Responsible organisation

The Bank’s Responsible Organisation Framework is anchored in three interconnected elements, illustrated in the Figure 38 below, which collectively guide how the institution manages its operational footprint, strengthens internal culture, and upholds accountability across its value chain.

Why green and safe workplace matters

A green and safe workplace is foundational to the Bank’s ability to deliver resilient performance, as it ensures the reliability and efficiency of the infrastructure supporting our nationwide service delivery. For a systemically important institution, the physical footprint is more than a backdrop; the well-being, safety, and engagement of the workforce operating this network are critical drivers of institutional stability.

Our day-to-day operational practices – encompassing energy and water stewardship, facility reliability, occupational safety, security readiness, and employee wellness – have direct implications for operating cost discipline and operational risk exposure. Furthermore, these practices are central to maintaining service continuity, ensuring talent retention, and reinforcing the Bank’s long-term franchise strength.

Environmental stewardship within our operations is equally vital. The Bank’s physical presence, procurement patterns, and workplace behaviours directly influence the intensity of resource consumption and the environmental footprint embedded in routine business activity. Consequently, maintaining a green and safe workplace is a governance and performance imperative that underpins our long-term operational integrity and systemic resilience.

Our approach

Commercial Bank recognises that environmental stewardship and workplace safety are not merely discrete compliance activities, but are integral components of robust operational governance. The management of our facilities, the efficiency of resource consumption, and the quality of our working environments directly impact service reliability, operational risk exposure, and cost discipline. Furthermore, these factors are critical to our ability to attract, retain, and deploy top-tier talent across our distributed national network.

Accordingly, our strategy is driven by a clear operational logic: financial and operational resilience are strengthened by infrastructure efficiency and safety readiness, while standardised controls across the network minimise operational variability and avoidable incidents.

To ensure sustained performance, these practices are embedded into routine management processes and supported by:

• Infrastructure investments: Modernising facilities to enhance resource performance.
• Workplace policies & controls: Establishing repeatable standards for safety and environmental care.
• Organisation-wide engagement: Fostering a culture of responsibility so that high standards do not depend on ad-hoc initiatives or individual location-level discretion

In practice, this approach is delivered through three mutually reinforcing priorities:

• Reducing operational environmental impact through resource-efficient infrastructure and operational controls that address energy, water, materials and waste across the branch and office network.
• Maintaining safe, healthy and supportive working conditions through consistent workplace standards, preventive risk management, security readiness and wellbeing measures across locations.
• Embedding awareness and responsible behaviour through structured learning, training and participation mechanisms that support consistent implementation across the network.

Where relevant, these priorities are aligned to the Bank’s broader climate transition agenda and the operational targets and metrics disclosed under SLFRS S1/S2 (e.g., renewable energy adoption and operational energy efficiency).

As part of this broader agenda, the Bank continued its carbon-neutral journey for own operations, combining practical abatement levers with year-round awareness to embed consistent behaviours across a distributed network.

In this context, the Bank’s Climate Position Statement given below reinforces its operational approach by promoting sustainable resource use, supporting the low-carbon transition, and embedding climate considerations into operations and workplace practices.

Key developments during 2025

During 2025, the Bank advanced a combination of governance-aligned climate transition initiatives, infrastructure improvements, repeatable resource-efficiency controls, workplace readiness measures, and organisation-wide engagement and recognition mechanisms, all designed to be scalable across its distributed network.

Reducing operational environmental impact

Renewable energy adoption

As part of its ongoing commitment to advancing sustainable energy solutions, the Bank has fully integrated solar power across all Bank-owned branches, bringing the total number of solar-powered locations to 89. The total installed solar capacity as at year end stood at 2,370 kW, significantly reducing reliance on conventional grid electricity and lowering the Bank’s carbon footprint.

In addition to contributing to national renewable energy goals, this initiative enhances long-term energy security and operational cost efficiency.

Building on this strong solar foundation, the Bank is exploring opportunities to diversify into other renewable energy solutions in the future.

The Table 13 indicates the Bank’s utility power consumption and greenhouse gas (GHG) emissions performance for the five-year period ended December 31, 2025.

Utility power consumption and GHG emissions Table – 13

Indicator	2025	2024	2023	2022	2021
Total utility power (CEB/LECO) consumption (Gigajoules)	48,941	48,129	46,971	38,416	42,906
Increase/(decrease) in utility power consumption (Gigajoules)	812	1,158	8,555	(4,490)	(2,139)
Direct (Scope 1) GHG emissions (CO₂ Tonnes)	862	630	868	1,880	1,203
Energy indirect (Scope 2) GHG emissions (CO₂ Tonnes)	6,173	6,669	5,586	6,496	7,144
Solar power generated (Gigajoules)	8,865	8,337	7,556	5,796	1,008
Solar power generated as % of utility power consumption (%)	18.11	17.32	16.09	15.09	2.35

Energy and infrastructure efficiency

In 2025, the Bank further strengthened its digital backbone and physical infrastructure to enhance operational reliability, efficiency, and overall energy performance across its network, as illustrated in Figure 40 below:

Digitalisation and process optimisation

In 2025, the Bank advanced its digital transformation agenda by embedding technology deeper into internal workflows and service delivery channels. Trade operations enhanced their digital processing capabilities, moving closer to fully electronic documentation and submission frameworks. Workflow automation reduced processing layers, improved accuracy, and shortened turnaround times across operational functions.

