©DMASQCB©ML© FUTURE OUTLOOK:providing comprehensive fund management solutionsvis-à-vis e-banking products for corporate customers in 5GRF©RFC©JMU©,'+©QACL?PGM©QCR©RM©AMLRGLSC©DMP©RFC©order to benchmark a new level of customer convenience foreseeable future, organic growth of CASA will remainthat would ultimately translate into a more favourable a key priority for the Corporate Credit in order to ensurecorporate CASA mix in the longer term. a sustainable revenue growth. Moreover, the growing focus on fee based income would be the catalyst inNEW OFFERINGS: supplementing the bottom line. Easing away from fund-based activities in favour of fee-based alternatives © $?AGJGRW©RM©N?W©1*.©N?WKCLRQ©Š©©NGMLCCPGLE© in this manner would most likely result in a greater N?PRLCPQFGN©@CRUCCL©1?KN?RF© ?LI©.*!©?LB© number of value added e-commerce and management RFC©1PG©*?LI?©.MPRQ©SRFMPGRW©1*.©?DžMPBGLE© QCPTGAC©MDžCPGLEQ©@CGLE©K?BC©?T?GJ?@JC©RM©AMPNMP?RC© CVNMPRCPQ©?LB©GKNMPRCPQ©GL©1PG©*?LI?©?©F?QQJCDPCC© customers in the years ahead. Conceptualised as solution alternative to expedite port related landing and based convenience, these alternatives would advocate delivery payments. While ensuring less procedural a new paradigm in corporate credit management in complexity and greater transparency in the tandem with the evolving needs of modern commercial documentation process, the new facility allows enterprises. freight forwarders, logistic solution providers or cargo agents the option to use the Sampath Vishwa Among the strategic focus areas for the Corporate Credit online banking interface, the Bank’s retail or in the medium term would be to grow the market share AMPNMP?RC©D?AGJGRW©MP©1?KN?RF© ?LI©.*!Q©@P?LAFCQ© by strengthening support to existing sectors. Meanwhile, / super branches to make port related payments CDžMPRQ©UMSJB©?JQM©@C©BCNJMWCB©RM©CVNJMPC©LCU©DPMLRGCPQ© particularly to harness the emerging possibilities that are likely to unfold as a result of accelerated growth seen in country’s infrastructure and property development QNFCPCQ©'L©RFGQ©PCE?PB©RFC©!MPNMP?RC©!PCBGR©?PK© would seek to service the needs of high-rise property development projects and integrated mixed development ventures that are deemed to reshape Colombo’s cityscape in the next 3 - 5 years.

131Corporate Banking: Commercial Credit2FC©BGTGQGMLQ©CDžMPRQ©RM© PERFORMANCE REVIEW:EPMU©TMJSKCQ©N?GB©MDž©with all export product 2FC©?EEPCQQGTC©@SQGLCQQ©BPGTC©Q?U©QGELGdžA?LR©MDžCPGLEQ©K?IGLE©QRPMLE© improvement in exports / imports both in terms ofheadway during the turnover and volumes during 2014.year. Featured by a multi-layered product menu gearedOPERATIONAL FOCUS FOR THE YEAR: to service the needs of commercial enterprises, the BGTGQGMLQ©CDžMPRQ©RM©EPMU©TMJSKCQ©N?GB©MDž©UGRF©?JJ©CVNMPR©With the growing pressures of a lacklustre credit appetite NPMBSAR©MDžCPGLEQ©K?IGLE©QRPMLE©FC?BU?W©BSPGLE©RFC©coming on the back of high levels of market liquidity, year.competition among industry players continued tointensify during 2014, with many resorting to competitive However, a notable reduction was observed in the volumestrategies to stimulate a seemingly inactive trading of vehicle imports, a direct consequence of the increasemarket. in the duty structure for imported vehicles. Meanwhile, RFC©LCUJW©GLRPMBSACB©5?PCFMSQC©$GL?LAC©MDžCPGLE©NPMTCB©'L©RFGQ©AMLRCVR©RFC©%MTCPLKCLR©U?Q©QCCL©R?IGLE© RM©@C©?©KSAF©QMSEFR?NJCP©D?AGJGRW©@W©GKNMPRCPQ©?LB©widespread measures to boost trade activities and demonstrated a 100% volume growth during the year.provide the much needed impetus for overall economicEPMURF©BSPGLE©RFC©WC?P©1?KN?RF© ?LI©.*!Q©!MKKCPAG?J© The performance of all business lines culminated towardsCredit division too, focused on a diversifying lending the healthy bottom line recorded by the division in 2014.mix to expand overall volumes and boost the division’stop-line and the bottom-line for 2014. While continuing Meanwhile, by continuing to apply strict credit controlto develop the export business, the division also stepped parametres, the division was also able to maintain aSN©CDžMPRQ©RM©QSNNMPR©RFC©UMPIGLE©A?NGR?J©?LB©A?NGR?J© FGEFJW©Q?RGQD?ARMPW©JMU©,.©JCTCJexpenditure requirements of the import sector. This alsomeant strengthening the exposure in established sectors FUTURE OUTLOOK:while selectively expanding to new sectors including*CGQSPC©#BSA?RGML©?LB©0C?J©#QR?RC©RFCPC@W©QMKCUF?R© The country is likely to experience vibrant growthaltering the conventional exposure matrix as well. prospects in the years ahead. Moreover, underpinned by the goal to achieve a target export turnover of USDOPERATIONAL GOALS AND OBJECTIVES 20 Bn by 2020, the initiative is deemed to be a catalystFOR THE YEAR: MD©EPMURF©DMP©1?KN?RF© ?LI©.*!Q©!MKKCPAG?J©!PCBGR© division. Strong focus on import export business with greater emphasis on exports 'L©F?PLCQQGLE©RFCQC©NPMQNCARGTC©MNNMPRSLGRGCQ©RFC© Explore new opportunities in import export division would focus on consolidating key strengths in business servicing traditionally established sectors parallel to addressing the needs of new emerging businesses. DoingKEY OPERATIONAL TARGETS FOR THE so would necessitate the division to explore a greaterYEAR: BCEPCC©MD©'2©@?QCB©T?JSC©?BBCB©QMJSRGMLQ©?LB©BWL?KGA© e-commerce tools that are likely to be key business © 'KNMPR©2SPLMTCP©EPMURF©Š©̎ drivers, in the next 3 - 5 years. © #VNMPR©2SPLMTCP©EPMURF©Š©̎

132 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceCorporate Banking:Development Banking - Project FinanceGiven the Bank’s pivotal be another priority area in 2014, alongside the growingrole in reshaping Sri CVNMQSPC©RM©RFC©AMSLRPWQ©LJMSPGQFGLE©JCGQSPC©QCARMP©*?LI?Q©CLCPEW©QCARMP©©Q?U©RFC©.PMHCAR© Continuing with the policy to prudently increase exposureFinance unit embark on to the leisure sector, the division focused on projectsa more holistic approach that would augment the room inventory at selectedto derive a sustainable destinations across the country.model for the long termmanagement of energy The Government’s thrust to encourage export orientedprojects. industries also featured prominently in the division’s agenda, with the promotion of non-traditional exportsOPERATIONAL FOCUS FOR THE YEAR: @CGLE©?KMLE©RFC©NPGLAGN?J©CDžMPRQ©DMP©RFC©WC?P©1RCNQ© taken in this regard saw a series of structured credit lines7CR©?E?GL©?©ICW©DMASQ©MD©RFC© ?LIQ©.PMHCAR©$GL?LAC© being introduced to support medium and large scaleunit was to nurture growth prospects in the energy enterprises that produce value added products fromQCARMP©UGRF©EPC?RCP©CKNF?QGQ©ML©RFC©,ML!MLTCLRGML?J© traditional agro based industries.0CLCU?@JC©#LCPEW©QCARMP©,!0#©GL©1PG©*?LI?©&?TGLE©TCLRSPCB©GLRM©RFC©,!0#©QCARMP©?©DCU©WC?PQ©?EM©1?KN?RF© PERFORMANCE REVIEW: ?LI©.*!Q©DMASQ©ML©BCTCJMNGLE©RFC©KGLGFWBPM©QCEKCLR© \"SPGLE©RFC©WC?P©©RMM©.PMHCAR©$GL?LAC©BGTGQGML©F?Q©GL©RFC©AMSLRPW©F?Q©ACKCLRCB©RFC© ?LIQ©NMQGRGML©?Q©?©ICW© achieved a remarkable advances growth of 45% asDSLBGLE©?ECLR©GL©RFC©RFPGTGLE©,!0#©K?PICR© against the budgeted growth of 27%.%GTCL©RFC© ?LIQ©NGTMR?J©PMJC©GL©PCQF?NGLE©1PG©*?LI?Q© SIGNIFICANT PROJECTS FOR THE YEAR:CLCPEW©QCARMP©©Q?U©RFC©.PMHCAR©$GL?LAC©SLGR©CK@?PI© Power & Energy Sectoron a more holistic approach to derive a sustainablemodel for the long term management of energy projects. One of the single largest projects funded during'L©RFGQ©AMLRCVR©CVRCLBGLE©@CWMLB©RFC©AMLTCLRGML?J©PMJC©MD© RFC©WC?P©Q?U©RFC© ?LI©džL?LAGLE©RFC©AMSLRPWQ©džPQR©?©džL?LAGCP©RFC©BGTGQGML©LMU©?JQM©NCPDMPKQ©?©KCLRMPGLE© indigenous lubricant manufacturing plant. Whilerole to clients, thus introducing a whole new dimension K?IGLE©?©QGELGdžA?LR©AMLRPG@SRGML©RM©1PG©*?LI?Q©to successful project management. Moreover, inspired energy sector, the project is expected to result in@W©RFC©J?RCLR©NMRCLRG?J©GL©RFC©,!0#©QCARMP©RFC©SLGR©?JQM© sizeable savings in import expenditure in the longCLE?ECB©GL©D?ARdžLBGLE©KGQQGMLQ©RM©QRSBW©BWL?KGA©LCU© term.concepts and technologies to promote consistent growthin the country’s renewable energy sector. SECTOR WISE LENDING OF 6.22 DEVELOPMENT BANKING 4.21Meanwhile, in line with the potential seen in emergingLCU©QCARMPQ©RFC©'2©QCARMP©BCTCJMNKCLR©AMLRGLSCB©RM© % 56.90 0.04 4.76 12.97 3.24 0.04 2.24 9.38 Agriculture Construction Infrastructure Manufacturing New Economy Other Customers Other Services Tourism Traders Transport

