Elements of sustainable banking

At the heart of the Bank’s sustainable banking pillar are three interconnected elements, as illustrated in the Figure 16 below, which together guide how value is created for stakeholders while balancing financial, social and environmental priorities.

Why responsible financing matters

Responsible financing matters because it is where sustainability most directly meets the Bank’s balance sheet, translating sustainability priorities into asset quality, capital strength, liquidity resilience, funding access, and long-term franchise value. For a systemically important lender, sustainability is inseparable from the core function of financial intermediation: decisions on who is financed, on what terms, and under what risk disciplines shape economic activity and resilience, influencing inclusion, enterprise development, environmental outcomes and systemic stability.

For Commercial Bank of Ceylon PLC, responsible financing is therefore the practical link between sustainability priorities and financial performance. Lending and investment decisions directly affect the Bank’s risk profile (credit, operational, legal and reputational risk), earnings resilience through portfolio quality and funding stability, and long-term license-to-operate through trust.

Our approach to responsible financing

Our approach operates on a clear strategic logic: financial resilience provides the foundation for responsible credit allocation, while disciplined lending, in turn, reinforces that resilience.

Key developments during 2025

In 2025, the Bank strengthened its responsible finance agenda by advancing Green and Blue Finance, scaling green finance capabilities, enhancing ESG and climate considerations into credit decisions, progressing its Climate Transition Plan, and expanding lending to priority sectors.

This approach is delivered through four mutually reinforcing priorities as illustrated in the Figure 17 below:

The Bank’s sustainable finance approach is aligned with relevant global and local frameworks, including the United Nations Sustainable Development Goals (SDGs), the Central Bank of Sri Lanka’s Sustainable Finance Roadmap and related guidance, and the Sri Lanka Banks’ Association Sustainable Banking Principles, positioning responsible financing as a deliberate strategy to align financial growth with sustainable development objectives rather than a narrow compliance exercise.

Driving sustainability through Green and Blue Finance

The Bank continued to scale its Green and emerging Blue finance portfolio as a strategic priority supporting the transition to a low-carbon, climate-resilient economy as illustrated in the Figure below.

In 2025, the Bank issued a Basel III-compliant Tier II Green Bond, raising Rs. 15 Bn., and was oversubscribed on the opening day. The proceeds were fully deployed by December 31, 2025, to finance and refinance eligible green projects in line with the Bank’s Sustainable Bond Framework, as detailed in the table below.

Eligible green projects and utilisation Table 06

Category	Eligible Category (as per Prospectus)	Amount Utilised (Rs. Bn.) as of December 31, 2025	No. of Eligible Green Projects
Refinance	Financing the Solar Projects – Solar Energy Technologies for Buildings (Installation, Maintenance & Repair)	2.94	647
	Financing the Solar Projects – Solar Power (Photovoltaic Technology) Plant Developments (Electricity Generation)	3.38	6
	Financing for Green Buildings (Acquisition & Ownership of Real Estate with Green Certification)	0.06	2
	Financing for the Purchase & Usage of Passenger Vehicles with Low Carbon Emission	1.06	126
Finance	Financing the Solar Projects – Solar Energy Technologies for Buildings (Installation, Maintenance & Repair)	2.16	317
	Financing the Solar Projects – Solar Power (Photovoltaic Technology) Plant Developments (Electricity Generation)	3.55	9
	Financing for Green Buildings (Acquisition & Ownership of Real Estate with Green Certification)	0.05	1
	Financing for the Purchase & Usage of Passenger Vehicles with Low Carbon Emission	1.8	222
	Total	15.00	1,330

Green Bond Impact Report as of December 31, 2025

Following the utilisation of Rs. 15 Bn. in Green Bond proceeds across 1,330 eligible projects, the Bank achieved a total emission reduction of 134,128 tCO₂e during the year. This performance represents a significant improvement compared to the previous year, reflecting a 229% growth in emission reductions attributable to the green finance portfolio.