Within Card Services, customer communication and authentication processes were further digitised. E-statements exceeded 60% adoption, while SMS-based PIN issuance and digital receipts replaced traditional physical formats. These measures streamlined operations, reduced administrative overheads, and enhanced customer convenience while supporting process integrity and data security.

Beyond efficiency gains, digitalisation reduced dependence on physical documentation and storage, contributing to lower material consumption and improved operational sustainability metrics.

Water, materials, and waste management

Although the Bank’s direct water consumption is relatively low given the nature of our operations, we continue to run awareness campaigns and implement practical controls to reduce usage further and prevent avoidable wastage across our network.

A key water-efficiency intervention in 2025 was the deployment of standardised controls across multiple locations: Cascade plug-in automation inline water systems were installed at 35 operational sites, regulating supply and reducing avoidable wastage through infrastructure-embedded controls

rather than behavioural reliance. During the year, the Bank also formally committed to supporting SDG 6 – Clean Water and Sanitation, reinforcing its responsibility to promote efficient water use and sustainable water management within its operational footprint.

Waste management discipline continued through structured recycling practices, responsible handling and disposal of electronic waste, and further efforts to reduce reliance on single-use plastics and disposable materials, including removing plastic packaging for purchased items and replacing with eco-friendly alternatives.

Maintaining safe, healthy, and supportive working conditions

The Bank remains committed to fostering a workplace environment that safeguards employee health, promotes wellbeing, and enables sustainable performance. In 2025, our approach to maintaining safe, healthy and supportive working conditions was strengthened through structured policies, preventive healthcare initiatives, flexible work practices, and targeted wellbeing programs as illustrated below.

Promoting work–life balance and flexible work models

Following a successful pilot phase, flexible work arrangements were formally introduced across all departments in February 2025. This initiative supports improved work–life balance, enhances employee engagement, and contributes to sustained productivity while ensuring operational continuity.

Strengthening preventive healthcare and physical wellbeing

The Bank expanded its health infrastructure and screening initiatives to promote early detection and preventive care. Key measures included:

• Establishment of three in-house gymnasiums, with two additional facilities planned, encouraging physical fitness and healthy lifestyles.
• Mobile annual health check-ups supported by reminder campaigns to ensure high participation.
• Targeted screening programmes, including eye and dental check-ups.

In addition, breast cancer awareness programmes were conducted in partnership with Indira Cancer Trust, reinforcing the importance of early detection and access to medical guidance for employees and the wider community.

Supporting mental and digital wellbeing

Recognising the importance of psychological safety and resilience in a high-performance environment, the Bank conducted structured workshops on stress management, child protection awareness, and digital health. These initiatives help employees manage workplace pressures, navigate digital risks responsibly, and maintain overall wellbeing.

Fostering an inclusive and supportive culture

Health and safety are embedded within a broader culture of care, inclusion and recognition. HR-led initiatives integrated wellness, open communication, and employee recognition into daily operations, strengthening engagement and reinforcing a connected workplace environment.

Safety preparedness

The Bank maintains a proactive approach to workplace safety through regular fire drills, evacuation exercises, and emergency response simulations conducted across branches and offices. These initiatives strengthen employee awareness and preparedness for unforeseen events.

Specialised training in first aid, fire safety, and crisis management equips staff to respond effectively to medical emergencies, natural disasters, and workplace incidents. Ongoing safety awareness campaigns further reinforce a culture of vigilance, shared responsibility, and business continuity.

Premises upgrades and the enhanced security control room capability also contributed to workplace safety outcomes by improving the suitability of work environments and strengthening monitoring and response capability.

Embedding sustainability awareness and responsible behaviour

Because the Bank operates through a geographically distributed footprint, consistent implementation of environmental and safety practices depends on staff awareness and capability. During 2025, the Bank strengthened adoption through structured participation, learning platforms and training.

To embed ownership beyond central teams, the Bank also leveraged internal ‘Future Force’ members as local champions within business units, supporting practical adoption of green concepts in day-to-day routines. This helps translate policies and targets into branch- and unit-level behaviours, improving consistency of implementation across locations.

A highly visible participation mechanism was the Sustainability Creativity Challenge, structured under EcoLens, GreenFrame and EcoVision, which achieved broad internal engagement with over 180 submissions and over 2,000 employees participating in intranet voting. To support sustained learning, the Bank introduced a dedicated Sustainability Learning Hub on its intranet, providing tools and curated learning resources, with more than 20 sustainability-related articles published during the year. Capability-building was reinforced through 25 sustainability-related training programmes, reaching 825 staff members, supporting consistent implementation of sustainability-related controls and expectations across locations.

