Social and Relationship Capital: How it supports DFCC BANK's Strategy

Linkage to Key Strategic Pillars of DFCC BANK's Strategy

SWOT Analysis for Social and Relationship Capital

Focus on the customer

DFCC Bank has been serving customers for over 70 years, building long-standing relationships across individuals, businesses, and communities. This legacy is grounded in trust, transparency, and consistent and efficient service, which continue to guide how the Bank engages with customers and responds to their financial needs.

During 2025, a year of economic stabilisation and digital advancement, the Bank maintained its customer-centric approach by delivering convenience, relevance, and personalised service across all touchpoints, physical, digital and hybrid. The combination of personal service and technology positions DFCC Bank as an indispensable partner in our financial development. As of January 2026, our network of 133 branches nationwide, supported by digital platforms, provides accessible banking services connecting urban centres and rural communities alike.

Integrity, transparency, and trust remain central to the Bank’s service philosophy. These principles guide every customer interaction and shape how solutions are designed, delivered, and improved. The Bank views each customer enquiry, feedback point, and complaint as an opportunity to learn, strengthen relationships, and enhance service quality.

Customer insights are gathered through structured listening mechanisms, customer feedback channels, complaint analysis, and detailed root cause reviews. By addressing areas of friction and responding promptly to customer concerns, DFCC Bank continues to provide a reliable and trusted banking experience, supported by integrity, innovation, and long-term commitment to its customers.

Recognition for customer service excellence and innovation

DFCC Bank’s customer-focused strategy continued to receive national recognition, affirming the success of its inclusive, responsive, and digitally enabled service model. These accolades validate the Bank’s long-term investment in building platforms and products that meet the evolving needs of its diverse customer base, while supporting Sri Lanka’s broader financial inclusion and digital transformation agendas.

At the LankaPay Technovation Awards 2025, DFCC Bank was recognised with four awards, reflecting both operational excellence and leadership in inclusive banking innovation.

Diverse in excellence

DFCC Bank serves a broad customer base that reflects the diversity of Sri Lanka. Our clientele spans every province and socio-economic group, from youth and senior citizens to professionals, rural entrepreneurs, MSMEs, and corporate entities. We take pride in designing products and channels that respond to this spectrum, ensuring that all communities, including those in underserved and remote regions can access reliable and relevant banking, products and services.

This momentum was supported by improvements in digital onboarding processes, the effective integration of branch and digital service models, and targeted engagement initiatives focused on priority segments such as youth, women led enterprises, and MSMEs. These developments took place against a backdrop of economic stabilisation, reinforcing DFCC Bank’s role as a trusted partner for financial security and long term growth.

Customer acquisition and engagement benefited from the Bank’s hybrid delivery model, which combines digital convenience with relationship led branch support. Customers increasingly adopted digital channels for routine transactions and onboarding, while branches continued to play a key role in advisory services and relationship management. This balance enabled DFCC Bank to serve a wider customer base while maintaining service consistency and personal engagement across its 133 branch network.

Several initiatives contributed meaningfully to engagement growth during the year. DFCC Aloka, the Bank’s proposition for women, surpassed 100,000 customers, reflecting sustained demand for solutions tailored to women entrepreneurs and professionals. At the same time, the expansion of Islamic Banking products supported customers seeking ethical and faith-aligned financial services, broadening participation across diverse communities and also highlighting the Bank’s commitment to DEI. Digital adoption also increased across customer segments, supported by enhancements to the DFCC ONE mobile app, DFCC iConnect, and self service infrastructure.

Together, these factors strengthened customer participation, increased interaction frequency, and reinforced long-term relationships. The growth observed in 2025 reflects not only expanded reach, but also the effectiveness of DFCC Bank’s inclusive propositions and service model in building meaningful engagement and sustaining customer confidence over time.

Products and services

Product portfolios were continuously reviewed to ensure alignment with customer needs and risk appetite. New and existing offerings were evaluated for relevance, performance, and compliance with regulatory standards. Where appropriate, modifications were introduced to better serve evolving preferences, particularly in areas such as ethical finance, digital convenience, and accessible credit.

While digital channels gained traction as preferred modes for day-to-day banking, branches remained an essential component of the relationship journey. DFCC Bank’s strategically located branch network continued to provide advisory support, complex transaction handling, and onboarding services. These physical touchpoints complement the Bank’s digital infrastructure, ensuring a seamless, hybrid experience for customers across demographics and geographies.

As part of its relationship-centric approach, DFCC Bank also strengthened service touchpoints by investing in staff training, customer service frameworks, and technology systems that facilitate faster response times and more informed interactions. This holistic model is designed not only to meet customer expectations today but to build durable, trust-based partnerships that grow over time.

Product and service information is published on the Bank’s website (www.dfcc.lk) and in marketing communication material in three languages: Sinhala, Tamil and English.

