BANK		GROUP
For the year ended 31 December	Note	2023 LKR ’000	2022 LKR ’000	2023 LKR ’000	2022 LKR ’000
Cash flows from operating activities
Interest receipts		94,707,773	61,237,255	94,801,907	61,317,563
Interest payments		(59,513,733)	(34,013,778)	(59,449,795)	(33,952,168)
Net commission receipts		5,087,447	3,683,160	5,087,447	3,683,160
Net trading income		48,469	28,469	48,469	28,469
Recoveries from loans previously written off		16,767	162,518	16,767	162,518
Receipts from other operating activities		125,212	527,653	521,132	1,077,113
Payments on other operating activities		(6,250,903)	(5,308,678)	(5,837,596)	(5,044,500)
Cash payments to employees		(4,772,478)	(4,660,084)	(5,257,537)	(5,080,846)
Taxes on financial services		(3,234,294)	(1,173,413)	(3,234,294)	(1,173,413)
Operating cash flows before changes in operating assets and liabilities		26,214,260	20,483,102	26,696,500	21,017,896
Decrease/(Increase) in operating assets:
Balances with Central Bank/deposits held for regulatory or monetary control purposes		6,923,093	1,569,108	6,923,093	1,569,108
Financial assets at amortised cost – Loans to and receivables from other customers		735,466	29,673,313	735,466	29,673,313
Others		3,409,013	(6,847,527)	3,460,440	(6,880,994)
Increase/(decrease) in operating liabilities:
Financial liabilities at amortised cost – due to depositors		37,195,041	9,689,742	37,065,783	9,214,443
Others		433,525	(991,233)	433,606	(1,058,272)
Net cash flows from operating activities before income tax		74,910,398	53,576,505	75,314,888	53,535,494
Surcharge tax paid		–	(1,232,490)	–	(1,309,892)
Income tax paid	46	(4,305,780)	(1,531,379)	(4,446,618)	(1,630,622)
Net cash flows from operating activities		70,604,618	50,812,636	70,868,270	50,594,980
Cash flows from investing activities
Dividend received from investment in subsidiaries, joint venture, and associate	15	78,118	89,861	–	–
Dividend received from other investments		111,605	695,331	111,605	695,331
Government securities – net		(82,162,743)	(30,362,319)	(82,162,743)	(30,362,319)
Proceeds from sale and redemption of securities		654,149	700,697	654,149	715,734
Purchase of financial investments		(1,535,338)	(1,342,486)	(1,509,437)	(1,359,957)
Purchase of property, equipment, intangibles and investment property		(1,454,768)	(1,050,400)	(1,546,054)	(1,114,992)
Proceeds from sale of equipment, investment property and others		15,502	12,469	15,502	12,469
Net cash flows used in investing activities		(84,293,475)	(31,256,847)	(84,436,978)	(31,413,734)
Cash flows from financing activities
Redemption of debentures		(8,956,610)	–	(8,956,610)	–
Issue of new shares under rights issue	50	–	3,620,001	–	3,620,001
Borrowing, medium and long-term		1,754,143	4,834,232	1,754,143	4,834,232
Other borrowing – net		44,673,126	12,771,705	44,673,126	12,771,705
Repayment of borrowing, medium and long-term		(11,512,493)	(26,410,731)	(11,512,493)	(26,410,731)
Dividends paid		–	–	(101,536)	(85,800)
Net Cash flows from/(used in) financing activities		25,958,166	(5,184,793)	25,856,630	(5,270,593)
Net increase in cash and cash equivalents		12,269,309	14,370,996	12,287,922	13,910,653
Cash and cash equivalents at the beginning of the year		31,347,257	16,976,261	31,369,128	17,458,475
Cash and cash equivalents at the end of the year		43,616,566	31,347,257	43,657,050	31,369,128
Reconciliation of cash and cash equivalents with items reported in the statement of financial position
Cash and cash equivalents	25	14,478,468	16,122,565	14,483,062	16,126,635
Placements with banks	27	29,138,098	15,224,692	29,173,988	15,242,493
		43,616,566	31,347,257	43,657,050	31,369,128

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 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	2023 LKR ’000	2022 LKR ’000	2023 LKR ’000	2022 LKR ’000
Profit before income tax		10,960,326	2,439,473	12,508,149	3,112,212
Add/(deduct) items not using (providing) cash:		14,315,917	18,605,282	13,264,760	18,342,253
Depreciation
– Property plant and equipment and investment property	18	382,427	400,320	438,893	455,785
– Right-of-use assets	18	326,149	309,678	328,099	309,678
Amortisation –
Intangible assets	18	415,277	414,668	423,671	422,970
Accretion of interest on right-of-use assets	11.1.2	153,345	141,899	154,570	141,899
Net gains from trading
Unrealised loss on trading securities	13	231,506	239,223	231,506	239,223
Forward exchange fair value changes from banks and other customers	13	384,709	(299,859)	384,709	(299,859)
Foreign exchange (gains)/losses	15, 13	(1,563,021)	170,534	(1,548,076)	151,953
Impairment for loans and other losses	16	13,984,830	17,041,471	13,984,830	17,058,972
Share of profits of associate and joint venture		–	–	(1,140,981)	(332,719)
Provision for defined benefit plans	17	695	187,348	7,540	194,351
Deduct items reported under investing activities		(3,598,282)	(1,316,969)	(3,598,282)	(1,227,108)
Dividend income		(741,555)	(1,209,113)	(741,555)	(1,119,252)
Gains on sale of Government securities	14	(2,838,626)	(99,112)	(2,838,626)	(99,112)
Gains on sale of property, plant and equipment	15	(18,101)	(8,744)	(18,101)	(8,744)
Deduct changes in operating assets and liabilities:		4,536,299	755,316	4,521,872	790,539
Increase in account receivables		(2,258,639)	(6,527,119)	(2,220,165)	(6,594,969)
Increase in account payables		6,794,938	7,282,435	6,742,037	7,385,508
Operating cash flows before changes in operating assets and liabilities		26,214,260	20,483,102	26,696,500	21,017,896

The notes to the financial statements form part of these financial statements.