To reinforce implementation discipline through recognition, the Bank also promoted a Best Sustainable Branch and Department Award concept, designed to encourage innovation and highlight practical improvements that can be replicated across the network. By recognising measurable, local solutions, the programme supports a sustained sustainability culture rather than one-off initiatives.

Cross-functional adoption enablers

Delivery of this agenda is supported by cross-functional enablers so that ‘green and safe workplace’ outcomes are embedded in how the Bank operates, serves customers and manages operational risk. Customer experience and service teams reinforce day-to-day behaviours across the network, while digital banking and information security functions strengthen safe adoption of digital channels through ongoing awareness on security features, fraud prevention and cyber hygiene. HR supports culture and capability through training and engagement, premises teams institutionalise energy-efficient practices through infrastructure and controls, and marketing reinforces key sustainability messages to strengthen internal and external alignment.

These performance outcomes are reflected in Table 41 – Renewable Energy Adoption and Table 42 – Energy Efficiency of Bank’s Operations under SLFRS Sustainability-related Financial Disclosures

Why workplace culture matters

At Commercial Bank, workplace culture is treated as an operating system that directly influences execution quality, service consistency, risk discipline and long-term resilience. As a systemically important bank with a distributed branch network, performance depends on thousands of daily decisions taken across locations. Culture therefore shapes not only employee experience but also productivity, governance standards and franchise stability.

Rather than positioning culture as a standalone HR theme, the Bank focuses on practical conditions that determine how work is delivered, clarity of expectations, leadership behaviour, employee voice, capability development and wellbeing support.

Our approach

The Bank’s approach to workplace culture is grounded in the belief that sustained engagement and performance depend on clear expectations, continuous capability development, and a measurable employee experience. The focus is on embedding systems that build trust, support career progression, and promote wellbeing – enabling employees to perform consistently while adapting to evolving organisational demands.

This approach is delivered through three interconnected priorities:

• Enhancing employee experience through structured listening mechanisms, responsive HR engagement, and policies that support modern work-life needs.
• Building a future-ready workforce through disciplined talent pipelines and competency-based development aligned with strategic priorities.
• Strengthening motivation and inclusion through recognition, wellbeing initiatives, and targeted support—particularly for women and emerging talent.

Key developments during 2025

Culture of integrity and conduct

A foundational component of workplace culture is the maintenance of high standards of professional conduct. The Bank’s culture framework is built on a comprehensive Code of Ethics supported by a formal Conduct Risk Management framework designed to reinforce accountability, transparency and responsible decision-making across all levels.

The Code of Ethics defines expected behavioural standards covering integrity, confidentiality, conflict-of-interest management, responsible use of information and adherence to regulatory requirements. The Conduct Risk Management framework complements these expectations through structured processes to identify, monitor and mitigate risks arising from inappropriate conduct.

During 2025, awareness and reinforcement of ethical standards continued through structured programmes covering the Code of Ethics and the Bank’s Whistleblowers Charter. These initiatives support a “speak-up” culture by providing employees with clear, confidential channels to raise concerns without fear of retaliation. Together, the conduct and escalation mechanisms function as cultural infrastructure that goes beyond compliance formality, clarifying expectations, enabling escalation, reinforcing accountability, and strengthening organisational trust, risk discipline and consistent professional behaviour across the branch network.

Anti-bribery and anti-corruption

Operations assessed for risks related to corruption

The Bank operates under a Board-approved Anti-Bribery and Anti-Corruption Policy, aligned with the 10th Principle of the UN Global Compact and supported by the Code of Ethics and Conduct Risk Management framework. The Policy currently applies to the Bank’s Sri Lanka operations, covering the Board of Directors, employees, third-party vendors, intermediaries and business partners, and establishes a strict zero-tolerance approach to bribery and corruption. Development of an Anti-Bribery and Anti-Corruption framework for the Bank’s Bangladesh operations is underway to ensure consistent standards across all jurisdictions.

Corruption risk assessment is embedded within enterprise risk management and compliance processes. This includes coverage of credit underwriting, related party transactions, procurement and third-party engagements, trade finance and cross-border activities, and high-risk customer segments identified through AML/CFT frameworks.

Risk exposure is evaluated through periodic compliance reviews, internal control assessments and independent internal audit coverage. The Compliance function conducts structured monitoring of high-risk transactions and ensures timely escalation of identified concerns.

Confidential whistleblowing channels support early identification of potential misconduct, with safeguards ensuring anonymity and protection against retaliation.

Oversight of anti-corruption risk is exercised at the Board level through established risk and compliance reporting structures. Confirmed non-compliance, where identified, is addressed in accordance with formal disciplinary procedures. During the year 2025, the Bank did not record or identify any incidents of corruption across its operations.

