BANK		GROUP
For the year ended 31 December	Note	2021 LKR ’000	2020 LKR ’000	2021 LKR ’000	2020 LKR ’000
Cash flows from operating activities
Interest receipts		29,236,132	30,020,544	29,236,849	30,016,182
Interest payments		(24,807,821)	(28,898,275)	(24,785,372)	(28,867,010)
Net commission receipts		2,791,414	2,194,100	2,791,414	2,194,100
Net trading income		740,546	33,140	740,546	33,140
Recoveries from loans previously written-off		66,380	42,021	66,380	42,021
Receipts from other operating activities		1,965,634	3,220,616	2,586,364	3,942,850
Payments on other operating activities		(2,972,426)	(3,235,643)	(2,974,520)	(3,539,577)
Cash payments to employees		(3,220,515)	(3,509,801)	(3,646,484)	(3,509,801)
Taxes on financial services		(1,295,997)	(1,028,489)	(1,295,997)	(1,028,489)
Operating cash flows before changes in operating assets and liabilities		2,503,347	(1,161,787)	2,719,180	(716,584)
(Increase)/decrease in operating assets:
Balances with Central Bank/deposits held for regulatory or monetary control purposes		(4,457,488)	3,764,794	(4,457,488)	3,764,794
Financial assets at amortised cost – Loans to and receivables from other customers		(64,446,256)	(31,967,075)	(64,446,256)	(31,967,075)
Others		915,872	910,313	1,290,203	833,751
Increase/(decrease) in operating liabilities:
Financial liabilities at amortised cost – Due to depositors		10,583,256	60,833,677	10,217,972	60,451,771
Negotiable certificate of deposits		(148,495)	1,576,253	(148,495)	1,576,253
Others		(1,750,936)	(1,492,634)	(1,754,127)	(1,334,358)
Net cash flows (used in)/from operating activities before income tax		(56,800,700)	32,463,541	(56,579,011)	32,608,552
Income tax paid	49	(1,621,286)	(615,096)	(1,681,790)	(671,516)
Net cash flows (used in)/from operating activities		(58,421,986)	31,848,445	(58,260,801)	31,937,036
Cash flows from investing activities
Dividends received from investment in subsidiaries, joint venture, and associate	16	89,277	139,276	–	50,000
Dividends received from other investments		685,279	419,077	685,272	419,076
Interest received		8,319,619	8,094,360	8,344,867	8,134,721
Government Securities – net		33,646,475	(16,828,764)	33,646,475	(16,828,764)
Proceeds from sale and redemption of securities		7,279,798	5,580,763	7,295,398	5,601,163
Purchase of financial investments		(6,881,648)	(3,040,582)	(6,881,648)	(3,040,582)
Purchase of property, equipment, intangibles and investment property	39 to 40	(1,417,208)	(1,761,511)	(1,421,785)	(1,761,967)
Proceeds from sale of equipment, investment property and others		37,920	–	43,506	–
Net cash flows from/(used) in investing activities		41,759,512	(7,397,381)	41,712,085	(7,426,353)
Cash flows from financing activities
Issue of debentures		–	9,523,000	–	9,523,000
Redemption of debentures		(956,860)	(5,000,000)	(956,860)	(5,000,000)
Borrowing, medium and long-term		36,582,813	16,212,712	36,582,813	16,212,712
Other borrowings – net		(9,585,177)	(14,571,228)	(9,585,177)	(14,571,228)
Repayment of borrowing, medium and long-term		(15,540,186)	(12,334,236)	(15,540,186)	(12,334,236)
Dividends paid		(506)	(757,900)	(89,399)	(839,800)
Net cash flows from/(used in) financing activities		10,500,084	(6,927,652)	10,411,191	(7,009,552)
Net (decrease)/increase in cash and cash equivalents		(6,162,390)	17,523,412	(6,137,525)	17,501,131
Cash and cash equivalents at the beginning of year		23,138,651	5,615,239	23,160,931	5,659,800
Cash and cash equivalents at the end of year		16,976,261	23,138,651	17,023,406	23,160,931
Reconciliation of cash and cash equivalents with items reported in the statement of financial position
Cash and cash equivalents	26	10,688,255	7,724,364	10,690,873	7,728,969
Placements with banks	28	6,288,006	15,414,287	6,332,533	15,431,962
		16,976,261	23,138,651	17,023,406	23,160,931

The Statement of Cash Flows of the Bank includes the results of associate, joint venture, and subsidiary companies only to the extent of the cash flows between Bank and respective companies as required by Sri Lanka Accounting Standards.

The notes to the financial statements from pages 179 to 309 form part of these financial statements.

Reconciliation of profit for the year to operating cash flows before changes in operating assets and liabilities

		BANK		GROUP
	Note	2021 LKR ’000	2020 LKR ’000	2021 LKR ’000	2020 LKR ’000
Profit before income tax		4,326,464	3,398,440	4,858,676	3,943,886
Add/(deduct) items not using (providing) cash:		5,856,107	4,846,088	5,614,618	4,525,559
Depreciation
– Property, plant and equipment, and investment property	19	415,353	383,461	458,900	428,726
– Right-of-use assets	19	287,629	292,457	287,629	292,757
Amortisation –
Intangible assets	19	320,869	243,739	327,644	249,475
Unrealised gains on trading securities	13	(197,804)	(90,525)	(197,804)	(90,525)
Net loss from financial instruments at fair value
Contracts with commercial banks	14	217,548	543,169	217,548	543,169
Foreign exchange loss/(gain)	16	304,580	(23,292)	303,218	(23,292)
Impairment for loans and other losses	17	4,485,288	3,297,892	4,485,288	3,327,892
Share of profits of associate and joint venture		–	–	(296,662)	(407,785)
Provision for defined benefit plans	18	22,644	199,187	28,857	205,142
Deduct items reported under investing activities		(9,666,876)	(8,394,133)	(9,584,596)	(8,269,847)
Dividend income		(1,043,071)	(883,303)	(953,794)	(744,026)
Gain on sale of Government Securities	15	(1,325,748)	(505,284)	(1,325,748)	(505,284)
Gain on sale of equity securities	15	(65,260)	(5,102)	(65,260)	(5,102)
Gain on sale of property, plant and equipment	16	10,388	(13,708)	(1,723)	(23,240)
Interest income from investments		(7,243,185)	(6,986,736)	(7,238,071)	(6,992,195)
Deduct changes in operating assets and liabilities:		1,987,652	(1,012,182)	1,830,482	(916,182)
Decrease/(increase) in account receivables		1,491,565	(733,669)	853,850	(450,322)
Increase/(decrease) in account payables		496,087	(278,513)	976,632	(465,860)
Operating cash flows before changes in operating assets and liabilities		2,503,347	(1,161,787)	2,719,180	(716,584)

The notes to the financial statements from pages 179 to 309 form part of these financial statements.