Annual Report 2024/25

A N N U A L R E P O R T 2 0 2 4 / 2 5

VANGUARD

THREE DECADES OF IMPACTFUL TRANSFORMATION

CITIZENS DEVELOPMENT BUSINES S FINANCE PLC

Your Friend

IANfIJAéfi

expansion.

CITIZENS DEVELOPMENT BUSINESS FINANCE PLC

ANNUAL REPORT 2024/25

2

CITIZENS DEVELOPMENT BUSINESS FINANCE PLC

ANNUAL REPORT 2024/25

3

THE ANNUAL REPORT OF THE BOARD OF DIRECTORS

The Directors have pleasure in presenting to the shareholders, the Annual Report and the Audited Financial Statements for the year ended March 31, 2025, of Citizens Development Business Finance PLC (CDB).

This report conforms to the requirements of the Companies Act No. 07 of 2007 (as amended), the Listing Rules of the Colombo Stock Exchange (CSE) (as amended), other applicable laws and regulations, and recommended good governance disclosures.

THE FINANCIAL STATEMENTS

The Financial Statements are certified by the Chief Financial Officer

and recommended by the Audit Committee and approved by the Board of Directors, and signed by the Chairman and the Managing Director, in conformance with the Companies Act No. 07 of 2007. The Board is of the view that the Financial Statements in pages 184-300 adhere to the Sri Lanka Accounting Standards (LKASs and SLFRSs) under the Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995, Companies Act No. 07 of 2007, Finance Business Act No. 42 of 2011, and related amendments, as well as the Listing Rules of the Colombo Stock Exchange (CSE) which include requirements for Related Party Transactions in Section

9.3.2 (c) and (d) and recommended best practices. The Statement of Directors' Responsibility for Financial Reporting on page 173 is an integral part of this Report.

BOARD OF DIRECTORS

Names of the persons holding office as Directors of the Company at the reporting date and the names of persons who ceased to hold office as Directors of the Company during the year, as required by the Section 168

(1) (h) of the Companies Act No. 07 of 2007, are given on pages 112-115 of this Annual Report. As required under Section 223 (1) of the Companies Act, the Company maintains a Register

of Directors and Secretaries which contains information of each Director and the Secretary.

COMPLIANCE

All required payments to the Government, other regulatory bodies, and employees have been made on time, according to the Directors' understanding and belief. The Board of Directors has analysed the Company's business plans and concluded that sufficient resources are in place to sustain operations in the foreseeable future.

Therefore, the Financial Statements of the Company are formulated on the assumption of the Company's continued operation. The Board has considered matters material to the Company and its stakeholders in preparing this Report and acknowledges that reasonable care

has been exercised in the preparation and presentation of this Annual Report, while preserving its integrity.

The detailed disclosure regarding the Company's compliance with the requirements stated in Section 168 of the Companies Act No. 07 of

2007, along with its amendments and other relevant statutes, can be found on pages 125-158 and 311-314 of the Annual Report. The Board of Directors carries out several of its duties and responsibilities through its Board subcommittees to ensure compliance with applicable laws, rules and regulations and the activities carried out during the year can be found on pages 159-172.

The Board affirms that the Annual Report has been prepared in a timely manner as mandated by Sections 166 (1) and 167 (1) of the Companies Act. The Financial Statements of

the Company, covering the period ended on 31 March 2025, including comparative figures for 2023-24, have been duly approved and authorised for release by the Board of Directors.

