NOTES TO THE FINANCIAL STATEMENTS

1

Reporting Entity

1.1 Corporate information

Bank of Ceylon (“The Bank”) is a 
Government-owned bank domiciled 
in Sri Lanka, duly incorporated on 1 
August 1939 under the Bank of Ceylon 
Ordinance No. 53 of 1938. It is a licensed 
commercial bank established under 
the Banking Act No. 30 of 1988 and 
amendments thereto. The Registered 
Office of the Bank is situated at “BoC 
Square”, No. 01, Bank of Ceylon 
Mawatha, Colombo 01, Sri Lanka. The 
debentures issued by the Bank are listed 
on the Colombo Stock Exchange. The 
staff strength of the Bank as at  
31 December 2023 was 8,579 (2022- 8,209).

1.2 Consolidated financial statements 

The Consolidated Financial Statements 
are prepared as at and for the year 
ended 31 December 2023 comprise 
the Bank (“Parent”), its Subsidiaries 
(together referred to as the “Group” 
and individually as (“Group Entities”) 
and the Group’s interests in its Associate 
companies. The Financial Statements 
of the companies in the Group have a 
common financial year which ends on 
31 December, except the Associate 
companies, Transnational Lanka Records 
Solutions (Private) Limited and Ceybank 
Asset Management Limited. The Bank is 
the ultimate parent of the Group.

1.3 Principal activities

 

1.3.1 Bank 

The principal activities of the Bank 
during the year were, personal banking, 
corporate banking, development 
banking, off-shore banking, trade 
financing, lease financing, primary 
dealing, investment banking and 
wealth management, treasury 
operations, correspondent banking and 
money remittances, Islamic banking, 
bancassurance, pawning, credit card 
facilities, foreign currency operations and 
other financial services.

1.3.2 Subsidiaries 

The principal activities of the Subsidiaries of the Bank are as follows:

Name of the Company

Principal Business Activities

Property Development Limited Own, maintain and manage, develop and sustain the 

utility and value of the Bank of Ceylon head office 
building.

Merchant Bank of  Sri Lanka & 
Finance PLC

Leasing, hire purchase, corporate and retail credit 
facilities, corporate advisory services, capital 
market operations, margin trading, microfinancing, 
agricultural credit facilities, real estate, pawning, 
Islamic finance and accepting deposits.

Bank of Ceylon (UK) Limited

Authorised commercial bank by the Prudential 
Regulation Authority and regulated by the Financial 
Conduct Authority in England and Wales, engages 
in retail and corporate banking, treasury operations, 
correspondent banking services and trade financing 
activities.

BoC Property Development & 
Management (Private) Limited

Renting of office space of BoC Merchant Tower in 
Colombo 03 and Ceybank House in Kandy.

BoC Travels (Private) Limited

Engages in travel related services.

Hotels Colombo (1963) Limited Provides hotel services.
Ceybank Holiday Homes 
(Private) Limited

Managing, operating and maintaining of travel rests/
hotels/rest houses/guest houses.

MBSL Insurance Company 
Limited

Carrying on insurance business, both life and non-life 
insurance.

BoC Management & Support 
Services (Private) Limited

Not in operation.

1.3.3 Associates

The principal activities of the Associates of the Bank are as follows:

Name of the Company

Principal Business Activities

Ceybank Asset Management 
Limited

Management of unit trust funds and other institutional 
and private portfolios.

Lanka Securities (Private) 
Limited

Registered stock broker, trading in equity and 
debt securities, equity debt security brokering and 
undertaking placement of equity and debt securities.

Transnational Lanka Records 
Solutions (Private) Limited

Renting buildings and hiring other assets.

Southern Development 
Financial Company Limited

Not in operation and in the process of liquidation.

BoC Management & Support Services (Private) Limited (MSS) has not carried out its 
core business activities since 2007. Southern Development Financial Company Limited 
(SDFCL) is also not in operations. The Board of Directors of SDFCL has decided to 
wind-up the company and it is in the process of liquidation.

2

Directors’ responsibility for

financial statements 

2.1 Preparation and presentation of 

the financial statements 

The Board of Directors is responsible 
for the preparation and presentation of 
the Financial Statements of the Bank 
and its Subsidiaries and Associates in 
compliance with the requirements of 
the Bank of Ceylon Ordinance No. 53 
of 1938 and its amendments, Banking 
Act No. 30 of 1988 and its amendments 
thereto and Sri Lanka Accounting 
Standards (SLFRSs and LKASs). These 
Financial Statements comprise. 

•  Statement of Profit or Loss
•  Statement of Comprehensive Income 
•  Statement of Financial Position 
•  Statement of Changes in Equity 
•  Statement of Cash Flows 
•  Notes to the Financial Statements

2.2 Approval of financial statements 

The Financial Statements for the 
year ended 31 December 2023 were 
authorised for issue on 27 February 2024 
by the Board of Directors.

3

Basis of preparation

3.1 Statement of compliance 

The Consolidated Financial Statements 
of the Group and the separate Financial 
Statements of the Bank have been 
prepared in accordance with Sri Lanka 
Accounting Standards comprising Sri 
Lanka Financial Reporting Standards 
(SLFRSs) and Sri Lanka Accounting 
Standards (LKASs) laid down by the 
Institute of Chartered Accountants of Sri 
Lanka (together referred to as SLFRSs in 
these Financial Statements). 

The preparation and presentation 
of these Financial Statements are in 
compliance with the requirements of 
the Bank of Ceylon Ordinance No. 53 of 
1938, the Banking Act No. 30 of 1988, 
the Companies Act No. 07 of 2007 and 

regulatory guidelines issued by the 
Central Bank of Sri Lanka (CBSL). The 
Group has prepared Financial Statements 
which comply with SLFRSs applicable 
for the year ended 31 December 2023, 
together with the comparative year data 
as at and for the year ended  
31 December 2022, as described in the 
accounting policies. 

The formats used in the preparation and 
presentation of the Financial Statements 
and the disclosures made therein also 
comply with the specified formats 
prescribed by the Central Bank of Sri 
Lanka (CBSL) in the Circular No. 02 of 
2019 on “Publication of Annual and 
Quarterly Financial Statements and Other 
Disclosures by Licensed Banks”.

3.2 Basis of measurement 

The Financial Statements have been 
prepared on the basis of historical cost 
convention and no adjustments have 
been made for inflationary factors which 
has been applied on a consistent basis, 
except for the following: 

•  Derivative financial instruments are 

measured at fair value (Notes 26  
and 41) 

•  Financial assets recognised through 

profit or loss – measured at fair value 
(Note 27) 

•  Financial assets measured at fair 

value through other comprehensive 
income (Note 30) 

•  Owner-occupied freehold land 

and buildings and buildings on 
leasehold lands are measured at 
revalued amount less any subsequent 
accumulated depreciation and 
impairment losses (Note 34) 

•  Defined benefit obligations are 

actuarially valued and recognised 
at the present value of the defined 
benefit obligation less total of the fair 
value of plan assets (Note 48) 

•  Cash flow hedge reserve, accounted 

as per the hedge accounting (Note 53)

3.3 Presentation of financial 

statements

 

Items in the Statement of Financial 
Position of the Bank and the Group 
are grouped by nature of such item 
and presented broadly in order of their 
relative liquidity and maturity pattern. An 
analysis regarding recovery or settlement 
within 12 months after the reporting 
date (current) and more than 12 months 
after the reporting date (non-current) 
is presented in Note 60 – “Maturity 
Analysis of Assets and Liabilities”.

3.3.1 Functional and presentation 

currency 

Items included in the Financial 
Statements are measured and presented 
in Sri Lankan Rupees (“LKR”) which is 
the functional currency of the primary 
economic environment in which the Bank 
operates.

3.3.2 Accrual basis of accounting 

The Financial Statements, except for 
information on Statement of Cash Flows 
have been prepared following the accrual 
basis of accounting. 

3.3.3 Offsetting 

Financial assets and financial liabilities are 
generally reported gross in the Statement 
of Financial Position. They are only offset 
and reported net when, in addition 
to having an unconditional legally 
enforceable right to offset the recognised 
amounts without being contingent on a 
future event, the parties also intend to 
settle on a net basis in all of the following 
circumstances: 

•  The normal course of business. 
•  The event of default. 
•  The event of insolvency or bankruptcy 

of the Bank/Group and/or its 
counterparties.

Income and expenses are not offset in 
the Statement of Profit or Loss unless 
required or permitted by any accounting 
standard or interpretation and as 

specifically disclosed in the accounting 
policies of the Group. 

3.3.4 Comparative information 

The comparative information is provided 
in narrative and descriptive nature, 
if it is relevant to understand the 
current period’s Financial Statements 
and reclassified wherever necessary 
to conform to the current year’s 
presentation.

3.3.5 Materiality and aggregation

In compliance with LKAS 1 – 
“Presentation of Financial Statements”, 
each material class of similar items are 
presented separately in the Financial 
Statements. Items of dissimilar nature or 
functions are presented separately unless 
they are immaterial. 

3.3.6 Rounding

The amounts in the Financial Statements 
have been rounded-off to the nearest 
Rupees thousands, except where otherwise 
indicated as permitted by the LKAS 1 – 
“Presentation of Financial Statements”.

 

3.3.7 Statement of cash flows

The Statement of Cash Flows is prepared 
by using the “Indirect Method” 
in accordance with the LKAS 7 – 
“Statement of Cash Flows” whereby the 
profit is adjusted to derive the cash flows 
from operating activities. Cash and cash 
equivalents comprise cash in hand, other 
short term highly liquid investments with 
maturity less than seven days from date 
of acquisition and bank overdrafts.

 

3.3.8 Use of material accounting 

judgements, estimates and 

assumptions 

The preparation of the Financial 
Statements requires Management to 
exercise judgements, estimates and 
assumptions that affect the application 
of accounting policies and the reported 
amounts of assets, liabilities, income 
and expenses. Actual results may differ 
from these estimates. The judgements, 

estimates and assumptions are based 
on historical experience and various 
other factors that are believed to be 
reasonable under the circumstances and 
reviewed on an ongoing basis. Revisions 
to accounting estimates are recognised 
in the period in which the estimates 
are revised and/or in future periods if 
the revision affects future periods too. 
In the process of applying the Group’s 
accounting policies, Management 
has made the following judgements, 
estimates and assumptions, which 
have the most significant effect on the 
amounts recognised in the Financial 
Statements. The accounting policies 
which are most sensitive to the use of 
judgements, estimates and assumptions 
are specified below.

3.3.8.1 Going concern 

The Management has made an 
assessment on the Group’s ability to 
continue as a going concern and is 
satisfied that it has the resources to 
continue in business for the foreseeable 
future. Furthermore, management is 
not aware of any material uncertainties 
that may cast significant doubt upon 
the Group’s ability to continue as a 
going concern. Therefore, the Financial 
Statements continue to be prepared on 
the going concern basis. Accordingly, 
the Management satisfied itself that the 
going concern basis is appropriate.

3.3.8.2 Commitment and contingent 

liabilities

All discernible risks are accounted for 
in determining the amount of all known 
and measurable liabilities. Contingent 
liabilities are possible obligations 
whose existence will be confirmed 
only by uncertain future events or 
present obligations where the transfer 
of economic benefit is not probable or 
cannot be reliably measured. Contingent 
liabilities are not recognised in the 
Statement of Financial Position but are 
disclosed unless its considered remote 
that the Group will be liable to settle the 
possible obligation. 

3.3.8.3 Fair value of financial  

instruments 

Fair value is the price that would 
be received to sell an asset or paid 
to transfer a liability in an orderly 
transaction between market participants 
at the measurement date. Where the 
classification of a financial asset or 
liability results in it being measured 
at fair value, wherever possible, the 
fair value is determined by reference 
to the quoted bid or offer price in 
the most advantageous active market 
to which the Group has immediate 
access. An adjustment for credit risk is 
also incorporated into the fair value as 
appropriate. Fair value for a net open 
position that is a financial liability quoted 
in an active market is the current offer 
price, and for a financial asset the bid 
price, multiplied by the number of units 
of the instrument held or issued. Where 
no active market exists for a particular 
asset or liability, the Group uses a 
valuation technique that include the 
use of mathematical models to arrive 
at the fair value, including the use of 
transaction prices obtained in recent 
arm’s length transactions, discounted 
cash flow analysis, option pricing models 
and other valuation techniques based 
on market conditions and risks existing 
at reporting date. In doing so, fair value 
is estimated using a valuation technique 
that makes maximum use of observable 
market inputs and places minimal 
reliance upon entity-specific inputs. 
The best evidence of the fair value of a 
financial instrument at initial recognition 
is the transaction price (i.e. the fair value 
of the consideration given or received) 
unless the fair value of that instrument 
is evidenced by comparison with other 
observable current market transactions 
in the same instrument (i.e. without 
modification or repackaging) or based 
on a valuation technique whose variables 
include only data from observable 
markets. When such evidence exists, the 
Group recognises the difference between 
the transaction price and the fair value 
in profit or loss on initial recognition 

(i.e. on day one). The valuations of 
financial instruments are described 
comprehensively in Note 63.

3.3.8.4 Impairment charge for loans 

and advances 

The measurement of impairment charge 
under SLFRS 9- “Financial Instruments” 
requires judgement by Management 
in identification and estimation of the 
amount and timing of future cash flows 
when determining an impairment charge 
for loans and advances. Accordingly, the 
Group reviews its individually significant 
loans and advances at each reporting 
date to assess whether an impairment 
charge should be provided in the 
Statement of Profit or Loss. In particular, 
the Management’s judgement is required 
in identification and estimation of the 
amount and timing of future cash flows 
when determining the impairment loss. 
In estimating these cash flows, the Group 
makes judgements about the borrower’s 
financial position, the net realisable 
value of collateral and other related 
factors. These estimates are based on 
assumptions about a number of factors 
and actual results may differ, resulting 
in future changes to the impairment 
allowance. A collective impairment 
provision is established for the groups of 
homogeneous loans and advances that 
are not considered individually significant 
and groups of loans that are individually 
significant but that were not found to 
be individually impaired. A collective 
assessment of impairment takes into 
account the data from loan portfolio 
(such as credit quality, levels of arrears, 
credit utilisation, etc.), concentrations 
of risk and economic data (including 
levels of unemployment, inflation, GDP 
growth rate and country rating) and 
the performance of different individual 
group. The impairment requirements in 
SLFRS 9 – “Financial Instruments” are 
based on an expected credit loss (ECL) 
model and it is reflected the general 
pattern of deterioration or improvement, 
in the credit quality of financial 
instruments. The Group calculates ECLs 

either on a collective or an individual 
basis. The amount of ECLs recognised as 
a loss allowance or provision depends on 
the extent of credit deterioration since 
initial recognition and measured under 
following bases:

•  12-month ECLs (Stage 1), which apply 

to all items as long as there is no 
significant deterioration in credit risk. 

•  Lifetime ECLs (Stages 2 and 3), which 

apply when a significant increase 
in credit risk has occurred on an 
individual or collective basis. 

Further, the Group makes additional 
judgements and estimates with regard to 
the following under ECL model. 

•  The Group’s criteria for assessing if 

there has been a significant increase 
in credit risk and so impairment for 
financial assets should be measured 
on a lifetime ECL basis. 

•  Development of ECL models, 

including various formula and the 
choice of inputs. 

•  Determination of association between 

macroeconomic inputs, such as 
GDP growth, inflation, interest rates, 
exchange rates and unemployment 
with the effect on probability of 
default (PDs), exposure at default 
(EAD) and loss given default (LGD). 

•  Selection of forward-looking 

macroeconomic scenarios and their 
probability weightings to derive the 
economic inputs into the ECL model. 

The economic scenarios and forward-
looking macroeconomic assumptions 
underpinning the collective provision 
calculation are outlined in Note 4.4.11. 

As per SLFRS 9 – “Financial Instruments”, 
the collective provision for groups of 
homogeneous loans is established 
using statistical methods or, a formula 
approach based on historical loss rate 
experience, using the statistical analysis 
of historical data on delinquency 
to estimate the amount of loss. 
Management applies judgement to 

ensure that the estimate of loss arrived 
at, on the basis of historical information 
is appropriately adjusted to reflect the 
economic conditions and portfolio factors 
as at the reporting date. The loss rates 
are regularly reviewed against, actual 
loss experience. It has been the Group’s 
policy to regularly review its model in 
the context of actual loss experience 
and adjust when necessary. The accuracy 
of the provision depends on the model 
assumptions and parameters used in 
determining the impairment. Details of 
impairment losses on loans and advances 
are given in Note 14.

3.3.8.5 Impairment of investment in 

subsidiaries, other financial assets 

and non-financial assets

 

The Group and the Bank follow the 
guidance of LKAS 36 – “Impairment 
of Assets” and SLFRS 9 – “Financial 
Instruments” in determining whether 
an investment or a financial asset 
is impaired. Determination and 
identification of impairment indicators 
require the Group and the Bank to 
evaluate duration and extent to which 
the fair value of an investment for a 
financial asset is less than its cost and 
the financial stability of the near term 
business outlook of the investment or the 
financial asset, considering the factors 
such as performance of the sector and 
industry, technology and operational 
environmental changes along with future 
cash flows. This process involves with 
material judgement in aforesaid areas.

 

3.3.8.6 Defined benefit obligation

 

The cost of the defined benefit pension 
plans and other post- employment 
benefit plans are determined using an 
actuarial valuation. An actuarial valuation 
involves making various assumptions 
determining the discount rates, expected 
rates of return on planned assets, future 
salary increases, mortality rates and future 
pension increases. Due to the long-term 
nature of these plans, such estimates 
are subject to significant uncertainty. In 
determining the appropriate discount 

rate, the Group considers the interest 
rates of Sri Lanka Government Bonds 
with maturities corresponding to the 
expected duration of the Defined Benefit 
Obligation. The mortality rate is based 
on publicly available mortality tables. 
Future salary increases and pension 
increases are based on inflation rate 
and salary increase rates of the Group. 
All assumptions are reviewed at each 
reporting date and assumptions used in 
the year are given in Note 48.

3.3.8.7 Fair value of land and  

buildings 

The freehold land and buildings and 
the buildings on leasehold land of 
the Group are reflected at fair value 
less accumulated depreciation. The 
Group engaged independent valuation 
specialists to determine fair value of such 
properties in terms of the SLFRS 13 – 
“Fair Value Measurement”. The details of 
valuation of freehold land and buildings 
and the buildings on leasehold land are 
given in Note 34. 

3.3.8.8 Useful life of the property, 

plant and equipment and intangible 

assets 

The Group reviews the residual values, 
useful lives and methods of depreciation 
of property, plant and equipment and 
intangible assets at each reporting 
date. Judgement of the Management 
is exercised in the estimation of these 
values, rates, methods and hence they 
are subject to uncertainty. The details 
of the depreciation methods and rates 
used for each assets category are given 
in Note 34. 

3.3.8.9 Classification of investment 

properties 

Management is required to use its 
judgement to determine whether a 
property qualified as an investment 
property. A property that is held to earn 
rentals or for capital appreciation or 
both and which generates cash flows 
largely independently of the other 
assets held by the Group are accounted 

for as investment properties. On the 
other hand, properties that are used for 
operations or for the process of providing 
services or for administration purposes 
and which do not directly generate 
cash flows as stand- alone assets are 
accounted as property, plant and 
equipment.

3.3.8.10 Determination of control 

over investees

 

Subsidiaries are entities that are 
controlled by the Bank, control is 
achieved when the Bank is exposed, 
or has rights to variable returns from 
its involvement with the invitee and 
has the ability to affect the returns of 
those investees through its power over 
the investee. The Management applies 
its judgements to determine the Bank 
controls over its investees. 

3.3.8.11 Taxation

The Group is subject to income tax, value 
added tax (VAT) and other applicable 
taxes. A judgement is required to 
determine the total provision for current, 
deferred and other taxes due to the 
uncertainties that exists with respect 
to the interpretation of the applicable 
tax laws at the time of preparing these 
Financial Statements. The details on 
the applicable tax rates and other 
information are given under Notes 
4.8, 18, and 37. The Group is subject 
to transfer pricing regulations and it 
is necessitated using management 
judgement to determine the impact of 
transfer pricing regulations. Accordingly, 
critical judgements and estimates were 
used in applying the regulations in 
aspects including but not limited to 
identifying associated undertakings, 
estimation of the respective arm’s length 
prices and selection of appropriate 
pricing mechanism. The current tax 
charge is subject to such judgements. 
Differences between estimated income 
tax charge and actual payable may 
arise as a result of variances between 
Management’s interpretation and 
application of tax regulation.

