January, 26, 2023
Sampath Bank PLC was adjudged the Overall 1st Runner-up and recognised once again as one of Sri Lanka’s Top Ten Corporate Citizens at the Best Corporate Citizen Sustainability Awards 2022 (BCCS Awards) organised by the Ceylon Chamber of Commerce. The Bank also became the Category Award Winner for ‘Community Relations’ and Triple Bottom Line Award Winner for ‘Social Sustainability (People)’.
Held for the 19th consecutive year, the Best Corporate Citizen Sustainability Awards 2022 is one of the most anticipated events in Sri Lanka’s corporate calendar. The competition aims to encourage Sri Lankan organisations to adopt best practices relating to environmental, social, and economic sustainability while pursuing corporate goals within the wider context of generational accountability. Open to both large corporates as well as smaller enterprises, it recognizes the efforts of the private and public sector to interact responsibly with its stakeholders, by focusing on the importance of corporate sustainability in the country. The key focal areas of the competition include environment, customer relations, community relations, governance, financial performance, and economic contribution, all of which were evaluated by esteemed panel of national experts in the sustainability fraternity.
Sampath Bank's innovative and socially impactful response towards Sri Lanka’s marginalised communities was further highlighted when it also won Gold award in the 'CSR Brand of The Year' category at the 21st SLIM Brand Excellence Awards held recently. ‘Wewata Jeewayak’, Sampath Bank’s flagship CSR initiative initiated over 20 years ago, is a committed, coordinated effort to restore the traditional irrigation network and thus ensure a dependable supply of water for dry zone farmers to cultivate their paddy lands and reap the harvests of both the Yala and Maha paddy seasons. Under this programme, the Bank has restored 15 tanks up to 2022. The Bank has cautiously increased the investment on this programme to build more resilience in agriculture sector amidst prevailing economic headwinds. Additionally, the Bank has launched ‘Gasai Mamai Pubudu Pothai’ tree planting programme with the participation of schools located in the areas where its ‘Wewata Jeewayak’ tank restoration programme is conducted. The core objective of this programme is to build environmentally conscious future generation. With the progress and positive outcomes of this programme, the Bank launched the vegetable gardening programme with the enthusiastic participation of students, teachers, and principals of schools.
The Bank also initiated a long-term marine protection programme named ‘A Breath to the ocean’ which has an ocean-based component focused on coral replanting and a land-based component focused on replenishing mangrove wetlands. For the mangrove restoration project, the Bank has acquired one hectare of land in the marshy areas of the Anavilundawa Wetland Sanctuary in the Puttalam District and working with Biodiversity Sri Lanka and Department of Wildlife on a long-term project to convert the degraded land into a mangrove forest. The Bank also has taken very important steps to conserve turtles in collaboration with Department of Wildlife. Under this initiative, the Bank will work with Department of Wildlife to build hatcheries at Rakawa village situated in southern coast of the island which is a well-known breeding zone for 5 types of endangered Turtles in the world.
Sampath Bank is a 100% local bank that has deeply rooted itself in the lives of the people of Sri Lanka. Established in 1987, the bank has become a state-of-the-art financial institution that continues to be a market leader today thanks to its constant innovation and customer focused approach to business. It has introduced many firsts to the Sri Lankan banking sector including introducing ATMs to Sri Lanka, extended banking hours, slip-less banking and adaptation of block-chain technology to name a few. As part of its visionary 2022 approach, the bank is steadily transforming itself into a ‘tech company engaged in banking,’ from the traditional approach of a bank adopting technology.
Image Caption: Image shows Sampath Bank’s win – 1st Runner up at ‘Best Corporate Citizen Sustainability Award 2022. Those present on stage; Darshin Pathinayake - Assistant General Manager Card Center, Sampath Bank PLC, Deepal De Silva - Deputy General Manager - Operations & Branch Banking, Sampath Bank PLC, Lalith Weragoda - Chief Human Resource Officer, Sampath Bank PLC, Ayodhya Iddawela Perera - Managing Director – Designate, Sampath Bank PLC Tharaka Ranwala - Senior Deputy General Manager - Digitalization, Deposit Mobilization & Marketing, Sampath Bank PLC Dulsiri Jayasinghe - Assistant General Manager - Special Projects & Syndications, Sampath Bank PLC, Chryshanthi Lokuhetty - Chief Manager Human Resources, Sampath Bank PLC, Pujitha Rajapaksa - Chief Manager Marketing, Sampath Bank PLC
December, 19, 2022
Sampath Bank recently started the restoration process of the Delikedali wewa in Dambana, Mahiyanganaya. The tank built recently as 1979, acts as the main water supply for 104 acres of paddy fields in the area and provides more than 90 families with their livelihoods. It is also of the utmost importance for the livelihoods of the indigenous community in the area. Despite its importance to the local community, the tank has not had any repair or maintenance since it was built.