The necessary copies of the Annual Report will be submitted to the CSE within the legal deadlines, and electronic versions will be made

available on the Company's website at https://www.cdb.lk

REPORTING STANDARDS AND PRINCIPLES

This report has been prepared in accordance with:

• The Companies Act No. 7 of 2007 and subsequent amendments

• The Finance Business Act No.42 of 2011 and directions of the Central Bank of Sri Lanka

• Listing Rules of the CSE

• The Integrated Reporting Framework of 2001

• The GRI standards 2022

RELATED PARTY TRANSACTIONS

As per Section 9.14.8 (Subsections 1 to 4) of CSE Listing Rules, there are no related party transactions which exceed 10 percent of the equity

or 5 percent of the total assets, whichever is lower, and the Company has complied with the requirements of the Listing Rules of the Colombo Stock Exchange on Related Party Transactions. However, the Directors have disclosed the transactions that could be classified as related party transactions which are adopted in the presentation of the Financial Statements and accordingly given

in Note 42 on pages 262 to 263 of this Annual Report and the summary of the said transactions carried out during the Financial Year is presented to the Board on 20 May 2025.

[GRI 2-2, 2-3, 2-4, 2-5]

SCOPE AND BOUNDARY OF SUSTAINABILITY REPORTING

The annual sustainability report covers the period 1 April 2024 to 31 March 2025

Reporting period and frequency

The sustainability reporting extends only to the activities of CDB.

Entities included in the sustainability report

1. Reporting period for financial reporting Same as the sustainability reporting period

2. Publication date of the report 05 June 2025

3. Contact point for questions about the report Laavanya Paheerathan

Company Secretary company.secretary@cdb.lk

Vajeesha Edirisinghe Manager - Sustainability vajeesha.edirisinghe@cdb.lk

Restatements of information made from previous There are no restatements from the previous reporting period of 1 reporting periods April 2024 to 31 March 2025.

Policy and practice for seeking external assurance, including whether and how the highest governance body and senior executives are involved

The policy of the CDB Board is to obtain independent external assurance for the sustainability reporting component for greater credibility and confidence in CDB's sustainability reporting. The external assurance provider is appointed by the Board.

In the 2024/25 financial year, external assurance was obtained for sustainability reporting from Messrs Ernst and Young Chartered Accountants.

1. Location of the external assurance Page No 318-319

2. What has been assured and on what basis Messrs Ernst & Young were engaged to conduct a limited assurance

   engagement, in accordance with the Sri Lanka Standard on Assurance Engagements (SLSAE 3000 - Revised), on CDB's sustainability indicators disclosed in the Integrated Annual Report. The assurance opinion is presented on pages 318-319

3. Relationship between the organisation and the assurance provider

Messrs Ernst and Young Chartered Accountants, are the shareholder approved, external financial auditors of the Company.

There is no further affiliation between CDB and the external assurance provider.

FORWARD-LOOKING STATEMENTS

This Report contains certain forward looking statements regarding the Company's plans, strategy, financial position, and operations. These statements and expectations carry risks and uncertainties given that they are dependent on circumstances that will take place in the future. As such, these factors may cause actual results or developments to deviate materially from CDB's forward- looking statements made at the time of release of our FY2024/25 results. CDB makes no representations or warranty, express or implied, that these forward- looking statements will be achieved. All forward-looking statements are presented without recourse or liability to the Board or other preparers of the Annual Report, given the considerable uncertainty associated with them.

BOARD ACKNOWLEDGEMENT OF THE CONTENTS OF THIS ANNUAL REPORT

As required by Section 168 (1) (k) of the Companies Act No. 07 of 2007, the Board of Directors hereby acknowledges the contents of this Annual Report.

The Board of CDB undertakes full responsibility for the integrity and completeness of this integrated annual report. To the best of our knowledge, this report provides a fair and transparent account of all material issues underlying the sustainability of the Company and complies with Integrated Reporting principles.

THE ANNUAL REPORT OF THE BOARD OF DIRECTORS

The Board of Directors does hereby acknowledge the contents of this Annual Report as per the requirement of Section 168 (1) (k) of the Companies Act No. 07 of 2007. Signed in accordance with the resolution adopted by the Directors.

