Governance and Risk Management

The Bank’s affairs and resources are managed with the utmost intellectual honesty and diligence. As we set about achieving our strategic objectives, we ensure that due care is always given to corporate ethics and social responsibility.

The Board of Directors, who collectively direct the affairs of the Bank, are completely aware of and knowledgeable about their role in ensuring the Bank’s prosperity. Having pledged to take full responsibility for its actions, the Board ensures that executive authority is passed on only to
those with untarnished reputations. The Board also oversees the implementation of reporting systems and processes that are adequate and effective in providing the necessary overall control.

Commercial Bank has a sound reputation for prudent governance – a track record that stretches back close to half a century. There are seven characteristics that make our governance system unique. They are:

Decision making that is participatory
Accountability that applies to all stakeholders
Dealings that are transparent
Attention to stakeholder needs that is responsive
Utilisation of resources that is efficient and effective
Appreciation for diversity and fairness
Compliance with the rule of law in the spirit of good governance

The Bank confirms that, at the date of this publication, it has fully complied with all Corporate Governance Rules set out in the Banking Act Direction No. 11 of 2007, other compliance and disclosure requirements prescribed by the Central Bank of Sri Lanka in terms of the provisions of the Banking Act No. 30 of 1988, and the Code of Best Practice on Corporate Governance issued by The ICASL Sri Lanka (please refer details in Annex 2 and Annex 3 on pages 349 to 371).

Being fully compliant with all requirements set out in the Banking Act, the Colombo Stock Exchange has exempted the Bank from disclosing compliance with the Directions stipulated in Section 7.10 of the Continuing Listing Requirements on Corporate Governance.

Discharging their responsibility for overseeing the risk management function of the Bank, the Board of Directors has instituted a solid risk management framework, the robustness of which is reflected in the operating results reported for the year and the above industry average asset quality.

The Bank periodically reviews the principles of its governance system. This exercise is undertaken to assess the system’s effectiveness so that refinements can be made as needed to suit the ever-evolving needs of the Bank and the regulatory environment within which it operates.