The tank’s sludge levels have risen constantly in the past few decades, resulting in difficulties to store large quantities of water. As the bunt and sluice are in need of reconstruction, many farmers as well as indigenous people living in the area face hardships. However, with the assistance of the ‘Wewata Jeewayak’ initiative, the spill and water canals are in the process of being developed, which would ease the trouble of citizens having to trudge miles in search of water for irrigation and consumption purposes. This restoration is a reflection of the Bank’s newest Corporate Campaign, ‘Pohosath Minissu: values that bind us beyond a transaction,’ which brings a fresh and vibrant perspective to their iconic brand. Pohosath Minissu believes that true wealth lies not only in material wealth, but also in shared beliefs and values, which binds the Bank to the whole of Sri Lanka: to its people and nature. By committing to restoring the Delikedali wewa, under the ‘Wewata Jeewayak’ restoration programme, Sampath Bank has reaffirmed its commitment towards Sri Lanka’s people, particularly its indigenous community.
“Today, it is no secret that now more than ever, we feel the importance of the farmer who enables us to eat our daily rice,” said Sampath Bank’s Executive Director / Chief Financial Officer - Ajantha De Vas Gunasekara, attending the groundbreaking ceremony of the tank’s restoration. “It is our duty to protect the farmers and provide the necessities they need in kind. If there is no water, there is no farming. Therefore, maintaining the water supply and the irrigation system is essential. Unfortunately, many of our tanks have now fallen into disrepair, something we’re aiming to change with the ‘Wewata Jeewayak’ programme. We’re certain with the restoration of this tank, the farming community will obtain added benefits and aid for a prosperous tomorrow.
President of the Delikedali Wewa Farmers’ Association Ajith Amarasiri, giving his thoughts, said: “Almost everyone in this region lives by farming. For some time, we were able to farm very well, and we received water as needed from the tank. But with the tank falling into disrepair, we’re unable to cultivate even a seasons’ worth. We decided it was time to repair this tank. But we didn’t have the resources to do so. We’re very happy that Sampath Bank saw our suffering and stepped in to help us. They took up not just repairing the tank, but also repairing our lives.”
Begun more than twenty years ago, ‘Wewata Jeewayak’ is a committed, coordinated effort to rebuild and restore the traditional irrigation network and thus ensure a dependable supply of water for dry zone farmers to cultivate their paddy lands and reap the harvests of both the Yala and Maha paddy seasons. To date it has restored and given back a total of 12 tanks in the country, with several more completing their restoration processes.
Simultaneously with this ‘Wewata Jeewayak’ programme, another step under the ‘Gasai Mamai - Pubudu Pothai’ tree planting programme was launched at Primary Viddyala, Dambana in Mahiyanganaya Education Zone by distributing saplings of fruit plants to school children, along with the responsibility of planting and taking care of it within the school premises. A nationwide state project, this aims to improve school children’s understanding of the environment, as well as enhance their agricultural skills while developing a source of financial income for the school.
Sampath Bank is a 100% local bank that has deeply rooted itself in the lives of the people of Sri Lanka. Established in 1987, the bank has become a state-of-the-art financial institution that continues to be a market leader today thanks to its constant innovation and customer focused approach to business. It has introduced many firsts to the Sri Lankan banking sector including introducing ATMs to Sri Lanka, extended banking hours, slip-less banking and adaptation of block-chain technology to name a few. As part of its visionary 2022 approach, the bank is steadily transforming itself into a ‘tech company engaged in banking,’ from the traditional approach of a bank adopting technology.
December, 13, 2022
In an effort to triple its customer touch points and add unparalleled levels of banking convenience to its valuable customers, Sampath Bank has taken a significant step in the Agent Banking Model by entering an agreement with Sri Lanka’s largest mobile network operator Dialog Axiata PLC to introduce eZ Banking.
With the opening of this new channel, in addition to Sampath Bank’s 229 strong branch network and 400+ ATMs, an additional 1,300+ eZ Cash Merchant outlets will be added to its network, resulting in the highest levels of banking convenience. Through this authorised facility, customers will be able to use this network of eZ Banking agents to make deposits and withdrawals to Sampath Bank accounts.
As eZ Banking agents operate even after normal banking hours in the country, customers with busy lifestyles will be able to eliminate the hassle associated with visiting the branch, while also saving on transport costs.
Speaking on this development, Nanda Fernando - Managing Director, Sampath Bank PLC said, “By adopting the agency model, Sampath Bank’s aim is to serve our customers better by bringing our financial services closer to them. Through eZ Banking, our customers will be able to reap the benefits of convenience and flexibility, regardless of their busy lifestyles. We are confident that this will be a welcome initiative by all our customers, islandwide,”
Aside from the benefits to existing customers, this initiative by Sampath Bank will serve as a catalyst in tackling a socioeconomic issue that has existed in Sri Lanka for many generations. With several underbanked social sections scattered across rural Sri Lanka, eZ Banking will open the doors to financial inclusion across the nation.
Meanwhile, the Bank is expected to benefit from reduced queues in branches, less paperwork and more productive time to invest in customers who come for complex banking transactions, while enabling cross selling opportunities. Ultimately, the Bank will reap the overall benefits of growth in customer base and reduction of operational expenses with routine low value transactions being channelled to this model.
Sampath Bank encourages all customers, the business community that prefers banking in late hours, busy individuals who are unable to bank during working hours and others who are facing difficulties in banking to avail of this new facility and enhance their connectivity with Sampath Bank and financial inclusion as a whole.