Alastair Corera Mahesh Nanayakkara

Chairman/ Non-Executive Independent Director Managing Director/ Chief Executive Officer

Senior Prof Sampath Amaratunge Damith Tennakoon

Non-Executive Independent Director Deputy CEO/ Executive Director

Roshan Abeygoonewardena Sasindra Munasinghe

Executive Director Executive Director

Dave De Silva Jagath Abhayaratne

Executive Director Non-Executive Director

Rajitha Perera Samitha Hemachandra

Non-Executive Independent Director Non-Executive Director

Sujeewa Kumarapperuma Senior Prof Prasadini Gamage

Non-Executive Independent Director Non-Executive Independent Director

Jayomi Lokuliyana

Non-Executive Independent Director

05 June 2025 Colombo

PERFORMANCE HIGHLIGHTS

FINANCIAL CAPITAL

Revenue

Rs. 26 Bn

Net Interest Income

Rs. 11 Bn

Profit After Tax

Rs. 4 Bn

Net Interest Margin

7.97%

Cost to Income Ratio

48.40%

EPS

Rs. 56.53

Return on Assets

2.80%

Return on Equity

18.15%

DPS

rs.15.00

Total Assets

Rs. 157 Bn

Loan Book

Rs. 111 Bn

Deposit Base

Rs. 87 Bn

Total Equity

Rs. 24 Bn

NAVPS

Rs. 337.84

MPS (Voting)

Rs. 235.00

90 DPD

6.32%

Total CAR

18.09%

Credit Rating

BBB (lka)/ Stable

HUMAN CAPITAL

Team Members

1,948

Female Representation

35%

Employee Retention Rate

85%

Total Training Hours

153,813

Total Training Investment

Rs. 52 Mn

NATURAL CAPITAL

Energy Efficient Vehicle Portfolio

Rs. 22 Bn

CDB Advance Roof Solar Facility Approvals

Rs. 450 Mn

Total Carbon Footprint (tCO₂e)

50,340

(Scope 1, 2 & 3)

Paper Recycled

3,999 kg

Estimated GHG Emission Reduced Through eShift & Roof Solar (tCO₂e)

3,668

Climate Transition Plan with IFC

Conservation Initiatives

• LIFE

• Life to Our Mangroves

• Life to Our Beaches

• Life to Our Coral Reefs

SOCIAL AND RELATIONSHIP CAPITAL

Customer Satisfaction Score

97.7%

CSI Rating (out of 5)

4.86

Zero Customer Data Breaches New Foreign Funding

USD 5 Mn

Total CSR Investment

Rs 39 Mn

Cultural Partnership: Chitrasena Vajira Dance Foundation

Launch of Wings ecosystem

Key CSR projects

• 22 Smart Computer Labs

• Launch of Sisudiri Scholarship program Season 16 & 17

• SMB Fair

TECHNOLOGY CAPITAL

New Digital Customer Onboarding (CDB Self)

23,500+

Digital Transactions

Rs 50 Bn +

Number of Operational Processes Automated During the Year

14

Recertification of ISO 27001:2022 for

Information Security

Obtaining ISO 22301:2019 for Business Continuity Management

AI-Driven Credit Decisioning

Automated Risk Based Pricing Decisions

Established in 1995, CDB has firmly established itself as a leading force within Sri Lanka's financial services sector, ranking among the top four Non-Bank Financial Institutions (NBFIs) in the country. As a pioneer in technological innovation, CDB has consistently introduced cutting-edge products and services, setting new benchmarks in the NBFI industry. This commitment is deeply embedded in the Company's strategic pillar, the 'Tech Disruption and Sustainability Agenda' (2021-2030).

As we proudly celebrate our 30th anniversary, CDB remains dedicated to delivering lasting value to our stakeholders while playing a meaningful role in the nation's development. Our focus continues to empower rural Micro, Small, and Medium Enterprises (MSMEs), promote gender equity, advance digital inclusion, and champion environmental sustainability - all central to our vision for a resilient and inclusive future.

Purpose

Empowering Aspirations : Goals, hopes, dreams, ambitions; whatever you aspire to achieve,

we exist to elevate your life.