Communication and training about anti-corruption policies and procedures

The Bank reinforces integrity standards across the organisation through the Code of Ethics, the Anti-Bribery and Anti-Corruption Policy and the Whistleblowers Charter. These governance instruments articulate required standards of conduct, conflict-of-interest management, reporting responsibilities and consequences of non-compliance. The Anti-Bribery and Anti-Corruption Policy is accessible internally and publicly available via the Bank’s website.

Anti-bribery and anti-corruption policy »

https://www.combank.lk/info/file/91/anti-bribery-and-anti-corruption-policy

Training coverage

During 2025, structured Anti-Corruption, AML/CFT and governance-related programmes were delivered to over 2,800 employees, representing approximately 54% of the Bank’s workforce of 5,331 employees in Sri Lanka.

Training initiatives during 2025 included:

• AML/CFT compliance programmes conducted at regional and central levels
• Trade-Based Money Laundering detection workshops
• Advanced AML compliance and compliance framework strengthening sessions
• Related Party Transaction governance programmes
• Mandatory compliance modules for Branch Managers and Assistant Branch Managers
• Induction and refresher programmes embedding conduct and compliance standards

In addition, during the year, the awareness of the Board and the Corporate management was further strengthened through participation in the Financial Intelligence Unit’s (FIU) Annual High-Level Awareness Conference for Boards.

Through full policy communication within Sri Lanka operations, expanding jurisdictional alignment, targeted training coverage, strong Board oversight and systematic risk monitoring, the Bank continues to maintain a structured and proactive approach to preventing bribery and corruption.

Employee experience, engagement, and responsiveness

Employee experience during 2025 was strengthened through a deliberate shift from traditional HR administration towards a model that treats employees as internal customers, supported by structured listening mechanisms and visible response actions as illustrated in Figure 43 below:

Employee engagement beyond the workplace

Culture becomes more durable when employees experience the institution as invested not only in performance but also in identity and family life. In 2025, the Bank explicitly included family recognition within engagement design. An event held in July 2025 honoured the children of staff members who excelled in their Advanced Level exams, positioned as a way to strengthen emotional connection between employees and the Bank. While such initiatives are not core to business execution in isolation, they contribute to “belonging architecture”, which is relevant where retention and morale depend on more than compensation alone.

Workforce profile and talent movements

Workplace culture is shaped not just by values and engagement initiatives but also by who enters, who progresses and who leaves. During 2025, the workforce profile and internal movements reflected an active organisational model with substantial recruitment, lateral mobility and formal progression pathways.

Training statistics Table – 14

	2025	2024
Total training cost (Rs. Mn.)	243.060	168.690
Total training hours	192,584	193,276
Total e-learning hours	3,238	8,371
Percentage of training through e-learning (%)	1.68	4.33
Total investment on virtual training (Rs. Mn.)	2.700	3.300

Note:

*All employees of the Bank are full time employees.

**The majority of outsourced employees are engaged in office assistant roles, supporting administrative and operational functions across the branch network.

The total number of employees increased from 5,461 (Sri Lanka 5,092, Bangladesh 369) in 2024 to 5,726 (Sri Lanka 5,331, Bangladesh 395) in 2025, by 265 (Sri Lanka 239, Bangladesh 26) employees in 2025.

The recruitment scale underscores the importance of disciplined onboarding and structured capability-building, especially for trainees. The volume of lateral transfers highlights the need for clearly defined competency requirements and role clarity so internal mobility strengthens capability deployment without creating disruption.

In this context, sustained investment in training and development remains a critical enabler of workforce effectiveness and service consistency, as reflected in Table below:

Employees by type and gender – Bank Table – 15

As at December 31, 2025	Sri Lanka		Bangladesh		Total
	Head Count	%	Head Count	%	Head Count	%
Female	1,777	33.33	119	30.13	1,896	33.11
Permanent	1,666	31.25	104	26.33	1,770	30.91
Contract	111	2.08	15	3.80	126	2.20
Male	3,554	66.67	276	69.87	3,830	66.89
Permanent	3,463	64.96	244	61.77	3,707	64.74
Contract	91	1.71	32	8.10	123	2.15
Employees – Bank *	5,331	100.00	395	100.00	5,726	100.00
Outsourced Employees
Female	537	51.14	1	1.19	538	47.44
Male	513	48.86	83	98.81	596	52.56
Employees – Outsourced**	1,050	100.00	84	100.00	1,134	100.00

Building a future-ready workforce

Workplace culture becomes strategically meaningful when development systems align employee capability with the Bank’s operating needs. During 2025, the Bank strengthened its workforce strategy through recruitment modernisation, structured pipelines and competency-based development across leadership, middle management and frontline roles

The number of promotions signals visible and credible progression pathways, an important driver of retention, motivation and engagement, particularly for early- and mid-career employees.

The Table below reflects a balanced and growth-oriented workforce of 5,726 employees, with over 40% concentrated in Executive Officers and nearly 40% in Executive Assistants & Allied Grades, underscoring the Bank’s service-driven operating model. A strong presence of early-career employees, including Banking Trainees, alongside an experienced 31-50 age cohort, highlights a structured talent pipeline that supports succession, internal mobility, and sustainable long-term capability.

