Agricultural & Rural Finance of Bank of Ceylon

1. Agricultural & Rural Finance of Bank of Ceylon D M Gunasekara CEO / General Manager Bank of Ceylon

2. Contents of Presentation…. • Country Profile – Sri Lanka • Economy of Sri Lanka • About Bank of Ceylon • Business highlights • Microfinance activities • Challenges & solutions • Success stories • Q & A

3. Country ProfileSri Lanka

4. Democratic Socialist Republic of Sri Lanka A pearl in the Indian Ocean….

6. Sri Lanka

7. National Flag

8. Introduction • Location Situated in the Indian Ocean Just off the Southern Coast of India • Population20,277,597 • Business Capital Colombo • Legislative Capital Sri JayawardenapuraKotte • CountryArea 25,332 square miles (65,610 sq km) • Coastline 833 miles (1,340 km) • Highest Point Mount Pidurutalagala (2,524 m)

9. History of Sri Lanka Ceylon  Sri Lanka 1972 1948 4th February 1948 Sri Lanka achieved independence British took over Sri Lanka 1796 1658 Dutch took over Sri Lanka. 1505 Portuguese traders landed. Ruined by Kings ….

10. Geography and Climate of Sri Lanka • Mainly consists of flat lands. • Central part of the country features with mountains and step sided river canyons. • Tropical climate. • Most of the rain in the Southwest falls from April to June and for the Northeast October to November. • Sri Lanka's average yearly temperature is around 86°F to 91°F (28°C to 31°C).

11. Economy of Sri Lanka The major industries in Sri Lanka • Processing of Rubber, Tea, Coconut, Tobacco and Other Agricultural commodities. • Apparel • Tourism • Cement Sri Lanka's main exports • Apparel • Tea • Spices • Gems & Jewellery • Coconut products • Rubber Products • Fisheries products

12. Economy of Sri Lanka • GDP (at Mkt Price) US $ 59 Bn • Economic Growth 8.3 % • Annual average inflation 6 % • Per Capita GDP US $ 2,836 • Unemployment rate 4.2% • Sectoral Composition of GDP • Agriculture 11.2 % • Industry 29.3 % • Services 59.5 %

13. Some Indices… • Life Expectancy 74.9 Years • Literacy Rate 91.9 %

14. National Beauty & Heritage

15. Kingdoms of Anuradhapura & Polonnaruwa Ruwanweli Maha Seya Polonnaruwa Gal Viharaya (Stone Temple)

16. SRI DALADA MALIGAWA - KANDY

17. SIGIRIYA (LION'S ROCK)

18. SHRINE MADU

19. NALLUR KOVIL

20. KATARAGAMA DEVALAYA

21. WATERFALLS IN SRI LANKA Baker's Fall Dunhinda

22. TEA PLANTATIONS

23. COCONUT PLANTATIONS RUBBER PLANTATIONS

24. NATIONAL SANCTUARIES IN SRI LANKA

25. SRILANKAN FOOD

26. SRILANKAN CULTURAL EVENTS

27. SRILANKAN TROPICAL FRUITS

28. Bank of Ceylon Bankers to the Nation….

29. Bank of Ceylon • Established in August 1939. • The premier state bank in the country • The first corporate entity in Sri Lanka to achieve a Rs. one trillion balance sheet. • “One Ten Twelve”

30. Corporate Philosophy of Bank of Ceylon • Vision Bankers to the nation. • Mission Customers Foster most rewarding relationship with trust and reliability for our customers, exceeding their expectations Staff We offer our staff, recognition and rewards to be the best team of achievers in service excellence Owners As per expectations of our owners, be a catalyst in national development, with profitability Society Extending banking service to larger society as a beneficial beacon in the country.

31. Business Highlights • Largest Commercial Bank in Sri Lanka • Expanded the Bank’s operations to 1, 029 service points via Island-wide network • 840 foreign correspondents • ‘AA+(lka) - National Long-Term Rating stable outlook by Fitch Ratings Lanka Ltd • Over 10 Mn Customer Account Base

32. Island wide Service points

35. Our strategies towards Microfinance • The basic criterion to the microfinance • Socio economic background • Income level • Solidarity group mobilization and poverty alleviation • Micro Credit Programmes • Encourage self employment • Reaching out at grass root level (Bare-foot Banking)

36. BOC – “A friend in need” Wealthy Commercial Loans Prime Customers Middle income Corporate Customers Vulnerable non- poor Retail Customers Micro Credit / Finance Economically poor Bankable Customers Poorest of the poor Un Bankable Customers

37. Catering the target segment… NCRCS PAMP Fisheries Loan Schemes Self Employment Development Credit Schemes Plantation Sector Credit Schemes

38. New Comprehensive Rural Credit Scheme (NCRCS) Credit facilities entertained for the following crops • Vegetables: beans, beet root, bitter guard, brinjal, cabbage, capsicum, carrot, knoh khol, ladies’ fingers, leeks, luffa, pumpkin, radish, snake guard, tomato etc. • Root & tuber: Potato, sweet potato, kiri ala, manioc • Oil seeds: Ground seeds, gingelly, sun flower • Pulses: • Cowpea, green gram, • blackgram, soya, maize, • kurakkan

39. New Comprehensive Rural Credit Scheme (NCRCS)

40. Other supportive schemes • “Govi Shakthi” – Infrastructure support to farmers • Self Employment Promotion Initiative Programme (SEPI) • Poverty Alleviation Micro Finance Programme • Agro Livestock Development Loan scheme • Fisheries Sector Loan scheme • “Shookshma” – Encourage Self Employment & SMIs

41. Plantation sector Development Credit Schemes

42. Plantation sector Development Credit Schemes

43. Self Employment Development Credit Schemes

46. Success Stories…. • Lakbima Rice Mills • Ms. RenukaDamayanthi • Mr. Kumaratheepan (Photo Studio) • Lending to ex-combatants • Saloon

47. Educating customer segments The way forward…. • Financial Literacy programmes • Awareness programmes on Poverty Alleviation • Solidarity Group mobilization Programmes • Entrepreneur Development Programmes • Awareness Programme on banking literacy to the Ex-LTTE combatants

48. Entertain new clients The way forward…. • Focusing less developed rural pockets • Strengthening the rural service points • Further strengthening SHGs

49. Being the “Bankers to the Nation”…. BOC looks forward towards the Development of the country…….