4

Material accounting 

policies

The material accounting policies applied 
by the Bank and the Group in preparation 
of its Financial Statements are included 
below and have been consistently 
applied to all periods presented in the 
Financial Statements of the Group and 
the Bank, unless otherwise indicated. 

4.1 Basis of consolidation 

The Group’s Financial Statements 
comprise consolidation of the Financial 
Statements of the Bank and its 
Subsidiaries in terms of SLFRS 10 – 
“Consolidated Financial Statements” 
and LKAS 27 – “Consolidated and 
Separate Financial Statements” and the 
proportionate share of the profit or loss 
and net assets of its Associates in terms 
of the Sri Lanka Accounting Standard 
LKAS 28 – “Investments in Associates 
and Joint Ventures”. The Bank’s Financial 
Statements comprise the amalgamation of 
the Financial Statements of the Domestic 
Banking Unit, the Off-shore Banking Unit 
and the Overseas Operations of the Bank. 
The detailed accounting policies pertaining 
to the consolidation of subsidiaries and 
associates are given in the Notes 31 and 
32. 

4.1.1 Business combinations 

The Group determines whether a 
transaction or other event is a business 
combination by applying the definition 
in SLFRS 3 – “Business Combinations”, 
which requires that the assets acquired 
and liabilities assumed constitute a 
business. Business combinations are 
accounted for using the acquisition 
method. As of the acquisition date, the 
amount of non-controlling interest is 
measured either at fair value or at the 
non-controlling interests’ proportionate 
share of the acquirer’s identifiable net 
assets. Acquisition related cost are 
costs the acquirer incurs to effect a 
business combination. Those costs 
include finder’s fees, advisory, legal, 
accounting, valuation, other professional 

consulting fees, general administrative 
costs including the cost of maintaining 
an Internal Acquisition Department and 
cost of registering and issuing debt and 
equity securities. Acquisition related 
costs, other than those associated with 
the issue of debt or equity securities 
are expensed in the periods in which 
the costs are incurred and the services 
are received. The Group elects on a 
transaction by transaction basis whether 
to measure non-controlling interests 
at its fair value or at its proportionate 
share of the recognised amount of the 
identifiable net assets, at the acquisition 
date. Transaction costs, other than those 
associated with the issue of debt or 
equity securities that the Group incurs in 
connection with a business combination 
are expensed as incurred.

4.1.2 Loss of control 

When the Group loses control over a 
subsidiary, it derecognises the assets 
and liabilities of the subsidiary, and any 
related non-controlling interest (NCI) 
and other components of equity. Any 
resulting gain or loss is recognised in 
profit or loss. Any interest retained in 
the former subsidiary is measured at fair 
value when control is lost. Further, the 
Bank’s share of components previously 
recognised in Other Comprehensive 
Income (OCI) is reclassified to profit or 
loss or retained earnings as appropriate. 
Any surplus or deficit arising on the loss 
of control is recognised in the profit or 
loss. If the Group retains any interest 
in the previous subsidiary, then such 
interest is measured at fair value at the 
date that control is lost. Subsequently, it 
is accounted for as an equity-accounted 
investee or in accordance with the 
Group’s accounting policy for financial 
instruments depending on the level of 
influence retained.

4.2 Foreign currency translations

 

4.2.1 Foreign currency transactions 

and balances 

At the initial recognition, transactions 
in foreign currency are translated 

into the functional currency of the 
operation which is Sri Lankan Rupees 
(LKR) at the spot exchange rate at 
the date of the transaction. Monetary 
assets and liabilities denominated in 
foreign currency at the reporting date 
are retranslated into the functional 
currency at the spot exchange rate at 
that date and all differences arising 
on non-trading activities are taken to 
“Net other operating income” (Note 
13) in the Statement of Profit or Loss. 
Non-monetary assets and liabilities 
that are measured in terms of historical 
cost in a foreign currency are translated 
using the exchange rate at the date of 
the initial recognition. Non-monetary 
assets and liabilities denominated in 
foreign currency that are measured 
at fair value are retranslated into the 
functional currency at the spot exchange 
rate including any exchange gain or 
loss component at the date on which 
the fair value is determined. Gain or 
loss on a non-monetary item including 
exchange component is recognised 
in Other Comprehensive Income. 
Forward exchange contracts are valued 
at the forward market rates ruling on 
the reporting date and resulting net 
unrealised gains or losses are dealt within 
the Statement of Profit or Loss.

4.2.2 Foreign operations 

The results and financial position of 
foreign operations, whose functional 
currencies are not Sri Lankan Rupees, 
are translated into Sri Lankan Rupees as 
follows: 

The assets and liabilities of foreign 
operations are translated into Sri Lankan 
Rupees at spot exchange rate as at the 
reporting date. 

The income and expenses of foreign 
operations are translated at average 
rate for the period. Foreign currency 
differences on the translation of foreign 
operations are recognised in Other 
Comprehensive Income. 

When a foreign operation is disposed 
off, the relevant amount in the translation 
reserve is transferred to the profit or loss 
as part of the profit or loss on disposal 
in other operating income or other 
operating expenses.

4.2.3 Hedge accounting 

The Bank enters into hedging 
arrangements with the counterparties in 
order to mitigate the foreign exchange 
risk from foreign currency transactions. 
According to the SLFRS 9 - "Financial 
Instrument", an entity may designate an 
item in its entirety or a component of an 
item as the hedged item in a hedging 
relationship. A hedging relationship 
qualifies for hedge accounting only if 
the hedging relationship consists only of 
eligible hedging instruments and eligible 
hedged items. 

At the inception of the hedging 
relationship there is formal designation 
and documentation of the hedging 
relationship and the entity’s risk 
management objective and strategy 
for undertaking the hedge. That 
documentation shall include 
identification of the hedging instrument, 
the hedged item, the nature of the risk 
being hedged and how the entity will 
assess whether the hedging relationship 
meets the hedge effectiveness 
requirements, including its analysis of 
the sources of hedge ineffectiveness and 
how it determines the hedge ratio. 

SLFRS 9 – “Financial Instruments” 
enables hedge accounting for three 
different designated categories, namely 
cash flow hedge (designated for a highly 
probable forecasted transaction, a 
firm commitment (not recorded on the 
balance sheet), foreign currency cash 
flows of a recognised asset or liability, or 
a forecasted intercompany transaction). 
Fair value hedge (designated for a firm 
commitment (not recorded) or foreign 
currency cash flows of a recognised 
asset or liability). Net investment hedge 
(designated for the net investment in a 

foreign operation). The Bank accounts 
the similar transactions, under hedge 
accounting treatment specified in the 
SLFRS 9 – “Financial Instruments” and 
were valued using forward exchange 
rates as of each reporting date of such 
instruments.

4.3 Classification of financial 

instruments between debt and 

equity 

Classification of financial instruments 
between debt and equity depends 
on following characteristics of such 
instruments:

 

•  Name or labels given to the 

instruments 

•  Presence or absence of a fixed 

maturity date 

•  Life of the instrument 
•  Source of payments 
•  Right to enforce payments 
•  Rights to participate in Management 
•  Risk involved in the instruments 
•  Volatility of cash flows 
•  Securities given as collaterals 

4.4 Financial assets and financial 

liabilities 

4.4.1 Recognition and derecognition 

of financial instruments 

All financial assets and liabilities are 
initially recognised on the settlement 
date, i.e. the date that the Group 
becomes a party to the contractual 
provisions of the instrument. This 
includes; “regular way trades”. Regular 
way trade means purchases or sales of 
financial assets that require delivery of 
assets within the time frame generally 
established by regulation or convention 
in the market place. Loans and 
receivables are recognised when cash is 
advanced (or settled) to the borrowers. 
Financial assets at fair value through 
profit or loss are recognised initially at 
fair value. All other financial assets are 
recognised initially at fair value plus 
directly attributable transaction costs. 

The Group derecognises a financial asset 
when the contractual cash flows from 
the asset expire or it transfers its rights 
to receive contractual cash flows on the 
financial asset in a transaction in which 
substantially all the risks and rewards of 
ownership are transferred. Any interest in 
transferred financial assets that is created 
or retained by the Group is recognised as 
a separate asset or liability. 

A financial liability is derecognised 
when the obligation under the liability 
is discharged or cancelled or expired. 
Where an existing financial liability is 
replaced by another from the same 

lender on substantially different terms, 
or the terms of an existing liability 
are substantially modified, such an 
exchange or modification is treated as 
a derecognition of the original liability 
and the recognition of a new liability. The 
difference between the carrying value 
of the original financial liability and the 
consideration paid is recognised in the 
Statement of Profit or Loss.

Solely Payments of Principle  

and Interest (SPPI)?

Fair value option elected?

Derivative Instrument

Debt Instrument

Held for trading

Elected the 

irrecoverable 

option of OCI?

Amortised cost

Fair value through other 

comprehensive income

Equity instrument

Yes

Yes

Yes

Yes

No

No

No

No

Fair value through profit or loss

Held for

Trading

Held to

collect cash

flows and

for sale

Held to

collect

cash flow

4.4.2 Classification of financial assets and financial liabilities 

As per SLFRS 9 – “Financial Instruments”, the classification depends on the Group’s 
business model for managing financial assets and the contractual terms of the financial 
assets’ cash flows. The following diagram depicts how the Bank classifies the financial 
assets.

4.4.2.1 At the inception, the financial 

assets are classified in one of the 

following categories

•  Financial assets measured at fair 

value through profit or loss (Notes 
4.4.7 and 27) 

•  Financial assets at amortised cost
 

–  Financial assets at amortised cost 

– loans and advances (Note 28) 

 

–  Financial assets at amortised 

cost - debt and other instruments 
(Notes 4.4.8 and 29) 

•  Financial assets measured at fair 

value through other comprehensive 
income (Notes 4.4.9 and 30). 

4.4.2.2 At the inception, the financial 

liabilities are classified in one of the 

following categories

•  Financial liabilities at amortised cost 

 

–  Financial liabilities at amortised 

cost – due to depositors (Note 42)

 

–  Financial liabilities at amortised 

cost – other borrowings and 
subordinated liabilities (Notes 43 
and 49)

 

4.4.3 Initial measurements of financial 

instruments 

Financial assets and liabilities are 
initially measured at their fair value 
plus transaction cost, except in the 
case of financial assets and liabilities 
recorded at fair value through profit 
or loss. Transaction cost in relation to 
financial assets and liabilities at fair value 
through profit or loss are dealt with in the 
Statement of Profit or Loss.

4.4.4 “Day One” profit or loss 

When the transaction price differs 
from the fair value of other observable 
current market transactions in the same 
instrument or based on a valuation 
technique whose variables include only 
data from observable markets, the Group 
immediately recognises the difference 
between the transaction price and fair 
value (a “Day One” profit or loss) in the 

Statement of Profit or Loss. In cases 
where fair value is determined using data 
which is not observable, the difference 
between the transaction price and model 
value is only recognised in the Statement 
of Profit or Loss over the life of the 
instrument. 

4.4.5 Business model assessment

With effect from 1 January 2018, as per 
SLFRS 9 – “Financial Instrument”, the 
Group classifies all of its financial assets 
based on the business model and makes 
an assessment of the objective of a 
business model in which an asset is held 
at a portfolio level and not assessed on 
instrument by – instrument basis because 
this best reflects the way the business is 
managed and information is provided 
to management. The information 
considered includes:

 

•  The stated policies and objectives 

for the portfolio and the operation 
of those policies in practice. In 
particular, whether Management’s 
strategy focuses on earning 
contractual interest revenue, 
maintaining a particular interest rate 
profile, matching the duration of the 
financial assets to the duration of 
the liabilities that are funding those 
assets or realising cash flows through 
the sale of the assets;

•  How the performance of the portfolio 

is evaluated and reported to the 
Bank’s management; 

•  The risks that affect the performance 

of the business model (and the 
financial assets held within that 
business model) and how those risks 
are managed; 

•  How managers of the business 

are compensated – e.g. whether 
compensation is based on the fair 
value of the assets managed or the 
contractual cash flows collected; and  

•  The frequency, volume and timing 

of sales in prior periods, the reasons 
for such sales and its expectations 

about future sales activity. However, 
information about sales activity is not 
considered in isolation, but as part 
of an overall assessment of how the 
Bank’s stated objective for managing 
the financial assets is achieved and 
how cash flows are realised. 

The business model assessment is 
based on reasonably expected scenarios 
without taking “worst case” or “stress 
case” scenarios into account. If cash 
flows after initial recognition are realised 
in a way that is different from the Bank’s 
original expectations, the Bank does not 
change the classification of the remaining 
financial assets held in that business 
model, but incorporates such information 
when assessing newly originated or newly 
purchased financial assets going forward. 

4.4.6 Assessment of whether  

contractual cash flow characteristics 

are met the Solely Payments of Prin-

cipal and Interest (SPPI test) 

As a second step of assets classification 
process, the Group assesses the 
contractual terms of financial assets to 
identify whether they meet the SPPI test.

For the purposes of this assessment, 
“principal” is defined as the fair value of 
the financial asset on initial recognition 
and may change over the life of the 
financial asset (for example, if there are 
repayments of principal or amortisation 
of the premium/discount).

“Interest” is defined as consideration 
for the time value of money and for the 
credit risk associated with the principal 
amount outstanding during a particular 
period of time and for other basic 
lending risks and costs, as well as profit 
margin.

In contrast, contractual terms that 
introduce a more than de minimise 
exposure to risks or volatility in the 
contractual cash flows that are unrelated 
to a basic lending arrangement do 
not give rise to contractual cash flows 

that are solely payments of principal 
and interest on the principal amount 
outstanding. In such cases, the financial 
asset is required to be measured at fair 
value through profit and loss. 

In assessing whether the contractual cash 
flows are solely payments of principal 
and interest on principal amount 
outstanding, the Group considers the 
contractual terms of the instrument. This 
includes assessing whether the financial 
asset contains a contractual term that 
could change the timing or amount of 
contractual cash flows such that it would 
not meet this condition. In making the 
assessment, the Group considers:

 

•  Contingent events that would change 

the amount and timing of cash flows

•  Leverage features; 
•  Prepayment and extension terms; 
•  Terms that limit the Group’s claim to 

cash flows from specified assets; and 

•  Features that modify consideration of 

the time value of money

4.4.7 Financial assets measured at 

fair value through profit or loss 

Items at fair value through profit or loss 
comprise: 
•  Items held for trading purpose; 
•  Items specifically designated as fair 

value through profit or loss on initial 
recognition; and

•  Debt instruments with contractual 

terms that do not represent solely 
payments of principal and interest. 

Financial instruments held at fair 
value through profit or loss are initially 
recognised at fair value, with transaction 
costs recognised in the Statement of 
Profit or Loss as incurred. Subsequently, 
they are measured at fair value and any 
gains or losses are recognised in the 
Statement of Profit or Loss as they arise. 
Where a financial asset is measured at 
fair value, a credit valuation adjustment is 
included to reflect the credit worthiness 

of the counterparty, representing the 
movement in fair value attributable to 
changes in credit risk. 

4.4.7.1 Financial instruments held for 

trading purpose

 

A financial instrument is classified as 
held for trading if it is acquired or 
incurred principally for the purpose of 
selling or repurchasing in the near term, 
or forms part of a portfolio of financial 
instruments that are managed together 
and for which there is evidence of short-
term profit taking, or it is a derivative 
not in a qualifying hedge relationship. 
Trading derivatives and trading securities 
are classified as held for trading and 
recognised at fair value in the Statement 
of Financial Position. Changes in fair 
value are recognised in “Net gains/
(losses) from trading” (Note 10) and “Net 
fair value gains/(losses) from financial 
instruments at fair value through profit 
or loss” (Note 11). Interest income from 
financial instruments held for trading is 
recorded under “Net interest income” 
(Note 8) while dividend income is 
recorded in “Net gains/(losses) from 
trading” (Note 10) when the right to 
payment has been established. 

4.4.7.2 Financial instruments 

designated and measured at fair 

value through profit or loss

 

Upon initial recognition, financial 
instruments may be designated and 
measured at fair value through profit 
or loss. A financial asset may only be 
designated at fair value through profit or 
loss if doing so eliminates or significantly 
reduces measurement or recognition 
inconsistencies (i.e. eliminates an 
accounting mismatch) that would 
otherwise arise from measuring financial 
assets or liabilities on a different basis. 
A financial liability may be designated 
at fair value through profit or loss if it 
eliminates or significantly reduces an 
accounting mismatch or: 

•  If a host contract contains one or 

more embedded derivatives; or 

•  If financial assets and liabilities are 

both managed and their performance 
evaluated on a fair value basis in 
accordance with a documented 
risk management or investment 
strategy. Where a financial liability is 
designated at fair value through profit 
or loss, the movement in fair value 
attributable to changes in the Group’s 
own credit quality is calculated by 
determining the changes in credit 
spreads above observable market 
interest rates and is presented 
separately in other comprehensive 
income. As of 31 December 2023, 
there were no any financial liability 
designated at fair value through profit 
or loss.

4.4.7.3 Debt instruments with 

contractual terms that do not 

represent the solely payments of 

principal and interest

Financial debt instruments which are not 
meet solely payments of principal and 
interest test will be classified as fair value 
through profit or loss.

4.4.8 Financial assets measured at 

amortised cost-debt instruments

Investments in debt instruments are 
measured at amortised cost where they 
have: 

•  Contractual terms that give rise to 

cash flows on specified dates, that 
represent solely payments of principal 
and interest on the principal amount 
outstanding; and 

•  Are held within a business model 

whose objective is achieved by 
holding to collect contractual cash 
flows. 

These debt instruments are initially 
recognised at fair value plus directly 
attributable transaction costs and 
subsequently measured at amortised 
cost using effective interest rate (EIR). 
The measurement of credit impairment is 
based on the three stage expected credit 
loss model described below in Note 
4.4.11 Impairment of financial assets.

4.4.9 Financial assets measured at fair 

value through other comprehensive 

income

4.4.9.1 Debt instruments 

Investments in debt instruments are 
measured at fair value through other 
comprehensive income where they have: 
•  Contractual terms that give rise to 

cash flows on specified dates, that 
represent solely payments of principal 
and interest on the principal amount 
outstanding; and 

•  Are held within a business model 

whose objective is achieved by both 
collecting contractual cash flows and 
selling financial assets. 

These debt instruments are initially 
recognised at fair value plus directly 
attributable transaction costs and 
subsequently measured at fair value. 
Gains and losses arising from changes 
in fair value are included in Other 
Comprehensive Income within a separate 
component of equity. Impairment losses 
or reversals, interest revenue and foreign 
exchange gains and losses are recognised 

in profit or loss. Upon disposal, the 
cumulative gain or loss previously 
recognised in other comprehensive 
income is reclassified from other 
comprehensive income to profit or loss. 

The measurement of credit impairment is 
based on the three stage expected credit 
loss model as applied to financial assets at 
amortised cost. The expected credit loss 
model is described below in Note 4.4.11 
Impairment of financial assets.

4.4.9.2 Equity instruments

Investment in equity instruments that are 
neither held for trading nor contingent 
consideration recognised by the Group in 
a business combination to which SLFRS 
3 – “Business Combinations” applies, 
are measured at fair value through 
other comprehensive income, where 
an irrevocable election has been made 
by management. For portfolios where 
management does not consider an 
irrevocable election of adopting fair value 
through other comprehensive income, by 
default such investments shall be measured 
at fair value through profit or loss.

Upon derecognition, the cumulative 
gain or loss recognised in Other 
Comprehensive Income are not 
transferred to profit or loss. However, 
cumulative gain or loss recognised full 
derecognition will be transferred from 
Other Comprehensive Income reserve 
to retained earnings within the equity. 
Dividends on such investments are 
recognised in “Net other operating 
income” (Note 13) in the profit or loss.

