In the year 2015, the Board established the Board Strategic Planning Committee (BSPC). The main objective of this Committee is to assist the Board in effectively undertaking its responsibility in setting and modifying the strategic business direction of the Bank and to increase profits and brand equity in a sustainable, appropriate, and responsible manner.

Composition of the BSPC

BSPC comprises four (04) Non-Executive Directors, appointed by the Board of Directors. During the year, 2022 the following Directors served on BSPC.

• Ms Dinithi Ratnayake – Chairperson (BSPC) Independent, Non-Executive Director
• Mr Chaaminda Kumarasiri - Independent, Non-Executive Director
• Mr Prasanna Premaratna - Independent, Non-Executive Director
• Mr Conrad Dias - Non-Independent, Non-Executive Director

Mr.Lakshman Abeysekera – Independent, Non-Executive Director served as a member of the Committee until he retired from the Board on 29.04.2022 and Mr.Prabhash Subasinghe Non- Independent , Non-Executive Director served as a member of BSPC until he resigned from the Board on 31.12.2022. We take this opportunity to place on record the Committees appreciation for the valuable services rendered by Mr.Lakshman Abeysekera and Mr.Prabhash Subasinghe as member of the Committee.

The Company Secretary of the Bank serves as secretary to the Committee based on the approved TOR for the Committee. DGM – Finance & Planning/CFO was appointed as Secretary to the Committee with effect from 16th December 2022.

Meetings of BSPC

The Committee met three (03) times during the year. Committee reviewed the SDB bank Strategies 2022 and developed the bank’s strategy for 2023 – 2026.

During the period under review BSPC, due to the evolving operating environment on the back of the unprecedented economic crisis, decided to prepare a high level 3 year Strategy framework for the period 2023-2025. The Strategy framework was based on innovative perspective rather than one derived out of analysis perspective. The outline of the framework;

• each of the Strategic Segments/Horizons is based on core, growth and explore perspectives.
• the position of Bank’s identity & positioning – to be focus on Banking the progressive masses.
• Co-operative Strategy
• Retail / SME Strategy
• ESG Strategy
• Data & Digital Strategy
• Communication Strategy were drawn

The finalisation of the Strategy for 2023-2025 encompassing the implementation, cascading of the goals, KPI setting is an ongoing exercise.

The Scope of TOR

• In depth revision of the performance of the Bank on the strategic goals laid down in the Corporate Plan of the Bank, review of strategic and technical plans developed by the Management to achieve the Business Development Goals of the Bank, identify areas to be improved, taking into account the new market opportunities and threats , strategic goals of the Bank and the Bank’s internal strengths and limitations .
• Examine the overall Marketing Strategy of the Bank and recommend the business development plans presented by the Corporate Management for the approval of the Board. In depth analysis of the strategic issues related to business expansion, identified by the Board and the Bank’s business promotion plans, vis-a-vis benefits, risks, and strategic and financial implications on the organisation and the brand.
• Guide the Corporate Management and the Board on potential business expansion opportunities, especially in new markets and new technological platforms.

For and on behalf of the Board Strategic Planning Committee.

Dinithi Ratnayake
Chairperson
Board Strategic Planning Committee

12 April 2023
Colombo, Sri Lanka