Employee by category and gender – Bank Table – 16

Category	Age 18–30		Age 31–50		Age Over 50		Total
	Male	Female	Male	Female	Male	Female	Head count	%
Corporate management	–	–	9	1	23	4	37	0.65
Executive officers	141	59	1,404	380	263	112	2,359	41.20
Technology stream	28	3	59	9	4	3	106	1.85
Executive assistants & allied grades	794	518	659	217	23	48	2,259	39.45
Banking trainees	299	411	8	4	1	–	723	12.63
Fixed term contract	72	91	17	14	2	6	202	3.53
Office assistants & others	–	–	2	1	22	15	40	0.70
Total	1,334	1,082	2,158	626	338	188	5,726	100.00

Modernising recruitment and widening sourcing channels

To address limitations of traditional recruitment, sourcing quality was strengthened through a modern mix of digital tools and partnerships:

• Use of LinkedIn and Facebook for candidate engagement, including LinkedIn Recruiter and AI-powered filters and keyword matching to screen profiles more effectively.
• Active participation in university-level and national career fairs to attract fresh talent.
• Conducting school career guidance workshops as an early-stage pipeline intervention to help students understand banking careers and plan pathways.
• Use of regional-based recruitment, publishing vacancies via the branch network to attract candidates in areas with more pronounced talent deficits.

This approach supports culture by reducing mismatches between candidate expectations and organisational realities, improving long-term fit and enabling more stable staffing across regions.

Tables 17 and 18 together present a balanced view of workforce inflows and outflows during 2025.

As reflected in the New Employee Hires table, recruitment remained concentrated in the 18–30 age group, underscoring the Bank’s focus on building a strong early-career talent pipeline, while maintaining gender diversity across both Sri Lanka and Bangladesh operations.

The Attrition table indicates a moderation in overall exits compared with 2024, particularly within the 31–50 age segment, signalling improved retention among experienced employees.

New employee hires/Recruitments Table – 17

For the year ended December 31,	2025		2024
	Nos.	%	Nos.	%
Sri Lanka
Female
18-30 years	326	48.37	339	48.43
31-50 years	25	3.71	18	2.57
Above 50 years	2	0.30	3	0.43
Male
18-30 years	240	35.61	261	37.29
31-50 years	29	4.30	30	4.29
Above 50 years	1	0.15	1	0.14
Total – Sri Lanka	623	92.43	652	93.14
Bangladesh
Female
18-30 years	10	1.48	16	2.29
31-50 years	4	0.59	3	0.43
Above 50 years	0	0.00	0	0.00
Male
18-30 years	22	3.26	22	3.14
31-50 years	13	1.93	6	0.86
Above 50 years	2	0.30	1	0.14
Total – Bangladesh	51	7.57	48	6.86
Total Bank	674	100.00	700	100.00

Attrition Table – 18

For the year ended December 31,	2025		2024
	Nos.	%	Nos.	%
Sri Lanka
Female
18-30 years	74	18.09	60	13.64
31-50 years	24	5.87	42	9.55
Above 50 years	22	5.38	29	6.59
Male
18-30 years	118	28.85	95	21.59
31-50 years	115	28.12	160	36.36
Above 50 years	31	7.58	30	6.82
Total – Sri Lanka	384	93.89	416	94.55
Bangladesh
Female
18-30 years	2	0.49	3	0.68
31-50 years	4	0.98	2	0.45
Above 50 years	0	0.00	0	0.00
Male
18-30 years	4	0.98	7	1.59
31-50 years	10	2.44	5	1.14
Above 50 years	5	1.22	7	1.59
Total – Bangladesh	25	6.11	24	5.45
Total Bank	409	100.00	440	100.00

Structured early-career pipelines

The Bank strengthened its early-career pipeline through two structured pathways designed to build long-term capability. A scholarship programme for selected banking trainees, implemented in collaboration with the University of Colombo, supports academic qualification enhancement and alignment of trainee development with external academic standards; under this programme, trainees receive honorariums for completed studies and reimbursement of banking exam fees, supported by an upgraded learning ecosystem. In parallel, a Graduate Trainee Programme continued to build a pipeline of high-potential graduates for long-term career development within the Bank. Together, these initiatives reflect a deliberate focus on capability accumulation over time, rather than relying primarily on lateral hiring to fill emerging skill gaps.

Competency Development Framework and workforce expectations

A major cultural lever in professional organisations is clarity of expectations; what behaviours and capabilities are required to progress, lead and perform. In 2025, the Bank partnered with Deloitte India to develop a new Competency Development Framework structured into three areas:

• Leadership Competency Framework for senior leaders (strategic thinking, decision-making, change management)
• Middle Management Competency Framework for mid-level managers (team leadership, project delivery, collaboration)
• Frontline Customer Service Competency Framework (service excellence, responsiveness, compliance)

A defining feature is the inclusion of Digital Proficiency as a key competency for all staff – signalling that digital capability is a baseline expectation aligned to the operating model, not a specialist track. To support adoption, learning and development capability was strengthened by onboarding a Training & Development Transformation Specialist and an Assistant Manager (Talent Development), positions that support internalisation rather than treating competency frameworks as static documents.