No known incidents were reported on non-compliance concerning product and service information and labeling for the reporting year.

Protecting customer interests

In an increasingly digitised banking environment, DFCC Bank continued to prioritise the protection of customer data, privacy, and trust. In 2025, the Bank further strengthened its information security protocols and data governance frameworks to ensure that all digital touchpoints adhered to the highest standards of confidentiality, integrity, and availability. Notably, there were no substantiated incidents of data breaches or privacy violations during the year.

DFCC Bank follows a risk-aware, compliance-aligned approach to data stewardship. Systems are in place to monitor access, storage, and processing of customer information in line with regulatory and global privacy standards. Regular audits, vulnerability testing, and simulations were conducted to ensure resilience against emerging threats.

In response to increasing digital activity, the Bank enhanced its fraud detection tools and real-time transaction monitoring. Customer authentication layers were strengthened, and awareness programmes were expanded to help customers safeguard their digital interactions. All new product developments underwent mandatory privacy and security reviews prior to launch.

Employee training and capacity-building efforts remained a key focus to ensure responsible data handling across all service channels. These combined initiatives reinforced DFCC Bank’s position as a secure and trusted partner in every customer interaction.

Transactions to lifelong partnerships

DFCC Bank measures relationship strength through multi-product adoption, cross-sell effectiveness, account diversity, and tenure duration. These indicators demonstrate the depth of customer engagement and reliance on the Bank as their primary financial partner.

In 2025, these metrics showed consistent improvement. Cross-sell rates increased as customers adopted additional products and services. Average product holdings per customer expanded, while relationship tenures lengthened, indicating sustained loyalty and mutual value creation. The performance of flagship propositions such as DFCC Pinnacle contributed significantly to these outcomes.

Service Excellence and Service Culture Transformation

Service Excellence (SE) remained a strategic priority for the Bank in 2025, with continued focus on integrating digital capability with human-centred service delivery. The Bank strengthened its enterprise-wide customer experience framework through structured governance, clearly defined service standards, and disciplined execution, enabling measurable improvements in service quality, customer satisfaction and advocacy.

Strategy and Governance

During the year, the Bank introduced the Customer Compass Code, establishing a bank-wide service blueprint that defined end-to-end customer journeys, expected service behaviours, escalation protocols and internal service standards. This framework aligned business units around a consistent service philosophy while ensuring accountability across customer touchpoints.

SE governance was further strengthened through the CEO-led Service Council, which provided executive oversight and ensured that customer insights influenced operational and strategic decision-making. Monthly Service Council meetings reviewed service performance, Voice of Customer (VOC) insights and operational metrics, enabling timely interventions and continuous improvement.

Voice of Customer and Operational Integration

Customer insights were systematically captured through multiple VOC channels, including Net Promoter Score (NPS), Customer Satisfaction (CSAT), complaints analysis, mystery caller and mystery shopper programmes and frontline feedback. VOC analytics were integrated into operational decision-making, with regular reporting to Regional and Branch Managers to drive corrective action and service enhancements.

An in-house ticket management system and SLA monitoring dashboards enhanced service visibility and accountability across branches. Real-time feedback mechanisms enabled faster service adjustments, strengthening consistency and reliability in service delivery.

The Bank also institutionalised SE approval for all customer communications, including welcome letters, approval messages, system downtime notices and service alerts, ensuring clarity, consistency and customer-centric communication standards.

Service Delivery Enhancements

Service delivery improvements focused on creating seamless, personalised and accessible customer journeys. Digital support channels expanded customer access to assistance, while omnichannel integration ensured consistency across physical and virtual interactions. Personalisation capabilities leveraged customer insights to tailor interactions and advisory services, while enhanced grievance resolution processes contributed to improved service outcomes.

With services accessible through 133 branches and virtual channels, streamlined processes and expanded digital capabilities enabled customers to engage with the Bank more efficiently and conveniently.

Culture and Capability Development

Embedding a customer-centric culture remained central to the Bank’s transformation agenda. Service Excellence Training programmes delivered 47 full-day sessions, reaching 2,343 employees, with focus areas including empathy in customer engagement, Service etiquette and effective problem-solving.

SE immersion programmes were introduced for all new joiners from Day One, reinforcing service expectations at the outset of the employee journey. Continuous learning was supported

through regular role plays, coaching sessions and the Service Excellence Exchange, a weekly engagement platform attended by over 500 employees, facilitating knowledge sharing and reinforcement of service standards.

Innovative internal engagement initiatives, including mascot-led Service Experience learning through weekly comic-based learning modules and the Internal Service Recognition Programme "Above & Beyond", strengthened employee engagement and reinforced desired service behaviours across the organisation.