Vision

To be the financial powerhouse that will foster entrepreneurial innovation and workmanship towards

building our Nation's economy to make sustained gains

in living standards of Sri Lankans.

Values

Perseverance

The passion and perseverance of our team has brought CDB to the forefront of the industry and continues to be our driving force.

Empathy

We care for the well-being of our stakeholders, while empowering their aspirations, with an aim of creating a more equitable society. We have never lost sight of our humble beginnings and continue to act with humility in everything we do.

Reliable

While being a respected, responsible, socially and environmentally conscious, public deposit-taking corporate citizen working in an open and transparent manner in all our dealings, we strive

to be the most reliable partner for our stakeholders.

Innovation

We are constantly innovating to stay relevant and valuable to our customers.

We highly value and encourage thinking beyond traditional boundaries, embracing change, and exploring creative ways of empowering the aspirations of all our stakeholders.

CDB's 2021-2030 strategy is driven by a bold aspiration to evolve into a future-ready financial institution by this decade. At its core are two complementary pillars: Tech Disruption and

Sustainability Agenda, which together strengthen our agility and resilience as we pursue our target of a quarter-trillion asset base.

We aim to evolve from a traditional financial services provider into a trusted lifestyle partner, powered by advanced analytics, robust systems, and a purpose-led culture. With a bold David vs. Goliath mindset, we challenge larger incumbents through innovation and determination-staying true to our purpose of Empowering Aspirations.

We have introduced solutions that go beyond business enablement- providing customers with seamless ways to stay connected with

their families and supporting broader financial freedom. As part of our commitment to being a frontrunner in ESG practices, our Sustainability Agenda is anchored on material matters identified through engagement with both internal and external stakeholders. The sustainability pillar consists of two verticals: Net-Zero and Socially Conscious. These verticals aim to support clients in transitioning to a

low-carbon economy, provide access

to value-based solutions, tap into ESG-related opportunities, empower communities, and equip our people with the capabilities to lead these efforts forward.

In response to increasing global concerns around climate change, we have adopted bolder, more decisive actions to embed sustainability into our core business strategy and drive collective impact. Our commitment extends to all stakeholders-from customers to communities-as we support their transition toward a sustainable future. We prioritise financial inclusion and community impact through a range of initiatives and projects, reflecting our deep sense of social responsibility.

A core enabler across both our innovation and sustainability strategies is the synergy between digital transformation and environmental responsibility. This integrated approach allows us to

expand operational capacity without increasing our physical footprint. It also enhances our ability to reach remote and underserved markets- reinforcing our role as a net lender to the rural economy and advancing

our financial inclusion agenda. People centricity remains at the heart of

our business strategy, reflecting our belief in achieving extraordinary results through ordinary people. As a responsible corporate citizen, we remain committed to upholding the

highest standards of compliance with all applicable laws, regulations, and governance practices.

OUR VALUE CREATION JOURNEY

CDB'S INCORPORATION

2001

Strategic refocus with new management team.

2004

Financial turnaround with Profit After Tax of LKR 10 Mn

2007

Registered under Finance Leasing Act

Initiated two flagship community projects:

CDB Sisu Diri Scholarship scheme

CDB Pariganaka Piyasa (in 2017 relaunched as CDB Smart Computer Labs)

2008/09

Major corporate crisis overcome; redefined corporate identity with CDB Small Miracle Plan

2009/10

Became a public deposit-taking institution

Rebranded as independent financial institution with new name, logo, and market positioning

Strategic Plan unveiled targeting balance sheet of LKR 100 Bn

2012/13

First NBFI in Sri Lanka to:

implement core banking platform

enable transactions via SLIPS

launch VISA Debit Card

CDB savings product launched

First ATM installed at Head Office

Initiated Islamic Finance

First international recognition for Annual Report by League of American Communication Professionals USA

2013/14

First foreign line of credit, worth USD 6 Mn, from the Belgian Investment Company for Developing Countries (BIO)

Published first Integrated Annual Report on GRI Index and IIRC guidelines

Operational footprint surpassed 50 outlets

2014/15

Relocating to our own Head Office building

Acquisition of Laughs Capital Ltd under CBSL consolidation plan

2015/16

Company profit after tax reached Rs. 1 Bn.