133JRCPL?RGTC©#LCPEW©©5GLB©.MUCP©.PMHCAR© ?J?LEMB? Alternate Energy A key venture funded during the year at a total cost MD©LC?PJW©0Q©© L©D?AGJGR?RCB©RFC©AMKKGQQGMLGLE© of a Dendro bio-mass power generating plant. 5GBCJW©AMLQGBCPCB©RM©@C©?©AMQR©CDžCARGTC©MNRGML© this massive undertaking is also deemed to be the more environmentally preferable alternative to the conventional thermal energy source.FUTURE OUTLOOK:5FGJC©QRPCLERFCLGLE©RFC© ?LIQ©QRPMLEFMJB©ML©RFC©,!0#©QCARMPQ©GL©RFC©KCBGSK©RCPK©?©QCPGCQ©MD©CDžMPRQ©F?TC©been earmarked to further develop the country’s energysector.Meanwhile the emerging demands from proposed largescale integrated property development projects wouldlikely to culminate in a host of lucrative opportunities forgrowth in the property development and constructionsectors in the years ahead. Being key medium termopportunities, serving these emerging markets wouldSLBMS@RCBJW©PCOSGPC©RFC©.PMHCAR©$GL?LAC©BGTGQGML©RM©deploy a gamut of dynamic solutions to cater to theneeds of medium and large scale ventures which will fueleconomic growth in the coming years.

134 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceCorporate Banking:Development Banking - MSME DevelopmentDuring the year, Mr Suren Fernandogreater prominencewas also allocated +GAPMdžL?LAC©#LRPCNPCLCSPtowards promoting JRFMSEF©'©F?TC©@CCL©?L©CLRPCNPCLCSP©DMP©RFC©N?QR©©BGDžCPCLRJW?@JCB©WMSRF© years, due to the lack of proper management skills,development and KW©@SQGLCQQ©D?ACB©EP?TC©BGLjASJRGCQ©?LB©'©U?Q©SL?@JC©women’s empowerment RM©ECLCP?RC©?©NPMdžR?@JC©PCRSPL©&MUCTCP©RF?LIQ©platforms. RM©1?KN?RF© ?LI©.*!©CLRPCNPCLCSP©BCTCJMNKCLR© NPMEP?KKC©GL©©'©U?Q©?@JC©RM©M@R?GL©RFC©OPERATIONAL FOCUS FOR THE YEAR: knowledge and skills needed to turn my business around and make it a success.Having embraced the millennium development goalsDMP©NMTCPRW©?JJCTG?RGML©1?KN?RF© ?LI©.*!Q©K?LB?RC© Sampath \"Saviya\" training programme conducted byDMP©+GAPM©1K?JJ©?LB©+CBGSK©#LRCPNPGQC©+1+#© \"CTCJMNKCLR© ?LIGLE©SLGR©?R©.SRR?J?Kdevelopment continues to mirror the national priorityto promote inclusive banking. Underpinned by theseinclusive banking goals, the core activities of theDevelopment Banking department aim to reach out tothe vast unbanked population in the country.Q©GL©RFC©N?QR©CDžMPRQ©BCNJMWCB©BSPGLE©RFC©WC?P©UCPC©intended to motivate low-income and marginalisedcommunities to grow vis-à-vis access formal bankingAF?LLCJQ©?LB©K?GLQRPC?K©@?LIGLE©RMMJQ©,SPRSPGLE©?©“Credit Plus Culture” of this form is deemed to be anessential pre-requisite that would support a sustainablesociety for the future.Formulated in cognisance of the national MSMEdevelopment agenda, the key focus area for theDevelopment Banking in 2014 was to nurture the ruralMSME sector. While organic business growth undoubtedlyremains the long term objective of this endeavour,widespread regional MSME sector development was atRFC©APSV©MD©RFC©CDžMPRQ©DMP©©+MPCMTCP©BSPGLE©RFC©year, greater prominence was also allocated towardsNPMKMRGLE©BGDžCPCLRJW?@JCB©WMSRF©BCTCJMNKCLR©?LB©women’s empowerment platforms, while specialemphasis was placed on developing individualspossessing recognised technical and vocationalOS?JGdžA?RGMLQ©

135\"SAMPATH SAVIYA” ENTREPRENEUR The empowerment of women and youthDEVELOPMENT WORKSHOPS FOR 2014 are also ancillary goals that the “SampathAligned to the national goal of nurturing a Saviya” workshops seek to accomplish vis-à-vibrant MSME sector in the country, Sampath vis the criterion for selection of programme N?PRGAGN?LRQ©2FC©džPQR©Œ1?KN?RF©1?TGW?© ?LI©.*!©GLGRG?RCB©?©FGEFJW©DMASQCB©CLBC?TMSP© Entrepreneur Development Workshop wasaimed at supporting budding entrepreneurs in J?SLAFCB©GL©RFC©!CLRP?J©.PMTGLAC©BGQRPGAR©MD©the country, particularly at the rural level. Matale, in May 2014. Following the success of the initial workshop, the “Sampath Saviya”The programme entitled “Sampath Saviya” programme was extended to other districts asstrives to inculcate key entrepreneurial well, with a total of 16 programmes accountingskills among the rural population, many of for over 449 participants in 2014.whom lack the required business knowledgeto conduct a sustainable enterprise that No of No of No ofwould secure their livelihoods in the long Workshopsterm. Following an integrated project Region Successfulframework, the workshops are conducted inN?PRLCPQFGN©UGRF©!#$#,#2©!MKNCRCLAW@?QCB© Participants Business#AMLMKGCQ©RFPMSEF©$MPK?RGML©MD©#LRCPNPGQC© ConversionsRMECRFCP©UGRF©,#\"©,?RGML?J©#LRPCNPCLCSP©\"CTCJMNKCLR©SRFMPGRW©?Q©CVRCPL?J©D?AGJGR?RMPQ© Matale 01 25 22of the programme. 0?RL?NSP? 01 28 22 Kegalle 01 24 23,MR©PCQRPGARCB©RM©QR?PRSNQ©RFC©Œ1?KN?RF© Kandy 02 45 35Saviya” entrepreneur development Kurunegala 01 38 27workshops also facilitate the needs of existing .SRR?J?K 01 27 25entrepreneurs who wish to diversify or expand Batticaloa 01 32 25RFCGP©MNCP?RGMLQ©©AMKNPCFCLQGTC©RFPCCŠ Matara 01 27 10day programme covering key aspects such Monaragala 01 27 22as personal entrepreneurial competencies, Galle 01 27 17business environment, business planning tools, Vavuniya 01 25 20record keeping, eco-friendly business practices Kalutara 01 46 32and good labour management practices aim ,'2©©to develop the overall business skills and Students 01 29 25introduce the participants to much needed (?DžL?džL?LAG?J©BGQAGNJGLC© 1*'! 01 23 18 Total 01 26 171NCAGdžA©M@HCARGTCQ©MD©RFC©Œ1?KN?RF©1?TGW?© 16 449 340.PMEP?KKCã© #LF?LAGLE©NCPQML?J©CLRPCNPCLCSPG?J©QIGJJQ ©,'2©©,?RGML?J©NNPCLRGAC©?LB©'LBSQRPG?J©2P?GLGLE©SRFMPGRW©ã© 'BCLRGDWGLE©MNNMPRSLGRGCQ©DMP©CVN?LQGML©MD© 1*'!©©1PG©*?LI?©'LTCLRMPQ©!MKKGQQGML existing businessesã© .PMTGBGLE©N?PRGAGN?LRQ©UGRF©RFC©LCACQQ?PW© tools to develop an appropriate business planã© .PMBSARGTC©SQC©MD©APCBGR©D?AGJGRGCQã© 'LRPMBSAGLE©@MMI©ICCNGLE©?LB©PCAMPB© keeping skillsã© 'LRPMBSARGML©MD©@?QGA©@SQGLCQQ©PCESJ?RGMLQ© and labour laws