Outcomes and Impact

The Bank recorded strong improvements in customer experience metrics during the year. Net Promoter Score improved significantly from 32 to 71, exceeding the internal target of 50 and reflecting enhanced customer advocacy. Ticket SLA adherence improved to 90.6% across service channels, exceeding the target of 90%, supported by strengthened monitoring and escalation frameworks. Increased customer compliments and internal recognition further evidenced positive cultural and service outcomes.

Overall, the Bank’s service experience strategy is clearly defined, enterprise-wide and embedded across operations and culture. Strong governance, data-driven decision-making and sustained employee engagement ensured a clear linkage between customer insight, service improvement initiatives, and measurable outcomes, supporting the Bank’s broader transformation agenda.

MARKETING COMMUNICATIONS 2025

Building a Brand with Clarity. Delivering Growth with Discipline.

In 2025, Marketing Communications at DFCC Bank was guided by one central responsibility: to strengthen the Bank’s long-term brand equity while enabling measurable business growth.

In a banking environment defined by competition, margin pressure and rising customer expectations, visibility alone is insufficient. Trust must be earned repeatedly. Relevance must be demonstrated consistently. And every communication must reinforce what the institution stands for.

The year was therefore anchored on five strategic objectives: positioning DFCC Bank as the most customer-centric bank, strengthening employer brand equity, reinforcing leadership in sustainable finance, establishing the Bank as the easiest to work with, and deepening digital engagement.

Building Brand Equity with Purpose

Brand building in 2025 began with coherence.

DFCC Bank’s communications strategy ensured that sustainability, digital advancement, customer experience and governance discipline were not treated as separate themes. They were presented as interdependent strengths within a single institutional narrative.

This clarity was reflected in DFCC Bank securing 27th position in the Brand Finance Sri Lanka rankings for 2025 — a recognition of sustained brand strength rather than episodic visibility.

Brand equity was not amplified through noise. It was strengthened through consistency. The 70th Anniversary year became a defining brand moment. The campaign was developed as a full 360-degree initiative, but its tone was measured. It celebrated seven decades of development impact while signalling forward ambition — digital transformation, customer simplicity and sustainable growth.

Equally important was DFCC Bank’s strengthened presence in mainstream business publications. Advertisements were complemented by executive interviews and structured thought leadership features. Conversations around sustainable finance, MSME development, remittance corridors and digital banking positioned DFCC Bank as an institution contributing to national economic dialogue.

Sustainability as Institutional Identity

Sustainability continued to define DFCC Bank’s brand architecture.

The issuance of Sri Lanka’s first-ever Blue Bond in November 2025, raising LKR 3 Bn, built on the earlier Green Bond and reinforced a structured Sustainable Bond Framework. These milestones were communicated with clarity and governance transparency, strengthening investor confidence and public trust.

The “Safeguard the Sri Lankan Leopard” campaign extended the Bank’s sustainability commitment beyond finance into biodiversity advocacy. Through educational outreach, partnerships and structured storytelling, the campaign deepened awareness while aligning conservation with national development priorities.

Recognition followed substance. DFCC Bank was acknowledged among the Top Five at the Best Corporate Citizen Sustainability Awards and earned “Green Financing Excellence” recognition.

Sustainability, for DFCC Bank, is not thematic. It is structural.

Product Leadership Driving Real Growth

Brand credibility must ultimately translate into product relevance.

Throughout 2025, Marketing Communications worked closely with business units to ensure that product campaigns reflected clarity, speed and accessibility.

Retail initiatives delivered measurable outcomes:

• 17,000+ new DFCC Junior accounts
• LKR 686 Mn portfolio growth under DFCC Junior
• LKR 10.7 Bn net growth in long-term Fixed Deposits during campaign periods
• LKR 45.4 Bn total deposit growth by year-end

Remittance campaigns contributed to USD 545 Mn+ inflows and over one million transactions, strengthening diaspora engagement.

SME and MSME campaigns supported portfolio growth through structured refinance awareness, Wayapara Hamuwa programmes and capacity-building initiatives.

Women’s banking under DFCC Aloka surpassed 100,000 customers, supported by integrated press, digital and community activations.

Corporate Banking campaigns strengthened adoption of DFCC iConnect, onboarding over 1,500 corporate profiles and reinforcing DFCC Bank’s digital corporate capabilities.

Product marketing was not driven by volume alone. It focused on simplifying customer journeys and supporting the Bank’s ambition to become easier to work with.

National Presence Beyond the Headline

With brand architecture firmly in place, the 70th Anniversary was activated across regions.

Customer engagement events were conducted in Kurunegala, Wadduwa, Kandy and Colombo, ensuring the milestone was experienced island-wide. Branch-level engagement reinforced proximity and strengthened community relationships.

Hallmark day campaigns — including Women’s Day, World Ocean Day, World Leopard Day and national festive periods — strengthened emotional connection without diluting brand discipline.

These initiatives ensured that the brand was not confined to advertising platforms. It was present where customers live and work.

