Engaging with stakeholders involves recognising the unique expectations of various stakeholder groups, understanding their differences, devising appropriate engagement strategies, prioritising their needs and actively seeking and responding to their feedback. This approach aims to foster enduring and mutually beneficial relationships, ensuring the Bank remains aligned with its core values and ethical principles. By consistently delivering on its commitments, the Bank aims to establish itself as a reliable and influential leader in financial services, leaving a lasting impression on stakeholders.

The Bank interacts with a vast array of internal and external stakeholders, crucial for value creation and sustainability. While legal obligations highlight certain groups like employees and investors, the pervasive influence of social media has expanded the stakeholder landscape to virtually anyone interacting with the Bank. This proliferation complicates stakeholder selection and prioritisation, challenging communication standardisation across networks and media. Stakeholders’ preferences and expectations further complicate engagement strategies, intensified by recent unprecedented conditions. Yet, this turbulence emphasises the pressing need to deeply engage, understanding concerns and aspirations to engage appropriately.

In this swiftly evolving banking land scape, the shift from physical to digital engagement is evident. Particularly, customers prefer digital interactions, favouring the comfort and convenience of remote engagement. The digital wave is not a passing trend – it is here to stay.

Acknowledging these dynamics, the Bank has identified key stakeholders given in the Figure 04 to be its key stakeholders considering their influence and their interest in our business. We have presented them in the order of their ability to affect our operations from high to low.

The Figure that follows showcases our stakeholder engagement process, embodying our commitment to prioritise stakeholders’ interests—an ethos reflected in our tagline, “Our interest is in you”. This dedication drives ongoing, transparent engagement across diverse platforms, fostering robust collaboration. By integrating their valid concerns and expectations into our strategy, we not only deliver value to stakeholders but also derive mutual benefits, fueling sustainable value creation.

Table 03 showcases various formal mechanisms utilised to meet stakeholder expectations, with engagement responsibilities spread across the Bank’s touchpoints. The pandemic shifted the dynamics, altering the depth, frequency and mode of engagement, prompting a greater reliance on digital platforms.

Our stakeholder engagement process serves as an agile tool, facilitating adaptation to evolving challenges, bolstering our business model, fostering innovation and gathering vital insights crucial for strategic planning.

Mode and frequency of stakeholder engagement

Investors

Engagement mechanism
and frequency

Engagement mechanism	Frequency
Annual Reports and AGMs	Annually
Extraordinary General Meetings	As required
Interim financial statements	Quarterly
Investor presentations	As required
Press conferences and releases	As required
Announcements to CSE	As required
One-to-one discussions	As required
Investors’ section in the Corporate website	Continuous
Feedback surveys	As required

Key topics discussed and
concerns raised

• Financial performance and dividend policy
• Digital Roadmap of the Bank
• The outlook of the interest rates and the exchange rates
• Business expansion plans and key strategies
• Risk management and governance framework in place
• Rising taxes in the financial industry
• Resilience to adverse economic conditions
• Rising Non-Performing Credit facilities (NPCF) and impairment charges
• An overview of the economy and the outlook of the Banking sector
• Economic slowdown due to lack of policy consistency
• Possible haircut on FCY denominated investments and impairment charges
• Sharp drop in FCY reserve and successive sovereign downgrades
• Sustainability and Climate related developments

Bank's response to stakeholders

• Robust Risk Management and Governance Framework
• Optimum level of liquidity and prudent capital management
• Digitalisation of customer journey
• Use of data analytics for decision making
• Cost optimisation strategies
• Prudent impairment provisioning
• Financial planning based on expert advice

Customers

Engagement mechanism
and frequency

Engagement mechanism	Frequency
Customer visits	As required
Complaints received	As required
Complaints resolution officer	As required
ComBank BIZ Club	Continuous
Branch network, call centre and digital channels	Continuous
Social media platforms	Continuous
Corporate website	Continuous
Customer workshops	As required
Relationship managers	Continuous