 

4.4.10 Reclassification of financial 

assets 

The Group reclassifies its financial 
assets when, and only when, the Group 
changes its business model for managing 
financial assets. If the Group reclassifies 
financial assets which were measured at 
amortised cost, fair value through other 
comprehensive income or fair value 
through profit or loss, the Group applies 
the reclassification prospectively from the 
reclassification date. The Group does not 
restate any previously recognised gains, 
losses (including impairment losses) or 
interest.

Initial Measurement

Measurement after 

reclassification

Treatment on reclassification

Fair value through profit 

or loss

Amortised cost

Fair value at the reclassification date becomes its new gross carrying amount. The 

effective interest rate is calculated on the basis of that amount. For the purpose of 

applying the impairment requirements, the reclassification date is treated as the date 

of initial application.

Fair value through profit 

or loss

Fair value through other 

comprehensive income

The fair value of the financial asset at the reclassification date becomes its new 

carrying amount and the effective interest rate is determined on the basis of the fair 

value of the asset at the reclassification date.

Fair value through other 

comprehensive

Amortised cost

The cumulative gain or loss previously recognised in Other Comprehensive Income is 

removed from equity and adjusted against the fair value of the financial asset at the 

reclassification date. The effective interest rate and the measurement of expected 

credit losses are not adjusted as a result of the reclassification.

Fair value through other 

comprehensive income

Fair value through profit 

or loss

The fair value of the financial asset at the reclassification date becomes its new 

carrying amount. The cumulative gain or loss previously recognised in Other 

Comprehensive Income is reclassified from equity to profit or loss as a reclassification 

adjustment at the reclassification date.

Amortised cost

Fair value through profit 

or loss

Any gain or loss arising from a difference between the previous amortised cost of the 

financial asset and fair value at the reclassification date is recognised in profit or loss.

Amortised cost

Fair value through other 

comprehensive income

Any gain or loss arising from a difference between the previous amortised cost 

of the financial asset and fair value at the reclassification date is recognised in 

Other Comprehensive Income. The effective interest rate and the measurement of 

expected credit losses are not adjusted as a result of the reclassification.

The table below summaries the treatment of gains and losses on reclassification:

4.4.10.1 Upgrading of financial  

instruments

According to the CBSL Direction No. 
14 of 2021, the Bank can upgrade 
Financial Instruments from a higher stage 
in accordance with a policy approved 
by the Board of Directors. Therefore, 
the Bank will upgrade the Financial 
Instruments to a higher stage with the 
consent of the Chief Risk Officer with the 
proper rational for such upgrade.

4.4.11 Impairment of financial assets 

The Group applies a three-stage 
approach in measuring expected credit 
loss (ECL) for the following categories of 
financial assets that are not measured at 
fair value through profit or loss:

•  Debt instruments measured at 

amortised cost and fair value through 
other comprehensive income; 

•  Loan commitments and 
    Financial guarantee contracts. 

No ECL is recognised on equity 
investments. 

The Group performs an assessment at 
the end of each reporting period, of 
whether a financial instrument’s credit 
risk has increased significantly since initial 
recognition, by considering the change 
in the risk of default occurring over the 
remaining life of the financial instrument. 
Based on this process financial assets 
migrate through the following three 
stages based on the change in credit risk 
since initial recognition.

4.4.11.1 Stage 1: 12 months ECL

 

For exposures where there has not 
been a significant increase in credit risk 
since initial recognition and that are not 
credit impaired upon origination, the 
portion of the lifetime ECL associated 
with the probability of default events 
occurring within the next 12 months is 
recognised. The Bank determines 12 
months ECL from customers whom are 
not significantly credit deteriorated. 

4.4.11.2 Stage 2: Lifetime ECL

 

For exposures where there has been a 
significant increase in credit risk since 
initial recognition but are not credit 
impaired, a lifetime ECL (i.e. reflecting 
the remaining lifetime of the financial 
asset) is recognised.

4.4.11.3 Stage 3: Lifetime ECL

 

Exposures are assessed as credit 
impaired when one or more events 
that have a detrimental impact on the 
estimated future cash flows of that asset 
have occurred. For exposures that have 
become credit impaired, a lifetime ECL 
is recognised and interest revenue is 
calculated by applying the effective 
interest rate to the amortised cost (net of 
provision) rather than the gross carrying 
amount.

4.4.11.4 Calculation of ECL 

The Group calculates ECL based on a 
three probability weighted scenarios to 
measure the expected cash shortfalls, 
discounted at an approximation to 
the effective interest rate (EIR). A cash 
shortfall is the difference between the 
cash flows that are due to an entity 
in accordance with the contract and 
the cash flows that the entity expects 
to receive. The mechanics of the ECL 
calculations of the Group are outlined 
below and the key elements are, as 
follows: 

Probability of default (PD) 

PD is an estimate of the likelihood of 
default over a given time horizon. A 
default may only happen at a certain time 
over the assessed period, if the facility 
has not been previously recognised and 
is still in the portfolio. The concept of 
PDs is further explained in Note 28. 

Exposure at default (EAD) 

EAD is an estimate of the exposure at a 
future default date, taking into account 
expected changes in the exposure after 
the reporting date, including repayments 
of principal and interest, whether 

scheduled by contract or otherwise, 
expected drawdowns on committed 
facilities, and accrued interest from 
missed payments. The EAD is further 
explained in Note 28.

Loss given default (LGD)

LGD is an estimate of the loss arising 
in the case where a default occurs at a 
given time. It is based on the difference 
between the contractual cash flows due 
and those that the lender would expect 
to receive, including from the realisation 
of any collateral. It is usually expressed 
as a percentage of the EAD. The LGD is 
further explained in Note 28.

4.4.11.5 Determining the stage for 

impairment

At each reporting date, the Group 
assesses whether there has been a 
significant increase in credit risk for 
exposures since initial recognition by 
comparing the risk of default occurring 
over the expected life between the 
reporting date and the date of initial 
recognition. The Group considers 
reasonable and supportable information 
that is relevant and available without 
undue cost or effort for this purpose. 
This includes quantitative and qualitative 
information and also, forward-looking 
analysis. 

An exposure will migrate through the 
ECL stages as asset quality deteriorates. 
If, in a subsequent period, asset 
quality improves and also reverses any 
previously assessed significant increase 
in credit risk since origination, then the 
provision for doubtful debts reverts 
from lifetime ECL to 12 months ECL. 
Exposures that have not deteriorated 
significantly since origination, or where 
the deterioration remains within the 
Group’s investment grade criteria, or 
which are less than 30 days past due, are 
considered to have a low credit risk. The 
impairment provision for these financial 
assets is based on a 12 months ECL. 

The Group assesses whether the credit 
risk on an exposure has increased 
significantly on an individual or collective 
basis. For the purposes of a collective 
evaluation of impairment, financial 
instruments are grouped on the basis of 
shared credit risk characteristics, taking 
into account of instrument type, credit 
risk ratings, collateral type, date of initial 
recognition, remaining term to maturity, 
industry, geographical location of the 
borrower and other relevant factors.

4.4.11.6 Impairment calculation for 

loans and advances

The Bank uses rebuttable presumption 
in calculating the impairment for loans 
and advances which is permitted under 
SLFRS 9 – “Financial Instruments”. The 
loan portfolio is classified into three 
stages based on the past due days as 
follows and the level of applicability 

STAGE

Performing

Under performing

Non-performing

STAGE

Origination

30 Days DPD

60 Days DPD

180 Days

270 Days

360 Days

NPCF

(more than 90 days)

Special mention

Substandard

Doubtful

Loss

STAGE

1

3

2

of 12 months ECL and lifetime ECL 
depends on the stages. The value and 
type of security obtained against the 
credit facilities are not considered when 
determining the classification status 
of a credit facility. In cases where a 
borrower has several current accounts 
with overdraft limits with the Bank, the 
aggregate sanctioned limit and the daily 
outstanding aggregate balance on all 
such accounts shall be considered for the 
purposes of classification of overdrafts.

4.4.11.6.1 Performing credit facilities

 

(a)  All the credit facilities classified as 

Stage 1 under SLFRS 9 – “Financial 
Instruments” and    

(b)  All credit facilities identified as 

significant increase in credit risk 
facilities and classified as Stage 
2 under SLFRS 9 – “Financial 

Instruments” (Under-performing 
credit facilities)

4.4.11.6.2 Non-performing credit 

facilities (NPCF)

Non-performing credit facilities (NPCF) 
shall mean all credit facilities where; 

(a)  Contractual payments of a customer 

are past due for more than 90 days 
(the number of days past due shall 
be calculated starting from the 
contractual due date of the payment).

(b)  Sanctioned limit has remained in 

excess for more than 90 days.  

(c)  Any other credit facilities classified as 

Stage 3 as per SLFRS 9 – “Financial 
Instruments” (facilities classified as 
NPCF based on potential risk and 
impaired assets at origination).

Performing

Non-performing credit facilities (NPCF)

Stage 01

Stage 02

Stage 03

•   30 days or less than 30 days 

past due

•   31 to 89 days past due

•   90 days or more than 90 days past due

•   All credit facilities, which are 

not categorised under Stages 

2 or 3

•   All restructured loans, which are 

restructured up to two times, other than 

credit facilities upgraded and under 

the satisfactory performing period of a 

minimum 90 days from the due date of 

the 1st capital and/ or interest instalment 

post-restructure.

•   Under-performing credit facilities/ 

exposures as significant credit 

deterioration identified based on the 

deterioration factors given under the 

Note 28 – “Financial assets at amortised 

cost - Loans and advances”.

•  All restructured loans, which are restructured more than 

twice, other than credit facilities/exposures upgraded 

and under the satisfactory performing period of a  

minimum 90 days from the due date of the 1st capital 

and/or interest installment post-restructure.

•   All rescheduled loans, other than credit  

facilities/exposures.

•   All credit facilities/customers classified as  

non-performing as per CBSL Directions.

•   Customers identified with significant credit  

deterioration as per the deterioration factors given 

under Note 28 – “Financial assets at amortised  

cost - Loans and advances”.

For the above classification purpose, facility is considered as restructured facility if original repayment terms have been amended 
due to deterioration in credit quality and “Credit Forbearance Policy” of the Bank should be referred in identifying the restructured 
facilities. As per the Credit Forbearance Policy of the Bank, following changes/criteria are recognised as changes to the original 
repayment terms of a credit facility

•  Change of Interest Rate
•  Change of Tenor (Maturity) 
•  Changes to the Grace Period
•  Interest Waivers

4.4.11.6.3 Subcategorisation of non-performing credit facilities (NPCF)

NPCF are further categorised into four categories based on the past due days and level of potential risk identified as follows:

Category

Past due days

Potential risk criteria

Special mention

> 90 and < = 180

Exhibits potential weaknesses where, if not corrected in a timely manner, 
may adversely affect repayment ability of the customer in future.

Substandard

> 180 and < = 270

Exhibits definable weaknesses, either in respect of the business, cash flow 
or financial position of the customer that may jeopardize repayment on 
existing terms and uncertainty on the repayment.

Doubtful

> 270 and > = 360 days

Exhibit a high risk or partial default or where full collection is improbable 
and there is a high risk of default.

Loss

> 360 days

Deemed to be uncollectable or are almost certain repayment will not be 
done and all other NPCF which are not included under above categories.

NOTES TO THE FINANCIAL STATEMENTS

4.4.11.7 Upgrading of credit facilities

Upgrading of credit facilities among the 
stages will be done based on the level 
of improvement in credit deterioration at 
the later assessment dates comparing to 
the initial point.

The Bank will upgrade the credit facilities 
in accordance with the guidelines 
provided under the Credit Risk 
Management Policy pertaining to the 
upgrading of credit facilities.

4.5 Impairment of non-financial 

assets

 

The Group assesses at each reporting 
date whether there is an indication 
that an asset may be impaired. If 
any indication exists, or when annual 
impairment testing for an asset is 
required, the Bank estimates the 
asset’s recoverable amount. An asset’s 
recoverable amount is the higher of an 

asset’s fair value less costs to sell or its 
value in use. Where the carrying amount 
of an asset exceeds its recoverable 
amount, the asset is considered impaired 
and is written down to its recoverable 
amount. In assessing the value in use, 
the estimated future cash flows are 
discounted to their present value using a 
pre-tax discount rate that reflects current 
market assessments of the time value of 
money and the risks specific to the asset. 
In determining fair value less costs to sell, 
an appropriate valuation model is used. 
These calculations are corroborated by 
valuation multiples, quoted share prices 
for publicly-traded subsidiaries or other 
valuable fair value indicators.

4.6 Fiduciary services

 

The Group provides fiduciary services 
to third parties that result in holding of 
the assets on behalf of its customers. 
Assets held in fiduciary capacity are not 

recognised in the Financial Statements, 
as the Group is not the beneficial owner 
or does not control such assets.

 

4.7 Provisions 

A provision is recognised as a result 
of a past event, when the Group has a 
present (legal or constructive) obligation 
that can be estimated reliably and it is 
probable that an outflow of economic 
benefits will be required to settle the 
obligation. The amount recognised is 
the best estimate of the consideration 
required to settle the present obligation 
at the reporting date, taking into 
account the risks and uncertainties 
surrounding the obligation at that date. 
Where a provision is measured using 
the cash flows estimated to settle the 
present obligation, its carrying amount 
is determined based on the present 
value of those cash flows. A provision for 
onerous contracts is recognised when 

the expected benefits to be derived 
by the Group from a contract are lower 
than the unavoidable cost of meeting 
its obligations under the contract. The 
provision is measured as the present 
value of the lower of the expected cost 
of terminating the contract and the 
expected net cost of continuing with the 
contract.

4.8 Income tax expense and other 

taxes

4.8.1 Income tax expense 

Income tax expense comprises current 
and deferred tax. More details are given 
in Note 18. 

4.8.2 Value added tax (VAT) on 

financial services 

The base for value added tax 
computation is arrived by aggregating 
the accounting profit before income tax 
and emoluments of employees which is 
adjusted for the depreciation computed 
on prescribed rates. During the year, 
the Group’s total value addition was 
subjected to 18% with effect from 1 
January 2022 as per the Value Added Tax 
Act, No. 14 of 2002 and amendments 
thereto. Also the Group is following value 
attributable method to compute VAT on 
financial services.

4.8.3 Crop insurance levy (CIL) 

As per the provisions of the Finance Act, 
No. 12 of 2013, the CIL was introduced 
with effect from 1 April 2013 and is 
payable 1% of the profit after tax to the 
National Insurance Trust Fund Board.

4.8.4 Social security contribution levy 

(SSCL) 

In terms of the Social Security Contribution 
Levy Act, No. 25 of 2022, the Bank is 
liable for Social Security Contribution 
Levy on financial services with effect from 
1 October 2022 on the value addition 

attributable to financial services at the rate 
of 2.5%. Further, SSCL on non-financial 
services are made liable on the turnover at 
the rate of 2.5%.

4.8.5 Withholding tax (WHT) on 

dividends distributed by the Bank, 

Subsidiaries and Associates 

Withholding tax on dividends distributed 
by the Bank
The Bank distributes dividend to its 
sole shareholder, the Government of 
Sri Lanka. As per the third schedule of 
Inland Revenue Act, No 24 of 2017 and 
amendments thereto, amounts derived 
by the Government of Sri Lanka is 
exempted from income tax. Accordingly, 
no withholding tax is deducted on 
dividend payments made to the 
Government of Sri Lanka.

WHT on dividends distributed by the 
subsidiaries and associates
As per the Inland Revenue (Amendment) 
Act, No. 45 of 2022 WHT on dividends 
has been introduced with effect from 
1 January 2023. Accordingly, dividend 
income received from subsidiaries and 
associate companies is liable for WHT at 
the rate of 15% and it is a final tax for the 
Bank.

5

Insurance business 

5.1 Reinsurance 

The Group cedes insurance risk in 
the normal course of business for all 
of its businesses. Reinsurance assets 
represent balances due from reinsurance 
companies. Amounts recoverable from 
reinsurers are estimated in a manner 
consistent with the outstanding claims 
provision or settled claims associated 
with the reinsurer’s policies and are in 
accordance with the related reinsurance 
contract. Reinsurance assets are reviewed 
for impairment at each reporting date or 

more frequently when an indication of 
impairment arises during the reporting 
year. Impairment occurs when there is 
objective evidence as a result of an event 
that occurred after initial recognition 
of the reinsurance asset that the Group 
may not receive all outstanding amounts 
due under the terms of the contract 
and the event has a reliably measurable 
impact on the amounts that the Group 
will receive from the reinsurer. The 
impairment loss is recorded in the 
Statement of Profit or Loss. Premiums 
and claims are presented on a gross 
basis for reinsurance. Reinsurance assets 
or liabilities are derecognised when the 
contractual rights are extinguished or 
expire or when the contract is transferred 
to another party.

5.2 Insurance receivables 

Insurance receivables are recognised 
when due and measured on initial 
recognition at the fair value of the 
consideration receivable. The carrying 
value of insurance receivables is reviewed 
for impairment whenever events or 
circumstances indicate that the carrying 
amount may not be recoverable, with 
the impairment loss recorded in the 
Statement of Profit or Loss. 

5.3 Deferred expenses 

5.3.1 Deferred acquisition costs 

(DAC)

The costs of acquiring new businesses 
including commission, underwriting, 
marketing and policy issue expenses 
which vary with and directly related to 
production of new businesses and/or 
investment contracts with discretionary 
participation features (DPF), are deferred 
to the extent that these costs are 
recoverable out of future premiums. All 
other acquisition costs are recognised as 
an expense when incurred. Subsequent 
to initial recognition, DAC for general 

insurance is amortised over the period 
on the basis unearned premium is 
amortised. The reinsurances’ share of 
deferred acquisition cost is amortised 
in the same manner as the underlying 
assets amortisation is recorded in the 
Statement of Profit or Loss. Changes in 
the expected useful life or the expected 
pattern of consumption of future 
economic benefits embodied in the 
assets are accounted for by changing 
the amortisation period and are treated 
as a change in an accounting estimate. 
DAC are derecognised when the related 
contracts are either expired or cancelled.

5.4 Reinsurance commissions

 

Commissions receivable on outwards 
reinsurance contracts are deferred and 
amortised over the period of reinsurance. 

5.5 Investment contract liabilities

Investment contracts are classified 
between contracts with and without 
DPF. The accounting policies for 
investment contract liabilities with DPF 
are the same as those for life insurance 
contract liabilities. Investment contract 
liabilities without DPF are recognised 
when contracts are entered into and 
premiums are charged. These liabilities 
are initially recognised at fair value being 
the transaction price excluding any 
transaction costs directly attributable to 
the issue of the contract. Subsequent to 
initial recognition, investment contract 
liabilities are measured at fair value 
through profit or loss. Deposits and 
withdrawals are recorded directly as 
an adjustment to the liability in the 
Statement of Financial Position. Fair 
value adjustments are performed at 
each reporting date and are recognised 
in the Statement of Profit or Loss. Fair 
value is determined through the use 
of prospective discounted cash flow 
techniques. For unitised contracts, fair 

value is calculated as the number of units 
allocated to the policyholder in each unit 
linked fund multiplied by the unit price 
of those funds at the reporting date. The 
fund assets and fund liabilities used to 
determine the unit prices at the reporting 
date are valued on a basis consistent with 
their measurement basis in the Statement 
of Financial Position adjusted to take 
account of the effect on the liabilities of 
the deferred tax on unrealised gains on 
assets in the fund. Non-utilised contracts 
are subsequently carried at fair value, 
which is determined by using valuation 
techniques such as discounted cash flows 
and stochastic modelling. Models are 
validated, calibrated and periodically 
reviewed by an independent qualified 
person. 

The liability is derecognised when the 
contract expires, is discharged or is 
cancelled. For a contract that can be 
cancelled by the policyholder, the fair 
value cannot be less than the surrender 
value. When contracts contain both a 
financial risk component and a significant 
insurance risk component and the cash 
flows from the two components are 
distinct and can be measured reliably, 
the underlying amounts are unbundled. 
Any premiums relating to the insurance 
risk component are accounted for on the 
same bases as insurance.

