COMPOSITION OF THE BIRMC

The Board Integrated Risk Management Committee (BIRMC), appointed by the Board of Directors, presently consists of three Non-Executive Directors.

The committee was reconstituted with effect from 1 February 2026, with I A Wickramasinghe (Independent Non-Executive Director) joining as a member. N Vasantha Kumar, an Independent Non-Executive Director, serves as the Chairman of the committee, with P A Jayatunga, a Non-Executive Director, as the other member.

W R H Fernando, an Independent Non-Executive Director, functioned as a member until 17 December 2025. Thereafter, N K G K Nemmawatta, an Independent Non-Executive Director, served as a member from 18 December 2025 to 31 January 2026.

The Chief Risk Officer (CRO) functions as the Secretary to the Committee. The Chief Executive Officer (CEO), Deputy Chief Executive Officer (DCEO), and Key Management Personnel overseeing broad risk categories – including the Chief Compliance Officer (CCO), Chief Information Officer (CIO), and Head of Treasury attend meetings by invitation.

The Committee’s composition meets the requirements of the Rule 6.5(b) of the Banking Act Direction No. 5 of 2024 on Corporate Governance, which is effective from 1 January 2025.

Membership as of 31 December 2025:

• N Vasantha Kumar – Chairman/Independent Non-Executive Director
• P A Jayatunga – Non-Independent Non-Executive Director
• I A Wickramasinghe – Independent Non-Executive Director

CHARTER AND RESPONSIBILITIES

The BIRMC Charter defines the authority, structure, responsibilities, and tasks of the Committee. Its primary responsibilities include:

A. Reviewing and ensuring the integrity and adequacy of the risk management function of the Bank.

B. Promoting awareness of a risk based culture and the achievement of a balance between risk minimisation and reward for risks accepted.

C. Reviewing adequacy and allocation of the Bank’s capital.

D. Monitoring risk exposures, ensuring that risk profiles of the Bank are within acceptable parameters and to make recommendations to the Board of Directors on any action required.

E. Assessing adequacy and effectiveness of the Management Committees through a set of defined tools.

F. Reviewing and ensuring availability of comprehensive, updated risk policies and guidelines covering overall operations of the Bank.

G. Functioning as the designated oversight body for Sustainability-Related Risks and Opportunities (SRROs) and ensuring appropriate integration of SRROs into the Bank’s overall risk management framework, strategy, and major decisions.

H. Ensuring compliance with relevant laws, regulations, and standards, including adherence to CBSL Corporate Governance Directions.

The BIRMC discharges its responsibilities as detailed in the Risk Management section of this Annual Report.

BIRMC MEETINGS

The BIRMC is required to meet every two months. During 2025, the Committee held six meetings, with member attendance detailed on page 215. The Committee continued to review policy frameworks, risk management strategies, the Bank’s risk capital position and key risk indicators, ensuring that the risk exposures of both the Bank and the Group were effectively managed. Throughout the financial year, the Committee successfully undertook the following key initiatives:

1. Reviewing and approving the Internal Capital Adequacy Assessment Process (ICAAP) and monitoring capital requirements aligned with future growth targets.
2. Assessing compliance risk indicators, identifying focus areas based on potential impact and likelihood.
3. Enhancing risk controls and monitoring tools, including the introduction of advisory trigger limits where necessary.
4. Reviewing and updating all risk policies and practices to strengthen the Bank’s risk management framework.
5. Conducting the annual review of Management Committees’ effectiveness, with results shared for necessary improvements.
6. Implementing CBSL recommendations arising from regulatory examinations of the integrated risk management function.
7. Strengthening information security oversight, including review of security measures and monitoring implementation of initiatives.
8. Evaluating business continuity and disaster recovery plans to ensure preparedness for operational, technological, or external disruptions.
9. Establishing financial materiality thresholds for sustainability-related risks and opportunities and reviewing sustainability-related financial disclosure requirements.
10. Reviewing sustainability performance in terms of sustainability financing targets and the progress of sustainability-related activities.
11. Focusing on macroeconomic risks and market volatility, assessing potential impacts on the Bank’s portfolio.
12. Reviewing risk mitigation measures and stress testing results, recommending enhancements to strengthen resilience against market fluctuations.

REPORTING

Proceedings of BIRMC meetings are reported to the Board through submission of the meeting minutes. The recommendations made by the Committee during 2025 were approved by the Board.

N Vasantha Kumar
ChairmanBoard Integrated Risk Management Committee

24 February 2026