Supporting professional advancement

Beyond training, culture is shaped by whether employees can convert effort into recognised progression. In 2025, professional development support mechanisms for executive grades were reinforced through:

• Reimbursement of Master’s Degree expenses for Executive grades
• Reimbursement of two professional subscriptions per annum for Executive grades, supporting continuous learning and external credential engagement

These measures reinforce a culture where professionalisation is encouraged and supported rather than treated as purely individual responsibility.

Leadership, communication, and managerial capability

In a distributed organisation, culture is experienced largely through immediate managers. Leadership capability functions as a multiplier: strong leadership improves clarity, morale, development outcomes and retention; weak leadership creates misalignment, frustration and performance variability.

During 2025, leadership and communication strengthening was operationalised through:

• The skip-level meeting structure, creating a feedback loop between senior leadership and younger employees and signalling that leadership is expected to listen, not only direct.
• The formalisation of flexible work, requiring stronger managerial capability in goal-setting, performance tracking and trust-based supervision.
• A leadership development programme for Regional Managers titled “Awakening the Leader Within.”

Together, these elements reinforce an intent to shift leadership away from hierarchy-driven communication towards more transparent, capability-based leadership practice.

Diversity, Equity, and Inclusivity (DEI)

The following illustration outlines how Diversity, Equity and Inclusion (DEI) is embedded into the Bank’s governance framework, talent management practices and employee engagement mechanisms, positioning inclusion as a core operational capability.

Women’s wellbeing and workplace support

Women’s workplace support was reflected in engagement initiatives and explicit commitments. In 2025, women’s wellbeing was positioned as tied to dignity, safety and empowerment, with steps taken to make workplaces safer and more supportive for women, including:

• Enhanced health benefits
• Special leave and assistance for mothers beyond statutory provisions
• Leadership and professional development programmes tailored for women
• Mechanisms ensuring every employee’s voice can be heard

These elements matter as institutional design choices shaping employee experience, progression and psychological safety.

Empowering Women within the Organisation

In celebration of International Women’s Day, the Bank extended its initiatives to its women employees through a dedicated knowledge-sharing session designed to inspire leadership and professional growth. The forum featured distinguished industry leaders – Ms Kasturi Wilson, Chief Operating Officer (Head of APAC), 5Hour International Corporation; Ms Shashi Kandambi, General Manager/Chief Executive Officer of the National Savings Bank; and Ms Aruni Goonetillake, veteran banker and former Chairperson of Hatton National Bank – who shared personal insights on leadership, resilience and career advancement.

The session created a platform for meaningful dialogue and learning, reinforcing the Bank’s commitment to empowering women within the organisation. Employees from outstation branches were able to join virtually, ensuring broad and inclusive participation across the Bank’s network.

The table below presents key diversity indicators relating to female workforce representation, leadership participation, recruitment, promotions, exits, and geographical distribution.

Female workforce diversity metrics Table – 19

Indicator	2025	2024
No. of female employees	1,896	1,653
Female in senior management (%)	1.05	0.88
Female employees promoted (%)	21.07	19.91
Female employees recruited (%)	54.45	54.14
Female exit rate (%)	30.81	30.91
Sri Lanka – Western province (%)	75.07	75.23
Sri Lanka – Outstations (%)	24.93	24.77
Bangladesh – Dhaka (%)	88.24	86.49
Bangladesh – Other locations (%)	11.76	13.51

Note: Exit rates include retirements. Percentages are calculated against relevant annual totals.

The table below outlines maternity leave utilisation, return rates, and 12-month retention performance for the period.

Retention rate after maternity leave Table – 20

Indicator	2025	2024
Availed Leave during the year	34	28
Returned during the year	33	32
Returned during prior year	28	38
Still employed after 12 months	27	33
Return ratio (%)	92.00	100.00
Retained ratio (%)	96.43	86.84

*All female employees are eligible for maternity leave

Recognition, participation, and a culture of contribution

Workplace culture is reinforced when participation is meaningful and effort is visible. During 2025, multiple participation formats strengthened engagement, creativity and internal community, with management endorsement signalled through formal recognition.

Structured activities included:

• A staff photography competition attracting over 1,000 entries
• A debate competition held in August 2025, supporting collaboration and confidence-building, especially among younger employees
• A sustainable activity contest, with winners recognised at the ComBank Excellence Awards (July 2025)
• Sustainability-focused participation initiatives such as the Sustainability Creativity Challenge (EcoLens, GreenFrame, EcoVision).

While operational environmental impact is addressed under Green and Safe Workplace, the cultural value lies in reinforcing collective ownership of sustainability priorities.