5.6 Discretionary participation 

features (DPF) 

A DPF is a contractual right that gives 
holders of these contracts the right to 
receive as a supplement to guaranteed 
benefits, significant additional benefits 
which are based on the performance 
of the assets held within the DPF 
portfolio. Under the terms of the 
contract, surpluses in the DPF funds 
can be distributed to policyholders 
and shareholders on a 90/10 basis. 

The Group has the discretion over the 
amount and timing of the distribution of 
these surpluses to policyholders. All DPF 
liabilities including unallocated surpluses, 
both guaranteed and discretionary, 
at annually are held within insurance 
or investment contract liabilities as 
appropriate. 

5.7 Unearned premium reserve 

Unearned premium reserve represents 
the portion of the premium written in the 
year but relating to the unexpired term 
of coverage. Unearned premiums are 
calculated on the 1/24th basis.

6

New and amended 

standards and 

interpretations 

6.1 New Accounting Standards 

issued during the year/changes 

to already existing accounting 

standards.

6.1.1 Amendments to LKAS 8 -  

“Accounting Policies, Changes in 

Accounting Estimates and Errors”

The amendments clarify the following.

•  Distinction between changes in 

accounting estimates, changes 
in accounting policies and the 
correction of errors.

•  How entities use measurement 

techniques and inputs to develop 
accounting estimates.

•  A change in an input or a change in a 

measurement technique are changes 
in accounting estimates if they do 
not result from the correction of prior 
period errors.

The effective date is 1 January 2023.

These amendments have no material 
impact on the Financial Statements of the 
Bank/Group.

6.1.2 Amendments to LKAS 

1 – “Presentation of Financial 

Statements”

These amendment:

•  replaces the requirement for entities 

to disclose their “significant” 
accounting policies with a 
requirement to disclose “material” 
accounting policies.

•  provides guidance on how entities 

apply the concept of materiality in 
making decisions about accounting 
policy disclosures.

•  specify the requirements for 

classifying liabilities as current or non-
current.

The effective date is 1 January 2023

These amendments have no material 
impact on the Financial Statements of the 
Bank/Group.

6.1.3 Amendments to LKAS 12 – 

“Income Taxes”
The amendments introduce an exception 
to the initial recognition exemption in 
LKAS 12 – “Income Taxes”. The effect 
of these amendments essentially mean 

that the initial recognition exemption 
is not available for transactions which 
involve the recognition of both an asset 
and liability which in turn leads to equal 
and opposite temporary differences. 
Therefore, deferred taxes are calculated 
and booked for both temporary 
differences, at initial recognition and 
subsequently.

The effective date is 1 January 2023.

These amendments have no material 
impact on the Financial Statements of the 
Bank/Group.

6.2 New accounting standards issued 

but not effective as at the reporting 

date 

The following Sri Lanka Accounting 
Standards were issued by The Institute 
of Chartered Accountants of Sri Lanka 
which is effective for the annual period 
beginning on or after 1 January 2024. 
Accordingly, these accounting standard 
has not been applied in the preparation 
of the Financial Statements for the year 
ended 31 December 2023. We have 
identified following Standard where this 
applies to the Group and further details 
are set out below:

6.2.1 SLFRS 17 – “Insurance 

contracts” 

SLFRS 17 – “Insurance Contracts” 
establishes principles for the recognition, 
measurement, presentation and 
disclosure of insurance contracts within 
the scope of the standard. The objective 
of SLFRS 17 –“Insurance Contracts” is to 
ensure that an entity provides relevant 
information that faithfully represents 
those contracts. This information gives a 
basis for users of Financial Statements to 
assess the effect that insurance contracts 
have on the entity’s financial position, 
financial performance and cash flows. 

SLFRS 17 – “Insurance Contracts” is 
effective for annual periods beginning on 
or after 1 January 2026. 

The Group is assessing the potential 
impact on its Financial Statements 
resulting from the application of SLFRS 
17 – “Insurance Contracts”.

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

7

Total income

Accounting policy

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Bank/ Group and the revenue can 
be reliably measured.

Bank

Group

For the year ended 31 December 

Note

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Interest income

8.1

524,797,842

456,267,458

532,477,761

463,203,346

Fee and commission income

9.1

 25,875,048 

 22,837,771 

 26,235,325 

 23,165,682 

Net gains/ (losses) from trading

10

 (5,347,822)

 17,602,384 

 (5,163,417)

 17,678,455 

Net fair value gains/ (losses) from financial instruments 
at fair value through profit or loss

11

 858,722 

(804,438)

 1,448,963 

(956,745)

Net gains/ (losses) from derecognition of financial assets 

12

 1,361,863 

 861,349 

 1,469,888 

 877,853 

Net other operating income

13

 (5,358,356)

 16,384,811 

 (4,601,757)

 16,922,573 

Total income

542,187,297

513,149,335

551,866,763

520,891,164

8

Net interest income

Accounting policy

Interest income and expense are recognised in the Statement of Profit or Loss using the Effective Interest Rate (EIR).

Interest income and expense presented in the Statement of Profit or Loss include interest on;

Financial assets and financial liabilities measured at Amortised Cost (AC)
Financial assets recognised through Profit or Loss - Measured at Fair Value (FVTPL)
Financial assets measured at Fair Value Through Other Comprehensive Income (FVTOCI)

Effective Interest Rate (EIR)

The ‘EIR’ is the rate that exactly discounts the estimated future cash payments and receipts throughout the expected life of the 
financial asset or financial liability (or, where appropriate, a shorter period) to the carrying amount of the financial asset or financial 
liability. When calculating the EIR, the Group estimates future cash flows, considering all contractual terms of the financial instruments.

The calculation of the EIR includes any discount or premium on acquisition of financial instrument, transaction costs and fees paid or 
received that are an integral part of the EIR. Transaction costs include incremental costs that are directly attributable to the acquisition 
or issue of a financial asset or financial liability.

For impaired financial assets, adjusted EIR is calculated using estimated future cash flows and if the financial assets cures and no 
longer credit impaired, the bank reverts to calculating interest income on gross basis.

The expected cashflows on financial asset are revised for reasons other than credit risk, the adjustment is made to carrying value of 
the assets in statement of financial position with an adjustment to interest income or similar income in the statement of profit or losse.

8.1  Interest income

Bank

Group

For the year ended 31 December 

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Cash and cash equivalents

 2,162,274 

 595,465 

 2,162,274 

 881,761 

Placements with banks

 2,635,457 

 396,817 

 3,091,095 

 405,672 

Securities purchased under resale agreements

 1,776,019 

 96,718 

 1,810,576 

 75,167 

Financial assets recognised through profit or loss  
measured at fair value 

 5,328,979 

 444,197 

 5,328,979 

 447,726 

Financial assets at amortised cost

loans and advances

335,051,290

310,238,562

340,286,641

316,070,181

debt and other instruments

175,305,169

143,777,962

177,255,006

144,543,793

Financial assets measured at fair value through OCI

 2,538,654 

 717,737 

 2,543,190 

 779,046 

Total interest income

524,797,842

456,267,458

532,477,761

463,203,346

Interest income on loans and advances includes interest on credit impaired loans and advances amounting to LKR 5,827.9 million for 
the year 2023 (2022 - LKR 1,745.7 million).

8.2  Interest expenses

Bank

Group

For the year ended 31 December 

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Due to banks

 94,251 

 477,472 

 114,668 

 511,004 

Securities sold under repurchase agreements

 33,146,868 

 36,443,268 

 33,146,868 

 36,438,543 

Financial liabilities at amortised cost

due to depositors

377,581,695

231,793,666

381,012,800

234,767,352

other borrowings

 10,734,756 

 52,848,179 

 10,716,574 

 53,413,547 

Subordinated liabilities

 12,052,686 

 8,358,495 

 11,976,739 

 8,304,008 

Total interest expenses

433,610,256

329,921,080

436,967,649

333,434,454

Net interest income

91,187,586

126,346,378

95,510,112

129,768,892

8.3  Net interest income from Sri Lanka Government Securities

Bank

Group

For the year ended 31 December 

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Interest income

171,796,811

119,745,901

173,685,878

119,805,011

Less : Interest expenses

33,146,868

 36,443,268 

 33,146,868 

 36,438,543 

Net interest income from Sri Lanka Government Securities

138,649,943

83,302,633

140,539,010

83,366,468

9

Net fee and commission income

Accounting policy

Fee and commission income comprises with the fee and commission earned by the Group, providing diverse range of services. Those 
can be divided into following two main categories. 

 

 

 

 

 

 

 

(i) Fee and commission income earned from services that are provided over a certain period of time;    
Fees earned from the provision of services over a period of time are accrued over that period. These fees include commission income 
and private wealth and asset management fees, custody and other management and advisory fees. 

(ii) Fee and commission income from providing transaction services and earned on the execution of a specific act;
Fees and commission arising from negotiating or participating in the negotiation of a transaction for a third party, such as the 
arrangement/ participation or negotiation of the acquisition of shares or other securities, or the purchase or sale of businesses, are 
recognised on completion of the underlying transaction. Fees or components of fees that are linked to a certain performance are 
recognised after fulfilling the corresponding criteria.

Fees and commission expenses relating to transactions are expensed as the services are received and are recognised on an accrual 
basis.

9.1  Fee and commission income

Bank

Group

For the year ended 31 December 

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Trade services

 3,261,176 

 3,931,144 

 3,261,176 

 4,060,300 

Debit and credit cards

 11,633,316 

 8,876,177 

 11,634,947 

 8,876,177 

Travel and remittances services

 3,335,485 

 3,744,864 

 3,335,485 

 3,753,231 

Custodial services

 64,847 

 60,667 

 64,847 

 60,667 

Retail banking services

 4,699,583 

 3,890,089 

 4,883,879 

 4,057,370 

Guarantees and related services

 1,921,328 

 1,582,641 

 1,921,328 

 1,582,641 

Other financial services

 959,313 

 752,189 

 1,133,663 

 775,296 

Total fee and commission income

 25,875,048 

 22,837,771 

 26,235,325 

 23,165,682 

9.2  Fee and commission expense

Bank

Group

For the year ended 31 December 

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Debit and credit cards

 7,303,632 

 5,830,252 

 7,304,476 

 5,830,252 

Travel and remittances services

 258,035 

 266,482 

 258,035 

 266,482 

Retail banking services

 599,440 

 360,240 

 599,440 

 379,445 

Guarantees and related services

 19,864 

 10,728 

 19,864 

 10,728 

Other financial services

 39,658 

 18,427 

 55,571 

 18,427 

Total fee and commission expenses

 8,220,629 

 6,486,129 

 8,237,386 

 6,505,334 

Net fee and commission income

 17,654,419 

 16,351,642 

 17,997,939 

 16,660,348 

10

Net gains/ (losses) from trading

Accounting policy

Net gains/ (losses) from trading comprises foreign exchange gains or losses arising from trading activities, gains/ (losses) arising from 
changes in fair value of derivative financial instruments, dividend income from trading equities.

Dividend income is recognised when the Group’s right to receive the dividend is established.

Bank

Group

For the year ended 31 December 

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Foreign exchange

From banks

 - 

 6,494 

 172,155 

 76,071 

From customers and others

 (5,431,748)

 17,522,608 

 (5,431,748)

 17,529,102 

Equities

Dividend income

 83,926 

 73,282 

 96,176 

 73,282 

Net gains/ (losses) from trading

 (5,347,822)

 17,602,384 

 (5,163,417)

 17,678,455 

11

Net fair value gains/(losses) from financial instruments at fair value through profit or loss

Accounting policy

Net gains/ (losses) on financial instruments at fair value through profit or loss includes unrealised gains or losses from investment in 
equities and debt instruments classified at fair value through profit or loss due to changes in fair value of such instruments.

Bank

Group

For the year ended 31 December 

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Gains/ (losses) on marked to market valuation of

Fixed income securities

 79,102 

 29,671 

 638,326 

 29,671 

Equities

 437,879 

 (691,331)

 440,102 

 (843,638)

Unit trust

 341,741 

 (142,778)

 370,535 

 (142,778)

Net gains/(losses) on financial assets at fair value  

through profit or loss 

 

 858,722 

 (804,438)

 1,448,963 

 (956,745)

12

Net gains/(losses) from derecognition of financial assets

Accounting policy

Net gains/ (losses) from derecognition of financial assets include profit or loss on sale of debt instruments classified as fair value 
through profit or loss, amortised cost and fair value through other comprehensive income and profit or loss on sale of equity 
instrument classified as fair value through profit or loss.

Bank

Group

For the year ended 31 December 

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Recognised at:

Fair value through profit or loss

 702,105 

 751,322 

 702,105 

 766,423 

Amortised cost

 - 

 - 

 - 

 - 

Fair value through other comprehensive income

 659,758 

 110,027 

 767,783 

 111,430 

Net gains/(losses) from derecognition of financial assets

 1,361,863 

 861,349 

 1,469,888 

 877,853 

13

Net other operating income

Accounting policy

Dividend income     
Dividend income is recognised when the Bank’s right to receive the dividend is established.   

 

 

Gains / (losses) from disposal of non-financial assets     
Net gains / (losses) arising from the disposal of property, plant and equipment and other non current assets including investments in 
subsidiaries and associates are accounted for in the Statement of Profit or Loss after deducting the carrying amount of such assets 
and the related selling expenses from the proceeds on disposal.   

 

 

Foreign exchange income 

 

   

Foreign currency positions are revalued at each reporting date. Gains / (losses) arising from changes in fair value are included in the 
Statement of Profit or Loss in the period in which they arise. 

 

 

 

Rental income 

   

Rental income is recognised on an accrual basis. This includes rent recovered from the Bank’s premises and safety lockers etc..

Gross insurance premium     
Gross recurring premiums on life and investment contracts with Discretionary Participation Features (DPF) are recognised as revenue 
when receivable from the policyholder. For single premium business, revenue is recognised on the date on which the policy is 
effective.  

 

Gross general insurance written premiums comprise the total premiums receivable for the whole period of cover provided by 
contracts entered into during the accounting period and are recognised on the date on which the policy commences.

Bank

Group

For the year ended 31 December 

Note

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Dividend income from financial assets measured at fair 
value through OCI

 238,083 

 377,695 

 292,473 

 441,973 

Dividend income from subsidiaries and associates

 372,900 

 107,430 

 - 

 - 

Dividend income from units in unit trust

 - 

 - 

 450 

 171 

Gains / (losses) on revaluation of foreign exchange 

 (7,231,150)

 15,450,104 

 (7,231,150)

 15,450,104 

Gains / (losses) on sale of property, plant and equipment 

 (6,612)

 (7,950)

 8,607 

 (7,410)

Gains / (losses) on sale of foreclosed properties

 47,145 

 23,507 

 47,145 

 23,507 

Rental income

 300,057 

 235,980 

 272,756 

 232,728 

Service income

 - 

 - 

 850,557 

 280,468 

Profit from sale of gold bullion

 6,789 

 6,069 

 6,974 

 - 

Miscellaneous income

 950,333 

 131,581 

 708,772 

 84,685 

Gross insurance premium

 - 

 - 

 477,560 

 355,952 

Net income from islamic banking 

13.1

 (35,901)

 60,395 

 (35,901)

 60,395 

Net other operating income

 (5,358,356)

 16,384,811 

 (4,601,757)

 16,922,573 

13.1  Net income from islamic banking

 

Bank/Group

For the year ended 31 December 

2023

2022

LKR ‘000

LKR ‘000

Income from islamic banking operations

 155,252 

 266,617 

Less : Profit paid to investors

 191,153 

 206,222 

Net income from islamic banking

 (35,901)

 60,395 

14

Impairment charge / (reversal) for loans and other losses

Accounting policy

The Bank and Group recognise the changes in the impairment provisions for financial instruments, which are assessed as per Sri 
Lanka Accounting Standard - SLFRS 9 - “Financial Instruments”. Details are given under "Financial assets at amortised cost - loans 
and advances" (Note 28). Further, the Bank/ Group recognises an impairment loss when the carrying amount of a non financial asset 
exceeds the estimated recoverable amount of that asset as per Sri Lanka Accounting Standard - LKAS 36 - “Impairment of Assets”.

The table below shows the provision made in the Statement of profit or loss during the year on identified Expected Credit Losses 
(ECL) on financial instruments for the year.

Bank

Group

Note

2023

2023

For the year ended 31 December 

Stage 1

Stage 2

Stage 3

Total

Stage 1

Stage 2

Stage 3

Total

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Cash and cash equivalents  

22.2

 38,436 

 - 

 - 

 38,436 

 38,436 

 - 

 - 

 38,436 

Placements with banks 

24.2

 (275,170)

 - 

 - 

 (275,170)

 (275,170)

 - 

 - 

 (275,170)

Financial assets measured at 

amortised cost - loans and advances  28.2

 (7,670,654)

 6,263,585

 (1,256,775)

 (2,663,844)

 (7,817,368)

 6,257,962

 (1,261,537)

 (2,820,943)

Financial assets measured at 

amortised cost - debt instruments 

29.3

 (320,867)

 (1,684,832)

 - 

 (2,005,699)

 (320,867)

 (1,684,832)

 -

 (2,005,699)

Financial assets measured at fair 

value through OCI 

30.4

 - 

 - 

 - 

 - 

 14,710

 - 

 - 

14,710

impairment charge/ (reversal) for  

loans and other losses

(8,228,255)

 4,578,753 

(1,256,775)

(4,906,277)

(8,360,259)

 4,573,130 

(1,261,537)

(5,048,666)

Bank

Group

Note

2022

2022

For the year ended 31 December 

Stage 1

Stage 2

Stage 3

Total

Stage 1

Stage 2

Stage 3

Total

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Cash and cash equivalents 

22.2

 11,952 

 - 

 - 

 11,952 

 10,356 

 - 

 - 

 10,356 

Placements with banks 

24.2

 319,416 

 - 

 - 

 319,416 

 317,348 

 - 

 - 

 317,348 

Financial assets measured at 

amortised cost - loans and advances  28.2

 15,135,491

 10,344,926

 45,280,265

 70,760,682

 15,204,835

 10,365,092

 45,174,250

 70,744,177

Financial assets measured at 

amortised cost - debt instruments 

29.3 

(13,446,853)

 29,510,499 

 -

 16,063,646

 (13,287,475)

 29,510,499 

 -

 16,223,024

Impairment charge/ (reversal) for  

loans and other losses

 2,020,006

 39,855,425

 45,280,265

 87,155,696

 2,245,064

 39,875,591

 45,174,250

 87,294,905

15

Personnel expenses

Accounting policy

Personnel expenses include staff emoluments, contribution to defined contribution and benefit plans and other related expenses. 
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. 
A liability is recognised for the amount expected to be paid under short term cash bonus, if the Group has a present legal or 
constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated 
reliably. 

        

Employees are eligible for contribution to defined contribution and benefit plans in accordance with the respective internal and 
external statutes and regulations. 

 

 

 

 

Defined benefit plans are recognised in the Statement of Profit or Loss based on actuarial valuations carried out in accordance with 
Sri Lanka Accounting Standard - LKAS 19 - “Employee Benefits”.

Bank

Group

For the year ended 31 December 

Note

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Staff emoluments

 23,866,223 

 23,859,475 

 25,711,503 

 25,693,378 

Contributions to defined contribution plans 

15.1

 2,201,668 

 2,048,765 

 2,383,340 

 2,229,393 

Contributions to defined benefit plans 

15.2

 1,868,440 

 1,455,762 

 1,982,003 

 1,539,682 

Other personnel expenses

 1,881,868 

 1,627,427 

 2,234,835 

 1,890,525 

Total personnel expenses

 29,818,199 

 28,991,429 

 32,311,681 

 31,352,978 

15.1  Contributions to defined contribution plans

A Defined Contribution Plan (DCP) is a post-employment benefit plan under which an entity pays fixed contributions into a separate 
entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution 
plans are recognised as an expense in the Statement of Profit or Loss when they are due in respect of service rendered before the 
end of the Reporting period. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future 
payments 

is 

available. 