Digital as a Precision Growth Engine

Digital engagement expanded meaningfully in 2025, functioning as a growth accelerator within a broader brand framework.

Across platforms, DFCC Bank recorded over 300 million content views. Website sessions exceeded two million, with more than 40 million page views across product categories. Domain authority increased from 41 to 47, supported by over 13 million search impressions.

Digital campaigns generated more than 34,500 measurable leads across asset and liability products. DFCC ONE app campaigns onboarded over 100,000 users, contributing to LKR 223 Bn in transaction value by Q3 2025.

Platform growth was significant:

• META video views exceeded 292 million
• YouTube subscribers grew twentyfold
• TikTok followers increased more than thirtyfold
• LinkedIn community expanded by 23%

Importantly, digital visibility translated into offline impact, driving inbound calls and branch direction requests, reinforcing DFCC Bank’s omnichannel model.

Digital was not treated as a standalone achievement. It operated as a precision instrument supporting acquisition, engagement and measurable return on investment.

Earning Visibility Through Credibility

Public Relations performance reflected sustained brand influence.

Total brand mentions increased by approximately 35% year-on-year to 2,287. DFCC Bank maintained its national media ranking at #03. Press releases increased, interviews expanded significantly, and thought leadership placements strengthened Share of Voice.

Coverage was balanced - approximately 70% digital and 30% print — ensuring both reach and authority.

This visibility was anchored in substance: sustainable finance leadership, social impact initiatives including the 1333 Bikeathon, the Leopard campaign and financial performance momentum.

Governance Behind Every Message

Behind the campaigns sat strengthened governance.

During 2025, DFCC Bank ensured marketing communications adhered to its Marketing Policy, Corporate Communications Policy, Social Media Policy and Incident Response Framework.

Campaign SLAs retained its formalised stand, improving accountability and delivery standards.

Marketing communications achieved trilingual rollout across strategic messaging in English, Sinhala and Tamil — reinforcing inclusivity, greater acceptance of messaging and organisational alignment.

No known incidents were reported on non-compliance concerning marketing communication.

The Annual Report was delivered through coordinated management of over 25 stakeholders, ensuring regulatory compliance and narrative integrity.

The Road Ahead

Marketing Communications at DFCC Bank operates as a structured growth enabler - grounded in measurable KPIs, disciplined governance and strategic brand stewardship.

The next phase will deepen analytics capability, embed lifecycle-based engagement models and strengthen customer journey integration across physical and digital touchpoints.

The objective remains consistent: to always build brand trust, support product leadership and ensure that every communication reinforces DFCC Bank’s identity as a responsible, customer-focused institution shaping sustainable progress in Sri Lanka.

Value creation

Strong customer capital creates value for DFCC Bank across multiple dimensions:

Value Dimension	Impact Delivered
Balance Sheet Strength	Diversified, stable customer deposits fuel lending operations Relationship-based deposits prove more resilient through economic cycles than wholesale funding Funding base stability anchors long-term growth capacity
Operational Efficiency	Digital adoption slashes transaction processing costs Self-service capabilities reduce branch workload intensity Customer retention cuts acquisition spending requirements
Risk Management	Diversified customer base spreads credit and operational risk exposure Relationship depth sharpens creditworthiness assessment accuracy Engagement patterns enable early risk signal detection
Financial Inclusion Impact	Banking access extended to underserved populations National development objectives advanced Customer base expanded while brand reputation strengthens
Revenue Generation	Interest income from lending operations Fee income from transactions and advisory services Cross-sell revenue from multi-product relationships Wealth management service streams

Community engagement reflects our understanding that long-term economic progress is inseparable from social stability and environmental resilience. In 2025, the Bank continued to strengthen its commitment to inclusive development through purposeful Corporate Social Responsibility (CSR) and sustainability initiatives that responded to both structural challenges and immediate community needs.

Csr Project Management Mechanism

DFCC Bank's CSR framework operates on precision and purpose. Every initiative follows a disciplined five-stage lifecycle that transforms community needs into measurable impact: The Bank’s CSR project management mechanism follows a structured process whereby community needs are identified by the Marketing Department, branches and departments, as well as other stakeholders. Project ideas are subsequently evaluated and designed by the Marketing Department, with strategic direction provided through screening by the ESMC and BIRMC. Project implementation is carried out collaboratively by the Marketing Department together with regional offices, branches and departments, while project monitoring and record-keeping remain the responsibility of the Marketing Department.

Key CSR and Sustainability Initiatives

1. Empowerment of Micro, Small and Medium Entrepreneurs (MSMEs)

Entrepreneurship | Financial Inclusion

DFCC Bank continued to serve as a catalyst for entrepreneurship and SME development in 2025, delivering financial support, knowledge-based tools, and capacity-building platforms to strengthen Sri Lanka’s MSME sector. These included the launch of the Business Investment Planner, which empowered business owners to map their growth trajectories with clarity.