Volunteerism: A core pillar of the Bank’s sustainability commitment

Volunteerism stands as one of the most authentic expressions of the Bank’s sustainability commitment. Led by Future Force Members across branches and departments, employee-driven initiatives generated meaningful social and environmental impact nationwide, reinforcing the belief that sustainability is realised not only through strategy, but through people.

As a structured network of sustainability champions, Future Force Members mobilised community engagement, partnered with local authorities and schools, conducted awareness programmes, and led grassroots initiatives aligned with the Bank’s strategic sustainability priorities. Their efforts in environmental conservation, social upliftment, and financial literacy demonstrate how empowered employees can translate corporate purpose into tangible community outcomes.

The Best Sustainable Branch and Department of the Year Award recognises outstanding sustainability efforts across the Bank’s branches and departments. It aims to promote environmentally responsible practices, reduce operational impact and inspire a strong culture of sustainability within the organisation.

Open to both branches and departments, the award is assessed across four areas: sustainable performance in daily operations, innovative sustainability solutions, demonstration of responsible workplace behaviours, and the successful execution of impactful sustainability projects. Through this framework, the Bank reinforces accountability and continuous improvement in sustainable practices.

Supporting professional communities and communication

Professional communities function as culture infrastructure by strengthening confidence, communication and peer connection beyond formal reporting lines. During 2025 this was supported through a 10-day awareness programme for Toastmasters Rising, accompanying newsletters and approved reimbursement revisions to encourage participation.

These initiatives signal that communication, confidence and professional self-development are institutionally valued and supported.

Digital-first ways of working as culture reinforcement

A future-ready culture requires internal work processes to align with the Bank’s broader digital trajectory. In 2025, internal process automation initiatives were implemented to reduce friction, improve fairness through standardisation and reduce administrative burdens that undermine engagement.

Key process improvements included introduction of the Staff Claim Module, digitising staff claims submission related to official duties and replacing manual procedures, supporting efficiency, faster information access and reduced paper use, introduction of a Staff Loan Conversion Module within the E-Staff Loan System, converting staff loan conversion workflows into a fully digitised process and eliminating manual letter printing, eligibility verification and record-keeping. Reported benefits include reduced processing time, workload balancing during peak conversion cycles following the 2025 staff loan revision, increased accuracy and reduced paper-based tasks.

These interventions strengthen culture by improving the internal customer experience: when processes are predictable, quick and transparent, employees are less likely to experience frustration, perceived unfairness or unnecessary administrative overload.

Targets and metrics

Human capital performance – 2025

Employment and workforce stability Table – 21

Indicator	2025	2024
Attrition rate (%)	7.31	8.25
Net workforce growth	+265	+260

Talent attraction, renewal, and succession Table – 22

Indicator	2025 %	2024 %
Early-career hiring (18-30 years)	88.72	91.14
Workforce – 18-30 years	42.19	39.57
Workforce – 31-50 years	48.62	50.74
Workforce – Above 50 years	9.19	9.69

Diversity, equity, and inclusion Table – 23

Indicator	2025 %	2024 %
Female representation	33.11	30.27
Female recruitment	54.45	54.14
Female promotions	21.07	19.91
Female in senior management	1.05	0.88

Learning and development Table – 24

Indicator	2025	2024
Average training hours per employee	6	6
Average training cost per employee (Rs.)	42,448	30,721

Employee wellbeing and retention support Table – 25

Indicator	2025	2024
Return-to-Work (from maternity Leave) Ratio (%)	92.0	100.0
12-Month Retention After Return (from maternity Leave) (%)	96.43	86.84

Why sustainable supply chain matters

Sustainable supply chain management is material to Commercial Bank because procurement decisions and third-party relationships directly influence cost discipline, service reliability, operational risk exposure, and the Bank’s wider environmental and social footprint, particularly given the Bank’s systemically important role, nationwide physical network and recurring procurement needs.

The Bank therefore treats sustainable supply chain management as a governance and performance lever, not a reputational add-on, because third-party dependencies shape not only what is purchased, but how transparently and responsibly goods and services are sourced, managed and delivered across a distributed footprint. Oversight of this agenda spans both Procurement and Logistics, reflecting the fact that supplier selection, specification discipline, delivery arrangements and disposal practices collectively determine outcomes.

Our approach

Our approach is anchored in a simple logic: repeatable procurement controls reduce discretion and operational variability, and better traceability improves accountability and cost outcomes over time. Sustainability in procurement is treated as an execution discipline, embedded into sourcing rules, vendor onboarding and contract management, rather than a stand-alone programme. In this context, sustainable supply chain management covers how suppliers are selected and managed (including ethical and sustainability expectations), how procurement processes are governed and digitised to strengthen transparency and integrity, and how resource efficiency and circular practices are embedded into purchasing and logistics while maintaining commercial discipline.

This approach is delivered through three mutually reinforcing priorities:

• Governance and integrity in sourcing: structured processes, defined evaluation steps and documented decision-making for supplier selection and management.
• Supplier outcomes through practical controls: purchasing specifications that reduce avoidable environmental impacts, expand circular practices for consumables, and improve supplier-base composition (including supplier inclusion).
• Digitisation for transparency and discipline: procurement digitisation (e-tendering) to standardise supplier registration, RFP workflows and e-bidding, reducing manual discretion, strengthening traceability, and improving control over cost and outcomes.