Sampath Bank is a 100% local bank that has deeply rooted itself in the lives of the people of Sri Lanka. Established in 1987, the bank has become a state-of-the-art financial institution that continues to be a market leader today thanks to its constant innovation and customer focused approach to business. It has introduced many firsts to the Sri Lankan banking sector including introducing ATMs to Sri Lanka, extended banking hours, slip-less banking and adaptation of block-chain technology to name a few. As part of its visionary 2022 approach, the bank is steadily transforming itself into a ‘tech company engaged in banking,’ from the traditional approach of a bank adopting technology.
December, 9, 2022
In recognition of Sampath Bank’s outstanding commitment toward the development of ICT products and services, the financial institution recently secured two Gold Awards at the 24th National Best Quality ICT Awards (NBQSA) 2022, surpassing leading ICT organisations in the country.
At a gala ceremony held recently at Monarch Imperial, Sampath Bank clinched the Overall Gold Award and the Gold Award under the ‘Banking, Insurance & Finance in Consumer’ category of NBQSA 2022.
This win comes due to Sampath Bank’s introduction of its revolutionary Sampath Bank iPIN, the latest trend introduced by the Bank to self-onboard to the Sampath Vishwa online banking platform, avoiding the hassles associated with the same in the past. Through Sampath iPIN, customers can register for Sampath Vishwa using only their Debit Card PIN from the comfort of their home.
Sampath Bank iPIN also adds additional security layers for the onboarding process with the secured virtual PIN with dynamic key arrangements. This results in significant time and paper savings for the Bank and the customer, eliminating a significant amount of back-office work.
Speaking on this win for the Bank, Ajith Salgado - Chief Information Officer, Sampath Bank PLC said, “Sampath Bank has always maintained its position as the Bank that introduces ‘firsts’ to the industry as a whole. Awards such as these in recognition of our efforts go a long way for us, as they serve as a catalyst to become more innovative and creative with our solutions. Our in-house IT team and all others involved in this project must be recognised for their efforts. Without them, we would not have secured this prestigious award.”
Further commenting on the victory, Pasan Manukith - Assistant General Manager, Information Technology stated, “Enhancing user experience and providing products with industry leading security features is a challenge on its own. The bank has once again proven that its solutions deliver the best in both aspects.”
NBQSA is the most prestigious competition in Sri Lanka’s ICT industry and recognises outstanding achievements by individuals and organisations who develop ICT products and services. Viewed as the number one national level ICT competition in the Sri Lankan IT industry, the competition also provides a window for those individuals and organisations to receive international recognition for local ICT products and services. NBQSA is organised by the Sri Lankan section of the British Computer Society (BCSSL), the chartered institute for IT, a leading professional society in the field of computers and information systems.
Sampath Bank is a 100% local bank that has deeply rooted itself in the lives of the people of Sri Lanka. Established in 1987, the bank has become a state-of-the-art financial institution that continues to be a market leader today thanks to its constant innovation and customer focused approach to business. It has introduced many firsts to the Sri Lankan banking sector including introducing ATMs to Sri Lanka, extended banking hours, slip-less banking and adaptation of block-chain technology to name a few. As part of its visionary 2022 approach, the bank is steadily transforming itself into a ‘tech company engaged in banking,’ from the traditional approach of a bank adopting technology.
From Left to Right: Sanharsha Jayatissa - Chairman, NBQSA 2022, Thushantha Sumithrarachchi - Chief Manager - Systems & Procedures, Sampath Bank PLC, Manjula Godevithanage - Manager - Systems Administration, Sampath Bank PLC, Nuwan Wickramanayake - Chief Manager - IT-EDP, Sampath Bank PLC, Vajeendra S. Kandegamage - Chairman, Executive Committee of BCS Sri Lanka Section, Lucy Ireland - Managing Director, BCS learning & Development, Pasan Manukith - AGM - IT, Sampath Bank PLC, Ajith Salgado - Chief Information Officer, Sampath Bank PLC, D. Kumaratunge - Assistant Governor, Central Bank of Sri Lanka, M. G. Tillekeratne - Member, Executive Committee, BCS Sri Lanka Section), Kamal Ekanayake - Manager - Digital Banking, Sampath Bank PLC, Manula Nanayakkara - System Administrator, Sampath Bank PLC, Kasun Perera - Business Analyst, Sampath Bank PLC.
September, 26, 2022
Sampath Bank partners with EDB and IDB in timely webinar series
As Sri Lanka powers through its worst economic crisis in recent history, it’s now more important than ever for exporters to establish their footholds in the market. However, resources for entry-level exporters remain scarce. Recognising the changing and evolving needs of its loyal client base, the pioneer of the banking industry Sampath Bank PLC recently organised a webinar titled ‘LEAD THE WAY: EXPLORE EXPORT MARKETS’ in partnership with the Sri Lanka Export Development Board (EDB) and the Industrial Development Board (IDB) to address this very timely issue.
The webinar was held for entry-level exporters with the dual intentions of fostering and encouraging local entry-level exporters to advance their businesses, and strengthening ties between private and public stakeholder institutions to synergise the service being offered to local exporters.