136 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceInternational Division: Trade ServicesHaving rolled out the these challenges resulting from the movement in thecampaign to regionalise conventional product mix and stimulate growth of thethe Trade Services traditional import / export business, the Trade ServicesMDžCPGLEQ©GL©©GL©RFC© Division initiated a highly focused campaign to enhanceforthcoming year, the the delivery channels and derive a new customer servicedivision will focus on model. Underpinned by the principles of relationshipextending the number of @?LIGLE©RFC©LCU©ASQRMKCP©QCPTGAC©NJ?RDMPK©?GKQ©RM©MDžCP©touch points across the customers more dynamic, solution-based alternativescountry. RM©DSJdžJ©RFCGP©CV?AR©PCOSGPCKCLRQ©+MPCMTCP©RFC©CDžMPRQ© deployed also sought to grow the Bank’s present marketOPERATIONAL FOCUS FOR THE YEAR: share in the business with the aim of becoming the “Most .PCDCPPCB© ?LI©DMP©2P?BC©1CPTGACQ©@W©CLB©The highly competitive buyer-driven global marketplaceof today has fuelled the growing popularity for the Consequently, a strategic decision was taken to“Open Account” payment method, due in large part to regionalise the import and export business bythe relative lack of procedural complexity involved with extending the Trade Services function to empowerQSAF©KC?QSPCQ©,MR?@JW©GL©©?©QGXC?@JC©LSK@CP©MD© RFC©PCEGML?J©1+#©QCARMP©?APMQQ©RFC©AMSLRPW©'L©BMGLE©RFC© ?LIQ©CVNMPR©ASQRMKCPQ©UCPC©QCCL©KMTGLE©?U?W© so, the Division sought to establish import counters atDPMK©*CRRCPQ©MD©!PCBGR©?LB©\"MASKCLR?PW©!MJJCARGMLQ© selected branches, thereby extending the Trade Servicein favour of Open Account payments. To counter MDžCPGLEQ©RM©?©L?RGMLUGBC©ASQRMKCP©BCKMEP?NFGA©5GRF© 9 such counters established in 2014, more have been+P©\"?W?LRF?©\"C©1GJT?©9!F?GPKCL©©1©©\"©!FCKGA?JQ©.TR© earmarked for development in the forthcoming year.*RB;©GQ©CLQSPGLE©RFC©QKMMRF©DSLARGMLGLE©MD©FGQ©@SQGLCQQ© Further, to complement the goals of relationship banking,operations. the Division continued to emphasise the importance of BCTCJMNGLE©RFC©NPMdžAGCLAW©JCTCJQ©MD©RFC©QR?Dž©QSNNMPRCB©@W© regular skills and competency training. Meanwhile, as a means of tapping into new markets and diversifying the product suite, the Trade Services Division AMLRGLSCB©UGRF©MLEMGLE©CDžMPRQ©RM©QRPCLERFCL©CVGQRGLE© partnerships with foreign correspondent banks as well. OPERATIONAL GOALS AND OBJECTIVES FOR THE YEAR: © 0CT?KN©BCJGTCPW©AF?LLCJQ © .PCQCLR©?©LCU©?LB©CLF?LACB©JCTCJ©MD©ASQRMKCP© service KEY OPERATIONAL TARGET FOR THE YEAR: To increase the market share with a Volume Growth PERFORMANCE REVIEW: Well supported by the Governments’ heightened NSQF©RM©EPMU©RFC©CVNMPR©QCARMP©1PG©*?LI?Q©CVNMPRQ© demonstrated a robust YoY growth of 7.5% with imports growing by 7.1% to reach USD 10.1 Bn and USD 17.6 Bn respectively, for 2014. Aligned to this ascending growth

137Mr Dayantha De Silva B.sc, M.sc FUTURE OUTLOOK:!F?GPK?L©©1©©\"©!FCKGA?JQ©.TR©*RB The propensity for the buyers’ market is likely to continue in the foreseeable future, with clients increasinglyHaving commenced operations in 1998, with MNRGLE©DMP©RFC©QGKNJGdžCB©KCAF?LGAQ©MD©-NCL©AAMSLR©HSQR©©NCMNJC©'©PCA?JJ©MSP©FSK@JC©@CEGLLGLEQ©?Q© N?WKCLR©KCRFMBQ©1RPCLERFCLGLE©RFC© ?LIQ©DMMRFMJB©a small scale industrial solutions provider. Since in this emerging market thus remains a key prioritythen we have expanded our scope considerably for the Trade Services Division. Having rolled out theand established ourselves as a leading engineering A?KN?GEL©RM©PCEGML?JGQC©RFC©2P?BC©1CPTGACQ©MDžCPGLEQ©GL©company in the country, with an enviable portfolio of 2014, in the forthcoming year, the Division will focus onlocal and international clients. From the inception, extending the number of touch points across the country.1?KN?RF© ?LI©.*!©F?Q©@CCL©?©RMUCP©MD©QRPCLERF©RM© +C?LUFGJC©MLEMGLE©CDžMPRQ©UMSJB©PCTGCU©RFC©JCTCJ©MD©SQ©?LB©'©?K©GKKCLQCJW©EP?RCDSJ©RM©RFC© ?LI©DMP©RFC© AMLTCLGCLAC©?DžMPBCB©RM©ASQRMKCPQ©?LB©LCU©GLLMT?RGTC©unstinted support and invaluable guidance which has digital platforms are seen as the key to conveying anempowered us to accomplish our corporate goals. even greater degree of convenience to the customer, in the years ahead.RP?HCARMPW©MD©CVNMPRQ©RFC© ?LIQ©CVNMPR©TMJSKCQ©?JQM©showed signs of healthy growth of 14% for the year.Although the country’s imports grew only marginally, theBank’s imports demonstrated sizeable growth of 37%YoY which led to a consequential increase in marketQF?PC©?RRPG@SR?@JC©RM© ?LIQ©GKNMPR©QCEKCLRNEW PRODUCTS: Sampath Bank pioneered the introduction of an online payment system to facilitate both importers and exporters to settle their payments to the Sri *?LI?©.MPRQ©SRFMPGRW©2FC©D?AGJGRW©GQ©?T?GJ?@JC©RM© 1?KN?RF© ?LI©.*!©ASQRMKCPQ©?Q©UCJJ©?Q©LML ASQRMKCPQ©?LB©A?L©@C©?AACQQCB©TG?©RFC© ?LIQ© island-wide network of 220 branches including 12 super branches open 365 days from 8.00am till 8.00pm. © ©̎©BGQAMSLR©ML©RMR?J©AMKKGQQGML©U?Q©MDžCPCB© DMP©RFC©MNCLGLE©MD©*CRRCPQ©MD©!PCBGR©DMP©%MTCPLKCLR© permit holders to import a vehicle with a special vehicle loan/leasing facility. © 5?PCFMSQC©džL?LAGLE©?©SLGOSC©D?AGJGRW©RF?R©?JJMUQ© 'KNMPRCPQ©©#VNMPRCPQ©RM©?AACQQ©UMPIGLE©A?NGR?J© funding by leveraging on their consignments stored at warehouses.