The Bank also unlocked USD 12 Mn in funding from Symbiotics, dedicated to encouraging clean energy transitions among MSMEs helping reduce operational costs while supporting Sri Lanka’s green economy agenda.

Through MSME Day 2025 celebrations and rural outreach in the tea value chain, DFCC Bank promoted financial inclusion and skills development, enabling enterprises to thrive in competitive and climate-vulnerable environments.

These strategic interventions supported over 2,000 entrepreneurs, delivering tangible value through resilience-building, financial literacy, and innovation enablement.

2. DFCC Wyapara Hamuwa

Entrepreneurship | Financial Inclusion

During the year under review, DFCC Bank continued to advance its commitment to fostering resilient and sustainable MSMEs through its flagship Wyapara Hamuwa initiative. The programme is designed to strengthen entrepreneurial knowledge, financial literacy, and practical business skills, creating an enabling environment for both aspiring and established entrepreneurs to develop their ventures with greater confidence. In 2025, seven programmes were conducted across Thambuttegama, Kegalle, Avissawella, Kandy, Udawalawe, Theldeniya, and Piliyandala, reaching over 581 participants. These sessions offered hands-on learning and expert advisory support while facilitating valuable peer-to-peer knowledge sharing. Key focus areas included modern cultivation practices, financial planning, and value-addition opportunities that enable farmers and small business owners to enhance productivity and improve market access. Participants also gained exposure to business development services, strategies for financial empowerment, and guidance on addressing operational challenges. Additionally, the programme emphasised innovation, agri-enterprise development, and the creation of sustainable business models to support long-term growth. The Wyapara Hamuwa initiative enables DFCC Bank to deepen its support for community-driven economic growth and cultivate innovation and resilience among MSMEs.

DFCC Wyapara Hamuwa Empowers Handicraft Entrepreneurs through “Tusker Point” Initiative

3. DFCC Thirasara Athwela Programme

Entrepreneurship | Financial Inclusion

In 2025, DFCC Bank continued to advance sustainable entrepreneurship through its Thirasara Athwela initiative, empowering university students and early-stage entrepreneurs with the knowledge and skills needed to build responsible and resilient businesses. The programme commenced at the University of Colombo, bringing together around 60 participants from the Diploma in Entrepreneurship and Business Management programme. Featuring sessions led by DFCC experts and an external resource person, the workshop equipped attendees with practical tools for building sustainable ventures. Positive feedback and requests for continued collaboration underscored the programme’s growing impact.

Expanding its engagement, the Bank also conducted a sustainable business consultancy and evaluation session for five undergraduate groups from the University of Colombo’s Faculty of Management and Finance. This initiative supported the refinement of early-stage business concepts while encouraging environmentally responsible innovation. Additionally, the Bank contributed to an exhibition and award ceremony featuring 60 student-led stalls, evaluating the environmental viability of the nature-based products presented.

Further strengthening the initiative’s reach, an Entrepreneurship Skills Development Workshop was held for 34 participants from the University of Kelaniya. Students gained practical exposure to business development techniques, resulting in several promising start-up concepts.

Through Thirasara Athwela, DFCC Bank continues to play a pivotal role in shaping Sri Lanka’s next generation of sustainable entrepreneurs.

Cross section of sustainable and innovative nature-based products developed by the participants

4. Safeguard the Sri Lankan Leopard – Protecting Biodiversity and Natural Capital

Environment | Biodiversity and Ecosystems

In 2025, DFCC Bank deepened its environmental stewardship through its Safeguard the Sri Lankan Leopard initiative, implemented in partnership with the Wilderness and Wildlife Conservation Trust (WWCT).

The Sri Lankan leopard is an apex predator and a keystone species whose survival underpins ecosystem stability. Habitat fragmentation, human–wildlife conflict and poaching continue to threaten its population. By supporting conservation research, community education and conflict mitigation strategies, DFCC Bank contributes to protecting biodiversity while promoting coexistence between communities and wildlife.

The initiative includes nationwide awareness campaigns, educational materials in multiple languages and collaboration with conservation experts to promote science-based interventions. Protecting the leopard extends beyond species conservation; it safeguards forest ecosystems, water resources and ecological balance that sustain rural livelihoods and long-term environmental resilience.

Through this partnership, DFCC Bank reinforces its commitment to integrating biodiversity considerations into its sustainability agenda and to supporting nature-positive outcomes aligned with national conservation priorities.