Key topics discussed and
concerns raised

• Swift service
• Customer security and privacy
• Service quality
• Affordability of services and convenience
• Grievance handling mechanism
• Financial education and literacy
• Financial support for revival of business
• Access to financial services
• Enrolment to digital platforms
• Operationalising of CBSL directives
• Financial support for women entrepreneurs

Bank's response to stakeholders

• Improvements to service delivery channels to support customers
• Setting up Digital Experience Zones to help customers gradually migrate to digital channels
• Offering concessions to individuals and businesses by restructuring and rescheduling loan facilities to support during challenging times
• Non-financial support to SMEs and Micro Businesses
• Assisted SME customers with financial literacy programmes
• Offering a range of products and services to suit customer requirements
• Setting up of a Customer Experience Unit to further enhance the service quality

Employees

Engagement mechanism
and frequency

Engagement mechanism	Frequency
Managers’ Conference	Annually
Town hall meetings	Annually
Regional review meetings	Quarterly
Regional Managers’ meetings	Monthly
Branch marketing meetings	Monthly
Training programmes	As required
Intranet	Continuous
Special staff events	Annually
Trade union discussions	As required
Employee satisfaction survey	As required

Key topics discussed and
concerns raised

• Performance evaluation and rewards
• Career advancement opportunities
• Training and development
• Work-life balance
• Retirement benefit plans
• Diversity and inclusion
• Workplace safety
• Stability of the Bank

Bank's response to stakeholders

• A group of identified potential branch Managers were enrolled to a Leadership Development Program conducted by the Postgraduate Institute of Management (PIM)
• Special Virtual training programs were conducted targeting Branch Managers, Assistant Branch Managers and Executive Officers covering technical and soft skills
• Migration of employee engagement and development programmes to digital platforms
• The Bank remains committed to the principles of equal opportunity irrespective of gender, age, race, disability or religion in all its HR management processes
• The Collective Agreement with the Bank’s branch of the Ceylon Bank Employees’ Union (CBEU) was renewed for a further 3-year period

Society and environment

Engagement mechanism
and frequency

Engagement mechanism	Frequency
Multiple delivery channels	Continuous
Press releases, conferences and media briefings	As required
Informal briefings and communications	As required
Public events	As required
Corporate website	Continuous

Key topics discussed and
concerns raised

• Responsible financing
• Community engagement
• Financial inclusion
• Microfinance and SME
• Ethics and business conduct
• Environmental stewardship
• Employment opportunities

Bank's response to stakeholders

• Financial literacy programmes for prospective SMEs and Micros
• Donation of fully-equipped IT laboratories to schools and other institutions
• Donation of critical medical equipment to government hospitals
• Reforestation of 100 hectares in Kandegama, Polonnaruwa
• Mangrove plants were planted to protect lagoons
• Setup of STEM classrooms and maths labs in rural schools
• Plantation of 12,000 trees under “Trees for tomorrow” programme

Business partners

Engagement mechanism
and frequency

Engagement mechanism	Frequency
Supplier relationship management	As required
On-site visits and meetings	As required

Key topics discussed and
concerns raised

• Contractual performance
• Continued business opportunities
• Maintaining healthy relationships
• Timely settlement of dues
• Collaboration for new technological advances in the financial sector

Bank's response to stakeholders

• Clear communication of Bank’s policies and procedures
• Honouring payments in a timely manner upon delivery
• Continuous engagement
• Supplier education to improve their business processes

Government institutions and regulators

Engagement mechanism
and frequency

Engagement mechanism	Frequency
On site and off site examinations	As required
Directives and circulars	Continuous
Meetings and consultations	As required
Press releases	As required
Periodic returns	As required
Submissions to policymakers	As required
Responses to consultation papers on Directions and other regulations	As required
Attending training programs	As required

Key topics discussed and
concerns raised

• Compliance with directives and codes
• Provision of financial support to mandatory industries
• Stability of the financial system
• Migration to cashless payment platforms
• Supporting economic recovery and growth

Bank's response to stakeholders

• Remaining compliant with regulatory requirements
• Timely submission of regulatory reports and returns
• Timely payment of tax payments and furnishing of tax returns
• Aligning internal strategies to support growth and revival of the economy