138 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceInternational Division: International OperationsOPERATIONAL FOCUS FOR THE YEAR: !GRGQ©.CPDMPK?LAC©#VACJJCLAC©U?PB5GRF©RFC©EJM@?J©RPCLB©QFGNJGLE©RMU?PBQ©-NCL©AAMSLR© resultant fee based income falling short of expectationsand Advance payment methods, Telegraphic Transfers ?Q©K?PEGLQ©QJGNNCB©,CTCPRFCJCQQ©DCC©@?QCB©GLAMKC©DMP©22©UCPC©QCCL©?Q©MLC©MD©RFC©KMQR©CLjAGCLR©N?WKCLR© the year grew by 23% comparative to the previous year.alternatives available in the market. As the centralisedNPMACQQGLE©SLGR©F?LBJGLE©RFC©@SJI©MD©RFC© ?LIQ©'LU?PB© 1?KN?RF© ?LI©.*!©U?Q©?NNMGLRCB©?Q©RFC©1CRRJCKCLR©?LB©-SRU?PB©22Q©RFC©'LRCPL?RGML?J©-NCP?RGMLQ©SLGR© ?LI©DMP©RFC©!MJMK@M©@?QCB©31\"©!JC?PGLE©.PMACQQ©AMLRGLSCB©RM©@CLCdžR©DPMK©RFGQ©CQA?J?RGLE©EJM@?J©BCK?LB©for TTs in 2014. on a three year contract commencing June 2014, a commendable achievement for the Bank and indeed aTo further harness this thriving demand for TTs, the testament to the capabilities and professionalism of the'LRCPL?RGML?J©-NCP?RGMLQ©3LGR©K?BC©?©AMLACPRCB©CDžMPR© 'LRCPL?RGML?J©-NCP?RGMLQ©SLGR©to tap into the island-wide branch network during theyear, particularly as a means of boosting the import Yet another accolade was added during the year withvolumes. Moreover, enhancements were also made to the 1?KN?RF© ?LI©.*!©PCACGTGLE©DMP©RFC©RFGPB©AMLQCASRGTC©?SRMK?RCB©'LU?PB©22©NPMACQQ©@W©UFGAF©GLAMKGLE©15'$2© year, the “Awards of Excellence” awarded by Citi Bankmessage data is now directly transferred to the Core 31©GL©PCAMELGRGML©MD©RFC©FGEF©QSAACQQ©P?RC©K?GLR?GLCB©Banking System on a real-time basis, thereby enabling a GL©RFC©Œ1RP?GEFR©2FPMSEF©.PMACQQ©12.©?NNJGCB©DMP©RFC©KMPC©CLjAGCLR©QCPTGAC©RM©RFC©ASQRMKCP Outward TT handling procedure.+C?LUFGJC©CDžMPRQ©RM©D?AGJGR?RC©EPC?RCP©AMLTCLGCLAC©RM© FUTURE OUTLOOK:outward TT customers, saw the preliminary steps takenfor commissioning of a fully automated user friendly 2FC©DSRSPC©MDžCPQ©AMLQGBCP?@JC©NPMKGQC©DMP©RFC©'LU?PB©MLJGLC©GLRCPD?AC©RF?R©UMSJB©CLQSPC©RFC©OSGAI©?LB©CLjAGCLR© and Outward TT business, particularly with the changecompletion of necessary paperwork relating to outward of payment terms from other payment terms toTTs. BT?LAC©.?WKCLR©?LB©-NCL©AAMSLR©KCRFMBQ©BSC©RM© global trends. However, with intensifying competition,+C?LUFGJC©RM©CDžCARGTCJW©AMKNJCKCLR©RFC©BWL?KGA© ?KGB©GLAPC?QGLEJW©ECLCPGA©NPMBSAR©MDžCPGLEQ©RFC©ICW©RM©LCCBQ©MD©?JJ©ASQRMKCPQ©?©FGEFJW©DMASQCB©QR?Dž©RP?GLGLE© growing volumes would be the level of service qualityand skills development agenda continues to be featured MDžCPCB©@W©1?KN?RF© ?LI©.*!©UFCPC©AMLRGLSMSQ©NPMACQQ©prominently in the day-to-day operational focus of the improvements and service enhancements would play aunit. Moreover, ongoing process improvements were pivotal role in securing a larger share of the market.GKNJCKCLRCB©GL©MPBCP©RM©DSPRFCP©PCdžLC©MNCP?RGML?J©CLjAGCLAGCQ©?LB©PCBSAC©NPMACBSP?J©AMKNJCVGRGCQ©RF?R© \"CR?GJQ©MD©,MQRPM©AAMSLRQ©?LB©!MPPCQNMLBCLR© ?LIQ©?LB©would help deliver a timely service to the client. Exchange Companies are given on pages 160 & 161 and pages 162 to 167 respectively.OPERATIONAL GOALS AND OBJECTIVESFOR THE YEAR: © %PMU©'LU?PB©22©TMJSKCQ Grow Outward TT volumesKEY OPERATIONAL TARGETS FOR THEYEAR: To increase the market sharePERFORMANCE REVIEW:Having wisely leveraged on the thriving demand for TTs,RFC©'LRCPL?RGML?J©-NCP?RGMLQ©3LGR©U?Q©?@JC©RM©PCEGQRCP©?©̎©7M7©EPMURF©GL©RFC©LSK@CP©MD©'LU?PB©22Q©?LB©?©phenomenal 18% YoY growth in the number of OutwardTT volumes. However, the notable increase in volumesdid not translate equally into the bottom line, with the

139International Division: Bank Notes Operation (BNO)Supported by the The year also saw the conclusion of the carrierrelatively stable ?EPCCKCLR©UGRF©1PG©*?LI?L©GPJGLCQ©DMP©RFC©@SJI©RP?LQNMPR©currency framework, MD©DMPCGEL©ASPPCLAW©UFGAF©JCB©RFC© ,-©SLGR©RM©CVNJMPC©RFC©1?KN?RF© ?LI©.*!Q© NMQQG@GJGRW©MD©FGPGLE©?JRCPL?RGTC©QCPTGAC©NPMTGBCPQ©RM©DSJdžJ© the requirement in the coming years. ,-©MNCP?RGML©continued to maintain PERFORMANCE REVIEW:its clear leadershipposition as the single Supported by the relatively stable currency framework,largest repatriator of 1?KN?RF© ?LI©.*!Q© ,-©MNCP?RGML©AMLRGLSCB©RM©foreign currency notes maintain its clear leadership position as the single largestout of the country, repatriator of foreign currency notes out of the country,CLHMWGLE©?©QGELGdžA?LR© CLHMWGLE©?©QGELGdžA?LR©K?PICR©QF?PC©GL©©&MUCTCP©market share in 2014. despite the stability that characterised the currency markets throughout the year, margins remained notablyOPERATIONAL FOCUS FOR THE YEAR: slim, as competition continued to intensify amid an ever growing number of players entering the market.Characterised by a relatively stable currency frameworkthe business of importing and repatriation of foreign 2M©MTCPAMKC©RFC©BCRCPGMP?RGLE©K?PEGLQ©RFC© ,-©SLGR©currency continued to attract new players into an already QRCNNCB©SN©CDžMPRQ©RM©QRGKSJ?RC©TMJSKCQ©DMP©RFC©WC?P©saturated market. As competition continued to intensify 2FC©SLNPCACBCLRCB©GLLJMU©MD©DMPCGEL©ASPPCLAW©GLRM©RFC©in this manner, the market dynamics also continued to AMSLRPW©GL©RFC©džPQR©F?JD©MD©RFC©WC?P©NPMTCB©RM©@C©?©@MMK©QFGNJ©RFPMSEFMSR©RFC©WC?P©1NSPPCB©GLRM©?ARGML©1?KN?RF© UGRF© ,-©TMJSKCQ©QM?PGLE©@W©̎©7M7©?LB©PC?JGQGLE© revenue growth in excess of 29% YoY . While the main ?LI©.*!Q© ,-©MNCP?RGML©GLGRG?RCB©džPK©CDžMPRQ©RM©retain its commanding position in this space by building ,-©AMJJCARGML©ACLRPC©AMLRGLSCB©RM©NJ?W©RFC©ICW©PMJC©GL©volumes vis-à-vis a well-articulated pricing strategy realising this growth, the second bank notes collectiongeared to represent market movements. ACLRPC©MNCLCB©GL©,CEMK@M©GL©©?JQM©K?BC©?©FC?JRFW© contribution to the overall performance of the unit.+C?LUFGJC©@W©JCTCP?EGLE©ML©1?KN?RF© ?LI©.*!Q©technological superiority, the Bank continued to 2FC©LMR?@JC©BCAJGLC©GL©ASPPCLAW©GLLJMUQ©GL©RFC©QCAMLB©systematically expand infrastructure that would not only F?JD©MD©©FMUCTCP©NPMKNRCB©RFC© ,-©SLGR©RM©GKNMPR©AMKNJCKCLR©K?GLQRPC?K©BCJGTCPW©AF?LLCJQ©@SR©?JQM©MDžCP© foreign currency to meet the demands of the localgreater solution based convenience to help caption the market.progressive needs of the customer. Of particular note,is the addition of two new foreign currency ATMs during FUTURE OUTLOOK:the year in Kingsbury and Galle Super to add to theNGMLCCPGLE©CDžMPR©J?SLAFCB©GL©© 2FC©DSRSPC©MD©RFC© ,-©MNCP?RGML©AMLRGLSCQ©RM©@C©QRPMLEJW© appended to the country’s ability to sustain a stable core ASPPCLAW©NJ?RDMPK©UFCPC©K?PICRŠQCLQGRGTC©NPGAGLE©UMSJB© determine the required volumes needed to deliver a consistent performance in the years ahead. Meanwhile, dynamic value additions are deemed to be the key to achieving a competitive edge that would help secure a larger market share in the future.

