For the eighth consecutive year, Citizens Development Business Finance PLC (CDB) was crowned the winner in the Non-Banking Financial Services Sector at the prestigious National Business Excellence Awards 2025. CDB also won the Merit award for Excellence in Performance Management. The prestigious win and the merit commendation, both exemplify CDB’s leadership as a stable financial institution constantly raising the bar in business excellence, underlined with an unparalleled service culture.

Deputy CEO Damith Tennakoon commended the CDB team for continually focusing on excellence, driving financial inclusion while advancing the green economy to empower stakeholder aspirations. “The team has been at the forefront of driving our ethos and we truly appreciate the strength, support and continuous fillip each of our team, business partners and customers give us in taking each step of our journey.”

He added that, “Being a tech and sustainability-driven innovation leading financial services provider, CDB is not just committed but very conscious of its strength in business excellence in multiple areas that enable us to wear that laurel of not just winning for excellence in business, but also for our contribution to the nation’s economic progress.”

Given that the annual NBEA Awards organised by the National Chamber of Commerce of Sri Lanka, benchmarks business excellence in companies, CDB’s proven business excellence, sustainable business model and business practices despite navigating some of the most challenging time in the history of the country enables it to wear the winning crown with clarity and confidence.

Evaluated by an eminent panel of judges, applications from numerous industries and business categories were evaluated in seven criteria. The applicants were adjudged on business excellence in Leadership, Corporate Governance & Strategy, Capacity Building, Performance Management, Local and Global market reach, Environmental Social Governance and Business & Financial results.

“We are very strong and serious about our business excellence in each of the seven criteria,” says Tennakoon. “We believe that sound and effective corporate practices are fundamental to the smooth, effective and transparent operations of a company and its ability to attract investment, protect the rights of shareholders and other stakeholders and enhance shareholder value.”

Award-winning innovation reshapes credit evaluation, deepens financial inclusion and reinforces CDB’s tech-first strategy

Colombo, Sri Lanka, 04 July 2025: Citizens Development Business Finance PLC (CDB) continues to earn national recognition for its trailblazing AI-Powered Credit Decision Making System, winning Silver in the Digital Transformation Project of the Year category at the CIMA - JXG Pinnacle Awards 2025. Marking the second major accolade for the project given the award won last year at the National ICT Awards NBQSA 2024, this Silver underscores the consistent excellence and impact of CDB’s digital innovation journey.

The award-winning system, developed entirely in-house, draws on CRIB data through direct API integration, offering real-time access to critical credit information. By harnessing advanced AI algorithms, it evaluates a broad spectrum of data to generate highly accurate credit assessments. This is further reinforced with an AI-powered vehicle valuation module, which determines the collateral value of vehicles – a key asset in vehicle-based credit decisions. The result is a credit decision-making model that is informed, swift, reliable and rooted in robust asset understanding.

“This AI model is an essential pillar of our future-forward credit assessment strategy,” says Director – Business Operations Dave De Silva. “With AI evolving rapidly and competition intensifying across financial services, our aim is to deliver unmatched service through speed and precision in credit decision-making – setting new standards for customer experiences. Importantly, the system has been instrumental in the successful implementation of risk-based pricing, enabling data-driven differentiation of customer risk profiles – ensuring credit is priced accurately and fairly.”

General Manager – Credit Sudath Fernando compares tangible advantages over traditional manual approval methods. “We have seen improvements in credit quality, reduced default risk and expanded business capacity. With branch staff receiving credit decisions and recommended pricing on their mobile phones, they can now approve credit facilities virtually from wherever they are, under central oversight. This empowers our teams to make sound and consistent decisions, significantly reduces human bias, and enhances compliance with regulatory standards.”

Beyond operational efficiency and credit risk management, this transformation drives a vital role in financial inclusion. By streamlining approvals and making credit more accessible, particularly to underserved segments with limited formal financial histories, the system ensures wider participation in the financial ecosystem. The intelligent automation allows for a fairer, data-driven evaluation of creditworthiness, enabling more individuals and entrepreneurs to access timely financing.

CDB’s digital journey began with its Robotic Process Automation (RPA) programme in 2019, incorporating OCR, ICR, BOTs, and API-based integrations. These innovations laid the foundation for deeper technology-led disruptions, transforming CDB’s operating model into one that emphasises virtual operations, remote collaboration and enhanced agility. As a result, CDB has not only optimised internal processes and reduced costs but also established a future-ready, resilient infrastructure which redefines how financial services are delivered

Climate Transition Plan benefits from IFC’s technical assistance

Conclusion of Phase I marks significant achievement in CDB’s journey towards setting the foundations for net zero

Initiative translates CDB’s net zero journey to a science-based approach

Colombo, Sri Lanka, 18 July 2025: Achieving a major milestone in its goal towards achieving net zero, Citizens Development Business Finance PLC (CDB) of Sri Lanka concluded Phase I of its Climate Transition Plan. With technical assistance received from the International Finance Corporation (IFC) and support from the European Union under their ‘Accelerating Climate Smart and Inclusive Infrastructure in South Asia (ACSIIS)' program, this foundational phase of the Climate Transition Plan is a robust framework that quantifies and manages operational and portfolio emissions.

Deputy CEO of CDB Damith Tennakoon recalls that in April 2024, CDB inked a technical assistance agreement with the International Finance Corporation (IFC) to enhance the Company’s plans for sustainable growth that benefits everyone. “The collaboration planned in three phases, supports us in conducting an emissions baseline analysis towards a net zero strategy, expand our product portfolio to finance sustainable solutions to extreme weather events, and develop a carbon credit aggregation business model aligned with climate commitments.”