Key developments during 2025

During 2025, the Bank further strengthened its sustainable supply chain management framework through a coordinated set of governance, digitalisation, environmental and supplier inclusion initiatives. The focus remained on establishing repeatable controls and measurable outcomes, ensuring that procurement decisions are transparent, defensible and consistently applied across the Bank’s distributed branch and office network.

1. Strengthening procurement governance and integrity

A key priority during the year was enhancing procurement governance through more structured vendor selection and documented decision-making.

• Structured RFP processes:

  Supplier selection in major outsourced service categories continued under formal RFP procedures. In 2025, full RFP-based evaluations were strengthened in selected areas, enhancing transparency, comparability and auditability of vendor assessments.

• Documented decision frameworks:

  Clear evaluation criteria and structured scoring mechanisms reduced subjectivity and strengthened management oversight of procurement decisions.

• Operational efficiency improvements:

  Service design refinements and targeted technology integration improved cost-effectiveness in selected operational areas.

  • Technology-enabled measures reduced security labour intensity, without compromising safeguards.
  • CCTV installation and maintenance were outsourced under structured arrangements, delivering measurable cost efficiencies while maintaining required service standards.

Together, these measures enhanced procurement discipline while supporting operational resilience and cost management.

2. Digitisation and process transparency

The year marked a significant step forward in procurement transparency through digital transformation.

• Integrated e-tendering platform: An end-to-end system was implemented covering supplier registration, structured RFP workflows and e-bidding, creating a standardised procurement process.
• Unified audit trail: The platform provides a consolidated, traceable record across the procurement lifecycle, enhancing documentation integrity and compliance readiness.
• Workflow standardisation: Automated workflows strengthen segregation of duties, reduce manual discretion and limit process variability.
• Structured bid evaluation: Systematic scoring and structured bid comparisons reinforce competitive integrity and reduce reliance on fragmented documentation.

Procurement discipline was further supported through year-on-year spend monitoring and tighter specification controls.

3. Embedding environmental controls in procurement

Environmental considerations were systematically integrated into purchasing specifications and logistics, moving from ad hoc actions to structured, process-driven practices.

Reducing packaging waste

Plastic packaging was eliminated in selected purchased items and replaced with eco-friendly alternatives. This reduced waste at source and embedded environmental criteria directly into purchasing decisions.

Circular procurement – Pen reuse pilot

A structured circular procurement model was introduced to improve resource efficiency:

A pilot project was initiated to introduce refillable pens, reducing the cost per pen by Rs. 14/- compared to the existing disposable pens. Upon successful rollout across the network, this initiative is expected to generate cost savings while supporting the Bank’s commitment to sustainable procurement and waste reduction through minimised single-use plastic consumption.

4. Structured e-waste management

Building on the 2024 framework, the Bank expanded its formal e-waste management programme across the branch network in 2025.

Over 5,000 units of IT and general equipment were collected and fully disposed through a recycler authorised by Central Environmental Authority (CEA).

The programme covers IT equipment (PCs, printers, scanners, network devices, mobile phones, ATMs/CRMs, storage devices, toners and cartridges) and general electrical equipment (air conditioners, refrigerators, microwaves, batteries, CFL and LED bulbs).

The programme aligns with the 4R principles (Reduce, Reuse, Recycle, Recover) and strengthens environmental accountability across operations.

5. Strengthening the supplier ecosystem

Supplier ecosystem outcomes were further enhanced through incremental inclusion and local sourcing discipline.

• Women supplier inclusion: Four female suppliers were introduced into the vendor network in 2025, contributing to gradual diversification of the supplier base.
• Local sourcing priority: Continued emphasis on domestic sourcing supports SMEs, enhances responsiveness across the branch network, reduces logistical complexity and contributes to national economic activity.
• Balanced evaluation framework: Supplier engagement is conducted within a structured sourcing framework that balances compliance with institutional standards, cost efficiency, quality assurance and responsible business practices.

Targets and metrics

Given that this sub-pillar is primarily about governance, control discipline and measurable operational outcomes, targets and metrics are most decision-useful when they demonstrate how consistently procurement controls are being applied, what circularity and waste outcomes are being achieved, how supplier ecosystem composition is changing, and whether cost discipline is being sustained through specification control and transparent sourcing.

Accordingly, the Bank tracks progress using the following set of metrics that align directly to the initiatives described above.

• E-tendering coverage: 95% of eligible tenders conducted via the e-tendering platform; 67 suppliers registered; 52 RFPs/e-bids processed.
• Supplier inclusion: 4 of new suppliers that are women-owned/led; over 20 new local SMEs onboarded.
• E-waste management: Over 5,000 units of IT and general equipment were collected and 100% disposed via a CEA-authorised recycler.