140 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceForeign Currency Banking Unit (FCBU)FCBU’s deposit portfolio The import turnover recorded a 37% growth farrecorded a 71.4% YoY exceeding the budgeted target of 25% whilst the exportgrowth from USD 55.6 turnover recorded a growth of 21.3%. However theMn in 2013 to USD 95.3 resultant fee based income growth was moderate dueMn as at the year end. RM©MDžCPGLE©MD©AMKNCRGRGTC©R?PGDž©P?RCQ©?LB©AF?LEC©MD© N?WKCLR©KCRFMBQ©,MR?@JW©FMUCTCP©RFC©NGJJ?P©@MRRMK©OPERATIONAL FOCUS FOR THE YEAR: line of the division, made a healthy contribution of 29.8% RMU?PBQ©RFC© ?LIQ©MTCP?JJ©NPMdžR?@GJGRW©DMP©RFC©WC?PAs strong market forces continued to underscoreICW©@SQGLCQQ©).'Q©BSPGLE©RFC©WC?P©RFC©$! 3©SLGR©J?GB© The industry-wide lending environment in 2014 wasmuch emphasis on augmenting service parametres in underpinned by the aggressive competition between localorder to further boost the performance of the division. banks, heightened by the declining market interest ratesConsequently, a series of structural changes were scenario. Compounding matters further, foreign banksimplemented, which saw the revamping of the FCBU unit UCPC©?JQM©QCCL©MDžCPGLE©BGPCAR©JCLBGLE©D?AGJGRGCQ©RM©J?PEC©in favour of a more service oriented operational platform infrastructure projects across the country. Meanwhile,vis-à-vis the introduction of a more dynamic front- large global funding institutions continued to activelyend function. A key part of this new customer-centric KGEP?RC©RMU?PBQ©AMPNMP?RC©JCLBGLE©QGELGDWGLE©?©QFGNJ©?NNPM?AF©U?Q©RFC©QCRRGLE©SN©MD©?©DSJJWLJCBECB©@SQGLCQQ© from the conventional state-based lending model of theBCTCJMNKCLR©SLGR©RM©MDžCP©NPM?ARGTC©QMJSRGMLQ©?LB©QSNNMPR© past. Culminating in these factors, in 2014, the FCBU’sRFC©NPMEPCQQGTC©LCCBQ©MD©RFC© ?LIQ©$! 3©ASQRMKCPQ© advances portfolio was able to record a notable growth of ̎©7M7©AMKN?P?RGTC©RM©RFC©NPCTGMSQ©WC?P©0CR?GLGLE©Moreover, throughout the year continuous training and the customary sector-wise lending mix, the rubber andknowledge sharing workshops were conducted to further apparel sectors continued to dominate the exposure ofCLF?LAC©RFC©QIGJJQ©MD©RFC©SLGR©QR?Dž©?LB©AMKNJCKCLR© the FCBU unit. A notable new entrant to the conventionaltheir service capabilities to ensure the longer term JCLBGLE©KGV©GL©©U?Q©RFC©AMSLRPWQ©LJMSPGQFGLE© .-©sustainability both from a clients’ perspective as well as a sector, widely seen as an emerging prospect for thedepartmental angle. future.OPERATIONAL GOALS AND OBJECTIVES 5FGJC©LM©QGELGdžA?LR©AF?LECQ©UCPC©QCCL©GL©RFC©BGTGQGMLQ©FOR THE YEAR: overseas lending portfolio, the FCBU continued to focus on strengthening partnerships with foreign Secure the quality of the Asset portfolio correspondent banks in a bid to support existing low cost Maintain the most viable, low-cost base credit lines and maintain the established liquidity base of the Bank. Securing these low cost funding alternativesKEY OPERATIONAL TARGETS FOR THE remained a key priority area for the FCBU, particularly asYEAR: competition continued to intensify among local banks in 2014. 20% growth in Assets, Deposits and Advances © ̎©AMLRPG@SRGML©RM©RFC© ?LIQ©MTCP?JJ©NPMdžR?@GJGRW©© FUTURE OUTLOOK:PERFORMANCE REVIEW: 5GRF© .-©FC?JRF©?LB©CBSA?RGML©@CGLE©AMPC©EPMURF© QCARMPQ©GBCLRGdžCB©RFC©$! 3©SLGR©GQ©JGICJW©RM©QCC©?L©The demand for deposits saw a dramatic increase in increase in exposure to these sectors, in the years ahead.2014, due to the large volume of excess market liquidityQCCL©GL©RFC©K?PICR©RFPMSEFMSR©RFC©WC?P©0CLJCARGTC©MD©RFGQ© Moreover, as competition within the local banking milieutrend, the FCBU’s deposit portfolio recorded a 71.4% continues to intensify, the FCBU would seek to strengthenYoY growth from USD 55.6 Mn in 2013 to USD 95.3 Mn the overseas lending portfolio in the medium term,as at 31st December 2014, supported by a robust volume through a calculated exposure to regional markets in thegrowth throughout the year. Maldives and Bangladesh.

141Corporate Finance2FC©DMASQCB©CDžMPRQ© The securitisation portfolio also made a healthydeployed to strengthen contribution to the division’s performance for thethe custodial services year, where the increased interest on securitised debtMDžCPGLE©U?Q©UCJJ© instruments added a sizeable boost to the division’srewarded. RMNJGLC©!M?PP?LEGLE©?©0Q©© L©QCASPGRGQ?RGML©BC?J© DMP©?©RMN©RGCP©JC?QGLE©?LB©džL?LAC©AMKN?LW©GL©RFC©QR©OPERATIONAL FOCUS FOR THE YEAR: quarter, the leasing sector continued to dominate the securitisation portfolio in 2014, alongside the growingOn the back of renewed stock market activity and exposure to the rapidly expanding property developmentthe consequent demand for custodian services, the and real estate market.Corporate Finance division was prompted to furtherCLF?LAC©RFC©ASQRMBG?L©QCPTGACQ©MDžCPGLE©GL©?©@GB©RM©MDžCP© Moreover, in tandem with the growing number of foreignclientele a more timely and relevant product. Adopting investors entering the country, the Corporate Financea more client-driven approach the newly revamped division successfully concluded two escrow deals duringcorporate website also spotlighted the dynamic new the year to facilitate such investments.ASQRMBG?L©QCPTGAC©MDžCPGLE The division was also responsible for arranging aMeanwhile, capitalising on the dual role as arrangers and large syndicated deal amounting to USD 30 Mn for aparticipants in the syndicate market, the division also AMK@GL?RGML©MD©MLQFMPC©?LB©MDžQFMPC©AJGCLRQ©5FGJC©sought to strengthen the investment portfolio during the conventional wisdom prevailed to ensure much of theyear, particularly with large scale investments on the rise, same sectorial distribution as in the past, the division?KGB©?AACJCP?RCB©L?RGMLUGBC©CAMLMKGA©BCTCJMNKCLR©'L© ventured to selectively increase the exposure in thethis regard, having observed an emerging trend where leisure sector in 2014.large corporates were seen moving away from mainstreamdebt sources and seeking newer funding alternatives, the *C?B©?PP?LECP©MD©31\"©©+L©QWLBGA?RCB©JM?LQ!MPNMP?RC©$GL?LAC©\"GTGQGML©QRCNNCB©SN©CDžMPRQ©RM©EPMU©RFC©corporate debt portfolio during the year. FUTURE OUTLOOK:OPERATIONAL GOALS AND OBJECTIVES 'L©R?LBCK©UGRF©RFC©NPMHCARCB©EPMURF©RP?HCARMPW©DMP©RFC©FOR THE YEAR: AMSLRPW©RFC©LCVR©DCU©WC?PQ©MDžCP©RFC©NPMKGQC©MD©AMLQGQRCLR© growth in terms of national investments and large scale Grow the overall investment portfolio AMKKCPAG?J©BCTCJMNKCLRQ©?JJMUGLE©EPC?RCP©LJCVG@GJGRW© to conceptualise structured hybrid instruments to meetKEY OPERATIONAL TARGETS FOR THE RFC©CTMJTGLE©LCCBQ©MD©?©LCU©?LB©BGTCPQC©QCARMPQ©.?P?JJCJ©YEAR: to supporting mainstream industries, by leveraging on these emerging prospects, the Corporate Finance Asset growth inclusive of investments - 24% division expects to service in particular, the needs of integrated development projects and mixed- commercialPERFORMANCE REVIEW: development undertakings, in the years ahead.2FC©DMASQCB©CDžMPRQ©BCNJMWCB©RM©QRPCLERFCL©RFC©ASQRMBG?L©QCPTGACQ©MDžCPGLE©U?Q©UCJJ©PCU?PBCB©UGRF©RFC©NMPRDMJGM©experiencing a 75% YoY growth.Meanwhile, the market enthusiasm for listed debenturescontinued to pan out well, following the 2013 budgetannouncement regarding WHT exemptions for interestC?PLCB©ML©JGQRCB©QCASPGRGCQ©0GBGLE©ML©RFGQ©FWNC©RFC©Corporate Finance Division doubled its corporate debt'LTCQRKCLR©NMPRDMJGM©