Conducted in Sinhala by a 90% preferred choice, the webinar featured IDB Director General Priyanka Ratnamalala and EDB Chairman and Chief Executive Suresh D. de Mel. Joining them, and representing Sampath Bank PLC, were the Senior Deputy General Manager - Corporate Banking - Shashi Kandambi Jassim, and Assistant General Manager - Information Technology - Dushyantha Dassanayake.
A wide range of relevant topics were covered by the speakers: Priyanka Ratnamalala-- in his presentation of ‘Are you comprehensively export ready?’ covered strategic business and strategy formulation; Suresh D. de Mel conducted a session on introduction to export markets and understanding the export markets, while Shashi Kandambi Jassim spoke on the topic of Sampath Bank’s role in providing export service facilities; and finally, Dushyantha Dassanayake elaborated on exports and online marketing.
Delivering the opening remarks for the event, Sampath Bank PLC, Managing Director - Nanda Fernando reiterated the priority given by Sampath Bank to its customers. “Since Sampath Bank was founded in 1987, the most important part of the bank’s journey was its customers,” he said, adding: “We have always believed it’s a bank’s responsibility to provide customers with the necessities to do successful business. Therefore, we have introduced this timely initiative in partnership with relevant organisations, which we hope will help our customers.”
This webinar, covering the export market in general, was the first in a planned series of events by Sampath Bank PLC. The Bank aims to conduct more webinars targeting regions and specific industries in the future, catering to the needs of their customer base whilst helping entry-level exporters gain a stronger foothold in the market.
Despite the contemporary obstacles faced by the banking sector in Sri Lanka, Sampath Bank has successfully maintained all its capital ratios well above regulatory requirements throughout Q1 2022. All the while, Sampath Bank has implemented all government-led moratorium schemes for eligible customer segments affected by the pandemic. The Bank’s digitalization strategy has also continued to prove its worth during these trying times by securing a more accessible and safer banking experience for customers.
Sampath Bank is a 100% local bank that has deeply rooted itself in the lives of the people of Sri Lanka. Established in 1987, the bank has become a state-of-the-art financial institution that continues to be a market leader today thanks to its constant innovation and customer focused approach to business. It has introduced many firsts to the Sri Lankan banking sector including introducing ATMs to Sri Lanka, extended banking hours, slip-less banking and adaptation of block-chain technology to name a few. As part of its visionary 2022 approach, the bank is steadily transforming itself into a ‘tech company engaged in banking,’ from the traditional approach of a bank adopting technology.
Image Caption: The image shows Sayuri Rathnayake - Moderator along with presenters at the webinar (l-r) Suresh D de Mel - Chairman / Chief Executive, Export Development Board, Shashi Kandambi Jassim - Senior Director General Manager - International Banking, Sampath Bank and Priyanka Rathnamalala – Director General, Industrial Development Board
September, 19, 2022
Sampath Bank was recently recognized as Sri Lanka’s best bank for social responsibility by Asiamoney and Market Leader CSR from Euromoney magazines. Both lauded Sampath Bank’s innovative approach and the impact of its successful social outreach programs, and wrote approvingly of how the Bank adapted to difficult circumstances. Euromoney Market Leaders makes an independent appraisal of the leading financial service providers across key banking categories in each market. The result of a rigorous assessment process, these rankings are part of Euromoney magazine’s awards programs that recognize financial institutions for their accomplishments and capabilities within a 12-month period against the backdrop of global events. In the confined world of international banking and finance, Euromoney and Asiamoney awards are the coin of the realm.
Both magazines noted in separate statements that as working capital dwindled during the coronavirus pandemic, Sampath supersized its ‘diriya’ loan scheme for small and medium-sized enterprises, prioritizing green lending. It also scaled up sustainable lending to help Sri Lanka reach one of its environmental objectives: to ensure that by 2030, 70% of the country’s energy will come from renewable sources. Sampath Bank helped support Sri Lanka’s import/export industry, prioritizing prudent management of its foreign currency position. The Bank acted pre-emptively to procure more foreign currency early in the year, and ensured uninterrupted inflows of essential foods and pharmaceuticals. Facing unprecedented, the Bank responded with out-of-the-box thinking and novel solutions. Heeding the Central Bank’s directive to reschedule existing non-performing loans of pandemic-affected businesses, Sampath Bank negotiated mutually acceptable repayment plans. It also distributed with fees for returned cheques, stopped cheques and late payments. When the second wave of the pandemic hit in 2021, Sampath Bank restructured some loans, offering customized deferment plans to help corporate customers ease out of their financial crunch.
Sampath Bank also expanded its ‘Waweta Jeewayak’ tank restoration initiative and its ‘Sampath Saviya’ entrepreneurship development program, and donated medical equipment to help state hospitals cope with COVID outbreaks. Both Euromoney and Asiamoney also commended Sampath Bank for strengthening its core business, noting that the Bank balanced growth, risks and costs: Net interest income rose 23.2% from the previous year and after-tax profit increased 55.2%. The Bank’s efforts to pare down operating costs paid off as well: its cost-to-income ratio dropped to 35.3% from the previous year’s 43.5%. The magazines credited much of Sampath Bank’s outstanding performance to its active monitoring of impairment risks and its efforts to absorb losses during a perfect storm of health, socioeconomic and political crises. “It is an impressive achievement,” they concluded.
