Bank		Group
For the year ended 31 December	Note	2016 LKR ’000	2015 LKR ’000	2016 LKR ’000	2015 LKR ’000
Cash Flows from Operating Activities
Profit before income tax		31,188,685	25,278,915	30,117,032	25,476,668
Adjustments for:
Net interest income	8	(53,957,488)	(46,325,724)	(56,606,492)	(48,702,485)
Dividend income on trading securities	10	(113,674)	(111,327)	(126,801)	(123,886)
Dividends from subsidiaries and associates	12	(1,102,158)	(259,048)	–	–
Share of profits/(losses) of associate companies, net of tax	16	–	–	(62,952)	(93,590)
Change in operating assets	50.1	(160,667,438)	(74,890,341)	(163,958,901)	(78,214,226)
Change in operating liabilities	50.2	131,411,796	188,810,164	134,895,340	190,869,467
Other non-cash items included in profit before tax	50.3	3,832,099	7,217,589	4,890,843	8,390,831
Other net gains from investing activities		(273,881)	(610,336)	(312,273)	(641,918)
		(49,682,059)	99,109,892	(51,164,204)	96,960,861
Benefit paid from defined benefit plans		(6,427,894)	(6,221,447)	(6,469,307)	(6,238,989)
Interest received		95,086,587	85,793,707	99,900,577	89,713,176
Interest paid		(54,415,320)	(46,611,096)	(56,022,201)	(47,694,488)
Dividends received		113,674	111,327	126,801	123,886
Net cash from/(used in) operating activities before income tax		(15,325,012)	132,182,383	(13,628,334)	132,864,446
Income tax paid		(6,020,924)	(2,663,879)	(6,248,626)	(2,936,778)
Super Gain Tax paid		–	(2,015,731)	–	(2,212,215)
Net cash from/(used in) operating activities		(21,345,936)	127,502,773	(19,876,960)	127,715,453
Cash Flows from Investing Activities
Net (increase)/decrease in financial investments – Held to maturity		3,105,015	(30,362,837)	3,090,334	(30,201,031)
Net (increase)/decrease in financial investments – Available for sale		624,947	1,128,180	(861,988)	338,023
Net (increase)/decrease in financial investments – Loans and receivables		40,686,630	(101,699,901)	41,019,663	(101,320,902)
Proceeds from disposal of an associate company		3,880,000	–	3,880,000	–
Purchase of Property, Plant and Equipment and leasehold properties		(2,052,805)	(1,332,486)	(2,207,275)	(1,571,210)
Purchase of intangible assets		(376,643)	(180,593)	(390,549)	(205,725)
Proceeds from sale of Property, Plant and Equipment		18,961	7,677	63,951	14,711
Dividends received		1,268,331	777,533	204,565	550,067
Interest received		36,487,727	29,674,085	36,809,586	30,093,413
Net cash from/(used in) investing activities		83,642,163	(101,988,342)	81,608,287	(102,302,654)
Cash Flows from Financing Activities
Net increase/(decrease) in other borrowings		(42,090,586)	62,621,862	(38,650,060)	65,572,367
Proceeds from issue of shares		5,000,000	–	5,000,000	–
Proceeds from issue of debentures		8,000,000	8,000,000	7,990,000	8,000,000
Payments on redemption of debentures		(5,032,015)	(22,398,509)	(5,368,253)	(22,677,294)
Dividends paid to Government of Sri Lanka		(18,346,410)	(5,346,410)	(18,346,410)	(5,346,410)
Dividends paid to non-controlling interest		–	–	(52,866)	(8,811)
Interest payments on borrowings and debt securities		(21,458,109)	(24,894,920)	(22,211,745)	(25,882,760)
Net cash from/(used in) financing activities		(73,927,120)	17,982,023	(71,639,334)	19,657,092
Net increase/(decrease) in cash and cash equivalents during the year		(11,630,893)	43,496,454	(9,908,007)	45,069,891
Cash and cash equivalents at the beginning of the year		78,529,331	35,032,877	82,333,074	37,263,183
Cash and cash equivalents at the end of the year		66,898,438	78,529,331	72,425,067	82,333,074
Analysis of Cash and Cash Equivalents
Cash and cash equivalents	20	67,705,791	79,916,559	73,244,043	83,722,721
Bank overdrafts	37	(807,353)	(1,387,228)	(818,976)	(1,389,647)
Cash and cash equivalents at the end of the year		66,898,438	78,529,331	72,425,067	82,333,074

The Notes form an integral part of these Financial Statements.