He explains that CDB now has a clear actionable framework to manage key levers, including the green asset ratio needed to reduce the GHG intensity, even as CDB’s portfolio grows. “We sincerely appreciate the IFC team for helping us in this journey and taking us forward with greater clarity and confidence in our net zero journey. With the successful conclusion of Phase I, the groundwork has been laid for the next stage of our transformative journey, reinforcing our commitment to sustainability, innovation and national climate objectives.”

This initiative is a key component of CDB’s Sustainability Agenda under the Net Zero pillar, reinforcing its commitment to reducing its carbon footprint and achieving net zero emissions. In alignment with Sri Lanka’s national climate goals, CDB is working towards eliminating emissions across business operations. The comprehensive Climate Transition Plan provides a strategic roadmap grounded in country-driven priorities in Sri Lanka as well as global standards, ensuring that sustainability efforts are both measurable and impactful.

Phase I was supported through a series of in-depth virtual and in-person workshops conducted by IFC, significantly strengthening CDB’s internal technical capabilities. This phase, which encompasses a carbon baseline analysis and the development of a net zero strategy, saw the methodology and the data captured reviewed to estimate the direct and indirect emissions by assets.

With feedback and guidance to develop options for emission reduction and prioritize actions, IFC assisted CDB in analyzing Scope 3 financed emissions. This included devising suitable methodology aligned with international standards, identifying key drivers in CDB’s financed Scope 3 emissions, top carbon intensive segments and determining carbon intensity in CDB’s loan portfolio. In addition, IFC also supported CDB to project future estimated financed Scope 3 emissions based on the growth trajectories of CDB’s portfolio and suggested suitable transition strategies.

CDB now moves into Phases 2 and 3, which involve the scaling of sustainable finance products as well as the design and implementation of a carbon credit aggregation business model.

• Profit after tax up 59% at Rs. 4Bn
• Revenue surpasses Rs. 25Bn
• Contribution to state coffers at Rs. 3.9Bn with profit before taxes at Rs. 7.9Bn
• Total assets at Rs. 156Bn up 22% with loan book at Rs. 110Bn up 29%
• Sustainability and Tech-driven Business Strategy

Citizens Development Business Finance PLC (CDB) has announced a historic performance for FY 2024/25, delivering record-breaking results and reinforcing its strategic ascendancy as a key contributor to Sri Lanka’s economic revival and inclusive development. As the nation emerges from crisis into resurgence, CDB has demonstrated not only resilience, but leadership, translating macro-recovery into transformative, real-economy impact.

With Profit After Tax surging to Rs. 4Bn (up 59%) and Profit Before Taxes at Rs. 7.9Bn (up 72%), CDB’s performance signals strategic precision in execution and market foresight. Total assets surged past the Rs. 150Bn mark to Rs. 156.9Bn, while net interest income grew 25% to Rs. 11.4Bn. This remarkable performance enabled the Board to declare a total cash dividend of Rs. 15 per share (including an interim dividend of Rs. 5 per share), reinforcing a track record of superior shareholder value creation.

Amid Sri Lanka’s 5% GDP growth and sweeping macro-stabilization, CDB leveraged emerging opportunities with remarkable agility. Its lending portfolio expanded by 29% yearon-year to Rs. 110.9Bn, with a 62% growth in approvals and disbursements underscoring its role as a key credit mobilizer to Micro, Small and Medium Enterprises (MSMEs). CDB accounted for a significant 8% share of finance company lending to the private sector in 2024 affirming its role as a financial catalyst in grassroots economic recovery.

Crucially, this growth was underpinned by a disciplined and future-ready asset quality strategy. Through bold structural reforms such as AI-powered credit automation, digital postdisbursement monitoring, and advanced risk segmentation CDB redefined industry benchmarks. The 90-day past due (90DPD) ratio was reduced to 6.32% (gross) and 3.10% (net).

CDB’s strategic capital strength remains formidable: Tier I and Tier II capital ratios at 14.47% and 18.09% respectively, well above regulatory thresholds, a robust ROE of 18.15%, and liquidity maintained at 19.52%. The company’s deepened funding mix, supported by an 19% rise in deposits and reinforced by strong institutional partnerships both local and foreign, positions it to confidently scale its asset base in a competitive financial landscape.

CDB continued its growing support to the National economy and communities through its CSR projects, environment and the government coffers where this year’s contribution by way of direct taxes was Rs. 3.9Bn and including other taxes collected Rs. 5.1Bn.

Beyond financial metrics, CDB’s strategic blueprint is anchored in its sustainability and digital transformation pillars that define the next era of value creation. Under its “Net Zero” agenda, it advanced its partnership with the International Finance Corporation (IFC), completing phase one of its climate transition roadmap, targeting net-zero operations by 2030. Concurrently, CDB led pioneering biodiversity and clean energy initiatives, while aligning with global best practices and the Sustainable Finance Roadmap 2.0 issued by the Central Bank. The Wings Ecosystem, a flagship of CDB’s sustainability agenda, champions women’s empowerment by delivering impactful financial and non-financial support driving bold strides in inclusion, opportunity, and transformative growth.

Technological innovation remains at the heart of CDB’s operational evolution. The company’s flagship “Self” platform which is a hybrid of digital banking and wallet offers an unmatched client experience, while AI-driven credit approvals and risk-based pricing have created a responsive, data-intelligent lending ecosystem. These platforms are not only enhancing operational velocity but are also building the foundation for CDB’s aspiration to achieve a Rs. 250Bn asset base by FY 2026/27.

As CDB steps proudly into its 30th anniversary year, it reflects on a legacy of transformation led by “extraordinary results through ordinary people”. From MSMEs to women empowerment, digital inclusion to environmental stewardship, CDB remains unwavering in its mission: to create deep, enduring value for its stakeholders while contributing meaningfully to the country’s economic and social fabric.