Total asset base reached Rs. 50 Bn

Became the first ISO 14064- 1 Carbon verified financial institution in South Asia by Sri Lanka Carbon Fund (Pvt) Limited

Received Best Corporate Citizen Sustainability Award

2016/17

Initiated "Act early for Autism" project

Winner of the Best Corporate Citizen Sustainability Award 2016 for best project on "GHG Emission Analysis" 2017/18 : Assets reached Rs. 75 Bn. and profit after tax Rs. 1.4 Bn.

Winner of the Best Corporate Citizen Sustainability Award 2017 for the "Green Ninja Quiz Master 2017" programme

Gold Award for People Development at the SLITAD People Development Awards

Became a member of Biodiversity Sri Lanka (BSL)

2010/11

Listed on the Colombo Stock Exchange

Company profit reached Rs. 0.5 Bn., total asset base reached Rs. 10 Bn.

2017/18

Assets LKR 75 Bn; Profit After Tax LKR 1.4 Bn

Launched Green Quiz -CDB Green Ninja Quiz Master Competition

CDB G squared - GO GREEN CLUB launched to connect Team CDB with nature

• Partnered Chitrasena Vajira Dance Foundation (CVDF) to preserve traditional dance forms

• Initiated Life to Our Coral Reefs for reef restoration, sustainable ecosystem management

  2024/25

• First financial institution in Sri Lanka to disburse NCGI-backed SME loans

• Launched AI-powered credit decisions

• ISO 22301:2019 Certification for Business Continuity Management

2018/19

Profit Before Tax LKR 2 Bn

Foreign funding of USD 60 Mn raised for SMEs

First in Sri Lanka to:

• enable fund transfers via social media (CDB iTransfer)

• launch credit card self-care app (CDB iControl)

• offer online Fixed Deposits (CDB iDeposit)

First online auction through patpat.lk; launch of education, leisure verticals

Launched patpat.lk mobile application

Partnered "LIFE" project to restore degraded fern lands in Halgahawala, Opatha

SMB Friday launched to enhance SME digital presence

Therapeutic play area at Ampara District General Hospital opened

Premier Customer segment launched

Transitioned from traditional Contact Centre to omni-channel Contact Centre

2019/20

Signatory to the United Nations Global Compact

Adapted Robotic Process Automation (RPA) in goal to become Fintech Company

Pragathi Children's Intervention Centre established at Teaching Hospital in Anuradhapura

2020/21

Ranked among the top 25 in the Business Today Top 30 Businesses in Sri Lanka

Among Top 10 Corporate Citizens for the 3rd consecutive year by Ceylon Chamber of Commerce at the Best Corporate Citizens Sustainability Awards 2020

Winner of Excellence in Automation at UiPath Automation Excellence Awards 2020

Initiation of CDB Advance Sustainable Financing vertical

2021/22

Total assets base surpassed Rs. 100 Bn. during the year under review

Overall 1st Runner up of Best Corporate Citizens Sustainability Awards 2021 awarded by Ceylon Chamber of Commerce

Partnered Life to Our Mangroves to restore 10 hectares of degraded mangrove forests in Anawilundawa Wetland Sanctuary

Customer base surpassed 300,000

2023/24

Launched eShift with VEGA Innovations

Pragathi Southern Provincial Autism & Neurodevelopmental Intervention Centre at Karapitiya Teaching Hospital opened

USD 30 Mn loan secured from DFC to support women entrepreneurs, MSMEs, sustainable financing

