BANK		GROUP
For the year ended 31 December	Note	2025 LKR ’000	2024 LKR ’000	2025 LKR ’000	2024 LKR ’000
Cash flows from operating activities
Interest receipts		72,008,772	72,411,055	72,086,669	72,495,455
Interest payments		(43,689,066)	(45,105,757)	(43,686,526)	(45,099,297)
Net commission receipts		7,643,055	6,234,565	7,643,055	6,234,565
Net trading income		1,899,696	(27,800)	1,899,696	(27,800)
Receipts from other operating activities		389,358	88,324	1,146,064	761,564
Payments on other operating activities		(9,736,296)	(6,942,627)	(9,736,589)	(6,760,446)
Cash payments to employees		(7,342,435)	(7,980,513)	(7,781,209)	(8,391,056)
Taxes on financial services		(4,913,608)	(4,225,077)	(4,913,608)	(4,225,077)
Operating Cash flows before changes in operating assets and liabilities		16,259,476	14,452,170	16,657,552	14,987,908
(Increase)/decrease in operating assets:
Balances with Central Bank/deposits held for regulatory or monetary control purposes		(624,533)	(220,570)	(624,533)	(220,570)
Financial assets at amortised cost – Loans and advances to customers		(113,726,338)	(54,272,513)	(113,726,338)	(54,272,513)
Others		7,587,639	4,117,131	7,768,490	4,140,457
Increase/(decrease) in operating liabilities:
Financial liabilities at amortised cost – Due to depositors		85,654,337	66,329,274	85,727,196	65,845,284
Others		552,444	(152,012)	469,320	205,902
Net cash flows (used in)/from operating activities before income tax		(4,296,975)	30,253,480	(3,728,313)	30,686,468
Income tax paid	49	(6,207,611)	(6,034,647)	(6,323,418)	(6,173,051)
Net cash flows (used in)/from operating activities		(10,504,586)	24,218,833	(10,051,731)	24,513,417
Cash flows from investing activities
Dividends received from investment in subsidiaries and associate	15	158,427	86,798	–	–
Dividend received from other investments		1,052,301	694,086	1,052,301	694,086
Government securities – net		12,598,215	(17,900,048)	12,598,215	(17,900,048)
Proceeds from sale and redemption of securities		9,441,009	6,291,710	9,441,009	6,291,710
Purchase of financial investments		(8,056,609)	(16,455,360)	(8,056,609)	(16,456,836)
Purchase of property, equipment, intangibles and investment properties		(2,844,858)	(1,907,923)	(3,106,773)	(2,023,230)
Proceeds from disposal of joint venture		6,500,000	–	6,500,000	–
Proceeds from sale of equipment, investment properties and others		19,017	10,949	19,017	10,949
Net cash flows from/(used in) investing activities		18,867,502	(29,179,788)	18,447,160	(29,383,369)
Cash flows from financing activities
Redemption of debentures		(13,404,530)	(3,804,760)	(13,404,530)	(3,804,760)
Issue of debentures		2,852,281	8,000,000	2,852,281	8,000,000
Borrowing, medium and long-term		16,937,647	3,651,136	16,937,647	3,651,136
Other short-term borrowing – net		46,598,126	(7,020,806)	46,697,979	(7,020,806)
Repayment of borrowing, medium and long-term		(24,015,797)	(13,488,861)	(24,015,797)	(13,488,861)
Dividends paid		(1,850,938)	(1,258,022)	(1,968,110)	(1,370,840)
Net Cash flows from/(used in) financing activities		27,116,789	(13,921,313)	27,099,470	(14,034,131)
Net increase/(decrease) in cash and cash equivalents		35,479,705	(18,882,268)	35,494,899	(18,904,083)
Cash and cash equivalents at the beginning of the year		24,734,298	43,616,566	24,752,967	43,657,050
Cash and cash equivalents at the end of the year		60,214,003	24,734,298	60,247,866	24,752,967
Reconciliation of cash and cash equivalents with items reported in the statement of financial position
Cash and cash equivalents	26	22,771,091	13,504,806	22,804,954	13,523,475
Placements with banks	28	37,442,912	11,229,492	37,442,912	11,229,492
		60,214,003	24,734,298	60,247,866	24,752,967

The Statement of Cash Flows of the Bank includes the results of associate, joint venture, and subsidiary companies only to the extent of the cash flows between Bank and respective companies as required by Sri Lanka Accounting Standards.

The notes to the financial statements from pages 315 to 480 form part of these financial statements.

Reconciliation of profit for the year to operating cashflows before changes in operating assets and liabilities

		BANK		GROUP
For the year ended 31 December	Note	2025 LKR ’000	2024 LKR ’000	2025 LKR ’000	2024 LKR ’000
Profit before income tax		15,581,672	13,498,421	15,953,295	13,819,573
Add/(deduct) items not using (providing) cash:		6,628,711	5,271,930	6,678,434	5,374,774
Depreciation
– Property plant and equipment and investment properties	18	634,850	485,543	673,688	548,363
– Right-of-use assets	18	320,636	346,225	324,860	350,906
Amortisation – Intangible assets	18	517,166	384,525	524,156	390,929
Interest expense on lease liability	11.1.2	129,648	144,282	127,827	146,803
Net gains from trading – Unrealised loss on trading securities	13	186,458	(1,186,575)	186,458	(1,186,575)
Forward exchange fair value changes from banks and other customers	13	(1,459,710)	926,979	(1,459,710)	926,979
Foreign exchange gain/(loss)	15, 13	1,024,191	(802,607)	1,014,914	(788,096)
Impairment charge for loans and other losses	16	4,926,283	4,648,360	4,926,283	4,648,360
Share of profits of associate		–	–	3,100	1,536
Contribution for defined benefit plans	17.1.1	349,189	325,198	356,858	335,569
Deduct items reported under investing activities		(3,325,809)	(5,018,000)	(3,167,382)	(4,931,203)
Dividend income	15, 13	(1,624,929)	(1,129,895)	(1,466,502)	(1,043,098)
Gains on sale of government securities	14	(1,687,725)	(3,868,231)	(1,687,725)	(3,868,231)
Gains on sale of property, plant and equipment	15	(13,155)	(19,874)	(13,155)	(19,874)
Deduct changes in operating assets and liabilities:		(2,625,098)	699,819	(2,806,795)	724,764
Increase in account receivables		(8,861,702)	(4,630,782)	(8,657,401)	(4,330,388)
Increase in account payables		6,236,604	5,330,601	5,850,606	5,055,152
Operating cash flows before changes in operating assets and liabilities		16,259,476	14,452,170	16,657,552	14,987,908

The notes to the financial statements from pages 315 to 480 form part of these financial statements.