Awareness campaign on Leopard conservation initiative

5. Samata English Programme

Education

In 2025, DFCC Bank continued its commitment to youth employability through the Samata English Programme, conducted in partnership with Gateway Education Services (Pvt) Ltd. Targeted at youth aged 18–25 who have completed the G.C.E. (A/L) examination, the programme drew strong interest, with nearly 1,000 applicants screened via social media. Of these, 24 students were selected for the four-month course held from February to May 2025 at the Gateway Language Centre in Matara. The programme focused on strengthening English language proficiency alongside essential soft skills for the job market. With a minimum pass mark of 40%, 12 students scored above 60% and were offered internship opportunities at DFCC Bank. Certificates were awarded to all students who successfully completed the course. Through this initiative, DFCC Bank continues to support youth development and enhance employability across Sri Lanka.

6. Scholarship Programme to Assist Victims of Easter Attacks

Education

Through this scholarship initiative, DFCC Bank provides ongoing financial support to children who were affected by the Easter Sunday attacks, helping them continue their studies through secondary school. During the year the Bank assisted 09 students in Negombo. The Bank remains firmly dedicated to assisting these families, ensuring that the educational aspirations of the next generation remain intact.

7. DFCC – CARITAS SEDEC Scholarship Programme

Education

This nationwide initiative reflects DFCC Bank’s strong commitment to promoting education and social equity by supporting students from economically disadvantaged and marginalised communities. Launched in 2020 as a five-year programme and concluded in 2025, the initiative provided monthly financial assistance to students pursuing primary, secondary, tertiary, and vocational studies. The support covered essential expenses such as transport, learning materials, tuition, and meals, ensuring that financial hardship did not interrupt their educational pathways—particularly during periods of national economic instability. Implemented through Caritas Sri Lanka’s extensive diocesan and parish network, the programme ensured accurate beneficiary selection and effective community-level monitoring. Starting with 85 students in 2020, it progressively expanded to support 197 students across 17 districts by 2025. A significant proportion of beneficiaries comprised female students, children from single-parent or women-headed households, and youth from rural, estate, fisheries, and conflict-affected communities—demonstrating strong gender and social inclusion.

8. Donation of Surplus Goods to Support Schools and Communities

In January 2025, DFCC Bank extended its commitment to community wellbeing by donating surplus gift items and used cupboards to several educational and social service institutions. Beneficiaries included the School for the Deaf, Ratmalana, the School for the Blind, Ratmalana, Sri Chandrasekera Special School, Moratuwa, Wesley Nursery School, Matara, and the Athuraliya Divisional Secretary’s Office, which distributed items to flood-affected and low-income families. Cupboards, rice cookers, gas cookers, electric kettles, and water filters were provided to support daily operational needs. Additionally, Bollegala Maha Vidyalaya received two plastic collection bins and essential kitchen equipment, to enhance its home science room. The Bank also supported education by donating school stationery to 123 students at Pumalathan and Madhu Primary Schools in Mannar District. The recipient institutions expressed their appreciation for DFCC Bank’s meaningful contribution, reflecting the Bank’s ongoing commitment to supporting underserved communities and strengthening local educational environments.

9. Mental Health and Community Well-being

Exercise | Emergency Relief | Social Well-being

In 2025, DFCC Bank strengthened a CSR platform that the Bank intends to build over the long term – cycling with purpose. Through Ride for Life, colleagues, customers and communities came together around a clear cause: suicide prevention and mental well-being, amplified through Sri Lanka’s 1,333 mental health crisis support line. What began in pockets in earlier years and was formalised last year now stands as a growing, repeatable movement that branches can own and scale.

Ride for Life is designed as more than a single-day event. It is a sustained engagement model that combines visibility, conversation and community action - from branch-led cycling activations and internal communications to public-facing awareness content, partner engagement and fundraising. Across these touchpoints, the Bank’s intent is consistent: to make help-seeking feel normal, to encourage early intervention, and to direct attention to trusted support channels.

1333 Bikeathon powered by DFCC Bank.

10. Cyclone Ditwah Emergency Response and Flood Relief Programme

Emergency relief | Climate resilience

During 2025, Sri Lanka was impacted by severe flooding and cyclonic conditions. Particularly in November and December, disrupting multiple districts and displacing thousands of individuals and families. In response, DFCC Bank swiftly activated its Flood Relief and Emergency Response Programme, operating under the guidance of the Central Bank of Sri Lanka (CBSL) Circular No. 04 of 2025. This initiative was implemented through DFCC Bank’s extensive branch network, coordinated regional teams, and partnerships with local authorities, ensuring timely, targeted assistance to those most affected.

The Bank's relief efforts encompassed both material and financial aid. Immediate support included the distribution of essential relief items such as dry rations, clean drinking water, basic household necessities, and medical essentials. On the financial front, DFCC Bank provided a suite of relief measures including:

• Loan moratoriums for eligible borrowers
• Fee waivers across affected services
• Concessional restructuring of impacted credit lines
• Re-launch of the "Vardhana Sahanaya" loan scheme offering personal financing to rebuild homes and livelihoods

Beyond immediate recovery, this initiative reflected DFCC Bank’s broader commitment to climate resilience and sustainable community preparedness, acknowledging that increasingly frequent extreme weather events demand proactive, long-term support frameworks to protect lives and livelihoods.