     

Bank of Ceylon Provident Fund
All employees of the Bank are members of the ‘Bank of Ceylon Provident Fund’ to which the Bank contributes 12% of employees’ 
monthly gross salary while employees contribute 8%. This fund is an approved fund, which is independently administered.

Employees’ Provident Fund
The subsidiaries and their employees (other than Bank of Ceylon and its employees) contribute 12% (15% by Property Development 
Limited and Hotel Colombo Limited) and 8% (10% by Property Development Limited’s and Hotel Colombo Limited’s employees) 
respectively on monthly gross salary of each employee to Employees’ Provident Fund, in terms of the Employees’ Provident Fund Act 
No. 15 of 1958 and subsequent amendments thereto. The respective fund is managed by the Central Bank of Sri Lanka.

Employees’ Trust Fund
All employees of the Bank and its subsidiaries are members of the Employees’ Trust Fund to which the Bank and the Group 
contributes 3% of the employee’s monthly gross salary, in terms of Employees’ Trust Fund Act No.46 of 1980.

Bank

Group

For the year ended 31 December 

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Employers’ contribution to: 

Bank of Ceylon/Employees' Provident Fund 

 1,766,295 

 1,643,180 

 1,912,518 

 1,792,776 

Employees' Trust Fund 

 435,373 

 405,585 

 470,822 

 436,617 

Total contributions to defined contribution plans

 2,201,668 

 2,048,765 

 2,383,340 

 2,229,393 

15.2  Contributions to defined benefit plans

A Defined Benefit Plan (DBP) is a post-employment benefit plan other than a DCP. The Group’s net obligation in respect of DBP is 
calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service 
in the current and prior periods and discounting that benefit to determine its present value and then deducting the fair value of any 
plan assets. The discount rate is the yield at the reporting date on long-term treasury bond rate for discount rates actually used that 
have maturity dates approximating the terms of the Group’s obligations. The calculation is performed by a qualified Actuary using the 
“Projected Unit Credit method”.

The Group recognises all actuarial gains and losses arising from DBP in the OCI and the expenses related to DBP under personnel expenses 
in the Statement of Profit or Loss. Details of defined benefit plans are given in “Employee retirement benefit plans” (Note 48).

Bank

Group

For the year ended 31 December 

Note

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Net expenses recognised in the profit or loss

Bank of Ceylon Pension Trust Fund 

48.1.1

 4,896,595 

 2,514,177 

 4,896,595 

 2,514,177 

Bank of Ceylon  Widows'/ Widowers' and  
Orphans’ Pension Fund

48.2.1

 (1,807,265)

 (1,319,754)

 (1,807,265)

 (1,319,754)

Terminal gratuity

48.3

 173,686 

 105,253 

 273,972 

 180,221 

Bank of Ceylon Pension Fund - 2014 

48.4.1

 (1,566,380)

 83,081 

 (1,566,380)

 83,081 

Provision for encashment of medical leave

48.5

 171,804 

 73,005 

 171,804 

 73,005 

Pension fund - Bank of Ceylon (UK) Limited

 - 

 - 

 13,277 

 8,952 

Total contributions to defined benefit plans

 1,868,440 

 1,455,762 

 1,982,003 

 1,539,682 

16

Depreciation and amortisation expenses

Accounting policy

The Group provides depreciation from the date the assets are available for use upto the point the assets can be used for economic 
activities. Depreciation of the assets ceases at the point of the date that the asset is classified held for sale or the date that the asset is 
derecognised. Depreciation does not ceases when the asset become idle or is retired from active use unless asset is fully depreciated.

Bank

Group

For the year ended 31 December 

Note

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Depreciation of investment properties 

33

 - 

 - 

9,190

 2,906 

Depreciation of property, plant and equipment 

34

 1,846,426 

 1,894,960 

2,692,672

 2,717,917 

Amortisation of right of use assets/ leasehold properties 

35

 1,522,030 

 1,759,054 

1,002,250

 990,918 

Amortisation of intangible assets 

36

 484,475 

 632,885 

525,130

 795,627 

Total depreciation and amortisation expenses

 3,852,931 

 4,286,899 

 4,229,242 

 4,507,368 

17

Other expenses

Accounting policy

Other expenses have been recognised in the Statement of Profit or Loss as they are incurred in the period to which they relate. All 
expenditure incurred in the operation of the business and in maintaining the capital assets in a state of efficiency has been charged 
to revenue in arriving at the Group’s profit for the year. Provisions in respect of other expenses are recognised when the Group has a 
present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources emboding economic 
benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. 

 

Deposit insurance premium 

 

 

 

As per the Sri Lanka Deposit Insurance and Liqudity Support Scheme introduced under the Banking Act Direction No.06 of 2010, 
the Group is required to make quarterly payments of 0.1% or 0.125% on the eligible deposit liabilities, from 1 October 2010. The 
premium rate depends on the Capital Adequacy Ratio (CAR) of the immediate preceeding Audited Financial Statements.

Reinsurance premium, claims and other benefits
Gross benefits and claims for life insurance contracts and for investment contracts with Discretionary Participation Features (DPF) 
include the cost of all claims arising during the year including internal and external claims handling costs that are directly related 
to the processing and settlement of claims and policyholder bonuses declared on DPF contracts, as well as changes in the gross 
valuation of insurance and investment contract liabilities with DPF. Death claims and surrenders are recorded on the basis of 
notifications received. Maturities and annuity payments are recorded when due. Interim payments and surrenders are accounted at 
the time of settlement. 

 

 

 

General insurance include all claims occurring during the year, whether reported or not, related internal and external claims handling 
costs that are directly related to the processing and settlement of claims, a reduction for the value of salvage and other recoveries, 
and any adjustments to claims outstanding from previous years.   

 

 

Claims expenses and liabilities for outstanding claims are recognised in respect of direct and inward reinsurance business. The liability 
covers claims reported but not yet paid, Incurred But Not Reported (IBNR) claims and the anticipated direct and indirect costs of 
settling those claims. Claims outstanding are assessed by review of individual claim files and estimating changes in the ultimate cost 
of settling claims. The provision in respect of IBNR is actuarially valued on an annual basis to ensure a more realistic estimation of the 
future liability based on past experience and trends. 

 

 

 

 

 

While the Directors consider that the provision for claims is fairly stated on the basis of information currently available, the ultimate 
liability will vary as a result of subsequent information and events. This may result in adjustment to the amounts provided. Such 
amounts are reflected in the Financial Statements for that period. The methods used and the estimates made are reviewed regularly.

Reinsurance claims are recognised when the related gross insurance claim is recognised according to the terms of the relevant 
contract. 

Bank

Group

For the year ended 31 December 

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Directors' emoluments

 2,975 

 4,200 

 117,961 

 13,748 

Auditors' remuneration

Audit fees

 46,612 

 35,504 

 99,805 

 78,277 

Non-audit fees

 - 

 - 

 1,372 

 766 

Deposit insurance premium

 3,271,248 

 3,111,665 

 3,306,617 

 3,146,594 

Professional and legal expenses

 236,828 

 158,948 

 303,084 

 242,892 

Net revaluation (gain)/ loss on lands and buildings

 341,757 

 (3,200)

 341,757 

 (3,200)

Fixed assets maintenance expenses

 5,872,616 

 3,737,614 

 5,956,869 

 3,408,364 

Reinsurance premium, claims and other benefits

 - 

 - 

 459,618 

 291,024 

Office administration and establishment expenses

 8,813,531 

 6,973,430 

 9,887,046 

 8,245,501 

Total other expenses

 18,585,567 

 14,018,161 

 20,474,129 

 15,423,966 

18

Taxes

18.1  Taxes on financial services

Accounting policy

Taxes on financial services include Value Added Tax (VAT) and Social Security Contribution Levy (SSCL) calculated based on the value 
addition made on financial services.

Bank

Group

For the year ended 31 December 

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Value added tax

 11,122,618 

 11,031,979 

 11,378,354 

 11,155,847 

Social security contribution levy

 1,540,951 

 281,313 

 1,577,470 

 286,658 

Total taxes on financial services

 12,663,569 

 11,313,292 

 12,955,824 

 11,442,505 

18.2  Income tax expense/(reversal)

Accounting policy

Current tax and deferred tax are recognised in the Statement of Profit or Loss except to the extent that it relates to items recognised 
directly in equity or in Other Comprehensive Income (OCI). 

Current 

taxation 

    

Current tax is the expected tax payable or receivable on the taxable income or loss for the year using tax rates enacted or 
substantively enacted at the reporting date and any adjustment to tax payable in respect of previous years. The amount of current 
tax receivable or payable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to 
income taxes if any. 

 

 

 

 

Accordingly, provision for taxation is made on the basis of the accounting profit for the year, as adjusted for taxation purposes, in 
accordance with the provisions of the Inland Revenue Act, No. 24 of 2017 effective from 1 April 2018, Inland Revenue (Amendment) Act, 
No. 10 of 2021, Inland Revenue (Amendment) Act, No. 45 of 2022 and Inland Revenue (Amendment) Act, No. 04 of 2023. As required by 
the Sri Lanka Accounting Standard-LKAS 12 - “Income Taxes”, the effective tax rates and reconciliation between the profit before tax and 
tax expense is given in Note 18.2.2. 

Provision for taxation on the overseas operations is made on the basis of the accounting profit for the year as adjusted for taxation 
purposes in accordance with the provisions of the relevant laws and regulations in those countries using the tax rates enacted or 
substantively enacted as at the reporting date.  

 

 

 

 

 

Deferred 

taxation 

    

Reconciliation of Deferred tax assets and liabilities on temporary differences is given on Note 37.

18.2.1 Components of income tax expenses

Bank

Group

For the year ended 31 December 

Note

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Current tax expense

Income tax on  current year profit

 12,328,943 

 13,403,667 

 12,961,669 

 13,627,737 

Adjustments in respect of prior years

 781,912 

 146,793 

 989,298 

 146,793 

Deferred tax expense 

Charge/ (reversal) of deferred tax expense

37

 538,042 

 (14,546,219)

 204,471 

 (14,571,046)

Total income tax expense for the year

 13,648,897 

 (995,759)

 14,155,438 

 (796,516)

 

18.2.2 Reconciliation of accounting profit and income tax expense

Bank

Group

For the year ended 31 December 

Note

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Accounting profit before income tax

 40,342,423 

 30,976,649 

 41,773,025 

 31,052,501 

Add : Dividend income from subsidiaries and associates

-

 - 

372,900

 107,430 

 40,342,423 

 30,976,649 

 42,145,925 

 31,159,931 

Add : Disallowable expenses

 21,841,873 

 74,023,401 

 22,268,407 

 74,916,711 

 62,184,296

 105,000,050 

 64,414,332 

 106,076,642 

Less: Allowable expenses

 5,541,992 

 27,313,674 

 5,662,941 

 27,527,907 

Less: Tax exempt income

 16,683,203 

 26,607,014 

 16,683,203 

 26,607,015 

Taxable income

 39,959,101 

 51,079,362 

 42,068,188 

 51,941,720 

Taxable income at the rate 30% (2022 - 24% & 30%)

 39,959,101 

 50,561,160 

 42,068,188 

 51,292,184 

Taxable income at the rate 15% (dividend received)  
(2022 - 14% & 15%)

-

 518,202 

-

 649,536 

Current tax at rate of 30% (2022 - 24% & 30%)

 11,987,730 

 13,314,547 

 12,620,456 

 13,519,805 

Tax on dividend received at rate of 15% (2022 - 14% & 15% )

-

 75,072 

-

 93,884 

Effect of different tax rates in other countries

 341,213 

 14,048 

 341,213 

 14,048 

Adjustment in respect of prior years

 781,912 

 146,793 

 989,298 

 146,793 

Charge/ (reversal) of deferred tax 

37

 538,042 

 (14,546,219)

 204,471 

 (14,571,046)

Income tax expense for the year

 13,648,897 

 (995,759)

 14,155,438 

 (796,516)

The effective income tax rate (%)

33.8

(3.2)

33.9

(2.6)

Deferred tax on SLISB ECL  

 

 

As at 31 December 2023 as disclosed in Note 37, the Bank has recognised a deferred tax asset on the impairment of financial 
assets amounting to LKR 20,998.6 million of which LKR 11,667.3 million was judgmentally estimated on the impairment of  SLISB 
Investments made by the Bank.

18.2.3 The tax liabilities of resident companies are computed at the standard rate of 30% from 1 July 2022 (up to  

30 June 2022 : 24%, except the following operations of the bank and subsidiary companies which enjoy full or partial 

exemptions and concessions)

For the year ended 31 December 

2023

2022

From

01 July 2022

Up to

30 June 2022

%

%

%

Tax rates applicable on local operations

Hotels Colombo (1963) Limited

 30.00 

30.00

14.00

Ceybank Holiday Homes (Private) Limited

 30.00 

30.00

14.00

For the year ended 31 December

2023

2022

%

%

Tax rates applicable on foreign operations

Banking operations in Male

 25.00 

25.00

Banking operations in Chennai

 40.00 

40.00

Banking operation in Seychelles

Up to SCR 1,000,000

 25.00 

25.00

Balance

 33.33 

33.33

Bank of Ceylon (UK) Limited

 19.00 

19.00

19

Share of profits/ (losses) of associate companies, net of tax

Accounting policy

The aggregate of the Group’s share of profit or losses of associates  is shown in the Statement of Profit or Loss under the equity 
method of accounting.

Group

For the year ended 31 December 

2023

2022

LKR ‘000

LKR ‘000

Ceybank Asset Management Limited

 37,681 

 26,394 

Lanka Securities (Private) Limited

 (2,056)

 70,240 

Transnational Lanka Records Solutions (Private) Limited

 (2,118)

 26,213 

Total share of profits/ (losses) of associate companies, net of tax

 33,507 

 122,847 

20

Earnings per share and dividend per share

20.1  Basic earnings per share

Accounting policy

In accordance with the Sri Lanka Accounting Standard - LKAS 33 - "Earnings Per Share", basic earning per share is calculated by 
dividing the profit or loss attributable to ordinary shareholder of the Bank (the numerator) by the weighted average number of 
ordinary shares in issue (the denominator) during the year.

 

Bank

Group

For the year ended 31 December 

Note

2023

2022

2023

2022

Profit attributable to ordinary shareholder of the Bank (LKR '000)

 26,693,526 

 31,972,408 

 27,571,569 

 31,994,638 

Weighted average number of ordinary shares in issue 

20.1.1

 25,000,000 

 25,000,000 

 25,000,000 

 25,000,000 

Basic earnings per share (LKR) 

 1,067.74 

 1,278.90 

 1,102.86 

 1,279.79 

20.1.1 Weighted average number of ordinary shares in issue

 

Bank

Group

For the year ended 31 December 

2023

2022

2023

2022

Number of ordinary shares in issue as at 01 January

 25,000,000 

 25,000,000 

 25,000,000 

 25,000,000 

Weighted average number of ordinary shares issued during the year

 - 

 - 

 - 

 - 

Weighted average number of ordinary shares in issue as  

at 31 December

 25,000,000 

 25,000,000 

 25,000,000 

 25,000,000 

20.2  Diluted earnings per share

Accounting policy

Diluted earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholder of the Bank  (the numerator) 
by the weighted average number of ordinary shares in issue during the year after adjusting for effect of all dilutive potential ordinary 
shares (the denominator).

Bank

Group

For the year ended 31 December 

Note

2023

2022

2023

2022

Profit attributable to ordinary shareholder of  
the Bank (LKR '000)

 26,693,526 

 31,972,408 

 27,571,569 

 31,994,638 

Weighted average number of ordinary shares after  
adjusting for dilution 

20.2.1

 25,730,000 

 25,134,000 

 25,730,000 

 25,134,000 

Diluted earnings per share (LKR) 

 1,037.45 

 1,272.08 

 1,071.57 

 1,272.96 

20.2.1 Weighted average number of ordinary shares after adjusting for dilution

 

Bank

Group

For the year ended 31 December 

2023

2022

2023

2022

Weighted average number of ordinary shares in issue

 25,000,000 

 25,000,000 

 25,000,000 

 25,000,000 

Weighted average number of potential ordinary shares under 
pending allotment during the year

 730,000 

 134,000 

 730,000 

 134,000 

Weighted average number of ordinary shares after adjusting for 

dilution

 25,730,000 

 25,134,000 

 25,730,000 

 25,134,000 

20.3  Dividend per share

Accounting policy

Dividend per share is calculated by dividing the total dividend allocated to shareholder (the numerator) by the weighted average 
number of ordinary shares in issue (the denominator)  during the year. 

 

 

 

 

 

Bank

Group

For the year ended 31 December 

Note

2023

2022

2023

2022

Total dividend allocated to shareholder during  
the year (LKR '000)

 173,205 

 346,410 

 173,205 

 346,410 

Weighted average number of ordinary shares in issue

20.1.1

 25,000,000 

 25,000,000 

 25,000,000 

 25,000,000 

Dividend per share (LKR)

 6.93 

 13.86 

 6.93 

 13.86 

21

Analysis of financial instruments by measurement basis 

All financial assets and liabilities are measured under the  following headings as per the SLFRS 9 - “Financial Instruments”.

21.1  Bank  

As at 31 December 

2023

 Fair value

through profit

or loss 

 Fair value

through 

OCI 

  Amortised  

cost 

 Total 

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Financial assets

Cash and cash equivalents

 - 

 - 

 135,550,505 

 135,550,505 

Balances with Central Banks

 - 

 - 

 34,932,639 

 34,932,639 

Placements with banks

 - 

 - 

 74,966,171 

 74,966,171 

Securities purchased under resale agreements

 - 

 - 

 3,711,918 

 3,711,918 

Derivative financial instruments

 20,525,840 

 - 

 - 

 20,525,840 

Loans and advances

 - 

 - 

 2,209,061,924 

 2,209,061,924 

Debt instruments

 38,411,078 

 42,437,931 

 1,653,728,403 

 1,734,577,412 

Equity instruments

 2,231,452 

 7,096,067 

 - 

9,327,519

Total financial assets

 61,168,370 

 49,533,998 

 4,111,951,560 

 4,222,653,928

As at 31 December 

2023

 

 Fair value

through profit

or loss 

  Amortised  

cost 

 Total 

LKR ‘000

LKR ‘000

LKR ‘000

Financial liabilities

Due to banks

 - 

 3,047,732 

 3,047,732 

Securities sold under repurchase agreements

 - 

 78,463,070 

 78,463,070 

Derivative financial instruments

 2,169,202 

 - 

 2,169,202 

Financial liabilities at amortised cost

Due to depositors

 - 

 3,882,232,323 

 3,882,232,323 

Other borrowings

 - 

 33,666,236 

 33,666,236 

Subordinated liabilities

 - 

 64,691,810 

 64,691,810 

Total financial liabilities

 2,169,202 

 4,062,101,171 

 4,064,270,373 

As at 31 December 

2022

 Fair value

through profit

or loss 

 Fair value

through 

OCI 

  Amortised  

cost 

 Total 

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Financial assets

Cash and cash equivalents

 - 

 - 

 128,401,532 

 128,401,532 

Balances with Central Banks

 - 

 - 

 70,494,529 

 70,494,529 

Placements with banks

 - 

 - 

 16,459,303 

 16,459,303 

Securities purchased under resale agreements

 - 

 - 

 1,480,403 

 1,480,403 

Derivative financial instruments

 57,155,486 

 - 

 - 

 57,155,486 

Loans and advances

 - 

 - 

 2,325,594,329 

 2,325,594,329 

Debt instruments

 7,892,241 

 3,361,267 

 1,555,897,307 

 1,567,150,815 

Equity instruments

 2,387,814 

 5,329,535 

 - 

 7,717,349 

Total financial assets

 67,435,541 

 8,690,802 

 4,098,327,403 

 4,174,453,746 

As at 31 December 

2022

 