This substantial increase demonstrates the effectiveness of the Bank’s green financing strategy. It also highlights the positive environmental impact generated by expanding sustainable lending activities funded by Green Bond proceeds. The strengthened green asset base has materially enhanced the Bank’s contribution to climate mitigation efforts and reinforces its ongoing commitment to sustainable finance and low-carbon development.

Looking ahead, the Bank is promoting Blue Finance across Personal and Corporate Banking, with products supporting sustainable fisheries, eco-tourism, and water/waste management solutions.

The Figure 19 below outlines the Bank’s key green finance metrics, portfolio growth and its 2030 target.

Scaling Green Finance capability

In parallel with portfolio growth, the Bank has been strengthening its capability to scale sustainable finance in a structured and credible manner. During the year, the IFC supported the Bank in laying foundations for portfolio decarbonisation, strengthening internal readiness to expand sustainable finance into emerging areas such as blue finance and financing solutions for green SMEs.

This support has contributed to the development of internal frameworks, capability building, and pipeline readiness, enabling the Bank to broaden the scope of sustainable financing over time while maintaining alignment with credit risk, capital, and liquidity considerations.

Embedding ESG and climate into credit decisions

Responsible financing requires ESG and climate-related risks to be incorporated into credit decision-making in a consistent, risk-based manner. The Bank integrates environmental and social considerations into lending to strengthen credit outcomes and reduce tail risks that may not be captured through traditional financial analysis. This is implemented through a Group Environmental and Social Risk Management Policy and a comprehensive Environmental and Social Management System (ESMS), with ESG requirements embedded in credit processes from origination through monitoring.

Risk screening and due diligence

The Bank utilises formal frameworks to categorise environmental and social risks into three levels: Category A (High), Category B (Medium), and Category C (Low), using sector-specific guidance to directly influence underwriting and approval decisions.

Enhanced Due Diligence, stricter documentation, specific loan conditions, and ongoing monitoring are triggered based on two specific criteria:

• Risk-Based Trigger – For proposals involving sectors with inherently high E&S risk (Category A), enhanced due diligence is applied regardless of the facility amount and tenure.
• Threshold-Based Trigger – E&S due diligence is mandatory for all credit proposals that exceed predefined financial thresholds and tenure, ensuring coverage of the large corporate portfolio.

To ensure objectivity and consistency, all assessments with a High Risk (Category A) categorisation and due diligence requirement undergo independent review by the Integrated Risk Management Department.

This approach reduces the likelihood of credit impairments linked to regulatory non-compliance, project delays, community opposition, or environmental liabilities. It also reduces the risk of reputational shocks that can increase funding costs or constrain growth.

As illustrated in the Figure 21, ESG integration during 2025 moved beyond policy articulation to deeper operational embedding within core credit processes. The enhancements reflect a structured approach to risk identification, client engagement and governance oversight, strengthening the Bank’s ability to proactively manage E&S within its large corporate portfolio while safeguarding long-term asset quality and portfolio resilience.

Climate transition plan

As part of its responsible financing agenda, the Bank is in the process of developing a comprehensive Climate Transition Plan in partnership with IFC, aligned with national decarbonisation pathways. As the first Sri Lankan bank to join the PCAF, the Bank has commenced measuring its financed emissions and established a framework to manage and reduce emissions associated with lending and investment portfolios. For details on the Climate Transition Plan, including core focus areas, please refer to Section 1.2 – Strategy in the SLFRS Sustainability-related Financial Disclosures.

Lending to priority sectors

As illustrated in Figure 23, the Bank continued to prioritise lending to high-impact sectors that support inclusive economic growth, enterprise development, and national economic resilience, while maintaining prudent credit standards and risk discipline. SMEs, women-led enterprises, and underserved segments remained central to the Bank’s priority sector financing strategy, reflecting their importance in job creation, innovation, and broad-based economic participation.

Metrics and targets

To enable assessment of progress and discipline in responsible financing, the Bank monitors and reports the following key performance indicators, aligned to portfolio growth, underwriting controls, resilience and execution capacity:

Sustainable finance scaling and allocation discipline

• Sustainable/green bond proceeds allocation: percentage allocated and eligible categories financed, including split between financing and refinancing. (See Table 6).
• Green finance portfolio: portfolio size and growth, with sector segmentation where relevant (especially renewable energy). (See Figure 20).