Value Created

Value to Communities	Value to DFCC Bank	Value to the Nation
Emergency support during crisis events Strengthened livelihood capacity and resilience Improved access to financial services and resources Enhanced awareness of health and environmental issues	Reinforced trust and institutional credibility Strengthened stakeholder relationships across customer segments Alignment with sustainability-linked financing opportunities Enhanced brand positioning as a responsible corporate entity	Timely disaster response supporting affected populations Contribution to climate resilience and adaptation capacity Progress towards inclusive economic development objectives Support for national environmental conservation priorities

Our commitment

DFCC Bank's community engagement in 2025 reflected the operational reality of managing both long-term development objectives and immediate crisis response requirements. The cyclone and flood relief efforts demonstrated institutional capacity for rapid, coordinated action, while ongoing programmes in entrepreneurship, mental health, and conservation reinforced sustained commitment to community resilience.

Looking forward, the Bank will continue strengthening its community engagement infrastructure, expanding partnerships with public and private sector stakeholders, and refining impact measurement frameworks to ensure CSR initiatives deliver measurable, sustainable outcomes aligned with national development priorities.

Emergency relief support.

Regulatory and Government relations

As a regulated financial institution, our relationships with the Central Bank of Sri Lanka (CBSL), Securities and Exchange Commission (SEC), government institutions, and industry associations are foundational to operational legitimacy and policy influence.

2025 Regulatory Engagement

Key Concern	Our Response
Regulatory Implementation	Full, timely compliance with all CBSL directions and CSE Listing Rules
Statutory Reporting	Accurate, timely reporting and tax payments maintaining regulatory trust
Economic Alignment	Provided customised financial solutions to sectors aligned with national priorities
Financial Sector Stability	Maintained strong liquidity and capital buffers supporting systemic resilience
SME/Micro Development	Expanded SME and microfinance lending supporting inclusive growth
Regional Collaboration	Active ADFIAP participation; hosting 2026 conference; working with GCF and Government on project funding

Industry association memberships

DFCC Bank actively participates in leading associations shaping policy dialogue, regulatory development, knowledge sharing, and best practices:

Key Memberships:

• American Chamber of Commerce in Sri Lanka
• Association of Development Financing Institutions in Asia and the Pacific (ADFIAP)
• Federation of Information Technology (Guarantee) Limited
• Fintech Forum (Guarantee) Limited
• Galle District Chamber of Commerce & Industry
• Global Compact Network Ceylon (Guarantee) Ltd (The United Nations Global Compact)
• International Chamber of Commerce Sri Lanka
• Partnership in Carbon Accounting Financials (PCAF)
• Sri Lanka Business and Biodiversity Platform (Biodiversity Sri Lanka)
• Sri Lanka Forex Association
• The Association of Banking Sector Risk Professionals of Sri Lanka
• The Ceylon Chamber of Commerce
• The Council for Business with Britain
• The Employers Federation of Ceylon
• The European Chamber of Commerce of Sri Lanka
• The Financial Ombudsman Sri Lanka (Guarantee) Limited
• The National Chamber of Commerce of Sri Lanka
• The Sri Lanka Banks` Association (Guarantee) Limited

In an interconnected world demanding collaborative solutions, DFCC Bank's partnerships spanning development institutions, correspondent banks, suppliers, and DFCC Group entities create powerful multiplier effects enabling responsible finance, risk mitigation, innovation acceleration, and national development advancement.

International development partnerships

In 2025, we sustained and deepened relationships with impact funds and bilateral partnerships securing renewed and new funding lines supporting renewable energy, and sustainability-linked initiatives.

During the year, we secured a USD 12 Mn facility arranged by Symbiotics (a leading market access platform for impact investing, dedicated to private markets in emerging and frontier economies), where the financing was through bonds issued specifically for DFCC Bank and listed on the Securities Official List of the Luxembourg Stock Exchange.

The funding, split between a USD 6.25 Mn tranche and an equivalent of USD 5.75 Mn in Sri Lankan Rupees, was to support renewable energy projects. This funding would be utilised for financing solar energy investments by households, SMEs and corporates in support of the national decarbonaisation drive.

Key Development Finance Partners:

• Asian Development Bank (ADB)
• European Investment Bank (EIB)
• Kreditanstalt für Wiederaufbau (KfW) – Germany
• Deutsche Investitions – und Entwicklungsgesellschaft (DEG)
• Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) – Netherlands
• Proparco (Agence Française de Développement) – France
• BlueOrchard Microfinance Fund – Luxembourg
• U.S. International Development Finance Corporation (DFC)
• The World Bank
• Green Climate Fund (GCF)
• Symbiotics Investments SA – Switzerland
• RAKBANK (National Bank of Ras Al Khaimah) – UAE
• Commerzbank Aktiengesellschaft

These alliances diversified funding, amplified sustainable finance flows, and strengthened capacity for climate adaptation, inclusive growth, and environmental stewardship financing.