 Fair value

through profit

or loss 

  Amortised  

cost 

 Total 

LKR ‘000

LKR ‘000

LKR ‘000

Financial liabilities

Due to banks

 - 

 11,514,897 

 11,514,897 

Securities sold under repurchase agreements

 - 

 180,218,543 

 180,218,543 

Derivative financial instruments

 921,033 

 - 

 921,033 

Financial liabilities at amortised cost

Due to depositors

 - 

 3,334,774,261 

 3,334,774,261 

Other borrowings

 - 

 390,489,543 

 390,489,543 

Subordinated liabilities

 - 

 63,758,191 

 63,758,191 

Total financial liabilities

 921,033 

 3,980,755,435 

 3,981,676,468 

21.2  Group 

As at 31 December 

2023

 Fair value

through profit

or loss 

 Fair value

through 

OCI 

  Amortised  

cost 

 Total 

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Financial assets

Cash and cash equivalents

 - 

 - 

 137,369,158 

 137,369,158 

Balances with Central Banks

 - 

 - 

 34,932,639 

 34,932,639 

Placements with banks

 - 

 - 

 73,024,979 

 73,024,979 

Securities purchased under resale agreements

 - 

 - 

 3,695,392 

 3,695,392 

Derivative financial instruments

 20,525,840 

 - 

 - 

 20,525,840 

Loans and advances

 - 

 - 

 2,240,611,228 

 2,240,611,228 

Debt instruments

 46,236,604 

 42,524,390 

 1,660,012,978 

 1,748,773,972 

Equity instruments

 2,594,267

 9,675,295 

 - 

 12,269,562 

Total financial assets

 69,356,711 

 52,199,685 

 4,149,646,374 

 4,271,202,770 

As at 31 December 

2023

 

 Fair value

through profit

or loss 

  Amortised  

cost 

 Total 

LKR ‘000

LKR ‘000

LKR ‘000

Financial liabilities

Due to banks

 - 

 3,162,463 

 3,162,463 

Securities sold under repurchase agreements

-

 77,829,770 

 77,829,770 

Derivative financial instruments

 2,169,202 

 - 

 2,169,202 

Financial liabilities at amortised cost

Due to depositors

 - 

 3,909,580,686 

 3,909,580,686 

Other borrowings

 - 

 35,592,741 

 35,592,741 

Debt securities issued

 - 

 730,839 

 730,839 

Subordinated liabilities

 - 

 64,437,320 

 64,437,320 

Total financial liabilities

 2,169,202 

 4,091,333,819 

 4,093,503,021 

OVERVIEW

LEADERSHIP  

INSIGHTS

OUR

STRATEGY

OUR 

PERFORMANCE

STAKEHOLDER 

OUTCOMES

GOVERNANCE

FINANCIAL 

REPORTS

COMPLIANCE 

ANNEXES

SUPPLEMENTARY 

INFORMATION

BANK OF CEYLON 

A N N U A L   R E P O R T   2 0 2 3

208

As at 31 December 

2022

 Fair value

through profit

or loss 

 Fair value

through 

OCI 

  Amortised  

cost 

 Total 

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Financial assets

Cash and cash equivalents

 - 

 - 

 135,230,827 

 135,230,827 

Balances with Central Banks

 - 

 - 

 70,494,529 

 70,494,529 

Placements with banks

 - 

 - 

 17,811,665 

 17,811,665 

Securities purchased under resale agreements

 - 

 - 

 1,463,368 

 1,463,368 

Derivative financial instruments

 57,155,486 

 - 

 - 

 57,155,486 

Loans and advances

 - 

 - 

 2,355,978,333 

 2,355,978,333 

Debt instruments

 7,954,525 

 3,361,267 

 1,562,373,679 

 1,573,689,471 

Equity instruments

 2,681,665 

 7,388,777 

 - 

 10,070,442 

Total financial assets

 67,791,676 

 10,750,044 

 4,143,352,401 

 4,221,894,121 

As at 31 December 

2022

 

 Fair value

through profit

or loss 

  Amortised  

cost 

 Total 

LKR ‘000

LKR ‘000

LKR ‘000

Financial liabilities

Due to banks

 - 

 11,547,714 

 11,547,714 

Securities sold under repurchase agreements

-

 179,938,744 

 179,938,744 

Derivative financial instruments

 921,033 

 - 

 921,033 

Financial liabilities at amortised cost

Due to depositors

 - 

 3,358,198,424 

 3,358,198,424 

Other borrowings

 - 

 397,083,583 

 397,083,583 

Debt securities issued

 - 

 58,807 

 58,807 

Subordinated liabilities

 - 

 63,498,599 

 63,498,599 

Total financial liabilities

 921,033 

 4,010,325,871 

 4,011,246,904 

NOTES TO THE FINANCIAL STATEMENTS

22

Cash and cash equivalents

Accounting policy

Cash and cash equivalents include local and foreign currency notes and coins in hand, unrestricted balances held with central banks, 
balances with other banks and highly liquid financial assets with original maturities of less than seven days, which are subject to 
insignificant risk of changes in their fair value and are used by the Group to manage its short-term commitments. Cash and cash 
equivalents are carried at amortised cost. The losses arising from impairment are recognised in “Impairment charge/ (reversal) for 
loans and other losses” (Note 14) in the Statement of Profit or Loss.

Bank

Group

As at 31 December

Note

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Local currency in hand

 58,778,807 

 52,787,832 

 59,188,748 

 53,079,306 

Foreign  currency in hand

 3,854,357 

 4,903,650 

 3,869,630 

 4,903,650 

Balances with banks

 22,025,466 

 41,947,117 

 23,418,948 

 42,335,121 

Money at call and short notice

 50,954,466 

 28,787,088 

 50,954,466 

 34,936,920 

Gross cash and cash equivalents

 135,613,096 

 128,425,687 

 137,431,792 

 135,254,997 

Less - Accumulated impairment

22.2

 62,591 

 24,155 

 62,634 

 24,170 

Net cash and cash equivalents

 135,550,505 

 128,401,532 

 137,369,158 

 135,230,827 

22.1  Analysis of cash and cash equivalents based on exposure to credit risk

Bank

As at 31 December

2023

2022

Stage 1

Stage 2

Stage 3

Total

Total

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Balances with banks

 22,025,466 

 - 

 - 

 22,025,466 

 41,947,117 

Money at call and short notice

 50,954,466 

 - 

 - 

 50,954,466 

 28,787,088 

 72,979,932 

 - 

 - 

 72,979,932 

 70,734,205 

Less - Accumulated impairment

 62,591 

 - 

 - 

 62,591 

 24,155 

Net cash equivalents

 72,917,341 

 - 

 - 

 72,917,341 

 70,710,050 

Group

As at 31 December

2023

2022

Stage 1

Stage 2

Stage 3

Total

Total

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Balances with banks

 23,418,948 

 - 

 - 

 23,418,948 

 42,335,121 

Money at call and short notice

 50,954,466 

 - 

 - 

 50,954,466 

 34,936,920 

 74,373,414 

 - 

 - 

 74,373,414 

 77,272,041 

Less - Accumulated impairment

 62,634 

 - 

 - 

 62,634 

 24,170 

Net cash equivalents

 74,310,780 

 - 

 - 

 74,310,780 

 77,247,871 

22.2  Movement in provision for impairment during the year

Bank

Group

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Movement in Stage 1 impariment

Balance as at 1 January 

 24,155 

 12,203 

 24,170 

 13,814 

Charge/(write back) to income statement

 38,436 

 11,952 

 38,436 

 10,356 

Other movements

 - 

 - 

 28 

 - 

 Balance as at 31 December

 62,591 

 24,155 

 62,634 

 24,170 

Bank

Group

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Movement in total impariment

Balance as at 1 January 

 24,155 

 12,203 

 24,170 

 13,814 

Charge/(write back) to income statement

 38,436 

 11,952 

 38,436 

 10,356 

Other movements

 - 

 - 

 28 

 - 

 Balance as at 31 December

 62,591 

 24,155 

 62,634 

 24,170 

23

Balances with Central Banks

Accounting policy

Balances with Central Banks are carried at amortised cost in the Statement of Financial Position

Bank

Group

As at 31 December

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Statutory balances with Central Banks

Central Bank of Sri Lanka

 25,082,652 

 63,270,482 

 25,082,652 

 63,270,482 

Other Central Banks

 9,849,987 

 7,224,047 

 9,849,987 

 7,224,047 

Total balances with Central Banks

 34,932,639 

 70,494,529 

 34,932,639 

 70,494,529 

23.1  Central Bank of Sri Lanka (CBSL)

In terms of the provisions of Section 93 of the Monetary Law Act No. 58 of 1949, the Bank is required to maintain a cash reserve  with 
Central Bank of Sri Lanka. The minimum cash reserve requirement as of 31 December 2023 was 2.0% (2022 - 4.0%) of Sri Lankan 
Rupee deposit liabilities. There is no reserve requirement for foreign currency deposit liabilities maintained by domestic branches and 
the deposit liabilities of the Off-shore Banking Division in Sri Lanka (2022 - Nil).

23.2  Reserve Bank of India (RBI)

In terms of the provisions of Section 42 (1) of the Reserve Bank of India (RBI) Act No. 02 of 1934, the branch in Chennai is required 
to maintain a cash reserve with RBI. The minimum cash reserve as of 31 December 2023 was 4.5% on its demand and term deposit 
liabilities. (2022 - 4.5%)

23.3  Maldives Monetary Authority (MMA)

In accordance with the prevailing regulations of Maldives Monetary Authority (MMA), the branch in Maldives is required to maintain a 
reserve deposit based on 10.0% of the branch’s commercial deposits and liabilities to the public in the Maldives in Maldivian Rufiyaa 
and 10.0% of the branch’s commercial deposits and liabilities to the public in the Maldives in United States Dollar. (2022 - 10.0% for 
Maldivian Rufiyaa and 10.0% for United States Dollar seperately)

NOTES TO THE FINANCIAL STATEMENTS

23.4  Central Bank of Seychelles (CBS)

In accordance with the regulations of Central Bank of Seychelles, the branch in Seychelles is required to maintain a reserve deposit 
based on 13.0% on Seychelles rupee deposits of the branch’s commercial deposits liabilities to the public in Seychelles and 13.0% 
for foreign currency deposits of the branch’s commercial deposits liabilities to the public in Seychelles. (2022 - 13.0% for Seychelles 
Rupee and 13.0% for foreign currency deposits).

24

Placements with banks

Accounting policy

Placements with banks include balances with other banks with original maturities of more than seven days which are non-derivative 
financial assets with fixed or determinable payments that are not quoted in an active market, other than: 

 

•   Those that intends to sell immediately or in the near term and those that the Bank, upon  initial recognition, designates as at fair 

value through profit or loss 

 

 

 

 

 

•   Those that upon initial recognition, designates as fair value through other comprehensive income   

 

•   Those for which may not recover substantially all of its initial investment, other than  due to credit deterioration        

Placement with banks are initially measured at fair value. After initial measurement, they are subsequently measured at amortised 
cost using the Effective Interest Rate (EIR), less allowance for impairment. Interest income from placement with banks is included in 
“Interest income” (Note 8.1) in the Statement of Profit or Loss. The losses arising from impairment are recognised in “Impairment 
charge/ (reversal) for loans and other losses” (Note 14) in the Statement of Profit or Loss. Certain placements with banks are written 
off when they are determined to be uncollectible.

Bank

Group

As at 31 December

Note

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Within Sri Lanka

 2,381,765 

 680,503 

 2,381,765 

 784,185 

Outside Sri Lanka

 72,629,185 

 16,098,749 

 70,687,993 

 17,347,429 

Gross placements with banks

 75,010,950 

 16,779,252 

 73,069,758 

 18,131,614 

Less - Accumulated impairment 

24.2

 44,779 

 319,949 

 44,779 

 319,949 

Net placements with banks

 74,966,171 

 16,459,303 

 73,024,979 

 17,811,665 

24.1  Analysis of placements with banks based on exposure to credit risk

Bank

As at 31 December

2023

2022

Stage 1

Stage 2

Stage 3

Total

Total

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Within Sri Lanka

 2,381,765 

 - 

 - 

 2,381,765 

 680,503 

Outside Sri Lanka

 72,629,185 

 - 

 - 

 72,629,185 

 16,098,749 

 75,010,950 

 - 

 - 

 75,010,950 

 16,779,252 

Less - Accumulated impairment

 44,779 

 - 

 - 

 44,779 

 319,949 

Net placements with banks

 74,966,171 

 - 

 - 

 74,966,171 

 16,459,303 

Group

As at 31 December

2023

2022

Stage 1

Stage 2

Stage 3

Total

Total

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Within Sri Lanka

 2,381,765 

 - 

 - 

 2,381,765 

 784,185 

Outside Sri Lanka

 70,687,993 

 - 

 - 

 70,687,993 

 17,347,429 

 73,069,758 

 - 

 - 

 73,069,758 

 18,131,614 

Less - Accumulated impairment

 44,779 

 - 

 - 

 44,779 

 319,949 

Net placements with banks

 73,024,979 

 - 

 - 

 73,024,979 

 17,811,665 

24.2  Movement in provision for impairment during the year

Bank

Group

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Movement in Stage 1 impairment

Balance as at 1st January

 319,949 

 533 

 319,949 

 2,601 

Charge/ (reversal) during the year

 (275,170)

 319,416 

 (275,170)

 317,348 

Balance as at 31 December

 44,779 

 319,949 

 44,779 

 319,949 

Bank

Group

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Movement in total Impairment

Balance as at 1st January

 319,949 

 533 

 319,949 

 2,601 

Charge/ (reversal) during the year

 (275,170)

 319,416 

 (275,170)

 317,348 

Balance as at 31 December

 44,779 

 319,949 

 44,779 

 319,949 

25

Securities purchased under resale agreements

Accounting policy

Securities purchased under resale agreements (reverse repos) are  purchased  with an agreement to  sell them at a higher price at 
a specific future date. The consideration paid and accrued interest (measured by using the EIR) are recorded in the Statement of 
Financial Position, reflecting the transaction’s economic substance as an advance granted by the Group. The difference between the 
purchase price and resale price is recognised as ”Interest income” (Note 8.1) and is amortised over the life of the agreement.

Bank

Group

As at 31 December

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

With banks

 1,699,302 

 1,480,403 

 1,682,776 

 1,463,368 

With customers

 2,012,616 

 - 

 2,012,616 

 - 

Total securities purchased under resale agreements

 3,711,918 

 1,480,403 

 3,695,392 

 1,463,368 

26

Derivative financial instruments

Accounting policy

Derivatives are financial instruments that derive their value in response to changes in interest rates, financial instrument prices, 
commodity prices, foreign exchange rates, credit risk, indices etc. Derivatives are categorised as trading unless they are designated 
as hedging instruments. All derivatives are initially recognised and subsequently measured at fair value, with all revaluation gains 
or losses recognised in the Statement of Profit or Loss under “Net gains/ (losses) from trading “ (Note 10). Derivatives are recorded 
at fair value and carried as assets when their fair value is positive and as liabilities when their fair value is negative. Fair value is 
determined using the forward market rates ruling  on the reporting date.

Bank

Group

As at 31 December

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Foreign currency derivatives

Forward exchange contracts

 4,415,152 

 3,045 

 4,415,152 

 3,045 

Currency SWAPs

 16,110,688 

 57,152,441 

 16,110,688 

 57,152,441 

Total derivative financial instruments

 20,525,840 

 57,155,486 

 20,525,840 

 57,155,486 

27

Financial assets recognised through profit or loss  - measured at fair value

Accounting policy

Financial instruments are classified as financial assets measured at fair value through profit or loss if they have been acquired 
principally for the purpose of selling or repurchasing in the near term or holds as a part of a portfolio that is managed together for 
short term profit or position taking. Further as per SLFRS 9 - “Financial Instruments” financial assets recognised through profit or loss 
includes all financial assets other than those classified under FVTOCI and amortised cost.

All financial assets under this category are initially and subsequently measured at fair value. Upon initial recognition, transaction cost 
are directly attributable to the acquisition are recognised in the Statement of Profit or Loss. Interest income is recorded in “Interest 
income” (Note 8.1) according to the terms of the contract. Dividend are recognised in “Net gains/ (losses) from trading” (Note 10). 
Changes in fair value are recognised in “Net fair value gains/ (losses) from financial instruments at fair value through profit or loss” 
(Note 11).

Bank

Group

As at 31 December

Note

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Measured at fair value 
Sri Lanka Government Securities

Treasury bills

 33,975,090 

 3,408,566 

 33,975,090 

 3,408,566 

Treasury bonds

 69,691 

 459,119 

 7,876,803 

 459,119 

Quoted equities

27.2

 2,231,452 

 2,387,814 

 2,594,267 

 2,681,665 

Units in unit trusts

27.3

 4,366,297 

 4,024,556 

 4,384,711 

 4,086,840 

Financial assets recognised through profit or loss 

 40,642,530 

 10,280,055 

 48,830,871 

 10,636,190 

27.1  By currency

Bank

Group

As at 31 December

2023

2022

2023

2022

LKR ‘000

LKR ‘000

LKR ‘000

LKR ‘000

Sri Lankan Rupee

 40,642,530 

 10,280,055 

 48,830,871 

 10,636,190 

Total

 40,642,530 

 10,280,055 

 48,830,871 

 10,636,190 

27.2  Quoted equities

27.2.1 Sector wise composition of quoted equities

Bank

As at 31 December

2023

2022

Sector

Cost of

investment

Market 

Value

Sector wise

composition

of market

value

Cost of

investment

Market 

Value

Sector wise

composition

of market

value

LKR ‘000

LKR ‘000

% 

LKR ‘000

LKR ‘000

% 

Banks

 4,273 

 3,588 

0.2

 9,902 

 5,253 

0.2

Capital goods

 1,160,694 

 874,072 

39.2

 1,551,926 

 1,085,204 

45.4

Consumer durables and apparel

 123,565 

 87,847 

3.9

 144,930 

 87,402 

3.7

Consumer services

 668,914 

 374,801 

16.8

 697,470 

 312,240 

13.1

Diversified financials

 136,633 

 53,203 

2.4

 107,566 

 23,524 

1.0

Energy

 70,259 

 40,408 

1.8

 142,739 

 34,547 

1.4

Food and staples retailing

 - 

 - 

 - 

 23,200 

 23,475 

1.0

Food, beverage and tobacco

 483,623 

 328,790 

14.7

 554,882 

 319,510 

13.4

Materials

 366,257 

 219,266 

9.8

 423,762 

 225,475 

9.4

Real estate

 20,981 

 14,367 

0.6

 20,981 

 14,271 

0.6

Retailing

 160,669 

 83,406 

3.7

 160,669 

 92,487 

3.9

Telecommunication services

 7,496 

 19,881 

0.9

 7,496 

 14,552 

0.6

Transportation

 200,963 

 87,719 

3.9

 200,963 

 111,601 

4.7

Utilities

 62,026 

 44,104 

2.1

 62,026 

 38,273 

1.6

Quoted equity bank [Note 27.2.2]

 3,466,353 

 2,231,452 

 100.0 

 4,108,512 

 2,387,814 

100.0

Group

As at 31 December

2023

2022

Sector

Cost of

investment

Market 

Value

Sector wise

composition

of market

value

Cost of

investment

Market 

Value

Sector wise

composition

of market

value

LKR ‘000

LKR ‘000

% 

LKR ‘000

LKR ‘000

% 

Banks

 4,543 

 3,823 

0.1

 9,902 

 5,253 

0.2

Capital goods

 1,320,944 

 973,116 

37.5

 1,681,285 

 1,153,085 

43.0

Commercial & professional services

 2,468 

 1,892 

0.1

 693 

 512 

0.0

Consumer durables and apparel

 136,306 

 95,568 

3.7

 154,544 

 92,873 

3.5

Consumer services

 749,472 

 444,827 

17.1

 767,267 

 365,083 

13.6

Diversified financials

 214,330 

 90,430 

3.5

 185,302 

 61,155 

2.3

Diversified holdings

 4,621 

 3,892 

0.2

 - 

 - 

-

Energy

 70,259 

 40,408 

1.6

 144,615 

 35,633 

1.3

Food and staples retailing

 1,601 

 1,226 

 0.0 

 24,562 

 24,458 

0.9

Food,beverage and tobacco

 571,953 

 370,293 

14.3

 621,800 

 361,749 

13.5

Health care equipment and services

 2,351 

 2,110 

0.1

 669 

 526 

 0.0 

Insurance

 5,633 

 3,725 

0.1

 10,683 

 11,232 

0.4

Materials

 429,421 

 264,083 

10.2

 472,128 

 252,995 

9.4

Real estate

 41,085 

 25,415 

 1.0 

 40,412 

 24,700 

0.9

Retailing

 168,092 

 88,129 

3.4

 166,860 

 96,396 

3.6

Software and services

 1,362 

 748 

 0.0 

 1,277 

 1,020 

 0.0 

Telecommunication services

 7,496 

 19,881 

0.8

 7,496 

 14,552 

0.5

Transportation

 217,899 

 97,459 

3.8

 217,454 

 123,536 

4.6

Utilities

 87,945 

 67,242 

2.6

 85,618 

 56,907 

2.1

Quoted equity group [Note 27.2.3]

