Statement of Directors’ Responsibility for Financial Reporting



The responsibilities of the Directors in relation to the Financial Statements of Sampath Bank PLC (“the Bank”) and the Consolidated Financial Statements of the Bank and its Subsidiaries (“the Group”) are set out in the following Statement. The responsibility of the Auditor in relation to the Financial Statements are set out in the Report of the External Auditor; Messrs Ernst & Young, on pages 270 to 272.

In terms of Sections 150(1), 151, 152 and 153(1) and (2) of the Companies Act No. 07 of 2007 (Companies Act), the Directors of the Bank are responsible for ensuring that the Bank and the Group keep proper books of accounts of all transactions and prepare Financial Statements that give a true and fair view of the financial position of the Bank and the Group as at end of each financial year and of the financial performance of the Bank and the Group for each financial year and place them before the Annual General Meeting for shareholders for their approval. The Financial Statements comprise of the Statement of Financial Position as at end of the financial year, the Statement of Profit or Loss, the Statement of Comprehensive Income, the Statement of Cash Flows, the Statement of Changes in Equity for the financial year ended and Notes thereto.

The Financial Statements are prepared under the supervision of the Executive Director/ Chief Financial Officer who is a senior member of the Corporate Management and an Executive Director of the Bank. The Directors confirm that the Financial Statements of the Bank and the Group give a true and fair view of:

The Directors oversee the following to support the preparation of these Financial Statements:

The Directors are also responsible for ensuring that the Bank and the Group have adequate resources to continue in operation, to justify applying the Going Concern basis in preparing these Financial Statements. In the current financial year, the Directors also considered ongoing local and global economic issues and their impact on the Group’s business, operations and potential implications on future performance.

The Financial Statements of the Bank and the Group have been certified by the Executive Director/Chief Financial Officer, who is the officer responsible for its preparation, as required by the Companies Act. The Accounts have been reviewed by the Board Audit Committee (BAC) and the Board of Directors. Further, the Financial Statements of the Bank and the Group have been signed by three Directors and the Company Secretary in conformity with the requirements of the Companies Act.

The Financial Statements for the year 2024 captured in this Annual Report are consistent with the underlying books of accounts and are in conformity with the requirements of the Sri Lanka Accounting Standards, the Companies Act, the Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995, the Banking Act together with its amendments, the Listing Rules of the CSE and the Code of Best Practice on Corporate Governance 2023 issued by the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka). Further, these Financial Statements comply with the prescribed format issued by the Central Bank of Sri Lanka (CBSL) for the preparation of Annual Financial Statements of Licensed Commercial Banks.

The Directors confirm that the Financial Reporting System of the Bank and the Group has been designed to provide reasonable assurance regarding the reliability of financial reporting and the Directors accept responsibility for the integrity and objectivity of the Financial Statements published in this Annual Report. The Directors confirm that in preparing the Financial Statements given on pages 274 to 421, appropriate accounting policies have been selected and applied on a consistent basis in line with the Financial Reporting Framework, while reasonable and prudent judgments have been made so that the form and substance of transactions are properly reflected.

The Directors have taken appropriate steps to ensure that the Bank and the Group maintain proper books of accounts and review the Financial Reporting System directly at their regular meetings and also through the BAC. The Report of the BAC is given on pages 199 to 201. The Board of Directors reviews the Interim Financial Statements with due consideration to the recommendation of BAC. Interim Financial Statements are approved by the Board prior to their release.

The Directors have taken all reasonable steps available to them to safeguard the assets of the Bank and the Group and to prevent and detect frauds and any other irregularities. For this purpose, the Directors have instituted effective and comprehensive systems of internal controls for identifying, recording, evaluating and managing the significant risks faced by the Bank throughout the year. These systems are kept under constant review by the Board to ensure appropriate financial and other controls are in place to enable the Bank to carry on its operations in an orderly manner, safeguard the assets, prevent and detect frauds and other irregularities and secure as far as practicable, the accuracy and reliability of the records.

Based on their assessment of Internal Control Over Financial Reporting (ICOFR), in compliance with Section 3(8)(ii)(b) of the Banking Act Direction No. 11 of 2007 on Corporate Governance for the Licensed Commercial Banks issued by the CBSL, the Directors have concluded that, as of 31st December 2024, the Group’s Internal Controls Over Financial Reporting are effective. The Directors’ Statement on Internal Control Over Financial Reporting and Annual Report of the Board of Directors on the Affairs of the Company are provided on pages 264 and 265 and pages 255 to 263 respectively of this Annual Report. The Independent Assurance Report on the “Directors’ Statement on Internal Control Over Financial Reporting” issued by the Bank’s External Auditor; Messrs Ernst & Young is given on page 266 of this Annual Report.

As required by Section 56(2) of the Companies Act, the Directors have made an assessment of the Solvency of the Bank, immediately after the payment of the proposed final dividend of Rs 9.35 per share in cash for the year 2024 and confirm that the Bank satisfies the Solvency Test as required by Section 57 of the Companies Act. The Directors have also obtained the Certificate of Solvency from the External Auditor.

Messrs Ernst & Young, have been provided with every opportunity to undertake the inspections they considered appropriate. They have examined the Financial Statements made available to them by the Directors along with all financial records, related data, minutes of the Shareholders’ Meetings, Directors’ Meetings, BAC Meetings and other Board Sub-Committee Meetings and have expressed their opinion as reported by them in the Annual Report on pages 270 to 272.

The Directors have ensured that this Annual Report has been published in accordance with the timelines required by the Sections 166(1) and 167(1) of the Companies Act. Printed copies of this Annual Report will be made available to the shareholders of the Bank who will express their desire to receive such a copy. The PDF version of the Annual Report is available on the Bank’s corporate website where it is shown under the ‘Investor Relations' tab.



The PDF version of the Sampath Bank PLC Annual Report 2024 has also been uploaded to the CSE website within the stipulated period of time as required by the Sections 7.5(a) and (b) of the Listing Rules of the CSE.

COMPLIANCE REPORT

The Directors confirm that to the best of their knowledge, all taxes, duties and levies payable by Sampath Bank and the Group, all contributions, levies and taxes payable on behalf of and in respect of the employees of the Bank and the Group and all other known statutory dues as were due and payable by the Bank and the Group as at reporting date, have been paid or, where relevant, provided for, except as specified in Note 45 to the Financial Statements covering contingent liabilities. The Directors confirm that based on their assessment, the accounting controls are adequate and nothing has come to their attention to indicate any breakdown in the functioning of these controls that may result in material loss to the Bank. The Directors also confirm that the Bank has adequate resources to continue operational existence and continue as a Going Concern for the foreseeable future.

This report also complies with GRI standards as encouraged by the Banking Act Directions No. 05 of 2022. The Bank is also preparing for the compulsory adoption of SLFRS S1 and SLFRS S2 from 1st January 2025 as it is one of the top 100 listed public companies as set out on the standards.

The Directors are of the view that they have discharged their responsibilities as set out in the above statement.

By order of the Board,



17th February 2025
Colombo, Sri Lanka

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