Sampath Bank Annual Report 2023-24

The Board Cost Monitoring Committee established a clear framework for categorising and reporting capital expenditures, allowing the Bank to understand cost drivers and prioritise resource allocation effectively.

Harsha Amarasekera

Chairman

Regular attendees to the Committee meetings by invitation:

Managing Director
Executive Director/Chief Financial Officer
Any other officer/s required by the Committee

The Company Secretary functioned as the Secretary to the Committee and in his absence, a nominee appointed by the Company Secretary functioned as the Secretary to the Committee during the year under review.

REGULATIONS/RULES RELEVANT TO THE FUNCTIONS OF THE COMMITTEE

The role and functions of the Board Cost Monitoring Committee (BCMC) are defined by the provisions of the:

Banking Act Direction No. 01 of 2023 on Restrictions on Discretionary Payments of Licensed Banks issued by the Central Bank of Sri Lanka (the Direction).

(In compliance with the regulatory timelines specified in the above Direction, the Committee was discontinued with effect from 21st January 2025 at its meeting held on the same date.).

COMMITTEE MEMBERSHIP DURING THE YEAR 2024

Board Member	Directorship Status	Membership Status	Attendance (Attended/Eligible to Attend)
Mr Harsha Amarasekera	Non Independent/Non-Executive	Chairman	2/2
Mr Vajira Kulatilaka	Independent/Non-Executive	Member	2/2
Mrs Keshini Jayawardena	Independent/Non-Executive	Member	2/2
Mr Vinod Hirdaramani	Independent/Non-Executive	Member	2/2
Ms Aroshi Nanayakkara (Until 31st May 2024)	Independent/Non-Executive	Member	1/1

Refer pages 186 to 189 for the profiles of the committee members.

KEY ACTIVITIES IN 2024

In compliance with the 'Banking Act Direction No. 01 of 2023 issued by the Central Bank of Sri Lanka, the BCMC thoroughly monitored non-essential and/or non-urgent expenditures and/or capital expenditures to be incurred by the Bank ensuring that the Bank refrains from incurring or committing to non-essential or non-urgent expenditures/capital expenditures during the stipulated period, while exercising due diligence when incurring such expenditures and maintaining appropriate levels of liquidity and capital.
The Committee adopted a Board approved policy in terms of 3.4(c) of the Banking Act Direction No. 1 of 2023.

KEY RESPONSIBILITIES OF THE COMMITTEE

To evaluate and approve non- essential and/or non-urgent expenditure and or capital expenditure to be incurred by the Bank.
To perform any other activity within the scope of capital planning related functions or functions indicated in the Banking Act Direction No. 01 of 2023 that is deemed by the Committee to be required which will serve to enhance its or the capital planning function's effectiveness and efficiency.
To review the Terms of Reference of the Committee periodically and to ensure that it reflects the best practices of the industry at all times.
Even though the regulatory mandate to monitor the costs and capital expenditure of the Bank was concluded with the discontinuation of the Committee, the Board and its subcommittees will continue to better manage the costs and capital expenditure in accordance with their respective purview.

REPORTING TO THE BOARD

The minutes of the Committee meetings were tabled at Board meetings, thereby providing Board members with access to the deliberations of the Committee.

PERFORMANCE EVALUATION OF THE COMMITTEE

The annual self-evaluation of the Committee was conducted at the year-end by the members of the Committee. The results were discussed at the Committee with, where necessary, areas for improvement being identified and the plans for improvement being communicated to the Board.

On behalf of the Board Cost Monitoring Committee,

HARSHA AMARASEKERA

Chairman - Board Cost Monitoring Committee

17th February 2025

Colombo, Sri Lanka

Board Cost Monitoring Committee Report