ESG/E&S and climate risk integration in underwriting

• Total number of facility papers screened for E&S risk during the year 2025. (See Figure 22).
• Risk distribution: E&S risk category wise distribution of lending proposals screened in 2025 (low/medium/high) (See Figure 22).

Why financial inclusion matters

Financial inclusion determines who can participate in the formal economy and how effectively households and enterprises access financial services. When individuals and small businesses lack access to secure savings, affordable credit, payments, and risk protection, their ability to manage cash flow, invest, and grow is constrained. This often leads to reliance on informal or high-cost channels, reinforcing vulnerability and limiting economic mobility. At a system level, exclusion weakens economic efficiency by keeping activity outside formal financial channels, reducing transparency, limiting policy transmission, and slowing enterprise development.

For a systemically important bank such as ours, financial inclusion is integral to core banking. By ensuring access that is safe, affordable and usable, we strengthen household resilience, support productive enterprise, expand our customer base, and enhance financial system stability over time.

Our approach to financial inclusion

At Commercial Bank, our approach is grounded in the view that financial inclusion is a reflection of conduct. Inclusion improves when access, usability and adoption are embedded into products, channels, credit processes and service design rather than treated as add-ons.

In practice, this approach is delivered through three reinforcing priorities as illustrated in the Figure 24 below:

Key developments during 2025

During the year 2025, the Bank strengthened its financial inclusion agenda through a structured approach that integrated expanded access, priority segment focus and digital enablement within core banking operations as shown in the diagram below.

Expanding access

As illustrated in the Figure 26 below, the Bank’s multi-channel architecture integrates branch networks, ATMs, alternative service points and digital platforms to ensure inclusive and reliable access to financial services. By combining physical infrastructure with digital capability, the Bank addresses geographic distance, mobility constraints and documentation barriers that may otherwise limit participation.

Network of delivery points in Sri Lanka and Bangladesh

Last-mile access is strengthened through Agency Banking and other alternative service points, enabling core transactions such as deposits, withdrawals, bill payments and transfers beyond traditional branches. Field-based engagement models further support agriculture and microfinance customers, enhancing origination, monitoring and ongoing servicing in rural and livelihood-linked segments.

Extended service availability, including Saturday banking and MiniComs, improves convenience, while digital channels enable part-payments and routine transactions remotely. Fully digital onboarding reduces time and location constraints while maintaining regulatory safeguards. Internal tracking of digital usage supports data-driven calibration of the Bank’s channel mix.

Targeted eligibility refinements, including the reinstatement of moderate-income personal loan categories and adjusted pension-based lending criteria for retired armed forces personnel, further remove structural barriers to credit access.

Through this integrated approach, the Bank continues to refine its channel mix, balancing physical reach, alternative delivery models and seamless digital journeys to close remaining access gaps and advance financial inclusion.

Priority inclusion segments

Defining priority inclusion segments is a strategic choice as targeted inclusion broadens the customer base, deepens financial intermediation, and reduces informality. We focus on segments such as SMEs, agriculture and rural livelihoods, microenterprises, and women where structural barriers are material and where inclusion through core banking activity supports sustainable participation.

Small and Medium-Sized Enterprises (SMEs)

SMEs remain central to the Bank’s inclusive growth strategy, reflecting their vital role in employment generation, entrepreneurship and broad-based economic participation. In 2025, the Bank further strengthened its SME franchise through targeted innovation, structured access mechanisms and digital integration, scaling support while maintaining disciplined risk management and long-term sustainability, as outlined.

