Our Business Model

Strategic Direction

We are pleased to report that SDB bank remained on course with its strategic objectives throughout the height of Covid-19 market disruptions in Sri Lanka, and continued to deliver value by connecting with all stakeholders. Investments into ICTs in the recent past, made
it possible to transition the Bank’s operating model smoothly onto digital platforms, ensuring access to all essential financial services for customers, while enabling the Bank to meet all regulatory compliance requirements.

The Bank’s business model revolves around financial intermediation and maturity transformation. It is designed to ensure that we are geared to make the most of future opportunities while mitigating risks. Financial intermediation necessitates and allows the Bank to operate with higher business volumes in comparison with the available capital.

The underlying gearing and maturity transformation expose the Bank to various risks such as credit, market, and operational in addition to global, local, and industry trends. We have deployed a robust risk management framework to manage all such risks underlying our business model.

Our strategic direction provides focus and structure for internal responsibilities. It also gives employees a common purpose towards which to drive their activities. Aligning with the Sustainable Development Goals. As a responsible corporate citizen with a strong rural presence in Sri Lanka we are able to leverage our strategic direction and core operations towards the socio-economic progress of the communities within which we operate. By aligning them in this manner, we also contribute towards the UN Sustainable Development Goals (SDGs).

By steering the business in alignment with our transformation agenda and the SDGs, we are better able to meet our development mission sustainably while lessening our impact on the environment

SDG 2 – Zero hunger

We continued to focus on the under-banked and unbanked segments in the agriculture sector, supporting value chains and partnering to offer our customers improved opportunities to further their enterprises.

SDG 4 – Quality education

Our CSR initiative, SDB Lakdaru Scholarship Seminars, assist children in under-served rural communities face the Grade 5 scholarship examination by conducting educational seminars in Sinhala and Tamil throughout the country. In 2020, we temporarily halted the programme as schools were closed and children could not assemble, due to the threat of COVID-19 infections.

SDG 5 – Gender equality and women empowerment

Empowering women in a bid to bridge the gender gap is a key aspect of our transformation agenda. “SDB Uththamavi” is an investment and lending product that provides women entrepreneurs with attractive rates. During the reporting year Bank gave financial support for entrepreneurial activities of women. SDB is an equal opportunity employer with females comprising 48% of the total permanent workforce.

SDG 7 – Affordable and clean energy

While we focus on improving financial literacy and financial inclusion to those who are excluded from mainstream financial services we also encourage them to opt for clean forms of energy. We do so by making such options more affordable and attractive to them through our green leasing products.

SDG 8 – Economic growth

By contributing towards economic growth we also indirectly contribute towards meeting the SDGs of zero hunger and alleviating poverty. This is made possible through our close association with the rural sector and their activities in investment and lending in the microeconomic segment of the market.

SDG 10 – Reduced inequality

In 2020, SDB bank supported this SDG by helping to bridge the urban-rural digital divide at a faster pace than ever before, by connecting cooperative societies and their members, to digital financial services. We also continued to lend to cooperative societies, which contributes towards narrowing the income gap by channelling funds to the grassroots. We also actively participated in distributing Government funds, at concessionary rates, as a way of contributing towards rural development and poverty alleviation.

SDG 12 – Sustainable consumption and production

We are committed to consumption practices that contribute towards reducing, recycling, and reusing resources. This has cut costs in and usage of paper, fuel, and energy. Through these initiatives we have also been able to reduce electronic waste.

SDG 15 – Life on land

Our contributions towards protecting, restoring and promoting sustainable use of terrestrial ecosystems, halting and reversing land degradation, and halting bio diversity loss has included the planting of trees and the cleaning up of litter.