ABOUT THIS REPORT

BANK OF CEYLON

ANNUAL REPORT 2023

W E L C O M E T O T H E

Our eleventh Integrated Report aims
to provide a balanced and accurate
reflection of our performance and future
outlook in relation to material financial,
economic, social and governance issues.
The intent of the Report is primarily to
address value-creation considerations of
our key stakeholders and we share our
progress against our strategic objectives,
considering our material matters,
which are informed by our external
environment, risks and opportunities
and our stakeholder concerns.

REPORTING SCOPE

AND BOUNDARY

This Report provides a comprehensive
view of the domestic and overseas
operations of Bank of Ceylon (hereafter
referred to as 'BoC' or 'the Bank') and
its subsidiaries (collectively referred to
as 'the Group') from 1 January 2023
to 31 December 2023. Key financial
aspects represent consolidated
information, while non-financial aspects
are discussed in context of the Bank,
given its dominance within the Group.
The reporting boundary remains
unchanged from the previous year and
there were no significant changes to the
Group’s size, structure, or supply-chain.

As per the changes to the Board,
before the sign off date of this
Report, includes a message from the
Bank's newly - appointed Chairman.

MATERIALITY

BoC applies a double materiality lens
to determine the matters relevant for
reporting disclosure, which identifies
the matters that impact our ability
to create or preserve value (financial
materiality) and our impact on the
environment, communities and society
(impact materiality) in the short, medium
and long term. The Bank’s process for
determining material topics, and their
alignment with reporting metrics is
outlined in the Material Matters section
on pages 53 to 56.

FINANCIAL REPORTING BOUNDARY

Covers the core business

operations of the Bank and its

subsidiaries

Business

model

Six

capitals

Strategy

OUR INTEGRATED REPORTING BOUNDARY

COVERS RISKS,
OPPORTUNITIES AND
OUTCOMES ARISING FROM:

Operating

context

Stakeholder

engagement

PRECAUTIONARY

PRINCIPLE

The Bank’s approach to mainstream
sustainability in its core business
operations has foundational
consideration for the precautionary
principle. The Bank’s efforts towards
sustainable financing, outlined on page
62, detailed actions were taken not only
to mitigate potential negative impacts
of operations, but also to proactively
address local and global challenges to
the environment and health and safety of
stakeholders.

COMBINED

ASSURANCE

We aim to ensure the integrity of
both our financial and non-financial
information through a combination
of monitoring and oversight by
management, internal audit and external
assurance providers. Through this
combined assurance model, we seek to
optimise the assurance obtained from

management, internal audit and external
assurance providers while fostering a
strong ethical context and mechanisms to
ensure compliance.

AUDIT COMMITTEE AND

INTERNAL AUDIT FUNCTIONS

NATIONAL AUDIT OFFICE

CORPORATE MANAGEMENT TEAM

Responsible for ensuring the

effectiveness of the Group’s financial

reporting processes and relevant

internal controls

External assurance on the Consolidated

Financial Statements

Accountable to the Board for

preparation of the Report

The Report has been prepared with
input from the leadership
team, cross-functional internal
information, and other relevant external
information. Sustainability information
published in the Report has been
externally assured by Messrs. KPMG.

FORWARD - LOOKING

STATEMENTS

Certain forward-looking
statements regarding the Group’s
future performance and prospects
may be included in this Report.

These statements cannot be
considered guarantees of future
performance or outcomes as
they may be influenced by
emerging risks, future events,
changing circumstances and other
important factors that cannot
be predicted and are out of the
Bank’s control. These events
may cause actual results to differ
from our current expectations as
disclosed in this Report.

There were no major restatements of
non-financial information published in the
previous year.

Sri Lanka Accounting Standards issued
by CA Sri Lanka

Listing Rules and ESG Reporting Framework of the
Colombo Stock Exchange (CSE)

Bank of Ceylon Ordinance No. 53 of 1938
and amendments

Banking Act No. 30 of 1988 and subsequent
amendments

Gender Parity Reporting Framework of
CA Sri Lanka

Code of Best Practice on Corporate
Governance issued by CA Sri Lanka (2023)

Securities and Exchange Commission of Sri Lanka
Act No. 36 of 1987 and amendments

Guidelines issued by CBSL and CSE listing requirements
on Financial Statements and other disclosures for Licensed
Commercial Banks

GLOBAL BEST PRACTICES

LOCAL STANDARDS AND FRAMEWORKS

The Integrated Reporting
framework of the
International Integrated
Reporting Council (IIRC)

The Global Reporting
Initiative Sustainability
Reporting Guidelines (GRI
Standards)

Global indicator framework
for the SDGs and targets
of the 2030 Agenda for
Sustainable Development
(A/RES/68/261)

Industry Standard for
Commercial Banks
published by the
Sustainability Accounting
Standards Board (SASB)

Annual
Report

2019

Annual
Report

2020

Annual
Report

2021

Annual
Report

2022

REPORTING

IMPROVEMENTS

Greater focus

on how the Bank

tailors its business

model and strategy

to respond to

its external

environment and

the risks and

opportunities

it faces

Greater connectivity

of information

Enhanced scope

and coverage of

non-financial

information

Improved

conciseness with

a more focus on

materiality

NAVIGATION ICONS

Stakeholders

Six Capitals

Strategic Pillars

Customers

Shareholder and

Fund Providers

Business

Partners

Community and

Environment

Employees

Regulators

Financial

Capital

Manufactured

Capital

Human

Capital

Social and

Relationship Capital

Intellectual

Capital

Natural

Capital

Excellence

in Customer

Experience

Digital

Excellence

Rewarding Credit

Culture and Healthy

Credit Portfolio

Building a

High-Performing

Team

Stability,

Governance

and Sustainable

Growth

Credit

risk

Market

risk

Liquidity

risk

Strategic

risk

Operational

Risk

Risk Categories

Feedback
Please direct suggestions and
comments about this Report to
dgmfp@boc.lk

OUR EVOLUTIONARY JOURNEY OF REPORTING

Our Annual Report 2023 themed 'A Force of Strength – A Beacon of Trust’ strives to draw inspiration from the enduring rays of
sunlight to the Bank’s role as a driving force in Sri Lanka’s economic revival. In 2023, the Bank stepped forward living up to its
ethos as the bankers to the nation by contributing holistic value to revitalise and revive economic activities.

As a responsible corporate entity, we have reduced the number of printed copies significantly to minimise our environmental
footprint and this report is available in tri-language in several digital forms for the reference of stakeholders.