• AI-Powered credit underwriting – Transforming SME lending
  The Bank introduced Sri Lanka’s first AI-powered SME credit underwriting solution. The model strengthens credit assessment through data-driven analytics, enabling faster approvals, improved operational efficiency and enhanced portfolio risk management. By improving underwriting precision while accelerating turnaround times, the solution supports scalable SME growth within prudent risk parameters.
• Distributor financing under Supply Chain Finance (SCF)
  The Bank launched its first Distributor Financing solution, developed in consultation with the IFC, to address funding gaps within corporate supply and distribution networks. The structure enables SMEs to access competitively priced financing by leveraging the credit strength of anchor corporates. A secure, digitally enabled platform supports end-to-end transaction automation, real-time invoice processing and faster settlements. This reduces cash-conversion cycles, enhances transparency and auditability, and creates a more resilient and efficient supply chain ecosystem.
• Sustained market leadership in SME Lending
  In 2024, the Bank was the largest participating SME lender, accounting for 30.3% of total SME loans extended by 16 state and private sector banks (Source: Ministry of Finance data). As the country’s largest SME lender for five consecutive years, the segment remained a core inclusion priority in 2025, representing approximately 19.0% of total loans and advances.
• Expanding access through credit guarantees
  Through active participation in the National Credit Guarantee Institution Limited (NCGIL) scheme, the Bank enabled eligible MSMEs to obtain financing without traditional collateral requirements, while maintaining disciplined risk standards.
• Improving affordability and tenor
  To address affordability and repayment-tenor constraints, the Bank granted 360 refinance-backed facilities totalling Rs. 3.97 Bn. in 2025 under programmes including SMILE-III, E FRIENDS-II, SMELoC/SMELoC2, MANUSAVI, MSME Re-Energize and MSME NPL WC. These structured schemes widened access while preserving portfolio quality.
• Digital enablement and ecosystem integration
  Digital platforms such as Commercial Bank LEAP GlobalLinker further enhanced SME connectivity, expanded market access and strengthened ecosystem participation – complementing the Bank’s financing and supply chain initiatives.

Building on the Bank’s broader SME financial inclusion initiatives outlined above, the Figure 29 below illustrates how digital enablement through Commercial Bank LEAP GlobalLinker complements access, affordability, and value chain integration efforts.

The table below summarises the Bank’s structured approach to SME inclusion during 2025, highlighting key initiatives across credit innovation, supply chain integration, market leadership, access expansion, affordability support and digital enablement.

SME inclusion, innovation, and market integration – 2025 Table – 07

Strategic Area	Initiative	Key Highlights/Impact
Credit Innovation	AI-Powered SME Credit Underwriting (First in Sri Lanka – 2025)	Data-driven credit assessment; faster turnaround times; improved operational efficiency; strengthened portfolio risk management; scalable SME inclusion within prudent risk parameters
Supply Chain Finance	Distributor Financing (Developed with IFC Consultation)	Affordable financing for distributors within corporate networks; leverages anchor corporate credit strength; secure digital platform; real-time invoice processing; reduced cash-conversion cycles; enhanced transparency and auditability
Market Leadership	Largest SME Lender – Five Consecutive Years	30.3% of total SME loans extended by 16 state & private sector banks (Source: Ministry of Finance data); SMEs represented 19.0% of total loans and advances portfolio of the Bank in 2025
Access to Finance	NCGIL Credit Guarantee Scheme	Enabled collateral-free financing for eligible MSMEs while maintaining prudent risk standards
Affordability & Tenor	Refinance & Interest Subsidy Programmes	360 refinance-backed facilities granted in 2025 under SMILE-III, E FRIENDS-II, SMELoC/SMELoC2, MANUSAVI, MSME Re-Energize and MSME NPL WC
Digital Enablement	Commercial Bank LEAP GlobalLinker	Strengthened SME connectivity, expanded market access and enhanced ecosystem integration

SME trade fair (March 2025)

The Bank successfully hosted its Annual SME Trade Fair for the third consecutive year, providing a dynamic platform for SMEs to showcase and sell their products directly to customers. The three-day event featured over 200 stalls across 13 diverse sectors and attracted more than 14,000 visitors, generating over 8 million in transactions.

Beyond sales opportunities, the Trade Fair enabled SMEs to build business connections, strengthen brand visibility, and access financial, technical and advisory support from Government regulatory authorities and development agencies. Special awareness sessions were conducted to help entrepreneurs scale and strengthen their businesses, while a dedicated Banking Services Area offered card-based payment facilities, digital banking solutions and retail banking products to support seamless transactions and financial access.