“I was delighted to hear that both Euromoney and Asiamoney magazines recognized Sampath Bank as Sri Lanka’s Market Leader CSR and Best Bank for Corporate and Social Responsibility respectively,” said Nanda Fernando - Managing Director, Sampath Bank PLC. “Their editorial boards gave us these awards for our resilience in the face of seemingly intractable problems, and for the way we innovated our way through a very tough year. We are not over the problems of 2022, but we face the future with confidence.”
Sampath Bank is a 100% local bank that has deeply rooted itself in the lives of the people of Sri Lanka. Established in 1987, the bank has become a state-of-the-art financial institution that continues to be a market leader today thanks to its constant innovation and customer focused approach to business. It has introduced many firsts to the Sri Lankan banking sector including introducing ATMs to Sri Lanka, extended banking hours, slip-less banking and adaptation of block-chain technology to name a few. As part of its visionary 2022 approach, the bank is steadily transforming itself into a ‘tech company engaged in banking,’ from the traditional approach of a bank adopting technology.
September, 13, 2022
Sampath Bank recently launched the extension of its ‘Gasai Mamai Pubudu Pothai’ tree planting program with the introduction of a vegetable gardening program at the Zonal Education Office, Piliyandala. The Bank launched its ‘Gasai Mamai Pubudu Pothai’ tree planting program in 2021 with the participation of schools located in those areas where it had earlier undertaken its ‘Wewata Jeewayak’ tank restoration program. Pleased with the progress and positive outcomes of this program, the Bank launched this initiative--a vegetable gardening program with the enthusiastic participation of students, teachers and principals of schools in the Zonal Education Office, Piliyandala. Going forward, the Bank plans to extend this program to a selection of 100 schools in Colombo and Colombo Suburbs.
The plan is to distribute ten types of vegetable seeds plus organic fertilizer and a set of cultivating tools per school, as per the request of the school or at the discretion of each school. Sampath Bank purchased the seeds from the Seed Planting Material Development Center of the Department of Agriculture. Meanwhile, ‘Gasai Mamai Pubudu Pothai’, the fruit sapling planting program launched last year is being successfully implemented in the Bibile, Kahatagasdigiliya, Talawakelle, Dehiattakandiya, Hingurakgoda and Jaffna Educational zones.
The objective of this program is to inculcate the traditional values of cultivation in the younger generation, whilst heightening the environmental consciousness in the minds of these schoolchildren.
“Building upon the success of the tree planting program was a logical next step,” said Lalith Weragoda - Group Chief Human Resource Officer, Sampath Bank PLC. “Tree planting promises great future benefits, and encourages schoolchildren to develop long term goals-- Vegetable cultivation in school gardens is the next step of strengthening the bond between the environment and school children. That was the thinking behind Sampath Bank’s ‘Gasai Mamai Pubudu Pothai’ vegetable gardening campaign.”
Despite the obstacles currently faced by the banking sector in Sri Lanka, Sampath Bank has successfully maintained all its capital ratios well above regulatory requirements throughout Q1 2022. All the while, Sampath Bank has implemented all government-led moratorium schemes for eligible customer segments affected by the pandemic. The Bank’s digitalization strategy has also continued to prove its worth during these trying times by securing a more accessible and safer banking experience for customers.
Sampath Bank is a 100% local bank that has deeply rooted itself in the lives of the people of Sri Lanka. Established in 1987, the bank has become a state-of-the-art financial institution that continues to be a market leader today thanks to its constant innovation and customer focused approach to business. It has introduced many firsts to the Sri Lankan banking sector including introducing ATMs to Sri Lanka, extended banking hours, slip-less banking and adaptation of block-chain technology to name a few. As part of its visionary 2022 approach, the bank is steadily transforming itself into a ‘tech company engaged in banking,’ from the traditional approach of a bank adopting technology.
Image Caption: The image shows Nuwan Pathirana - Manager - CSR & Corporate Sustainability handing over seed packets to students representing the schools in the Zonal Education Office, Piliyandala. Also in the picture are Kumudu Hemamali De Silva - Zonal Education Director, Piliyandala, Ravi Silva - Manager, Piliyadala Branch, Sampath Bank PLC and Geetha Priyadarshani - Deputy Director - Planning, Zonal Education Office, Piliyandala
August, 30, 2022
Sampath Bank recently handed over restored Pubbiliya Wewa, a 45-acre tank in Pubbiliya, Kurunegala District at a ceremony attended by bank officers, members of the executive committee of the local farmers association, villagers, and officials from the Department of Agrarian Development’s Kurunegala District Office. This project involved restoring the tank spill and removing layers of accumulated sludge that had built up over decades of neglect. Pubbiliya Wewa, located about six kilometers northeast of Kobeigane, will irrigate over 210 acres of prime paddy lands. Over 160 farming families, comprising of more than 500 men, women and children, stand to directly benefit. Additionally, the ripple effects of the restoration will bestow economic benefits on five neighboring villages as well.