 4,037,781 

 2,594,267

100.0

 4,592,567 

 2,681,665 

100.0

27.2.2 Quoted equities-Bank

Bank

As at 31 December

2023

2022

Number of

ordinary

shares

Cost of

investment

 Market

price per

share 

Market

value

Number of

ordinary

shares

Cost of

investment

Market

price per

share

Market

value

 LKR '000 

  LKR  

 LKR '000 

 LKR '000 

LKR 

 LKR '000 

Banks

Hatton National Bank PLC

-

-

-

 - 

 66,584 

 9,902 

 78.90 

 5,253 

Seylan Bank PLC - Non - Voting

 101,073 

 4,273 

 35.50 

 3,588 

-

-

-

-

Total of bank sector

 4,273 

 3,588 

 9,902 

 5,253 

Capital goods

Access Engineering PLC

 2,326,286 

 72,603 

 20.30 

 47,224 

 2,376,286 

 74,164 

 10.70 

 25,426 

Aitken Spence PLC

 766,150 

 75,749 

 116.00 

 88,873 

 2,050,067 

 202,690 

 128.00 

 262,409 

Brown & Company PLC

 234,241 

 38,480 

 100.00 

 23,424 

 234,241 

 38,480 

 118.00 

 27,640 

Central Industries PLC

 66,598 

 6,828 

 87.30 

 5,814 

 - 

 - 

 - 

 - 

Colombo Dockyard PLC

 797,625 

 179,456 

 50.50 

 40,280 

 897,625 

 201,955 

 59.00 

 52,960 

Hayleys PLC

 373,839 

 37,383 

 71.40 

 26,692 

 250,000 

 25,956 

 68.00 

 17,000 

Hemas Holdings 

 1,127,296 

 99,068 

 66.70 

 75,191 

 1,127,296 

 99,068 

 56.40 

 63,579 

John Keells Holdings PLC 

 2,465,472 

 412,087 

 191.00 

 470,905 

 4,088,677 

 683,389 

 135.25 

 552,994 

Lanka Walltile PLC

 249,735 

 12,313 

 42.20 

 10,539 

 - 

 - 

 - 

 - 

Lankem Ceylon PLC

 72,400 

 32,702 

 64.50 

 4,670 

 72,400 

 32,702 

 91.20 

 6,603 

Renuka Holdings PLC

 1,287,089 

 40,626 

 12.70 

 16,346 

 1,255,887 

 40,123 

 13.80 

 17,331 

Royal Ceramics Lanka PLC

 850,000 

 64,218 

 26.40 

 22,440 

 850,000 

 64,218 

 28.30 

 24,055 

The Colombo Fort Land & Building PLC

 149,500 

 10,307 

 30.90 

 4,620 

 149,500 

 10,307 

 28.30 

 4,231 

UNISYST Engineering PLC

 1,673,758 

 27,116 

 5.80 

 9,708 

 1,673,758 

 27,116 

 5.70 

 9,540 

Vallibel One PLC

 712,143 

 51,758 

 38.40 

 27,346 

 712,143 

 51,758 

 30.10 

 21,436 

Total of capital goods sector

 1,160,694 

 874,072 

 1,551,926 

 1,085,204 

Consumer durables and apparel

Ambeon Holdings PLC

 385,000 

 23,273 

 34.50 

 13,283 

 385,000 

 23,273 

 35.30 

 13,591 

Hayleys Fabric PLC

 505,325 

 21,138 

 40.50 

 20,466 

 1,259,527 

 49,543 

 22.60 

 28,465 

Hela Apparel Holdings PLC

 548,400 

 8,226 

 5.00 

 2,742 

 548,400 

 8,226 

 8.50 

 4,661 

Regnis Lanka PLC

 300,000 

 25,500 

 39.90 

 11,970 

 300,000 

 25,500 

 42.10

 12,630 

Teejay Lanka PLC

 1,085,000 

 45,428 

 36.30 

 39,386 

 885,000 

 38,388 

 31.70 

 28,055 

Total of consumer durables and  

apparel sector

 123,565 

 87,847 

 144,930 

 87,402 

Consumer services

Asian Hotels and Properties PLC

 2,367,741 

 225,788 

 58.00 

 137,329 

 2,367,741 

 225,788 

 37.40 

 88,554 

Aitken Spence Hotel Holdings PLC

 2,527,424 

 230,843 

 63.00 

 159,228 

 2,547,424 

 232,670 

 50.80 

 129,409 

Citrus Leisure PLC

 100,000 

 10,112 

 5.60 

 560 

 100,000 

 10,112 

 6.00 

 600 

Eden Hotel Lanka PLC

 775,550 

 41,864 

 10.10 

 7,833 

 775,550 

 41,864 

 17.60 

 13,650 

Hayleys Leisure PLC

 686,139 

 30,665 

 21.00 

 14,409 

 1,186,240 

 53,020 

 21.10 

 25,030 

Tal Lanka Hotels PLC

 387,400 

 26,014 

 19.00 

 7,361 

 447,400 

 30,043 

 16.40 

 7,337 

Tangerine Beach Hotels PLC

 50,000 

 5,056 

 52.50 

 2,625 

 50,000 

 5,056 

 59.10 

 2,955 

The Fortress Resorts PLC

 1,451,100 

 50,165 

 18.50 

 26,845 

 1,461,100 

 50,510 

 15.90 

 23,231 

Trans Asia Hotels PLC

 477,200 

 48,407 

 39.00 

 18,611 

 477,200 

 48,407 

 45.00 

 21,474 

Total of consumer services sector

 668,914 

 374,801 

 697,470 

 312,240 

Bank

As at 31 December

2023

2022

Number of

ordinary

shares

Cost of

investment

 Market

price per

share 

Market

value

Number of

ordinary

shares

Cost of

investment

Market

price per

share

Market

value

 LKR '000 

  LKR  

 LKR '000 

 LKR '000 

LKR 

 LKR '000 

Diversified financials

Ceylon Guardian Investment Trust PLC

 107,248 

 32,506 

 83.30 

 8,934 

 107,248 

 32,506 

 62.80 

 6,735 

Ceylon Investment PLC

 538,124 

 75,061 

 45.00 

 24,216 

 538,124 

 75,060 

 31.20 

 16,789 

Commercial Credit and Finance PLC

 300,000 

 10,244 

 29.10 

 8,730 

-

-

-

-

First Capital Holdings PLC

 157,382 

 7,785 

 28.10 

 4,422 

-

-

-

-

First Capital Treasuries PLC

 274,936 

 11,037 

 25.10 

 6,901 

-

-

-

-

Total of diversified financials sector

 136,633 

 53,203 

 107,566 

 23,524 

Energy

Laugfs Gas PLC - Non-voting

 1,683,646 

 70,259 

 24.00 

 40,408 

 3,420,538 

 142,739 

 10.10 

 34,547 

Total of energy sector

 70,259 

 40,408 

 142,739 

 34,547 

Food and staples retailing

Cargills (Ceylon) PLC

-

-

-

 - 

 100,000 

 23,200 

 234.75 

 23,475 

Total of food and staples retailing sector

 - 

 - 

 23,200 

 23,475 

Food, beverage and tobacco

Bukit Darah PLC

 69,257 

 48,762 

 385.00 

 26,664 

 119,257 

 83,965 

 291.75 

 34,793 

Carson Cumberbatch PLC

 313,352 

 141,328 

 242.25 

 75,910 

 313,352 

 141,328 

 269.75 

 84,527 

Ceylon Tobacco Company PLC

 141,887 

 135,865 

 953.75 

 135,325 

 143,175 

 137,098 

 625.00 

 89,484 

Horana Plantations PLC

 465,700 

 39,720 

 41.70 

 19,420 

 465,700 

 39,720 

 61.90 

 28,827 

Kahawatte Plantations PLC

 371,164 

 15,014 

 16.00 

 5,939 

 371,164 

 15,013 

 24.50 

 9,094 

Kotagala Plantations PLC

 729,997 

 34,709 

 6.20 

 4,526 

 729,997 

 34,709 

 7.70 

 5,621 

Lucky Lanka Milk Processing PLC -  
Non-voting

 - 

 - 

-

 - 

 91,900 

 276 

 0.80 

 74 

Lucky Lanka Milk Processing PLC - Voting

 - 

 - 

-

 - 

 1,000,000 

 6,000 

 1.10 

 1,100 

Melstacorp PLC

 - 

 - 

-

 - 

 713,504 

 41,825 

 46.20 

 32,964 

Sunshine Holdings PLC

 1,196,198 

 68,225 

 51.00 

 61,006 

 949,010 

 54,948 

 34.80 

 33,026 

Total of food, beverage and  

tobacco sector

 483,623 

 328,790 

 554,882 

 319,510 

Materials

Alumex PLC

 2,254,360 

 34,864 

 8.10 

 18,260 

 2,254,360 

 34,864 

 7.20 

 16,231 

Chemanex PLC

 118,179 

 18,563 

 68.60 

 8,107 

 118,179 

 18,563 

 72.00 

 8,509 

Chevron Lubricants Lanka PLC

 1,272,121 

 161,138 

 90.30 

 114,873 

 1,272,121 

 161,138 

 96.50 

 122,760 

CIC Holdings PLC - Non-voting

 110,200 

 6,071 

 42.50 

 4,684 

-

-

-

 - 

Dipped Products PLC

 676,913 

 39,302 

 27.90 

 18,886 

 676,913 

 39,302 

 29.10 

 19,698 

Lanka Cement PLC

 - 

 - 

 - 

 - 

 7,265,828 

 63,576 

 2.50 

 18,165 

Swisstek (Ceylon) PLC

 567,798 

 26,441 

 15.60 

 8,858 

 567,798 

 26,441 

 15.70 

 8,914 

Tokyo Cement Co Ltd

 1,199,941 

 79,878 

 38.00 

 45,598 

 1,199,941 

 79,878 

 26.00 

 31,198 

Total of materials sector

 366,257 

 219,266 

 423,762 

 225,475 

Bank

As at 31 December

2023

2022

Number of

ordinary

shares

Cost of

investment

 Market

price per

share 

Market

value

Number of

ordinary

shares

Cost of

investment

Market

price per

share

Market

value

 LKR '000 

  LKR  

 LKR '000 

 LKR '000 

LKR 

 LKR '000 

Real estate

Overseas Realty (Ceylon) PLC

 957,794 

 20,981 

 15.00 

 14,367 

 957,794 

 20,981 

 14.90 

 14,271 

Total of real estate sector

 20,981 

 14,367 

 20,981 

 14,271 

Retailing

Diesel and Motor Engineering PLC

 61,054 

 63,661 

 511.50 

 31,229 

 61,054 

 63,661 

 599.00 

 36,571 

Hunters & Company PLC

 17,989 

 14,552 

 611.25 

 10,996 

 17,989 

 14,552 

 707.00 

 12,718 

John Keells PLC

 250,200 

 22,758 

 64.20 

 16,063 

 250,200 

 22,758 

 65.10 

 16,288 

Odel PLC

 222,295 

 9,325 

 14.00 

 3,112 

 222,295 

 9,325 

 17.30 

 3,846 

R I L Property PLC

 2,478,566 

 34,176 

 5.10 

 12,641 

 2,478,566 

 34,176 

 5.70 

 14,128 

Sathosa Motors PLC

 13,194 

 5,111 

 188.00 

 2,480 

 13,194 

 5,111 

 130.25 

 1,719 

United Motors Lanka PLC

 118,500 

 11,086 

 58.10 

 6,885 

 118,500 

 11,086 

 60.90 

 7,217 

Total of retailing sector

 160,669 

 83,406 

 160,669 

 92,487 

Telecommunication services

Sri Lanka Telecom PLC

 214,000 

 7,496 

 92.90 

 19,881 

 214,000 

 7,496 

 68.00 

 14,552 

Total of telecommunication services 

sector

 7,496 

 19,881 

 7,496 

 14,552 

Transportation

Expolanka Holdings PLC

 612,352 

 200,963 

 143.25 

 87,719 

 612,352 

 200,963 

 182.25 

 111,601 

Total of transportation sector

 200,963 

 87,719 

 200,963 

 111,601 

Utilities

Laugfs Power PLC - Non -voting

 947,089 

 - 

 7.80 

 7,387 

 1,297,831 

 - 

 6.80 

 8,825 

Panasian Power PLC

 1,029,200 

 6,402 

 3.40 

 3,499 

 1,029,200 

 6,402 

 3.40 

 3,499 

Resus Energy PLC

 1,066,031 

 37,729 

 15.00 

 15,990 

 1,066,031 

 37,729 

 11.80 

 12,579 

Windforce PLC

 897,300 

 17,895 

 19.20 

 17,228 

 897,300 

 17,895 

 14.90 

 13,370 

Total of utilities sector

 62,026 

 44,104 

 62,026 

 38,273 

Total quoted equities

 3,466,353 

 2,231,452 

 4,108,512 

 2,387,814 

27.2.3 Quoted equities - Group

Group

As at 31 December

2023

2022

Number of

ordinary

shares

Cost of

investment

 Market

price per

share 

Market

value

Number of

ordinary

shares

Cost of

investment

Market

price per

share

Market

value

 LKR '000 

  LKR  

 LKR '000 

 LKR '000 

LKR 

 LKR '000 

Banks

Amana Bank PLC

 102,124 

 270 

 2.30 

 235 

 - 

 - 

 - 

 - 

Hatton National Bank PLC 

 - 

 - 

 - 

 - 

 66,584 

 9,902 

 78.90 

 5,253 

Seylan banks PLC - Non - Voting

 101,073 

 4,273 

 35.50 

 3,588 

 - 

 - 

 - 

 - 

Total of banks sector

 4,543 

 3,823 

 9,902 

 5,253 

Capital goods

Access Engineering PLC

 2,989,254 

 92,315 

 20.30 

 60,682 

 2,851,278 

 90,552 

 10.70 

 30,509 

ACL Cables PLC

 123,750 

 10,507 

 68.80 

 8,514 

 54,000 

 4,980 

 70.10 

 3,785 

Aitken Spence PLC

 766,150 

 75,749 

 116.00 

 88,873 

 2,050,067 

 202,690 

 128.00 

 262,409 

Alpha Fire Service PLC

 21,224 

 732 

 35.90 

 762 

 - 

 - 

 - 

 - 

Brown and Company PLC

 350,737 

 69,817 

 100.00 

 35,074 

 331,079 

 67,958 

 118.00 

 39,067 

Central Industries PLC

 71,908 

 7,325 

 87.30 

 6,278 

 10,000 

 949 

 58.00 

 580 

Colombo Dockyard PLC

 847,625 

 183,952 

 50.50 

 42,805 

 947,625 

 206,451 

 59.00 

 55,910 

E B Creasy & Company PLC

 25,000 

 785 

 22.70 

 568 

 5,000 

 285 

 20.60 

 103 

Hayleys PLC

 602,614 

 57,487 

 71.40 

 43,027 

 324,275 

 33,113 

 68.00 

 22,051 

Hemas Holdings PLC

 1,279,311 

 111,507 

 66.70 

 85,330 

 1,212,811 

 106,862 

 56.40 

 68,403 

John Keells Holdings PLC

 2,486,843 

 415,431 

 191.00 

 474,987 

 4,152,544 

 693,008 

 135.25 

 561,632 

Kelani Cables PLC

 250 

 110 

 244.00 

 61 

 250 

 110 

 259.76 

 65 

Lanka Tiles PLC

 7,500 

 734 

 42.20 

 317 

 7,500 

 734 

 46.10 

 346 

Lanka Walltiles PLC

 249,735 

 12,313 

 42.20 

 10,539 

 - 

 - 

 - 

 - 

Lankem Ceylon PLC

 85,900 

 33,954 

 64.50 

 5,541 

 72,400 

 32,702 

 91.20 

 6,603 

Mackwoods Energy PLC

 1,350,000 

 4,194 

 1.80 

 2,430 

 1,200,000 

 3,848 

 2.50 

 3,000 

MTD Walkers PLC

 165,000 

 6,751 

 - 

 - 

 165,000 

 6,751 

 - 

 - 

Renuka Holdings PLC

 2,128,811 

 55,900 

 12.70 

 27,036 

 2,077,204 

 55,101 

 13.80 

 28,665 

Renuka Holdings PLC -Non-voting

 127 

 2 

 10.79 

 1 

 156 

 2 

 12.80 

 2 

Richard Pieris and Company PLC

 - 

 - 

 - 

 - 

 60,000 

 1,609 

 24.10 

 1,446 

Royal Ceramics Lanka PLC

 1,032,000 

 74,742 

 26.40 

 27,245 

 1,032,000 

 74,742 

 28.30 

 29,206 

The Colombo Fort Land & Building PLC

 149,500 

 10,307 

 30.90 

 4,620 

 149,500 

 10,307 

 28.30 

 4,231 

Unisyst Engineering PLC

 1,808,758 

 27,985 

 5.80 

 10,491 

 1,673,758 

 27,116 

 5.70 

 9,540 

Vallibel One PLC

 987,883 

 68,345 

 38.40 

 37,935 

 848,223 

 61,415 

 30.10 

 25,532 

Total of capital goods sector

 1,320,944 

 973,116 

 1,681,285 

 1,153,085 

Group

As at 31 December

2023

2022

Number of

ordinary

shares

Cost of

investment

 Market

price per

share 

Market

value

Number of

ordinary

shares

Cost of

investment

Market

price per

share

Market

value

 LKR '000 

  LKR  

 LKR '000 

 LKR '000 

LKR 

 LKR '000 

Commercial and professional services

E M L Consultants PLC

 556,585 

 2,468 

 3.40 

 1,892 

 131,352 

 693 

 3.90 

 512 

Total of commercial and professional services

 2,468 

 1,892 

 693 

 512 

Consumer durables and apparel

Ambeon Capital PLC

 500,000 

 5,035 

 7.40 

 3,700 

 80,000 

 1,004 

 9.90 

 792 

Ambeon Holdings PLC

 420,000 

 24,587 

 34.50 

 14,490 

 385,000 

 23,273 

 35.30 

 13,591 

Blue Diamonds Jewellery Worldwide 
PLC-Non-voting

 5,250,000 

 3,125 

 0.20 

 1,050 

 5,250,000 

 3,125 

 0.30 

 1,575 

Hayleys Fabric PLC

 505,325 

 21,138 

 40.50 

 20,466 

 1,359,527 

 53,472 

 22.60 

 30,725 

Hela Apparel Holdings PLC

 891,354 

 11,419 

 5.00 

 4,457 

 641,354 

 9,708 

 8.50 

 5,452 

Regnis Lanka PLC

 300,000 

 25,500 

 39.90 

 11,970 

 300,000 

 25,500 

 42.10 

 12,630 

Singer Industries (Ceylon) PLC

 1,486 

 74 

 33.00 

 49 

 1,486 

 74 

 35.90 

 53 

Teejay Lanka PLC

 1,085,000 

 45,428 

 36.30 

 39,386 

 885,000 

 38,388 

 31.70 

 28,055 

Total of consumer durables and 

apparel sector

 136,306 

 95,568 

 154,544 

 92,873 

Consumer services

Aitken Spence Hotel Holdings PLC

 2,528,424 

 230,903 

 63.00 

 159,291 

 2,547,424 

 232,670 

 50.80 

 129,409 

Anilana Hotels & Properties PLC

 750,000 

 1,106 

 0.90 

 675 

 750,000 

 1,106 

 0.90 

 675 

Asian Hotels and Properties PLC

 2,367,741 

 225,788 

 58.00 

 137,329 

 2,367,741

225,788

 37.40 

 88,554 