Agriculture, microenterprises, and rural livelihoods

Agriculture, microfinance, and rural customers were explicitly prioritised within the Development Credit Department’s mandate, recognising persistent geographic, income volatility, and scale-related barriers to access. Inclusion for these segments was supported through a combination of AMFU field presence and Agency Banking, improving reach to customers distant from branch infrastructure and supporting continuity of service delivery.

The inclusive financing efforts were further strengthened by the microfinance product offerings under the Dirishakthi brand offering financial as well as nonfinancial services to the communities.

The Bank maintained dedicated microfinance and development-oriented lending portfolios, including Micro and Divisaru facilities, providing scale-based evidence of sustained engagement with low-income and rural customers. These portfolios support participation in the formal financial system through core credit intermediation rather than ad-hoc or charitable mechanisms.

Beyond access, inclusion is reflected in the Bank’s ability to sustain and scale development-oriented portfolios over time. In 2025, development lending (Industrial and Agriculture) expanded to Rs. 166.78 Bn., while inclusion-linked portfolios such as Micro Loans (Rs. 5.54 Bn.; see Table 08 for details) and Divisaru Micro Savings (Rs. 2.80 Bn.) continued to grow, providing balance-sheet evidence that underserved segment engagement is integrated into core intermediation rather than episodic initiatives.

Number and amount of loans outstanding that qualify for programmes designed to promote small business and community development

(Commercial Banks Sustainability Accounting Standard – FN-CB-240a.1 & FN-CB-240a.2)

Inclusion-linked micro-loans Table – 08

	Total		Non-accrual
As at December 31,	Number of loans	Balance outstanding (Rs. Mn.)	Number of loans	Balance outstanding (Rs. Mn.)
New Comprehensive Rural Credit Scheme	7,686	2,989	732	26
Dirishakthi New Loans	7,480	2,030	421	44
Dirishakthi Micro Housing Loan	298	114	1	0
Dirishakthi New (Special)	452	113	395	19
ADB Tea Loans (Below Rs. 1.0 Mn.)	244	85	5	2
Anagi Loans (Below Rs. 1.0 Mn.)	176	55	8	3
Dirishakthi NCGIL	71	47	1	1
Microfinance – Kapruka Ayojana	121	42	10	0
Other schemes	1,435	62	1,165	13
Total	17,963	5,536	2,738	108

Women empowerment

The Bank reinforced its commitment to women’s economic empowerment by promoting financial inclusion, expanding development programmes, and enhancing gender-responsive service delivery. The Women Banking agenda focused on empowering women customers and entrepreneurs, broadening access to financial and digital services, and fostering a supportive, inclusive workplace for female employees across the Bank.

Through comprehensive outreach and capacity-building initiatives, the Bank enabled women to strengthen their financial knowledge, develop business skills, build confidence, and engage more effectively in economic activities within their communities.

Financial literacy & business skills development

A series of financial literacy and financial management programmes were delivered for women entrepreneurs, supporting the adoption of improved financial practices and more informed business decision-making. In parallel, targeted skill development initiatives focusing on entrepreneurship, leadership, innovation and building sustainable business models were conducted to strengthen enterprise capability. Collectively, these programmes reached over 700 women entrepreneurs during the year, enhancing both financial confidence and long-term business resilience.

Women’s Day 2025 – Island-wide Celebration and Impact

To commemorate International Women’s Day 2025, the Bank conducted 14 simultaneous regional events across all districts, comprising six trade fairs and eight capacity-building programmes that benefited over 1,200 women entrepreneurs. These initiatives enhanced market access, product visibility and business knowledge at scale.

Under the ‘Anagi’ platform, more than 500 women participated in workshops and seminars, while 200 stalls showcased women-led products and services at trade fairs held at multiple locations. Training programmes covering financial literacy, business management and digital skills were conducted across several regions, reinforcing the Bank’s commitment to inclusive growth, with women representing approximately 50% of its SME customer base.

School outreach and youth empowerment

The Bank conducted leadership and entrepreneurship programmes in girls’ schools, encouraging young women to explore future opportunities, develop leadership qualities, and cultivate an entrepreneurial mindset from an early age. During the year, these initiatives reached over 850 school girls, fostering early confidence, aspiration and future economic participation.

