BANK		GROUP
For the year ended 31 December	Note	2024 LKR ’000	2023 LKR ’000	2024 LKR ’000	2023 LKR ’000
Cash flows from operating activities
Interest receipts		72,411,055	94,707,773	72,495,455	94,801,907
Interest payments		(45,105,757)	(59,513,733)	(45,099,297)	(59,449,795)
Net commission receipts		6,234,565	5,087,447	6,234,565	5,087,447
Net trading income		(27,800)	48,469	(27,800)	48,469
Recoveries from loans previously written-off		45,317	16,767	45,317	16,767
Receipts from other operating activities		43,007	125,212	716,247	521,132
Payments on other operating activities		(6,942,627)	(6,250,903)	(6,760,446)	(5,837,596)
Cash payments to employees		(7,980,513)	(4,772,478)	(8,391,056)	(5,257,537)
Taxes on financial services		(4,225,077)	(3,234,294)	(4,225,077)	(3,234,294)
Operating Cash flows before changes in operating assets and liabilities		14,452,170	26,214,260	14,987,908	26,696,500
(Increase)/decrease in operating assets:
Balances with Central Bank/deposits held for regulatory or monetary control purposes		(220,570)	6,923,093	(220,570)	6,923,093
Financial assets at amortised cost – Loans and advances to customers		(54,272,513)	735,466	(54,272,513)	735,466
Others		4,074,326	3,212,236	4,052,413	3,263,663
Increase/(decrease) in operating liabilities:
Financial liabilities at amortised cost – due to depositors		66,329,274	37,195,041	65,845,284	37,065,783
Others		(144,188)	630,302	213,726	630,383
Net cash flows from operating activities before income tax		30,218,499	74,910,398	30,606,248	75,314,888
Income tax paid	49	(5,991,842)	(4,305,780)	(6,085,008)	(4,446,618)
Net cash flows from operating activities		24,226,657	70,604,618	24,521,240	70,868,270
Cash flows from investing activities
Dividends received from investment in subsidiaries, joint venture, and associate	15	86,798	78,118	–	–
Dividend received from other investments		694,086	111,605	694,086	111,605
Government securities – net		(17,900,048)	(82,162,743)	(17,900,048)	(82,162,743)
Proceeds from sale and redemption of securities		6,291,710	654,149	6,291,710	654,149
Purchase of financial investments		(16,455,360)	(1,535,338)	(16,456,836)	(1,509,437)
Purchase of property, equipment, intangibles and investment properties		(1,907,923)	(1,454,768)	(2,023,230)	(1,546,054)
Proceeds from sale of equipment, investment properties and others		10,949	15,502	10,949	15,502
Net cash flows used in investing activities		(29,179,788)	(84,293,475)	(29,383,369)	(84,436,978)
Cash flows from financing activities
Redemption of debentures		(3,804,760)	(8,956,610)	(3,804,760)	(8,956,610)
Issue of debentures		8,000,000	–	8,000,000	–
Borrowing, medium and long-term		3,651,136	1,754,143	3,651,136	1,754,143
Other short-term borrowing – net		(7,020,806)	44,673,126	(7,020,806)	44,673,126
Repayment of borrowing, medium and long-term		(13,488,861)	(11,512,493)	(13,488,861)	(11,512,493)
Dividends paid		(1,265,846)	–	(1,378,663)	(101,536)
Net Cash flows (used in)/ from financing activities		(13,929,137)	25,958,166	(14,041,954)	25,856,630
Net (decrease)/increase in cash and cash equivalents		(18,882,268)	12,269,309	(18,904,083)	12,287,922
Cash and cash equivalents at the beginning of the year		43,616,566	31,347,257	43,657,050	31,369,128
Cash and cash equivalents at the end of the year		24,734,298	43,616,566	24,752,967	43,657,050
Reconciliation of cash and cash equivalents with items reported in the statement of financial position
Cash and cash equivalents	26	13,504,806	14,478,468	13,523,475	14,483,062
Placements with banks	28	11,229,492	29,138,098	11,229,492	29,173,988
		24,734,298	43,616,566	24,752,967	43,657,050

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 235 to 374 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
For the year ended 31 December	Note	2024 LKR ’000	2023 LKR ’000	2024 LKR ’000	2023 LKR ’000
Profit before income tax		13,498,421	10,960,326	13,819,573	11,368,782
Add/(deduct) items not using (providing) cash:		5,271,930	14,315,917	5,374,774	14,368,428
Depreciation
– Property plant and equipment and investment properties	18	485,543	382,427	548,363	438,893
– Right-of-use assets	18	346,225	326,149	350,906	328,099
Amortisation – Intangible assets	18	384,525	415,277	390,929	423,671
Accretion of interest on right-of-use assets	11.1.2	144,282	153,345	146,803	154,570
Net gains from trading Unrealised loss on trading securities	13	(1,186,575)	231,506	(1,186,575)	231,506
Forward exchange fair value changes from banks and other customers	13	926,979	384,709	926,979	384,709
Foreign exchange gains	15 13	(802,607)	(1,563,021)	(788,096)	(1,548,076)
Impairment for loans and other losses	16	4,648,360	13,984,830	4,648,360	13,984,830
Share of profits of associate		–	–	1,536	(1,614)
Provision for defined benefit plans	17	325,198	695	335,569	7,540
Deduct items reported under investing activities		(5,018,000)	(3,598,282)	(4,931,203)	(3,598,282)
Dividend income		(1,129,895)	(741,555)	(1,043,098)	(741,555)
Gains on sale of government securities	14	(3,868,231)	(2,838,626)	(3,868,231)	(2,838,626)
Gains on sale of property, plant and equipment	15	(19,874)	(18,101)	(19,874)	(18,101)
Deduct changes in operating assets and liabilities:		699,819	4,536,299	724,764	4,557,571
Increase in account receivables		(4,630,782)	(2,258,639)	(4,330,388)	(2,184,466)
Increase in account payables		5,330,601	6,794,938	5,055,152	6,742,037
Operating cash flows before changes in operating assets and liabilities		14,452,170	26,214,260	14,987,908	26,696,500

The notes to the financial statements from pages 235 to 374 form part of these financial statements.