Beruwala Resorts PLC

 948,739 

 1,378 

 1.10 

 1,044 

 250,000 

 350 

 1.20 

 300 

Browns Beach Hotel PLC

 - 

 - 

 - 

 - 

 10,000 

 135 

 12.70 

 127 

Citrus Leisure PLC

 461,086 

 12,791 

 5.60 

 2,582 

 251,086 

 11,310 

 6.00 

 1,507 

Eden Hotel Lanka PLC

 953,293 

 46,402 

 10.10 

 9,628 

 903,293 

 45,541 

 17.60 

 15,898 

Galadari Hotels (Lanka) PLC

 25,000 

 356 

 16.00 

 400 

 50,000 

 724 

 12.50 

 625 

Hayleys Leisure PLC

 764,005 

 32,501 

 21.00 

 16,044 

 1,254,106 

 54,708 

 21.10 

 26,462 

Hikkaduwa Beach Resort PLC

 294,353 

 1,852 

 5.20 

 1,531 

 194,353 

 1,252 

 5.00 

 972 

Mahaweli Reach Hotels PLC

 50,000 

 724 

 12.20 

 610 

 - 

 - 

 - 

 - 

Marawila Resorts PLC

 260,000 

 702 

 2.60 

 676 

 - 

 - 

-

 - 

Palm Garden Hotels PLC

 37,500 

 2,489 

 41.20 

 1,545 

 35,000 

 2,341 

 55.30 

 1,936 

Renuka City Hotels PLC

 200 

 72 

 350.25 

 70 

 - 

 - 

 - 

 - 

Renuka Hotels PLC

 5,000 

 480 

 83.70 

 419 

 - 

 - 

 - 

 - 

Serendib Hotels PLC

 25,000 

 378 

 12.50 

 313 

 - 

 - 

 - 

 - 

Tal Lanka Hotels PLC

 404,129 

 26,380 

 19.00 

 7,678 

 447,400 

 30,043 

 16.40 

 7,337 

Tangerine Beach Hotels PLC

 61,500 

 5,848 

 52.50 

 3,229 

 52,500 

 5,256 

 59.10 

 3,103 

The Fortress Resorts PLC

 1,451,100 

 50,165 

 18.50 

 26,845 

 1,461,100 

 50,510 

 15.90 

 23,231 

The Kandy Hotels Company (1938) PLC

 140,006 

 1,285 

 8.40 

 1,176 

 215,006 

 1,972 

 7.20 

 1,548 

The Kingsbury PLC

 3,875,454 

 41,834 

 10.80 

 41,855 

 3,875,454 

 41,834 

 8.50 

 32,941 

The Lighthouse Hotel PLC

 124,467 

 4,704 

 31.50 

 3,921 

 124,467 

 4,704 

 30.00 

 3,734 

Trans Asia Hotels PLC

 477,200 

 48,407 

 39.00 

 18,611 

 477,200 

 48,407 

 45.00 

 21,474 

Waskaduwa Beach Resort PLC

 3,598,067 

 12,927 

 2.60 

 9,355 

 2,100,000 

 8,616 

 2.50 

 5,250 

Total of consumer services sector

 749,472 

 444,827 

 767,267 

 365,083 

Group

As at 31 December

2023

2022

Number of

ordinary

shares

Cost of

investment

 Market

price per

share 

Market

value

Number of

ordinary

shares

Cost of

investment

Market

price per

share

Market

value

 LKR '000 

  LKR  

 LKR '000 

 LKR '000 

LKR 

 LKR '000 

Diversified financials

Asia Asset Finance PLC

 - 

 - 

 - 

 - 

 399,999 

 4,056 

 7.70 

 3,080 

Asia Siyaka Commodities PLC

 20,000 

 90 

 4.10 

 82 

 - 

 - 

 - 

 - 

Associated Motor Finance Company PLC

 - 

 - 

 - 

 - 

 50,000 

 643 

 8.10 

 405 

Capital Alliance PLC

 - 

 - 

 - 

 - 

 30,000 

 669 

 19.90 

 597 

Central Finance Company PLC

 - 

 - 

 - 

 - 

 73,205 

 8,172 

 62.50 

 4,575 

Ceylon Guardian Investment Trust PLC

 107,248 

 32,506 

 83.30 

 8,934 

 107,248 

 32,506 

 62.80 

 6,735 

Ceylon Investment PLC

 610,489 

 82,008 

 45.00 

 27,472 

 603,169 

 81,740 

 31.20 

 18,819 

Commercial Credit and Finance PLC

 300,000 

 10,244 

 29.10 

 8,730 

 - 

 - 

 - 

 - 

First Capital Holdings PLC

 162,382 

 7,951 

 28.10 

 4,563 

 10,000 

 260 

 22.90 

 229 

First Capital Treasuries PLC

 274,936 

 11,037 

 25.10 

 6,901 

 - 

 - 

 - 

 - 

Galle Face Capital Partners PLC

 19,269 

 1,006 

 25.60 

 493 

 32,500 

 1,026 

 16.10 

 523 

Guardian Capital Parteners PLC

 - 

 - 

 - 

 - 

 18,472 

 1,006 

 16.10 

 297 

HNB Finance PLC

 42,500 

 355 

 5.20 

 221 

 25,000 

 259 

 4.20 

 105 

Lanka Credit & Business Finance PLC

 986,561 

 3,802 

 1.70 

 1,677 

 836,561 

 3,408 

 2.30 

 1,924 

LB Finance PLC

 40,000 

 2,947 

 62.30 

 2,492 

 25,000 

 1,867 

 40.00 

 1,000 

LOLC Finance PLC

 978,277 

 17,284 

 4.60 

 4,500 

 898,277 

 16,758 

 8.20 

 7,366 

LOLC Holdings PLC

 57,030 

 35,667 

 355.25 

 20,260 

 25,346 

 20,293 

 398.00 

 10,088 

People's Leasing & Finance PLC

 90,424 

 976 

 10.70 

 968 

 477,768 

 5,186 

 5.00 

 2,389 

Shaw Wallace Investments PLC

 14,115 

 172 

 8.10 

 114 

 20,213 

 238 

 7.10 

 144 

SMB Finance PLC

 1,337,753 

 1,070 

 0.60 

 803 

 - 

 - 

 - 

 - 

SMB Finance PLC-Non-voting

 5,000,000 

 3,000 

 0.30 

 1,500 

 5,000,000 

 3,000 

 0.30 

 1,500 

Softlogic Finance PLC

 122,056 

 4,215 

 5.90 

 720 

 122,056 

 4,215 

 11.30 

 1,379 

Total of diversified financials sector

 214,330 

 90,430 

 185,302 

 61,155 

Diversified holdings

Richard Pieris & Company PLC

 189,854 

 4,621 

 20.50 

 3,892 

 - 

 - 

 - 

 - 

Total of diversified holdings sector

 4,621 

 3,892 

 - 

 - 

Energy

Laugfs Gas PLC - Non-voting

 1,683,646 

 70,259 

 24.00 

 40,408 

 3,528,038 

 144,615 

 10.10 

 35,633 

Total of energy sector

 70,259 

 40,408 

 144,615 

 35,633 

Food and staples retailing

Cargills (Ceylon) PLC

 - 

 - 

 - 

 - 

 100,000 

 23,200 

 234.75 

 23,475 

Tess Agro PLC

 783,224 

 1,098 

 1.10 

 862 

 733,224 

 1,048 

 1.10 

 807 

Tess Agro PLC-Non-voting

 520,353 

 503 

 0.70 

 364 

 220,353 

 314 

 0.80 

 176 

Total of food and staples retailing sector

 1,601 

 1,226 

 24,562 

 24,458 

Group

As at 31 December

2023

2022

Number of

ordinary

shares

Cost of

investment

 Market

price per

share 

Market

value

Number of

ordinary

shares

Cost of

investment

Market

price per

share

Market

value

 LKR '000 

  LKR  

 LKR '000 

 LKR '000 

LKR 

 LKR '000 

Food, beverage and tobacco

Agalawatte Plantations PLC

 178,500 

 8,919 

 32.60 

 5,819 

 147,500 

 7,895 

 31.90 

 4,705 

Browns  Investments PLC

 4,075,000 

 40,827 

 4.70 

 19,153 

 2,440,262 

 29,811 

 7.00 

 17,082 

Bukit Darah PLC

 69,257 

 48,762 

 385.00 

 26,664 

 119,257 

 83,965 

 291.75 

 34,793 

Carson Cumberbatch PLC

 313,352 

 141,328 

 242.25 

 75,910 

 313,352 

 141,328 

 269.75 

 84,527 

Ceylon Cold Stores PLC

 243,008 

 14,871 

 42.40 

 10,304 

 187,000 

 12,200 

 36.90 

 6,900 

Ceylon Tobacco Company PLC

 141,887 

 135,865 

 953.75 

 135,325 

 143,175 

 137,098 

 625.00 

 89,484 

Distilleries Company of Sri Lanka PLC

 - 

 - 

 - 

 - 

 75,000 

 1,512 

 13.20 

 990 

Elpitiya Plantations PLC

 3,830 

 396 

 85.00 

 326 

 3,830 

 396 

 86.00 

 329 

Horana Plantations PLC

 465,700 

 39,720 

 41.70 

 19,420 

 465,700 

 39,720 

 61.90 

 28,827 

HVA Foods PLC

 160,000 

 1,286 

 3.80 

 608 

 160,000 

 1,342 

 3.70 

 592 

Kahawatte Plantations PLC

 376,164 

 15,109 

 16.00 

 6,019 

 371,164 

 15,013 

 24.50 

 9,094 

Kotagala Plantations PLC

 889,997 

 35,924 

 6.20 

 5,518 

 764,997 

 35,014 

 7.70 

 5,890 

Kotmale Holdings PLC

 2,296 

 952 

 390.00 

 895 

 2,296 

 952 

 386.25 

 887 

Lucky Lanka Milk Processing PLC -  
Non-voting

 2,514,546 

 14,958 

 - 

 - 

 91,900 

 276 

 0.80 

 74 

Lucky Lanka Milk Processing PLC - Voting

 - 

 - 

 - 

 - 

 1,000,000 

 6,000 

 1.10 

 1,100 

Melstacorp PLC

 - 

 - 

 - 

 - 

 893,504 

 51,679 

 46.20 

 41,280 

Raigam Wayamba Salterns PLC

 34,249 

 266 

 6.30 

 216 

 50,000 

 391 

 5.80 

 290 

Renuka Agri Foods PLC

 797,356 

 4,545 

 3.90 

 3,110 

 210,000 

 1,436 

 5.60 

 1,176 

Sunshine Holdings PLC

 1,196,198 

 68,225 

 51.00 

 61,006 

 969,221 

 55,772 

 34.80 

 33,729 

Total of food, beverage and tobacco 

sector

 571,953 

 370,293 

 621,800 

 361,749 

Health care equipment and services

Asiri Hospital Holdings PLC

 5,000 

 210 

 24.60 

 123 

 5,000 

 210 

 25.70 

 129 

Asiri Surgical Hospital PLC

 124,860 

 1,685 

 12.90 

 1,611 

 25,000 

 387 

 13.00 

 325 

E - Channelling PLC

 24,000 

 384 

 14.00 

 336 

 - 

 - 

 - 

 - 

Nawaloka Hospitals PLC

 10,000 

 72 

 4.00 

 40 

 10,000 

 72 

 7.20 

 72 

Total of health care equipment and 

services sector

 2,351 

 2,110 

 669 

 526 

Insurance

Arpico Insurance PLC

 10,000 

 300 

 22.50 

 225 

 10,000 

 300 

 22.70 

 227 

Co-Operative Insurance Company PLC

 75,000 

 254 

 2.40 

 180 

 - 

 - 

 - 

 - 

Janashakthi Insurance Company PLC

 - 

 - 

 - 

 - 

 14,634 

 480 

 31.70 

 464 

Softlogic Capital PLC

 370,000 

 3,894 

 6.50 

 2,405 

 1,035,000 

 9,843 

 10.10 

 10,454 

Softlogic Life Insurance PLC

 17,000 

 1,185 

 53.80 

 915 

 1,000 

 60 

 86.60 

 87 

Total of insurance sector

 5,633 

 3,725 

 10,683 

 11,232 

Group

As at 31 December

2023

2022

Number of

ordinary

shares

Cost of

investment

 Market

price per

share 

Market

value

Number of

ordinary

shares

Cost of

investment

Market

price per

share

Market

value

 LKR '000 

  LKR  

 LKR '000 

 LKR '000 

LKR 

 LKR '000 

Materials

Agstar PLC

 110,000 

 1,107 

 8.50 

 935 

 - 

 - 

 - 

 - 

Alumex PLC

 2,986,628 

 43,412 

 8.10 

 24,192 

 2,914,070 

 42,790 

 7.20 

 20,981 

Bogala Graphite Lanka PLC

 44,002 

 3,423 

 50.00 

 2,200 

 39,002 

 3,099 

 45.80 

 1,786 

Chemanex PLC

 118,179 

 18,563 

 68.60 

 8,107 

 118,179 

 18,563 

 72.00 

 8,509 

Chevron Lubricants Lanka PLC

 1,416,521 

 175,563 

 90.30 

 127,912 

 1,341,521 

 168,708 

 96.50 

 129,457 

CIC Holdings PLC-Non-voting

 165,200 

 9,093 

 42.50 

 7,021 

 5,000 

 368 

 55.60 

 278 

Dipped Products PLC

 957,435 

 53,997 

 27.90 

 26,712 

 841,913 

 49,954 

 29.10 

 24,500 

Ex-Pack Corrugated Cartons PLC

 52,820 

 767 

 12.40 

 655 

 47,500 

 752 

 13.10 

 622 

Haycarb PLC

 59,500 

 5,623 

 64.30 

 3,826 

 57,500 

 5,503 

 57.60 

 3,312 

Industrial Asphalts (Ceylon) PLC

 750,000 

 275 

 0.40 

 300 

 500,000 

 200 

 0.30 

 150 

JAT Holdings PLC

 75,000 

 1,374 

 15.30 

 1,148 

 25,000 

 574 

 12.40 

 310 

Lanka Cement PLC

 - 

 - 

 - 

 - 

 7,265,828 

 63,576 

 2.50 

 18,165 

Pelwatte Sugar Industries PLC

 41,600 

 1,799 

 - 

 - 

 68,400 

 2,925 

 - 

 - 

Richered Peries Export PLC

 1,700 

 1,029 

 484.50 

 824 

 - 

 - 

 - 

 - 

Swisstek (Ceylon) PLC

 567,798 

 26,441 

 15.60 

 8,858 

 567,798 

 26,441 

 15.70 

 8,914 

Tokyo Cement Co Ltd

 1,199,941 

 79,878 

 38.00 

 45,598 

 1,285,043 

 83,390 

 26.00 

 33,411 

Tokyo Cement Company (Lanka) PLC-
Non-voting

 152,500 

 7,077 

 38.00 

 5,795 

 100,000 

 5,285 

 26.00 

 2,600 

Total of materials sector

 429,421 

 264,083

 472,128 

 252,995 

Real estate

Colombo  Land and Development 
Company PLC

 82,639 

 2,849 

 17.00 

 1,405 

 77,639 

 2,756 

 15.70 

 1,219 

East West Properties PLC

 585,000 

 6,793 

 7.40 

 4,329 

 500,000 

 6,014 

 8.00 

 4,000 

Lanka Realty Investments PLC

 261,876 

 6,148 

 10.60 

 2,776 

 245,000 

 5,881 

 10.10 

 2,475 

Millennium Housing Developers PLC

 10,000 

 36 

 2.90 

 29 

 - 

 - 

 - 

 - 

Overseas Realty (Ceylon) PLC

 957,794 

 20,981 

 15.00 

 14,367 

 996,735 

 21,577 

 14.90 

 14,851 

Prime Lands Residencies PLC

 150,000 

 1,995 

 6.50 

 975 

 150,000 

 1,995 

 6.50 

 975 

Seylan Developments PLC

 106,500 

 2,283 

 14.40 

 1,534 

 100,000 

 2,189 

 11.80 

 1,180 

Total of real estate sector

 41,085 

 25,415 

 40,412 

 24,700 

Group

As at 31 December

2023

2022

Number of

ordinary

shares

Cost of

investment

 Market

price per

share 

Market

value

Number of

ordinary

shares

Cost of

investment

Market

price per

share

Market

value

 LKR '000 

  LKR  

 LKR '000 

 LKR '000 

LKR 

 LKR '000 

Retailing

Ceylon Tea Brokers PLC

 - 

 - 

 - 

 - 

 35,000 

 176 

 4.20 

 147 

Diesel and Motor Engineering PLC

 61,054 

 63,661 

 511.50 

 31,229 

 61,054 

 63,661 

 599.00 

 36,571 

Hunters and Company PLC

 17,989 

 14,552 

 611.25 

 10,996 

 17,989 

 14,552 

 707.00 

 12,718 

John Keells PLC

 276,198 

 24,687 

 64.20 

 17,732 

 276,198 

 24,687 

 65.10 

 17,980 

Odel PLC

 222,295 

 9,325 

 14.00 

 3,112 

 222,295 

 9,325 

 17.30 

 3,846 

R I L Property PLC

 2,958,566 

 38,828 

 5.10 

 15,089 

 2,818,566 

 37,987 

 5.70 

 16,066 

Sathosa Motors PLC

 13,194 

 5,111 

 188.00 

 2,480 

 13,194 

 5,111 

 130.25 

 1,719 

Singer (Sri Lanka) PLC 

 50,526 

 842 

 12.00 

 606 

 15,751 

 275 

 8.40 

 132 

United Motors Lanka PLC

 118,500 

 11,086 

 58.10 

 6,885 

 118,500 

 11,086 

 60.90 

 7,217 

Total of retailing sector

 168,092 

 88,129 

 166,860 

 96,396 

Software and services

hSenid Business Solutions PLC

 65,000 

 1,362 

 11.50 

 748 

 60,000 

 1,277 

 17.00 

 1,020 

Total of software and services

 1,362 

 748 

 1,277 

 1,020 

Telecommunication services

Sri Lanka Telecom PLC

 214,000 

 7,496 

 92.90 

 19,881 

 214,000 

 7,496 

 68.00 

 14,552 

Total of telecommunication services 

sector

 7,496 

 19,881 

 7,496 

 14,552 

Transportation

Expolanka Holdings PLC

 680,339 

 217,899 

 143.25 

 97,459 

 677,839 

 217,454 

 182.25 

 123,536 

Total of transportation sector

 217,899 

 97,459 

 217,454 

 123,536 

Utilities

Laugfs Power PLC - Non-voting

 1,024,938 

 714 

 7.80 

 7,995 

 1,375,680 

 714 

 6.80 

 9,355 

Lotus Hydro Power PLC

 21,240 

 183 

 8.80 

 187 

 - 

 - 

 - 

 - 

LVL Energy Fund PLC

 250,000 

 1,750 

 5.50 

 1,375 

 - 

 - 

 - 

 - 

Panasian Power PLC

 1,279,200 

 7,660 

 3.40 

 4,349 

 1,279,200 

 7,661 

 3.40 

 4,349 

Resus Energy PLC

 1,321,002 

 41,136 

 15.00 

 19,815 

 1,321,031 

 41,136 

 11.80 

 15,588 

Vallibel Power Erathna PLC

 716,322 

 4,966 

 7.20 

 5,158 

 750,000 

 5,205 

 6.30 

 4,725 

Vidullanka PLC

 1,550,000 

 12,519 

 6.70 

 10,385 

 1,450,000 

 11,885 

 6.10 

 8,845 

Vidullanka PLC-Non-voting

 150,000 

 1,122 

 5.00 

 750 

 150,000 

 1,122 

 4.50 

 675 

Windforce PLC

 897,300 

 17,895 

 19.20 

 17,228 

 897,300 

 17,895 

 14.90 

 13,370 

Total of utilities sector

 87,945 

 67,242 

 85,618 

 56,907 

Total quoted equities

 4,037,781 

 2,594,267

 4,592,567 

 2,681,665