Health & wellbeing initiatives

In recognition of the importance of women’s health, the Bank conducted breast cancer awareness sessions for women entrepreneurs, employees and community members. These programmes promoted early detection and facilitated access to expert medical guidance. During the year, the initiative recorded over 2,500 female participants, strengthening awareness and preventive health engagement across stakeholder groups.

Women in the remittance economy

Recognising women as key managers of remittance inflows, the Bank launched a Women’s Entrepreneurship Workshop to strengthen financial capability and enterprise readiness. Participants received financial literacy training, business modelling guidance and digital banking knowledge, with access to credit through the ‘Anagi’ Entrepreneurship Loan Scheme. Piloted at the Narammala Branch Training Centre, the programme engaged over 100 women, supporting their transition from remittance recipients to income-generating entrepreneurs and strengthening household resilience.

Dedicated Women’s Banking Centre

A key milestone was the launch of the Bank’s first dedicated Women’s Banking Centre in the Northern Region. The Centre provides tailored financial solutions and advisory support within a focused and enabling environment, designed specifically to cater to the unique needs of female customers. Managed by a dedicated team of female staff, the Centre named ‘Anagi Women’s Banking Centre’ was opened in Jaffna. It features special amenities including a lactation room, children’s play area, dedicated pawning unit, counselling unit and cafeteria, while offering the full range of financial products and services available at any Commercial Bank branch.

Through this initiative, the Bank reinforces its commitment to diversity, equity and inclusion, promoting gender equality and empowering women. The ‘Anagi Women’s Banking Centre’ aims to go beyond traditional banking by creating a safe, supportive and welcoming space that addresses the specific needs, preferences and challenges faced by women, enabling them to take greater control of their financial wellbeing.

Empowering the Global Workforce: Bridging the Gap to Financial Inclusion

In 2025, the Bank strengthened its partnership with the Sri Lanka Bureau of Foreign Employment (SLBFE) by integrating financial literacy modules into mandatory pre-departure training for migrant workers. The programme equipped participants with the knowledge and tools to manage overseas earnings responsibly and plan for long-term financial security.

By facilitating onsite account opening prior to departure, the Bank promoted an early habit of savings and provided access to formal remittance and foreign currency banking services. During the year, 95 training sessions were conducted, reaching 4,720 participants and supporting their transition from short-term income generation to long-term wealth creation.

Youth and early-stage customers

Younger and first-time customers were prioritised through digitally native account offerings, including Flash and Flash Teen accounts, lowering entry barriers to formal banking at early stages of financial participation. Access to unsecured credit for younger customers was also broadened through personal loan products designed to meet rental and housing-related needs, addressing common early-stage financial constraints within a structured credit framework. These offerings were complemented by targeted savings accounts, school and university outreach, career guidance, scholarships, and dynamic brand initiatives including collaborations with young sports icons and sponsorships of technology and sports events. The Bank also promotes entrepreneurship among school children connecting with their entrepreneur clubs and creating market access through the SME Trade Fair and Commercial Bank LEAP GlobalLinker.

Together, these efforts established a comprehensive ecosystem supporting financial inclusion, as shown in the Figure 30 below:

The Bank’s financial inclusion agenda is supported by a robust framework that integrates capability building, digital platforms, strategic partnerships, and strong internal systems, as illustrated in Figure 31 below. Together, these enablers expand access responsibly, strengthen customer confidence, and ensure sustainable and well-governed inclusive growth.

Managing financial inclusion delivery risks

Scaling inclusion-linked channels and partner ecosystems introduces execution risks that must be managed to protect customer trust and the Bank’s risk profile. Key areas include service quality and customer protection in agency banking and ecosystem arrangements (including fraud/cash controls and after-sales delivery risk), consistency of underwriting and monitoring as outreach expands, and the operational complexity of refinance scheme documentation and claims. The Bank addresses these through strengthened training and appraisal standards, tighter monitoring frequency and structured performance governance, and reinforced partner/agent governance and branch enablement to improve utilisation, compliance and service outcomes.