The Pubbiliya Wewa Restoration Project is part of the ‘Wewata Jeewayak’ (Life to Tanks), Sampath Bank’s flagship Corporate Social Responsibility (CSR) initiative. Begun more than twenty years ago, ‘Wewata Jeewayak’ is a committed, coordinated effort to rebuild and restore the traditional irrigation network and thus ensure a dependable supply of water for dry zone farmers to cultivate their paddy lands and reap the harvests of both the Yala and Maha paddy seasons. ‘Wewata Jeewayak’ is congruent with what business schools call the triple bottom line. It’s a value system based on the belief that instead of focusing solely on their financial performance, firms should commit to measuring their social and environmental impact on the ‘Three Ps’- People, Planet and Profit as well. It’s aligned with the United Nations Sustainable Development Goals (UNSDGs). In a nutshell, to improve the livelihood of the community (People), increase the water capacity of the tank (Planet), enrich the surrounding ecosystem (Planet), contribute to the national GDP (Profit), and empowering local agricultural entrepreneurs (People and Profit).
At the handing-over ceremony, Sampath Bank officers thanked the Pubbiliya Govi Sanvidhanaya (farmers’ association) for their wholehearted contribution. The Bank also thanked the representatives of the Department of Agrarian Development’s Kurunegala District Office for their invaluable technical support.
“Restoring the Dry Zone’s water-dependent ecosystems mean that farmers can cultivate paddy in both the Yala and Maha seasons, and contribute to the nation’s food security. This is very much a topic of concern in the present day. Tank restoration enriches the country’s biodiversity profile as well, when regional fauna and flora start flourishing again. So, the benefits are truly multifold”, said Ajantha De Vas Gunasekera, Executive Director / Chief Financial Officer, Sampath Bank PLC.
“It’s very gratifying to see a bank taking an interest in the agricultural economy, and getting actively involved in restoring ancient tanks,” said Kiribandiya, President of the Pubbiliya Govi Sanvidanaya. “Speaking as farmers, we understand how important it is to make the country self-sufficient in food. Committed long-term efforts such as Sampath Bank’s Wewata Jeewayak program will help us accomplish that goal.”
Despite the obstacles currently faced by the banking sector in Sri Lanka, Sampath Bank has successfully maintained all its capital ratios well above regulatory requirements throughout Q1 2022. All the while, Sampath Bank has implemented all government-led moratorium schemes for eligible customer segments affected by the pandemic. The Bank’s digitalization strategy has also continued to prove its worth during these trying times by securing a more accessible and safer banking experience for customers.
Sampath Bank is a 100% local bank that has deeply rooted itself in the lives of the people of Sri Lanka. Established in 1987, the bank has become a state-of-the-art financial institution that continues to be a market leader today thanks to its constant innovation and customer focused approach to business. It has introduced many firsts to the Sri Lankan banking sector including introducing ATMs to Sri Lanka, extended banking hours, slip-less banking and adaptation of block-chain technology to name a few. As part of its visionary 2022 approach, the bank is steadily transforming itself into a ‘tech company engaged in banking,’ from the traditional approach of a bank adopting technology.
Dr. Lalith Weragoda - Chief Human Resource Officer, Sampath Bank PLC and Dushani M Weerawansha - Deputy Commissioner, Department of Agrarian Development, District Office, Kurunegala unveiling a commemorative plaque
Image Caption : Dr. Lalith Weragoda - Chief Human Resource Officer, Sampath Bank PLC and Kiribandiya - President, Farmers’ Association, Pubbiliya opening the sluice gate
August, 12, 2022
Sampath Bank continued to maintain a solid capital base and stable liquidity profile in the first half of 2022 notwithstanding multiple economic challenges. The Bank remains vigilant in identifying the current economic issues and has continued to implement in a proactive manner the required countermeasures, clearly demonstrating its strength and stability. In line with that objective and in order to improve the foreign currency liquidity position, the Bank continues to focus and promote inward remittances as well as to encourage the inflow of export proceeds. The Bank further reinforced its commitment to all its stakeholders by continuing to support all affected segments to sustain their respective businesses in order to ride out the current economic crisis.
Despite the prevailing economic turmoil, the Bank posted a commendable PAT of Rs 7.1 Bn and PBT of Rs 9 Bn for the period ended 30th June 2022, reflecting a minor increase of 0.3% and slight decrease of 5.5% respectively compared to the figures declared in 1H 2021. In the meantime, the Group declared a PAT of Rs 7.4 Bn and PBT of Rs 9.6 Bn, denoting a decline of 2% and 5.5% respectively over the first half of 2021.
Total interest income increased by 41.1 % year on year to Rs 59.2 Bn in the first half of 2022, compared to Rs 41.9 Bn in the same period of the previous year. This significant increase in interest income is due to the upward trend in interest rates in the first half of 2022. The AWPLR at the end of the reporting period reached 22.62%, which is 1,711 bps higher than the rate reported on 30th June 2021. Furthermore, the current AWPLR surpassed the end 2021 figure by 1,401 bps. At the same time, the interest rate on a one-year treasury bill climbed by 1,861 bps from the treasury bill rate reported at end of 30th June 2021 and stood at 23.84% at the end of 30th June 2022.
