Looking at a
remarkable
year

Looking at a year in which we really pushed our boundaries will only be made possible to our valued stakeholders through a report of clarity, conciseness and transparency.

This is our 5th Integrated Annual Report and through it, we hope to provide a holistic and balanced view of our financial, social and environmental performance. As our primary publication to shareholders, content included in this Report has been prioritized and structured in a way that enables stakeholders to carry out an informed assessment of our ability to create sustainable value in the short, medium and long-term.

Scope and Boundary

The Report covers the operations of National Development Bank PLC (“Bank”) and its group companies (collectively referred to as “Group”) for the period from 1 January to 31 December 2017. The financial statements on pages 290 to 408 and the discussion of financial aspects present a consolidated view of the Bank and its group companies. However, given that the Bank accounts for the majority of the Group’s revenue, profits and employees, the social and environmental information presented in the narrative reflect only those of the Bank unless otherwise referred to as Group.

We adopt an annual reporting cycle for financial and sustainability reporting. The most recent previous Annual Report covering the period from 1 January to 31 December 2016 and dated 21 February 2017 is available on our website www.ndbbank.com. There were no significant changes in the size, structure, ownership or supply chain of the organization compared to 2016. There are also no restatements of information provided in previous reports.

Principles and Assurance

Our disclosures and reporting processes follow all applicable laws, regulations, standards and several voluntary reporting frameworks (listed below). We have also obtained external assurance on both the financial and non-financial information included in the Report.

REPORTING ENHANCEMENTS

We seek to continuously enhance the quality and readability of our Report, and this year features several key improvements. In determining material content to be included in this Report, we have gone beyond what is prescribed by GRI to include topics and matters that are relevant to our economic and industry landscape, strategic ambitions and value creation process. We have also increased the connectivity of information by using navigation icons across the Report. This has enabled us to clearly demonstrate how our strategy relates to the six capital inputs and addresses material concerns of stakeholders. This year’s Report also placed increased emphasis on the future orientation of the Bank and Group’s strategic agenda and its performance outlook.

	Narrative Report	Annual Financial Statements	Corporate Governance	Sustainability Reporting
Standards and Principles	• Integrated Reporting Framework of the International Integrated Reporting Council (IIRC) • “A Preparer’s Guide to Integrated Corporate Reporting”-issued by the Institute of Chartered Accountants of Sri Lanka - 2017	• Sri Lanka Accounting Standards ( SLFRS / LKAS) issued by the Institute of Chartered Accountants of Sri Lanka • Companies Act No. 7 of 2007 • Inland Revenue Act No 10 of 2006 and amendments thereto, and Inland Revenue Act. No. 24 of 2017 • Banking Act No. 1 of 2016	• Banking Act Direction No. 11 of 2007 • Listing Requirements of the Colombo Stock Exchange • Code of Best Practice on Corporate Governance issued by the ICASL and SEC	• GRI Standards (Core) • GRI Financial Services Sector Disclosures
Assurance		• Messrs. Ernst and Young, Chartered Accountants	• Assurance on the Director’s Statement of Internal Controls provided by Messrs. Ernst and Young, Chartered Accountants	• Messrs. Ernst and Young, Chartered Accountants

Narrative Report

Annual Financial Statements

Corporate Governance

Sustainability Reporting

Standards and Principles

• Integrated Reporting Framework of the International Integrated Reporting Council (IIRC)

• “A Preparer’s Guide to Integrated Corporate Reporting”-issued by the Institute of Chartered Accountants of Sri Lanka
- 2017

• Sri Lanka Accounting Standards ( SLFRS / LKAS) issued by the Institute of Chartered Accountants of Sri Lanka

• Companies Act No. 7 of 2007

• Inland Revenue Act No 10 of 2006 and amendments thereto, and Inland Revenue Act. No. 24 of 2017

• Banking Act No. 1 of 2016

• Banking Act Direction No. 11 of 2007

• Listing Requirements of the Colombo Stock Exchange

• Code of Best Practice on Corporate Governance issued by the ICASL and SEC

• GRI Standards (Core)

• GRI Financial Services Sector Disclosures

Assurance

• Messrs. Ernst and Young, Chartered Accountants

• Assurance on the Director’s Statement of Internal Controls provided by Messrs. Ernst and Young, Chartered Accountants

• Messrs. Ernst and Young, Chartered Accountants

NAVIGATION ICONS

Financial Capital

Human Capital

Manufactured Capital

Intellectual Capital

Social & Relationship Capital

Natural Capital

FEEDBACK

We understand that Integrated Reporting is a journey of continuous improvement and welcome your comments and suggestions on our Report. Please direct your feedback to,

Lalith T Fernando
Group Chief Financial Officer
or
Ms. Suvendrini Muthukumarana
Assistant Vice President - Finance and
Planning of National Development Bank PLC

Looking at a remarkableyear