Metrics and targets

To enable a clearer assessment of progress, discipline and scalability, the Bank monitors following indicators over time.

Access and reach: Expand the Bank’s physical and digital presence to enhance financial inclusion and accessibility for underserved segments

Bank’s physical and digital presence Table – 09

Initiative	2025 achievements	2026 target
AMFU Units & branch coverage	Added new 32 AMFU units, totalling to 64 AMFU units, covering 93 branches	Expand to 100 AMFU units
Shakthi Agency Banking	4 agents onboarded across targeted districts	Expand to 100 agents
Pawning services expansion	7 new branch locations	Further expand access points and service hours
Digital onboarding	ComBank Digital surpassed 1.75 million users	Retail and Business products with Online onboarding

Priority segments (scale and quality): Focus the Bank’s lending portfolio on SMEs, microenterprises, and women-led initiatives to drive inclusive growth

Bank’s Lending portfolio on SMEs Table – 10

Segment	2025 performance	2026 target
SME loans and advances	19% of total Loans and advances; portfolio growth: 23.6%	Maintain sustainable growth and quality, scaling digital and AI driven SME customer journey and experience
National Credit Guarantee Insurance Limited (NCGIL) backed lending to MSMEs	353 facilities; Loan value: Rs. 1.465 Bn.; Women-led: 46 loans, Rs. 167 Mn.	Reach 1,000 beneficiaries nationally; continue leadership in MSME financing
Micro/Divisaru Portfolio	Portfolio: Rs. 5.54 Bn., Divisaru Savings: Rs. 2.80 Bn.	Sustain portfolio quality and expand scale

Adoption and capability: Implement financial and digital literacy initiatives alongside platform-based adoption programs to drive meaningful usage

Financial and digital literacy initiatives Table – 11

Initiative	2025 achievements	2026 target
Financial/Digital literacy	Conducted financial literacy programs for over 630 MSMEs Empowered over 485 Women through Training & Outreach	Continue building financial and digital literacy among customers and staff to ensure effective utilisation of services
Commercial Bank LEAP GlobalLinker Platform	749 new members onboarded; 400+ quality e-stores developed; 50 international-level e-stores; integrated payment aggregator (PayMedia) and QR payment solutions	Increase platform adoption as the ecosystem for authentic Sri Lankan SMEs, regional spread, and transactional activity

Why sustainable products and services matters

Sustainable products and services translate the Bank’s sustainability priorities into actionable financing and funding decisions, shaping real-economy impact while strengthening the Bank’s portfolio and balance sheet. By embedding clear eligibility, structuring, and governance criteria, these offerings drive measurable, bankable outcomes in environmental transition, resilience, and inclusive growth. Sustainable products and services matter because they define how sustainability is translated into financing decisions, shaping both real-economy outcomes and the Bank’s balance sheet.

For the Bank, sustainable products and services are therefore the practical mechanism that connects sustainability priorities to measurable outcomes, supporting transition and resilience priorities while strengthening portfolio resilience. This sub-pillar complements Responsible Financing and Financial Inclusion: while Responsible Financing focuses on risk discipline and portfolio stewardship, and Financial Inclusion expands access and usage, Sustainable Products and Services focuses on product design, eligibility discipline and credible classification.

Our approach to sustainable products and services

The Bank’s approach is grounded in designing sustainability-aligned finance as an extension of mainstream banking, subject to the same underwriting, pricing, portfolio oversight and governance disciplines as conventional products. Our approach is anchored in a simple logic: clear product architecture and eligibility discipline enable credible sustainable finance, and credible sustainable finance strengthens portfolio resilience.

This approach is delivered through three mutually reinforcing priorities:

The Bank’s approach is aligned to relevant global and local frameworks, including the UN SDGs, the Central Bank of Sri Lanka’s Sustainable Finance Roadmap and related guidance, and the Sri Lanka Banks’ Association Sustainable Banking Principles.

The Bank’s sustainable products, services, and solutions

From pioneering green financing models to digitalising customer journeys and expanding access to finance for SMEs, women entrepreneurs and underserved communities, the Bank translates its sustainability priorities into practical financing and funding solutions.

