GRI 102-46, 102-47, 102-48, 102-49

The Board of Directors is pleased to present to the shareholders the eighth integrated Annual Report of the Company.

The Report has been structured to present a balanced and comprehensive assessment of our financial, social, and environmental impacts, resulting from our value creating activities and includes the Audited Financial Statements of the Company for the year ended 31 March 2021, and the Independent Auditors’ Report on the Financial Statements conforming to all applicable statutory requirements. The Financial Statements of the Company which is duly certified by the Chief Financial Officer and approved by the Board Audit Committee and the Board of Directors and signed by the Chairman and the Managing Director as per the requirements of the Companies Act No. 07 of 2007 appear on pages 129 to 248.

The Directors are responsible for the preparation of the Financial Statements of the Company and for ensuring that the Financial Statements have been presented in accordance with the Sri Lanka Accounting Standards and to provide the information required by the Companies Act No. 07 of 2007 and the Finance Business Act No. 42 of 2011. The Directors are of the view that the Financial Statements appearing on pages 129 to 248 have been prepared in conformity with the requirements of Sri Lanka Accounting Standards (LKASs and SLFRSs) issued under the Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995, the Companies Act No. 07 of 2007 and the Finance Business Act No. 42 of 2011 and amendments thereto and the Listing Rules of the Colombo Stock Exchange (CSE) including the Rules pertaining to Related Party Transactions as required by Section 9.3.2 (c) and (d) thereof and the recommended best practice. The Statement of Directors’ Responsibility for Financial Reporting appearing on page 124 forms an integral part of this Report.

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 page 95 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.

The Report, where applicable, has been prepared in accordance with the Guiding Principles and the Content Elements as stipulated by the International <IR> Framework issued by the International Integrated Reporting Council (IIRC). We report on financial and non-financial performance for the year in review, including our risk management, corporate governance practices and provide forward-looking information in terms of our short-, medium- and long-term strategic outlook, highlighting the material relationships between stakeholders and strategy that form the basis of our value-creation process. In determining the report content, due consideration has been given to sustainability reporting principles including Stakeholder Inclusiveness, Sustainability Context, Materiality and Completeness.

Having reviewed the Company’s business plans, the Board of Directors is satisfied that the Company has adequate resources to continue its operations in the foreseeable future. The Report explains how we have created value during the year under review, and provides a well-rounded appreciation of the state of operations, instilling confidence of the stakeholders in the Company’s prospects for future growth and sustainability.

Reporting period and boundary

GRI 102-50, 102-51, 102-52, 102-1, 102-45

The Report covers the operations of Citizens Development Business Finance PLC (CDB) identified as the “Company”.

The Report covers the period from 1 April 2020 to 31 March 2021, which is consistent with our usual annual reporting cycle. The key financial and non-financial aspects are discussed in the context of the Company unless stated otherwise. Our most recent report for the year ended 31 March 2020 is available on our website:

Key frameworks and compliance

GRI 102-45, 102-54

The Company’s social and environmental impacts are presented in accordance with the GRI Standards: Core option.
The following laws, regulatory frameworks, standards, guidelines and protocols have been followed in the preparation of this Report.

  • The IIRC Framework (
  • Sri Lanka Accounting Standards issued by The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka)
  • “A Preparer’s Guide to Integrated Corporate Reporting” and “Guidelines for Presentation of Annual Reports 2021”, published by The Institute of Chartered Accountants of Sri Lanka
  • Sustainable Development Goals (SDGs) – The UN initiative with 17 aspirational “Global Goals”
  • Smart Media MethodologyTM for Integrated Reporting

The Directors, to the best of their knowledge and belief are satisfied that all statutory payments to the Government, other regulatory institutions, and to employees have been made in time. The Board of Directors reviewed the business plans of the Company and is satisfied that the Company has adequate resources to continue its operations in the foreseeable future. Accordingly, the Financial Statements of the Company are prepared based on the going concern assumption.

The Board has carefully 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 Integrated Annual Report while preserving its integrity. The extent of compliance with the requirements of Section 168 of the Companies Act No. 7 of 2007 and amendments thereto and other relevant statutes is disclosed in detail on pages 4 to 5. The Board wishes to confirm that the Company has prepared the Annual Report in time as required by the Sections 166 (1) and 167 (1) of the Companies Act. The Financial Statements of the Company for the year ended 31 March 2021, including comparatives for 2020, were approved and authorised for issue by the Board of Directors in accordance with the Resolution of the Directors on 10 June 2021. The appropriate number of copies of the Annual Report will be submitted to the CSE within the statutory deadlines and soft copies of same will be hosted on the website of the Company,

Precautionary principle

GRI 102-11

The precautionary principle has been applied in relation to the Company’s social and environmental sustainability. As a responsible corporate citizen, necessary measures have been taken by us to mitigate the risks caused to society and environment through our actions.

Improvements in reporting

This Report has been structured to effectively communicate our efforts to create value to all our stakeholders across the short, medium and long term through our business model on page 38. Accordingly, we have identified the emerging developments and trends that are likely to impact our business model and value creation process. These trends were then categorised into risks and opportunities based on their importance to the Company and the stakeholders, together with the stakeholders that are likely to be affected most. The Value Creation Story (pages 36 to 84) contained in this Report provides a detailed account of the strategic imperatives and strategies to mitigate risks and capitalise on opportunities. The underlying governance structure and the risk management framework are detailed on pages 85 to 105.

External Auditors and assurance

GRI 102-56

The Financial Statements and sustainability indicators included in this report have been audited by Messrs. KPMG, who have expressed an opinion on the true and fair view of the annual financial statements as shown on pages 135 to 138 and assurance on sustainability indicators as shown on pages 254 to 256 of this Annual Report. As far as the Directors are aware, the Auditors do not have any other relationship with the Company. The External Auditors do not have any interest in contracts with the Company.

Disclosure on the affairs of the Company's related party transactions

There are no related party transactions which exceed 10% of the equity or 5% of the total assets, whichever is lower, and the Company has complied with the requirements of the Listing Rules of the CSE 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 45 of this Annual Report and a summary of the said transactions carried out during the FY was presented to the Board on 18 May 2021.


GRI 102-3, 102-53

We welcome your comments and suggestions on our Report. Please direct your feedback to:

Ms Ovini Dias
Assistant Manager – Sustainability
Citizens Development Business Finance PLC,
No. 123, Orabipasha Mawatha,
Colombo 10.

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

Chairman/Non-Executive Independent Director

Mahesh Nanayakkara

Managing Director/Chief Executive Officer/Executive Director

Senior Prof Sampath Amaratunge

Non-Executive Independent Director

Damith Tennakoon

Deputy CEO/Chief Financial Officer/Executive Director

Roshan Abeygoonewardena

Executive Director

Sasindra Munasinghe

Executive Director

Dave De Silva

Executive Director

Karthik Elangovan

Executive Director

Prof Prasadini Gamage

Non-Executive Independent Director

Jagath Abhayaratne

Non-Executive Director

Ms Rajitha Perera

Non-Executive Independent Director

Sujeewa Kumarapperuma

Non-Executive Director

Samitha Hemachandra

Non-Executive Director

10 June 2021