Board Human Resources and Remuneration Committee (BHRRC) of SDB bank was established under the Terms of Reference approved by the Board of Directors of the Bank. Its primary responsibility is to establish the conceptual framework on establishing Remuneration Policy and other key policies related to Human Resources Management and Development.

Composition of BHRRC

The Board Human Resources and Remuneration Committee consists of five (05) Non-Executive Directors appended below:

• Mr Chaaminda Kumarasiri – Chairman (BHRRC), Independent, Non-Executive Director
• Mr Lakshman Abeysekera – Chairman, Independent, Non-Executive Director
• Ms Dinithi Ratnayake – Non-Independent, Non-Executive Director (Appointed to the BHRRC w.e.f. 26 May 2020)
• Mr J A Lalith G Jayasinghe – Non-Independent, Non-Executive Director (Appointed to the BHRRC w.e.f. 21 August 2020)
• Mr Prasanna Premaratna – Independent, Non-Executive Director (Appointed to the BHRRC w.e.f. 18 September 2020)

Ms Samadanie Kiriwandeniya, Non-Independent, Non-Executive Director served as a member of the Committee until retired from the Board on 22 May 2020. The committee take this opportunity to place on record the appreciation for the valuable services rendered
by Ms Samadanie Kiriwandeniya as a member of the Committee.

Company Secretary of the Bank serves as the Secretary to the Committee based on the approved Terms of Reference of the Committee. Attendance of the Committee meetings is mandatory for the Chief Executive Officer and the Head of Human Resources, except when matters relating to those two positions are discussed.

Committee meetings of BHRRC

The Committee held eighteen (18) Board Human Resources and Remuneration Committee meetings during the year under review to endorse proposals related to a wide array of aspects relating to the Human Resources Function of the Bank. The Committee has been able to continuously direct the HRM functions of the Bank to align with its strategic direction while complying with the regulatory and statutory framework of the Bank.

Scope and responsibilities

The Board Human Resources and Remuneration Committee is vested in assisting the Board to discharge its responsibilities in the following areas:

• Guide the implementation of Human Resource Management and Human Resource Development functions of the Bank
• Provide guidance to ensure that HR policies and strategies are aligned with the strategic direction of the Bank
• Provide the necessary direction for fostering performance culture within the Bank
• Ensure conformity of Bank’s HR policies and practices with labour laws, Central Bank regulations and other applicable standards

Key HR initiatives during the year

During the year, the Committee, comprehensively reviewed the performance of the Key Management Personnel (KMP) of the Bank for the year 2019 against the set goals and targets. They also set goals and targets for KMPs for 2020 in line with the strategic vision and direction of the Bank in 2020.

The Committee acknowledges that in addition to effective strategic planning and talent management, cultivating a work environment that supports and sustains a culture of superior performance that drives success both current and in the future is essential and thus approved a performance-linked bonus plan for all staff according to the overall achievement of Bank level profit target, a rewarding incentive scheme for sales personnel and a performance-based variable pay plan for support staff.

The Committee approved a comprehensive framework for the Human Resource Management and Development process. Upon the recommendation of the Corporate Management, three Management Positions were parallelly transferred and designated as new positions; Head of Business Banking, Head of Risk Management, and Chief Digital Officer. Further, Head of SME was promoted to the AGM grade and her remuneration was approved by the BHRRC.

The Committee also approved few new recruitments to some of the key positions such as Chief Risk Officer, Head of Marketing, Head of Retail Banking, Head of Branch Operation and Senior Manager – Sustainable Banking.

Further Committee recommended the amendments to the Promotion Policy and Staff Loan Policy, for the approval of the Board.

For and on behalf of the Board Human Resources and Remuneration Committee,

Chaaminda Kumarasiri
Chairman
Board Human Resources and Remuneration Committee

19 March 2021
Colombo, Sri Lanka