Correspondent banking network

DFCC Bank maintained relationships with approximately 200 correspondent banks worldwide ensuring uninterrupted access to key markets and currencies despite geopolitical complexities.

Key Correspondent Partners:

• Standard Chartered Bank (South Asia, Europe, UK, USA, Singapore, Japan)
• HSBC Bank (USA)
• JPMorgan Chase Bank (USA and Australia)
• Deutsche Bank AG (Germany and USA)
• Mashreq Bank (USA, India and UAE)
• Kookmin Bank (S. Korea)
• Commerzbank AG (Germany)
• Oversea-Chinese Banking Corp Ltd, (Singapore)
• Sumitomo Mitsui Banking Corporation, Japan
• UniCredit Bank GmbH (Germany)
• Bank of China Limited
• Zürcher Kantonalbank (Switzerland)
• HDFC Bank Ltd (India)
• Bank of Ceylon (UK, Chennai and Maldives)
• Axis Bank (India)

SUPPLIERs and seRvice providers

DFCC Bank exemplifies responsible and visionary corporate citizenship through its approach to supplier engagement. Our supplier partnerships are built on integrity, transparency, and sustainability. Our Procurement Policy serves not only as a compliance framework but also as a strategic tool, ensuring that all suppliers embody the Bank’s values and contribute to long-term, sustainable growth.

Our Procurement Policy Framework

Supplier Selection Criteria and Processes

Our procurement policy emphasises efficient sourcing, cost minimisation, quality assurance, and inventory optimisation, while upholding strong governance standards and the six guiding principles. Suppliers are assessed not only on price and delivery efficiency but also on quality, timeliness, adherence to ethical labour practices (including the prohibition of child labour), environmental stewardship, financial stability, after-sales support and continuity planning.

We share our feedback with our suppliers regularly as a means of supporting their continuous improvement. Suppliers also have direct access to grievance channels, reflecting our open-door policy for employees, contractors, and vendors alike. Large-scale procurements include structured project management processes such as steering committees and change control boards where progress review meetings are held to monitor progress and address concerns constructively.

Suppliers are categorised into large, medium, and small-scale partners to ensure inclusivity across the value chain. Preference is given to local suppliers in line with our national development agenda, and an ESG checklist has been incorporated into supplier assessments to ensure complete alignment with ESG best practices.

Upskilling and Knowledge Sharing

Recognising that a strong supply chain depends on capable partners, DFCC Bank actively supports the development and strengthening of its suppliers. SME Capacity-Building Workshops and Entrepreneur Development Programmes provide training in finance, digital adoption, and sustainable practices. MSMEs and self-employed contractors engaged in DFCC Bank procurement benefit from mentorship by external consultants and Bank specialists, gaining practical knowledge and experience. The Bank extends a suite of support mechanisms designed to enable supplier growth and resilience. Tailored financial solutions including working capital loans and trade finance are available to strengthen the resilience of our supply chain continuity.

Support Mechanisms and Resources

The Bank also prioritises the well-being of individuals from underprivileged communities employed through contractors and service providers. Proactive measures include medical screenings and defensive driving programmes for contracted drivers, on-the-job training for outsourced security personnel, free meals for security and janitorial staff, supplementary wage contributions above the national minimum levels, and the provision of safe, comfortable accommodation and changing facilities. These initiatives reflect DFCC Bank’s commitment to fostering a humane, inclusive, and non-discriminatory working environment across its extended supply chain.

ESG Evaluation and Supplier Recognition

We have embedded ESG principles into supplier evaluations, with periodic performance reviews, compliance scoring, and oversight. By embedding ESG principles, prioritising local sourcing, investing in supplier capacity building, and recognising excellence, the Bank has cultivated a supplier ecosystem that is resilient, innovative, and nationally impactful.

Additionally, DFCC Bank has implemented stringent waste management practices to promote circularity. Waste generated from operations is systematically collected, segregated, and sent for repurposing and recycling wherever possible, with only residual waste disposed of responsibly.

These initiatives underscore DFCC Bank’s leadership in embedding sustainability not only within its own operations but also across its extended partner ecosystem.

Key Elements DFCC Bank's Sustainable Procurement Guidelines

Collaborations

Collaboration with industry partners, regulators, development institutions, and community organisations remains central to DFCC Bank’s sustainability approach. These partnerships enhance reach, effectiveness, and shared learning, particularly in areas such as disaster response, climate resilience, and inclusive growth. Notable 2025 collaborations included work with the Global Green Growth Institute (GGGI) for the Blue Bond and Symbiotics for SME renewable funding.