The Figure 32 shows how climate-aligned lending, digital platforms, inclusive banking, trade support and risk management work together to generate real-economy impact. Collectively, these offerings strengthen portfolio quality and balance sheet resilience while delivering measurable outcomes in environmental transition, economic resilience and inclusive growth.

Green Finance products & climate solutions

Renewable energy financing remained the anchor of the green portfolio, supporting utility-scale solar, wind, hydro and biomass projects, as well as rooftop solar for households and businesses, including related grid infrastructure. The Bank also expanded lending for environmentally friendly transportation, green buildings and certified Green Home Loans, energy-efficient renovations, and climate-smart agriculture (see the Figure 20 – Composition of the green finance portfolio as at December 31, 2025).

Through targeted products and propositions outlined in the Figure 33 below, the Bank continues to advance renewable energy adoption, low-carbon solutions and climate-aligned lending in support of national decarbonisation goals.

Digital banking products & sustainable service platforms

Digitalisation remains a core enabler of sustainability, enhancing customer experience through secure and convenient access to financial services. By expanding digital channels, the Bank broadens financial inclusion while strengthening transaction transparency, operational accuracy and service reliability. Key initiatives, spanning customer-facing digital platforms and internal process automation are summarised in Figure 34 below:

ComBank Digital – Performance and Sustainability Impact (2025)

As at 2025, ComBank Digital continues to demonstrate strong growth and adoption, achieving 56% digital penetration with a user base of 1.8 million customers. During the year, the platform facilitated 74 million transactions valued at Rs. 7.5 Tn., supported an investment portfolio of Rs. 470 Bn., generated Rs. 2 Bn. in revenue, and enabled 55 million monthly customer interactions.

This digital expansion has also strengthened the Bank’s sustainability agenda by transforming traditionally manual branch processes into seamless digital services. Beyond operational efficiency, these advancements enhance customer convenience, accessibility and financial inclusion, enabling clients to transact anytime, anywhere. The impact of digitalisation across key services is summarised below:

Technology Towards Sustainability – Digitalisation Impact Table – 12

Service	Digital adoption %	Paper savings
Investments	66	684,000+
Standing Orders	96	2,740,000+
Loans Against FD	27	24,000+
Secondary CASA Opening	16	62,000+
eSlips	13	1,100,000+

Collectively, these initiatives illustrate how technology enables the Bank to deliver scalable growth while promoting inclusive access and more sustainable operations.

Inclusive banking products & access solutions

The Bank strengthened inclusive growth through targeted financing and digital ecosystems for SMEs, women entrepreneurs, and underserved communities, as outlined under the Financial Inclusion pillar. These sustainable offerings are summarised in Figure 35 below:

Export & Global Professional Banking Solutions

To support foreign currency inflows and strengthen economic resilience, the Bank provides a range of specialised services for Sri Lankan professionals overseas, corporate clients, and exporters, as summarised in Figure 36 below:

Risk management, treasury, and FX solutions

The Bank supported corporate and SME clients with hedging solutions to manage risks amidst geopolitical and macroeconomic uncertainty, while actively participating in debt capital markets to mobilise sustainable finance. Key initiatives in risk management, FX advisory, and sustainable capital market support are summarised in Figure 37 below:

Targets and metrics

Green finance target and progress

As disclosed under the Responsible Finance Pillar, the Bank has established a target to expand its green finance portfolio to Rs. 100 Bn. by 2030, in alignment with the CBSL Green Finance Taxonomy and applicable regulatory directions.

Progress against this commitment is monitored through established governance structures, including the Sustainability Working Committee and the Executive Sustainability Committee, with oversight provided by the Board Sustainability Committee (BSC). Sustainable finance performance is reported quarterly to the regulator and regularly communicated to the Board, ensuring accountability and transparency in delivery.

As at December 31, 2025, the Bank’s green finance portfolio stood at Rs. 71.198 Bn., reflecting steady growth momentum and positioning the Bank well on track to achieve its 2030 target (see Figure 19 on Sustainable banking).