Regional Office in Kurunegala opened

Launched CDB Self App

Introduced Wings Ecosystem

Partnered IFC to develop Climate Transition Plan for climate resilience

2022/23

Launched Life to Our Beaches

Initiated Automated Credit Decisions

National Winner for "Most Innovative Global Business Service/BPM" at National Ingenuity Awards 2022, hosted by Sri Lanka Association for Software and Services Companies (SLASSCOM)

Winner of "Most Innovative Company of the Year" at Dare to

Dream Awards 2023 Sri Lanka Edition

Excellent performance at National Sales Awards by SLIM with 16 awards including two gold awards

Dear Stakeholders,

On behalf of the Board of Directors, it is my great pleasure to present the Annual Report and Financial Statements of CDB for

the year ended 31 March 2025, and to announce the good news of CDB's

16 ANNUAL REPORT 2024/25

CITIZENS DEVELOPMENT BUSINESS FINANCE PLC

spectacular comeback from the financial-crisis driven downturn of 2022.

PERFORMANCE HIGHLIGHTS

After experiencing a devastating five-year reversal in profitability during 2022/23 in the immediate aftermath of the financial crisis, with financial performance regressing to the

2028-19 levels, CDB has concluded 2024/25 by returning its best financial performance to date!

Your company achieved a net profit of Rs 4 Bn for the year under review, which is a year on year growth of 59%, and a growth of 11% against

its previous best performance of Rs

3.6 Bn in 2021/22. This volte-face at the very start of national economic recovery, indicates on one hand CDB's exceptional resilience, and on the other hand, and more significantly,

CDB's potential for growth when the country's economic growth

momentum accelerates over the next few years.

CDB closed 2024/25 with almost all key financial indicators realigning towards a new, and I believe, more sustainable, growth path. Although the market demand for credit remained fairly subdued for much of the year and the leasing business remained depressed due to vehicle

import restrictions, CDB has recorded a portfolio growth of 29%, to Rs 111 Bn. The return on assets and return on equity picked up from 2.15%

and 13.10%, to 2.80% and 18.15% respectively, with an asset growth of 22% year on year, while total capital adequacy was maintained well above regulatory requirements at 18.09%

While macro environmental improvements were the driving force behind credit growth, I must stress that CDB's internal preparedness

to expand business, was the key to success. It must also be noted that, in addition to substantially better profitability CDB has materially improved its portfolio quality, which

had deteriorated during the period of financial crisis. The NPL ratio at year end was 6.32 %, an improvement of 5.74% compared to March 2024, and this trend has strengthened into the current financial year as well. CDB has also successfully disbursed funds from international funding partners, including the USD 30 mn loan

from the US Development Finance

Corporation (DFC), obtained in the previous financial year. Much of these international funds were channelled towards women entrepreneurs, green financing and MSMEs, directly supporting inclusive economic recovery in the country.

This upturn to CDB's bottomline has generated greater value for shareholders. After stagnating for months, the share price is showing positive movement, moving from Rs

210.00 in March 2024, to Rs 235.00, by end March 2025, and while dividend pay-outs were curtailed

to maintain the capital base during the past two years, for the financial year 2024/25, the Board announced an interim dividend of Rs 5.00 per share, for a total dividend pay-out of Rs 15.00 Commencing from the

new financial year, CDB will return to its standard dividend policy to share the benefits of recovery with our shareholders.

APPLYING THE LEARNINGS

While CDB has now locked-on to a new growth path, this experience has not been in vein. In fact, I would like to stress that we did not treat the economic crisis as a mere episode, but as a once-in-a-life-time learning

experience. We learned many valuable lessons from this experience, which have been translated into sharper

risk management systems and more stringent governance structures, as is demonstrated by the improvement to our portfolio quality. Although

the level of market disruption, and in particular, the spike in interest rates that eroded our bottomline in 2022 is not a commonplace occurrence, we implemented mandatory contingencies to better manage

a recurrence of this nature, in the future. These measures, that have now been integrated into overall risk management oversight, and

should enable CDB to better manage from such extraordinary shocks in the future. Monitoring of lending portfolios have been enhanced for better management of assets and liabilities and we are diversifying

our portfolios to rebalance credit concentration risk in the vehicle finance sector, by expanding

[GRI 2-22]

Rs157BN

Total assets

Rs 24BN

Shareholders' funds

lending into other areas. We are also increasing the share of specialised products, such as green financing and sustainable business financing, to increase CDB's footprint in the sustainable financing market in Sri Lanka.

