Chairman's Letter - Seylan Bank

8 North Bound > Seylan Bank Annual Report 2011
‘Northwards’ and ‘upwards’ have
become telling metaphors for a
journey, heading towards sustainable
well-being and prosperity that
characterises Seylan Bank today. It is
a journey that has steadily gathered
momentum over the past three years.
In traversing its path, the Bank is
laying a solid foundation for its next
phase of growth.
To fully appreciate the journey,
perspective is necessary.
Eastman narangoda
Chairman

Chairman’s Letter
{ P r e fa c e }
The National Economy
Sri Lanka’s economic performance mirrors the healthy robustness of that of the South Asian
region, where growth has been recorded amidst the chaos and downturns prevalent in
countries of the Western hemisphere. GDP growth was maintained above 8%, making the
Sri Lankan economy one of the fastest growing in the world. This is a testament to the Nation’s
successful implementation of its monetary and fiscal policies.
Sri Lanka’s fortuitous return to peace has provided freedom and leeway for growth and
kick started economic activity and enterprise across the island, particularly in the North
and East. Key sectors of opportunity and growth are - tourism, agriculture, fisheries and
construction.
These areas provide fertile ground for the Bank to be able to contribute and prosper in
tandem with the Nation and its people.

10 North Bound > Seylan Bank Annual Report 2011
Chairman’s Letter
Consistent Performance Keeps us ‘Heading North’
The Bank has enjoyed one of its best ever years, in terms of performance and achievement in
2011. However, I believe that to truly appreciate such results and lend them proper context,
we need to revisit our performance over the period 2009 to 2011.
At the close of 2008, the Bank stood on the verge of collapse. A new Board of Directors,
which I was privileged to chair, was appointed with a mandate to rescue the Bank and effect a
turnaround in its fortunes. The remarkable story of how this was achieved is detailed at length
in our Annual Report of 2009, titled ‘The Case Study’. Our ability to ‘return to good health’ and
restore the confidence of public and shareholder alike sans any bail-out from the Government
is unique and remains unprecedented in Sri Lanka to date.
In 2010, a combination of emancipated strategic planning and decisive action helped
the Bank embark on a positive upward trend. At year end 2010, we had achieved an after
tax profit of Rs. 1.2 Bn., a record for the Bank and exceeding results for 2009 by 126%. Most
importantly, we made significant progress in renewing stakeholder confidence in the Bank.
In 2011, Seylan Bank achieved after tax profits of Rs. 1.0 Bn. This figure has to be viewed
in the context of higher expenditure occasioned by the funding of a voluntary retirement
scheme to the value of Rs. 699 Mn. Without the effect of this scheme, the before tax profit
would have stood at Rs. 2.2 Bn. which compares very favourably with the previous year’s
record achievement and would have indeed set a new ‘best ever’ for the Bank.
Laying a Solid Foundation for Growth
The Bank took several important initiatives during the year in review to strengthen our
‘foundation for growth’ and target sustainable development in the coming years.
Top level recruitment initiatives saw us retain a new General Manager and a Chief
Financial Officer and appoint senior consultants for our Risk Management and Legal Divisions.
In the process we have augmented our Corporate Governance and Risk Management
regimes, among other areas.

North Bound > Seylan Bank Annual Report 2011
11
The Bank’s voluntary retirement scheme was completed in an environment of amity. This
has allowed us to meet the aspirations of retirees as well as those remaining in employment,
whilst also speeding up restructuring for the future.
Most significantly we cleaned up our Assets Portfolio and reduced our Gross NPL Ratio
from 25.07% in 2010 to 17.67% in 2011.
The Bank has also implemented a new strategic plan for the period 2012 to 2015.
One of the most encouraging developments during the year has been the show of
commitment and loyalty by shareholders in support of the Bank. By subscribing to a rights
issue during the year under review, they have reaffirmed their faith and confidence in the
conduct and management of the Bank’s affairs whilst injecting capital for its envisioned
growth and development.
In conclusion, I wish to thank the Government of Sri Lanka, the Governor of the Central
Bank of Sri Lanka (CBSL), the Bank Supervision Department of CBSL, our shareholders, every
employee of the Bank and our loyal and steadfast customers - your confidence and trust in
Seylan Bank is not misplaced. In fact, the Bank regards this as a sacred trust to be cherished
and safeguarded above all else.
To my colleagues on the Board, I extend heartfelt thanks for their dedication and valuable
contribution.
I like to think that we are all co-travellers on a journey ‘headed North’ towards the further
prosperity of the Bank, the Nation and its people.
Eastman Narangoda
Chairman
8th February 2012