142 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceTreasuryThe Treasury division With this relative calm currency platform, the BankQRCNNCB©SN©CDžMPRQ©RM© sought to boost the bottom line vis-à-vis an aggressivecreate a more future- volume driven strategy. However, growing volumes amidready operational increasing competition in the market proved to be aplatform that would help AF?JJCLEC©'L©PCQNMLQC©RFC©2PC?QSPW©\"GTGQGML©KMTCB©RM©QRPCLERFCL©RFC© ?LIQ© DMPKSJ?RC©?©KMPC©ASQRMKCPACLRPGA©MDžCPGLE©RF?R©UMSJB©core competencies for caption the needs of the increasingly price-sensitivethe years ahead. customer. Meanwhile, the declining market interest rates seen throughout the year culminated in high level of market liquidity in 2014. Denoted by lowest ever benchmark for Government Treasury Bill rates, the One Year Treasury Bill rate for January 2014 was 8.29%, lower ONE YEAR TREASURY BILL RATE MOVEMENT IN 2014 %OPERATIONAL FOCUS FOR THE YEAR: 10Given the market sensitive nature of the Treasury 8.3@SQGLCQQ©RFC©?ARGTGRGCQ©MD©RFC© ?LIQ©2PC?QSPW©\"GTGQGML© 8largely mirrored the mixed market signals seen in theoperating environment for much of 2014. 7.1 7.0 7.0On the currency side, regardless of the extraordinarily 6 7.1 7.1 7.0 6.3 6.0 6.0volatile global currency markets, local currency markets 6.7PCK?GLCB©PCJ?RGTCJW©N?QQGTC©GL©©*?@CJJCB©?Q©MLC©of the least volatile periods in the recent history of the 5.9 6.01PG©*?LI?L©0SNCC©MLJW©KGLMP©LJSARS?RGMLQ©UCPC©QCCL©GL©RFC©#VAF?LEC©0?RC©UGRF©RFC©0SNCC©RP?BGLE©@CRUCCL©0Q© 4©?LB©0Q©©DMP©KSAF©MD©RFC©WC?P©$MJJMUGLE©?©QGKGJ?P©N?RRCPL©RFC©0SNCC©DMPU?PB©NPCKGSK©JCTCJQ©RMM© 2were static for much of the year. The one year forwardNPCKGSK©UFGAF©U?Q©?R©0Q©©?R©RFC©QR?PR©MD©©U?Q© 0JGRRJC©AF?LECB©?R©0Q©©?R©RFC©WC?P©CLB©?NJCP©PC?AFGLE©?©FGEF©MD©0Q©©GL©NPGJ© Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14USD / LKR MOVEMENT IN 2014 RF?L©RFC©AMPPCQNMLBGLE©džESPC©PCEGQRCPCB©GL©RFC©NPCTGMSQ© year. Moves by the regulator to stimulate the credit Rs momentum in the country saw the rate slip to 5.89% in September 2014. Admittedly, the wave of 132.0 incentives failed to ignite the desired credit appetite and credit growth fell well below expectations for the131.6 year. Consequently banks were forced to hold out large amounts of liquid funds amid dwindling investment131.2 131.30 options in Government backed securities and the 131.20 Standard Deposit Facility at Central Bank.130.8 130.78 130.75130.4 130.77 2FC©2PC?QSPW©\"GTGQGML©QRCNNCB©SN©CDžMPRQ©RM©APC?RC©?©130.0 130.80 more future-ready operational platform that would help 130.75 130.65 130.38 130.44 QRPCLERFCL©RFC© ?LIQ©AMPC©AMKNCRCLAGCQ©DMP©RFC©WC?PQ© ahead. Among the key initiatives taken in this regard 130.23 was to reinforce the compliance framework, which saw the Treasury Division updating all operational and 130.35 counterparty limits as per the requirements stipulated 130.20 @W©RFC©!CLRP?J© ?LI©+MPCMTCP©@CAMKGLE©RFC©džPQR©JMA?J© Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

143@?LI©RM©DSJdžJ©PCESJ?RMPW©?LB©AMKNJG?LAC©PCOSGPCKCLRQ©MD© FUTURE OUTLOOK:international counterparties, the Bank adopted the DoddFrank Act in Oct 2014. With the country’s growth trajectory likely to see a sizeable uptick in the years ahead, market perceptionsFrom an operational perspective, the Treasury Division ?PC©?JQM©JGICJW©RM©SLBCPEM©QGELGdžA?LR©AF?LECQ©UGRF©RPCLBQ©?JQM©AMLRGLSCB©UGRF©MLEMGLE©CDžMPRQ©RM©CLF?LAC©RFC©QIGJJQ© moving away from mainstream Treasury instruments?LB©AMKNCRCLAGCQ©MD©RFC©RPC?QSPW©QR?Dž©?Q©KC?LQ©MD© in favour of more dynamic new tools. CorrespondingCDžCARGTCJW©A?NRGMLGLE©CTMJTGLE©@SQGLCQQ©LCCBQ© to these challenges, in the coming years, activities of the Treasury Division would culminate to ensure aPERFORMANCE REVIEW: greater degree innovation that conveys the intricacies of changing market forces.#DžCARGTCJW©JCTCP?EGLE©ML©RFC© ?LIQ©AMPC©AMKNCRCLAGCQ©the Treasury Division continued to perform consistentlythroughout the year. Denoted by notable growth intrading volumes, the Division made healthy contributionsRM©RFC© ?LIQ©@MRRMK©JGLC©DMP©Meanwhile, corresponding to the linear movement in thestock market, the Treasury Division continued to featurea low-key approach towards Equity Market dealings.However, continuous monitoring of market movementsled to some notable gains in 2014, in particular, theQGELGdžA?LR©A?NGR?J©E?GL©PCQSJRGLE©DPMK©RFC©QRP?RCEGA©decision taken by the Bank to divest its entire stake of3LGML© ?LI©.*!2FC©PCN?RPG?RGML©MD©RFC© ?LI©,MRCQ©UFGAF©AMKCQ©SLBCP©the supervision of the Treasury continued to maintainits dominance in the market. Well supported by theprice competitive strategy and specialised value addedMDžCPGLEQ©GLGRG?RCB©BSPGLE©RFC©WC?P©TMJSKCQ©EPCU©QGELGdžA?LRJW©\"SPGLE©RFC©NCPGMB©SLBCP©PCTGCU©RFC©K?PICR©competitiveness grew with new players making anentry to an already congested market with a renewedinterest induced by a conducive currency framework.The Bank’s bank notes operations, geared with a pricecompetitive strategy and specialised value addedMDžCPGLEQ©AMKNJCKCLRCB©@W©?©EPMUGLE©LCRUMPI©MD©BCJGTCPW©channels, continued its market dominance amidst achallenging market environment.'LQGBC©4GCU©©2PC?QSPW©\"CN?PRKCLR