Interest expenses increased by 22.6% compared to the corresponding period of last year due to rising interest trend. The Bank’s total interest expense was Rs 27.8 Bn at the end of the current reporting period compared to Rs 22.7 Bn reported in 1H 2021. Prudent asset and liability management however ensured that net interest income grew by 63% in 1H 2022. This trend is reflected in the NIM growth of 124 bps reported for the period.
The Bank recorded a significant increase of 69.9% in its net fee and commission income (NFCI) in 1H 2022 compared to the same period of the previous year. NFCI is made up of income from a variety of sources, including loans and advances, credit cards, trade, and electronic channels. In the period under review, significant growth was noted in card-related business volumes and as well as fee and commission income from trade-related activities.
During the first half of 2022, net other operating income increased to Rs 16 Bn, an unprecedented 378% increase compared to Rs 3.4 Bn recorded in the corresponding period of the previous year. This was mainly due to the 80% depreciation of LKR against US Dollar. Meanwhile, the Bank posted a net trading loss of Rs 2.5 Bn, compared to the gain of Rs 46 Mn reported during the corresponding period of the previous financial year. Total exchange income for the first six months of 2022 was Rs 13 Bn compared Rs 3 Bn registered in 1H 2021.
Continuing to act prudently, the Bank recognised a total impairment charge of Rs 28.2 Bn for 1H 2022 compared to Rs 5 Bn reported in the corresponding period of last year, representing a 464% increase. The impairment charge for the period under review comprises Rs 19.3 Bn for loans and advances and Rs 7.8 Bn for other financial instruments. Further, impairment charge of Rs 1.1 Bn was recorded against commitments and contingencies.
Impairment charge on loans and advances: A sizable provision was made under Economic Factor Adjustment for the period under review as the Bank continued to increase the probability weightage used in the computation of impairment to reflect the deteriorating macro-economic conditions. During the second quarter of 2022, the probability weightage allocated to the worst-case scenario was further increased. The economic factor adjustment methodology was continuously refined to reflect the heightened economic vulnerabilities and captured the latest data with regard to all major economic variables. This was done to ensure that adequate impairment provisions were made to address the potential credit risk associated with the current economic challenges.
In order to absorb the possible losses, the Bank decided to increase the allowance for overlay against the tourism sector customers. It was also decided to retain impairment provisions against the customers who exited the moratorium at the end of 2021. As a result, cumulative impairment provision against stage 1 and stage 2 loans reported a sizable increase of 27.3% and 63.5% respectively compared to 31st December 2021.
The Bank continues to recognise elevated risk industries and moved such customers to Stage 2 during the period. In addition, the Bank closely monitored the customers’ behaviour and shifted them from Stage 1 to Stage 2 based on their capacity to bear the adverse impacts brought on by economic issues.
Meanwhile, the cumulative impairment provision against Stage 3 loans increased by 40.52% in the first half of 2022. This was primarily caused by the increase in Stage 3 loans and the recalculation of impairment of a few Stage 3 customers compared to the year-end 2021.
Impairment charge on other financial instruments: The Bank provided Rs 7 Bn against SLISBs and Rs 11.8 Bn against SLDBs as at 30th June 2022. This decision was influenced by the downgrade in Sri Lanka’s sovereign rating in May 2022 to RD from C by Fitch Ratings and other current debt restructuring actions taken by the Government.
Operating expenses for the first half of 2022 amounted Rs 13.7 Bn, a 24.3% increase from the Rs 11 Bn recorded for the first half of 2021. The primary reason for the increase in operating expenses was the increase in the inflation rate, which rose significantly during the first six month of 2022. Despite the growth recorded in the operating expenses, the Bank’s cost to income ratio (CIR) dropped significantly by 1,406 bps and stood at 25.45% compared to 39.51% reported in the corresponding period of 2021. This decline in CIR was primarily triggered by an increase in total operating income that was greater than the increase in operating expenses.
The Return on Average Shareholders’ Equity (after tax) increased to 12.06% as at 30th June 2022 compared to 11.05% reported at the end of the year 2021. Return on Average Assets (before tax) stood at 1.43% as at 30th June 2022 as against the 1.44% reported for 2021.
Throughout 1H 2022, the Bank maintained all of its capital ratios well above the regulatory minimum requirements. The Bank's CET 1, Tier 1, and total capital ratios on 30th June 2022 were 11.3 %, 11.3 %, and 13.82 % respectively, in comparison with 13.95 %, 13.95 %, and 17.02 % at the end of 2021. The decline in the ratios during the reporting period is due to the combined impact of increase in risk-weighted assets resulting from the LKR depreciation, the payment of cash dividends and surcharge tax.
The Bank maintained a strong position with regard to its capital ratios with sufficient buffers to absorb any shocks that may result from economic uncertainties.