Our technology systems have also been improved to enhance resilience to external shocks. We have infused technology solutions into the lending process for better control, compliance and capacity, and we are using new technologies such as big data in our operations for better credit decision making. Our automated credit approval system makes it possible for sales personnel to work at any time, from anywhere, and serve clients at their doorstep. In 2024, CDB also launched its new mobile banking app, CDB SELF, which is far superior to the previous app in terms of customer value. With more business processes being automated, CDB is benefiting from increased efficiency, while

also expanding capacity. While we have not fully utilised CDB's current capacity, this makes it possible for CDB to rapidly expand business, when demand accelerates.

MAKING GOOD GOVERNANCE THE NORM

An indispensable aspect of our success has been the

uncompromising attitude held by the leadership towards good governance practices and compliance across

all activities. We have not only

MESSAGE FROM THE CHAIRMAN

I extend my fullest appreciations to my fellow directors, our Managing Director/CEO Mahesh Nanayakkara, and the leadership team, for their unstinting contributions in taking CDB to its present heights.

insisted on absolute compliance and stringent internal controls, but also adopted industry best practices.

While ESG is now a trending topic and becoming more accepted in the industry, CDB adopted ESG practices well ahead of the pack. We have been investing in good governance, and environmentally and socially responsible business practices, as a part of our business model for many years.

The CDB Board comprises competent and experienced personnel with multidisciplinary insights, to develop and drive strategy. To ensure accountability and independence

in decision-making, the Board comprises a mix of executive and nonexecutive members. These factors have been crucial to CDB's sustained performance, while transitioning rapidly into a technology based financial services provider.

While managing our daily business activities, CDB has also continued to invest time and funds into a range of environmental and social projects that are now well established and benefiting large numbers of people.

I urge the reader to take a moment to peruse the Social and Relationship Capital and Natural Capital chapters of this report to read more on these activities.

PLANS FOR THE FUTURE

Overall, CDB is now better equipped than ever, to deliver services efficiently and uninterruptedly, and our customers are able to access our products and services from anywhere, at any time. Signals of demand

recovery are now unmistakable, and in the new financial year, we will put our new systems and processes to the test against an anticipated spike in business volumes.

As we expand, we will maintain our strategy of technology and sustainable business practices,

which has now proved to be a highly effective combination. Our processes and capabilities will be continually upgraded to enable smooth capacity expansion to support growth. In

the new financial year, we will also examine other funding instruments to sustain our growth over the short to medium term.

Looking back at how CDB has overcome the unprecedented challenges of the recent past, I am confident CDB has the internal capabilities to face any new challenges that may come its way in the future. Therefore, I can confidently assure our stakeholders that CDB can only go from strength to strength as we move forward.

APPRECIATIONS

I extend my fullest appreciations to my fellow directors, our Managing Director/CEO Mahesh Nanayakkara, and the leadership team, for their unstinting contributions in taking CDB to its present heights. Today,

CDB is once more on a fast track to growth, all thanks to its leadership and team. Any strategy is only as good as its execution, and in this regard I must congratulate each and every member of the CDB team for their part in CDB's resurgence. I express my gratitude to the external auditors, Messrs. Ernst & Young,

for their valuable insights and recommendations. I also appreciate the support provided by our regulator, the CBSL and its personnel, for their guidance during this unpredictable period. As always, I am grateful to our customers, business partners and all other stakeholders for their continued loyalty and support. I look forward to working with all of you for a mutually beneficial future.

Sincerely

Alastair Corera

Chairman

05 June 2025 Colombo