144 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceRecoveries2FC© ?LIQ©ECLCP?J© \"CN?PRKCLR©U?Q©GLDMPKCB©RM©CVNCBGRC©RFC©džJGLE©MD©strategies pertaining to legal action in courts in order to compel and pressurisecredit quality continued borrowers to agree on settlements subject to courtto be applied to settlements.safeguard the quality ofthe lending portfolio. The recoveries team also continued to play a proactive role in expediting action on non-performing facilitiesOPERATIONAL FOCUS FOR THE YEAR: and foreclosed properties , not only as a means of cutting losses for the Bank but also with the aim of'L©©RFC©NPGK?PW©DMASQ©MD©RFC©0CAMTCPGCQ©\"CN?PRKCLR© preventing defaulters from escalating to the next tier.U?Q©RM©AMLRPMJ©RFC© ?LIQ©,ML.CPDMPKGLE©BT?LACQ© Further, wherever possible and practical, the unit also,.©?LB©K?GLR?GL©RFC©APCBGR©OS?JGRW©MD©RFC©?BT?LACQ© QMSEFR©RM©GKNPMTC©RFC©CLjAGCLAW©MD©RFC©.?P?RC©NPMACQQ©@W©NMPRDMJGM©2FC© ?LIQ©ECLCP?J©QRP?RCEGCQ©NCPR?GLGLE©RM© concluding it within the shortest possible time frame.credit quality continued to be applied to safeguardthe quality of the lending portfolio. However, the key To further streamline the recovery process, during theRM©?AFGCTGLE©RFC©BCQGPCB©,.©JCTCJQ©U?Q©BCNCLBCLR©ML© WC?P©RFC©BGTGQGML©BCTCJMNCB©?©LCU©QMNJU?PC©UGRF©RFC©PCQRPGARGLE©RFC©TMJSKC©MD©LCU©CLRP?LRQ©GLRM©RFC©,.© AMMNCP?RGML©MD©'2©\"CN?PRKCLR©RF?R©UMSJB©GLRPMBSAC©?©@P?AICR©5MPIGLE©AJMQCJW©UGRF©RFC© ?LIQ©!PCBGR©!MLRPMJ© fully integrated “Delinquency Management System”.3LGR©!!3©?LB©RFC© P?LAF0CEGML?J©0CAMTCPW©-LjACPQ© By connecting the entire branch network to the centralthe recoveries unit stepped up monitoring and collection recoveries division, the new system, which would be fullyCDžMPRQ©RM©PCGEL©GL©DSPRFCP©CVN?LQGML©MD©RFC©,.©@P?AICR© commissioned by March 2015 is expected to enhance the%GTCL©RFC©P?NGB©CVN?LQGML©MD©RFC© ?LIQ©GQJ?LBUGBC© DSLARGML?JGRW©MD©RFC© ?LIQ©PCAMTCPW©AMLRPMJ©NPMACQQ©?LB©footprint, stringent monitoring and follow up of this QSNNMPR©?©LCU©BGKCLQGML©MD©,.©K?L?ECKCLR©nature was seen as a timely, if not an essential move. As a key component of the recovery process, theA series of new guidelines were thus introduced during competency levels required by recovery personnelthe year to restrict the number of new entrants to the continued to be strengthened throughout 2014, with,.©A?RCEMPW©UFCPC©RFC©!!3©LMU©KMLGRMPQ©@P?LAF©© extensive training accompanied by proactive knowledgedepartment portfolios starting from those that are two sharing sessions conducted by senior management tomonths in arrears as opposed to the customary three @CLCdžR©?JJ© P?LAF©0CAMTCPW©-LjACPQ©QR?RGMLCB©?APMQQ©RFC©KMLRF©NCPGMB©?JJMUCB©GL©RFC©N?QR©0CAMTCPW©MLjACPQ© country.attached to the recoveries unit are then deployed tophysically visit these customers and undertake the OPERATIONAL GOALS AND OBJECTIVESresponsibility for follow-up, rescheduling and recovery FOR THE YEAR:up to the point of full settlement. This exercise is nowGKNJCKCLRCB©@W©0CAMTCPGCQ©\"CN?PRKCLR©PCE?PBJCQQ©MD© 2M©BCdžLC©RFC©,.©@CLAFK?PI©DMP©RFC©GLBSQRPW©the existence of legal/court proceedings. FUTURE OUTLOOK:However, in the event all such borrower rehabilitationCDžMPRQ©?PC©SLQSAACQQDSJ©MSRMDAMSPR©QCRRJCKCLRQ© Cognisant of the growth the volume of advances sinceUCPC©NPMKMRCB©?Q©KSAF©?Q©NMQQG@JC©GL©?L©CDžMPR©RM© ©GLBSQRPW©,.Q©F?TC©?JQM©@CCL©ML©RFC©PGQC©DMP©RFC©limit the number of referrals to the legal channels and past few years. With this trend likely to continue into theovercome the practical challenges encountered with such foreseeable future, the ensuing challenges are boundalternatives. RM©PCBCdžLC©RFC©ASQRMK?PW©,.*©K?L?ECKCLR©KMBCJ©?LB© compel a holistic approach that would encompass the.PMACQQCQ©UCPC©DSPRFCP©QRPC?KJGLCB©RM©?PPCQR©RFC©BCJ?WQ© entire advances process.GL©A?QC©MD©NCPQGQRCLR©D?GJSPCQ©AAMPBGLEJW©RFC©*CE?J© Having always strived to maintain a consistently low ,.©UCJJ©@CJMU©RFC©GLBSQRPW©?TCP?EC©1?KN?RF© ?LI© .*!©UMSJB©LCCB©RM©CVCPAGQC©QRPGARCQR©NMQQG@JC©AMLRPMJ©RM© AMLRGLSC©RM©?BFCPC©RFC© ?LIQ©@CLAFK?PI©,.©GL©RFC© years ahead.

145Information TechnologyThe Bank has always Cash Deposit Kiosk Machinesought to strengthenevery aspect of the'2©NJ?RDMPK©RM©AMLTCW©a greater degree ofquality assurance to thecustomer at all times.©ICW©D?AGJGR?RMP©MD©RFC© ?LIQ©MNCP?RGML?J©K?LB?RC© Sampath z-Reload System'LDMPK?RGML©2CAFLMJMEW©1WQRCKQ©'2©AMLRGLSC©RM©NJ?W©?© © © 1?KN?RF©X0CJM?B©GQ©?LMRFCP©GLLMT?RGTC©leading role in ratifying the competitive edge enjoyed@W©1?KN?RF© ?LI©.*!©GL©1PG©*?LI?Q©FGEFJW©AMKNCRGRGTC© product that facilitates convenient reloadingbanking milieu. Following an inclusive approach, the Bank for mobile prepaid connections.F?Q©?JU?WQ©QMSEFR©RM©QRPCLERFCL©CTCPW©?QNCAR©MD©RFC©'2©platform to convey a greater degree of quality assurance Automated Teller Safeto the customer at all times. Yet another innovation geared to improve RFC©CLjAGCLAW©MD©RFC©B?WRMB?W©MNCP?RGMLQ©#TGBCLAGLE©RFC©OS?JGRW©MD©1?KN?RF© ?LI©.*!Q©'2© by eliminating the time spent by tellers inplatform, the Bank was honoured with the following handling cash, including the counting andawards; sorting process. © ,?RGML?J© CQR©/S?JGRW©1MNJU?PC©U?PBQ© Sampath Vishwa Corporate 9, /1;©%MJB©KCB?J©SLBCP©!MKKCPAG?J© © © 0CT?KNCB©RM©A?RCP©RM©RFC©PCOSGPCKCLRQ©MD© Applications category for \"Sampath Corporate .?WKCLR©1WQRCK
clients ranging from micro to large scale corporates. © ,?RGML?J© CQR©/S?JGRW©1MNJU?PC©U?PBQ© 9, /1;© PMLXC©KCB?J©SLBCP©'LFMSQC© Sampath Vishwa Retail System Developed Applications category for \"e-Teller © © 0CT?KNCB©SQGLE©QR?RC©MD©RFC©?PR©PCQNMLQGTC© System\" BCQGEL©?LB©.CPQML?J©$SLB©+?L?ECKCLR© Options; enabling the customer multiple BCTGAC©?AACQQ©RM©NPMTGBC©?©SLGdžCB©CVNCPGCLAC©Innovations and Improvements e-Remittance ServicesDeposit Kiosk © © 2FGQ©F?Q©@CCL©CLF?LACB©MDžCPGLE©N?WKCLRQ©Sampath Bank introduced a Cash Deposit Kiosk through Mobile Cash and ATMs; withoutA?N?@JC©MD©PCAMELGQGLE©?JJ©1PG©*?LI?L©0SNCC© restricting customers to branch banking!SPPCLAW©,MRCQ©DPMK©0Q©©BCLMKGL?RGML©RM©0Q© hours. The Mobile Cash system was enhanced©LMRC©2FGQ©PCBSACQ©RFC©LSK@CP©MD©ASQRMKCPQ© to allow integration with diverse corporates.coming to counters and improves the operational 'L©©GLQSP?LAC©AMKN?LGCQ©UCPC©?BBCB©CLjAGCLAW©GL© P?LAFCQ©2FGQ©?JQM©GLAPC?QCQ©RFC© to the Mobile Cash platform to enablecustomer convenience allowing round the clock ASQRMKCPQ©RM©PCACGTC©'LQSP?LAC©AJ?GKQ©TG?©?T?GJ?@GJGRW©DMP©BCNMQGR©RP?LQ?ARGMLQ©2FC©džPQR©@?RAF© ATMs.of 24 hour kiosks were installed at the “ColomboSuper” and “World Trade Centre” branches.