At the end of June 2022, Sampath Bank's total assets surpassed Rs 1.3 Tn, denoting an increase of Rs 122 Bn (annualized growth of 20.2%) from Rs 1.2 Tn as of 31st December 2021. Increases in net loans & advances and cash & cash equivalents have contributed towards the above. Devaluation of the local currency that took place in 1H 2022 has increased the Rupee value of foreign currency denominated assets which could be cited as a main reason for the balance sheet growth. If the impact of the currency fluctuation is eliminated, the Bank would have recorded an annualised growth of approximately 5%.
Total advances grew by 29.7 % (annualized) in 1H 2022 to reach Rs 933 Bn as at 30th June 2022, up from Rs 813 Bn at the end of December 2021. The LKR loan book expanded by 13.6% (annualized). It should be noted that following LKR depreciation of Rs 160.25 against USD during the period, the value of foreign currency denominated loans increased significantly. If currency rate fluctuations were eliminated, the Bank’s total loans and advances would have increased by 9.8% (annualized) during the period.
Further, the Bank transferred Treasury Bonds worth of Rs 33 Bn classified under FVOCI to Amortized Cost during the reporting period as permitted by the SoAT on Reclassification of Debt Portfolio issued by CA Sri Lanka.
The LKR deposit portfolio contracted by 9.24% compared to the figure reported at the end of 2021. This was due to the fact that the Bank had adequate liquidity throughout the period and therefore, deposit mobilization activities were not actively pursued in 1H 2022. At the conclusion of the first half of 2022, the Bank’s CASA ratio stood at 40.6%. However, the Bank resumed deposit mobilization during the month of July 2022 by offering products under new tenors at competitive market rates.
As per the Surcharge Tax Act No. 14 of 2022, the Bank is liable for the surcharge tax of Rs 2,671 Mn out of the taxable income of Rs 10,682 Mn pertaining to the year of assessment 2020/21. Further, the Group is liable for the surcharge tax of Rs 3,233 Mn. According to the said Act, the surcharge tax shall be deemed to be an expenditure in the financial statements commenced on 1st January 2020. Since the Act supersedes the requirements of the Sri Lanka Accounting Standards, the surcharge tax expense has been accounted as recommended by the SoAT on Accounting for Surcharge Tax issued by the Institute of Chartered Accountants of Sri Lanka. Accordingly, the liability to the Surcharge Tax has been recognised as an adjustment to the opening retained earnings as at 1st January 2022, during the quarter ended 30th June 2022.
August, 8, 2022
Sampath Bank recently announced its sponsorship of the Jaffna Poson Festival at the Sri Naga Vihara International Buddhist Center on June 14 and 15, 2022. The beginning of this festival coincides with Poson, traditionally observed on the full moon day of June, which this year falls on Tuesday the 14th.
Jaffna residents were treated to an exhibition of ancient Buddhist relics. The highlight of this year’s celebrations in Jaffna was expected to be not just the religious observances and good-fellowship, but the large and captivating collection of children’s paintings on display at the Sri Naga Vihara. The theme for this art exhibition was ‘good habits and rituals,’ and it elicited some charming submissions. These paintings were submitted by 200 Tamil children of different age groups, ranged from engagingly childlike drawings to mature works of astonishing artistic merit. Perhaps what’s most noteworthy about this art exhibit is that these budding young artists are the children of former LTTE cadres who have long since been rehabilitated and have assimilated themselves into the fabric of Sri Lankan society. The level of enthusiasm was so impressive that the Bank decided to award each and every young artistic participant a cash prize of Rs. 2,500 in the form of a Sampath Bank account.
“Sampath Bank has had a presence in Jaffna peninsula since peace returned to the Peninsula,” said Tharaka Ranwala - Senior Deputy General Manager/Group Marketing, Deposit Mobilization and Digitalization, Sampath Bank PLC. “The Bank has proved to be one of the fastest growing private banks in the area, offering its customers a range of attractive financial products and services. Coming from a bank that is on the cutting edge technologically, the people of Jaffna embraced these progressive products and services and are being rewarded for it. They appreciate the value and benefits of these technologically advanced products and services.”
The festivities culminated on the evening of Wednesday, June 15, with a number of landmark events. In the age-old Sri Lankan tradition of religious tolerance, these events were graced by the attendance of members of the clergy of the Buddhist, Hindu and Catholic faiths. Brief sermons delivered by senior Buddhist prelates, followed by the Sampath Bank-sponsored prize giving for participants of different age levels.
Sampath Bank is a 100% local bank that has deeply rooted itself in the lives of the people of Sri Lanka. Established in 1987, the bank has become a state-of-the-art financial institution that continues to be a market leader today thanks to its constant innovation and customer focused approach to business. It has introduced many firsts to the Sri Lankan banking sector including introducing ATMs to Sri Lanka, extended banking hours, slip-less banking and adaptation of block-chain technology to name a few. As part of its visionary 2022 approach, the bank is steadily transforming itself into a ‘tech company engaged in banking,’ from the traditional approach of a bank adopting technology.
Images drawn by the children who participated in the art exhibition
Image shows: Janaka Jayasuriya - Assistant General Manager - Branch Banking, Sampath Bank PLC handing over a sapling to school children who participated in the art exhibition. Also in the images are Kumanan Rasanayagam - Regional Manager - North, Sampath Bank PLC and Rajashanthan - Manager - Jaffna Branch, Sampath Bank PLC
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