146 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceInformation Technology Combined Statements © © ©'LTCQRGLE©GL©NPMDCQQGML?J©BCTCJMNKCLR©RM©© © 2FGQ©U?Q©GLRPMBSACB©RM©MDžCP©RFC©ASQRMKCP©?© develop the skills and competency levels of RFC©'2©RC?K© single statement of his / her accounts as an alternative to individual statements for each Other Key Enhancements account, thus allowing customers the ease of reconciliation. © #DžMPRQ©DMP©©GLAJSBC Upgrade of the core banking system in Cardless Cash January 2014, including new services such A breakthrough innovation which was ?Q©15'$2©SRMK?RGML©UFGAF©F?Q©AMLRPG@SRCB© introduced in 2013, which allows customers to faster processing of foreign currency to withdraw cash through the ATMs without transactions. Moreover, by removing a number the need for a Card. The commercial launch of manual back-end processes, the upgrade MD©RFC©MDžCPGLE©GL©©U?Q©?AAMKN?LGCB©@W© F?Q©QGELGdžA?LRJW©GKNPMTCB©RFC©DSLARGML?JGRW©MD© further value additions and enhancements. RFC© ?LIQ©MNCP?RGML?J©NPMACBSPCQ©RMECRFCP© with a greater degree of consistency that© © #LRCPNPGQC©!MJJCARGML©?LB©.?WKCLR©1MJSRGMLQ© F?Q©FCJNCB©RFC©QR?Dž©RM©MDžCP©QNCCBW©?LB© through various electronic channels; uninterrupted service to customers supporting the entire supply chain of the @SQGLCQQ©CE©© #.$©?LB©#2$©.?WKCLRQ©.MPRQ© © © ©.PMACQQ©MD©'LRCPL?J©SBGR©0CNMPRGLE©F?Q©@CCL© SRFMPGRW©.?WKCLRQ©'LQSP?LAC©NPCKGSK© QRPC?KJGLCB©TG?©N?NCPJCQQ©C0CAMLAGJG?RGML© N?WKCLR©?LB©AJ?GK©QCRRJCKCLRQ©.CRRW©!?QF© System .?WKCLRQ©\"C?JCP©!PCBGR©1CRRJCKCLRQ © © ©BKGLGQRP?RGML©MD©0CdžL?LAC©*CLBGLE©F?Q©Improvements to the Internal IT Processes @CCL©QGKNJGdžCB©TG?©0CdžL?LAC©.PMTGQGMLGLE©and Technologies System© 1RPGTGLE©RM©@CLAFK?PI©'LRCPL?J©'2©1WQRCKQ© © © ©'LRPMBSACB©?L©?SRMK?RCB©!SQRMKCP© Development within the Financial Services Sector, Feedback Collection tool that provides online the following initiatives were taken during 2014 to customer feedback which would trigger a CLF?LAC©RFC©CLjAGCLAW©MD©GLRCPL?J©NPMACQQCQ real-time complaint resolution mechanism © © ©'KNJCKCLR?RGML©MD©?©AMKNPCFCLQGTC© , /1©©U?PBQ© #LRCPNPGQC©1CPTGAC© SQ©#1 ©1MJSRGML© strengthened by a Service Oriented PAFGRCARSPC©1-©NJ?RDMPK©2FC©PCQSJRGLE© AF?LECQ©F?TC©JCB©RM©QGELGdžA?LR©AMQR©Q?TGLEQ© RFPMSEF©KMPC©CDžCARGTC©SRGJGQ?RGML©MD©CVGQRGLE© '2©PCQMSPACQ Adopting Change Management concepts that demand continuous monitoring of each stage of the development process, while relaying feedback to all stakeholders involved in a development project © © ©'L©MPBCP©RM©NPMTGBC©C?QW©?LB©LJCVG@JC©?AACQQ© RM©GLDMPK?RGML©PCOSGPCB©@W©QR?Dž©RM©NCPDMPK© various tasks, all relevant documentation was K?BC©?T?GJ?@JC©TG?©'LRP?LCR©'L©?BBGRGML©?L© online Q&A portal was also setup to provide QMJSRGMLQ©RM©AMKKML©'2©PCJ?RCB©AMLACPLQ© that may arise as part of the day-to-day operations.

147 A number of initiatives were taken to improve the quality of master customer data received by the Bank. Enhancing the quality of the customer data in this manner is deemed to support better Business 'LRCJJGECLAC© '©RMMJQ©?LB©@MMQR©RFC© ?LIQ© analytic capabilities leading to timely, CDžCARGTC©BCAGQGML©K?IGLE©?LB©PCNMPRGLE©?R©?JJ© levels of the business2&#©!1#©$-0© 31',#11©',2#**'%#,!#©˒ '˓As a key driver of overall business objectives,GLLMT?RGTC© '©QMJSRGMLQ©?PC©LMU©GLRCEP?RCB©into all aspects of the day-to-day business ofthe Bank and provide a template for various@SQGLCQQ©SLGRQ©©@P?LAFCQ©RM©CDžCARGTCJW©EMTCPL©and monitor their operational procedures.The Bank’s centrally maintained, well securedEnterprise Data Warehouse also functions asan important risk management tool. Moreover,leveraging on these vast data resourceshas helped the Bank to interpret strategicopportunities and address underlying businesschallenges in the modern fast paced digitalage. '©DMPKQ©RFC©@?QGQ©MD©?JJ©\"?R?©+GLGLE©?LB©.PCBGARGTC©L?JWRGAQ©RCAFLGOSCQ©RF?R©FCJN©E?SEC©the pulse of the customer and formulate moreASQRMKCPACLRPGA©QMJSRGMLQ© '©GQ©?JQM©RFC©central point which enables Sampath Bank.*!©RM©?BFCPC©RM©RFC©FGEFCP©JCTCJ©MD©PCESJ?RMPW©compliance imposed by the Central Bank of Sri*?LI?©Deemed to be a catalyst of growth in theAMKGLE©WC?PQ© '©GQ©QCCL©?Q©?©NMRCLR©@JSCNPGLR©RF?R©GQ©JGICJW©RM©BCRCPKGLC©FMU©RFC© ?LI©DSJdžJQ©the aspirations of its multiple stakeholders inthe future.

148 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceCall Centre Operation CURRENT GOAL: 100% LEVEL: > 95% CONTACTABLE CONTACTABLE5GRF©ASQRMKCP©DSJdžJJKCLR© 'L©?AAMPB?LAC©UGRF©MSP©ASQRMKCP©PGEFRQ©DP?KCUMPI©being a high priority area, telephone etiquette mechanism to respond to thewe remain committed customer in an ethical manner also helps to ensureRM©MDžCPGLE©BWL?KGA© standardised customer service.solutions that help buildsustainable relationships $SPRFCP©RFCPC©UCPC©LM©PCNMPRCB©GLAGBCLRQ©ML©GBCLRGdžCB©for the future. JC?IQ©RFCNJQ©MP©JMQQCQ©MD©ASQRMKCP©B?R?©2FC©&0©NP?ARGACQ© were imposed and strict monitoring processes areAligned to the goal of being 100% contactable, the Call carried out to prevent those issues.Centre function was reorganised during the year, withthe accompanying changes resulting in a number of With customer feedback playing a pivotal role in ourQRPSARSP?J©KMBGdžA?RGMLQ©'L©RFGQ©PCE?PB©UFGJC©CLF?LAGLE© ongoing strategic realignment process, our forthrightthe infrastructure of the Call Centre, the changes attitude to resolving customer complaints has given usalso saw improvements being made to the complaint an undeniable advantage over our competitors.recording and handling processes. Following this new As keen proponents of customer satisfaction, Sampathcall management mechanism initiated in July 2014, asharp decline has been observed in the number of major ?LI©.*!Q©BCBGA?RCB©ASQRMKCP©AMKNJ?GLRQ©SLGR©CLQSPCQ©complaints received for the year. solution rate of 100% at all times. Customer complaints received 207 Customer complaints solved 207 Success rate % 100 5GRF©ASQRMKCP©DSJdžJJKCLR©@CGLE©?©FGEF©NPGMPGRW©?PC?©UC© PCK?GL©AMKKGRRCB©RM©MDžCPGLE©BWL?KGA©QMJSRGMLQ©RF?R© help build sustainable relationships for the future. Standard Indicator Our Standards Number01 ,SK@CP©MD©PGLEQ Maximum of 3 rings02 Greeting Ayubowan / Vanakkam Sampath Bank, &MU©K?W©'©?QQGQR©WMS03 ,SK@CP©MD©RP?LQDCPQ 3 transfers per 10 calls04 Total holding time 30 seconds per call05 *CR©RFC©ASQRMKCP©RM©PCNC?R©RFC©OSCQRGML ,CTCP06 .PMKGQC©RM©A?JJ©@?AI©GD©LCACQQ?PW Within 30 minutes / Customer’s convenient time07 Call back as promised Always